12631. (a) Any insurer or Medi-Cal managed care plan that fails to
pay any tax, except a tax determined as a deficiency assessment by
the board under Article 3 (commencing with Section 12421) of Chapter
4, within the time required, shall pay a penalty of 10 percent of the
amount of the tax in addition to the tax, plus interest at the
modified adjusted rate per month, or fraction thereof, established
pursuant to Section 6591.5, from the due date of the tax until the
date of payment.
(b) This section shall become inoperative on July 1, 2011, and, as
of January 1, 2012, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 2012, deletes or
extends the dates on which it becomes inoperative and is repealed.
12631. (a) Any insurer that fails to pay any tax, except a tax
determined as a deficiency assessment by the board under Article 3
(commencing with Section 12421) of Chapter 4, within the time
required, shall pay a penalty of 10 percent of the amount of the tax
in addition to the tax, plus interest at the modified adjusted rate
per month, or fraction thereof, established pursuant to Section
6591.5, from the due date of the tax until the date of payment.
(b) This section shall become operative on July 1, 2011.
12631.5. (a) If the board finds, taking into account all facts and
circumstances, that it is inequitable to compute interest at the
modified adjusted rate per month or fraction thereof, as defined in
subdivision (b) of Section 6591.5, interest shall be computed at the
modified adjusted daily rate from the date on which the tax or
prepayment was due until the date of payment, if all of the following
occur:
(1) The payment of tax or prepayment was made one business day
after the date the tax or prepayment was due.
(2) The person was granted relief from all penalties that applied
to that payment of tax or prepayment.
(3) The person files a request for an oral hearing before the
board.
(b) For purposes of this section, "modified adjusted daily rate"
means the modified adjusted rate per annum as defined in subdivision
(a) of Section 6591.5 determined on a daily basis by dividing the
modified adjusted rate per annum by 365.
(c) For purposes of this section, "board" means the members of the
State Board of Equalization meeting as a public body.
(d) For purposes of this section, "business day" means any day
other than a Saturday, Sunday, or any day designated as a state
holiday.
(e) This section shall not apply to any payment made pursuant to a
deficiency determination, or a determination where no return has
been filed.
(f) This section shall only apply to electronic payments or
prepayments of taxes.
(g) This section shall be operative only until January 1, 2016.
12632. (a) An insurer or Medi-Cal managed care plan that fails to
pay any deficiency assessment when it becomes due and payable shall,
in addition to the deficiency assessment, pay a penalty of 10 percent
of the amount of the deficiency assessment, exclusive of interest
and penalties. The amount of any deficiency assessment, exclusive of
penalties, shall bear interest at the modified adjusted rate per
month, or fraction thereof, established pursuant to Section 6591.5,
from the date on which the amount, or any portion thereof, would have
been payable if properly reported and assessed until the date of
payment.
(b) This section shall become inoperative on July 1, 2011, and, as
of January 1, 2012, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 2012, deletes or
extends the dates on which it becomes inoperative and is repealed.
12632. (a) An insurer that fails to pay any deficiency assessment
when it becomes due and payable shall, in addition to the deficiency
assessment, pay a penalty of 10 percent of the amount of the
deficiency assessment, exclusive of interest and penalties. The
amount of any deficiency assessment, exclusive of penalties, shall
bear interest at the modified adjusted rate per month, or fraction
thereof, established pursuant to Section 6591.5, from the date on
which the amount, or any portion thereof, would have been payable if
properly reported and assessed until the date of payment.
(b) This section shall become operative on July 1, 2011.
12633. When a deficiency assessment is made on the basis of a
proposal submitted by the commissioner pursuant to Section 12423 a
penalty of 10 percent of the amount of the deficiency assessment
shall be added thereto.
12634. When a deficiency assessment is made on the basis of a
proposal submitted by the commissioner pursuant to Section 12422 and
any part of the deficiency is due to negligence or intentional
disregard of this part or rules and regulation adopted to implement
this part but without intent to defraud, a penalty of 10 percent of
the amount of the deficiency assessment shall be added thereto.
