California Code of Regulations
Title 10 - Investment
Chapter 5 - Insurance Commissioner
Subchapter 3 - Insurers
Article 6.5 - Guidelines for Waiver of Penalty for Non-Use of Electronic Funds Transfer or for Non-Timely Payment of Taxes
Section 2330.1 - Electronic Funds Transfer Penalties

Insurers and surplus line brokers (hereafter, "taxpayers") are required to make payment by Electronic Funds Transfer ("EFT") if their annual taxes exceed twenty thousand dollars ($20,000). If they make payment by some method other than EFT or the payment is not timely, they will be assessed a ten percent penalty plus interest on the amount due unless the penalty is waived as set forth under Sections 2330.3 and 2330.4. If taxpayers make payment by some method other than EFT and the payment is not timely, taxpayers will be assessed a twenty percent penalty plus interest on the amount due unless the penalty is waived as set forth under Sections 2330.3 and 2330.4.

1. New article 6.5 (sections 2330.1-2330.5) and section filed 7-21-2008; operative 8-20-2008 (Register 2008, No. 30).
2. Change without regulatory effect amending section filed 9-11-2008 pursuant to section 100, title 1, California Code of Regulations (Register 2008, No. 37).

Note: Authority cited: Sections 1775.4(e), 1775.5(b), 1775.8 and 12976.5(a), Insurance Code; and Sections 12602(c)(1), 12631 and 12636, Revenue and Taxation Code. Reference: Sections 45, 1775.4, 1775.5, 1775.8 and 12976.5, Insurance Code; and Sections 12602 and 12631, Revenue and Taxation Code.