1995 Significant Legislation
Pages 600-699
Index by Bill Number
[PAGE 600]
SB 371 (Rosenthal-D) - Small Employer Health Insurance
Extends California's small employer health insurance reforms (which currently apply to groups with 3 to 50 employees) to groups of 2 to 50.
(On Senate Unfinished Business File)
Similar legislation is AB 8 (Friedman-D) which is on the Senate Inactive File.
SB 381 (Petris-D) - Insurance: Severe Mental Illness
Requires health care service plans and disability insurance contracts to offer benefits for severe mental illness that are equal to the benefits for treatment of all other physical diseases and disorders.
(Failed passage in Senate Appropriations Committee; reconsideration granted)
SB 416 (Lewis-R) - Health Insurance: Guarantee Association
Allows the California Life and Health Insurance Guarantee Association to delegate the association's "administration" as part of the powers and duties that may be delegated to a corporation, association, or other organization.
Chapter 386, Statutes of 1995
SB 445 (Rosenthal-D) - Nonprofit Health Care Service Plans
Directs the Department of Corporations to regulate the manner in which nonprofit health care plans convert or restructure to become for-profit plans.
Chapter 792, Statutes of 1995
SB 454 (Russell-R) - Health Care Service Plans: Grievances
Provides requirements of health care service plans and the Department of Corporations related to establishing and maintaining a formal enrollee grievance process.
Chapter 788, Statutes of 1995
[PAGE 601]
SB 607 (Ayala-D) - Health Insurance: Diabetes
Requires health insurers to cover management and treatment of diabetes, including coverage of comprehensive treatment supplies.
(In Senate Appropriations Committee)
SB 687 (Rosenthal-D) - Medicare Supplement Coverage
Adds new open enrollment provisions and limits the use of preexisting condition exclusions in Medicare Supplement coverage which applies to persons 65 or older.
Chapter 709, Statutes of 1995
SB 689 (Rosenthal-D) - Health Care Service Plans
Establishes the Department of Corporations (DOC) to establish a toll free number for filing of grievances and complaints by enrollees concerning health maintenance organizations, as specified. Allows DOC to assess administrative penalties of up to $250,000 for repeated failure to respond to grievances. Requires DOC to conduct on-site medical surveys of HMOs every 3 years. Appropriates $1,444,000 from State Corporations Fund.
Chapter 789, Statutes of 1995
SB 705 (Rosenthal-D) - Health Insurance
Changes the name of California's small employer health insurance purchasing program from the Voluntary Alliance Uniting Employers to the Health Insurance Plan of California.
(On Senate Unfinished Business File)
SB 761 (Greene-D) - Health Coverage: COBRA
Requires that every health care service plan and nonprofit hospital service plan contract provide continuation of health care benefits for specified former employees, eliminating the requirement that employers offer this continuation of coverage. Requires employers to notify former employees or spouses of the availability of the continuation benefits. Provides requirements and limitations as to the premiums charged. Allows for termination of coverage if the employer terminates its group coverage with the insurer or plan.
Chapter 489, Statutes of 1995
[PAGE 602]
SB 789 (Rosenthal-D) - Health Insurance: Stop-Loss Coverage
Adopts conditions under which stop-loss insurance sold with low attachment points must be regulated as health insurance and not loss insurance.
(In Assembly Health Committee)
SB 849 (Maddy-R) - Health Insurance
Clarifies the schedule for phasing in the small group health insurance risk adjustment rating factor that becomes effective July 1, 1996. Allows a California Major Risk Medical Insurance Board to develop and implement health coverage programs for persons not adequately covered by existing private and public health care delivery systems.
(On Assembly Inactive File)
SB 957 (Watson-D) - Health Care Service Plans
Permanently exempts health care service plans operated by any city, county, city and county, public entity, local political subdivision, or by a public joint labor-management trust governed by a board of trustees from licensing requirements under the Knox-Keene Act. Adds self-insured reimbursement plans to the exemption.
Chapter 757, Statutes of 1995
Similar legislation is AB 1272 (V. Brown-D), which became Chapter 756, Statutes of 1995.
SB 1020 (Johnston-D) - Insurance Discrimination: Genetic Characteristics
Prohibits health insurers and health plans from providing different terms or benefits on the basis of genetic characteristics, protects the privacy of genetic tests, and establishes penalties. Makes it a crime punishable by administrative, civil and/or criminal penalties to negligently or willfully disclose genetic test results to a third party.
Chapter 695, Statutes of 1995
[PAGE 603]
SB 1064 (Lewis-R) - Health Care Service Plans
Revises the requirements and procedures for reimbursement of non-participating providers for emergency services and care provided to enrollees.
(In Assembly Health Committee)
SB 1151 (Rosenthal-D) - Health Care Service Plans
Defines "out-of-area coverage" for purposes of the definition of basic health care services under the Knox-Keene Health Care Service Plan Act of 1975 to include certain urgently needed services. Requires that enrollees be permitted to select as a primary care physician any available primary care physician who contracts with the plan in the service area, as defined, where the enrollee lives or works.
Chapter 515, Statutes of 1995
SB 1211 (Hughes-D) - Health Coverage: Continuation
Requires health care service plan contracts and every group or individual policy of insurance providing coverage under an employer-sponsored plan to offer continued coverage to individuals formerly belonging to an eligible class, subject to certain specified requirements and restrictions.
(In Assembly Health Committee)
AB 73 (Friedman-D) - Health Care Coverage
Directs the Department of Corporations to establish a toll-free telephone number to receive complaints regarding health care service plans, and prohibits health care service plans and disability insurers from basing a person's compensation on the number of claims or the cost of services denied authorization or payment. Provides that the toll-free telephone provisions of the bill become effective only if SB 689, which revises the licensing fee schedule for health care service plans and specialized health care service plans, is enacted.
Chapter 787, Statutes of 1995
AB 396 (Speier-D) - Health Coverage: Primary Care Providers
Corrects a drafting error in AB 2493 of 1994 requiring health insurers to include obstetrician-gynecologists as primary care providers.
Chapter 353, Statutes of 1995
[PAGE 604]
AB 503 (Aguiar-R) - Small Employer Health Coverage
Amends California's small employer health insurance laws by revising terms related to rate changes and revising definitions related to coverage sold to certain associations.
Chapter 668, Statutes of 1995
AB 505 (Villaraigosa-D) - Changes in Health Care
Requires hospitals and providers of health care service plans to disclose to the public and the applicable administering state agency any plan to restructure the delivery of health care.
(In Assembly Health Committee)
AB 810 (Allen-R) - Health Insurance: Community Colleges
Establishes the Part-Time Community College Faculty Health Insurance Program, which allows a district to provide health insurance for part-time faculty, as specified.
(Failed passage in Assembly Appropriations Committee; reconsideration granted)
AB 1101 (Speier-D) - Health Coverage: Contraceptives
Requires health insurers which provide group coverage to provide a variety of federal Food and Drug Administration-approved prescription contraceptive benefits designated by the plan, as specified, if they provide coverage for outpatient prescription drug benefits.
Vetoed by the Governor
AB 1136 (V. Brown-D) - Health Care Service Plans: Drug Substitutes
Provides for the future regulation of pharmaceutical benefits provided by specialized health care service plans, and adopts disclosure requirements in cases where pharmacists receive financial incentives for switching prescribed drugs.
(In Conference)
[PAGE 605]
AB 1152 (Bordonaro-R) - Health Coverage: Traditional Providers
Requires health insurers to file with their regulators a written policy relating to continuity of care for new enrollees receiving services from a non-participating provider. Requires notice of the written policy to be provided to all new enrollees, except those who are not eligible. Provides that the written policy does not apply to an enrollee offered an out-of-network option or other opportunity to continue with a previous health plan or provider.
Chapter 504, Statutes of 1995
AB 1183 (Isenberg-D) - Health Care Service Plans
Requires the Corporations Commissioner to create a public, nonprofit health foundation to receive the assets of any nonprofit health care service plan that has converted to for-profit status or restructured organizationally.
(In Senate Rules Committee)
AB 1266 (Goldsmith-R) - Health Care Service Plans
Requires health care service plans and disability insurer disclosure forms to include information concerning the authorization and denial of health services.
Chapter 535, Statutes of 1995
AB 1360 (Knowles-R) - Health Insurance: Small Employers
Exempts certain trade associations from particular requirements of California's small employer health insurance reforms.
(In Senate Insurance Committee)
AB 1436 (Burton-D) - Health Coverage: First Responder Services
Requires all health care plans and disability insurance policies to include coverage of first responder services, starting January 1, 1996.
(Held under submission in Senate Appropriations Committee)
[PAGE 606]
AB 1469 (Lee-D) - Health Coverage: Minority Communities
States legislative intent that any comprehensive health insurance program adopted by California address the health concerns of ethnic minority communities, as specified.
(In Assembly Health Committee)
AB 1570 (Kuehl-D) - Health Care Service Plans
Adds 2 additional members to the Health Care Service Plan Advisory Committee: a registered nurse employed by a plan to provide direct patient care and a health care worker or provider (other than a physician or registered nurse) employed by a plan to provide direct patient care.
Vetoed by the Governor
AB 1663 (Friedman-D) - Health Insurance: Experimental Services
Provides a process for an independent review of a health insurer's decision to deny coverage for experimental or investigational treatment for a condition with a high probability of causing death.
(In Senate Judiciary Committee)
AB 1755 (Knowles-R) - Health Care: Denial of Coverage
Revises provisions in law relating to denial of coverage by health care service plans and disability insurers for experimental treatments for enrollees with a terminal illness, requires plans to establish an internal review process, and permits plans to establish an independent review process which, if followed, limits the plan's liability in any judicial or regulatory challenge of a coverage determination.
(In Senate Judiciary Committee)
AB 1759* (Knowles-R) - Income Taxes: Health Insurance Premiums
Provides for a maximum tax credit of $500 for self-employed individuals who purchase a health insurance policy during the taxable year, as specified.
(In Senate Revenue and Taxation Committee)
[PAGE 607]
AB 1805 (Friedman-D) - Primary Care Case Management Plans
Requires the Department of Corporations to review Department of Health Services' medical audits of primary care case management plans and to hold a public hearing prior to issuing a license authorizing a plan to operate as a health care service plan.
(On Senate Third Reading File)
AB 1823 (Escutia-D) - Health Care Service Plans
Allows health care service plans to make additional voluntary payments of 25 cents for each enrollee for the purpose of providing medical education loan repayment assistance.
(In Assembly Health Committee)
AB 1829 (Martinez-D) - Health Care Service Plans: Study
Requires the Department of Corporations to study and report to the Legislature regarding the number of full service health care service plans that are accredited by the National Committee on Quality Assurance.
(In Assembly Health Committee)
AB 1840 (Figueroa-D) - Health Care Service Plans
Requires health care service plan agreements to include a provider grievance system. Requires a plan, entities contracting with a plan, and providers to each be responsible for its own acts or omissions of, or the costs of defending others, as specified. Requires notification to enrollees when provider groups are terminated by a plan.
Chapter 774, Statutes of 1995
AB 1841 (Figueroa-D) - Health Coverage: Maternity Benefits
Requires various insurance plans and policies that provide maternity coverage to include a set minimum amount of hours of inpatient care coverage and certain other care, contingent upon the type of delivery and/or other external factors, for the mother and the newborn.
(In Assembly Appropriations Committee)
Similar legislation is AB 1978 (Figueroa-D) which is in Assembly Health Committee.
[PAGE 608]
AB 1912 (Friedman-D) - Health Care: Breast and Prostate Cancer
Requires the Director of Health Services to convene a technical advisory committee to use California Cancer Registry information in formulating an annual report on breast and prostate cancer survival rates by health care plan or insurer.
Vetoed by the Governor
AB 1922 (McPherson-R) - Health Care Service Plans
Requires the Corporations Commissioner to adopt regulations establishing a uniform credentialing application for use by plans, independent practice associations, medical groups and individual providers.
(In Assembly Health Committee)
AB 1959 (Friedman-D) - Health Care Service Plans
Requires the Corporations Commissioner to conduct and publish an annual survey of plans, rating them from best to worst based on certain criteria.
(In Assembly Health Committee)
AB 1960 (Friedman-D) - Health Care: Pregnant Women; Children
Enacts the California Family Health Care Plan Act requiring the Department of Health Services to establish a comprehensive program to provide perinatal services to pregnant women, and child health care to children 18 years of age or under, for all women and children who are ineligible for the Medi-Cal program and who do not have health insurance coverage for all the services provided for under the bill.
(In Assembly Health Committee)
AB 1967 (Friedman-D) - Health Insurance: Experimental procedures
Requires health care service plans and insurers to offer an independent medical expert review of a decision to deny coverage for an experimental treatment.
(In Assembly Health Committee)
[PAGE 609]
AB 1973 (Figueroa-D) - Health Coverage: Domestic Violence
Prohibits health care service plans and disability insurers from denying, restricting, limiting or terminating plan coverage because the enrollee is a victim of domestic violence.
Chapter 602, Statutes of 1995
Similar legislation is AB 115 (McDonald-D) which is on the Senate Inactive File.
[PAGE 610]
One of the major issues which came before the Legislature and which was successfully resolved by legislation going to the Governor related to earthquake insurance.
SB 58 (Lewis-R) - Earthquake Insurance: Availability
Repeals the mandate to offer earthquake insurance for residential property. Reinstates the mandate in the future if the Insurance Commissioner certifies that a federal program has been implemented. Specifies the reasons an insurer may choose to not renew a policy.
(In Conference)
SB 266 (Rosenthal-D) - Earthquake Insurance
Allows insurers to offer, within the existing statutory mandate earthquake insurance, a reduced coverage earthquake insurance policy.
(In Conference)
SB 395 (Rosenthal-D) - Department of Insurance: Retrofitting Program
Requires the Department of Insurance to establish a residential grant and loan program to pay for retrofitting low- and moderate-income homes. Makes owner-occupied dwellings eligible for both grants and loans, and dwellings that are not owner-occupied only eligible for loans in order to minimize the risk of earthquake damage to those dwellings and thereby reduce the costs of residential earthquake insurance. Requires the Department of Insurance to match any federal funds available for retrofitting, if any exist. Appropriates $4.4 million from the California Residential Earthquake Recovery Fund to the Department of Insurance for this program. Goes into effect on January 1, 1996 and sunsets on July 1, 2000.
Chapter 899, Statutes of 1995
SB 424 (Marks-D) - Earthquake Insurance
Specifies that earthquake policy insurers are mandated to offer coverage against the risk of loss or damage from the peril of earthquake on the primary dwelling, excluding appurtenant structures and allows the California FAIR Plan Association to provide earthquake property insurance coverage in conjunction with the issuance of a policy of basic residential property insurance, as specified.
(In Conference)
[PAGE 611]
SB 882* (Rosenthal-D) - Earthquake Insurance: Mediation
Requires the Department of Insurance (DOI) to establish a pilot program for mediating disputes over claims arising out of the Northridge earthquake of 1994. Requires the DOI to establish standards for mediators after consulting with consumer groups, policyholder groups, insurers, and the State Bar. Allows the commissioner to set a fee of $400 for each dispute mediated. Sunsets July 1, 1998.
Chapter 848, Statutes of 1995
SB 1114 (Hayden-D) - Earthquake Insurance: FAIR Plan
Allows the California FAIR Plan to issue a stand alone earthquake insurance policy in satisfaction of an insurer's obligation to offer earthquake insurance.
(Failed passage in Senate Insurance Committee; reconsideration granted)
SB 1327* (Johnston-D) - Insurance Inspection
Provides that a person may for a fee adopt, publish, or use a geographically based earthquake assessment system or program for the purpose of requiring earthquake insurance in connection with a loan secured by a condominium project or an individual unit of a condominium project unless the analytical assumptions and methodology used in the assessment have been approved by the Insurance Commissioner, as specified.
(On Assembly Inactive File)
AB 13 (McDonald-D) - California Earthquake Authority
Creates the California Earthquake Authority which is allowed to issue policies of basic residential earthquake insurance under specified conditions. These conditions include a determination by the Internal Revenue Services that the authority is exempt from federal income tax, a requirement for certain commitments from insurers and reinsurers, and enactment of subsequent statute that expressly allows the authority to issue policies of insurance. Provides for the authority to obtain its initial operating capital from insurers representing not less than 75% of the market for residential property insurance in California. If the authority's available capital is reduced to certain levels through payment of claims, the authority would be able to assess participating insurers in order to raise additional funds. Requires the authority to issue revenue bonds or provide other debt financing if the authority's resources are exhausted following an earthquake, to be repaid by surcharges on authority policyholders, up to specified amounts.
[PAGE 612]Appropriates $500,000 from the California Residential earthquake Recovery Fund. Provides for a portion of investment income from the California Earthquake Authority Fund created by the bill to be placed into a subaccount to be available for grants and loans to dwelling owners for retrofit purposes.
Chapter 944, Statutes of 1995
AB 1366 (Knowles-R) - Earthquake Insurance
Redefines the minimum leverage necessary for an insurer to satisfy the mandate to offer earthquake coverage to homeowners. Allows insurers to sell alternative or additional coverages, as long as the basic policy is one of the alternatives offered. Provides that the FAIR Plan is to offer the newly-defined basic insurance policy specified in the bill, subject to notice and disclosure requirements. Requires a detailed notice/disclosure be provided by insurers at the time a new policy is sold, and to accompany renewal notices when no-frills policy is being offered to policyholders who previously had a broader coverage.
