BILL NUMBER: SB 79 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY JULY 11, 2011
AMENDED IN ASSEMBLY MARCH 23, 2011
AMENDED IN ASSEMBLY MARCH 17, 2011
AMENDED IN ASSEMBLY MARCH 14, 2011
INTRODUCED BY Committee on Budget and Fiscal Review
JANUARY 10, 2011
An act to amend Sections 12009, 12201, 12204, 12207,
12242, 12251, 12253, 12254, 12257, 12258, 12260, 12301, 12302, 12303,
12304, 12305, 12307, 12412, 12413, 12421, 12422, 12423, 12427,
12428, 12429, 12431, 12433, 12434, 12491, 12493, 12494, 12601, 12602,
12631, 12632, 12636, 12636.5, 12679, 12681, 12801, 12951, 12977,
12983, 12984, 13108, 17276.1, 17276.20, 23101, 24416.1, 24416.20, and
25128 of, to amend and repeal Sections 17053.33, 17053.34, 17053.45,
17053.46, 17053.47, 17053.70, 17053.74, 17053.75, 17235, 17267.2,
17267.6, 17268, 17276.2, 17276.4, 17276.5, 17276.6, 23612.2, 23622.7,
23622.8, 23633, 23634, 23645, 23646, 24356.6, 24356.7, 24356.8,
24384.5, 24416.2, 24416.4, 24416.5, and 24416.6 of, to amend, repeal,
and add Section 25136 of, to add Sections 17053.31 and 23611 to, to
repeal Section 25128.5 of, and to repeal and add Sections 17276.22
and 24416.22 of, the Revenue and Taxation Code, to amend Sections
1661, 4601, 5902.5, and 9552 of the Vehicle Code, and to amend
Section 14301.11 of the Welfare and Institutions Code, relating to
taxation, making an appropriation therefor, and declaring the urgency
thereof, An act to add Section 16330 to the
Government Code, relating to state finance, and making an
appropriation therefor, to take effect immediately, bill
related to the budget.
LEGISLATIVE COUNSEL'S DIGEST
SB 79, as amended, Committee on Budget and Fiscal Review.
Taxation: personal income and corporation taxes: managed care plan
taxes. State funds: State Agency Investment Fund.
(1) Existing law provides for the investment of certain state
moneys by the Treasurer through the Pooled Money Investment Account,
according to specified criteria.
This bill would create the State Agency Investment Fund in the
State Treasury, for the receipt of deposits by state agencies of up
to $500,000,000 each, from moneys not required by law to be deposited
in the Pooled Money Investment Account, for a total of
$10,000,000,000 in the fund at any one time. It would authorize the
Director of Finance, in consultation with the Treasurer, to set
certain terms and conditions for the deposits, and require the
Treasurer to invest the moneys held in the fund through the Pooled
Money Investment Account, according to specified criteria. It would
continuously appropriate moneys in the fund to the Controller for the
payment of interest expenditures and the return of deposits to
depositors.
(2) The Administrative Procedure Act governs the procedure for the
adoption, amendment, or repeal of regulations by state agencies and
for the review of those regulatory actions by the Office of
Administrative Law, subject to specified criteria.
This bill would exempt activities conducted by the Director of
Finance, in consultation with the Treasurer, in implementing and
administering the investment program provided for in the bill from
the provisions of the act.
(3) This bill would declare that it is to take effect immediately
as a bill providing for appropriations related to the Budget Bill.
(1) The Personal Income Tax Law and the Corporation Tax Law allow
for various tax credits and deductions in computing the taxes imposed
by those laws, relating to enterprise zones, targeted tax areas,
local agency military base recovery areas, manufacturing enhancement
areas, and net operating losses.
This bill would make these provisions inoperative for taxable
years beginning on or after January 1, 2011, and would repeal these
provisions as of December 1, 2011. This bill would also prevent
carryovers for taxable years beginning on or after January 1, 2011,
for specified provisions. This bill would delete obsolete references
to conform to these changes.
(2) Existing law allows individual and corporate taxpayers to
utilize net operating losses and carryovers and carrybacks of those
losses for purposes of offsetting their individual and corporate tax
liabilities. Existing law, for net operating losses incurred in
taxable years beginning on or after January 1, 2008, provides a
carryover period of 20 years and allows net operating losses
attributable to taxable years beginning on or after January 1, 2011,
to be carrybacks to each of the preceding 2 taxable years, as
provided.
This bill would recalculate elected net operating loss carryovers
available, under specified provisions that have been repealed by this
bill, by applying the net operating loss rules applicable to the
taxable year in which the net operating loss was incurred.