12635. If any part of a deficiency for which a deficiency
assessment is made is due to fraud, a penalty of 25 percent of the
amount of the deficiency assessment in addition to any other
penalties shall be added thereto.
12636. (a) If the board finds that an insurer's or Medi-Cal managed
care plan's failure to make a timely return or payment is due to
reasonable cause and to circumstances beyond the insurer's or
Medi-Cal managed care plan's control, and which occurred despite the
exercise of ordinary care and in the absence of willful neglect, the
insurer or Medi-Cal managed care plan may be relieved of the penalty
provided by Section 12258, 12282, 12287, 12631, 12632, or 12633.
Any insurer or Medi-Cal managed care plan seeking to be relieved
of the penalty shall file with the board a statement under penalty of
perjury setting forth the facts upon which the claim for relief is
based.
(b) This section shall become inoperative on July 1, 2011, and, as
of January 1, 2012, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 2012, deletes or
extends the dates on which it becomes inoperative and is repealed.
12636. (a) If the board finds that an insurer's failure to make a
timely return or payment is due to reasonable cause and to
circumstances beyond the insurer's control, and which occurred
despite the exercise of ordinary care and in the absence of willful
neglect, the insurer may be relieved of the penalty provided by
Section 12258, 12282, 12287, 12631, 12632, or 12633.
Any insurer seeking to be relieved of the penalty shall file with
the board a statement under penalty of perjury setting forth the
facts upon which the claim for relief is based.
(b) This section shall become operative on July 1, 2011.
12636.5. (a) Every payment on an insurer's, surplus line broker's,
or Medi-Cal managed care plan's delinquent annual tax shall be
applied as follows:
(1) First, to any interest due on the tax.
(2) Second, to any penalty imposed by this part.
(3) The balance, if any, to the tax itself.
(b) This section shall become inoperative on July 1, 2011, and, as
of January 1, 2012, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 2012, deletes or
extends the dates on which it becomes inoperative and is repealed.
12636.5. (a) Every payment on an insurer's or surplus line broker's
delinquent annual tax shall be applied as follows:
(1) First, to any interest due on the tax.
(2) Second, to any penalty imposed by this part.
(3) The balance, if any, to the tax itself.
(b) This section shall become operative on July 1, 2011.
12637. If the board finds that a person's failure to make a timely
return or payment was due to disaster, and occurred notwithstanding
the exercise of ordinary care and the absence of willful neglect, the
person may be relieved of interest provided for by Sections 12258,
12287, 12307, 12631, and 12632. Any person seeking to be relieved of
interest shall file with the board a statement under penalty of
perjury setting forth the facts upon which he or she bases his or her
claim for relief.
12631. (a) Any insurer or Medi-Cal managed care plan that fails to
pay any tax, except a tax determined as a deficiency assessment by
the board under Article 3 (commencing with Section 12421) of Chapter
4, within the time required, shall pay a penalty of 10 percent of the
amount of the tax in addition to the tax, plus interest at the
modified adjusted rate per month, or fraction thereof, established
pursuant to Section 6591.5, from the due date of the tax until the
date of payment.
(b) This section shall become inoperative on July 1, 2011, and, as
of January 1, 2012, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 2012, deletes or
extends the dates on which it becomes inoperative and is repealed.
12631. (a) Any insurer that fails to pay any tax, except a tax
determined as a deficiency assessment by the board under Article 3
(commencing with Section 12421) of Chapter 4, within the time
required, shall pay a penalty of 10 percent of the amount of the tax
in addition to the tax, plus interest at the modified adjusted rate
per month, or fraction thereof, established pursuant to Section
6591.5, from the due date of the tax until the date of payment.
(b) This section shall become operative on July 1, 2011.
12631.5. (a) If the board finds, taking into account all facts and
circumstances, that it is inequitable to compute interest at the
modified adjusted rate per month or fraction thereof, as defined in
subdivision (b) of Section 6591.5, interest shall be computed at the
modified adjusted daily rate from the date on which the tax or
prepayment was due until the date of payment, if all of the following
occur:
(1) The payment of tax or prepayment was made one business day
after the date the tax or prepayment was due.