Chapter 939, Statutes of 1995
[PAGE 613]
SB 87 (Kopp-I) - Insurance Commissioner: Outside Counsel
Requires the Department of Insurance to obtain the Attorney General's written consent prior to employment of outside counsel in any judicial proceeding.
Chapter 893, Statutes of 1995
SB 188* (Russell-R) - Life Insurance: Separate Accounts
Provides technical corrections to legislation enacted last year involving guaranteed investment contracts, and allows life insurers to issue products associated with a portfolio not owned or possessed by the insurer.
Chapter 419, Statutes of 1995
SB 193 (Costa-D) - Underwritten Title Companies
Requires title insurers that are associated with an underwritten title company (UTC) to be liable for the UTC's escrow or subescrow account shortages in the event that it is placed into bankruptcy, receivership, or conservatorship by the Department of Insurance.
Chapter 408, Statutes of 1995
SB 267 (Rosenthal-D) - Homeowner's Insurance
Limits the ability of real estate lenders to reject a borrower's choice of homeowners insurance coverage for any reason that the lender would not impose on the insurer chosen by the lender.
Chapter 857, Statutes of 1995
SB 272 (Russell-R) - Insurance: Agent Liability
Grants immunity to surplus line brokers and other insurance agents and brokers relating to the placement of insurance if the insurance is placed with an admitted insurer, or an non-admitted insurer on the Department of Insurance's approved list of surplus line insurers.
(In Senate Insurance Committee)
[PAGE 614]
SB 306 (Rosenthal-D) - Insurance: Consumer Protection
Enacts various consumer protection measures associated with insurance policies, including a statement of reasons for cancellation or non-renewal and providing written notice of premium increases.
Chapter 791, Statutes of 1995
SB 351 (Peace-D) - Insurance Agents and Brokers
Requires insurers to continue to deal with terminated brokers, as well as agents, with respect to the renewal of insurance coverage in specified cases.
Chapter 921, Statutes of 1995
SB 354 (Rogers-R) - Insurance Agents and Brokers
Allows agency management and business practice courses to satisfy a portion of the continuing education requirements for insurance agents and brokers, and repeals the sunset on the current continuing education program.
(In Assembly Appropriations Committee)
SB 376 (Rosenthal-D) - Insurance: Reports
Requires the Insurance Commissioner to issue a report to the Governor and the Legislature containing an annual workplan that identifies and describes major regulatory, legislative and other significant initiatives the commissioner intends to direct the department to pursue in that calendar year. Deletes a reporting requirement that generally duplicates existing law.
Vetoed by the Governor
SB 455 (Lewis-R) - Insurers: Redomestication
Provides that the Secretary of State is to file a certificate of redomestication of an insurance corporation if redomestication has been approved by the Insurance Commissioner. Also states this is declaratory of existing law.
Chapter 702, Statutes of 1995
[PAGE 615]
SB 464 (Rosenthal-D) - Property Insurance
Limits an insurer's ability to cancel or not renew a homeowner's policy if any claim that affects insurability due an officially declared disaster is still pending and unresolved against the insurer, and prevents the homeowner from securing replacement coverage from another insurer, as specified.
(Failed passage in Assembly Insurance Committee; reconsideration granted)
SB 465 (Rosenthal-D) - Insurance Fraud
Expands existing prohibitions against knowing use of runners and cappers for the purpose of committing acts constituting insurance fraud.
Chapter 574, Statutes of 1995
SB 603 (Rosenthal-D) - Insurance Adjusters
Requires insurance adjusters directly employed by insurance companies to be licensed by the Department of Insurance in the same manner as independent adjusters are licensed.
(Failed passage in Senate Insurance Committee)
SB 639 (Peace-D) - Residential and Commercial Insurance
Makes it a misdemeanor/felony for a contractor to offer an insurer or its agents any fee, commission, profit sharing, etc., for referring an insured to that contractor where the amount exceeds $400 and a misdemeanor in all other cases.
Chapter 373, Statutes of 1995
SB 733 (Lewis-R) - Insurance: Excess Funds Investments
Allows an investment pool established among affiliated insurers to be organized as a limited liability company, as specified.
Chapter 197, Statutes of 1995
[PAGE 616]
SB 781 (Lewis-R) - Insurance: Foreign Investments
Allows an insurer having admitted assets in excess of $500 million to acquire any foreign investment, subject to specified restrictions, and increases the percentage of total admitted assets that may be foreign investments from 4% to 12% for these insurers. Also authorizes insurers having admitted assets between $100 million and $500 million to acquire an increased percentage of foreign investments, as specified.
Chapter 414, Statutes of 1995
SB 879 (Senate Insurance Committee) - Insurance: Disaster Revenue Bonds
Allows the State Treasurer to issue revenue bonds at the request of the California Insurance Guarantee Association (CIGA) following a catastrophic disaster to help pay claims of insolvent insurers. Provides that the bonds would be repaid by assessments imposed on CIGA member insurers.
(In Assembly Insurance Committee)
SB 892 (Leslie-R) - Insurance: Underwritten Title Companies
Requires title insurers liable for deficiencies in escrow accounts held by insolvent underwriter title companies to deposit their proportionate share directly into an account established for the purpose of reimbursement to escrow account holders within 3 months of written notification.
Chapter 700, Statutes of 1995
SB 907 (Polanco-D) - Insurance: Underwritten Title Companies
Requires persons engaged in preparing title documents upon which a title insurer writes title policies to be licensed as an underwritten title company.
Chapter 433, Statutes of 1995
SB 1091 (Russell-R) - Interstate Insurance Receivership Compact
Enacts The Interstate Insurance Receivership Compact, and requires California to be a member of the compact and the Interstate Insurance Receivership Commission which is to promote uniform receivership laws and operations and coordinate actions between insurer receiverships and guaranty associations.
Chapter 843, Statutes of 1995
[PAGE 617]
SB 1138 (Peace-D) - Insurance: Fraudulent Claims
Requires the Insurance Commissioner to report on an annual basis and in accordance with the reporting requirements for special investigative units on their efforts, including procedures, in determining, investigating and reporting suspected fraudulent claims.
(Failed passage in Assembly Insurance Committee; reconsideration granted)
SB 1179 (Rosenthal-D) - Risk-Based Capital
Applies risk-based capital statutory requirements, currently applicable only to life and health insurers, to property/casualty insurers as well.
(In Assembly Insurance Committee)
SB 1217 (Polanco-D) - Insurers: Community Development Investment
Encourages admitted insurers to make community development investments designed to promote job creation, small business development or microenterprise development in low-income or very-low-income communities. Requires the Insurance Commissioner to compile information and to report concerning these investments by insurers.
(On Senate Inactive File)
Similar legislation is AB 1278 (McDonald-D), AB 1557 (Lee-D) and AB 1619 (Tucker-D), all of which are in the Assembly Insurance Committee.
SB 1228* (Senate Insurance Committee) - Insurance Fraud
Expands the definition of insurance fraud to include the submission of a knowingly false or fraudulent claim for the payment of an injury.
Chapter 573, Statutes of 1995
Similar legislation is AB 1746* (Knowles-R), which is in Senate Insurance Committee.
SB 1311 (Hughes-D) - Insurance Availability Study
Creates an Insurance Availability Study Commission in the Department of Insurance to conduct research concerning the availability of insurance.
(In Senate Rules Committee)
[PAGE 618]
SB 1328 (Haynes-R) - Life Insurers: Funding Agreements
Provides that funding agreements issued by life insurance companies are entitled to "priority" status in the event of an insolvency of the issuing insurer as specified.
Chapter 795, Statutes of 1995
SB 5X (Rosenthal-D) - Flood Insurance
Requires the Insurance Commissioner to adopt regulations to encourage the purchase and maintenance of flood insurance and to consult with specified interested parties in developing those regulations. Requires the Department of Insurance to monitor efforts undertaken to promote the purchase and maintenance of flood insurance.
Chapter 9, Statutes of 1995-96, First Extraordinary Session
SB 7X (Hayden-D) - Flood Insurance
Prohibits, except for disaster assistance that would not be a substitute for insurance and certain emergency assistance, that disaster assistance from being provided to a person required to maintain flood insurance by state or federal law, who has cancelled or failed to maintain that coverage.
Chapter 8, Statutes of 1995-96, First Extraordinary Session
AB 23 (Archie-Hudson-D) - Fire and Casualty Broker-Agents
Increases the required bond which a licensed fire and casualty broker-agent must post from $5,000 to $10,000.
Chapter 347, Statutes of 1995
AB 115 (McDonald-D) - Insurance: Domestic Violence Victims
Prohibits life insurers, health care service plans and disability insurers from discriminating on the basis that an applicant or insured is the subject of domestic violence.
(On Senate Inactive File)
[PAGE 619]
AB 308 (Johnson-R) - Risk Retention Groups
Changes, with regard to risk retention groups, the definition of "domicile" and alters provisions regarding registration, including requiring specified information and fees to maintain registration.
Chapter 352, Statutes of 1995
AB 328 (Knowles-R) - Insurance: Surplus Lines
Provides that so-called "white listed" non-admitted insurance carriers and reinsurers which qualify ceding insurers for financial statement credits be excused from bonding requirements.
(In Senate Insurance Committee)
AB 475 (W. Murray-D) - Funeral Insurance
Allows the issuance of limited death benefit insurance contracts which pay benefits over a period not to exceed 2 years.
Chapter 340, Statutes of 1995
AB 582 (Hoge-R) - Insurance
Provides that insurers are not to agree with each other to violate the antitrust or unfair business practice laws. Clarifies the use of advisory manuals approved by the Insurance Commissioner.
(Failed passage in Assembly Insurance Committee; reconsideration granted)
AB 606 (Richter-R) - Insurance: Day Care
Provides homeowners' associations with the power to require family day care homes located on their property to maintain and pay for liability insurance. Provides that the family day care home can be required to pay for coverage of the homeowners' association.
(In Senate Health and Human Services Committee)
[PAGE 620]
AB 702 (Cunneen-R) - Insurance Licensees
Requires the Department of Insurance licensees to have their license number printed on business cards, written price quotations, and printed advertisements starting January 1, 1997. Does not apply to certain advertisements of motor clubs. Allows the Department of Insurance to levy a fine for violation of its provisions which is to be deposited into the Insurance Fund.
Chapter 217, Statutes of 1995
AB 842 (Hoge-R) - Surplus Line Insurance: Export List
Allows the Insurance Commissioner to establish an export list identifying the lines of insurance that are currently not available from admitted insurers, as specified. Provides that the list may not include auto insurance, homeowner's insurance or any insurance written by the California FAIR Plan.
Chapter 588, Statutes of 1995
AB 852 (Hoge-R) - Liability Insurance
Allows medical insurers to impose remedial underwriting actions on policyholders pursuant to advisory committee recommendations, and exempts such actions from administrative and judicial review, as specified.
Chapter 600, Statutes of 1995
AB 853 (Hoge-R) - Insurance: Mergers
Establishes a comprehensive scheme for mutual and reciprocal insurers (organized after 1974 to provide medical malpractice insurance) to merge with other insurers.
Chapter 728, Statutes of 1995
AB 859 (Campbell-D) - Insurance: Notice of Non-renewal
Provides that an insurer must attach a premium and loss history report for the preceding 5 years to the notice of non-renewal, for certain types of commercial insurance, and to the notice of workers' compensation policies.
(Failed passage in Assembly Insurance Committee; reconsideration granted)
[PAGE 621]
AB 1024 (Aguiar-R) - Insurance
Allows admitted insurers to assume or reinsure the liabilities of non-admitted insurers, so long as the transaction does not circumvent specified provisions of law. Specifies procedures for resolving outstanding unpaid premiums and how they would be set off against insurance company liability during liquidation and rehabilitation proceedings.
Chapter 580, Statutes of 1995
AB 1053 (Tucker-D) - Insurance
Allows all insurance companies to deposit with the Insurance Commissioner, where applicable, securities in "book entry" form, in a manner similar to that authorized for security deposit by workers' compensation insurers.
Chapter 466, Statutes of 1995
AB 1274 (McDonald-D) - Insurance: Insolvent Companies
Makes various changes in the Insurance Commissioner's authority regarding the liquidation of insolvent insurance companies taken into consideration by the commissioner.
Chapter 578, Statutes of 1995
AB 1276 (McDonald-D) - Financial Guaranty Insurance
Provides for an association of surety insurers for the purpose of apportioning insurance coverage to contractors unable to obtain that insurance.
(In Assembly Insurance Committee)
AB 1307 (Cunneen-R) - Surplus Line Brokers
Adds surplus line brokers to the administrative provisions of the California Tax on Insurers. Conforms the electronic fund transfer requirements for the insurance tax with the Sales and Use Tax Law.
Chapter 721, Statutes of 1995
[PAGE 622]
AB 1308 (Cunneen-R) - Property Insurance
Places a number of restrictions and requirements on the handling of claims for homeowner's insurance following a disaster and requirements on insurers at the time of sale of the insurance.
(In Assembly Insurance Committee)
AB 1485 (Sher-D) - Life and Disability Insurance
Includes certified financial planners within the definition of "investment advisor" which has the effect of exempting them from licensure under the Department of Insurance as a life and disability insurance analyst.
(In Senate Insurance Committee)
AB 1611 (Archie-Hudson-D) - Mortgage Insurance
Allows mortgage guarantee insurers to cover a portfolio of junior liens, rather than covering individual loans. Provides that the risk for the entire portfolio could not exceed 20% of the original principal amount of mortgage loans secured by junior liens.
Chapter 270, Statutes of 1995
AB 1692 (Johnson-R) - Insurance Commissioner: Report
Changes the reporting requirements for liability insurers providing coverage to public entities and malpractice insurers to provide certain statistics to the Insurance Commissioner, from an annual basis to an "as requested" basis. Repeals provisions of the Insurance Code requiring the Department of Insurance to maintain a local government information and statistical analysis section in its organization for the purpose of collecting certain data received from insurers.
Chapter 586, Statutes of 1995
AB 1754 (Knowles-R) - Insurance: Ombudsman
Requires the Department of Insurance to establish an ombudsman's office, as specified.
(In Assembly Insurance Committee)
[PAGE 623]
AB 1839 (Figueroa-D) - Insurance: Complaints
Allows the Department of Insurance to request an insurer/licensee to provide copies of any and all documents regarding a complaint or inquiry, except as specified. Allows the Department of Insurance to charge a fee to insurers that fail to provide the requested information in a timely manner.
(Held at Senate Desk)
[PAGE 624]
NOTE: *DENOTES URGENCY LEGISLATION
[PAGE 625]
SB 81* (Marks-D) - Closed Military Bases: Land Use
Allows buildings on closed military bases to comply with specified regulations in a graduated manner over a period of 10 years, if certain conditions are met.
Chapter 469, Statutes of 1995
SB 448 (Haynes-R) - Military Bases: Public Entities
Requires the Public Utilities Commission to allow specified rate discount programs to companies or industries whose facilities are located on a federal military base that has been scheduled to be or actually closed or realigned since January 1, 1992. Sunsets January 1, 1999.
Chapter 969, Statutes of 1995
SB 793 (Hughes-D) - Military Base Closure: School Finance
Changes the Average Daily Attendance decline threshold as it relates to military base closures.
Chapter 651, Statutes of 1995
SB 1180 (Calderon-D) - Military Base Revise Plans: Environmental Quality
Allows a lead agency responsible for the preparation and certification of a closed military base reuse plan to use the physical conditions present at the time the closure decision was made as a "baseline" for evaluating environmental impacts, requiring the consideration of the plan's effects relative to that baseline so as to grandfather in existing conditions on the base, as specified.
Chapter 861, Statutes of 1995
AB 37* (Pringle-R) - Military Base Reuse: El Toro
Designates the local redevelopment authority recognized by the U.S. Department of Defense, Office of Economic Adjustment, as the single local reuse entity for the Marine Corps Air Station, El Toro.
(On Assembly Third Reading File)
[PAGE 626]
AB 557 (Baca-D) - Norton Air Force Base
Modifies existing law to allow the use of Petroleum Violation Escrow Account funds to rehabilitate non-Department of Defense Finance and Accounting Service Center-related structures at Norton Air Force Base.
Chapter 953, Statutes of 1995
AB 1621* (McDonald-D) - Military Facilities
Allocates $270,000 from the General Fund for the Long Beach Naval Shipyard, the Point Mugu Naval Air Station, McClellan Air Force Base and Sierra Depot retention efforts.
(Failed passage on Senate Floor; on Senate Inactive File)
AB 1648 (Conroy-R) - Military Base Conversion: Redevelopment
Makes numerous revisions to existing Military Base Redevelopment Law which include expanding the definition of blight, altering school pass-through formulas, and deleting the requirement for a fiscal review committee.
(In Assembly Housing and Community Development Committee)
AB 1670* (Takasugi-R) - Local Agency Military Base Recovery Area
Expands the definition of qualified employee for purposes of the enterprise zone, program area and local agency military base recovery area hiring credits, as specified.
(In Assembly Revenue and Taxation Committee; and held under submission)
AJR 2 (Takasugi-R) - Point Mugu Naval Air Station
Requests the federal Base Realignment and Closure Commission, the President and Congress to take steps necessary to keep the Point Mugu Naval Air Weapons Station off of the military base closure list.
(Died in Assembly Consumer Protection, Governmental Efficiency and Economic Development Committee)
[PAGE 627]
AJR 5 (W. Murray-D) - Long Beach Naval Shipyard
Requests the President and Congress to provide for the continued operation of the Long Beach Naval Shipyard.
Resolution Chapter 1, Statutes of 1995
AJR 9 (Weggeland-R) - Norco Naval Warfare Assessment Division
Requests the Base Realignment and Closure Commission, the President and Congress to provide for the continued operation of the Norco Naval Warfare Assessment Division.
