BILL NUMBER: SB 1086	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 7, 2010

INTRODUCED BY   Senator Florez

                        FEBRUARY 17, 2010

   An act to add Section 19567 to the Revenue and Taxation Code,
relating to the Franchise Tax Board.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1086, as amended, Florez. Franchise Tax Board: tax expenditure
reporting.
   Existing law authorizes the Franchise Tax Board, as part of its
administrative duties with respect to the collection of taxes, to
furnish specified taxpayer information. Existing law generally
provides that all taxpayer information obtained by the board is to
remain confidential. Existing law provides exceptions to this general
requirement.
   This bill would, notwithstanding existing law, require the
Franchise Tax Board to annually compile  specified 
information relating to a  taxpayer   business
entity, as defined,  receiving credits of $1,000  or more
  ,  allowed from corporate tax expenditures
 , as provided  . The bill would require the board to
include the information  in the California Income Tax
Expenditure Report and   on  the state transparency
Internet Web site.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 19567 is added to the Revenue and Taxation
Code, to read:
   19567.  (a) For purposes of this section, "corporate tax
expenditure" means any exemption, credit, or deduction allowed under
Part 11 (commencing with Section 23001) or otherwise available to a
 corporation.   business entity. For purposes of
this section, "business entity" means a corporation, limited
liability company, partnership, association, joint venture, or
public-private partnership. 
   (b) Notwithstanding any provision of law, the Franchise Tax Board
shall annually compile all of the following information, commencing
with information based on the 2010 taxable year  , which
shall be included in the Department of Finance California Income Tax
Expenditure Report  :
   (1) The name, mailing address, and California corporation number
 of any taxpayer   when applicable of any
business entity  receiving credits of one thousand dollars
($1,000)  or more  allowed from corporate tax expenditures.
   (2) The amount claimed by each  taxpayer  
business entity  for the corporate tax expenditure. 
   (3) No individual or joint family taxpayer information shall be
disclosed. For passthrough entities such as "S" corporations and
limited liability companies owned by individuals, the information
shall be reported at the level of the passthrough entity. If the
passthrough entity is owned by a business entity or multiple business
entities, then the information shall be reported at the level of
that business entity or those business entities. 
   (c) The information collected by the Franchise Tax Board pursuant
to subdivision (b) shall be included in  a timely manner on 
the state Reporting Transparency in Government Internet Web site.
   (1) The information shall be  searchable by corporation
  compiled on a credit-by-credit basis and searchable by
business entity  name, corporation number  when available
 , expenditure type, and key word.
   (2) Each report on the state Reporting Transparency in Government
Internet Web site shall include all of the following information:
   (A) The  corporation's   business  
entity's  name.
   (B) The California corporation number  , when applicable 
.
   (C) The  expenditure granted   name of the
tax credit claimed  . 
   (D) The amount of the tax credit claimed.  
   (D) 
    (E)  A description of the initial justification for the
expenditure.
   (3) All data shall be available for download by the public  on
the state Reporting Transparency in Government Internet Web site
 in Excel or comparable  spreadsheet  format.