(2) The person was granted relief from all penalties that applied
to that payment of tax or prepayment.
(3) The person files a request for an oral hearing before the
board.
(b) For purposes of this section, "modified adjusted daily rate"
means the modified adjusted rate per annum as defined in subdivision
(a) of Section 6591.5 determined on a daily basis by dividing the
modified adjusted rate per annum by 365.
(c) For purposes of this section, "board" means the members of the
State Board of Equalization meeting as a public body.
(d) For purposes of this section, "business day" means any day
other than a Saturday, Sunday, or any day designated as a state
holiday.
(e) This section shall not apply to any payment made pursuant to a
deficiency determination, or a determination where no return has
been filed.
(f) This section shall only apply to electronic payments or
prepayments of taxes.
(g) This section shall be operative only until January 1, 2016.
12632. (a) An insurer or Medi-Cal managed care plan that fails to
pay any deficiency assessment when it becomes due and payable shall,
in addition to the deficiency assessment, pay a penalty of 10 percent
of the amount of the deficiency assessment, exclusive of interest
and penalties. The amount of any deficiency assessment, exclusive of
penalties, shall bear interest at the modified adjusted rate per
month, or fraction thereof, established pursuant to Section 6591.5,
from the date on which the amount, or any portion thereof, would have
been payable if properly reported and assessed until the date of
payment.
(b) This section shall become inoperative on July 1, 2011, and, as
of January 1, 2012, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 2012, deletes or
extends the dates on which it becomes inoperative and is repealed.
12632. (a) An insurer that fails to pay any deficiency assessment
when it becomes due and payable shall, in addition to the deficiency
assessment, pay a penalty of 10 percent of the amount of the
deficiency assessment, exclusive of interest and penalties. The
amount of any deficiency assessment, exclusive of penalties, shall
bear interest at the modified adjusted rate per month, or fraction
thereof, established pursuant to Section 6591.5, from the date on
which the amount, or any portion thereof, would have been payable if
properly reported and assessed until the date of payment.
(b) This section shall become operative on July 1, 2011.
12633. When a deficiency assessment is made on the basis of a
proposal submitted by the commissioner pursuant to Section 12423 a
penalty of 10 percent of the amount of the deficiency assessment
shall be added thereto.
12634. When a deficiency assessment is made on the basis of a
proposal submitted by the commissioner pursuant to Section 12422 and
any part of the deficiency is due to negligence or intentional
disregard of this part or rules and regulation adopted to implement
this part but without intent to defraud, a penalty of 10 percent of
the amount of the deficiency assessment shall be added thereto.
12635. If any part of a deficiency for which a deficiency
assessment is made is due to fraud, a penalty of 25 percent of the
amount of the deficiency assessment in addition to any other
penalties shall be added thereto.
12636. (a) If the board finds that an insurer's or Medi-Cal managed
care plan's failure to make a timely return or payment is due to
reasonable cause and to circumstances beyond the insurer's or
Medi-Cal managed care plan's control, and which occurred despite the
exercise of ordinary care and in the absence of willful neglect, the
insurer or Medi-Cal managed care plan may be relieved of the penalty
provided by Section 12258, 12282, 12287, 12631, 12632, or 12633.
Any insurer or Medi-Cal managed care plan seeking to be relieved
of the penalty shall file with the board a statement under penalty of
perjury setting forth the facts upon which the claim for relief is
based.
(b) This section shall become inoperative on July 1, 2011, and, as
of January 1, 2012, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 2012, deletes or
extends the dates on which it becomes inoperative and is repealed.
12636. (a) If the board finds that an insurer's failure to make a
timely return or payment is due to reasonable cause and to
circumstances beyond the insurer's control, and which occurred
despite the exercise of ordinary care and in the absence of willful
neglect, the insurer may be relieved of the penalty provided by
Section 12258, 12282, 12287, 12631, 12632, or 12633.
