Store Research
ASSEMBLY BILL 379 (NOLAN – 1990)
CHAPTER 330, STATUTES OF 1990, AB 379
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Government Code section 7078 and Revenue and Taxation Code sections 17052.13, 17053.8, 17053.11, 17276.2, 23612, 23622, 23623, and 24416.2 were amended in 1990 following legislative approval of Assembly Bill 379. (See Exhibit #1h) This bill was introduced on January 30, 1989 by Assembly member Pat Nolan, at the request of the Franchise Tax Board. (See Exhibits #1a and #18 document PE-3)
Assembly Bill 379 was assigned to the Assembly Committee on Economic Development and New Technologies and both the Senate Committee on Governmental Organization and Committee on Revenue and Taxation where policy issues raised by the bill were considered. (See Exhibits #3, #8, and #10) The fiscal ramifications of the bill were considered by the Assembly Committee on Ways and Means and the Senate Committee on Appropriations. (See Exhibits #4 and #2) Six amendments were made to Assembly Bill 379. (See Exhibits #1b through #1g and #2) Subsequent to legislative approval, Governor George Deukmejian signed the bill on July 18, 1990 and it was recorded by the Secretary of State on that day as Chapter 330 of the Statutes of 1990. (See Exhibit #1h)
Assembly Bill 379 contained an urgency clause which caused the bill to go into immediate effect. The reason for this urgency can be found in section 10 of Chapter 330.
Assembly member Nolan described this bill in a letter to Governor Deukmejian, stating, in part:
. . . The bill would change the unitary tax method for enterprise zone businesses, from a three factor formula to a two factor formula. The two factor formula would eliminate the sales factor.
Currently, multi-state businesses in these zones are factories used to manufacture products to distribute to offices out of the zone. Sales do not occur at these factories. Under the three factor formula, using sales, the amount of earned credits these businesses can sue is severely limited.
(See Exhibit #18,document PE-3)