60401. The board, whenever it deems it necessary to ensure
compliance with this part or any rule or regulation adopted under
this part, may require any person to deposit with it any security as
it may determine appropriate. The amount of the security shall be
fixed by the board but shall not be more than three times the
estimated average monthly tax liability of the person. The total
amount of security shall not be in excess of one million dollars
($1,000,000) where the person has established to the satisfaction of
the board that this security, together with property to which the
lien imposed by Section 60445 attaches, is sufficient security to
ensure payment of taxes equivalent to three times the estimated
average monthly tax liability of the person. The amount of the
security may be increased or decreased by the board at any time. Any
security in the form of cash or insured deposits in banks and savings
and loan institutions shall be held by the board in trust to be used
solely in the manner provided for in this section and Section 60406.
Any security in the form of a bond or bonds shall be duly executed
by an admitted surety insurer, payable to the state, conditioned upon
faithful performance of all the requirements of this part, and
expressly providing for the payment of all taxes, penalties, and
other obligations of the person arising out of this part. Security
held by the board shall be released after a three-year period in
which the person has filed all returns and paid all tax to the state
or any amount of tax required to be collected and paid to the state
within the time required.
60402. If any person is delinquent in the payment of any obligation
imposed under this part, or in the event a determination has been
made against a person that remains unpaid, the board may, not later
than three years after the payment becomes delinquent, or within 10
years after the last recording or filing of a notice of state tax
lien under Section 7171 of the Government Code, give notice thereof,
personally or by first-class mail to all persons, including any
officer or department of the state or any political subdivision or
agency of the state, having in their possession or under their
control any credits or other personal property belonging to the
person, or owing any debts to the person. In the case of any state
officer, department or agency, the notice shall be given to the
officer, department or agency prior to the time it presents the claim
of the delinquent taxpayer to the Controller.
60403. After receiving the notice, the persons so notified shall
not transfer nor make any other disposition of the credits, other
personal property, or debts in their possession or under their
control at the time they receive the notice until the board consents
to a transfer or disposition or until 60 days elapse after the
receipt of the notice, whichever period expires earlier.
60404. All persons so notified shall forthwith after receipt of the
notice advise the board of all credits, other personal property, or
debts in their possession, under their control, or owing by them. If
the notice seeks to prevent the transfer or other disposition of a
deposit in a bank or other credits or personal property in the
possession or under the control of a bank, the notice to be effective
shall state the amount, interest and penalty due from the person and
shall be delivered or mailed to the branch or office of the bank at
which the deposit is carried or at which such credits or personal
property is held. Notwithstanding any other provision, with respect
to a deposit in a bank or other credits or personal property in the
possession or under the control of a bank, the notice shall be
effective with respect to an amount not in excess of two times the
amount, interest and penalty due from the person.
60405. If, during the effective period of the notice to withhold,
any person so notified makes any transfer or disposition of the
property or debts required to be withheld, to the extent of the value
of the property or the amount of the debts thus transferred or paid,
he or she shall be liable to the state for any indebtedness due
under this part from the person with respect to whose obligation the
notice was given if solely by reason of that transfer or disposition
the state is unable to recover the indebtedness of the person with
respect to whose obligation the notice was given.
60406. If, at the time a person ceases to operate under this part,
the board holds a security pursuant to Section 60401 in the form of
cash, or insured deposits in banks or savings and loan institutions,
the security when applied to the account of the taxpayer shall be
deemed to be a payment on account of any liability of the taxpayer to
the board on the date the person ceases to operate under this part.
60407. (a) Subject to the limitations in subdivisions (b) and (c),
the board may by notice of levy, served personally or by first-class
mail, require all persons having in their possession, or under their
control, any payments, credits other than payments, or other personal
property belonging to a person liable for any amount under this part
to withhold from those credits or other personal property the amount
of any tax, interest, or penalties due from that person, or the
amount of any liability incurred by him or her under this part, and
to transmit the amount withheld to the board at those times as it may
designate. The notice of levy shall have the same effect as a levy
pursuant to a writ of execution except for the continuing effect of
the levy, as provided in subdivision (b).
(b) The person served shall continue to withhold pursuant to the
notice of levy until the amount specified in the notice, including
accrued interest, has been paid in full, until the notice is
withdrawn, or until one year from the date the notice is received,
whichever occurs first.
(c) The amount required to be withheld is the lesser of the
following:
(1) The amount due stated on the notice.
(2) The sum of both of the following:
(A) The amount of the payments, credits other than payments, or
personal property described above and under the person's possession
or control when the notice of levy is served on the person.
