BILL NUMBER: SB 500	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JANUARY 6, 2014

INTRODUCED BY   Senator Lieu

                        FEBRUARY 21, 2013

    An act to amend Sections 17052.12 and 23609 of the
Revenue and Taxation Code, relating to taxation, to take effect
immediately, tax levy.   An act to amend Section 2241.6
of the Business and Professions Code, relating to   healing
arts. 



	LEGISLATIVE COUNSEL'S DIGEST


   SB 500, as amended, Lieu.  Income and corporation tax
credits: research and development.   Medical practice:
pain management.  
   Existing law establishes the Medical Board of California within
the Department of Consumer Affairs. Existing law, among other things,
required the board to develop standards before June 1, 2002, to
ensure the competent review in cases concerning the management,
including, but not limited to, the undertreatment, undermedication,
and overmedication of a patient's pain.  
   This bill would require the board, on or before July 1, 2015, to
update those standards. The bill would require the board to convene a
task force to develop and recommend the updated standards to the
board. The bill would also require the board to update those
standards on or before July 1 each 5th year thereafter. 

   The Personal Income Tax Law and the Corporation Tax Law, by
reference to a specified federal statute, allow a credit against
taxes imposed by those laws for increasing research expenses, as
defined. In general, the amount of the credit under both laws is
equal to 15% of the excess of the qualified research expenses, as
defined, for the taxable year over the base amount, as defined, and,
in addition, for purposes of the Corporation Tax Law, 24% of the
basic research payments, as defined. The term "base amount" means the
product of the average annual gross receipts of the taxpayer for
each of the specified years preceding the taxable year and the
fixed-base percentage, as defined, but in no event less than 50% of
the qualified research expenses for the taxable year. A taxpayer may
elect an alternative incremental credit for increasing research
expenses in modified conformity to federal income tax laws. 

   This bill would increase the credit for increasing research
expenses to 20% of the excess of the qualified research expenses.
This bill would also provide complete conformity to the alternative
incremental credit provided under those federal income tax laws.
 
   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 2241.6 of the  
Business and Professions Code   is am   ended to
read: 
   2241.6.   (a)     (1)    The
 Division of Medical Quality   board  shall
develop standards before June 1, 2002, to  assure 
 ensure  the competent review in cases concerning the
management, including, but not limited to, the undertreatment,
undermedication, and overmedication of a patient's pain.  The

    (2)     The  division may consult with
entities such as the American Pain Society, the American Academy of
Pain Medicine, the California Society of Anesthesiologists, the
California Chapter of the American College of Emergency Physicians,
and any other medical entity specializing in pain control therapies
to develop the standards utilizing, to the extent they are
applicable, current authoritative clinical practice guidelines. 
   (b) The board shall update the standards adopted pursuant to
subdivision (a) on or before July 1, 2015, and on or before July 1
each fifth year thereafter.  
   (c) The board shall convene a task force to develop and recommend
the updated standards to the board. The task force, in developing the
updated standards, shall consult with the entities specified in
paragraph (2) of subdivision (a), the American Cancer Society, and
specialists in pharmacology and addiction medicine.  All matter
omitted in this version of the bill appears in the bill as introduced
in the Senate, February 21, 2013. (JR11)