ARTICLE 2.5. Discharge of State Entity from Duty to Collect [12433. - 12439.]

Cal. Government Code - GOV 2.5.

in effect

Cal. Government Code - GOV § 12433. Section 12433.

Any state agency or employee required to collect any state taxes, licenses, fees, or money owing to the state for any reason that is due and payable may be discharged by the Controller from accountability for the collection of the taxes, licenses, fees, or money if the debt is uncollectible or the amount of the debt does not justify the cost of its collection.

Cal. Government Code - GOV § 12434. Section 12434.

The application for a discharge under this article shall be filed with the Controller and include the following: (a) A statement of the nature and amount of the tax, license, fee, or other money due. (b) The names of the persons liable. (c) The estimated cost of collection. (d) All other facts warranting the discharge, unless the Controller determines that the circumstances do not warrant the furnishing of detailed information.

Cal. Government Code - GOV § 12435. Section 12435.

The Controller shall audit the applications. The Controller shall discharge the applicant from further accountability for collection and authorize the applicant to close its book on that item if the Controller determines the following: (a) The matters contained in the application are correct. (b) No credit exists against which the debt can be offset. (c) Collection is improbable for any reason. (d) The cost of recovery does not justify the collection. (e) For items that exceed the monetary jurisdiction of the small claims court, the Attorney General has advised, in writing, that collection is not justified by the cost or is improbable for any reason.

Cal. Government Code - GOV § 12436. Section 12436.

The Controller may discharge from accountability a state agency for accounts that do not exceed the amount specified in subdivision (e) of Section 12435 and thereby authorize the closing of the agency’s books in regard to that item.

Cal. Government Code - GOV § 12437. Section 12437.

(a) Except as provided in subdivision (b), a discharge granted pursuant to this article to a state agency or employee does not release any person from the payment of any tax, license, fee, or other money that is due and owing to the state. (b) A discharge granted pursuant to this article to the Franchise Tax Board shall release a person from a liability for the payment of any tax, fee, or other liability deemed uncollectible that is due and owing to the state and extinguish that liability, if at least one of the following conditions is met: (1) The liability is for an amount less than five hundred dollars ($500). (2) The liable person has been deceased for more than four years and there is no active probate with respect to that person. (3) The Franchise Tax Board has determined that the liable person has a permanent financial hardship. (4) The liability has been unpaid for more than 30 years.

Cal. Government Code - GOV § 12438. Section 12438.

A state agency is not required to collect taxes, licenses, fees, or money owing to the state for any reason if the amount to be collected is five hundred dollars ($500) or less. Nothing contained in this section shall be construed as releasing any person from the payment of any money due the state.

Cal. Government Code - GOV § 12438.1. Section 12438.1.

Notwithstanding any other provision of this article, the Controller may discharge the Department of Water Resources from accountability for collection of the loan issued to the Arrowhead Manor Water Company in 1980 under the California Safe Drinking Water Bond Law of 1976, but only if San Bernardino County or its county service area acquires the water system financed by the loan issued to the Arrowhead Manor Water Company and pays the amount of nine hundred ten thousand five hundred twenty dollars ($910,520) in complete satisfaction of that loan, on or before January 30, 2009.

Cal. Government Code - GOV § 12439. Section 12439.

(a) The Controller may investigate, inquire, and, if necessary, conduct hearings concerning property in the possession of the Treasurer which has escheated to the state from the estates of deceased persons pursuant to a judgment of escheat or pursuant to a distribution to the state under Section 11900 of the Probate Code. (b) After investigation, inquiry, and hearing, the Controller may relieve the Treasurer from any liability arising from the possession of and sell, or authorize the Treasurer to destroy or otherwise dispose of, any such property as it deems proper.

Source: CA Legislative Counsel Bulk DataURL: https://downloads.leginfo.legislature.ca.gov/pubinfo_2025.zipFetched: 6/27/2026