(B) The amount of each payment that becomes due following service
of the notice of levy on the person and prior to the expiration of
the levy.
(d) For the purposes of this section, "payment" does not include
earnings as that term is defined in subdivision (a) of Section
706.011 of the Code of Civil Procedure or funds in a deposit account
as defined in paragraph (29) of subdivision (a) of Section 9102 of
the Commercial Code. "Payment" does include any of the following:
(1) Any payment due for services of an independent contractor,
dividends, rents, royalties, residuals, patent rights, or mineral or
other natural rights.
(2) Any payment or credit due or becoming due periodically as the
result of an enforceable obligation to the person liable for the tax.
(3) Any other payment or credit due or becoming due the person
liable as the result of a written or oral contract for services or
sales whether denominated as wages, salary, commission, bonus, or
otherwise.
(e) In the case of a financial institution, to be effective, the
notice shall state the amount due from the taxpayer and shall be
delivered or mailed to the branch or office of the financial
institution where the credits or other property is held, unless
another branch or office is designated by the financial institution
to receive the notice.
60408. (a) Notwithstanding Article 7 (commencing with Section
706.151) of Chapter 5 of Title 9 of Part 2 of the Code of Civil
Procedure, if the board determines receiving information from a
supplier or other person liable for any amount under this part that
the person's employer withheld earnings for taxes pursuant Section
60407 and failed to remit the withheld earnings to the board, the
employer shall be liable for the amount not remitted. The board's
determination shall be based on payroll documents or other
substantiating evidence furnished by the person liable for the tax.
(b) Upon its determination, the board shall mail notice to the
employer at its last known address that upon failure to remit the
withheld earnings to the board within 15 days of the date of its
notice to the employer, the employer shall be liable for that amount
which was withheld and not remitted.
(c) If the employer fails to remit the amount withheld to the
board upon notice, that amount for which the employer is liable shall
be determined, collected, and paid as though it were a tax
deficiency. The amount may be assessed at any time prior to seven
years from the first day that the unremitted amount, in the
aggregate, was first withheld. Interest shall accrue on that amount
from the first day that the unremitted amount, in the aggregate, was
first withheld.
(d) When the determination against the employer is final and due
and payable, the person's account shall be immediately credited with
an amount equal to that determined amount as though it were a payment
received by the board on the first date that the unremitted amount,
in the aggregate, was first withheld by the employer.
(e) Collection against the person liable for the tax is stayed for
both the following amount and period:
(1) An amount equal to the amount determined by the board under
subdivision (a).
(2) The earlier of the time the credit is applied to the person's
account pursuant to subdivision (d) or the determination against the
employer is withdrawn or revised and the person is notified by the
board thereof.
(f) If under this section an amount that was withheld and not
remitted to the board is final and due and payable by the employer
and credited to the person's account, this remedy shall be the
exclusive remedy for the person to recover that amount from the
employer.
(g) This section shall apply to determinations made by the board
on or after the effective date of the act adding this section.
60401. The board, whenever it deems it necessary to ensure
compliance with this part or any rule or regulation adopted under
this part, may require any person to deposit with it any security as
it may determine appropriate. The amount of the security shall be
fixed by the board but shall not be more than three times the
estimated average monthly tax liability of the person. The total
amount of security shall not be in excess of one million dollars
($1,000,000) where the person has established to the satisfaction of
the board that this security, together with property to which the
lien imposed by Section 60445 attaches, is sufficient security to
ensure payment of taxes equivalent to three times the estimated
average monthly tax liability of the person. The amount of the
security may be increased or decreased by the board at any time. Any
security in the form of cash or insured deposits in banks and savings
and loan institutions shall be held by the board in trust to be used
solely in the manner provided for in this section and Section 60406.
Any security in the form of a bond or bonds shall be duly executed
by an admitted surety insurer, payable to the state, conditioned upon
faithful performance of all the requirements of this part, and
expressly providing for the payment of all taxes, penalties, and
other obligations of the person arising out of this part. Security
held by the board shall be released after a three-year period in
which the person has filed all returns and paid all tax to the state
or any amount of tax required to be collected and paid to the state
within the time required.
60402. If any person is delinquent in the payment of any obligation
imposed under this part, or in the event a determination has been
made against a person that remains unpaid, the board may, not later
than three years after the payment becomes delinquent, or within 10
years after the last recording or filing of a notice of state tax
lien under Section 7171 of the Government Code, give notice thereof,
personally or by first-class mail to all persons, including any
officer or department of the state or any political subdivision or
agency of the state, having in their possession or under their
control any credits or other personal property belonging to the
person, or owing any debts to the person. In the case of any state
officer, department or agency, the notice shall be given to the
officer, department or agency prior to the time it presents the claim
of the delinquent taxpayer to the Controller.
