13940-13944

GOVERNMENT CODE
SECTION 13940-13944




13940.  Any state agency or employee required to collect any state
taxes, licenses, fees, or money owing to the state for any reason
that is due and payable may be discharged by the board from
accountability for the collection of the taxes, licenses, fees, or
money if the debt is uncollectible or the amount of the debt does not
justify the cost of its collection.



13941.  The application for a discharge under this chapter shall be
filed with the Controller and include the following:
   (a) A statement of the nature and amount of the tax, license, fee,
or other money due.
   (b) The names of the persons liable.
   (c) The estimated cost of collection.
   (d) All other facts warranting the discharge, unless the
Controller determines that the circumstances do not warrant the
furnishing of detailed information.



13942.  The Controller shall audit the applications and recommend to
the board an order discharging the applicant from further
accountability for collection and authorizing the applicant to close
its book on that item, if the Controller determines the following:
   (a) The matters contained in the application are correct.
   (b) No credit exists against which the debt can be offset.
   (c) Collection is improbable for any reason.
   (d) The cost of recovery does not justify the collection.
   (e) For items that exceed the monetary jurisdiction of the small
claims court, the Attorney General has advised, in writing, that
collection is not justified by the cost or is improbable for any
reason.


13943.  The board may delegate to the Controller, under terms and
conditions that are acceptable to the board, the authority to
discharge from accountability a state agency for accounts that do not
exceed the amount specified in subdivision (e) of Section 13942 and
thereby authorize the closing of the agency's books in regard to that
item.



13943.1.  (a) Except as provided in subdivision (b), a discharge
granted pursuant to this chapter to a state agency or employee does
not release any person from the payment of any tax, license, fee, or
other money that is due and owing to the state.
   (b) A discharge granted pursuant to this chapter to the Franchise
Tax Board shall release a person from a liability for the payment of
any tax, fee, or other liability deemed uncollectible that is due and
owing to the state and extinguish that liability, if at least one of
the following conditions is met:
   (1) The liability is for an amount less than five hundred dollars
($500).
   (2) The liable person has been deceased for more than four years
and there is no active probate with respect to that person.
   (3) The Franchise Tax Board has determined that the liable person
has a permanent financial hardship.
   (4) The liability has been unpaid for more than 30 years.



13943.2.  Upon authorization of the board, a state agency is not
required to collect taxes, licenses, fees, or money owing to the
state for any reason if the amount to be collected is five hundred
dollars ($500) or less. A state agency that seeks this authorization
shall file an application with the board accompanied by a statement
of circumstances. Nothing contained in this section shall be
construed as releasing any person from the payment of any money due
the state.


13943.3.  Notwithstanding any other provision of this chapter, the
board may authorize the Controller to discharge the Department of
Water Resources from accountability for collection of the loan issued
to the Arrowhead Manor Water Company in 1980 under the California
Safe Drinking Water Bond Law of 1976, but only if San Bernardino
County or its county service area acquires the water system financed
by the loan issued to the Arrowhead Manor Water Company and pays the
amount of nine hundred ten thousand five hundred twenty dollars
($910,520) in complete satisfaction of that loan, on or before
January 30, 2009.


13944.  (a) The board may investigate, inquire, and, if necessary,
conduct hearings concerning property in the possession of the
Treasurer which has escheated to the state from the estates of
deceased persons pursuant to a judgment of escheat or pursuant to a
distribution to the state under Section 11900 of the Probate Code.
   (b) After investigation, inquiry, and hearing, the board may
relieve the Treasurer from any liability arising from the possession
of, and direct the Controller to sell, or authorize the Treasurer to
destroy or otherwise dispose of, any such property as it deems
proper.