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HomeMy WebLinkAboutMINUTES - 06051990 - 1.69 V� TO: BOARD OF SUPERVISORS ti Contra FROM: �^ Costa Phil Batchelor, County Administrator 9A . a County DATE: May 30, 1990 9 COUN�t SUBJECT- LEGISLATION: SB 2735 (Calderon) SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDATION Indicate that the Board of Supervisors continues to SUPPORT SB 2735 by Senator Calderon which would make the laws relating to large currency transactions apply to real estate brokers and vehicle, watercraft and airplane dealers and which would require the Franchise Tax Board to require submission of a copy of the federal information return relating to cash received in trade or business and would authorize the Attorney General to inspect this form. BACKGROUND: On May 15 , 1990 the Board of Supervisors voted to support SB 2735 by Senator McCorquodale. On May 7, 1990 the bill was taken over by Senator Calderon and amended. Existing law requires defined financial institutions to maintain records and report to the Department of Justice concerning transactions involving more than $10 , 000 in currency or other transactions which result in the exchange of a monetary instrument of a value in excess of $10,000. SB 2735, as amended May 7, 1990 , would make these provisions applicable to real estate brokers, escrow agents and defined title insurance companies which are involved in specified currency transactions. The bill also applies these same requirements to vehicle, watercraft and aircraft dealers. CONTINUED ON ATTACHMENT:YP S_YES SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURE(S): / I/ S;� ACTION OF BOARD ON i i n _ S,_ 1990 APPROVED AS RECOMMENDED OTHER VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE 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 51 Z PHIL BAT ELOR,CLERK OF THE BOARD OF Please See Page 2. SUPERVISORS AND COUNTY ADMINISTRATOR M382 (10/88) BY " '��`���" '� DEPUTY Existing law authorizes, but does not require, the Franchise Tax Board to require a taxpayer to file a copy with the Board of the federal information return relating to cash received in a trade or business. SB 2735 would require the Franchise Tax Board to require the submission of this federal information return and would authorize the Attorney General to inspect the copy which has been filed with the Franchise Tax Board. Since SB 2735 expands the record keeping and reporting requirements in an effort to reveal money laundering activity, it appears to be consistent with the Board of Supervisors ' war on drugs. Therefore, it is recommended that the Board of Supervisors indicate its continued support for SB 2735. SB 2735 was scheduled to be heard in the Senate Judiciary Committee on May 22, 1990. cc: Senator Calderon County Administrator District Attorney Sheriff-Coroner Public Defender County Probation Officer Health Services Director Drug Program Administrator Chair, Drug Abuse Advisory Board Les Spahnn, SRJ. Jackson, Barish & Associates