Part 12.2. Revenue Recovery And Collaborative Enforcement Team Act of California Government Code >> Division 3. >> Title 2. >> Part 12.2.

This part shall be known, and may be cited, as the Revenue Recovery and Collaborative Enforcement Team Act.

(a) The Revenue Recovery and Collaborative Enforcement Team is hereby established in state government as a pilot program.
  (b) For purposes of this part, the term "team" shall refer to the Revenue Recovery and Collaborative Enforcement Team.

(a) The team shall include all of the following state entities:
  (1) Franchise Tax Board.
  (2) Department of Justice.
  (3) State Board of Equalization.
  (4) Employment Development Department.
  (b) In addition to the agencies listed in subdivision (a), the following agencies may participate in the pilot program in an advisory capacity to the team:
  (1) California Health and Human Services Agency.
  (2) Department of Consumer Affairs.
  (3) Department of Industrial Relations.
  (4) Department of Insurance.
  (5) Department of Motor Vehicles.
  (c) If, in its normal course of investigation, an agency listed in subdivision (b) discovers a violation of law that would result in increased tax revenues to the state, that agency may notify the appropriate tax agency listed in subdivision (a).

The team shall meet as needed, but at least quarterly, to conduct its business.

To serve the best interests of the state by combating criminal tax evasion associated with the underground economy, the agencies listed in subdivision (a) of Section 15914 shall do all of the following:
  (a) Develop a plan for a central intake process and organizational structure to document, review, and evaluate data and complaints.
  (b) Evaluate the benefits of a processing center to receive and analyze data, share complaints, and research leads from the input of agencies listed in subdivisions (a) and (b) of Section 15914.
  (c) Provide participating and nonparticipating agencies with investigative leads where collaboration opportunities exist for felony-level criminal investigations, including, but not limited to, referring leads to agencies with appropriate enforcement jurisdiction.

Duly authorized team members listed in subdivision (a) of Section 15914 may exchange intelligence, data, documents, information, complaints, or lead referrals for the purpose of investigating criminal tax evasion associated with underground economic activities. Any member or ex-member of the team, any agent employed by any agency listed in subdivisions (a) and (b) of Section 15914, or any person who has at any time obtained such knowledge from any of the foregoing agencies or persons shall not divulge, or make known in any manner not provided by law, any of the confidential information received by, or reported to, the team. Information exchanged pursuant to this section shall retain its confidential status and shall remain subject to the confidentiality provisions contained in the following provisions:
  (a) California Health and Human Services Agency: Subdivision (c) of Section 6254 of this code and Section 14100.2 of the Welfare and Institutions Code.
  (b) Department of Consumer Affairs: Section 30 of the Business and Professions Code and Section 56.29 of the Civil Code.
  (c) Department of Industrial Relations: Sections 11181, 11183, and 15553 of this code, Article 7 (commencing with Section 1877) of Chapter 12 of Part 2 of Division 1 of the Insurance Code, and Sections 92, 138.7, 1026, 3762, 6309, 6322, 6396, and 6412 of the Labor Code.
  (d) Department of Insurance: Section 11180 of this code and Sections 1872.6, 1873, 1874.2, 1875.1, 1877.1, 1877.3, 1877.4, and 1877.5 of the Insurance Code.
  (e) Department of Justice: Section 11183.
  (f) Department of Motor Vehicles: Sections 1808.2, 1808.4, 1808.5, 1808.6, 1808.21, 1808.24, and 12800.5 of the Vehicle Code.
  (g) Employment Development Department: Sections 1094 and 1095 of the Unemployment Insurance Code.
  (h) Franchise Tax Board: Sections 19542, 19542.1, and 19542.3 of the Revenue and Taxation Code.
  (i) State Board of Equalization: Section 15619 of this code, Section 42464.8 of the Public Resources Code, and Sections 7056, 7056.5, 8255, 9255, 9255.1, 30455, 38705, 38706, 43651, 45981, 45982, 45983, 45984, 46751, 50159, 50160, 50161, 55381, 60608, and 60609 of the Revenue and Taxation Code.

The team shall submit to the Legislature on or before December 1, 2017, and in compliance with Section 9795, a report of the pilot program that includes, but is not limited to, the following information:
  (a) The number of leads or complaints received by the team.
  (b) The number of cases investigated or prosecuted through civil action or criminal prosecution as a result of team collaboration.
  (c) Recommendations for modifying, eliminating, or continuing the operation of any or all of the provisions of this part.

The team shall operate the pilot program using existing funding of the Department of Justice, the Franchise Tax Board, the State Board of Equalization, and the Employment Development Department and shall not request additional funding for the pilot program until after making its report to the Legislature described in Section 15922.

This part shall remain in effect only until January 1, 2019, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2019, deletes or extends that date.