Store Research
SENATE BILL 572 (GARAMENDI-1987)
CHAPTER 1139, STATUTES OF 1987
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As enacted Senate Bill 572 affected a multitude of sections regarding Bank and Corporation taxes. (See Exhibit #1e) Senate Bill 572 was introduced on February 24, 1987 by Senator John Garamendi, Chair of the Senate Committee on Revenue and Taxation. (See Exhibits #1a and #3)
As introduced Senate Bill 572 proposed to amend section 75.60 of the Revenue and Taxation Code relating to property taxation and supplemental assessments. (See Exhibit #1a) In this form the bill was assigned to the Senate and Assembly Committees on Revenue and Taxation where policy issues raised by the bill were considered. (See Exhibit #2 and #3) The bill was amended once in each house. (See Exhibits #1b, #1c, and #2) The Senate refused to concur in the Assembly amendments and the bill was referred to a Conference Committee. (See Exhibit #2) The purpose of a Conference Committee is to bring together six legislators, three from each House, in an attempt to reach a compromise on a bill’s language which is acceptable to both the Senate and the Assembly.
The Conference Committee on Senate Bill 572 made amendments to the bill in a conference report on September 10, 1987, which were accepted by the Legislature. (See Exhibits #1d and #2) The Conference Committee amendments deleted the entire prior version of the bill and replaced it with the provisions which were ultimately enacted. (See Exhibit #1d) Following approval by the Legislature, Governor George Deukmejian signed the bill on September 24, 1987, and it was recorded by the Secretary of State on the following day as Chapter 1139, Statutes of 1987. (See Exhibits #1e and #2)
This measure was a part of the tax conformity legislation passed in 1987 by the Legislature, whose purpose was to conform California tax provisions on bank and corporation taxes to those of the Federal Tax Reform Act of 1986. (See Exhibit #12, page 4) Assembly Bill 53, enacted as Chapter 1138, was the measure making conformity changes to the personal income tax law. (See Exhibit #15) Some of the provisions of Senate Bill 572 first appeared in Assembly Bill 53, and then, as the latter became the vehicle for the personal income tax law changes, amended out of it, and amended into Senate Bill 572. If research of this competing measure is desired, please let us know.
The tax conformity provisions were placed in Senate Bill 572 just before the bill was sent to the Governor, in Conference Committee amendments adopted September 8, 1987, as part of the deal that also amended Assembly Bill 53. (See Exhibit #1d)
Senator Garamendi provided the following background on Senate Bill 572 in news releases to the media:
After two weeks of hearings and many long hours of negotiations, a two house conference committee has arrived at bi-partisan legislation that meets the goals of simplicity and conformity in a manner that makes sense for California.
The compromise legislation which will likely be heard in the Senate and Assembly next Thursday deals with conformity for individuals (AB 53) and businesses (SB 572) in a revenue neutral approach that is clearly driven by the need to reach the greatest degree of conformity with federal law that is feasible for California. We even attain an objective that the federal government missed—simplifying tax forms in step with policy.
(See Exhibit #4, document SP 9)