Resolution Chapter 3, Statutes of 1995
AJR 14 (Hannigan-D) - Veterans' Hospital Facilities
Requests the President and Congress to take all steps necessary to ensure the establishment, construction, and retention of the veterans' hospital facilities at Travis Air Force Base.
Resolution Chapter 77, Statutes of 1995
AJR 21 (W. Murray-D) - McClellan Air Force Base
Requests the Defense Base Closure and Realignment Commission, the President and Congress to consider the strategic importance of McClellan Air Force Base and to oppose proposals to close the base.
Resolution Chapter 17, Statutes of 1995
AJR 40 (Alby-R) - Military Base Closures
Requests the President and Congress to reject the entire base-closure list to be submitted by July 1, 1995 by the Defense Base Closure and Realignment Commission. Requests the President, in consultation with the Congress, to develop a more balanced policy with regard to the security needs of the United States.
Resolution Chapter 46, Statutes of 1995
[PAGE 628]
NOTE: *DENOTES URGENCY LEGISLATION
[PAGE 629]
SB 47 (Haynes-R) - State Supplemental Payments
Limits the number of Supplemental Security Income/State Supplemental Payment (SSI/SSP) recipients for whom an individual can become the representative payee and SSP payments made to persons whose eligibility for the SSI program is based solely on addiction to controlled substances.
(In Senate Health and Human Services Committee)
SB 180 (Ayala-D) - Aid to Families with Dependent Children (AFDC)
Requires persons receiving AFDC aid payments to participate in the Greater Avenues for Independence (GAIN) program or in another approved training program. Provides for the reduction in the maximum aid payment made under the program, as specified.
(In Senate Health and Human Services Committee)
SB 201 (Costa-D) - AFDC
Requires an unmarried, under 18 AFDC-eligible parent and infant to live with a parent, legal guardian, or other adult relative or in a supportive living arrangement, as a condition of receiving AFDC payment grants. Allows exceptions in specified cases. Provides that the grandparent's income would be considered available to the teen parent, but not the grandchild. Requires an evaluation and implementation is subject to availability of federal funds and appropriate federal waivers. Sunsets October 1, 1999.
(In Assembly Human Services Committee)
SB 278 (Killea-I) - In-Home Supportive Services (IHSS)
Extends the 1997 sunset on the "managed care" contract option in the IHSS program that was established in the 1993 trailer bill to July 1, 2001. Also increases the share of state savings that a county may retain from 55% to up to 100%, reduces to 10% the discount the contractor must agree to, permits non-elderly and more severely impaired clients to voluntarily participate and permits the county to shift to the contractor the costs of conducting quality control and utilization review audits.
(In Assembly Human Services Committee)
[PAGE 630]
SB 321 (Russell-R) - AFDC: Foster Care Relative Caretakers
Provides that relative foster parents of a child who seek adoption of the child would continue to receive foster care payments during the period between the termination of parental rights and the finalization of the adoption.
Chapter 418, Statutes of 1995
SB 356 (Campbell-R) - AFDC: Child Care
Eliminates 2 existing programs, the child care disregard and the supplemental child care program, and replaces them with a new program under which the county welfare department would make advance payments for child care. Also extends the period of eligibility for transitional child care-type benefits beyond 12 months, as specified.
Vetoed by the Governor
SB 404 (Haynes-R) - AFDC
Authorizes private entities to submit bids for the performance of public social services eligibility determinations. Also entitles every AFDC recipient to receive a job assistance voucher.
(In Senate Health and Human Services Committee)
SB 476 (Haynes-R) - AFDC Recipients: Job Search
Requires the Department of Social Services to implement a pilot program to postpone applications for AFDC benefits for 45 days during which time the applicant is required to participate in the newly established AFDC Job Search Program. Provides for regular AFDC benefits to applicants unemployable after participating in the program for 60 days.
(In Senate Health and Human Services Committee)
SB 493* (Maddy-R) - Health Education and Services
Alters the amount of tobacco tax (Proposition 99) revenue deposited in various accounts for the 1995-96 fiscal year only to fund indigent health care services. Appropriates $63.7 million of Proposition 99 funds from the altered accounts. Also transfers the provisions governing the perinatal outreach program from the Welfare and Institutions Code to the Health and Safety Code.
Chapter 194, Statutes of 1995
[PAGE 631]
SB 547 (Mello-D) - Long-Term Care
Requires the Department of Health Services to establish a pilot program at up to 5 sites to integrate the delivery and funding of long-term care services, and to evaluate the results. Provides that each site would be a long-term care services agency which would be paid a capitated rate and would control utilization of services.
Chapter 874, Statutes of 1995
SB 597 (Wright-R) - Children's Services
Enacts the Children's Interagency Services Act of 1995 to require all state and county agencies serving children to collaborate at the policy, management and service levels to provide a coordinated, goal-oriented system of care.
(In Senate Health and Human Services Committee)
SB 598 (Rosenthal-D) - Children's Health
Requires the Department of Health Services to implement the California Children's Health Program to provide comprehensive health care service to children up to 18 years of age with family incomes under a certain amount.
(In Senate Health and Human Services Committee)
SB 634 (Kopp-I) - Public Social Services
Expands the laws permitting the disclosure of confidential information to law enforcement concerning social services applicants and recipients against whom exist outstanding misdemeanor and felony arrest warrants.
Chapter 227, Statutes of 1995
SB 853 (Lewis-R) - Aid Payments: Bail Posting
Prohibits the acceptance of any portion of any payments received under the AFDC program or general assistance for purposes of posting bail.
(In Senate Health and Human Services Committee)
[PAGE 632]
SB 965 (Watson-D) - Children and Families
Requires child care providers subject to Trustline registration to also secure 6 hours of child development education and training, implements a teen pregnancy disincentive which would require pregnant and parenting teens to live with their parents with certain exemptions, and requires the Department of Social Services to implement a pilot program to inform AFDC recipients of the benefits of employment.
(In Assembly Appropriations Committee)
SB 969 (Watson-D) - Intensive Foster Care
Makes intensive treatment foster care services available statewide to allow emotionally disturbed foster children to be treated in family-based settings.
Chapter 832, Statutes of 1995
SB 971 (Watson-D) - Human Services
Requires the Department of Social Services (DSS) to apply for any federal demonstration funds appropriated to implement a pilot program on child support assurance which would guarantee a child support payment to families with established support orders under certain conditions. Provides that the director of DSS would apply only if it is determined that the program would be cost neutral to the state and participating counties. In addition, requires DSS to report annually to the Legislature on the status of all demonstration projects.
(Failed passage in Assembly Appropriations Committee; reconsideration granted)
SB 973 (Watson-D) - AFDC Eligibility: Small Businesses
Provides that, for the purposes of computing an AFDC grant, a county shall deduct valid business-related expenses from business income. Requires the Employment Development Department to convene a Micro-Enterprise Coordinating Council. Requires the Department of Social Services, if federal approval is obtained, to establish 3-year demonstration projects to provide entrepreneurial training and technical assistance to AFDC recipients participating in GAIN.
(In Assembly Appropriations Committee)
[PAGE 633]
SB 1044 (Hughes-D) - Family Preservation Services
Provides for the establishment in up to 4 counties a 2-year pilot project designed to link family preservation and support funds with child care and development funds.
(In Senate Health and Human Services Committee)
SB 1045 (Hughes-D) - Foster Parents
Requires the Department of Social Services to include prevention of teenage pregnancy in supplemental curricula the department develops for the training of new foster parents.
Chapter 281, Statutes of 1995
SB 1110 (Maddy-R) - AFDC: Restricted Payments
Allows counties to make restricted payments to AFDC recipients, in lieu of cash aid, under the regular AFDC program as well as under the Homeless Assistance Program. Also prohibits a landlord from retaining any portion of a security deposit or requiring last month's rent in advance if he/she accepts restricted payment of rent.
Chapter 838, Statutes of 1995
SB 1144 (Watson-D) - California Children's Health Program
Requires the Department of Health Services to establish a comprehensive children's health program to children from birth to 18 years of age with family incomes up to 250% of the poverty level. States intent to address the needs of the uninsured who do not have Medi-Cal and to ensure access to health services.
(In Senate Health and Human Services Committee)
SB 1262 (Alquist-D) - Non-Relative Foster Care
Requires the establishment of a pilot project, in 5 counties, allowing the placement of a child in a non-licensed, non-relative, home.
Chapter 509, Statutes of 1995
[PAGE 634]
SB 1344* (Solis-D) - Social Services: County Administration
Relieves counties of administrative cost match requirements for AFDC, Food Stamps, and IHSS programs if certain conditions are met.
Chapter 312, Statutes of 1995
SCR 27 (Watson-D) - Income Assurance Programs
Requests that the Department of Social Services apply for participation in a federal child support assurance pilot program which would guarantee a child support payment to families with established support orders under certain conditions.
Resolution Chapter 85, Statutes of 1995
SB 22XX (Leonard-R) - County General Assistance Programs
Makes the general assistance program discretionary for each county.
(In Senate Health and Human Services Committee)
AB 9 (Goldsmith-R) - County General Assistance Programs
Permits counties to discontinue general assistance (GA) benefits, under specific circumstances, to able-bodied, mentally competent individuals after having received aid for 3 months, whether or not the months are consecutive, during a 12-month period.
Also expresses legislative intent to reverse the decision in the case of Washington v the Board of Supervisors of San Diego County (18 Cal. App. 4th 981). In this decision, the court found that, under existing law, the county could not discontinue GA after 3 months during a 12-month period.
(Failed passage in Assembly Human Services Committee; reconsideration granted)
AB 14 (W. Murray-D) - AFDC: Eligibility: School Attendance
Requires the Department of Social Services to implement a demonstration project in Los Angeles County, as specified, that would require the county welfare department to impose specified sanctions against families that receive aid under the AFDC program when they have children in the sixth grade or higher who are truant.
(Failed passage in Assembly Human Services Committee; reconsideration granted)
[PAGE 635]
AB 18 (Thompson-R) - Aid Payments and Benefits: Limitations
Imposes a 2-year limit on the eligibility of any able-bodied adult to receive AFDC aid and other benefits. Also imposes a requirement that a child attend school or a job training program except as specified.
(In Assembly Human Services Committee)
AB 38 (Pringle-R) - General Assistance: Ineligibility
Allows counties to prohibit persons who have been "sanctioned" by other assistance programs for fraud from being eligible for county general assistance.
Chapter 667, Statutes of 1995
AB 45 (Burton-D) - Orphan Asylums
Authorizes the Governor to establish a system of state orphan asylums, as specified, and requires the Department of Social services to provide direct gruel services in the orphan asylums.
(Failed passage in Assembly Human Services Committee; reconsideration granted)
AB 48 (W. Murray-D) - AFDC: Grant Amount: Child Support
Requires the district attorney to pay AFDC families any amount collected as current child support; retroactively eliminate the 70% cap on the cost-of-living allotment (COLA) in the Minimum Basic Standard of Adequate Care; requires the Department of Social Services to re-evaluate the adequacy of the needs standards every 3 years; and deletes the automatic reduction to COLAs in years when General Fund appropriations for AFDC are reduced.
(Failed passage in Assembly Human Services Committee; reconsideration granted)
AB 98 (Olberg-R) - AFDC
Limits the maximum AFDC grant to the amount of income an individual would earn working 40-hours a week at minimum wage.
(Failed passage in Assembly Human Services Committee; reconsideration granted)
[PAGE 636]
AB 103 (W. Murray-D) - AFDC: Prenatal Care
Requires the Department of Social Services to implement a pilot program in Los Angeles County to require additional specified services and benefits to a pregnant recipient of AFDC.
(Failed passage in Assembly Human Services Committee; reconsideration granted)
AB 109 (Bowler-R) - Food Stamps
Decreases the threshold amount from $400 to $100 for felony Food Stamp Program violations and modifies sentencing requirements.
(In Assembly Public Safety Committee)
AB 154 (Richter-R) - County General Assistance Programs
Makes county general assistance programs discretionary rather than mandatory.
(In Assembly Human Services Committee)
AB 159 (W. Murray-D) - AFDC: Foster Care
Expands the scope of the state AFDC-Foster Care program by authorizing payments on behalf of otherwise eligible children living with relatives, including legal guardians, provided the relative's income is below a level to be set at approximately 300% of the AFDC minimum basic standards of adequate care.
(Failed passage in Assembly Human Services Committee; reconsideration granted)
AB 162 (W. Murray-D) - Public Assistance: Applicant Information
Allows Los Angeles County to implement a 3-year pilot project to provide AFDC and Medi-Cal clients with information concerning sex education, HIV virus, birth control methods, family planning services, risk of drug abuse during pregnancy, and federally qualified health center services.
Chapter 462, Statutes of 1995
[PAGE 637]
AB 199 (K. Murray-D) - Public Social Services
Authorizes persons receiving aid under AFDC, general assistance and the Food Stamp Program to be fingerprinted, as specified.
(In Assembly Human Services Committee)
AB 209 (Granlund-R) - AFDC: Homeless Assistance
Requires any recipient who is receiving or has received homeless assistance, through the AFDC program, to have those payments restricted. Also restricts those payments as a condition of the rental agreement if the landlord requires it.
(Failed passage in Assembly Human Services Committee; reconsideration granted)
AB 261 (Kuehl-D) - AFDC: Child Support Actions
Authorizes a custodial parent to become a participant in any action for child support in which the custodial parent is not a party. Also authorizes a custodial parent to become a participant in any action brought by the district attorney or child support for children receiving AFDC benefits.
(In Senate Judiciary Committee)
AB 275 (Baca-D) - AFDC: Fingerprinting
Allows Orange and San Bernardino Counties to establish pilot projects which would test the effectiveness of fingerprinting or fingerimaging in eliminating multiple enrollments by public assistance applicants and recipients.
(In Conference Committee)
AB 319 (Archie-Hudson-D) - GAIN Pilot Programs
Allows counties to use up to 20% of their funding for the GAIN program to establish pilot projects designed to provide employment related services to non-federal target groups within the AFDC population
Chapter 521, Statutes of 1995
[PAGE 638]
AB 320 (Burton-D) - Mental Health Funding
Makes a change in the allocation of growth funds under mental health realignment. Increases by $5 million the amount of base restoration funds that go to the counties of Napa, Solano, San Mateo, Marin, and San Francisco, which were protected from large reductions in mental health funding in 1990.
Chapter 957, Statutes of 1995
AB 327 (Hannigan-D) - Foster Care
Allows 5 counties to establish 5-year pilot projects consisting of a new category of foster care placement, a "long-term kinship care" category. Provides that in a "kinship care" placement, relatives who are currently receiving the foster care rate would not have to comply with the existing supervision requirements of the court and the county welfare department. Provides that children in the "kinship care" placements would continue to receive the AFDC-Foster Care payment rate.
Chapter 453, Statutes of 1995
AB 388 (Granlund-R) - AFDC: Job Search
Allows Riverside and up to 4 other counties to test the impact of requiring 5 days of job club or job search activities, or both, to be completed by adults applying for aid under the AFDC program, as a condition of aid.
(Failed passage in Senate Health and Human Services Committee; reconsideration granted)
AB 416 (Escutia-D) - Food Stamps
Requires the Department of Social Services (DSS) to consult with a maximum of 5 nonsectarian nonprofit organizations which would make applications for food stamps available through existing unemployment offices, homeless shelters, and emergency food distribution sites. Requires DSS to make the applications available to the organizations at cost.
(Failed passage in Assembly Human Services Committee; reconsideration granted)
[PAGE 639]
AB 489* (Allen-R) - California REACH Program
Enacts the California Reaching for Early Access for Children's Health (REACH) Program to provide supplementary primary and preventive health care services to children under 6 years of age. Authorizes the transfer of up to $782,000 from local assistance to state operations for administrative expenses.
(On Assembly Unfinished Business File)
AB 528 (Setencich-R) - State Supplemental Payments
Prohibits State Supplemental Payment benefits to any recipient whose eligibility for benefits is based upon his/her addiction to one or more controlled substances or alcohol.
(Failed passage in Assembly Human Services Committee; reconsideration granted)
AB 535 (Archie-Hudson-D) - Public Social Services Benefits
Requires reimbursement of public social services benefits when ability to support is found in a support action. Sets forth certain notice requirements.
(In Assembly Judiciary Committee)
AB 674* (Poochigian-R) - Children's Services Pilot Program
Expands the number of counties participating in the children's services pilot program from 5 to 6 and extends the sunset date from July 1, 2001 to July 1, 2002.
Chapter 471, Statutes of 1995
AB 707 (Goldsmith-R) - AFDC and Food Stamp Recipients
Authorizes counties to require applicants or recipients of AFDC or food stamps to be subject to random drug and alcohol testing as a condition of eligibility.
(In Assembly Human Services Committee)
[PAGE 640]
AB 746 (Kuykendall-R) - State Supplemental Payments (SSP)
Eliminates state SSP benefits for a person whose eligibility is based on his/her addiction to one or more controlled substances or alcohol. Also continuously appropriates from the General Fund an amount equal to a portion of the reduction to licensed alcoholism or drug abuse recovery or treatment facilities, as specified.
(In Assembly Human Services Committee)
AB 788 (W. Brown-D) - Public Social Services: Confidential Information
If federal approval is obtained, allows a county social services employee to disclose the name and address of elderly or disabled clients to emergency personnel, in the event of a natural or human-made disaster.
