BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 877
                                                                  Page  1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 877 (Bocanegra and Jones-Sawyer)
          As Amended  May 6, 2014
          2/3 vote. Tax levy
           
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          |ASSEMBLY:  |     |(January 27,    |SENATE: |27-9 |(August 11,    |
          |           |     |2014)           |        |     |2014)          |
           ----------------------------------------------------------------- 
               (vote not relevant)
           
           Original Committee Reference:    E. & R.  

           SUMMARY  :  Provides that, for taxable years beginning on or after  
          January 1, 2014, a deduction shall not be allowed for the amount  
          of any fine or penalty paid or incurred by an owner of a  
          professional sports franchise, where that fine or penalty is  
          assessed or imposed by the professional sports league that  
          includes that franchise.  

           The Senate amendments  delete the Assembly version of this bill,  
          and instead:

          1)Provide that, for taxable years beginning on or after January  
            1, 2014, a deduction shall not be allowed for the amount of  
            any fine or penalty paid or incurred by an owner of a  
            professional sports franchise, where that fine or penalty is  
            assessed or imposed by the professional sports league that  
            includes that franchise.

          2)Disallow a deduction under both the Personal Income Tax Law  
            and the Corporation Tax Law.

          3)Provide that this bill shall go into immediate effect as a tax  
            levy.    

           EXISTING LAW  :

          1)Allows various deductions in computing income subject to  
            taxation.  

          2)Allows a deduction for ordinary and necessary business  
            expenses, including a deduction for amounts paid or incurred  
            for specified types of fines or penalties.  









                                                                  AB 877
                                                                  Page  2

           AS PASSED BY THE ASSEMBLY  , this bill revised the definition of a  
          "voter verified paper audit trail."

           FISCAL EFFECT  :  According to the Senate Appropriations  
          Committee, pursuant to Senate Rule 28.8, negligible state costs.

           COMMENTS  :  This bill was substantially amended in the Senate and  
          the Assembly-approved version of this bill was deleted.  This  
          bill, as amended in the Senate, is inconsistent with Assembly  
          actions and the provisions of this bill, as amended in the  
          Senate, have not been heard in any Assembly policy committee.


           Analysis Prepared by  :    M. David Ruff / REV. & TAX. / (916)  
          319-2098                                               FN:  
          0004154