BILL NUMBER: AB 1728	CHAPTERED  09/27/00

	CHAPTER   685
	FILED WITH SECRETARY OF STATE   SEPTEMBER 27, 2000
	APPROVED BY GOVERNOR   SEPTEMBER 25, 2000
	PASSED THE ASSEMBLY   AUGUST 31, 2000
	PASSED THE SENATE   AUGUST 30, 2000
	AMENDED IN SENATE   AUGUST 7, 2000
	AMENDED IN ASSEMBLY   MARCH 13, 2000

INTRODUCED BY   Assembly Members Villaraigosa, Aroner, Davis, Knox,
Kuehl, Steinberg, and Wayne and Senator Schiff
   (Principal coauthors:  Assembly Members Honda and Wesson)
   (Coauthors:  Assembly Members Alquist, Ashburn, Baugh, Bock,
Briggs, Cardoza, Correa, Dickerson, Hertzberg, Jackson, Keeley,
Lempert, Longville, Machado, Maldonado, Mazzoni, Olberg, Rod Pacheco,
Romero, Scott, Shelley, Strickland, Washington, Wildman, and Zettel)

   (Coauthors:  Senators Alarcon, Costa, Hayden, Karnette, Murray, O'
Connell, Poochigian, and Vasconcellos)

                        JANUARY 5, 2000

   An act to add Section 17155.5 to the Revenue and Taxation Code,
relating to taxation, to take effect immediately, tax levy.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1728, Villaraigosa.  Gross income exclusion:  reparations.
   The Personal Income Tax Law allows various exclusions in computing
the income that is subject to the taxes imposed by that law,
including an exclusion for any amount received as compensation by a
taxpayer pursuant to the German Act Regulating Unresolved Property
Claims and any amount received by a taxpayer who is a Holocaust
victim or the heir or beneficiary of a Holocaust victim as a result
of a settlement of claims for any recovered asset.
   This bill would additionally exempt any amounts received from the
German Foundation known as Remembrance, Responsibility, and the
Future, or any other source of humanitarian reparations made as
reparations to persons who were required to perform slave or forced
labor during World War II.
   This bill would take effect immediately as a tax levy.


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


  SECTION 1.  Section 17155.5 is added to the Revenue and Taxation
Code, to read:
   17155.5.  Gross income does not include any amount received as
reparation payments paid by the German Foundation known as
Remembrance, Responsibility, and the Future, or any other source of
humanitarian reparations made for purposes of redressing the
injustice done to persons who were required to perform slave or
forced labor during World War II.
  SEC. 2.  This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.