SECTIONS 13940-13944

13940.  Any state agency or employee required to collect any statetaxes, licenses, fees, or money owing to the state for any reasonthat is due and payable may be discharged by the board fromaccountability for the collection of the taxes, licenses, fees, ormoney if the debt is uncollectible or the amount of the debt does notjustify the cost of its collection.13941.  The application for a discharge under this chapter shall befiled 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 theController determines that the circumstances do not warrant thefurnishing of detailed information.13942.  The Controller shall audit the applications and recommend tothe board an order discharging the applicant from furtheraccountability for collection and authorizing the applicant to closeits 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 smallclaims court, the Attorney General has advised, in writing, thatcollection is not justified by the cost or is improbable for anyreason.13943.  The board may delegate to the Controller, under terms andconditions that are acceptable to the board, the authority todischarge from accountability a state agency for accounts that do notexceed the amount specified in subdivision (e) of Section 13942 andthereby authorize the closing of the agency's books in regard to thatitem.13943.1.  (a) Except as provided in subdivision (b), a dischargegranted pursuant to this chapter to a state agency or employee doesnot release any person from the payment of any tax, license, fee, orother money that is due and owing to the state. (b) A discharge granted pursuant to this chapter to the FranchiseTax Board shall release a person from a liability for the payment ofany tax, fee, or other liability deemed uncollectible that is due andowing to the state and extinguish that liability, if at least one ofthe 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 yearsand there is no active probate with respect to that person. (3) The Franchise Tax Board has determined that the liable personhas 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 notrequired to collect taxes, licenses, fees, or money owing to thestate for any reason if the amount to be collected is five hundreddollars ($500) or less. A state agency that seeks this authorizationshall file an application with the board accompanied by a statementof circumstances. Nothing contained in this section shall beconstrued as releasing any person from the payment of any money duethe state.13943.3.  Notwithstanding any other provision of this chapter, theboard may authorize the Controller to discharge the Department ofWater Resources from accountability for collection of the loan issuedto the Arrowhead Manor Water Company in 1980 under the CaliforniaSafe Drinking Water Bond Law of 1976, but only if San BernardinoCounty or its county service area acquires the water system financedby the loan issued to the Arrowhead Manor Water Company and pays theamount of nine hundred ten thousand five hundred twenty dollars($910,520) in complete satisfaction of that loan, on or beforeJanuary 30, 2009.13944.  (a) The board may investigate, inquire, and, if necessary,conduct hearings concerning property in the possession of theTreasurer which has escheated to the state from the estates ofdeceased persons pursuant to a judgment of escheat or pursuant to adistribution to the state under Section 11900 of the Probate Code. (b) After investigation, inquiry, and hearing, the board mayrelieve the Treasurer from any liability arising from the possessionof, and direct the Controller to sell, or authorize the Treasurer todestroy or otherwise dispose of, any such property as it deemsproper.