AB 2038 Summary

• Permits state licensing entities to suspend, revoke, or refuse to issue professional or occupational licenses for applicants or licensees who have failed to pay state income taxes, effective January 1, 2012 through January 1, 2016.

• Requires state licensing entities to collect social security numbers or federal taxpayer identification numbers from licensees and provide this information to the Franchise Tax Board for tax compliance matching.

• Establishes procedures for the Franchise Tax Board to send preliminary suspension notices to delinquent taxpayers with at least 60 days to pay taxes or enter into installment payment agreements before automatic license suspension.

• Allows licensees to request administrative hearings to demonstrate financial hardship and defer or cancel license suspensions, with the hearing process serving as the sole administrative remedy for contesting suspensions.

• Makes unauthorized disclosure of tax information by licensing entities a misdemeanor and prohibits state agencies from reporting these suspensions to the National Practitioners Data Bank.