(3) The Corporation Tax Law imposes taxes measured by income and,
in the case of a business with income derived from or attributable to
sources both within and without this state, apportions the income
between this state and other states and foreign countries in
accordance with a specified 4-factor formula based on the property,
payroll, and sales within and without this state, except that in the
case of an apportioning trade or business that derives more than 50%
of its gross business receipts from conducting one or more qualified
business activities, as defined, business income is apportioned in
accordance with a specified 3-factor formula. That law, for taxable
years beginning on or after January 1, 2011, allows a taxpayer to
have that income apportioned in accordance with a single sales factor
formula, except as provided, pursuant to an irrevocable annual
election, as specified. That law also provides that sales of tangible
and intangible personal property are in this state in accordance
with specified criteria.
This bill would, for taxable years beginning or after January 1,
2011, revise the rules which determine whether a taxpayer is doing
business within this state, revise the provisions which determine
whether specific sales occur in this state, and require a taxpayer,
except as provided, to apportion income in accordance with a single
sales factor.
(4) Existing law requires, until July 1, 2011, every return
required to be filed with the State Insurance Commissioner pursuant
to provisions governing taxes on the total operating revenue of
Medi-Cal managed care plans to be signed by the insurer or the
Medi-Cal managed care plan or an executive officer of the insurer or
the plan and to be made under oath or contain a written declaration
that is made under penalty of perjury.
This bill would, instead, require every return required to be
filed with the State Insurance Commissioner pursuant to provisions
governing taxes on the total operating revenue of Medi-Cal managed
care plans to be made under oath or contain a written declaration
that is made under penalty of perjury until January 1, 2014. By
expanding the crime of perjury, this bill would impose a
state-mandated local program.
(5) Existing law generally requires the vehicle license fee to be
paid to the Department of Motor Vehicles at the time required for
renewal or registration of the vehicle.
Existing law establishes fees for original and renewal
registration of vehicles to be collected by the Department of Motor
Vehicles. Existing law requires the department, with a specified
exception, to notify the registered owner of each vehicle of the date
that registration renewal fees for the vehicle are due, at least 60
days prior to that due date, and to indicate the fact that the
required notice was mailed by a notation in the department's records.
This bill would, commencing on June 8, 2011, and operative until
January 1, 2012, reduce the department's time period for notification
that vehicle registration renewal fees are due to 30 days prior to
the due date, thus requiring the vehicle license fee also to be due
on that date.
(6) Existing law requires that the renewal of registration for a
vehicle that is either currently registered or for which a specified
certification is filed be obtained not more than 75 days prior to the
expiration of the current registration or certification.
This bill would, commencing on June 8, 2011, and operative until
July 1, 2011, instead apply the above-specified requirement only to
the renewal of registration for any vehicle that expires on or before
June 30, 2011, and would require the renewal of registration for a
vehicle that expires on or after July 1, 2011, or for which a
specified certification is filed, to be obtained not more than 15
days prior to the expiration of the current registration or
certification, thus requiring the vehicle license fee also to be due
on that date.
(7) Existing law requires that if an application for a
registration transaction is filed with the Department of Motor
Vehicles during the 30 days immediately preceding the date of
expiration of registration of the vehicle, the application be
accompanied by the full renewal fees for the ensuing registration
year in addition to any other fees that are due and payable.
This bill would, commencing on the date that this bill becomes
operative and remaining operative until July 1, 2011, reduce the time
period to 10 days immediately preceding the date of expiration of
registration of the vehicle, thus requiring the vehicle license fee
also to be due on that date.
(8) Existing law provides that fees are delinquent if an
application for renewal of registration, or an application for
renewal of special license plates, is made after midnight of the
expiration date of the registration or special plates, or 60 days
after the date the registered owner is notified by the Department of
Motor Vehicles, whichever is later.
This bill would, commencing on June 8, 2011, and operative until
January 1, 2012, reduce the time period to 30 days after the date the
registered owner is notified by the department, thus requiring the
vehicle license fee also to be due on that date.
(9) Existing law establishes the Medi-Cal program, administered by
the State Department of Health Care Services, under which health
care services are provided to qualified, low-income persons. The
Medi-Cal program is, in part, governed and funded by federal Medicaid
Program provisions. Under existing law, one of the methods by which
Medi-Cal services are provided is pursuant to contracts with various
types of managed care plans. Existing law imposes various taxes,
including a tax at a specified rate on the gross premiums of an
insurer, as defined, and, until July 1, 2011, on the total operating
revenue, as specified, of a Medi-Cal managed care plan, as defined.
Existing law continuously appropriates the revenues derived from the
tax on Medi-Cal managed care plans for specified purposes.
