BILL NUMBER: AB 243	CHAPTERED  09/22/03

	CHAPTER  428
	FILED WITH SECRETARY OF STATE  SEPTEMBER 22, 2003
	APPROVED BY GOVERNOR  SEPTEMBER 20, 2003
	PASSED THE SENATE  SEPTEMBER 3, 2003
	PASSED THE ASSEMBLY  MAY 29, 2003

INTRODUCED BY   Assembly Member Vargas

                        FEBRUARY 3, 2003

   An act to amend Section 19827.5 of the Government Code, relating
to state employees, to take effect immediately, tax levy.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 243, Vargas.  State chaplains:  salary:  rental allowance.
   The Personal Income Tax Law allows an exemption from taxation for
the amount of the rental value of a minister's dwelling in specified
conformity with federal income tax laws, including the requirement
that the exemption may be allowed only if the amount is designated as
rental allowance prior to payment by the employer.  Existing law
allocates from the state salary or wage paid to a minister of the
gospel in an amount up to 25% of the gross salary, either the rental
value of a home furnished to the minister or the rental allowance
paid to the minister to rent or provide a home.
   This bill would increase the percentage of this allocation to 50%,
thereby affecting the amount of the tax exemption that may be
claimed.  It would also delete an obsolete reference and make other
conforming changes.
   This bill would take effect immediately as a tax levy.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 19827.5 of the Government Code is amended to
read:
   19827.5.  (a) There is allocated from the salary or wage paid to a
member of the clergy, in an amount up to 50 percent of the gross
salary, either of the following:
   (1) The rental value of a home furnished to him or her.
   (2) The rental allowance paid to him or her to rent or provide a
home.
   (b) As used in this section, a "member of the clergy" means a
priest, minister, religious practitioner, or similar functionary of a
religious denomination or religious organization.
  SEC. 2.  This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.