Business News
SACRAMENTO – California Attorney General Xavier Becerra on Monday unveiled legislation to combat California’s growing underground economy.
Senate Bill 1272 would permanently establish the Tax Recovery and Criminal Enforcement (TRaCE) Task Force within the California Department of Justice, and expand the program with permanent Task Force teams in every major metropolitan region across the State: Sacramento, Los Angeles, San Diego, the Bay Area, and Fresno.
The bill is sponsored by Attorney General Becerra and was introduced by Senator Cathleen Galgiani, along with Senate President pro Tem Toni Atkins and Assemblymember Joaquin Arambula.
The legislation aims to ensure multi-agency collaboration between several governmental entities, including the California Department of Justice, Department of Tax and Fee Administration, Franchise Tax Board, and Employment Development Department, to combat wage theft, tax evasion and other crimes in the underground economy.
“Here in California, home to the world’s sixth-largest economy, every worker who powers this engine deserves rights at work, every upstanding business owner deserves a fair market, and every taxpayer deserves to see their hard-earned money used to fund vital services,” said Attorney General Becerra. “If you work hard and play by the rules, you should be able to get ahead. This legislation would provide the resources needed to enforce the law and protect the pocketbook of every hard working Californian.”
“The underground economy results in significant uncollected revenues that are desperately needed to fund basic government services. The TRaCE Task Force, operating as a pilot program, has recovered millions of dollars in lost tax revenue for the state. I’d like to thank the agents for their rigorous work investigating and prosecuting the most egregious felony-level underground economic crimes in the state," said Sen. Galgiani. "Given the persistent and significant negative effects of the underground economy, I introduced SB 1272, sponsored by Attorney General Becerra, to strengthen the statewide efforts to combat the underground economy by permanently establishing this vital program with law enforcement teams in every major metropolitan region in the state. "
According to a 2013 University of California Los Angeles Labor Center report, the state’s underground economy is estimated at $60 to $140 billion annually, depriving the state of $8.5 billion in corporate, personal, and sales and use taxes each year.
TRaCE’s pilot program, created in 2014, provided for interagency collaboration, and the agencies together set out to investigate and prosecute the most outrageous felony-level multijurisdictional underground economic crimes in California.
Since its start, TRaCE’s teams have identified more than $210 million in unreported gross receipts and $46 million in associated tax loss to the state. Additionally, through its criminal enforcement actions, the pilot program recovered millions of dollars in lost tax revenue for the state.
The proposed legislation would provide significant support to the TRaCE Task Force, enabling the California Department of Justice, together with its state partners, to combat the wage theft, risks to public health and safety, and tax losses in the underground economy.
Senate Bill 1272 would permanently establish the Tax Recovery and Criminal Enforcement (TRaCE) Task Force within the California Department of Justice, and expand the program with permanent Task Force teams in every major metropolitan region across the State: Sacramento, Los Angeles, San Diego, the Bay Area, and Fresno.
The bill is sponsored by Attorney General Becerra and was introduced by Senator Cathleen Galgiani, along with Senate President pro Tem Toni Atkins and Assemblymember Joaquin Arambula.
The legislation aims to ensure multi-agency collaboration between several governmental entities, including the California Department of Justice, Department of Tax and Fee Administration, Franchise Tax Board, and Employment Development Department, to combat wage theft, tax evasion and other crimes in the underground economy.
“Here in California, home to the world’s sixth-largest economy, every worker who powers this engine deserves rights at work, every upstanding business owner deserves a fair market, and every taxpayer deserves to see their hard-earned money used to fund vital services,” said Attorney General Becerra. “If you work hard and play by the rules, you should be able to get ahead. This legislation would provide the resources needed to enforce the law and protect the pocketbook of every hard working Californian.”
“The underground economy results in significant uncollected revenues that are desperately needed to fund basic government services. The TRaCE Task Force, operating as a pilot program, has recovered millions of dollars in lost tax revenue for the state. I’d like to thank the agents for their rigorous work investigating and prosecuting the most egregious felony-level underground economic crimes in the state," said Sen. Galgiani. "Given the persistent and significant negative effects of the underground economy, I introduced SB 1272, sponsored by Attorney General Becerra, to strengthen the statewide efforts to combat the underground economy by permanently establishing this vital program with law enforcement teams in every major metropolitan region in the state. "
According to a 2013 University of California Los Angeles Labor Center report, the state’s underground economy is estimated at $60 to $140 billion annually, depriving the state of $8.5 billion in corporate, personal, and sales and use taxes each year.
TRaCE’s pilot program, created in 2014, provided for interagency collaboration, and the agencies together set out to investigate and prosecute the most outrageous felony-level multijurisdictional underground economic crimes in California.
