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FTB Regulatory Activity

Introduction

In order to adopt or amend a regulation, the Franchise Tax Board must participate in the state's regulatory process under the Administrative Procedure Act (APA).

The process involves:

  • Getting authorization to proceed from the three-member Franchise Tax Board.
  • Holding interested parties meetings and formal regulatory hearings.
  • Drafting the language.
  • Getting input from the public.
  • Working with the Office of Administrative Law (OAL) for final approval and filing.

What's New

Cost Impacts of Proposed Rulemaking

Recent legislation (SB 617, Stats. 2011, ch. 496) revised certain aspects of the standardized regulatory cost impact analysis, particularly with respect to “major regulations” (as defined), but also with respect to other rulemaking activities.  As a result, in order to assess the economic impact of a proposed rulemaking action on business, representative private persons, and small businesses, the department intends to solicit information from interested parties during the pre-APA process that will assist in preparation of the regulatory cost impact analysis.

Specifically, the APA requires the department to assess the economic and fiscal impact of this regulation on the following:

  • Estimated private sector cost impacts on businesses and/or employees, small businesses, jobs or occupations, competitiveness of California businesses, reporting requirements, or individuals.  This includes the total number and types of businesses impacted, including the number or percentage of those businesses that are small businesses, the number of businesses that will be created or eliminated, the geographic extent of the impacts (local or statewide), the number of jobs created or eliminated, and the ability of California businesses to compete with businesses in other states.
  • Estimated total statewide dollar costs that businesses and individuals may incur to comply with this regulation, including start-up and ongoing costs.  This includes an identification of the costs for each industry affected, the annual costs a typical business may incur to comply with these requirements (including programming, record keeping, reporting and other paperwork, whether or not the paperwork is required to be submitted), whether the regulation directly impacts housing costs, and whether there are comparable federal regulations.
  • Estimated benefits from the regulation (both whom will benefit and by how much).
  • Any suggested alternatives to the proposed regulation, and the costs and benefits of those suggested alternatives under 1, 2 and 3 above.
  • Whether the estimated costs of this regulation to California businesses will exceed $10 million.


The department encourages submission of any comments and/or cost data on the items set forth above by any interested parties.

Contact Information

To get general information or to make comments, contact the Regulation Coordinator, Colleen Berwick.

Phone: 916.845.3306 from 9 a.m. to 5 p.m. weekdays, except state holidays.

Email: Colleen.Berwick@ftb.ca.gov.

Address:

Franchise Tax Board
Legal Division
PO Box 1720 MS A260
Rancho Cordova, CA 95714-1720

Definitions

  • Regulation - A formal rule or requirement adopted by a state agency and approved by the Office of Administrative Law through the formal regulatory process. (Government Code (GC) § 11342.600)
  • Draft regulation - The language that is used prior to submission to OAL by the Franchise Tax Board to begin the formal regulation process.
  • Interested parties meetings - Informal meetings with the public to obtain input, ask questions, and provide ideas on a specific draft regulation.
  • Proposed regulation - The language we send to OAL and to the public for formal comment under the APA.
  • Regulation hearing - A formal meeting (hearing) with the public to solicit comments regarding a proposed regulation. A notice of the formal meeting is published by OAL in the Notice Register.
  • Final regulation - A rule or requirement formally approved by the Office of Administrative Law and filed with the Secretary of State. View FTB's final regulations.
  • Nonsubstantive changes to an existing regulation - Section 100 of the Office of Administrative Law Regulations provides that an agency may add to, revise, or delete text published in the California Code of Regulations (CCR) without complying with the APA if the change does not materially alter any requirement, right, responsibility, condition, prescription, or other regulatory element of any CCR provision.
  • California Code of Regulations (CCR) - The official compilation and publication of the regulations adopted, amended, or repealed by state agencies according to the Administrative Procedure Act. Go to California Code of Regulations.
  • Title 18, Public Revenues - The Franchise Tax Board regulations fall under Title 18 of the California Code of Regulations. The Board of Equalization regulations are also in Title 18.
  • FTB's Rulemaking Calendar - This calendar contains a list of all regulations that the Franchise Tax Board is working on in a current year, and the projected dates of completion. View FTB's 2010 Rulemaking Calendar or OAL's 2010 Rulemaking Calendar.

