(a) A responsible individual shall reconcile premium assistance subsidies advanced pursuant to subdivision (a) of Section 100805 to the responsible individual or the responsible individual’s dependents with the premium assistance subsidies allowed based on actual household income, family size, and other factors determined pursuant to the program design for a coverage year during which the responsible individual or the responsible individual’s dependents received an advanced premium assistance subsidy, as follows:

(1) If a program participant’s allowed premium assistance subsidies for the taxable year exceed the program participant’s advanced premium assistance subsidies, the program participant may receive the excess as a premium assistance subsidy reconciliation refund. The Franchise Tax Board shall remit the refund to the program participant, less any taxes, fees, and penalties the program participant owes to the state. If a program participant is a dependent, the Franchise Tax Board shall remit the refund to the responsible individual, less any taxes, fees, and penalties the responsible individual or program participant owes to the state.

(2) If a program participant’s advanced premium assistance subsidies for the taxable year exceed the program participant’s allowed premium assistance subsidies, the program participant shall have a liability in the amount equal to the excess of the advanced premium assistance subsidies over the program participant’s allowed premium assistance subsidies as a reconciliation liability, up to a limit specified by the program design. The program design may vary that limit based on household income.

(3) The responsible individual shall reconcile premium assistance subsidies in accordance with this section, and shall include the liability imposed by this section or the premium assistance subsidy reconciliation refund on a return filed pursuant to Chapter 2 (commencing with Section 18501) of Part 10.2 of the Revenue and Taxation Code for the taxable year.

(4) If a program participant with a liability imposed by this section is a dependent, the responsible individual shall be solely liable for that liability of the dependent.

(5) If a responsible individual with a liability imposed by this section files a joint return for the taxable year, the responsible individual and the spouse or domestic partner of the responsible individual shall be jointly and severally liable for that liability.

(6) Notwithstanding the return filing thresholds requirements in Chapter 2 (commencing with Section 18501) of Part 10.2 of the Revenue and Taxation Code, a responsible individual shall file a California income tax return with the Franchise Tax Board for the purpose of reconciliation as required under this section.

(b) The Franchise Tax Board’s civil authority and procedures for purposes of compliance with notice and other due process requirements imposed by law to collect income taxes shall be applicable to the collection of the premium assistance subsidy reconciliation liability due pursuant to subdivision (a). The amount due shall be paid upon notice and demand by the Franchise Tax Board and shall be assessed and collected pursuant to Part 10.2 (commencing with Section 18401) of the Revenue and Taxation Code.

(c) The Franchise Tax Board shall integrate enforcement of the liability imposed pursuant to subdivision (a) into existing activities, protocols, and procedures, including audits, enforcement actions, and taxpayer education efforts.

(Added by Stats. 2019, Ch. 38, Sec. 11. (SB 78) Effective June 27, 2019. Repealed as of January 1, 2023, pursuant to Section 100825.)