Any insurer seeking to be relieved of the penalty shall file with
the board a statement under penalty of perjury setting forth the
facts upon which the claim for relief is based.
(b) This section shall become operative on July 1, 2011.
12636.5. (a) Every payment on an insurer's, surplus line broker's,
or Medi-Cal managed care plan's delinquent annual tax shall be
applied as follows:
(1) First, to any interest due on the tax.
(2) Second, to any penalty imposed by this part.
(3) The balance, if any, to the tax itself.
(b) This section shall become inoperative on July 1, 2011, and, as
of January 1, 2012, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 2012, deletes or
extends the dates on which it becomes inoperative and is repealed.
12636.5. (a) Every payment on an insurer's or surplus line broker's
delinquent annual tax shall be applied as follows:
(1) First, to any interest due on the tax.
(2) Second, to any penalty imposed by this part.
(3) The balance, if any, to the tax itself.
(b) This section shall become operative on July 1, 2011.
12637. If the board finds that a person's failure to make a timely
return or payment was due to disaster, and occurred notwithstanding
the exercise of ordinary care and the absence of willful neglect, the
person may be relieved of interest provided for by Sections 12258,
12287, 12307, 12631, and 12632. Any person seeking to be relieved of
interest shall file with the board a statement under penalty of
perjury setting forth the facts upon which he or she bases his or her
claim for relief.
12631. (a) Any insurer or Medi-Cal managed care plan that fails to
pay any tax, except a tax determined as a deficiency assessment by
the board under Article 3 (commencing with Section 12421) of Chapter
4, within the time required, shall pay a penalty of 10 percent of the
amount of the tax in addition to the tax, plus interest at the
modified adjusted rate per month, or fraction thereof, established
pursuant to Section 6591.5, from the due date of the tax until the
date of payment.
(b) This section shall become inoperative on July 1, 2011, and, as
of January 1, 2012, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 2012, deletes or
extends the dates on which it becomes inoperative and is repealed.
12631. (a) Any insurer that fails to pay any tax, except a tax
determined as a deficiency assessment by the board under Article 3
(commencing with Section 12421) of Chapter 4, within the time
required, shall pay a penalty of 10 percent of the amount of the tax
in addition to the tax, plus interest at the modified adjusted rate
per month, or fraction thereof, established pursuant to Section
6591.5, from the due date of the tax until the date of payment.
(b) This section shall become operative on July 1, 2011.
12631.5. (a) If the board finds, taking into account all facts and
circumstances, that it is inequitable to compute interest at the
modified adjusted rate per month or fraction thereof, as defined in
subdivision (b) of Section 6591.5, interest shall be computed at the
modified adjusted daily rate from the date on which the tax or
prepayment was due until the date of payment, if all of the following
occur:
(1) The payment of tax or prepayment was made one business day
after the date the tax or prepayment was due.
(2) The person was granted relief from all penalties that applied
to that payment of tax or prepayment.
(3) The person files a request for an oral hearing before the
board.
(b) For purposes of this section, "modified adjusted daily rate"
means the modified adjusted rate per annum as defined in subdivision
(a) of Section 6591.5 determined on a daily basis by dividing the
modified adjusted rate per annum by 365.
(c) For purposes of this section, "board" means the members of the
State Board of Equalization meeting as a public body.
(d) For purposes of this section, "business day" means any day
other than a Saturday, Sunday, or any day designated as a state
holiday.
(e) This section shall not apply to any payment made pursuant to a
deficiency determination, or a determination where no return has
been filed.
(f) This section shall only apply to electronic payments or
prepayments of taxes.
(g) This section shall be operative only until January 1, 2016.
12632. (a) An insurer or Medi-Cal managed care plan that fails to
pay any deficiency assessment when it becomes due and payable shall,
in addition to the deficiency assessment, pay a penalty of 10 percent
of the amount of the deficiency assessment, exclusive of interest
and penalties. The amount of any deficiency assessment, exclusive of
penalties, shall bear interest at the modified adjusted rate per
month, or fraction thereof, established pursuant to Section 6591.5,
from the date on which the amount, or any portion thereof, would have
been payable if properly reported and assessed until the date of
payment.
