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SENATE BILL 1229 (SENATE COMMITTEE ON REVENUE AND TAXATION – 1999)

CHAPTER 987, STATUTES OF 1999, SB 1229

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Numerous sections from the Revenue and Taxation Code, along with a few sections in the Health and Safety Code, Probate Code, and Unemployment Insurance Code, were all affected in 1999 following legislative passage of Senate Bill 1229, which was introduced by the Senate Committee on Revenue and Taxation on February 26, 1999.  (See Exhibit A, #1a)  The Franchise Tax Board appeared to be the source of the bill.  (See Exhibit A, #7a and #16, document PE-2)

Senate Bill 1229 was assigned to the Senate and Assembly Committees on Revenue and Taxation where policy issues raised by the bill were considered.  (See Exhibit A, #3 and #9)  The fiscal ramifications of the bill were considered by the Senate and Assembly Committees on Appropriations.  (See Exhibit A, #5 and #11)  Four amendments were made to Senate Bill 1229 as the bill was considered by both Houses.  (See Exhibit A, #1b through #1e)  Subsequent to legislative approval, Governor Pete Wilson signed Senate Bill 1229 on October 10, 1999, and it was recorded by the Secretary of State on that date as Chapter 987 of the Statutes of 1999.  (See Exhibit A, #1f and #2)

The Third Reading Analysis of the Office of Senate Floor Analyses prepared on the bill as last amended on September 2, 1999 described this bill as follows:

This bill includes a number of Franchise Tax 
Board (FTB)-sponsored provisions, including (1) requiring 
the reporting of federal adjustments made to 
taxpayer-reported amounts, (2) providing consistency 
between the check-off funds, (3) providing relief for 
limited partnerships which incompletely canceled when they 
ceased doing business, (4) clarifying that substandard 
housing could be housing that is either occupied or 
unoccupied, (5) clarifying that married taxpayers filing as 
a head of household cannot claim the dependent parent 
credit, and (6) making a number of other minor and 
technical changes.

Assembly Amendments  of 9/2/99:

1.    Delete the nonresident alimony deduction provisions.

2.    Will make the change removing the requirement for 
      corporations to be domiciled in California in order to 
     deduct dividends received from affiliated insurance 
    company inspection because SB 1125, which the bill is 
     joined with, is now a two-year bill.

3.    Make other clarifying changes.

4.    Double-join with SB 473, SB 1125, and AB 1208.
    (See Exhibit A, #7b)