Chapter 121, Statutes of 1995
AB 804 (Villaraigosa-D) - Pregnant Women and Children
Establishes a comprehensive program for perinatal services to pregnant women and child health care to children 18 years and under for those ineligible for the Medi-Cal program.
(In Assembly Health Committee)
AB 857 (Woods-R) - IHSS: Providers: Criminal Record Checks
Requires the Department of Social services to use the California Law Enforcement Telecommunications System to check the background of in-home care providers. Requires the provider to pay a fee to cover the cost of the background check.
(In Assembly Human Services Committee)
AB 905 (Poochigian-R) - Social Services Program
Establishes the fiscal mechanism for a new Partnership Demonstration Program, which would realign the state and county sharing ratios for child welfare services, foster care, adoptions and child abuse prevention programs. Allows an unlimited number of counties to opt to fund 100% of the nonfederal costs of these programs with up to .2234 cent of sales tax revenues that would be deposited in a new Family and Children Services Subaccount. Provides that enactment is contingent upon the passage of AB 906, the local government mandate relief and county fiscal flexibility legislation.
(In Conference)
[PAGE 641]
AB 906* (Aguiar-R) - Local Government Trailer Bill
Among others, allows counties various options to reduce their general assistance cash grant costs, including: shared housing provisions, "employable" work requirements, time-limited aid, use of voucher in lieu of cash grants, health care offset, alcohol/drug treatment sanctions and extends the Commission on State Mandates timelines for review of county applications to reduce general assistance based on significant financial distress.
(In Conference)
AB 908* (Brulte-R) - Omnibus Human Services Budget Trailer Bill
Makes various social services program changes relating to regional grants, AFDC and SSI/SSP grant cuts, Medi-Cal share of cost from grant cuts, teen pregnancy disincentive, homeless assistance, work incentive information dissemination for AFDC recipients, Community Care Licensing Technical Assistance Fund, Community Care Licensing Certification Fund, GAIN Employment Training Fund, Cal-Learn Program non-implementation disincentive, foster care group homes rate change freeze, in-home supportive services personal care option sunset extension, in-home supportive services county reimbursement rate under public authority, independent living center funding, extension for options for recovery, and exemptions to past AFDC grant cuts.
Chapter 307, Statutes of 1995
AB 932 (Speier-D) - AFDC
Authorizes the County of San Mateo to adopt and implement a pilot project in which the county would assume full responsibility for the delivery of AFDC, child care, job training, and housing, as specified. In addition, allows any county to require mandatory job search or job training, for parents delinquent on child support payments.
(Failed passage in Assembly Human Services Committee; reconsideration granted)
AB 973 (McDonald-D) - Child and Family Services
Requires that the evaluation of the integrated services pilot projects created by AB 1741 (Bates), Chapter 951, Statutes of 1993, be conducted by an independent organization.
Chapter 532, Statutes of 1995
[PAGE 642]
AB 1040 (Bates-D) - Long-Term Care
Requires the Department of Health Services to establish a pilot project in up to 5 sites to integrate the delivery and funding of long-term care services, and to evaluate the results. Provides that each site would be a long-term care services agency which would be paid a capitated rate and would control utilization of services.
Chapter 875, Statutes of 1995
AB 1126 (Hannigan-D) - General Assistance: Jail Inmates
Specifies that county jail inmates are not eligible for general assistance benefits.
(In Assembly Human Services Committee)
AB 1127 (Friedman-D) - Foster Youth
Requires a foster care provider, in consultation with the county case manager, to ensure to the extent state and county resources are provided that (1) adolescents who remain in long-term foster care receive age-appropriate pregnancy prevention information and (2) foster youth are provided with referrals to health services when the foster youth reaches the age of 18 or is emancipated.
(In Assembly Human Services Committee)
AB 1128 (Friedman-D) - Child Welfare Services
Requires counties to provide family maintenance services for 12 rather than 6 months.
(In Assembly Human Services Committee)
AB 1157 (Bates-D) - Children's Services
Establishes a 5-county pilot program through which "wrap-around" services, as defined, would be provided to children in, or at risk of, out-of-home placement. Requires the Department of Social Services in consultation with other prescribed entities to implement and oversee the program.
(In Senate Appropriations Committee)
[PAGE 643]
AB 1257* (Vasconcellos-D) - Human Services
Makes numerous technical and conforming changes to AB 911, Chapter 305, Statutes of 1995, which was enacted as a budget trailer bill to implement the statutory changes necessary in the areas of mental health, developmental services, and the Medi-Cal program.
Chapter 537, Statutes of 1995
AB 1261 (Hawkins-R) - State Supplementary Payments (SSP)
Requires that any lump-sum SSP payment for prior eligibility shall not exceed 150% of the monthly benefit amount. Also states that no person shall be eligible to any SSP benefits while incarcerated, and requires any representative payee of a SSP recipient to inform the federal Social Security Administration of the incarceration. Sets strict guidelines of eligibility to become a representative payee to an SSI/SSP recipient whose disability is derived from alcohol or drug dependency.
(In Assembly Human Services Committee)
AB 1275 (McDonald-D) - Public Assistance: Restructuring
Requires the Department of Social Services to develop and adopt a single standard application form that may be used in applying for benefits under all child care programs.
(Failed passage in Assembly Human Services Committee; reconsideration granted)
AB 1322 (Hawkins-R) - Aid Payments: Limitations
Imposes a 2-year limit on eligibility for AFDC benefits on any able-bodied adult and prohibits individuals under the age of 19 years of age from receiving AFDC unless they reside in the residence of at least one parent or legal guardian. Requires the Department of Social services to seek all appropriate federal waivers.
(In Assembly Human Services Committee)
[PAGE 644]
AB 1371* (Weggeland-R) - GAIN
Makes numerous revisions to the GAIN program. The major changes are:
1. Mandates up to 8 weeks of "up front" job club/job search for all recipients, including those who lack basic literacy, math or English-as-a-second-language skills.
2. Deletes requirements to serve certain target groups first and allows counties to set priorities, within certain limits. Allows counties to require GAIN participants to concurrently enroll in more than one GAIN activity for a total of 40 hours per week. Requires, however, for parents of children under age 6, 32 hours per week. Also requires that if work is used as a reason to defer GAIN participation, the parent must be paid at the state or federal minimum wage, whichever is greater.
3. Makes changes to the education requirements of GAIN.
Chapter 306, Statutes of 1995
AB 1380 (Hawkins-R) - AFDC: Benefits
Gives a cash reduction to those recipients of AFDC whose children have not been immunized, or attend school regularly. Also requires participation in community service for adults whose children are above 6 years of age.
(In Assembly Human Services Committee)
AB 1495 (Morrissey-R) - AFDC: Eligibility: School Attendance
Requires the Department of Social Services to stop payments to a recipient of assistance, under the AFDC program, whose child is not attending school or receiving a comparable education through a home program.
(In Assembly Human Services Committee)
[PAGE 645]
AB 1523 (Granlund-R) - Child Welfare Services Case Plans
Clarifies the limit on Adoptions Assistance Program payments to reflect the net cost of foster care payments that would have been made if the child had not been adopted. Requires periodic review whether children in long-term foster care placements could be adopted. Permits, for 3 years, termination of parental rights prior to the identification of adoptive homes. Directs the Department of Social Services to develop recommendations on the improvement of foster care. Also, bars the use of a parent's signature on or its absence from the child's case plan as evidence in hearings to terminate parental rights, but allows admission of evidence regarding parental cooperation in the provision of services specified in the plan.
Chapter 540, Statutes of 1995
AB 1525 (Granlund-R) - Indian Tribes: Child Welfare and Foster Care
Authorizes the Department of Social Services to delegate authority to Indian tribes to administer child welfare services and foster care programs for Indian children on reservation lands.
Chapter 724, Statutes of 1995
AB 1559 (Burton-D) - AFDC: Eligibility
Extends the eligibility for AFDC to families whose children have been removed from the home, but where the family is participating in a family reunification program.
(Failed passage in Assembly Appropriations Committee; reconsideration granted)
AB 1579 (Bowen-D) - Statewide Automated Welfare System
Requires the Department of Social Services, in its annual report to the Legislature regarding the status of the Statewide Automated Welfare System, to include copies of all written correspondence from the federal government about any aspect of the project.
(In Senate Health and Human Services Committee)
[PAGE 646]
AB 1617* (Weggeland-R) - Public Social Services
Eliminates, under GAIN, the 20-hour weekly participation limit for persons with children under age 6, which would allow them to be concurrently enrolled in education and training programs; requires at least a 6-month break in AFDC before an individual may receive an additional exemption from GAIN for the care of a child under age 3; clarifies the definition of adult education; requires the state to implement federal waivers only for the time period that the waiver is granted.
Chapter 883, Statutes of 1995
AB 1680 (Granlund-R) - AFDC: Benefits
Provides that, except under specified circumstances, pregnant and parenting teens must reside with their own parents, or guardian as a condition of eligibility for AFDC grants.
(Failed passage in Assembly Human Services Committee; reconsideration granted)
AB 1786 (Bates-D) - In-Home Supportive Services
Extends the July 1, 1996 sunset date for the Personal Care Services Program to July 1, 1999. Also requires the Department of Social Services to convene a work group to develop recommendations to improve the delivery of in-home supportive services.
(On Senate Inactive File)
AB 1940 (Woods-R) - Public Social Services
Relieves counties' maintenance-of-effort requirements established in 1991 in connection with realignment, amounting to approximately $177 million for local indigent health care and $25 million for mental health services. Also makes changes in the minimum levels of support under general assistance.
(In Senate Rules Committee)
`
AB 1960 (Friedman-D) - Pregnant Women and Children
Requires the Department of Health Services to provide a comprehensive program to provide perinatal services to pregnant women and child health care to children under 18 and all women and children ineligible for Medi-Cal. Also requires specified service plans to provide group and individual coverage for perinatal and child health care services by January 1, 1997.
(In Assembly Health Committee)
[PAGE 647]
AB 8XX* (Brewer-R) - General Assistance Programs
Authorizes counties to fund aid or services under the general assistance program at the level deemed possible by the board of supervisors. Also provides that the filing of a petition by a county under federal bankruptcy provisions shall constitute a presumption that meeting the required minimum general assistance levels would result in a significant financial distress to the county.
(Urgency clause refused adoption on Assembly Floor; motion to reconsider made)
AB 11XX (Brewer-R) - State-Mandated Social Services
Allows all counties to reduce or eliminate: Programs related to AFDC, including GAIN, the Cal-Learn program and Foster Care, In-Home Supportive Services and all Medi-Cal services in excess of minimum federal requirements. Sunsets July 1, 2000.
(On Assembly Third Reading File)
AB 32XX (Goldsmith-R) - County General Assistance Programs
Authorizes counties to discontinue aid under the general assistance program after able-bodied, mentally competent individuals have received aid for 3 months during a 12 month period. States intent to reverse the decision in Washington v. Board of Supervisors of San Diego County (18 Cal. App. 4th 981).
(In Assembly Rules Committee awaiting assignment)
AB 33XX (Goldsmith-R) - General Assistance
Authorizes counties to adopt standards of aid and care for the indigent and dependent poor. Also recasts the authorization for counties to establish policies with reference to the amount of property those persons are permitted to have to specifically include cash and other belongings.
(In Assembly Rules Committee awaiting assignment)
[PAGE 648]
AB 37XX (Goldsmith-R) - Eligibility Pilot Project
Establishes the Public Social Services Eligibility Pilot Project authorizing counties, if federal approval is obtained, to require that applicants and recipients of social services programs be fingerprinted and have photographic identification.
(In Assembly Rules Committee awaiting assignment)
AB 44XX (Goldsmith-R) - Drug and Alcohol Testing
Mandates that counties require applicants and recipients of benefits under AFDC or the Food Stamp Program to undergo screening for substance abuse and participate in a drug or alcohol treatment program as a condition of eligibility. Disqualifies for 2 years anyone who fails or refuses to cooperate with treatment, testing or screening requirements.
(In Assembly Rules awaiting assignment)
A similar bill is AB 45XX (Goldsmith-R) in Assembly Rules Committee awaiting assignment.
AB 47XX (Goldsmith-R) - Human Services
Makes various revisions to the California Welfare Program Integrity Act of 1995.
(In Assembly Rules Committee awaiting assignment)
[PAGE 649]
NOTE: *DENOTES URGENCY LEGISLATION
[PAGE 650]
AB 903* (Pringle-R) - State Budget Act
Enacts the 1995-96 State Budget Act.
Chapter 303, Statutes of 1995 - Item Veto
SCR 37 (Lockyer-D) - State Budget: Conference Committee
Adopted procedures governing the Committee on Conference on the 1995-96 Budget Bill.
Resolution Chapter 34, Statutes of 1995
Budget Trailer Bills
SB 146* (Maddy-R) - Seismic Retrofit Bond Act of 1996
Enacts the Seismic Retrofit Bond Act of 1996 to provide $2 billion in general obligation bond authority for the seismic retrofit of state highway and bridge structures and seismic retrofit improvements on the state's toll bridges, subject to approval by the voters in the March or November 1996 elections.
Chapter 310, Statutes of 1995
SB 1170 (Lockyer-D) - Teen Pregnancy Prevention
Establishes the Teenage Pregnancy Prevention Grant Program targeted at pupils in elementary and secondary schools.
Chapter 311, Statutes of 1995
SB 1344* (Solis-D) - Social Services: County Administration
Relieves counties of administrative cost match requirements for the Aid to Families with Dependent Children, Food Stamp, and In-Home Supportive Services programs, if certain conditions are met.
Chapter 312, Statutes of 1995
[PAGE 651]
SB 1345* (Boatwright-D) - State and Local Finance
Establishes the Agricultural Labor Relations Unpaid Wage Fund, into which collected unpaid wages or benefits are to be deposited. Modifies the amounts available for county district attorneys pursuant to referral of child support collection matters in the state. Transfers jurisdiction over state-chartered savings associations from the Department of Savings and Loan to the Commissioner of Corporations.
Requires the Arts Council to establish a nonprofit public benefit corporation to solicit and receive funds from various sources to further its goals. Repeals the California Student Loan Authority Act. Terminates the existence of the Housing Bond Credit Committee. Requires the California Debt and Investment Advisory Commission to establish continuing education programs for local officials having direct or supervisory responsibility over municipal investments.
Repeals various governing board authorities under the general jurisdiction of the State Treasurer, and consolidates those with the California Development Financing Authority. Establishes the California Health and Educational Financing Authority through consolidation of several existing authorities. Repeals provisions relating to the duties and authority of the State Fire Marshal over state-occupied buildings.
Vetoed by the Governor
Similar legislation is SB 140 (Alquist-D), which contains only paragraphs 1, 2, 3, 4 and 9, and which is in the Senate Budget and Fiscal Review Committee.
SB 1346 (Kopp-I) - State Buildings
Requires the Department of General Services to rehabilitate and use the state-owned property located at 525 Golden Gate Avenue, as specified.
Vetoed by the Governor
AB 817* (Hoge-R) - Victims of Crime: Restitution
Makes a series of changes to increase revenues and control costs related to the Victims of Crime Program, including provisions that authorize offenders receiving diversion in lieu of incarceration to pay restitution and corrections to consider payment of restitution a condition of parole.
Chapter 313, Statutes of 1995
[PAGE 652]
AB 825* (W. Brown-D) - Education Finance
Makes statutory changes necessary to implement the education portion of the 1995 Budget Act, and makes certain appropriations to satisfy the Proposition 98 funding guarantees for the 1994-95 and 1995-96 fiscal years. Lowers the statutory deficit factor applied to school districts and county offices of education revenue limits, as specified. Permanently reinstates the $13-per-unit enrollment fee for community college students which sunsetted July 1, 1995. Requires the mentor service program to be operated through local school districts and county offices of education. Creates Social Tolerance Resource Centers to provide teacher training and educational services in the areas of social tolerance and human rights. Creates Latino Heritage Resource Centers. Limits to one year the time within which school districts may revise claims for desegregation costs after initial claims have been paid by the state. Makes the following appropriations:
1. $150 million to begin repayment of the $1.76 million Proposition 98 loans created as part of the state budget settlements in 1992 and 1993.
2. $92.6 million for the 1994-95 fiscal year for various K-12 education prior deficiencies and claims.
3. Appropriates $47.2 million to partially fund the shortfall in community college property taxes in the 1994-95 fiscal year.
4. $279 million for instructional materials, educational technology, defined maintenance or other non-recurring costs.
5. $26 million for community college block grants for instructional materials, deferred maintenance, instruction equipment or library materials.
6. $5 million for the Social Tolerance Resource Centers.
7. $600,000 for the Latino Heritage Resource Centers.
8. $24.8 million for K-12 instructional materials.
9. $24.8 million for K-12 deferred maintenance, with priority for health and safety hazards.
10. $10 million for K-112 technology grants for acquisition of refurbished donated computers.
11. $30 million for the 1995-96 fiscal year to be allocated in August 1996 only if a settlement agreement has been reached in the CTA v Gould Proposition 98 lawsuit for the following programs: Healthy Start ($10 million), Volunteer Mentor ($5 million), and pupil assessment ($15 million).
Chapter 308, Statutes of 1995
A follow-up bill is AB 687* (Goldsmith-R), which added a provision to clean up AB 825 relating to the allocation of excess funds in the Educational Revenue Augmentation Fund to the county superintendents of schools for special education programs. AB 687 became Chapter 309, Statutes of 1995.
[PAGE 653]
AB 904* (Bowler-R) - Corrections
Makes numerous changes in the law concerning the California Youth Authority, such as deleting provisions of law requiring the department to establish a maximum population limit for each juvenile hall and allowing a juvenile home, ranch, camp or forestry camp to receive or contain up to 125 children, if the county has determined that there is a consistent need for placements in these facilities which exceeds the beds available in the county, as specified.
