California Attorney General Xavier Becerra and Assembly Member Mark Stone introduced legislation to strengthen protections for consumers under the state’s False Claims Act.
The proposed AB 2570 authorizes the Attorney General and other prosecuting officials to conduct an investigation into the possible filing of false claims, records, or statements under the Revenue and Taxation Code.
Additionally, the proposed legislation gives authority to the Attorney General and other prosecuting officials to recover public funds that were lost due to tax fraud or misrepresentations.
Over the past decade, California’s annual estimated tax gap, the difference between total taxes owed and total taxes paid on time, has been increasing. The state’s estimated tax gap is $20 billion.
Providing more legal tools to protect California programs and services
AG Becerra and Assembly Member Stone believe that AB 2570 will help prevent fraud and false claims, thus protecting California taxpayers and communities from harm. Every time fraud or a false claim is committed against the government, communities lose funding necessary to support vital public services.