BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      



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          |SENATE RULES COMMITTEE            |                  AB 1428|
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                                 THIRD READING


          Bill No:  AB 1428
          Author:   Chesbro (D)
          Amended:  5/24/11 in Assembly
          Vote:     27 - Urgency

           
           SENATE GOVERNANCE & FINANCE COMMITTEE  : 9-0, 06/29/11
          AYES: Wolk, Huff, DeSaulnier, Fuller, Hancock, Hernandez, 
            Kehoe, La Malfa, Liu

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8

           ASSEMBLY FLOOR  : 76-0, 06/01/11 - See last page for vote


           SUBJECT  :    Disaster relief:  tsunami

           SOURCE  :     Author


           DIGEST  :    This bill applies excess disaster loss treatment 
          to victims in Mendocino County of the March 2011 tsunami.  
          Taxpayers can carry forward 100 percent of losses for 15 
          years, and claim losses on amended returns.

           ANALYSIS  :    Federal law, which California conforms to, 
          only allows disaster loss deductions for personal income 
          taxes that exceed $100 per taxpayer and 10 percent of their 
          adjusted gross income for the year.  Current state and 
          federal allows taxpayers to deduct them in the year the 
          loss occurs or in the preceding year by filing an amended 
          return, but only when the President declares a disaster.  

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          This bill applies excess disaster loss treatment to victims 
          in Mendocino County of the March, 2011 tsunami.  Taxpayers 
          can carry forward 100 percent of losses for 15 years, and 
          claim losses on amended returns.

           Comments
           
          As introduced, this bill applied to both Del Norte and 
          Mendocino County.  However, on March 16th, 2011, President 
          Obama declared Del Norte County a federal disaster area, 
          automatically triggering excess disaster losses for 
          taxpayers in Del Norte County by virtue of state law's 
          conformity to federal.  Because of the declaration, the 
          Legislature need only enact a specific statute for 
          Mendocino County taxpayers.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes   
          Local:  No

           SUPPORT  :   (Verified  8/15/11)

          Del Norte County Board of Supervisors
          Mendocino County Board of Supervisors

           ARGUMENTS IN SUPPORT  :    According to the author, "AB 1428 
          provides relief for the individuals and companies that were 
          negatively affected by the Tsunami that occurred March 10th 
          as a result of the 9.0 earthquake.  This measure would help 
          relieve some of the pressure and allow those who were 
          affected to carry over losses beyond what they could deduct 
          in a given year."


           ASSEMBLY FLOOR  :  76-0, 06/01/11
          AYES:  Achadjian, Alejo, Allen, Ammiano, Atkins, Beall, 
            Bill Berryhill, Block, Blumenfield, Bonilla, Bradford, 
            Brownley, Buchanan, Butler, Charles Calderon, Campos, 
            Carter, Cedillo, Chesbro, Conway, Cook, Davis, Dickinson, 
            Donnelly, Eng, Feuer, Fletcher, Fong, Fuentes, Furutani, 
            Beth Gaines, Galgiani, Gatto, Gordon, Grove, Hagman, 
            Halderman, Hall, Harkey, Hayashi, Roger Hernández, Hill, 
            Huber, Hueso, Huffman, Jones, Knight, Lara, Logue, Bonnie 
            Lowenthal, Ma, Mansoor, Mendoza, Miller, Mitchell, 
            Monning, Morrell, Nestande, Nielsen, Norby, Olsen, Pan, 







                                                               AB 1428
                                                                Page 
          3

            Perea, Portantino, Silva, Skinner, Smyth, Solorio, 
            Swanson, Torres, Valadao, Wagner, Wieckowski, Williams, 
            Yamada, John A. Pérez
          NO VOTE RECORDED:  Garrick, Gorell, Jeffries, V. Manuel 
            Pérez


          AGB:nl  8/16/11   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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