2005 California Revenue and Taxation Code Sections 12601-12602 Article 1. Generally

12601.  Amounts of taxes, interest and penalties not remitted to the
commissioner with the original return of the insurer shall be
payable to the Controller.
12602.  (a) On and after January 1, 1994, and before January 1,
1995, each insurer whose annual taxes exceed fifty thousand dollars
($50,000) shall make payment by electronic funds transfer, as defined
by Section 45 of the Insurance Code.  On and after January 1, 1995,
each insurer whose annual taxes exceed twenty thousand dollars
($20,000) shall make payment by electronic funds transfer.  The
insurer shall choose one of the acceptable methods described in
Section 45 of the Insurance Code for completing the electronic funds
transfer.
   (b) Payment is deemed complete on the date the electronic funds
transfer is initiated, if settlement to the state's demand account
occurs on or before the banking day following the date the transfer
is initiated.  If settlement to the state's demand account does not
occur on or before the banking day following the date the transfer is
initiated, payment is deemed to occur on the date settlement occurs.
   (c) (1) Any insurer required to remit taxes by electronic funds
transfer pursuant to this section who remits those taxes by means
other than an appropriate electronic funds transfer, shall be
assessed a penalty in an amount equal to 10 percent of the taxes due
at the time of the payment.
   (2) If the Department of Insurance finds that an insurer's failure
to make payment by an appropriate electronic funds transfer in
accordance with subdivision (a) is due to reasonable cause or
circumstances beyond the insurer's control, and occurred
notwithstanding the exercise of ordinary care and in the absence of
willful neglect, that insurer shall be relieved of the penalty
provided in paragraph (1).
   (3) Any insurer seeking to be relieved of the penalty provided in
paragraph (1) shall file with the Department of Insurance a statement
under penalty of perjury setting forth the facts upon which the
claim for relief is based.