Report 2019-046 Recommendation 5 Responses

Report 2019-046: Proposition 56 Tobacco Tax: State Agencies' Weak Administration Reduced Revenue by Millions of Dollars and Led to the Improper Use and Inadequate Disclosure of Funds (Release Date: January 2021)

Recommendation #5 To: Tax and Fee Administration, California Department of

To provide the public with relevant information and ensure the level of accountability that state law intends, each state entity that receives Proposition 56 funds should publish the following information on its website by April 2021 for fiscal years 2017-18 through 2019-20, and within six months of the end of each fiscal year, beginning with fiscal year 2020-21:

The amount of Proposition 56 funds received by each program it administers.
The amount of Proposition 56 funds spent by each program it administers.
The amount of Proposition 56 funds obligated for future expenditures by each program it administers.
Any corrections to the information it reported in previous fiscal years.

1-Year Agency Response

The CDTFA has published the amount of Proposition 56 funds received and spent for fiscal year 2020-21 on its webpage at www.cdtfa.ca.gov/taxes-andfees/prop-56-summary-rev-and-exp.htm.

California State Auditor's Assessment of 1-Year Status: Fully Implemented

The CDTFA' s Proposition 56 webpage describes the amounts that it asserts it received and spent. The correct link to that page is: https://www.cdtfa.ca.gov/taxes-and-fees/prop-56-summary-rev-and-exp.htm

6-Month Agency Response

The CDTFA will post on its website www.cdtfa.ca.gov/taxes-and-fees/prop-56-summary-rev-and-exp.htm the amount of Proposition 56 funds received, spent, and any corrections to previous fiscal year amounts within 6 months of the end of each fiscal year, beginning with fiscal year 2020-21.

California State Auditor's Assessment of 6-Month Status: Partially Implemented

We look forward to reviewing CDTFA's publication of fiscal year 2020-21 information.

60-Day Agency Response

While the CDTFA believes it has fulfilled the disclosure requirement of publishing Proposition 56 fund information in its Annual Report and more detailed fund information in its data portal, as required pursuant to Revenue and Taxation Code section 30130.56(c), the CDTFA has further published the amount of Proposition 56 funds received and spent for fiscal years 2017-18 through 2019-20 on its webpage at www.cdtfa.ca.gov/taxes-and-fees/prop-56-summary-rev-and-exp.htm. The CDTFA will post on its website the amount of Proposition 56 funds received, spent, and any corrections to previous fiscal year amounts within 6 months of the end of each fiscal year, beginning with fiscal year 2020-21.

California State Auditor's Assessment of 60-Day Status: Partially Implemented

We will review CDTFA's publication of fiscal year 2020-21 information to verify that it publishes the information within 6 months of the end of the fiscal year.

All Recommendations in 2019-046

Agency responses received are posted verbatim.