Chapter 304, Statutes of 1995
AB 908* (Brulte-R) - Public Health Programs
Provides for reductions in Aid to Families with Dependent Children (AFDC) and SSI/SSP grants, and places counties in one of two regions based on the 25th percentile of rents as reported in the 1990 census for purposes of determining AFDC and SSI/SSP grants. Reduces the minimum basis of standards of care in Region 2. Provides state funding to cover the increased share of cost for certain Medi-Cal recipients who otherwise would not pay a share of cost, or an increased share of cost, as a result of the grant cuts.
Requires unmarried pregnant or parenting teenagers under 18 to live with their parents or with other suitable adults in order to qualify for AFDC, with specified exemptions. Limits AFDC homeless assistance benefits to once in a lifetime. Requires the Department of Social Services to undertake activities designed to facilitate the dissemination of work incentive information to AFDC applicants and recipients.
Creates the Technical Assistance Fund to fund licensing staff positions to provide technical assistance to businesses paying fees for various social services program licenses. Creates the Certification Fund and transfers the monies contained in the Residential Care Facility for the Elderly Fund to the new fund to be used for administrative costs of the residential care facilities for the elderly certification program. Provides $22.7 million from the Employment Training Fund for the GAIN program.
Allows the Department of Social Services to reduce local assistance funding to counties that elect to implement the Cal-Learn Programs by contracting with the department. Extends the sunset for the In-Home Supportive Services Personal Care Services Program from July 1, 1996 to July 1, 1998. Guarantees that the total funds appropriated from the Social Security Act in the 1995-96 fiscal year for the Independent Living Centers will be maintained for the 1996-97 fiscal year from combined state and federal funds.
Chapter 307, Statutes of 1995
[PAGE 654]
AB 909* (Bowen-D) - State Beaches
Transfers 8 state beaches to the County of Los Angeles and allows the Department of Parks and Recreation to enter into agreements to secure long-term funding sources for the state park system.
Chapter 472, Statutes of 1995
Similar legislation is AB 504* (Kuykendall-R), which is on the Assembly Inactive File.
AB 910* (Speier-D) - Department of Consumer Affairs
Grants the Department of Consumer Affairs operational flexibilities pursuant to its 1995-96 Performance Budgeting Contract. Allows for the Department of Consumer Affairs to perform the statutory functions of the board in the event legislation to consolidate the Cemetery Board and the Funeral Directors and Embalmers Board is not enacted into law. Provides that if the Structural Pest Control Board does not comply with provision specified in the 1995 Budget Act, as determined by the Department of Consumer Affairs, the department may assume the responsibilities and duties of the board. The department may also monitor the performance of the board, authorizing the allocation of monthly budget disbursements for expenditure by the board.
Chapter 381, Statutes of 1995
AB 911* (Vasconcellos-D) - Health Services
Makes various changes to the Medi-Cal Program, mental and health and developmental services program necessary to implement the Budget. Requires the Secretary of Health and Welfare to establish an Office of Rural Health in one of its departments. Establishes a transitional inpatient care program as a Medi-Cal benefit, as specified. Requires local initiatives participating in the Medi-Cal managed care plan to contract with federally qualified health centers, as specified.
Revises targeted case management and Medi-Cal administrative claiming programs to conform to federal requirements and makes other revisions to these programs. Specifies legislative intent that subsequent legislation be developed to allow integration of long-term care services and requires the Department of Health Services to select 5 pilot project counties that may integrate the administration and funding for long-term care services. Makes changes to the Medi-Cal Drug Treatment Program, such as limiting day care habilitative services only to pregnant and postpartum women, and allows the Department of Health Services to develop individual and groups rates for outpatient drug-free treatment and establishes the per-person rate as a fraction of the group rate. Limits the outpatient drug-free program to only pregnant and postpartum women on July 1, 1996, if the projected costs for the Medi-Cal Drug Treatment Program for the 1995-96 fiscal year exceeds $60 million as of May 15, 1996.
Chapter 305, Statutes of 1995
[PAGE 655]
AB 1371* (Weggeland-R) - Greater Avenues for Independence (GAIN) Program
Revises the procedures for implementation of the Greater Avenues for Independence program which has the effect of increasing county responsibilities in implementing the AFDC GAIN program, as specified.
Chapter 306, Statutes of 1995
Other Budget Trailer Bills Awaiting Action
SB 1330* (Senate Budget and Fiscal Review Committee) - Budget Act of 1995: Corrections
Makes a series of technical corrections to the 1995 Budget Act. Also restores the $1.3 million to the Assembly's operating budget transferred to the Senate.
(In Conference)
The $1.3 million restoration of monies to the Assembly became a controversial issue in which many Senate bills were amended to reflect the restoration and subsequently were re-amended to take the provision out.
AB 489* (Allen-R) - California REACH Program
Establishes in the Department of Health Services the California Reaching Early Access for Children's Health (REACH) Program to provide supplemental primary and preventive pediatric health care services to children under 6 years of age, to be effective April 1. 1996.
(On Assembly Unfinished Business File)
AB 504* (Kuykendall-R) - Resources
Transfers 8 state beaches to Los Angeles County. Allows the Department of Parks and Recreation to enter into agreements with nonprofit corporations or other private entities to assist the department in securing long-term, private funding sources for units of the state park system. Abolishes the State Construction Program Fund, the Capital Outlay Fund for Public Higher Education, the Energy and Resources Fund, and the Special Fund for Capital Outlay and transfers balances of these funds to the General Fund. Shifts the cost of the watermaster services program from state to local entities that own rights to divert or store water within a service area.
(On Assembly Inactive File)
[PAGE 656]
AB 668 (Knowles-R) - Medi-Cal: Aliens
Eliminates the provision of pregnancy-related services to undocumented women under the Medi-Cal program. Eliminates continuation of long-term care and renal dialysis for aliens who have exhausted appeals to retain an entitlement to full Medi-Cal benefits.
(On Assembly Inactive File)
AB 905 (Poochigian-R) - Social Services Programs
Creates the Partnership Demonstration Project Program, which provide that for counties to elect to participate, a block grant of funds in which to implement the current children's services programs, including the Foster Care, Children's Welfare Services, and Adoption Assistance Programs, as specified. Reallocates responsibility for certain child welfare services to Indian tribes located in the state or that have territory within the state. Uses existing sales tax revenue to provide for the children's services block grant, as specified. Becomes operative only if AB 906 (Aguiar-R) is enacted and unless a statute is enacted that becomes effective before December 31, 1995 governing the administration of the Partnership Demonstration Project.
(In Conference)
AB 906* (Aguiar-R) - Local Government
Makes a number of changes concerning local government finance of programs by reducing general assistance, relief from maintenance-of-effort requirements, providing a $23.7 million state subsidy to eligible counties that operate juvenile probation camps or ranches, providing property tax administration relief and teeter plan flexibility.
(In Conference)
Similar legislation is AB 1143* (Villaraigosa-D), which is on the Assembly Unfinished Business File.
[PAGE 657]
SCA 2 (Kopp-I) - State Budget Reform
Provides changes in the process and requirements for enacting the annual Budget Act as follows:
1. Requires the Legislature to enact a balanced budget.
2. Establishes a 3% General Fund reserve for emergencies.
3. Requires the Budget Bill to include a budget adjustment plan, so as to avoid any deficit during the fiscal year.
4. Provides that the Budget Bill shall be passed by a majority vote.
5. Changes the constitutional deadline for passage of the Budget Bill from June 15 to June 30.
6. Requires the Governor and Members of the Legislature to forfeit all salaries and expense allowances for each day the budget goes past the constitutional deadline without being enacted.
(Failed passage on the Senate Floor; reconsideration granted)
Similar legislation is ACA 25 (Goldsmith-R) which is in the Assembly Budget Committee, ACA 32 (Morrissey-R) which is in the Assembly Rules Committee, and ACA 33 (Burton-D) which is in Assembly Elections, Reapportionment and Constitutional Amendments Committee.
ACA 4 (Hannigan-D) - Trailer Bills
Provides that statutes enacting budget bills are to go into effect immediately upon their enactment, and removes the 2/3 requirement for the adoption of legislation making General Fund appropriations.
(In Assembly Budget Committee)
HR 24 (Isenberg-D) - State Budget Reform
Requests the President and Congress to appoint a political receiver for the State of California with the assigned task of reforming the state's budget process, as specified.
(In Assembly Budget Committee)
[PAGE 658]
SB 8* (Peace-D) - Income Tax: Small Business Investment
Provides for a personal income tax exclusion for 75% of any gain from the sale or exchange of qualified small business stock held for more than 10 years.
(Held under submission in Senate Appropriations Committee)
The bill is also contained in SB 14* (Thompson-D) which is in Assembly Revenue and Taxation Committee.
SB 13* (Beverly-R) - Corporation Tax: Limited Liability Companies
Makes a number of technical changes affecting limited liability companies, including waiving the interest payment for companies which fail to pay their $800 annual tax prior to January 3, 1995.
Chapter 2, Statutes of 1995
SB 14* (Thompson-D) - Income/Corporation Tax: Rates and Credits
Maintains the 10% and 11% income tax rates scheduled to expire at the end of 1995. Maintains the 8.5% alternative minimum tax rate. Increases the dependent credit to $220 per dependent starting in 1996. Reduces the bank and corporation tax rate to 8.6% from 9.3% starting in 1996. Excludes as an item of tax preference, in conformity with federal law, any capital gain from charitable donation of appreciated property. Excludes 75% of gain from sale of small business stock held for 10 years. Increases the limit on corporate charitable contributions to 10%, and allows carryover of excess contributions. Permits personal taxpayers to deduct up to $17,500 of business property purchased after July 1 1995. Excludes from income energy conservation subsidies for dwelling units received from public utilities. Permits a longer period for biopharmaceutical firms with no FDA-approved products to carry over investment tax credits and net operating losses. Extends tax treatment of employee stock ownership plans through 1998. Provides for language relating to double taxation of corporate dividends.
(In Assembly Revenue and Taxation Committee)
[PAGE 659]
SB 22* (Rosenthal-D) - Corporate Tax: Charitable Contributions
Conforms state tax law which limits the charitable contributions for corporations to 10% of income, and permits excess contributions to be carried over to future years.
(Held under submission in Senate Appropriations Committee)
The bill also contained in SB 14* (Thompson-D) which is in Assembly Revenue and Taxation Committee.
SB 64* (Rosenthal-D) - Income Tax: Disaster Relief
Removes the threshold on casualty loss deductions for taxpayers with losses as a result of the Northridge Earthquake. Becomes operative only if the federal tax law is amended in a similar manner.
(Held under submission in Senate Appropriations Committee)
SB 94* (Greene-D) - Corporation Tax Credit: School Construction
Provides for a 50% tax credit for costs incurred by a developer to build a new school. The amount of credit statewide could not exceed $200, unless up to an additional $200 in authorization is provided in the Budget Act. Sunsets December 1, 2007.
(In Senate Appropriations Committee)
SB 151 (Mountjoy-R) - Income/Corporation Tax Credit: Environmental Expenses
Allows a tax credit of 10% on environmental quality expenses for a period of 5 taxable or income years.
(Failed passage in Senate Natural Resources and Wildlife Committee)
Similar legislation is AB 177 (Mountjoy-R) which failed passage in Assembly Revenue and Taxation Committee; reconsideration granted.
[PAGE 660]
SB 173 (Alquist-D) - Income Taxes: Illegal Employees
Requires the Employment Development Department and Franchise Tax Board to receive specific information from the Immigration and Naturalization Service regarding illegal alien employees and to ascertain whether those employees or their employers have paid or withheld the appropriate amount of personal income taxes, and in the case of noncompliance with specified tax laws, to pursue appropriate enforcement actions.
(Failed passage in Assembly Revenue and Taxation Committee; reconsideration granted)
SB 209 (Solis-D) - Income Tax Checkoffs: Firefighters Memorial
Eliminates the $250,000 minimum contribution amount for the California Firefighters' Memorial unless the January 1, 1999 repeal date is eliminated, thereby allowing the check-off to remain on the tax form regardless of the contribution level.
Chapter 206, Statutes of 1995
SB 249* (Alquist-D) - Corporation Taxes: Exclusions for Dividends
Permits water's -edge group to take a 75% deduction for dividends received from foreign affiliates and a 100% deduction for dividends received from foreign construction projects. Eliminates the interest expense offset for foreign investments.
(On Assembly Inactive File)
The bill is contained in AB 397* (Hannigan-D) which was vetoed by the Governor.
SB 293* (Marks-D) - Income/Corporation Taxes: Energy Conservation Subsidies
Conforms state law to federal law which excludes from taxable income energy conservation subsidies received from public entities in 1995 and 1996.
(Held under submission in Senate Appropriations Committee)
The bill is contained in SB 14* (Thompson-D) which is in Assembly Revenue and Taxation Committee.
[PAGE 661]
SB 298 (Campbell-R) - Income Tax: Withholding
Exempts nonresident corporate directors from having income taxes withheld for compensation paid by the corporation, as specified.
Chapter 475, Statutes of 1995
SB 314* (Campbell-R) - Income Tax Reduction: College Tuition
Provides for a $10,000 tax deduction for qualified college expenses, as specified.
(In Senate Revenue and Taxation Committee)
SB 343* (Campbell-R) - Income Tax Rates
Replaces the current state income tax with a tax based on a percentage of federal taxable income, as defined, for taxpayers who do not have income from farm, business or rental activities, schedule California additions, or schedule California subtractions.
(In Senate Revenue and Taxation Committee)
SB 345* (Campbell-R) - Income Tax: Capital Gains
Allows taxpayers, 65 or older, to pay tax on the gain from the sale of a qualified asset at either that tax rate applicable under current law or at a rate of 1% of the gain from the sale. Allows as a deduction against income the amount of gain on which the separate tax is paid.
(Failed passage in Senate Revenue and Taxation Committee)
SB 405* (Haynes-R) - Income/Corporation Tax Credit: Donations of Computers
Provides for a tax credit of up to $50 for each computer donated to schools or universities and an amount equal to 55%, not to exceed $100, or the amount paid or incurred as a contribution for repairs and upgrades to a qualified refurbisher or facilitator for each qualified computer.
(In Senate Revenue and Taxation Committee)
[PAGE 662]
SB 420* (Alquist-D) - Income/Corporation Taxes: Enterprise Zones
Allows the enterprise zone hiring credit to be claimed for 5 years even if the enterprise zone designation expires after the individual is hired.
(Held under submission in Assembly Appropriations Committee )
SB 427* (Leslie-R) - Income and Corporation Tax: Passive Activity Loss Rules
Conforms state income and corporation tax law to the 1993 federal law changes regarding passive loss rules to rental real estate activities.
(In Senate Appropriations Committee)
SB 484* (Lewis-R) - Income Tax Deduction: Medisave Account
Allows the establishment of "Medisave" accounts in which taxpayers could deduct up to $1,000 (single) or $2,000 (joint) for health costs.
(Failed passage in Senate Appropriations Committee; reconsideration granted)
Similar legislation is SB 1149* (Watson-D) which is in Senate Appropriations Committee, SB 1210* (Hughes-D) which is in Senate Revenue and Taxation Committee and AB 1758* (Knowles-R) which failed passage in Assembly Health Committee; reconsideration granted.
SB 536* (Hughes-D) - Corporation Tax Credit
Allows a refundable tax credit to a nonprofit, tax exempt hospital that is operating within an enterprise zone, program area or the Los Angeles Revitalization Zone (LARZ) and that meets the requirements for specified employee hiring credits and/or the LARZ sales and use tax credit.
(In Senate Revenue and Taxation Committee)
SB 546* (Mello-D) - Income/Corporate Tax Credits: Long-Term Health Care
Provides a tax credit equal to 50% of the amount paid or incurred by a taxpayer for the purchase of long-term care insurance coverage. Provides that the credit would range from $100 to $1,000 depending upon the beneficiary's age.
(Held under submission in Senate Appropriations Committee)
[PAGE 663]
SB 550* (Lewis-R) - Income Tax: Capital Loss: Sale of Home
Allows taxpayers to deduct losses, up to $250,000 incurred in the sale of a California principal residence after July 1, 1995 in which the taxpayer lived for at least 2 years.
(Held under submission in Senate Appropriations Committee )
SB 559 (Campbell-R) - Income/Corporate Taxes: Forms
Requires the Franchise Tax Board to insure that the first tax forms issued with respect to any tax year incorporate all applicable changes in federal law that have been incorporated into the California Revenue and Taxation Code and that have been adopted before the end of that tax year.
(In Senate Appropriations Committee)
SB 567* (Hurtt-R) - Income Tax: College Savings Account
Allows an income tax credit equal to 10% of up to $1,000 deposited each year by a taxpayer to a college savings account for each dependent child.
(Held under submission in Senate Appropriations Committee)
SB 633 (Kopp-I) - Income/Corporation Taxes: Violators
Creates new civil penalties and criminal charges for knowingly obtaining, endorsing or negotiating state income tax refund warrants that the recipient is not entitled to receive. Also clarifies that existing criminal penalties in case of fraudulent returns apply to electronically filed returns, as well as paper documents.
Chapter 845, Statutes of 1995
SB 711 (Senate Revenue and Taxation Committee) - Income/Corporation Taxes
Allows a top tier corporation, on behalf of corporations that are members of a commonly controlled group, to elect to determine the income of all of its members of the group, derived from or attributable to sources within the state, in a single combined report that takes into account the income and apportionment portions of all the members.
