BILL ANALYSIS
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|SENATE RULES COMMITTEE | AB 2564|
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THIRD READING
Bill No: AB 2564
Author: Swanson (D)
Amended: 6/15/10 in Senate
Vote: 21
SENATE REVENUE & TAXATION COMMITTEE : 3-0, 6/9/10
AYES: Wolk, Alquist, Padilla
NO VOTE RECORDED: Walters, Ashburn
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : 71-0, 4/29/10 - See last page for vote
SUBJECT : State budget: tax expenditures
SOURCE : California Labor Federation, AFL-CIO
DIGEST : This bill changes the date that the Department
of Finance must submit its tax expenditure report from
September 15th of each year to February 1st of each year.
ANALYSIS : Existing law requires the Department of
Finance (DOF) to submit a tax expenditure report to the
Legislature each year by September 15th. The report must
include:
1. A comprehensive list of all tax expenditures exceeding
five million dollars in annual cost.
2. The statutory authority, sunset date, and estimate of
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the revenue loss attributable to each credit, deduction,
exemption, exclusion, or tax benefit.
3. A description of the legislative intent of each tax
expenditure and its sunset date if the bill enacting the
tax benefit includes intent sections of a sunset date.
4. A brief description of the credit's beneficiaries,
including the number of taxpayers affected and returns
filed in the most recent year available.
5. A listing of any comparable federal tax benefit.
6. A description of any evaluation or compilation of
information by any state agency since the last report
was made.
This bill changes the date that DOF must submit the report
to the Legislature from September 15th to February 1st.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 6/29/10)
California Labor Federation, AFL-CIO
American Federation of State, County, and Municipal
Employees
California Nurses Association
Having Our Say
ARGUMENTS IN SUPPORT : The author's office provides the
following statement, "Current law requires the Department
of Finance to deliver a tax expenditure report to the
Legislature on September 15th of each year. The report is
required to include each of the following: A comprehensive
list of tax expenditures exceeding $5 million; A
description of the legislative intent of each tax
expenditure, if specified; The sunset date of each
provision; The beneficiaries of the provision; An estimate
of the state and local revenue loss for the current and two
subsequent fiscal years; For personal income tax
expenditures, the number of taxpayers and returns affected
for the most recent tax year; For corporation and sales tax
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expenditures, the number of returns or businesses affected
for the most recent year for which data is available; A
listing of any comparable federal benefit; and A
description of any tax expenditure evaluation or
compilation of information completed by any state agency
since the last tax expenditure report by the Department of
Finance.
"California is experiencing one of the worst recessions in
recent history. In an effort to balance the state's
budget, the Legislature has been forced to make cuts to
vital programs, including education, health and human
services, and transportation.
"Accurate information about all of the state's
expenditures, including the costs of state departments,
state programs and state tax expenditures, is necessary to
facilitate an honest debate on the budget. Having the
Department of Finance's expenditure report available while
the budget negotiations are taking place will ensure that
the Legislature has the information necessary to address
California's fiscal condition."
ASSEMBLY FLOOR :
AYES: Adams, Ammiano, Anderson, Arambula, Beall, Bill
Berryhill, Tom Berryhill, Blakeslee, Block, Blumenfield,
Bradford, Brownley, Buchanan, Carter, Chesbro, Conway,
Cook, Coto, Davis, De La Torre, De Leon, DeVore,
Emmerson, Eng, Evans, Feuer, Fletcher, Fong, Fuentes,
Fuller, Furutani, Gaines, Galgiani, Garrick, Gilmore,
Hagman, Hall, Harkey, Hayashi, Hernandez, Hill, Huber,
Huffman, Jeffries, Lieu, Logue, Ma, Mendoza, Miller,
Monning, Nava, Nestande, Niello, Nielsen, Norby, V.
Manuel Perez, Portantino, Ruskin, Salas, Saldana, Silva,
Skinner, Smyth, Solorio, Audra Strickland, Swanson,
Torlakson, Torres, Tran, Yamada, John A. Perez
NO VOTE RECORDED: Bass, Caballero, Charles Calderon,
Jones, Knight, Bonnie Lowenthal, Torrico, Villines,
Vacancy
DLW:do 8/4/10 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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