This bill would extend the imposition of the tax on the total
operating revenue of Medi-Cal managed care plans until January 1,
2014, and make other conforming changes. By extending the imposition
of a tax whose revenues are continuously appropriated, this bill
would make an appropriation.
(10) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
(11) The California Constitution authorizes the Governor to
declare a fiscal emergency and to call the Legislature into special
session for that purpose. Governor Schwarzenegger issued a
proclamation declaring a fiscal emergency, and calling a special
session for this purpose, on December 6, 2010. Governor Brown issued
a proclamation on January 20, 2011, declaring and reaffirming that a
fiscal emergency exists and stating that his proclamation supersedes
the earlier proclamation for purposes of that constitutional
provision.
This bill would state that it addresses the fiscal emergency
declared and reaffirmed by the Governor by proclamation issued on
January 20, 2011, pursuant to the California Constitution.
(12) This bill would declare that it is to take immediate effect
as an urgency statute and a bill providing for appropriations related
to the Budget Bill.
Vote: 2/3 majority . Appropriation:
yes. Fiscal committee: yes. State-mandated local program:
yes no .
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 16330 is added to the
Government Code , to read:
16330. (a) (1) The State Agency Investment Fund is hereby created
within the State Treasury, for the receipt of deposits from state
agencies with moneys not currently required by law to be deposited in
the Pooled Money Investment Account.
(2) For purposes of this section, a "state agency" includes any
state office, officer, department, division, bureau, board,
commission, organization, or agency, including, but not limited to,
the University of California, the California State University, the
California Community Colleges, and the Judicial Council.
(b) Each agency that deposits moneys in the fund shall deposit no
less than a total of five hundred million dollars ($500,000,000). The
total amount of moneys that may be deposited in the fund from all
eligible sources shall not exceed, at any point in time, a total of
ten billion dollars ($10,000,000,000), or a lesser amount as
determined by the Director of Finance, in consultation with the
Treasurer.
(c) The terms and conditions of deposits made into the fund shall
be set by the Director of Finance, in consultation with the
Treasurer. Those terms shall include, but not be limited to, the size
of deposit from a particular state agency, the length of time those
moneys shall be held in deposit in the fund, the availability of
funds for withdrawal by the state agency depositing the funds, and
the annual rate of interest paid on deposits, as described in
subdivision (e).
(d) Moneys held in the fund shall be invested by the Treasurer in
investments authorized by Sections 16430 and 16480 through the Pooled
Money Investment Account, and notwithstanding any other law, shall
be deemed borrowable by the General Fund for cashflow purposes
pursuant to Sections 16310 and 16381. Repayment of any of those
borrowings shall be considered a priority payment, equivalent to any
other loan repayment made from the General Fund to another state
fund.
(e) Notwithstanding any other law, the rate of interest to be paid
to the depositors shall be the base apportionment rate based on
their pro rata share of the earnings of the Pooled Money Investment
Account on a quarterly basis at the end of each quarter plus an
enhanced amount. The pro rata share shall be determined by a dollar
day participation. The base apportionment rate applied to the dollar
day participation in the fund shall be the quarter-to-date average
yield of the Pooled Money Investment Account for the current quarter.
The enhancement amount paid to depositors in the fund shall be
determined by the Director of Finance, in consultation with the
Treasurer, and shall be added to the base rate earned by the Pooled
Money Investment Account at the time the apportionment is made. The
total interest cost described in this subdivision shall not exceed
that provided for in paragraph (1) of subdivision (d) of Section
16731.
(f) Notwithstanding Section 13340, moneys in the fund are hereby
continuously appropriated to the Controller for payment of interest
expenditures to depositors calculated in accordance with subdivision
(e), and return of deposits to depositors according to terms and
conditions set by the Director of Finance, in consultation with the
Treasurer.
(g) The Department of Finance shall determine the budget items to
be used for the recording and reporting of interest expenditures
pursuant to this section.
(h) Deposits in the fund shall be tracked separately for each
participant in the state's accounting system, and shall be deemed to
be assets of each participant. These assets shall be reflected as
such on the participants' financial statements.
(i) Actions by the Director of Finance, in consultation with the
Treasurer, in implementing and administering the investment program
provided for in this section shall be exempt from the provisions of
the Administrative Procedure Act (Chapter 3.5 (commencing with
Section 11340) of Part 1 of Division 3).
SEC. 2. This act is a bill providing for
appropriations related to the Budget Bill within the meaning of
subdivision (e) of Section 12 of Article IV of the California
Constitution, has been identified as related to the budget in the
Budget Bill, and shall take effect immediately. All matter
omitted in this version of the bill appears in the bill as amended in
the Assembly, March 23, 2011. (JR11)