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HomeGovernment CodeDiv. 3Pt. 2Ch. 5Art. 2.5§ 12435 Controller Debt Write-Off Criteria

§ 12435 Controller Debt Write-Off Criteria

Government Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 12435 Controller Debt Write-Off Criteria

Key Takeaways

  • •The Controller checks applications to see if they are correct and if the debt can be collected.
  • •If the debt can't be collected or it's too expensive to collect, the Controller can say it's okay to stop trying.
  • •For big debts, the Attorney General must say in writing that collecting the debt is too hard or not worth it.

Example

A small business owes the government $500, but they went out of business and have no money left.

The Controller checks and sees the business really has no money. They decide it's not worth trying to collect the $500 because the business is gone and there's no way to get the money back.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 12435 Controller Debt Write-Off Criteria

The Controller shall audit the applications. The Controller shall discharge the applicant from further accountability for collection and authorize the applicant to close its book on that item if the Controller determines the following: (a) The matters contained in the application are correct. (b) No credit exists against which the debt can be offset. (c) Collection is improbable for any reason. (d) The cost of recovery does not justify the collection. (e) For items that exceed the monetary jurisdiction of the small claims court, the Attorney General has advised, in writing, that collection is not justified by the cost or is improbable for any reason. (Added by renumbering Section 13942 by Stats. 2016, Ch. 31, Sec. 112. (SB 836) Effective June 27, 2016.)

Last verified: January 22, 2026

Key Terms

ControllerauditdischargecollectionAttorney General

Related Statutes

  • § 12434 Discharge Application Requirements
  • § 12410 State Fiscal Audit Authority
  • § 12433 Uncollectible Debt Discharge
  • § 12436 Small Account Discharge Authority
  • § 12437 Tax Liability Discharge

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Government Code. Section 12435.
View Official Source