BILL NUMBER: AB 2641	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Arambula
   (Coauthor: Assembly Member Solorio)

                        FEBRUARY 19, 2010

   An act to amend Section 13305 of the Government Code, relating to
state government.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2641, as introduced, Arambula. State government: Department of
Finance: reporting requirements: tax expenditures.
   Existing law requires the Department of Finance to provide an
annual report to the Legislature on tax expenditures by no later than
September 15 of each year, and requires that annual report to
include, among other things, a comprehensive list of tax expenditures
exceeding $5,000,000 in annual cost.
   This bill would modify that reporting requirement to instead
require the annual report to include a comprehensive list of tax
expenditures exceeding $2,500,000 in annual cost.
   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 13305 of the Government Code is amended to
read:
   13305.  (a) The department shall provide an annual report to the
Legislature on tax expenditures by no later than September 15 of each
year. The report shall include each of the following:
   (1) A comprehensive list of tax expenditures exceeding 
five million dollars ($5,000,000)   two million five
hundred thousand dollars ($2,500,000)  in annual cost.
   (2) The statutory authority for each credit, deduction, exclusion,
exemption, or any other tax benefit as provided by state law.
   (3) A description of the legislative intent for each tax
expenditure, if the act adding or amending the expenditure contains
legislative findings and declarations of that intent, or that
legislative intent is otherwise expressed or specified by that act.
   (4) The sunset date of each credit, deduction, exclusion,
exemption, or any other tax benefit as provided by state law, if
applicable.
   (5) A brief description of the beneficiaries of the credit,
deduction, exclusion, exemption, or other tax benefit as provided by
state law.
   (6) An estimate or range of estimates for the state and local
revenue loss for the current fiscal year and the two subsequent
fiscal years. For sales and use tax expenditures, this would include
partial year exemptions and all other tax expenditures when the State
Board of Equalization has obtained that information.
   (7) For personal income tax expenditures, the number of taxpayers
affected and returns filed, as applicable, for the most recent tax
year for which full year data is available.
   (8) For corporation tax and sales and use tax expenditures, the
number of returns filed or business entities affected, as applicable,
for the most recent tax year for which full year data is available.
   (9) A listing of any comparable federal tax benefit, if any.
   (10) A description of any tax expenditure evaluation or
compilation of information completed by any state agency since the
last report made under this section.
   (b) For purposes of this section, "tax expenditure" means a
credit, deduction, exclusion, exemption, or any other tax benefit as
provided for by the state.
   (c) This section shall become operative on January 1, 2007.