60403. After receiving the notice, the persons so notified shall
not transfer nor make any other disposition of the credits, other
personal property, or debts in their possession or under their
control at the time they receive the notice until the board consents
to a transfer or disposition or until 60 days elapse after the
receipt of the notice, whichever period expires earlier.
60404. All persons so notified shall forthwith after receipt of the
notice advise the board of all credits, other personal property, or
debts in their possession, under their control, or owing by them. If
the notice seeks to prevent the transfer or other disposition of a
deposit in a bank or other credits or personal property in the
possession or under the control of a bank, the notice to be effective
shall state the amount, interest and penalty due from the person and
shall be delivered or mailed to the branch or office of the bank at
which the deposit is carried or at which such credits or personal
property is held. Notwithstanding any other provision, with respect
to a deposit in a bank or other credits or personal property in the
possession or under the control of a bank, the notice shall be
effective with respect to an amount not in excess of two times the
amount, interest and penalty due from the person.
60405. If, during the effective period of the notice to withhold,
any person so notified makes any transfer or disposition of the
property or debts required to be withheld, to the extent of the value
of the property or the amount of the debts thus transferred or paid,
he or she shall be liable to the state for any indebtedness due
under this part from the person with respect to whose obligation the
notice was given if solely by reason of that transfer or disposition
the state is unable to recover the indebtedness of the person with
respect to whose obligation the notice was given.
60406. If, at the time a person ceases to operate under this part,
the board holds a security pursuant to Section 60401 in the form of
cash, or insured deposits in banks or savings and loan institutions,
the security when applied to the account of the taxpayer shall be
deemed to be a payment on account of any liability of the taxpayer to
the board on the date the person ceases to operate under this part.
60407. (a) Subject to the limitations in subdivisions (b) and (c),
the board may by notice of levy, served personally or by first-class
mail, require all persons having in their possession, or under their
control, any payments, credits other than payments, or other personal
property belonging to a person liable for any amount under this part
to withhold from those credits or other personal property the amount
of any tax, interest, or penalties due from that person, or the
amount of any liability incurred by him or her under this part, and
to transmit the amount withheld to the board at those times as it may
designate. The notice of levy shall have the same effect as a levy
pursuant to a writ of execution except for the continuing effect of
the levy, as provided in subdivision (b).
(b) The person served shall continue to withhold pursuant to the
notice of levy until the amount specified in the notice, including
accrued interest, has been paid in full, until the notice is
withdrawn, or until one year from the date the notice is received,
whichever occurs first.
(c) The amount required to be withheld is the lesser of the
following:
(1) The amount due stated on the notice.
(2) The sum of both of the following:
(A) The amount of the payments, credits other than payments, or
personal property described above and under the person's possession
or control when the notice of levy is served on the person.
(B) The amount of each payment that becomes due following service
of the notice of levy on the person and prior to the expiration of
the levy.
(d) For the purposes of this section, "payment" does not include
earnings as that term is defined in subdivision (a) of Section
706.011 of the Code of Civil Procedure or funds in a deposit account
as defined in paragraph (29) of subdivision (a) of Section 9102 of
the Commercial Code. "Payment" does include any of the following:
(1) Any payment due for services of an independent contractor,
dividends, rents, royalties, residuals, patent rights, or mineral or
other natural rights.
(2) Any payment or credit due or becoming due periodically as the
result of an enforceable obligation to the person liable for the tax.
(3) Any other payment or credit due or becoming due the person
liable as the result of a written or oral contract for services or
sales whether denominated as wages, salary, commission, bonus, or
otherwise.
(e) In the case of a financial institution, to be effective, the
notice shall state the amount due from the taxpayer and shall be
delivered or mailed to the branch or office of the financial
institution where the credits or other property is held, unless
another branch or office is designated by the financial institution
to receive the notice.
60408. (a) Notwithstanding Article 7 (commencing with Section
706.151) of Chapter 5 of Title 9 of Part 2 of the Code of Civil
Procedure, if the board determines receiving information from a
supplier or other person liable for any amount under this part that
the person's employer withheld earnings for taxes pursuant Section
60407 and failed to remit the withheld earnings to the board, the
employer shall be liable for the amount not remitted. The board's
determination shall be based on payroll documents or other
substantiating evidence furnished by the person liable for the tax.
