SECTIONS 1755-1758

1755.  If any person or employing unit is delinquent in the paymentof any contributions, penalties or interest provided for in thisdivision, the director may, not later than three years after thepayment became delinquent or within 10 years after the last entry ofa judgment under Article 5 (commencing with Section 1815) or within10 years after the last recording or filing of a notice of state taxlien under Section 7171 of the Government Code, collect thedelinquency or enforce any liens by levy served either personally orby first-class mail, to all persons having in their possession orunder their control any credits or personal property belonging to thedelinquent person or employing unit, or owing any debts to theperson or employing unit at the time of the receipt of the notice oflevy or coming into their possession or under their control for theperiod of one year from the time of receipt of the notice of levy.Any person upon whom a levy has been served having in his or herpossession or under his or her control any credits or personalproperty belonging to the delinquent person or employing unit orowing any debts to the person or employing unit at the time of thereceipt of the levy or coming into his or her possession or under hisor her control for the period of one year from the time of receiptof the notice of levy, shall surrender the credits or personalproperty to the director or pay to the director the amount of anydebt owing the delinquent employer within five days of service of thelevy, and shall surrender the credits or personal property, or theamount of any debt owing to the delinquent employer coming into hisor her possession or under his or her control within one year ofreceipt of the notice of levy within five days of the date of cominginto possession or control of the credits or personal property, orthe amount of any debt owing to the delinquent employer is incurred.Any person in possession of any credits or personal property or owingany debts to the delinquent person or employing unit who surrendersthe credits or personal property or pays the debts owing thedelinquent person or employing unit shall be discharged from anyobligation or liability to the delinquent person or employing unitwith respect to the credits or personal property surrendered or debtspaid to the director. If the levy is made on a deposit or credits orpersonal property in the possession or under the control of a bankor savings and loan association, the notice of levy shall bedelivered or mailed to the centralized processing unit or locationdesignated by that bank or savings and loan association where thecredits or other property are held. If the levy is made on a bank orsavings and loan association it will apply to all credits or personalproperty as provided in this section, except that it will apply tocredits and personal property in a deposit account, as defined inparagraph (29) of subdivision (a) of Section 9102 of the CommercialCode, only at the time the notice of levy is received by the bank orsavings and loan association.1755.1.  (a) In order to implement Section 1755, the department mayserve notice to an address for any bank or savings and loanassociation by means of magnetic media, electronic transmission, orother electronic technology. (b) For purposes of this section, the term "address" shall mean atelephone or modem number, facsimile machine, or any other referencenumber designated by the bank or savings and loan association toreceive data by electronic means.1756.  Notices of levy to the state, pursuant to Section 1755, shallbe given to the state department, board, office or commission priorto the time it presents the claim of the person or employing unit tothe State Controller.1757.  Any person notified pursuant to Section 1755 or 1755.1 whofails or refuses to surrender any credits or other personal property,or pay any debts owing to the delinquent employer, up to the amountspecified in the levy, shall be liable in his own person and estateto the director in an amount equal to the value of the credits orother personal property in the amount of the debt, but not exceedingthe amount specified in the notice of levy, if solely by reason ofsuch failure or refusal, the department is unable to recover thecontributions, penalties, or interest owing by the person withrespect to which the notice was given.1758.  As used in this article "person" includes this State and anycounty, city and county, municipality, district or other politicalsubdivision thereof.