Regulations in Progress

Proposed Regulation Section 17942 - Limited Liability Company Fees

Regulation hearing will be held (if requested by interested party 15 days prior to hearing date) on March 27, 2014 at 1:00 p.m.
Notice of Hearing | Initial Statement of Reasons | Proposed Regulation 17942

Third Interested Parties Meeting held at 11:00 a.m. on October 4, 2011
Meeting notice and information | Proposed language

Second Interested Parties Meeting held at 10:00 a.m. on November 19, 2010
Meeting notice and information

Interested Parties Meeting held at 1:30 p.m. on June 17, 2008
Meeting notice and information

Proposed Regulation Section 18416.5 – Alternative Communication Method

Interested Parties Meeting held at 10:00 a.m. on March 14, 2014
Meeting notice and information | Results of Interested Parties Meeting

Proposed Regulation Section 19322 – Refund Claims

Interested Parties Meeting held at 1:00 p.m. on December 3, 2010
Meeting notice and information | Results of Interested Parties Meeting

Draft Regulation Section 19523.5 - Suspension or Disbarment from Practice

Interested Parties Meeting held at 10:00 a.m. on April 21, 2010
Meeting notice and information

Draft Regulation Section 21019 – Release of Liens Filed in Error

Interested Parties Meeting held at 10:00 a.m. on February 14, 2014
Meeting notice and information | Summary of Interested Parties Meeting

Draft Regulation Section 23663 - Assignment of Credits to Combined Group Members

Second Interested Parties Meeting held at 1:30 p.m. on December 5, 2013
Meeting notice and information | Discussion Topics | Power Point

Interested Parties Meeting held at 10:00 a.m. on October 1, 2012
Meeting notice and information | Discussion Topics

Draft Regulation Section 24465 – Transfer of Appreciated Property to an Insurer

Second Interested Parties Meeting held at 10:00 a.m. on March 29, 2012
Meeting notice and information I Results of Second Interested Parties Meeting

Interested Parties Meeting held at 1:00 p.m. on March 8, 2011
Meeting notice and information | Discussion topics | Revenue and Taxation Code Section 24465 | Results of Interested Parties Meeting

Proposed Regulation Section 25136-2 - Market-Based Rules for Sales Other Than Sales of Tangible Personal Property

Second Interested Parties Meeting held at 1:30p.m. on October 18, 2013
Meeting notice and information |  Discussion Draft | Explanation of Discussion Draft | Summary of March 2012 IPM

Interested Parties Meeting held at 1:30p.m. on March 29, 2012
Meeting notice and information | Discussion topics

Draft Regulation Section 25137-1 - Apportionment and Allocation of Partnership Income

Second Interested Parties Meeting held at 10:00 a.m. on October 18, 2013
Meeting notice and information | Discussion Topics

Interested Parties Meeting held at 9 a.m. to 11:30 a.m. and 1 p.m. to 3 p.m. on September 19, 2008
Meeting notice and information

Draft Regulation Section 25137-11 - Trucking Companies – Allocation and Apportionment of Income

Interested Parties Meeting held at 10:00 a.m. May 26, 2009
Meeting notice and information | Results of Interested Parties Meeting

Interested Parties Meeting held at 1:30 p.m. July 17, 2008
Meeting notice and information | Results of Interested Parties Meeting

Regulations Abandoned

Proposed Regulation Sections 19131 and 19132 – Failure to File a Return and Failure to Pay Tax

Interested Parties Meeting held at 10:30 a.m. on December 3, 2010
Meeting notice and information | Results of Interested Parties Meeting

Proposed Regulation Section 19131

Second Interested Parties Meeting held at 2:30 p.m. on November 1, 2011
Meeting notice and information | Proposed Language

Draft Regulation Sections 24411 and 25106.5-1

FTB Notice 2005-1 - Announcement of a Symposium to Discuss Proposed Changes to California Code of Regulations, Title 18, Sections 24411 and 25106.5-1
Discussion Draft - Discussion Draft of Proposed Changes to California Code of Regulations, Title 18, Section 24411
Discussion Draft - Discussion Draft of Proposed Changes to California Code of Regulations, Title 18, Section 25106.5-1
Explanation of Discussion Draft - Proposed Changes to California Code of Regulations, Title 18, Sections 24411 and 25106.5-1
Memo of Tom Campbell Dated June 24, 2005 - Regarding Fujitsu IT Holdings v. FTB

Draft Regulation Section 24451 - California Non-conformity with IRS Notice 2008-83

Interested Parties Meeting held at 1:00 p.m. on February 23, 2009
Meeting notice and information

Notice of Hearing | Initial Statement of Reasons | Proposed Text for Sections 24451