ARTICLE 1. Administration
(Heading of Article 1 added by Stats. 1992, Ch. 438, Sec. 5.)
30451. The board shall enforce the provisions of this part and may prescribe,
adopt, and enforce rules and regulations relating to the administration
and enforcement of this part. The board may prescribe the extent to which
any ruling or regulation shall be applied without retroactive effect.
(Added by Stats. 1959, Ch. 1040.)
30452. The board may employ accountants, auditors, investigators, assistants,
and clerks necessary for the efficient administration of this part and
may designate representatives to conduct hearings, or perform any other
duties imposed by this part or other laws of this State upon the board.
(Added by Stats. 1959, Ch. 1040.)
30453. Every distributor and every person dealing in, transporting, or storing
cigarettes or tobacco products in this state shall keep such records,
receipts, invoices, and other pertinent papers with respect thereto in
such form as the board may require.
(Amended by Stats. 1989, Ch. 634, Sec. 38. Effective September 21, 1989.)
30454. The board or its authorized representative may make such examinations
of the books, papers, records, and equipment of any person dealing in,
transporting, or storing cigarettes or tobacco products and such other
investigations as it may deem necessary in carrying out the provisions
of this part.
In addition to any other reports required under this part, the board may,
by rule or otherwise, require additional, other, or supplemental reports
from licensed distributors, dealers, transporters, common and private
carriers, warehousemen, bailees, and other persons, including reports
of shipments of cigarettes or tobacco products from a point outside this
state to a point within this state, and prescribe the form, including
verification, of the information to be given on, and the times for filing
of, such additional, other, or supplemental reports.
(Amended by Stats. 1989, Ch. 634, Sec. 39. Effective September 21, 1989.)
30455. It is unlawful for the board or any person having an administrative duty
under this part to make known in any manner whatever the business affairs,
operations, or information obtained by an investigation of records and
equipment of any person visited or examined in the discharge of official
duty, or the amount or source of income, profits, losses, expenditures,
or any particular thereof, set forth or disclosed in any report, or to
permit any report or copy thereof or any book containing any abstract
or particulars thereof to be seen or examined by any person. However,
the Governor may, by general or special order, authorize examination of
the records maintained by the board under this part by other state officers,
by tax officers of another state, by the federal government, if a reciprocal
arrangement exists, or by any other person.
Successors, receivers, trustees, executors, administrators, assignees,
and guarantors, if directly interested, may be given information as to
the items included in the measure and amounts of any unpaid tax or amounts
of tax required to be collected, interest, and penalties.
Nothing in this section shall prevent the board from exchanging with officials
of other states information concerning interstate shipments of cigarettes
or tobacco products.
Any violation of this section is a misdemeanor and is punishable by a
fine not exceeding one thousand dollars ($1,000), by imprisonment not
exceeding one year, or by both, in the discretion of the court.
(Amended by Stats. 1997, Ch. 620, Sec. 10. Effective January 1, 1998.)
30455.5. (a) Except as otherwise provided by law, any person who is engaged in
the business of preparing, or providing services in connection with the
preparation of, returns under Chapter 4 (commencing with Section 30181)
of this part, or any person who for compensation prepares any such return
for any other person, and who knowingly or recklessly does either of the
following, shall be guilty of a misdemeanor, and, upon conviction thereof,
shall be fined not more than one thousand dollars ($1,000) or imprisoned
no more than one year, or both, together with the costs of prosecution:
(1) Discloses any information furnished to him or her for, or in connection
with, the preparation of the return, or
(2) Uses that information for any purpose other than to prepare, or assist
in preparing, the return.
(b) Subdivision (a) shall not apply to disclosure of information if that
disclosure is made pursuant to the person’s consent or pursuant
to a subpoena, court order, or other compulsory legal process.
(Added by Stats. 2000, Ch. 1052, Sec. 28. Effective January 1, 2001.)
30456. A certificate by the board or an employee of the board stating that a
notice required by this part was given by mailing or personal service
shall be prima facie evidence in any administrative or judicial proceeding
of the fact and regularity of the mailing or personal service in accordance
with any requirement of this part for the giving of a notice. Unless otherwise
specifically required, any notice provided by this part to be mailed or
served may be given either by mailing or by personal service in the manner
provided for giving notice of a deficiency determination.
(Added by Stats. 1974, Ch. 610.)
30457. (a) The board shall determine which taxpayer’s accounts are eligible
for the managed audit program in a manner that is consistent with the
efficient use of its auditing resources and the maximum effectiveness
of the program.
(b) A taxpayer is not required to participate in the managed audit program.
(Added by Stats. 2014, Ch. 105, Sec. 11. Effective January 1, 2015.)
30457.1. A taxpayer’s account is eligible for the managed audit program only
if the taxpayer meets all of the following criteria:
(a) The taxpayer’s business involves few or no statutory exemptions.
(b) The taxpayer’s business involves a single or a small number
of clearly defined taxability issues.
(c) The taxpayer is taxed pursuant to this part and agrees to participate
in the managed audit program.
(d) The taxpayer has the resources to comply with the managed audit instructions
provided by the board.
(Added by Stats. 2014, Ch. 105, Sec. 12. Effective January 1, 2015.)
30457.2. (a) If the board selects a taxpayer’s account for a managed audit,
all of the following apply:
(1) The board shall identify all of the following:
(A) The audit period covered by the managed audit.
(B) The types of transactions covered by the managed audit.
(C) The specific procedures that the taxpayer is to follow in determining
(D) The records to be reviewed by the taxpayer.
(E) The manner in which the types of transactions are to be scheduled
(F) The time period for completion of the managed audit.
(G) The time period for the payment of the liability and interest.
(H) Any other criteria that the board may require for completion of the
(2) The taxpayer shall:
(A) Examine its books, papers, records, and equipment to determine if
it has any unreported tax liability for the audit period.
(B) Make available to the board for verification all computations and
books, papers, records, and equipment examined pursuant to subparagraph (A).
(b) The information provided by the taxpayer pursuant to paragraph (2)
of subdivision (a) is the same information that is required for the completion
of any other audit that the board may conduct.
(Added by Stats. 2014, Ch. 105, Sec. 13. Effective January 1, 2015.)
30457.3. Nothing in this article limits the board’s authority to examine
the books, papers, records, and equipment of a taxpayer under Section 30454.
(Added by Stats. 2014, Ch. 105, Sec. 14. Effective January 1, 2015.)
30457.4. Upon completion of the managed audit and verification by the board, interest
on any unpaid liability shall be computed at one-half the rate that would
otherwise be imposed for liabilities covered by the audit period. Payment
of the liabilities and interest shall be made within the time period specified
by the board. If the requirements for the managed audit are not satisfied,
the board may proceed to examine the records of the taxpayer in a manner
to be determined by the board under law.
(Added by Stats. 2014, Ch. 105, Sec. 15. Effective January 1, 2015.)