(In Senate Revenue and Taxation Committee)
[PAGE 664]
SB 712 (Senate Revenue and Taxation Committee) - Enterprise Zones
Makes various technical changes to small cities enterprise zone statutes and the Los Angeles Revitalization Zone law (LARZ). Restores AB 312 , of 1994 which prevents the state from recapturing audits claimed by taxpayers should the Trade and Commerce Agency determine patrons of the LARZ do not meet the original statutory criteria, and as a result eliminate segments of the LARZ. This was chaptered out by AB 1313 of 1994.
Chapter 494, Statutes of 1995
SB 715* (Senate Revenue and Taxation Committee) - Income/Corporation Tax Credits: Child Care
Includes employer reimbursements to an employee for the employees' qualified child care expenses in the definition of contributions for which a credit is allowed.
(In Senate Revenue and Taxation Committee)
SB 720 (Senate Revenue and Taxation Committee) - Income/Corporation Taxes: Bankruptcy Filings
Conforms California's automatic lien statute relating to income and bank and corporation taxes with the federal Bankruptcy Code.
Chapter 69, Statutes of 1995
Similar legislation is AB 1626 (McDonald-D) which is in Assembly Revenue and Taxation Committee.
SB 721 (Senate Revenue and Taxation Committee) - Income Tax: Returns
Increases the threshold amounts for filing state tax returns to an adjusted gross income of $8,000 (single) and $16,000 (joint). For incomes from all sources, increases the threshold to $10,000 (single) and $20,000 (joint). Makes these thresholds effective for the 1995 tax year and indexed annually thereafter for inflation.
Chapter 65, Statutes of 1995
SB 751* (Hayden-D) - Income Tax/Corporation Tax Credits: Low Emission Vehicles
Extends the 1998 sunset for low-emission vehicle credits.
(Held under submission in Senate Appropriations Committee)
[PAGE 665]
SB 752 (Lockyer-D) - Income Tax: Legislative Election Fund checkoff
Allows taxpayers to designate part of their tax liability to the Legislative Election Fund for the purpose of funding the public financing of campaigns.
(In Assembly Elections, Reapportionment and Constitutional Amendments Committee)
Similar legislation is AB 1814 (Bowen-D) which is in Assembly Elections, Reapportionment and Constitutional Amendments Committee and AB 1816 (Bowen-D) which failed passage in the same committee.
SB 773* (Hurtt-R) - Income and Corporation Tax Credits: Tips
Establishes a tax credit equal to 10% of the federal minimum wage tip credit.
(In Senate Revenue and Taxation Committee)
SB 780* (Leonard-R) - Income/Corporation Taxes: Alternative Fuels
Allows a tax credit of 25% to 100% of the differential cost of a low-emission commercial vehicle, with the level of credit increasing as the level of emissions decreases.
(Held under submission in Senate Appropriations Committee)
SB 875 (Marks-D) - Income/Corporations Taxes
Allows an income tax credit for the cost of seismic rehabilitation on historic buildings in California. Includes S corporation shareholders in California's Nexus (Voluntary Disclosure Program). Allows the Employment Development Department to provide the Franchise Tax Board with new employee information upon request.
(In Assembly Revenue and Taxation Committee)
[PAGE 666]
SB 887 (Hughes-D) - Income/Corporation Taxes
Allows the Franchise Tax Board to waive penalties and perfect elections in the case of a corporate group which did not accurately file for "waters-edge" elections. Eliminates the requirement that Mexican and Canadian affiliates of U.S. based multinational corporations be included in the waters-edge election. Makes changes in large corporations reporting requirements.
Chapter 490, Statutes of 1995
SB 919 (Hayden-D) - Income Tax Reduction: Student Fees
Reduces student fees at the California Community Colleges, the University of California and the California State University by the same proportion that income tax rates are reduced.
(Held under submission in Senate Appropriations Committee)
SB 943* (Campbell-R) - Income/Corporation Tax Credits: Biopharmaceutical Firms
Expands manufacturing equipment credit and net operating loss carryover provisions for biopharmaceutical firms.
(Held under submission in Senate Appropriations Committee)
The bill is contained in SB 14* (Thompson-D) which is in Assembly Revenue and Taxation Committee and AB 397* (Hannigan-D) which was vetoed by the Governor.
SB 979* (Solis-D) - Income/Corporation Tax: ESOP
Extends indefinitely the law which provides conformity of state law to federal law relating to employee stock ownership plans.
(Held under submission in Assembly Appropriations Committee)
The bill is contained in SB 14* (Thompson-D) which is in Assembly Revenue and Taxation Committee.
SB 1153 (O'Connell-D) - Income Tax Checkoffs: Drug Abuse Education
Allows taxpayers to make voluntary contributions to the Drug Abuse Resistance Education Fund through a checkoff on their income tax return.
Chapter 486, Statutes of 1995
[PAGE 667]
SB 1158 (Johannessen-R) - Income Tax Checkoff: Military Museum
Creates the California Military Museum tax checkoff.
Chapter 487, Statutes of 1995
SB 1227* (Haynes-R) - Income/Corporation Tax Credit: Language Expense
Allows a tax credit equal to 50% of the amount paid or increased during the taxable or income year for qualified language training expenses in connection with the training of the taxpayers' employees in English language and literacy.
(In Senate Revenue and Taxation Committee)
SB 1234 (Watson-D) - Income/Corporation Tax: Juveniles
Allows a tax credit for juvenile mediation programs created by the bill.
(In Senate Criminal Procedure Committee)
SB 1280 (O'Connell-D) - Tax Credits: Land and Water Conservation
Enacts the California Land and Water Conservation Act which allows a tax credit, as specified, of the fair market value of qualified property that is donated to the state, any local agency or any nonprofit organization designated by the state or local government.
(In Assembly Water, Parks and Wildlife Committee)
SB 1300 (Petris-D) - Income Tax Rates: Higher Education
Extends the application of the highest managerial income tax rates permanently. Transfers increased revenue resulting from this change to a special subaccount of the General Fund to be allocated to higher education.
(On Senate Inactive File)
[PAGE 668]
SCA 16 (Haynes-R) - Income Tax: Single Rate
Provides for a statewide single rate tax applicable to the personal income tax.
(In Senate Revenue and Taxation Committee)
Similar legislation is ACA 29 (Kaloogian-R) in Assembly Revenue and Taxation Committee.
SCA 23 (Lewis-R) - Income Tax: Social Security
Exempts social security benefits from state income taxes.
(In Senate Revenue and Taxation Committee)
SB 2X* (Thompson-D) - Income/Corporation Tax: Disaster Relief
Provides that taxpayers who suffered losses as a result of the 1995 storms and floods, may apply losses against taxable income in the previous taxable year, any further losses of 100% can be carried forward against taxable income over the next 5 years. Should excess losses remain, 50% of those losses may be carried forward for the next 10 years.
Chapter 5X, Statutes of 1995-96, First Extraordinary Session
Similar legislation is AB 1X* (V. Brown-D), Chapter 3, Statutes of 1995-96, First Extraordinary Session; AB 3X (Firestone-R), Chapter 4, Statutes of 1995-96, First Extraordinary Session; AB 6X* (Kuykendall-R) which failed passage in Assembly Appropriations Committee; AB 11X* (McPherson-R) which died in Assembly Revenue and Taxation Committee, and SB 91* (Thompson-D) which is in Assembly Revenue and Taxation Committee.
AB 80 (Napolitano-D) - Taxation Violations: Venue
Makes the rules for trial venue for misdemeanor state income tax offenses consistent with the rules of venue for similar felony offenses.
Chapter 40, Statutes of 1995
AB 89* (Hoge-R) - Income Tax: Partnership Debt
Provides a state income tax exclusion for any benefit to a partner that arises from the restructuring of debt of a limited partnership.
(In Assembly Revenue and taxation Committee)
[PAGE 669]
AB 90* (Baca-D) - Income Tax Credit: Child Care
Provides an income tax credit and dependent care credit for the 1995 through 1997 tax years for taxpayers with adjusted gross incomes of less than $100,000.
(In Assembly Revenue and Taxation Committee)
Similar legislation is AB 183 (Alpert-D) which died in Assembly Revenue and Taxation Committee.
AB 150* (Villaraigosa-D) - Income Tax Rates
Repeals the January 1, 1996 sunset date for the 10% and 11% income tax rates and the 8.5% alternative minimum tax (AMT). Allows the personal exemption credits to reduce regular tax below the amount of tentative minimum tax and adopts the federal exemption amounts for purposes of calculating the AMT.
(Died in Assembly Revenue and Taxation Committee)
AB 194* (K. Murray-D) - Income and Corporation Taxes
Makes permanent the 10% and 11% income tax rates for high income taxpayers and the 8/5% alternative minimum tax rate. Increases the personal exemption credits. Reduces the C-Corporation franchise tax rate from 9.3% to 7.7%. Reduces the minimum franchise tax from $800 to $600. With respect to S-Corporations, eliminates the franchise and income tax rate of 1.5%
(Failed passage in Assembly Revenue and Taxation Committee; reconsideration granted)
AB 197* (Cunneen-R) - Income Corporation Tax Credits
Expands the existing Manufacturer's Investment Credit to include taxpayers with manufacture machinery for the creation of semiconductors as among the taxpayers eligible to claim the credit on their special purpose buildings and foundations.
(In Assembly Revenue and Taxation Committee)
[PAGE 670]
AB 208* (Cannella-D) - Income/Corporation Tax: Agricultural Production Credit
Establishes a 6% tax credit for equipment used in an agricultural-related trade or business, as specified.
(On Assembly Third Reading File)
AB 216* (Burton-D) - Income Tax: Taxable Income
Provides that only income that exceeds $60,000 ($120,000 if filing jointly) would be subject to regular state income tax.
(Failed passage in Assembly Revenue and Taxation Committee)
AB 249* (Baldwin-R) - Corporation Tax: Tax Rate Reduction
Reduces the corporate franchise tax rate from 9.3% to 7.5%.
(In Assembly Revenue and Taxation Committee)
AB 252* (Richter-R) - Income Tax Credits: Contributions
Allows a credit for charitable contributions to qualified poverty relief organizations.
(In Assembly Revenue and Taxation Committee)
AB 271 (Kuykendall-R) - Income/Corporation Taxes: Enterprise Zones
Makes a number of changes in the Enterprise Zone Law. Provides that for employers in the aircraft industry, the wage credit would be based on 202%, rather than 150% of the minimum wage.
(On Senate Appropriations Committee Suspense File)
The aircraft provision is contained in AB 397* (Hannigan-D).
[PAGE 671]
AB 299* (Rainey-R) - Corporation Tax: S-Corporations
Allows corporations that chose S-Corporation status in 1987 to make a one-time election to pay a 2.5% tax on the earnings they accumulated as a C-Corporation. Allows distributions made from these earnings to be excluded from shareholders gross income.
(Failed passage in Assembly Appropriations Committee; reconsideration granted)
AB 364* (Cannella-D) - Income/Corporation Tax: Agricultural Products
Provides for a tax credit of 10% of the cost of agricultural products donated to nonprofit charitable organizations and 50% of the cost of transporting the donated agricultural products.
(Held under submission in Senate Appropriations Committee)
The bill is contained in AB 397* (Hannigan-D) which was vetoed by the Governor.
AB 366* (Hannigan-D) - Corporation Taxes: Biopharmaceuticals
Amends the income apportionment formula for biopharmaceuticals or any other biotech research and development.
(Died in Assembly Revenue and Taxation Committee)
AB 397* (Hannigan-D) - Income/Corporation Taxes
Makes the following changes in the tax laws:
1. Enhances the enterprise zone hiring credit for aerospace workers.
2. Increases the 8% tax credit to 10% and the 12% tax credit to 24% for biopharmaceutical, bio-technology, medical devices and high-technology research activities.
3. Extends manufacturers' investment credit and net operating loss carryover for biopharmaceutical and biotechnology start-ups.
4. Extends manufacturers' investment tax credit so that semiconductor manufacturers can receive a tax credit for the special purpose buildings they contract.
5. Conforms state law with federal law relating to expenses of small business personal property which was contained in SB 38 (Lockyer-D).
6. Eliminates the foreign payroll factor computation in the united tax law, thus permitting a 75% dividend deduction regardless of fluctuations in foreign payrolls (contained in SB 249 (Alquist)).
[PAGE 672]
7. Provides for tax credits for construction of farmworker housing.
8. Provides for a credit for transportation of donated food products (contained in AB 364 (Cannella-D)).
9. Conforms with the 1993 federal change which expanded its so called mark to market sale by requiring all securities dealers' incentives to be valued at market value (i.e. mark to market), with any unrealized gain or loss to be recognized for tax purposes.
10. Conforms state law with federal law relating to discharge of indebtedness.
11. Increases the recovery period for nonresidential real property conforming with the federal law.
12. Requires rate mill corporation tax payments to be based on 98% of the current years' tax, in partial conformity with federal law.
13. Conforms with the new federal law restrictions of deductions of interest paid to foreign entities.
14. Conforms with new federal law concerning denial of special treatment concerning payments to related or deceased partners.
Vetoed by the Governor
Similar legislation is SB 681* (Alquist-D) which is on Assembly Third Reading File.
AB 458* (Ducheny-D) - Income Tax: Vacant Properties
Prohibits any taxpayer, except certain lenders, that owns substantial vacant properties from receiving any deduction for interest, taxes, depreciation or amortization incurred.
(Refused concurrence in Senate amendments; reconsideration granted; on Assembly Unfinished Business File)
AB 517* (Tucker-D) - Los Angeles Revitalization Zone: Tax Credits
Allows a tax credit equal to 15% of the cost paid or incurred on or after July 1, 1995 for qualified projects purchased from a minority-owned manufacturing business located in an enterprise zone or program area that is located within the Los Angeles Revitalization Zone.
(In Assembly Revenue and Taxation Committee)
[PAGE 673]
AB 519* (Tucker-D) - Income/Corporation Taxes: California Products
Allows a tax credit for an amount equal to 10% of the amount paid or incurred by a project owner for steel products or components fabricated in California and used in construction projects located in California.
(In Assembly Revenue and Taxation Committee)
AB 538* (Archie-Hudson-D) - Tax Credits
Enacts the Small Business Tax Incentive Act of 1995 which allows small manufacturers and small manufacturing businesses that apply computer technology in an industrial setting to claim a tax credit equal to 50% of wages paid to qualified employees in a training program.
(On Assembly Inactive File)
AB 546* (Davis-D) - Income Tax: Capital Loss from Sale of Residence
Allows for income tax deductions against income for any loss resulting from the sale or exchange of an individual's principal residence. Limits the deduction to a maximum of $125,000 and losses resulting from physical damage caused by a natural disaster would not qualify.
(In Senate Revenue and Taxation Committee)
AB 556* (Ducheny-D) - Corporation Tax Credits: Headquarters
Provides a tax credit equal to 6% of eligible costs paid by a qualified taxpayer that either locates a new corporate headquarters or maintains or expands an existing corporate headquarters in this state.
(In Senate Revenue and Taxation Committee)
AB 604* (Knight-R) - Income Taxes: Military Pension Insurance
Exempts from income for California tax purposes any military retirement or military pension pay received by nonresidents.
(In Senate Revenue and Taxation Committee)
[PAGE 674]
AB 643* (Setencich-R) - Income/Corporation Tax Credits: Health Benefit
Creates a tax credit equal to the amount of premiums paid or incurred during the taxable year by specified small business taxpayers to obtain health benefits coverage for the taxpayers' employees or their dependents.
(In Assembly Revenue and Taxation Committee)
Similar legislation is AB 912* (Cunneen-R) which is in Assembly Revenue and Taxation Committee, and AB 1757* (Knowles-R) which is in Assembly Revenue and Taxation Committee.
AB 647* (Bowen-D) - Corporation Taxes: Minimum Tax
Reduces the annual minimum franchise tax from $800 to $400.
(In Assembly Revenue and Taxation Committee)
AB 703* (Setencich-R) - Income/Corporation Taxes: Oil and Gas
Makes the following changes regarding the tax treatment of the oil and gas industry. (1) Provides a credit equal to 1/3 of the federal enhanced oil recovery credit; (2) expands the existing manufacturers' investment credit to allow taxpayers involved in oil and gas extraction to claim the credit, and (3) increases depletion deductions for oil and gas wells.
(Failed passage in Assembly Revenue and Taxation Committee; reconsideration granted)
AB 736* (Cortese-D) - Income/Corporation Taxes: Telecommuting Tax Credit
Provides for a personal and corporate tax credit for telecommuting. Allows a home deduction for taxpayers who telecommute from offices within their homes.
(In Assembly Revenue and Taxation Committee)
AB 743* (Kuykendall-R) - Income/Corporation Taxes: Discharge of Indebtedness
Conforms state law to federal law with regards to (1) the treatment of income from the discharge of qualified real property business indebtedness and (2) the application of passive activity loss sales to rental real estate activity.
(In Senate Rules Committee)
[PAGE 675]
AB 744* (Kuykendall-R) - Corporation Taxes
Requires the Franchise Tax Board to cancel any tax, penalty, or interest for certain corporations that have accumulated liabilities due to incomplete dissolution of operations if certain conditions are met and the corporation pays a fee of $200. Establishes a graduated minimum franchise tax for the first 4 years after formation of any bank or corporation.
(In Senate Revenue and Taxation Committee)
AB 759* (V. Brown-D) - Income/Corporation Tax: Low Emission Vehicles
Extends the January 1, 1996 sunset date for the income tax and corporation tax law emission credits to January 1, 2002.