Since its start, TRaCE’s teams have identified more than $210 million in unreported gross receipts and $46 million in associated tax loss to the state. Additionally, through its criminal enforcement actions, the pilot program recovered millions of dollars in lost tax revenue for the state.
The proposed legislation would provide significant support to the TRaCE Task Force, enabling the California Department of Justice, together with its state partners, to combat the wage theft, risks to public health and safety, and tax losses in the underground economy.
- Details
- Written by: California Attorney General's Office
LOS ANGELES, Calif. – Insurance Commissioner Dave Jones on Monday announced that insurers have received more than 2,000 insurance claims totaling more than $421 million in losses from the deadly Montecito mudslide that roared through the community carrying tons of mud and debris destroying or damaging more than 400 homes and businesses, and tragically killing 21 people.
"Over $421 million in insured losses represents more than property lost-behind these numbers are the tragic deaths of 21 people and thousands of residents traumatized by unfathomable loss," said Insurance Commissioner Dave Jones. "Recovering and rebuilding lives, homes and neighborhoods will take time-and it will be difficult. We will continue to do all we can at the Department of Insurance to help residents navigate the claims process and recover."
Commissioner Jones took extraordinary actions under his authority to protect survivors and make sure insurers deliver on their promises to policyholders.
One of Jones' actions included issuing a formal notice to all property and casualty insurance companies reminding them of their duty to cover damages from the recent mudslides and debris flows if it is determined that the destruction of the hillsides and vegetation by the Thomas and other fires was the efficient proximate cause of the mudslides.
Jones also stated in his notice that there is substantial evidence that the fires were the efficient proximate cause of the mudslides.
As a result of Commissioner Jones' notice, he said insurers have been recognizing the efficient proximate doctrine and have been processing and paying mudslide claims under homeowner policies.
The department issued a questionnaire in which all the insurers stated that they are recognizing the proximate cause doctrine. The department has not received reports of any denials of these claims due to exclusion for mudslides.
Commissioner Jones visited the residences impacted by the mudslides and met with survivors where he heard first-hand their frightening stories of loss. Jones also held an Insurance Claim Workshop in Santa Barbara for survivors to ensure they are aware of the resources available during the rebuilding and recovery process.
Residents had the opportunity to meet one-on-one with department representatives to address specific insurance needs.
Jones also deployed department staff to assist affected consumers at town halls meetings and local assistance and disaster centers in Santa Barbara.
The department is encouraging residents and business owners in Santa Barbara and Montecito areas affected by the recent disasters, to file a claim with their insurance company. If consumers have issues navigating the claims process, or they think their claim was wrongfully denied they are encouraged to contact the Department of Insurance, 800-927-4357 or online at www.insurance.ca.gov for assistance.
"Over $421 million in insured losses represents more than property lost-behind these numbers are the tragic deaths of 21 people and thousands of residents traumatized by unfathomable loss," said Insurance Commissioner Dave Jones. "Recovering and rebuilding lives, homes and neighborhoods will take time-and it will be difficult. We will continue to do all we can at the Department of Insurance to help residents navigate the claims process and recover."
Commissioner Jones took extraordinary actions under his authority to protect survivors and make sure insurers deliver on their promises to policyholders.
One of Jones' actions included issuing a formal notice to all property and casualty insurance companies reminding them of their duty to cover damages from the recent mudslides and debris flows if it is determined that the destruction of the hillsides and vegetation by the Thomas and other fires was the efficient proximate cause of the mudslides.
Jones also stated in his notice that there is substantial evidence that the fires were the efficient proximate cause of the mudslides.
As a result of Commissioner Jones' notice, he said insurers have been recognizing the efficient proximate doctrine and have been processing and paying mudslide claims under homeowner policies.
The department issued a questionnaire in which all the insurers stated that they are recognizing the proximate cause doctrine. The department has not received reports of any denials of these claims due to exclusion for mudslides.
Commissioner Jones visited the residences impacted by the mudslides and met with survivors where he heard first-hand their frightening stories of loss. Jones also held an Insurance Claim Workshop in Santa Barbara for survivors to ensure they are aware of the resources available during the rebuilding and recovery process.
Residents had the opportunity to meet one-on-one with department representatives to address specific insurance needs.
Jones also deployed department staff to assist affected consumers at town halls meetings and local assistance and disaster centers in Santa Barbara.
The department is encouraging residents and business owners in Santa Barbara and Montecito areas affected by the recent disasters, to file a claim with their insurance company. If consumers have issues navigating the claims process, or they think their claim was wrongfully denied they are encouraged to contact the Department of Insurance, 800-927-4357 or online at www.insurance.ca.gov for assistance.
- Details
- Written by: California Department of Insurance
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