Store Research
ASSEMBLY BILL 802 (KLEHS – 1989)
AS AMENDED BY CHAPTER 1352, STATUTES OF 1989
Some bill research does not include the Governor's file because at the time we researched the bill, the sitting Governor had not released his chaptered bill file. If the Governor's file is not included with this particular research, please contact our office (1-530-666-1917 or quote@legintent.com) and we will be happy to provide this file at no charge if it is available. Please Note: Governor files did not exist prior to 1943.
Assembly Bill 802 was introduced by Assembly member Johan Klehs on February 22, 1989. (See Exhibit #1a) The bill affected numerous sections of the Revenue and Taxation code concerning the personal income tax and the bank and corporation tax. (See Exhibit #1g)
As introduced, Assembly Bill 802 proposed to amend Revenue and Taxation Code sections 24412 and 24413 only. (See Exhibit #1a) Assembly Bill 802 was heard in the Assembly Committee on Revenue and Taxation and the Assembly Committee on Ways and Means. (See Exhibits #3 and #5) The bill was not amended in the Assembly and it was approved on May 25, 1989 and sent to the Senate. (See Exhibits #1a and #2)
In the Senate, the Committee on Revenue and Taxation and the Committee on Appropriations considered the bill. (See Exhibits #2 and #9) The Senate amended the bill on July 12, August 21, August 25, September 8 and September 12, 1989. (See Exhibits #1b through #1f and #2) The July 12th amendment gutted the prior version of the bill and added the substantive provisions to amend and add a long list of Revenue and Taxation Code sections. (See Exhibit #1b) Assembly Bill 802 was approved by the Senate on September 14, 1989, the Assembly accepted the Senate’s amendments on September 15, 1989, and Governor Pete Wilson signed the bill on October 2, 1989 becoming Chapter 1352 of the Statutes of 1989. (See Exhibits #1g and #2)
Assembly Bill 802 contained an urgency clause which caused the bill to become effective immediately upon enactment. The reason for the urgency can be found in Section 172 of Chapter 1352. (See Exhibit #1g, page 116, SEC. 172)
The Senate Committee on Revenue and Taxation’s analysis of the bill indicated that Assembly Bill 802 was a federal conformity measure making technical and miscellaneous changes to conform to 1987 federal tax law changes and the federal Technical and Miscellaneous Revenue Act of 1988 (TAMRA) and the Family Support Act. (See Exhibit #9, page 1) It is a successor to three bills introduced in 1987 to conform to the federal changes which were unsuccessful for a variety of revenue related reasons, Assembly Bill 2715, Assembly Bill 2305 and Senate Bill 2294. (Id.)
Apparently, the Franchise Tax Board produced a study as well as a “Summary of Federal Income Tax Changes – 1988 (the "Big Blue Book")” which are a part of the background to this 1989 legislation. (See Exhibit #9, page 1) We provide this document as Exhibit #17.
The author’s letter to the Governor provided the following information concerning Assembly Bill 802:
Assembly Bill 802, which is before you for signature is a technical income tax measure designed to simplify and clarify the state tax code.
In November 1988, Congress enacted a number of technical and miscellaneous changes to federal tax law. AB 128 (Klehs), which you signed into law earlier this year, adopted some of these changes for the 1988 tax year only. This bill adopts most of the nonsubstantive changes made in 1987 and 1988. It takes effect for the 1989 tax year and thereafter.
Without this bill, a great deal of taxpayer errors will result. State law will differ from federal law in a number of small, but significant, ways. Tax forms, which are already confusing, will be lengthier and more complex since each of these differences must be explained to the taxpayers.
(See Exhibit #15, document PE-1)