NewsAG Becerra Supports Legislation Amending False Claims Act
On Thursday, February 20th, during a press conference, Assemblymember Mark Stone (D- Scotts Valley) introduced AB 2570 that seeks to amend the California False Claims Act (CFCA). The bill seeks to expand the CFCA authority to allow the attorney general and other prosecuting agencies to investigate and prosecute fraudulent claims filed under the revenue and taxation code are suspected to exceed $200,000. According to the Attorney General, the bill will help fight corporate tax fraud and recover crucial funding lost each year by false claims. Currently, claims filed under the revenue and taxation code are subject to the authority of the Franchise Tax Board and California Department of Tax and Fee Administration to investigate and impose penalties on fraudulent tax claims. Joining Becerra and Stone at the press conference in announcing support for the bill was SEIU’s Terry Brennand.
Opponents of the bill include the California Taxpayers Association. "This legislation is completely unnecessary since California already has very strong anti-fraud laws, huge penalties and tax agencies known for their aggressive pursuit of anyone who attempts to evade taxes,” President Robert Gutierrez said in a statement. The bill is the second of its kind as Assemblymember Stone introduced a similar bill AB 1270 last year that was held in suspense in the Senate Appropriations Committee.
For more information, please see https://oag.ca.gov/news/press-releases/attorney-general-becerra-and-assemblymember-stone-advance-legislation-strengthen.