BILL ANALYSIS Ó AB 922 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 922 (Maienschein) As Amended June 25, 2014 Majority vote. Tax levy ----------------------------------------------------------------- |ASSEMBLY: | |(May 29, 2013) |SENATE: |36-0 |(August 11, | | | | | | |2014) | | | | | | | | ----------------------------------------------------------------- (vote not relevant) Original Committee Reference: U. & C. SUMMARY : Extends disaster loss provisions to losses sustained in the County of San Diego as a result of the wildfires that occurred in May 2014. The Senate amendments delete the Assembly version of this bill, and instead: 1)Provide that Internal Revenue Code (IRC) Section 165(i) shall apply to any losses sustained in the County of San Diego as a result of the wildfires that occurred in May 2014. 2)Provide that, for the losses specified above, the election under IRC Section 165(i) may be made on a return or amended return filed on or before the due date of the return for the taxable year in which the disaster occurred. 3)Provide that, unless specifically provided otherwise, any law that suspends, defers, reduces, or otherwise diminishes the deduction of a net operating loss (NOL) shall not apply to a NOL attributable to a loss described above. 4)Provide that the bill shall take immediate effect as a tax levy. EXISTING LAW : 1)Provides for a deduction and the carryover to specified taxable years of specified losses sustained as a result of certain disasters occurring in California in an area determined by the President to warrant specified federal assistance or proclaimed by the Governor to be in a state of emergency. AB 922 Page 2 2)Allows a taxpayer to elect to deduct those disaster losses on the return for the taxable year preceding the taxable year in which the disaster occurred. AS PASSED BY THE ASSEMBLY , this bill required the California Public Utilities Commission to authorize an electrical or gas corporation to verify, by the submission of proof of income, the continuing eligibility of a participant in the California Alternate Rates for Energy (CARE) program regardless of the means by which the participant was first enrolled in the CARE program. FISCAL EFFECT : Unknown COMMENTS : This bill was substantially amended in the Senate and the Assembly-approved provisions of this bill were deleted. This bill, as amended in the Senate is inconsistent with Assembly actions. Analysis Prepared by : M. David Ruff / REV. & TAX. / (916) 319-2098 FN: 0004601