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Assembly Bill 2341 (Villines 2006)

Chapter 773, Statutes of 2006

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Assembly Bill 2341 was introduced on February 23, 2006 by Assembly member Michael Villines.   (See Exhibit #1a) The measure contained an assortment of tax proposals affecting a wide variety of sections in the California Codes.  (See Exhibit #1 generally) While the bill overall is considered an "author" bill, the analysis of the Senate Committee on Revenue and Taxation indicated it "reflects FTB Legislative Proposals." (See Exhibit #7b, page 2; see also Exhibit #8, document SP-18) 

 

Assembly Bill 2341 was assigned to the Assembly Committee on Revenue and Taxation and the Senate Committee on Revenue and Taxation where policy issues raised by the bill were considered.  (See Exhibits #3 and #7)  The fiscal ramifications of the bill were considered by the Assembly Committee on Appropriations and the Senate Committee on Appropriations.  (See Exhibits #5 and #9)  Five amendments were made to Assembly Bill 2341.  (See Exhibits #1b through #1f and #2)  Subsequent to legislative approval, Governor Arnold Schwarzenegger signed the bill on September 29, 2006 and it was recorded by the Secretary of State on that day as Chapter 773 of the Statutes of 2006.  (See Exhibit #1g)

 

The Senate Office of Senate Floor Analyses prepared a Third Reading Analysis on Assembly bill 2341 as last amended August 24, 2006 digesting its provisions, stating:

 

            This bill amends both the Corporations Code and the Revenue & Taxation Code by eliminating the tax clearance certificate process for dissolving business.  It also provides that the $800 minimum tax will not be assessed for a taxable year after the year for which the final return is filed, so long as (1) the entity did not do business in California after the final return was filed, and (2) the dissolution, cancellation or surrender of the business is completed before the end of the 12 month period  following the date the final tax return is filed with Franchise Tax Board. 

 

          Senate Floor Amendments  f 8/24/06 provide contingent 

          effectiveness amendments regarding code sections common to 

          this bill and to AB 339 (Harman).

          (See Exhibit #10b, page 1)