(b) This section shall become inoperative on July 1, 2011, and, as
of January 1, 2012, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 2012, deletes or
extends the dates on which it becomes inoperative and is repealed.
12632. (a) An insurer that fails to pay any deficiency assessment
when it becomes due and payable shall, in addition to the deficiency
assessment, pay a penalty of 10 percent of the amount of the
deficiency assessment, exclusive of interest and penalties. The
amount of any deficiency assessment, exclusive of penalties, shall
bear interest at the modified adjusted rate per month, or fraction
thereof, established pursuant to Section 6591.5, from the date on
which the amount, or any portion thereof, would have been payable if
properly reported and assessed until the date of payment.
(b) This section shall become operative on July 1, 2011.
12633. When a deficiency assessment is made on the basis of a
proposal submitted by the commissioner pursuant to Section 12423 a
penalty of 10 percent of the amount of the deficiency assessment
shall be added thereto.
12634. When a deficiency assessment is made on the basis of a
proposal submitted by the commissioner pursuant to Section 12422 and
any part of the deficiency is due to negligence or intentional
disregard of this part or rules and regulation adopted to implement
this part but without intent to defraud, a penalty of 10 percent of
the amount of the deficiency assessment shall be added thereto.
12635. If any part of a deficiency for which a deficiency
assessment is made is due to fraud, a penalty of 25 percent of the
amount of the deficiency assessment in addition to any other
penalties shall be added thereto.
12636. (a) If the board finds that an insurer's or Medi-Cal managed
care plan's failure to make a timely return or payment is due to
reasonable cause and to circumstances beyond the insurer's or
Medi-Cal managed care plan's control, and which occurred despite the
exercise of ordinary care and in the absence of willful neglect, the
insurer or Medi-Cal managed care plan may be relieved of the penalty
provided by Section 12258, 12282, 12287, 12631, 12632, or 12633.
Any insurer or Medi-Cal managed care plan seeking to be relieved
of the penalty shall file with the board a statement under penalty of
perjury setting forth the facts upon which the claim for relief is
based.
(b) This section shall become inoperative on July 1, 2011, and, as
of January 1, 2012, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 2012, deletes or
extends the dates on which it becomes inoperative and is repealed.
12636. (a) If the board finds that an insurer's failure to make a
timely return or payment is due to reasonable cause and to
circumstances beyond the insurer's control, and which occurred
despite the exercise of ordinary care and in the absence of willful
neglect, the insurer may be relieved of the penalty provided by
Section 12258, 12282, 12287, 12631, 12632, or 12633.
Any insurer seeking to be relieved of the penalty shall file with
the board a statement under penalty of perjury setting forth the
facts upon which the claim for relief is based.
(b) This section shall become operative on July 1, 2011.
12636.5. (a) Every payment on an insurer's, surplus line broker's,
or Medi-Cal managed care plan's delinquent annual tax shall be
applied as follows:
(1) First, to any interest due on the tax.
(2) Second, to any penalty imposed by this part.
(3) The balance, if any, to the tax itself.
(b) This section shall become inoperative on July 1, 2011, and, as
of January 1, 2012, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 2012, deletes or
extends the dates on which it becomes inoperative and is repealed.
12636.5. (a) Every payment on an insurer's or surplus line broker's
delinquent annual tax shall be applied as follows:
(1) First, to any interest due on the tax.
(2) Second, to any penalty imposed by this part.
(3) The balance, if any, to the tax itself.
(b) This section shall become operative on July 1, 2011.
12637. If the board finds that a person's failure to make a timely
return or payment was due to disaster, and occurred notwithstanding
the exercise of ordinary care and the absence of willful neglect, the
person may be relieved of interest provided for by Sections 12258,
12287, 12307, 12631, and 12632. Any person seeking to be relieved of
interest shall file with the board a statement under penalty of
perjury setting forth the facts upon which he or she bases his or her
claim for relief.
