1. The Legislature of the State of California finds that various tax collection agencies such as the California Franchise Tax Board have been using unconscionable tactics such as inventing false incomes for taxpayers and thereupon making assessments and using threats, force, and fear to collect those assessments and thereafter relying on statutes of limitations to avoid refunding those amounts, and enacts this California Taxpayer Trust Funds Act:

2. No taxpayer deposits shall be confiscated by any California taxing agency because of the running of any statute of limitations until after notice and opportunity to be heard is granted to the taxpayer.

3. Any such notice shall be accompanied by complete claim forms and instructions written in a manner no more complex than an eighth grade level.

4. Opportunity to be heard shall be by public hearing held at a place and time convenient to the taxpayer, and shall be held in such a manner as to favor the taxpayer.

5. Any reasonable doubt as to the entitlement of the taxing agency to the funds shall be resolved by prompt full refund to the taxpayer.

6. The application of this act shall be retroactive to January 1, 2000.

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