BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2271
                                                                  Page  1

          Date of Hearing:   May 2, 2012

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                    AB 2271 (Perea) - As Amended:  March 29, 2012 

          Policy Committee:                              Revenue and 
          Taxation     Vote:                            8-0

          Urgency:     No                   State Mandated Local Program: 
          No     Reimbursable:              

           SUMMARY  

          This bill provides that a bad debt deduction or refund shall not 
          be disallowed by the Board of Equalization (BOE) solely on the 
          ground that a proper election was not established prior to 
          claiming the deduction or refund if a proper election was 
          established after claiming the deduction or refund.  

           FISCAL EFFECT 

          Negligible effect on state revenues as the bill codifies the 
          current practice of BOE.  However, if the BOE were to change the 
          practice, an option available in the absence of this bill, the 
          state could receive minor revenues, in the tens of thousands of 
          dollars.

           COMMENTS  

           Purpose  .  This bill would delete the requirement that the 
          election form be prepared and retained prior to claiming a 
          deduction or refund.  Therefore, when the proper election is 
          filed will have no effect on the date of filing of the claim for 
          a deduction or refund.  Even where the lender files a proper 
          election form outside the allowable time frame, the timeliness 
          of the claim will still be determined by the date of filing of 
          the claim itself.
           


          Analysis Prepared by  :    Roger Dunstan / APPR. / (916) 319-2081 










                                                                  AB 2271
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