(In Assembly Appropriations Committee)
AB 773* (Brulte-R) - Income/Corporation Tax: Rate Reduction
Reduces the income tax and corporation tax rates from those in effect in 1995 by 15%, phased in over a 3-year period beginning in 1996. This is the Governor's initiative proposal.
(Failed passage in Senate Revenue and Taxation Committee)
Similar legislation is SB 706* (Maddy-R) which is in Senate Revenue and Taxation Committee, and AB 1369* (Brulte-R) which failed passage in Assembly Revenue and Taxation Committee; reconsideration granted.
AB 850* (Morrissey-R) - Income Tax: Qualified Retirement Income
Enacts the Retirement Income Protection Act to provide under the income tax law in the case of a nonresident income from sources within this state is not to include qualified retirement income received by a nonresident up to and including $50,000 in the aggregate during the taxable year, from any defined compensation arrangement.
(In Assembly Revenue and Taxation Committee)
AB 913* (Cunneen-R) - Income/Corporation Tax Credits: Ridesharing
Extends the January 1, 1996 sunset for the credits for employer-sponsored ridesharing programs, employer-provided transit passes, and employee vanpool subscription costs to January 1, 2001.
(In Senate Revenue and Taxation Committee)
[PAGE 676]
AB 916* (Cunneen-R) - Corporation Taxes: Unity Tax
Allows a 100% deduction for foreign dividends and does not allocate any interest expense to those dividends. Excludes Subpart F income from inclusion in a water's-edge group. Excludes Canadian and Mexican affiliates from the definition of water's-edge. Excludes 80/20 corporations from the definition of water's-edge.
(In Assembly Revenue and Taxation Committee)
AB 917* (Cunneen-R) - Income/Corporation Tax: Research and Development
Provides a tax credit for qualified biopharmaceutical and high technology industries research and development and a 24% credit for basic biopharmaceutical and high technology industries research and development.
(Held under submission in Senate Appropriations Committee)
AB 1011 (Weggeland-R) - Income Tax: Notice to Withhold
Allows the Franchise Tax Board, under a pilot program, to issue orders to withhold to financial institutions using magnetic media, electronic transmission or other electronic technology under specified circumstances.
Chapter 222, Statutes of 1995
AB 1057* (Richter-R) - Income/Corporation Taxes: Unprocessed Timber
Repeals the current law that conforms world-wide unitary operations to federal law regarding the sourcing to softwood timber to U.S. source income, and that includes sales of any unprocessed softwood timber that was cut in California and sold abroad in the income apportionment formula for purposes of determining California income for tax purposes.
(Failed passage in Assembly Revenue and Taxation Committee; reconsideration granted)
AB 1082* (Archie-Hudson-D) - Los Angeles Revitalization Zone
Extends the sunset date of the Los Angeles Revitalization Zone (LARZ) from December 1, 1998 to December 1, 2003. Extends the tax incentives allowed to qualified taxpayers in LARZ for 5 years.
(Held under submission in Assembly Revenue and Taxation Committee)
[PAGE 677]
AB 1098* (Woods-R) - Corporation Taxes: Minimum Franchise Tax
Provides an exemption from the minimum franchise tax for the first 5 income years after the formation of any bank or corporation.
(On Assembly Third Reading File)
AB 1118* (Kuykendall-R) - Income/Corporation Taxes: Disaster Losses
Provides special disaster loss treatment for losses sustained as a result of any declared disaster in this state.
(In Assembly Revenue and Taxation Committee)
AB 1187 (Takasugi-R) - Tax Credits: Employment of Pupils
Allows a regional occupational center or program to arrange for the employment of pupils, and allows a tax credit to employers for pupils enrolled in such programs or work experience programs.
(Failed passage in Senate Revenue and Taxation Committee; reconsideration granted)
AB 1207* (Mazzoni-D) - Income/Corporation Tax Credits: School Facility Construction
Creates a tax credit equal to 30% of the cost paid or incurred by a taxpayer for establishing or constructing a school facility primarily for the children of employees of the taxpayer or of the taxpayer's tenant leasing commercial or office space.
(In Assembly Appropriations Committee)
AB 1224* (Pringle-R) - Income Tax: Taxable Income
Provides an exemption from taxation under the income tax law for every individual whose taxable income does not exceed $15,000 ($30,000 if the individual is a head-of-household).
(In Assembly Revenue and Taxation Committee)
[PAGE 678]
AB 1253 (Campbell-D) - Income/Corporation Tax Credit: Workplace Literacy
Provides up to a 30% tax credit, up to $150 per employee, for costs incurred by employers participating in the Workplace Literacy Demonstration Project administered by the State Department of Education.
(Held under submission in Senate Appropriations Committee)
AB 1442* (Baca-D) - Tax Credit: Environmental Mitigation
Provides for tax credits for taxpayers who must comply with any environmental mitigation requirement, as specified.
(In Assembly Revenue and Taxation Committee)
AB 1446* (Baldwin-R) - Income Tax Credit: Children
Provides for an additional state income tax credit for each child of a qualified taxpayer that is under the age of 13 years. The credit is equal to $500 per child.
(In Senate Revenue and Taxation Committee)
AB 1502* (Brewer-R) - Corporation Tax: Manufacturing Credit
Expands the existing Manufacturers' Investment Credit by allowing eating establishments to claim the credit. In addition, adds tangible personal property used in Standard Industrial Classification 5812 to the types of qualified property.
(In Senate Revenue and Taxation Committee)
AB 1550* (Sher-D) - Income/Corporation Taxes: Fish Habitat
Amends the existing tax credit allowed to taxpayers who restore or improve salmon or steelhead trout habitats by increasing the maximum aggregate amount of credits that could be allocated in any year from $500,000 to $1 million.
(Failed passage in Assembly Revenue and Taxation Committee; reconsideration granted)
[PAGE 679]
AB 1622* (McDonald-D) - Corporation Taxes: Exclusions
Conforms California law to federal law by exempting from gross income interest and dividend income on specified deposits and investments held in the United States by foreign governments and related organizations.
(On Assembly Inactive File)
AB 1624* (McDonald-D) - Income Tax: Returns
Allows taxpayers to amend their filing status after the Franchise Tax Board has issued a proposed assessment to the taxpayers.
(On Assembly Inactive File)
AB 1627 (McDonald-D) - Income Tax: Withholding
Modifies the existing notification requirement to specify that no later than the effective date of the preliminary title request, a real estate escrow agent must provide written notification to sellers of California real estate of the state's withholding requirement.
(In Assembly Revenue and Taxation Committee)
AB 1670* (Takasugi-R) - Income/Corporation Taxes: Enterprise Zones
Expands definitions of qualified individuals/employees for purposes of the enterprise zone/program area hiring credits and makes similar changes in the Local Military Base Recovery Area Act.
(Held under submission in Assembly Appropriations Committee)
Similar legislation is AB 1766* (Baldwin-R) which failed passage in Assembly Revenue and Taxation Committee)
AB 1759* (Knowles-R) - Income Tax Credit: Health Insurance
Provides for a maximum tax credit of $500 for self-employed individuals who purchase a health insurance policy during the taxable year.
(In Senate Revenue and Taxation Committee)
[PAGE 680]
AB 1846* (Napolitano-D) - Income/Corporation Taxes: Employee Training
Provides employers with a credit equal to 50% of the cost of training an individual hired and trained in an agreement with a community college.
(In Assembly Revenue and Taxation Committee)
AB 1905* (Cunneen-R) - Income tax Exclusions: Education Assistance
Continues the exclusion from employee gross income (not to exceed $5,250 per year) of the amount that an employer pays or incurs for educational assistance to an employee.
(In Senate Revenue and Taxation Committee)
AB 31XX* (Sweeney-D) - Income Tax: Local Fiscal Restoration
Extends the application of the highest marginal income tax rates. Provides that increased revenue from this extension is to provide local fiscal restoration.
(On Assembly Third Reading File)
[PAGE 681]
SB 53* (Craven-R) - Property Tax: Mobilehome Parks
Changes, from 18 months to 36 months, the period that a mobilehome park may be held by an intermediate entity before the park is transferred to a resident-owned organization without having the acquisition by the intermediary be considered a change in ownership subject to reassessment. Also, for Los Angeles County, the time frame is to be increased to 76 months for a mobilehome park initially transferred in October of 1991.
Chapter 687, Statutes of 1995
SB 54 (Ayala-D) - Property Taxation: Revenue Allocation
Revises the annual tax increment allocated to each jurisdiction with respect to any property tax revenue that is derived from the taxation of any housing unit, residence, or residential development that is done on or after January 1, 1996, as specified.
(In Senate Local Government Committee)
SB 97* (Thompson-D) - County Property Tax Losses Reserve
Reduces from 3% to 2% the percentage limitation on county property tax loss reserve funds.
Chapter 3, Statutes of 1995
SB 136* (Dills-D) - Property Tax: Lottery
Allows the imposition of property taxes or licensee fees for any non-cash prize awarded by the State Lottery.
Chapter 531, Statutes of 1995
SB 327 (Campbell-R) - Property Tax Lien Date
Moves the lien date from March 1 to January 1 for locally assessed property, starting with the January 1, 1997 lien date and each lien date thereafter.
Chapter 499, Statutes of 1995
[PAGE 682]
SB 534 (Hughes-D) - Property Tax: Welfare Exemption
Clarifies that the property tax welfare exemption applies to both the basic 1% tax rate as well as any add-on debt rates. Requires tax-defaulted property to be sold at the higher of (a) 50% of the fair market value, or (b) the total amount necessary to redeem, plus costs as defined, as specified. Specifies that the Assessor must determine the fair market value of the property within 1 year immediately preceding the date of the public auction.
Chapter 496, Statutes of 1995
SB 657 (Maddy-R) - Property Tax Administration
Makes a number of substantial changes to the property tax law relating to special franchises, possessory interests, interest on refunds, assessment appeals notice and boards, administrative costs for the supplemental roll, escape assessments, and disclosure of assessor records. Provides statutory parameters for possessary interests to guide assessors and judicial authorities.
Chapter 498, Statutes of 1995
A similar bill concerning possessory interests is SB 494 (Maddy-R) which is on the Senate Unfinished Business File.
SB 713 (Senate Revenue and Taxation Committee) - Property Tax: Property Statements
Eliminates the reduced threshold amount for filing a property statement in the initial assessment year.
(On Assembly Third Reading File)
SB 716 (Senate Revenue and Taxation Committee) - Property Tax Administration
Makes numerous technical and administrative changes to the property tax administration provisions of law concerning 14 specified items.
Chapter 527, Statutes of 1995
[PAGE 683]
SB 722 (Senate Revenue and Taxation Committee) - Property Tax
Overturns a Court of Appeals decision on reassessing real property if the majority owner of a general partnership buys out the remaining owners. Makes clarifying changes in provisions of law with respect to the inclusion of veterans' organizations within the property tax welfare exemption, the assessment of aircraft, and the equalization of the assessed value of state assessed property in cities that make their own assessment. Provides that counties have no authority to exempt property with a total base year value or full value of more than $5,000, instead of $2,000 as it is in current law. Double-joined with SB 327 and SB 534.
Chapter 497, Statutes of 1995
A similar bill is SB 723 (Senate Revenue and Taxation Committee) which is in Assembly Appropriations Committee.
SB 821 (Hurtt-R) - Property Taxation: Reappraisals
Requires assessors to annually reappraise property whose value (pursuant to Proposition 8) has been reduced below the Proposition 13 adjusted base year value. Annual reappraisal would continue, at current market value, until the value again reached the Proposition 13 adjusted base year value.
Chapter 491, Statutes of 1995
SB 923 (Mello-D) - Redevelopment Agencies
Allows redevelopment agencies to be included in the class of jurisdictions which may rebate property taxes on economic revitalization manufacturing property. Requires a local agency that is a redevelopment agency to obtain the approval by a majority vote of the governing bodies of the city and county in which the agency is located, prior to having the authority to rebate any property tax revenue.
Chapter 204, Statutes of 1995
SB 1220 (Maddy-R) - Property Tax: Satellite Wagering Facilities
Exempts private entities who operate satellite wagering facilities at publicly owned fairgrounds from possessory interest property taxation.
(In Senate Governmental Organization Committee)
[PAGE 684]
SB 1223* (Calderon-D) - Property Taxation: Assessment Appeals
Requires a county board of equalization or assessment appeals board to either accept a stipulation between the county and the taxpayer with respect to the value of real property for which an application for reduction in assessment has been filed or reject that stipulation within 60 days of its filing with the board.
(In Senate Revenue and Taxation Committee)
SCA 14 (Maddy-R) - Property Tax: School Facilities
Creates an additional exception in Proposition 13 of 1978 to the 1% limit on property taxes for construction of school facilities or purchase of real property to be used for school sites. Requires a 58% vote for approval of bonds and increase of property tax for school purchase and construction.
(Failed passage on Senate Floor; placed on Senate Inactive File)
SB 2X* (Thompson-D) - Property Taxation: Disaster Relief
Provides the state to reimburse each county, for which a state of disaster was declared, for the estimated loss of property tax revenue lost as a result of the storms and floods of 1995. Specifies the estimated loss of revenue is not to include property tax revenue reduction to school districts and county offices of education.
Chapter 5, Statutes of 1995-96, First Extraordinary Session
Similar bills are: AB 1X* (W. Brown-D) which became Chapter 1, Statutes of 1995-96, First Extraordinary Session; AB 3X* (Firestone-R) which became Chapter 4, Statutes of 1995-96, First Extraordinary Session; and AB 11X* (McPherson-R) which died in Assembly Revenue and Taxation Committee.
AB 3* (Baca-D) - Property Tax: Veterans Exemption
Extends for 5 years the sunset date on the current veterans property tax exemption.
Chapter 536, Statutes of 1995
[PAGE 685]
AB 282 (Hauser-D) - Property Tax: Assessment Reduction
Requires the assessor to maintain a list of properties subject to appeal with a value exceeding $5 million. Provides that no reduction in value as a result of an appeal can be made unless the property has been on the list for at least 120 days.
(In Assembly Revenue and Taxation Committee)
AB 315 (McDonald-D) - Property Tax: Entrepreneurial Profit
Provides that in valuing special use properties using the cost approach, the assessor shall not add for entrepreneurial profit unless he or she has market-derived evidence of the existence of entrepreneurial profit that has not been fully offset by physical deterioration or economic obsolescence.
Chapter 399, Statutes of 1995
AB 511* (Harvey-R) - Property Tax: Revenue: County Pipelines
Permits the county assessor and the auditor/controller to allocate pipeline assessments and tax revenue, respectively, to the county and the jurisdictions within the county in the same manner as state assessments and the revenue therefrom are allocated.
Chapter 32, Statutes of 1995
AB 818* (Vasconcellos-D) - Property Tax Administration
Establishes a 3-year state-county property tax administration loan program to supplement property tax administration funding.
Chapter 914, Statutes of 1995
AB 915* (Cunneen-R) - Property Tax: Pollution Regulations
Excludes from the definition of "new construction" property voluntarily used, built, acquired, or installed for the purpose of meeting or exceeding air, water, or land pollution regulations.
(Died in Assembly Revenue and Taxation Committee)
[PAGE 686]
AB 946* (Caldera-D) - Property Taxes: Delinquencies: Tax Certificates
Allows any county to sell tax certificates, upon the recommendation of the tax collector, and by resolution of the board of supervisors adopted by September 15 of the fiscal year.
Chapter 189, Statutes of 1995
A follow-up bill is SB 724* (Lockyer-D) which contained a provision specifying that the resolution adopted by the board of supervisors be adopted during the fiscal year in which it is to apply no later than September 15 of the fiscal year.
AB 1055* (Caldera-D) - Property Tax: Administration
Includes assessment appeals boards within the calculation of property tax administrative costs. Provides the state reimburse counties for the schools' share of the property tax assessment appeals board component of property tax administrative costs.
(In Senate Revenue and Taxation Committee)
AB 1173 (Cunneen-R) - Property Tax: Valuation
Requires an annual relocation in the assessment value of manufacturing test equipment, research and development equipment, and non-production computers, including microcomputers and mainframe computers used in semiconductor, computer, or biotech operations.
(Died in Assembly Revenue and Taxation Committee)
AB 1186* (Takasugi-R) - Property Taxation Exemption: Oil Spill Equipment
Exempts from property taxation boom and shimming systems owned by nonprofit or not-for-profit entities used for oil spill response and cleanup in state or federal waters.
(On Assembly Inactive File)
AB 1252* (Caldera-D) - Property Tax Assessments
Gives counties an additional 90 days to consider assessment appeals in cases where a property owner appeals the ruling of a hearing officer shortly before the expiration of the 2-year period for resolving the dispute.
Chapter 958, Statutes of 1995
[PAGE 687]
AB 1544 (Hannigan-D) - Property Taxation: Secured Roll: Delinquent Penalties
Classifies that the delinquent penalties on the current secured roll to be allocated to the county general fund as a result of property taxes includes all penalties, and not just those associated with ad valorem taxes.
(Failed passage on Assembly Floor; placed on Assembly Inactive File)
AB 1585 (House-R) - Property Taxation: Valuation
Provides that the county assessor is not to determine a higher value for improvements on agricultural land on the basis of the installation of specified water conservation improvements.
(In Assembly Revenue and Taxation Committee)
AB 1620* (McDonald-D) - Property Tax: Assessments
Increases the number of assessment appeals boards in counties from 5 to 10. Allows hearing officers to hear assessment appeal cases involving nonresidential properties which have an assessed value not exceeding $500,000 and allows assessors to make roll corrections under specified conditions.
