BILL NUMBER: AB 2312	CHAPTERED  09/24/00

	CHAPTER   614
	FILED WITH SECRETARY OF STATE   SEPTEMBER 24, 2000
	APPROVED BY GOVERNOR   SEPTEMBER 23, 2000
	PASSED THE ASSEMBLY   AUGUST 29, 2000
	PASSED THE SENATE   AUGUST 28, 2000
	AMENDED IN SENATE   JUNE 27, 2000
	AMENDED IN ASSEMBLY   MAY 1, 2000

INTRODUCED BY   Assembly Member House

                        FEBRUARY 24, 2000

   An act to add Section 12210 to the Revenue and Taxation Code,
relating to taxation.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2312, House.  Taxation:  insurers:  gross premiums tax.
   Existing law requires every insurer doing business in this state
to pay to the state annually a tax based, generally, on the amount of
gross premiums received during the year on its business done in this
state.
   This bill would require life insurers and life insurance agents to
inform their clients about the gross premiums tax, as provided.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 12210 is added to the Revenue and Taxation
Code, to read:
   12210.  (a) A life insurer or life insurance agent shall inform
his or her client of the tax imposed under this part.
   (b) A life insurer or life insurance agent who quotes only one
price that includes the gross premiums tax is exempt from compliance
with the requirements of subdivision (a).