State Sovereignty & Federal Tax Fund Act  

THE PEOPLE OF THE STATE OF __________ DO ENACT AS FOLLOWS:  

                            SECTION  1.  Chapter 2 (commencing with Section 16357) is added to Part 15 of  Division 4 of Title 2 of the Government Code, to read:  

          Article 1.3.   State Sovereignty and Federal Tax Funds  

                      16357.  This Act will be known and will be cited as the State Sovereignty and Federal Tax Funds Act.  

                      16357.1  The Legislature finds and declares, as follows:  

                          (a)  The Tenth Amendment to the United States Constitution states that "The powers not delegated to the United States by the Constitution, or prohibited by it to the States, are reserved to the States respectively, or to the people."  The Legislature finds that the Tenth Amendment to the United States Constitution defines the total scope of federal power as being that specifically stated in the United States Constitution and no more. 

                          (b)  The Legislature further finds that the Congress of the United States has the power to lay and collect taxes pursuant only to Article 1, Section 8, clause 1 and Article 1, Section 9, clauses 4 and 5, and Article XVI of the Constitution for the United States of America.  

                          (c)  In addition, the Legislature finds that the federal government, its agencies or agents, or the U.S. Congress does not have the power under the Constitution for the United States of America to withhold from the States the benefits of those taxes by use of federal mandates that are outside the scope of the powers enumerated in the Constitution for the United States of America for the federal government.  

                          (d)  In light of the continuing unconstitutional federal mandates that withhold the benefits of the taxes, the State hereby reasserts its claim of sovereignty pursuant to the Tenth Amendment to the Constitution for the United States of America.  

                      (16357.2) For purposes of this Act, the following terms have the following meanings:  

                          (a)  "Person" means natural persons, corporations, partnerships, limited liability companies, associations, and other legal entities.  

                          (b)  "Excise tax" means any tax that forms a component of the State Highway Account  

                          (c)  "Income tax" means any tax imposed by the federal government on incomes, from whatever source derived.  

                          (d)  "Consumer tax" means any tax imposed by the federal government on any beer, liquor, wine or similar alcoholic beverage, tobacco, gasoline, or any other consumer goods.  

                          (e)  "Federal Tax Fund" means the escrow account called the Federal Tax Fund created by the ______ State Legislature to hold all federal tax moneys.  

                          (f)  "Fund" means the State of _________'s General Fund 

                      16357.3   (a) The Federal Tax Fund is hereby created in the State Treasury.  All federal tax moneys collected by the State on behalf of the federal government, must be deposited by the Treasurer of State in this Federal Tax Fund. 

                          (b)  The Treasurer of State, on a quarterly basis, shall disburse the funds to the respective appropriate federal recipient(s). However if, as a result of State action taken by authority of this Act, pursuant to subdivision (b) of section 16357.6, the federal government imposes or mandates any financial sanctions, denies any matching funds or grants, or imposes or mandates any other financial sanctions, penalties, or withholding of funds or any other federal sanctions or penalties effecting a financial cost to the State, the Treasurer of State must withhold from payment all or part of the quarterly disbursement normally disbursed or transferred to federal recipients(s), per occurrence, in an amount equal to the total cumulative outstanding amount of federal sanctions, denial of any matching funds, or denial of grants or any other financial sanctions, penalties, or withholding of funds.  The Treasurer of State must continue to withhold all or part of the quarterly disbursement otherwise disbursed or transferred to the respective appropriate federal recipient(s) until the total cumulative amount withheld from the federal government is equal to the total cumulative outstanding amount of federal sanctions, denial of any matching funds, or denial of grants, or any other financial sanctions, penalties, or withholding of funds.  

                           (c)  Funds that the Treasurer of State withholds from federal recipients must be transferred quarterly from the Federal Tax Fund and deposited into the General Fund account of the State for general use. 