(b) Upon its determination, the board shall mail notice to the
employer at its last known address that upon failure to remit the
withheld earnings to the board within 15 days of the date of its
notice to the employer, the employer shall be liable for that amount
which was withheld and not remitted.
(c) If the employer fails to remit the amount withheld to the
board upon notice, that amount for which the employer is liable shall
be determined, collected, and paid as though it were a tax
deficiency. The amount may be assessed at any time prior to seven
years from the first day that the unremitted amount, in the
aggregate, was first withheld. Interest shall accrue on that amount
from the first day that the unremitted amount, in the aggregate, was
first withheld.
(d) When the determination against the employer is final and due
and payable, the person's account shall be immediately credited with
an amount equal to that determined amount as though it were a payment
received by the board on the first date that the unremitted amount,
in the aggregate, was first withheld by the employer.
(e) Collection against the person liable for the tax is stayed for
both the following amount and period:
(1) An amount equal to the amount determined by the board under
subdivision (a).
(2) The earlier of the time the credit is applied to the person's
account pursuant to subdivision (d) or the determination against the
employer is withdrawn or revised and the person is notified by the
board thereof.
(f) If under this section an amount that was withheld and not
remitted to the board is final and due and payable by the employer
and credited to the person's account, this remedy shall be the
exclusive remedy for the person to recover that amount from the
employer.
(g) This section shall apply to determinations made by the board
on or after the effective date of the act adding this section.
60401. The board, whenever it deems it necessary to ensure
compliance with this part or any rule or regulation adopted under
this part, may require any person to deposit with it any security as
it may determine appropriate. The amount of the security shall be
fixed by the board but shall not be more than three times the
estimated average monthly tax liability of the person. The total
amount of security shall not be in excess of one million dollars
($1,000,000) where the person has established to the satisfaction of
the board that this security, together with property to which the
lien imposed by Section 60445 attaches, is sufficient security to
ensure payment of taxes equivalent to three times the estimated
average monthly tax liability of the person. The amount of the
security may be increased or decreased by the board at any time. Any
security in the form of cash or insured deposits in banks and savings
and loan institutions shall be held by the board in trust to be used
solely in the manner provided for in this section and Section 60406.
Any security in the form of a bond or bonds shall be duly executed
by an admitted surety insurer, payable to the state, conditioned upon
faithful performance of all the requirements of this part, and
expressly providing for the payment of all taxes, penalties, and
other obligations of the person arising out of this part. Security
held by the board shall be released after a three-year period in
which the person has filed all returns and paid all tax to the state
or any amount of tax required to be collected and paid to the state
within the time required.
60402. If any person is delinquent in the payment of any obligation
imposed under this part, or in the event a determination has been
made against a person that remains unpaid, the board may, not later
than three years after the payment becomes delinquent, or within 10
years after the last recording or filing of a notice of state tax
lien under Section 7171 of the Government Code, give notice thereof,
personally or by first-class mail to all persons, including any
officer or department of the state or any political subdivision or
agency of the state, having in their possession or under their
control any credits or other personal property belonging to the
person, or owing any debts to the person. In the case of any state
officer, department or agency, the notice shall be given to the
officer, department or agency prior to the time it presents the claim
of the delinquent taxpayer to the Controller.
60403. After receiving the notice, the persons so notified shall
not transfer nor make any other disposition of the credits, other
personal property, or debts in their possession or under their
control at the time they receive the notice until the board consents
to a transfer or disposition or until 60 days elapse after the
receipt of the notice, whichever period expires earlier.
60404. All persons so notified shall forthwith after receipt of the
notice advise the board of all credits, other personal property, or
debts in their possession, under their control, or owing by them. If
the notice seeks to prevent the transfer or other disposition of a
deposit in a bank or other credits or personal property in the
possession or under the control of a bank, the notice to be effective
shall state the amount, interest and penalty due from the person and
shall be delivered or mailed to the branch or office of the bank at
which the deposit is carried or at which such credits or personal
property is held. Notwithstanding any other provision, with respect
to a deposit in a bank or other credits or personal property in the
possession or under the control of a bank, the notice shall be
effective with respect to an amount not in excess of two times the
amount, interest and penalty due from the person.
60405. If, during the effective period of the notice to withhold,
any person so notified makes any transfer or disposition of the
property or debts required to be withheld, to the extent of the value
of the property or the amount of the debts thus transferred or paid,
he or she shall be liable to the state for any indebtedness due
under this part from the person with respect to whose obligation the
notice was given if solely by reason of that transfer or disposition
the state is unable to recover the indebtedness of the person with
respect to whose obligation the notice was given.
