BILL NUMBER: AB 50	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Hill

                        DECEMBER 6, 2010

   An act to add Sections 17131.3 and 18154 to the Revenue and
Taxation Code, relating to taxation, to take effect immediately, tax
levy.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 50, as introduced, Hill. Income taxes: gross income: exclusion:
capital gains: exclusion: San Bruno gas explosion.
   The Personal Income Tax Law defines gross income as all income
from whatever source derived, unless specifically excluded.
   This bill would exclude from the computation of gross income any
compensation provided by the Pacific Gas and Electric Company to a
victim of the natural gas transmission line explosion on September 9,
2010, as provided.
   The Personal Income Tax Law provides for a gain or loss upon the
disposition of property.
   This bill would exclude from the computation of gross income any
gain from the compulsory or involuntary conversion of property as a
result of the natural gas transmission line explosion on September 9,
2010, in San Bruno, California, as provided.
   This bill would take effect immediately as a tax levy.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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

  SECTION 1.  Section 17131.3 is added to the Revenue and Taxation
Code, to read:
   17131.3.  (a) Notwithstanding any other law to the contrary, for
purposes of this part the natural gas transmission line explosion on
September 9, 2010, in San Bruno, California shall be treated as a
qualified disaster under Section 17131, within the meaning of Section
139 of the Internal Revenue Code, and any compensation provided by
Pacific Gas and Electric Company to a victim of this disaster shall
be treaded as a qualified disaster relief payment under Section
17131, within the meaning of Section 139 of the Internal Revenue
Code.
   (b) This section shall apply to any compensation received on or
after September 9, 2010.
  SEC. 2.  Section 18154 is added to the Revenue and Taxation Code,
to read:
   18154.  Notwithstanding any other law to the contrary, gross
income shall not include any gain from the compulsory or involuntary
conversion of property as a result of its destruction, in whole or in
part, by the natural gas transmission line explosion on September 9,
2010, in San Bruno, California.
  SEC. 3.  This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.