Chapter 164, Statutes of 1995
AB 1668 (Takasugi-R) - Property Tax
Changes the period of time over which interest is accrued for refunds of property tax. Extends indefinitely the property tax exemption for personal property used for certain aviation-related purposes (air patrol). Clarifies that cities and lighting, water, and irrigation districts are entitled to request and receive the location information of all properties that are on the unsecured roll.
(On Assembly Unfinished Business File)
[PAGE 688]
SB 3* (Thompson-D) - Sales Tax: Buddy Poppies Exemption
Exempts from sales tax Buddy Poppies or other symbolic lapel pins which memorializes U.S. military killed in foreign wars which are sold by veterans groups.
Chapter 316, Statutes of 1995
A similar bill is SB 143* (Rogers-R) which died in Senate Revenue and Taxation Committee and was in AB 3 (Baca-D) which was used for another purpose.
SB 148* (Alquist-D) - Sales Tax: Research and Development
Excludes from the definition of sale and purchase certain charges made in connection with research and development contracts, as specified.
(Died in Senate Revenue and Taxation Committee)
SB 311* (O'Connell-D) - Sales Tax: Meals to Elderly
Exempts from the sales tax meals delivered to homebound elderly or disabled persons by a nonprofit volunteer home delivery meal provider.
Chapter 240, Statutes of 1995
SB 531* (Kelley-R) - Sales Tax Permits: Animal Feed
Exempts from the requirement to obtain a seller's permit any person who engages in business in the state as a seller of feed that is exempt from sales and use taxes and who engages in no other taxable sales of tangible personal property at retail, as specified.
Chapter 696, Statutes of 1995
SB 556 (Campbell-R) - Local Sales Tax Distribution
Provides for the allocation of a local sales tax to the different cities and counties of an integrated manufacturer-retailer based on the distribution of their employees throughout the state.
(Died in Senate Revenue and Taxation Committee)
[PAGE 689]
SB 602 (Wright-R) - Use Tax Allocation: Motor Vehicles
Requires that the use tax revenue received for leased vehicles, under certain conditions, be allocated to the local jurisdictions where the original point of the vehicle transaction occurred.
Chapter 676, Statutes of 1995
SB 612 (Lewis-R) - Transaction and Use Taxes: Refunds
Requires local taxing districts, if a legal challenge to a local tax is filed within 60 days of its imposition, to place the tax revenues in an interest-bearing account until the legality of the tax is determined, as specified.
Chapter 495, Statutes of 1995
SB 681* (Alquist-D) - Sales Tax
Exempts from the sales tax tangible personal property that becomes a component part of those aircraft used as a common carrier or sold to any person who is not a resident of this state and who will not use the aircraft in the state, as a result of the maintenance, repair, overhaul, or improvement of an aircraft, in compliance with federal requirements, and any changes made for labor and services rendered with respect thereto, as specified. Requires that interest on payment of tax under the Sales Tax Law be calculated at the modified adjusted rate per annum, as specified.
(On Assembly Third Reading File)
A similar bill is AB 1555* (Kaloogian-R) which is in Assembly Revenue and Taxation Committee.
SB 710 (Craven-R) - Transactions and Use Tax Refunds
Provides that any district that levies a tax that is later declared unconstitutional is to be responsible for refunding those taxes.
(In Assembly Revenue and Taxation Committee)
[PAGE 690]
SB 717 (Thompson-D) - Transaction and Use Tax
Allows the City of Fort Bragg and the County of San Joaquin to impose additional transactions and use taxes for various purposes.
Chapter 895, Statutes of 1995
SB 718 (Senate Revenue and Taxation Committee) - Sales Tax Administration
Deletes unenforceable provisions related to mail-order sales, while providing that those provisions would become operative if congress enacts legislation authorizing states to compel collection of sales and use taxes by out-of-state retailers. Specifies that a broker of vessels or aircraft who collects sales tax reimbursement shall be required to report that tax to the Board of Equalization. Includes the 1/2% sales tax imposed under the California Constitution in the computation for the prepayment of sales taxes on motor vehicle fuel.
Chapter 555, Statutes of 1995
SB 719 (Solis-D) - Transactions and Use Taxes
Eliminates the requirement of voter approval for any transaction and use tax levied prior to January 1, 1997, but requires voter approval for the initial imposition or continuation of any transaction and use tax on and after that date.
(In Assembly Appropriations Committee)
SB 767* (Dills-D) - Sales Tax Exemption: Library Books
Provides a sales tax exemption for books purchased by public libraries which received funding from the Special District Augmentation Fund.
(Held under submission in Senate Appropriations Committee)
SB 927 (Kelley-R) - Sales Tax Exemption: Ostriches
Provides a sales tax exemption on the gross receipts from the sale of, storage, use, or other consumption of ostriches, emus, and rheas, and the feed therefor.
(Held under submission in Senate Appropriations Committee)
A similar bill is AB 521 (Harvey-R) which was also held under submission in Senate Appropriations Committee.
[PAGE 691]
SB 1105 (Leslie-R) - Local Transaction and Use Tax: Town of Truckee
Allows the Town of Truckee to levy, subject to majority voter approval of the town council and 2/3rds voter approval, a 0.5% transaction and use tax for repair and construction of city streets and roads.
Chapter 889, Statutes of 1995
SB 1124* (Watson-D) - Firearms and Munitions Surtax Law
Imposes a 5% surtax on the retail sale or use of firearms and munitions. Revenue is to be used for law enforcement purposes.
(Failed passage in Senate Revenue and Taxation Committee)
AB 143* (Martinez-D) - Sales Tax Exemptions: Thrift Store Merchandise
Exempts from sales tax used pieces of clothing or household items sold for less than $50 by thrift stores operated by a nonprofit organization.
(In Assembly Revenue and Taxation Committee)
AB 194* (K. Murray-D) - Sales Tax
Extends the sales and use tax to specified services such as repair labor, custom computer programs, janitorial, laundry, dry cleaning, and automotive services, sale of memberships to private clubs, landscaping services, taxidermy services, pet grooming services, exterminating services, furnishing of various services, funeral services, dictaphone answering services, and operating of coin-operated amusement machines.
(Failed passage in Assembly Revenue and Taxation Committee; reconsideration granted)
AB 217* (Burton-D) - Sales Tax Rate Deduction
Reduces the State Sales Tax of 4 3/4% to 1%.
(Failed passage in Assembly Revenue and Taxation Committee)
[PAGE 692]
AB 251* (V. Brown-D) - Sales Tax: Qualified Organizations Exemption
Provides a partial sales and use tax exemption for qualified organizations whose primary purpose is to provide services to children with severe emotional disturbances.
Chapter 290, Statutes of 1995
AB 358* (Hoge-R) - Sales Tax Exemption: Race Horses
Exempts from sales tax any subsequent retail sales of race horses.
(In Assembly Revenue and Taxation Committee)
AB 387* (Weggeland-R) - Sales Tax: Horse Bedding
Exempts from sales tax straw used as bedding for the stabling of horses and ultimately resold or incorporated into fertilizer products.
(In Assembly Revenue and Taxation Committee)
AB 566* (Kaloogian-R) - Sales Tax Exemption: Fuels and Petroleum Products
Exempts from the sales tax fuel and petroleum products sold to air and rail common carriers to be shipped out-of-state.
(In Senate Revenue and Taxation Committee)
AB 905 (Poochigian-R) - Sales Tax Revenues: Children's Services
Allows for the use of sales tax revenues to provide for the children's services block grants created by the bill.
(In Conference)
AB 982* (Firestone-R) - Sales Tax Exemption: Aircraft
Extends the existing sales tax exemption on watercraft parts to aircraft parts in compliance with federal requirements.
(In Senate Revenue and Taxation Committee)
[PAGE 693]
AB 1189 (Takasugi-R) - Sales Tax: Interest Payments
Makes interest paid on overpayments equal to interest charged on underpayments.
(Held under submission in Senate Appropriations Committee)
AB 1190* (Morrissey-R) - Sales Tax Rates
Reduces the State Sales Tax by 1/2% each year for 5 years decreasing the rate to 3%.
(In Assembly Revenue and Taxation Committee)
A similar bill is ACA 31 (Morrissey-R) which is also in Assembly Revenue and Taxation Committee.
AB 1193* (Takasugi-R) - Sales Tax: Work of Art
Exempts from the sales tax separately stated royalty charges paid by a retailer to an artist.
(In Assembly Revenue and Taxation Committee)
AB 1318* (Kuehl-D) - Sales Tax Exemption: Zero-Emission Vehicles
Provides a partial sales tax exemption from the sales of specified zero-emission vehicles.
(Failed passage in Assembly Appropriations Committee; reconsideration granted)
AB 1372* (McPherson-R) - Sales Tax: Transient Lodging
Exempts from sales tax the meals sold in conjunction with transient lodging, whether or not the price is separately stated.
(Died in Assembly Revenue and Taxation Committee)
[PAGE 694]
AB 1666* (Takasugi-R) - Sales Tax: Food Products
Allows retailers to pay sales tax only on taxable food sales, or to pay according to the existing formula which subjects non-taxable food to tax.
Chapter 647, Statutes of 1995
AB 1694* (Johnson-R) - Sales Tax: Motor Vehicle Loans
Provides a partial use tax exemption for a car dealer who lends a motor vehicle to any University of California or California State University employee, as specified.
(In Senate Appropriations Committee)
AB 1761 (Alpert-D) - Sales Tax: Information on Consumer
Allows a California supplier, if the retail sales price exceeds $400, to elect to provide the Board of Equalization with a California consumer's name and address in lieu of requesting the sale or use tax on transactions.
(In Senate Revenue and Taxation Committee)
[PAGE 695]
SB 183 (Kopp-I) - State Board of Equalization
Requires a vote of 3 members of the State Board of Equalization on a decision or action, as specified.
(Failed passage in Assembly Revenue and Taxation Committee; reconsideration granted)
SB 196* (Kopp-I) - Motor Vehicle Fuel and Use Taxes
Provides that if the federal gasoline and diesel fuel tax is reduced below the current rate, the state tax is to increase by the same amount so that the total state and federal tax rates remain at existing levels.
(Failed passage on Senate Floor; placed on Senate Inactive File)
SB 251 (Ayala-D) - San Bernardino County Flood Control District
Allows the San Bernardino County Board of Supervisors to levy and collect a tax or assessment for purposes of paying the costs of carrying out activities related to the federal national pollutant discharge elimination system. Allows for a majority vote election on the matter.
(In Assembly Local Government Committee)
SB 338 (Campbell-R) - State Funds
Requires that revenue derived from the assessment of fines and penalties by any state agency are not to be expended unless the Legislature specifically provides authority for the expenditure of these funds in the annual Budget Act or other legislation, as specified.
Chapter 654, Statutes of 1995
SB 647 (Kelley-R) - Local Government: Fees
Prohibits the legislative body of a local agency from delegating its authority to adopt a new fee or serious charge, or to increase an existing fee or serious charge. Requires that the public meeting held prior to the imposition or increase of a fee or charge be open.
Chapter 657, Statutes of 1995
[PAGE 696]
SB 718 (Senate Revenue and Taxation Committee) - State Board of Equalization: Taxes
Includes reference to additional taxes and fees administered by State Board of Equalization (SBE) that require financial institutions which hold assets of delinquent taxpayers to respond to the board's Notice of Levy by disclosing specified information. Extends authorization to the Taxpayer's Rights Advocate in situations that threaten the health or welfare of the taxpayer. Authorizes the SBE to contract with persons outside of California for the identification of persons or businesses who may owe taxes or other amounts. Requires that any refunds due a taxpayer pursuant to the fuel tax programs be applied to any amounts owed under the programs prior to issuing the refund. Eliminates unnecessary tasks from the jurisdiction of the State Board of Control, as specified. Limits the public notice requirement for seizures of cigarettes. Extends excise tax credit to beer manufacturers under certain circumstances. Clarifies that SBE may refund excess energy resources surcharge payments to either the utility that paid the tax or the consumer from whom the tax was collected. Authorizes SBE to collect the tire recycling fee. Allows SBE to grant relief from the late payment penalty on an emergency telephone users surcharge if the taxpayer can provide evidence of an extenuating circumstance causing the tax to be late.
Chapter 555, Statutes of 1995
SB 722 (Senate Revenue and Taxation Committee) - Taxation
Extends sales and use taxes settlement authority to other State Board of Equalization (SBE)-administered taxes. Extends the California Taxpayers' Bill of Rights provisions to the Oil Spill Response, Prevention and Administration Fee Law Program. Adds limited liability company to the definition of person to conform the Diesel Fuel Tax Law to other SBE-administered programs. These provisions were contained in a previous version of SB 724.
Chapter 497, Statutes of 1995
SB 724* (Lockyer-D) - Local Taxes: Securities Transactions
Prohibits the legislative body of any city, county, or city and county from imposing any tax/fee, or charge on or measured by the sale of any stock, bonds, or any other securities.
Chapter 962, Statutes of 1995
SB 725 (Craven-R) - Taxes and Assessments: Open Meetings
Requires a local agency to follow the Ralph M. Brown Act notice requirements before adopting any new or increased general tax or benefit assessment.
Chapter 258, Statutes of 1995
[PAGE 697]
SB 877 (Alquist-D) - Metropolitan Transportation Commission: Tax
Allows the Bay Area Metropolitan Transportation Commission to impose a tax of up to 10 cents on motor fuel sold in the 9 counties over which it has jurisdiction to be voted upon by the voters in those counties.
(In Assembly Transportation Committee)
SB 1066 (Campbell-R) - Developer Fees
Prohibits fees or taxes from being imposed on development for general revenue purposes, and subjects taxes on development to the same nexus requirements as fees, with certain exceptions.
(Failed passage on Assembly Floor)
SB 1070 (Calderon-D) - Rental Cars
Defines the types of taxes which a rental car company may exclude from its advertised rate, and provides that the taxes excluded a prorated portion of the vehicle license fee.
(On Assembly Inactive File)
SB 1077 (Greene-D) - Tax Preparers
Eliminates the Tax Preparer Program in the Department of Consumer Affairs and, instead, requires tax preparers to file a bond with the Department of Consumer Affairs.
(On Assembly Inactive File)
SB 1131* (Costa-D) - Diesel Fuel Taxes
Provides diesel fuel suppliers with cash flow relief. Reinstates the bad debt write-off for suppliers of diesel fuel until July 1, 1997. Allows state, local and federal governments to purchase dyed diesel fuel and submit the tax due directly to the state.
Chapter 34, Statutes of 1995
[PAGE 698]
SB 1144 (Watson-D) - Cigarette Tax Increase
Imposes an additional excise tax on cigarettes of 5 mills per cigarette, or 10 cents per package of 20 to fund the Childhood Health and Disability Prevention Program.
(In Senate Health and Human Services Committee)
SB 1247 (Thompson-D) - Police Protection Service Assessments
Permits the governing body of any city, county, or city and county to establish a police and sheriff protection services assessment district pursuant to prescribed procedures and subject to confirmation by an election of the people to levy assessments for police and sheriff protection services and other specified conditions.
Vetoed by the Governor
SB 1293 (Maddy-R) - Law Enforcement Assessment
Allows the establishment of an assessment district in Fresno County for law enforcement purposes, as specified.
(In Assembly Local Government Committee)
SCA 13 (Hurtt-R) - Taxes and Assessments: Taxpayers Consent
Classifies taxes levied by a local government or a special district as general or special taxes, and establishes in addition to the 2/3 approval requirement for special taxes, a majority vote approval requirement for new and certain existing general taxes. Establishes procedures and requirements for the imposition of fees and charges, including a voter approval requirement for the imposition. Establishes various procedures and requirements for benefit assessments.
(Failed passage in Senate Local Government Committee; reconsideration granted)
Similar legislation is SCA 15 (Haynes-R) which is in Senate Local Government Committee and ACA 13 (Johnson-R) which is in the Assembly Local Government Committee.
[PAGE 699]
SCR 26 (Hayden-D) - Tax Expenditures
Directs the Legislative Analyst to analyze each tax expenditure program, as specified, to determine if program objectives are being realized, whether each program's benefits exceed its revenue cost, and whether there is a less costly way of providing the same benefits and report thereon to the Legislature.
(In Assembly Rules Committee)
SJR 9 (Kopp-I) - Fuel Taxes
Requests the President and Congress to enact appropriate legislation to eliminate all federal fuel taxes, except as specified, and that the states be given the discretion of levying their own fuel taxes, as provided.
Resolution Chapter 69, Statutes of 1995
AB 188 (Machado-D) - Parcel Taxes: Agricultural and Timber
Provides that for purposes of local parcel taxes and per-parcel benefit assessments, multiple parcels that are under the same ownership, contain a total of no more than one dwelling unit, and are zoned for agricultural or timber production, shall be considered a single "assessment unit." Does not affect the Mello-Roos taxes or assessments, nor would it affect any parcel tax or benefit assessment first imposed by July 12, 1995.
(In Assembly Local Government Committee)
Similar legislation is AB 1877 (Machado-D) which is in Assembly Local Government Committee.
AB 272 (Kuykendall-R) - Employment Taxes
Enacts the Employment Taxpayer's Bill of Rights Act of 1995. Mandates the development of a taxpayer education program by the Employment Development Department (EDD) and provides relief to employers who fail to make a timely return or payment based upon written advice from the EDD. Establishes a settlement process for employment related tax disputes within EDD.
Chapter 541, Statutes of 1995
Similar legislation is SB 299 (Campbell-R) which failed passage in Senate Industrial Relations Committee.
(Continued)