60406. If, at the time a person ceases to operate under this part,
the board holds a security pursuant to Section 60401 in the form of
cash, or insured deposits in banks or savings and loan institutions,
the security when applied to the account of the taxpayer shall be
deemed to be a payment on account of any liability of the taxpayer to
the board on the date the person ceases to operate under this part.
60407. (a) Subject to the limitations in subdivisions (b) and (c),
the board may by notice of levy, served personally or by first-class
mail, require all persons having in their possession, or under their
control, any payments, credits other than payments, or other personal
property belonging to a person liable for any amount under this part
to withhold from those credits or other personal property the amount
of any tax, interest, or penalties due from that person, or the
amount of any liability incurred by him or her under this part, and
to transmit the amount withheld to the board at those times as it may
designate. The notice of levy shall have the same effect as a levy
pursuant to a writ of execution except for the continuing effect of
the levy, as provided in subdivision (b).
(b) The person served shall continue to withhold pursuant to the
notice of levy until the amount specified in the notice, including
accrued interest, has been paid in full, until the notice is
withdrawn, or until one year from the date the notice is received,
whichever occurs first.
(c) The amount required to be withheld is the lesser of the
following:
(1) The amount due stated on the notice.
(2) The sum of both of the following:
(A) The amount of the payments, credits other than payments, or
personal property described above and under the person's possession
or control when the notice of levy is served on the person.
(B) The amount of each payment that becomes due following service
of the notice of levy on the person and prior to the expiration of
the levy.
(d) For the purposes of this section, "payment" does not include
earnings as that term is defined in subdivision (a) of Section
706.011 of the Code of Civil Procedure or funds in a deposit account
as defined in paragraph (29) of subdivision (a) of Section 9102 of
the Commercial Code. "Payment" does include any of the following:
(1) Any payment due for services of an independent contractor,
dividends, rents, royalties, residuals, patent rights, or mineral or
other natural rights.
(2) Any payment or credit due or becoming due periodically as the
result of an enforceable obligation to the person liable for the tax.
(3) Any other payment or credit due or becoming due the person
liable as the result of a written or oral contract for services or
sales whether denominated as wages, salary, commission, bonus, or
otherwise.
(e) In the case of a financial institution, to be effective, the
notice shall state the amount due from the taxpayer and shall be
delivered or mailed to the branch or office of the financial
institution where the credits or other property is held, unless
another branch or office is designated by the financial institution
to receive the notice.
60408. (a) Notwithstanding Article 7 (commencing with Section
706.151) of Chapter 5 of Title 9 of Part 2 of the Code of Civil
Procedure, if the board determines receiving information from a
supplier or other person liable for any amount under this part that
the person's employer withheld earnings for taxes pursuant Section
60407 and failed to remit the withheld earnings to the board, the
employer shall be liable for the amount not remitted. The board's
determination shall be based on payroll documents or other
substantiating evidence furnished by the person liable for the tax.
(b) Upon its determination, the board shall mail notice to the
employer at its last known address that upon failure to remit the
withheld earnings to the board within 15 days of the date of its
notice to the employer, the employer shall be liable for that amount
which was withheld and not remitted.
(c) If the employer fails to remit the amount withheld to the
board upon notice, that amount for which the employer is liable shall
be determined, collected, and paid as though it were a tax
deficiency. The amount may be assessed at any time prior to seven
years from the first day that the unremitted amount, in the
aggregate, was first withheld. Interest shall accrue on that amount
from the first day that the unremitted amount, in the aggregate, was
first withheld.
(d) When the determination against the employer is final and due
and payable, the person's account shall be immediately credited with
an amount equal to that determined amount as though it were a payment
received by the board on the first date that the unremitted amount,
in the aggregate, was first withheld by the employer.
(e) Collection against the person liable for the tax is stayed for
both the following amount and period:
(1) An amount equal to the amount determined by the board under
subdivision (a).
(2) The earlier of the time the credit is applied to the person's
account pursuant to subdivision (d) or the determination against the
employer is withdrawn or revised and the person is notified by the
board thereof.
(f) If under this section an amount that was withheld and not
remitted to the board is final and due and payable by the employer
and credited to the person's account, this remedy shall be the
exclusive remedy for the person to recover that amount from the
employer.
(g) This section shall apply to determinations made by the board
on or after the effective date of the act adding this section.