                      16357.4  (a)  Any person liable for any federal excise, income, or consumer tax shall remit the tax, when due, along with the federal taxpayer number to the Treasurer of State for deposit into the Federal Tax Fund.    

                           (b)  All moneys collected pursuant to subsections (a) of this section shall be transmitted to the Treasurer of State who, as a fiduciary agent, will credit the same to the Federal Tax Fund on behalf of the persons that remitted the tax.  

                           (c)  The Treasurer of State shall submit to the Internal Revenue Service the names and tax identification numbers of, and the amounts deposited by, persons liable for any federal excise, income, or consumer tax so that the Internal Revenue Service can credit the State's taxpayers for federal tax obligations.  

                      16357.5  Any person liable for any federal excise, income, or consumer tax who fails to forward federal tax moneys to the Treasurer of State will be subject to penalties assessed pursuant to applicable federal and/or State statutes.

 

                      16357.6  (a) Except as provided in Section 16357.3, the Treasurer of State will transfer, at the end of each quarter, the moneys held in the fund, less any interest earned on the deposit, to the respective appropriate federal recipient(s) in payment of the tax obligation of those persons who remitted the tax to the Treasurer of State.

                            (b)  If the federal government imposes sanctions of any kind on the State for failing to enact legislation called for by federal mandate, a vote will be taken in the Legislature as to the constitutionality of such sanctions.  By a simple majority vote in each house of the Legislature, if the federal government is found to be operating beyond the scope of its Constitutionally delegated powers and, therefore, unconstitutionally, the treasurer of State is to be notified in writing by the State Attorney General of the Legislature's vote, with instructions from the legislature, to carry out the procedure specified in Section 16357.3 (b).  

                            (c)  Per occurrence, when the State has been legally notified in writing by the federal government that it has lifted any sanction(s) outlined in Section 16357.3(b), then, pursuant to 16357.6 (a), the Treasurer of State shall resume disbursement of funds to the respective appropriate federal recipient(s) at the end of the next upcoming quarter.  

                     16357.7  The Governor, members of the Legislature, members of the judiciary, the State Attorney General, the Secretary of State, the Treasurer of State, the State Auditor, commissioners of the Executive Branch departments, directors, bureau directors, supervisors and employees of the State will implement the provisions of this Act regardless of any sanctions, threats, court action or other pressure brought to bear by federal authorities.   

                      16357.8.  If the federal government imposes any sanctions on the State while the Legislature is not in session, the Governor will call the Legislature into special session for the purpose of implementing Section 16357.6(b).  

                      16357.9.  Any actions by the federal government, its agencies or agents, or the Congress against any person in this State for compliance with this Act will be considered an action against this State and this State will make an appropriate response to cause the action to cease and desist.  This State will take all necessary measures to recover from the federal government, its agencies or agents, or the Congress the reasonable costs of defending the action.  

                     16357.10.  The Act will apply to federal taxes collected after the date on which this Act takes effect and, because the Constitution for the United States of America is, and has always been the supreme law of the land, this Act will be enforced retroactively to repeal any unconstitutional federal mandates that have been imposed on the State of _________.  

                     16357.11   (a)  The Legislature hereby finds and declares than any funds deposited into the Federal Tax Fund and then into the General Fund pursuant to this Act, are special funds and do not have a net fiscal impact upon the amounts of revenue otherwise required to be applied by the State for the support of school districts and community college districts pursuant to Article ___, Section __ of the ______ Constitution.

 

                            (b)  The Legislature of the State of ______, by simple majority vote in both houses, will determine how the moneys transferred from the Federal Tax Fund to the State's General Fund, including accrued interest, are to be used for the benefit of the people of the State of _____.  These moneys must be used for the benefit of the people of ______only.    

                           SEC. 2.  This Act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article ___ of the ______ Constitution and shall go into immediate effect. The facts constituting the necessity are:  

                           In order to enable the residents of this State to retain the benefits from tax funds derived from the people of this State, it is necessary that this Act take effect immediately

by Jackie