BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 2332
                                                                  Page  1

          Date of Hearing:   May 16, 2012

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                   AB 2332 (Monning) - As Amended:  April 12, 2012 

          Policy Committee:                              Revenue and 
          Taxation     Vote:                            8-0

          Urgency:     Yes                  State Mandated Local 
          Program:NoReimbursable:           

          SUMMARY  

          This bill provides that any losses sustained in the County of 
          Santa Cruz as a result of the severe storms that occurred in 
          March 2011 may, at the taxpayer's election, be taken into 
          account for the taxable year immediately preceding the taxable 
          year in which the disaster occurred.
           
          FISCAL EFFECT  

          The Franchise Tax Board estimates there will be minor revenue 
          impacts from the bill.

           COMMENTS  

           1)Purpose  .  Between March 15 and 27, 2011, California was struck 
            by a devastating storm, destroying and damaging public 
            facilities and private property throughout the state.  Santa 
            Cruz County sustained $15 million in damage, 30% of the 
            statewide total.  In order to provide timely relief for those 
            who sustained damage or loss as a result of the storm, AB 2332 
            is an urgency measure.

           2)2011 Storms  :  In March 2011, the County of Santa Cruz was 
            struck by a severe storm that brought heavy rain, high winds, 
            and flooding, damaging or destroying both public facilities 
            and private property throughout the county.  The county 
            sustained roughly $15 million in damage.

            In April 2011, Governor Brown issued an Emergency Proclamation 
            for this storm and asked the federal government to declare the 
            event a major disaster.  California's request to the Federal 








                                                                  AB 2332
                                                                  Page  2

            Emergency Management Agency was denied, along with the state's 
            subsequent appeal of this decision.
                
             For disasters that were the subject of a governor's 
            proclamation, but not the subject of a presidential disaster 
            declaration, enactment of state law identifying a specific 
            event as a disaster for state tax law purposes authorizes 
            effected taxpayers to elect to deduct disaster losses on the 
            return for the prior taxable year. 


           Analysis Prepared by :    Roger Dunstan / APPR. / (916) 319-2081