BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                AB 922
                                                                Page  1

        CONCURRENCE IN SENATE AMENDMENTS
        AB 922 (Maienschein)
        As Amended  June 25, 2014
        Majority vote.  Tax levy  
         
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        |ASSEMBLY:  |     |(May 29, 2013)  |SENATE: |36-0 |(August 11,    |
        |           |     |                |        |     |2014)          |
        |           |     |                |        |     |               |
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                    (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