BILL NUMBER: AB 2539	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Smyth

                        FEBRUARY 19, 2010

   An act relating to taxation.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2539, as introduced, Smyth. Income tax: health savings account.

   The Personal Income Tax Law authorizes various deductions in
computing income that is subject to tax under that law.
   This bill would state the intent of the Legislature to enact
legislation to allow a deduction in connection with health savings
accounts in conformity with federal law, and to provide related
conformity to federal law with respect to treatment of the account as
a tax-exempt trust, the allowance of rollovers from Archer Medical
Savings Accounts to a health savings account, and penalties in
connection therewith.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


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

  SECTION 1.  It is the intent of the Legislature to enact
legislation to allow a deduction in connection with health savings
accounts in conformity with federal law, and to provide related
conformity to federal law with respect to treatment of the account as
a tax-exempt trust, the allowance of rollovers from Archer Medical
Savings Accounts to a health savings account, and penalties in
connection therewith.