Tax News
New Laws Enacted

Governor Brown used every last minute until the October 9 deadline to consider the bills presented to him. Of the 870 bills passed by the Legislature this year, the Governor signed 745 and vetoed 125, an 86 percent pass rate. In comparison, twenty four of the thirty bills that would impact us were signed into law, an 80 percent pass rate.

Bills affecting us that were enacted during 2011 include:

  • A major tax administration bill that was enacted to protect the state budget and strengthen fiscal stability in California.
  • An FTB-sponsored bill that denies a deduction for specified fraudulent activity.
  • A 2011/2012 fiscal year budget trailer bill.
  • Changes to the top 250 debtors list.
  • Several issue-specific federal conformity bills.

The following table summarizes the chaptered legislation administered
by us:

Bill Number


Chaptered Number

AB 36

Conformity - Medical Care Expense Exclusion/Deduction for Children Under 27


AB 50

Disaster Loss - Exclusion/Compensation Received for San Bruno Gas Explosion


AB 152

Credit - Donations of Fresh Fruits/Vegetables to Food Bank


AB 242

Conformity - Federal Health-Care Reform


AB 315

Nonadmitted Insurance/Surplus Line Brokers


AB 361

Benefit Corporations


AB 560

Extended Inclusion of Architecture Service to January 1, 2019 for Limited Liability Partnerships and Foreign Limited Liability Partnerships


AB 564

Voluntary Contribution - Municipal Shelter Spay-Neuter Fund Re-established


AB 624

Credit - Community Development Financial Institutions Investments Credit Extended to December 31, 2017


AB 764

Voluntary Contribution - Child Victims of Human Trafficking Fund


AB   971

Voluntary Contribution - California Sea Otter Fund Re-established


AB 1023

Code Maintenance to Various California Codes


AB 1069

Credit - California Motion Picture Credit Extended to July 1, 2015


AB 1369

Broadens Disallowance of Deductions for Expenses and Cost of Goods Sold Attributable to Illegal Activities Broadened


AB 1423

Conformity - Regulated Investment Company (RIC) Modernization Act of 2010


AB 1424

Revise Top 250 Tax Debtor List to Top 500/Update Twice Each Year/License Suspension for Debtors on List/Prohibit State Contracts with Debtors on List/Reciprocal Refund Offsets with Other States/Collection Agreements with Other States or IRS


AB 1428

Disaster Loss - Deductions/Excess Loss Carryover/March 2011 Mendocino County Tsunami



SB 24

State Agencies Notify California Residents of Any Breach of Security of System or Data/Additional Notification Requirements/If Notification to More Than 500 Residents Must Also Submit Electronically to Attorney General


SB 86

FTB Revise Tax Form Instructions to Include Use Tax Lookup Table/Eliminate Refundable Portion of Child and Dependent Care Expense Credit/Financial Institution Record Match/Voluntary Compliance Initiative


SB 164

Voluntary Contributions - State Children's Trust Fund and Rare and Endangered Species Preservation Program Extended to December 31, 2017


SB 559

Business Expense Deduction/Prohibit Deduction for Discriminatory Clubs/Except for Genetic Information


SB   583

Voluntary Contributions - ALS/Lou Gehrig's Disease Research Fund Re-established


SB 617

State Agency Regulations/Standardized Impact Analysis/Financial and Administrative Accountability


SB 647

FTB to Collect Juvenile Court Appointed Counsel Costs


Below is a table summarizing vetoed legislation that would have been administered by us:

Bill Number



AB 172

State Agencies Post Specified Audits and Contracts to the Reporting Transparency In Government Internet Website

AB 1044

Registered Warrants No Redemption Date/Tax Liabilities


SB 14

State Budget/Performance-Based Budget

SB 223

Require FTB to Report to the DMV Estimated Revenue Loss from Local Vehicle Assessment in San Francisco

SB 364

Business Tax Incentive Reporting Information and Penalty

SB 508

Require Tax Credit to Have 10 Year Sunset

Back to December 2011 Tax News