BILL NUMBER: SB 1552	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Gaines

                        FEBRUARY 24, 2012

   An act to amend Section 17020.6 of the Revenue and Taxation Code,
relating to taxation, to take effect immediately, tax levy.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1552, as introduced, Gaines. Taxation: qualified long-term care
insurance.
   The Personal Income Tax Law conforms to the federal Internal
Revenue Code with regard to qualified long-term care insurance, with
certain exceptions.
   This bill would remove the exceptions, and would conform the
Personal Income Tax Law to the federal income tax law with regard to
qualified long-term care insurance, as provided.
   This bill would take effect immediately as a tax levy.
   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 17020.6 of the Revenue and Taxation Code is
amended to read:
   17020.6.  For purposes of this part:
   (a) Section 7702 of the Internal Revenue Code, relating to life
insurance contracts, shall apply  , except as otherwise
provided  .
   (b) Section 7702A of the Internal Revenue Code, relating to
modified endowment contract defined, shall apply  , except as
otherwise provided  .
   (c)  (1)    Section 7702B of the
Internal Revenue Code, relating to treatment of qualified long-term
care insurance, shall apply  , except as otherwise provided
 . 
   (2) The amendments made by Section 844 of the Pension Protection
Act of 2006 (Public Law 109-280) to Section 7702B of the Internal
Revenue Code shall not apply. 
  SEC. 2.  This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.