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HomeMy WebLinkAboutMINUTES - 02271990 - 1.62 w k TO: BOARD OF SUPERVISORS Contra :z`r �,• Costa FROM: •;j-� ,,. Phil Batchelor, County Administrator �._ ;z DATE: February20 1990 County TrA CU SUBJECT: LEGISLATION: AJR 67 (Calderon) SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECONIlENDATION Adopt a position in SUPPORT of AJR 67 by Assemblyman Calderon which would request the Congress to amend the Internal Revenue Code to allow Iinformation contained in currency transaction reports to be disclosed to state tax agencies. BACKGROUND: Under current federal law, individuals engaged in a trade or business who receive more than $10,000 in cash in a single transaction or two or more related transactions are required to file currency transaction reports with the federal government. The Treasury Department can use these reports to investigate possible money laundering or drug dealing operations. Under current law, the information contained in these reports may be loaned to the California Attorney General but must be treated as confidential by, the Attorney General, meaning that he cannot release the information to any other state agency. As a result, the Franchise Tax Board is limited in its power to monitor money laundering or drug dealing operations within the state for possible violations of income tax reporting laws. Assemblyman Calderon has introduced Assembly Joint Resolution 67 which would request the Congress to amend Section 6103 of the Internal Revenue Code to permit information submitted in currency transaction reports to be disclosed to state tax agencies. CONTINUED ON ATTACHMENTYeS YES SIGNATURE: Azo A� 5"44 RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURE(S): ACTION OF BOARD ON February 21, 199U APPROVED AS RECOMMENDED OTHER VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE K UNANIMOUS(ABSENT ) AND CORRECT COPY OF AN ACTION TAKEN AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN. CC: ATTESTED -2 7 / Please See Page' 2 . PHIL BATCHELOR,CLER OF THE BOARD OF SUPERVISORS AND COUNTY ADMINISTRATOR M382 (10/88) BY 4�1 `" DEPUTY It appears that passage of AJR 67 and action by Congress to amend the Internal Revenue Code as requested by AJR 67 would provide the Franchise Tax Board with a valuable additional tool to monitor money laundering or drug dealing operations within the state. In this way it appears to be entirely consistent with the Board of Supervisors ' war on drugs and therefore deserves the support of the Board. We are, therefore, recommending that the Board support AJR 67. cc: County Administrator District Attorney Sheriff-Coroner Health Services Director County Probation Officer Drug Program Administrator Chair, Drug Abuse Advisory Board Les Spahnn, SRJ. Jackson, Barish & Associates I I