Bill Text: CA AB36 | 2011-2012 | Regular Session | Chaptered

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Bill Title: Income and employment taxes: federal conformity: Health

Spectrum: Moderate Partisan Bill (Democrat 4-1)

Status: (Passed) 2011-04-07 - Chaptered by Secretary of State - Chapter 17, Statutes of 2011. [AB36 Detail]

Download: California-2011-AB36-Chaptered.html

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BILL NUMBER: AB 36	CHAPTERED
	BILL TEXT

	CHAPTER  17
	FILED WITH SECRETARY OF STATE  APRIL 7, 2011
	APPROVED BY GOVERNOR  APRIL 6, 2011
	PASSED THE SENATE  MARCH 24, 2011
	PASSED THE ASSEMBLY  MARCH 3, 2011
	AMENDED IN ASSEMBLY  FEBRUARY 18, 2011
	AMENDED IN ASSEMBLY  JANUARY 27, 2011

INTRODUCED BY   Assembly Members Perea and Blumenfield
   (Principal coauthor: Assembly Member Beall)
   (Principal coauthor: Senator Padilla)
   (Coauthor: Assembly Member Hagman)

                        DECEMBER 6, 2010

   An act to amend Section 23701i of, and to add Sections 17131.7 and
17201.1 to, the Revenue and Taxation Code, and to add Section 938.4
to the Unemployment Insurance Code, relating to taxation, to take
effect immediately, tax levy.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 36, Perea. Income and employment taxes: federal conformity:
Health Care and Education Reconciliation Act of 2010.
   The Personal Income Tax Law and the Corporation Tax Law, in
specified conformity with federal income tax laws, provide certain
gross income exclusions, as specified.
   This bill would, under both laws, provide additional conformity
with federal income tax laws by adopting specified provisions of the
Patient Protection and Affordable Care Act and the Health Care and
Education Reconciliation Act of 2010 relating to gross income
exclusions for reimbursements for medical care expenses under
specified plans for dependents, as specified.
   Existing law excludes from the definition of "wages," for purposes
of the unemployment insurance law, remuneration in excess of $7,000
paid to an individual by an employer during any calendar year, with
respect to employment. That law also excludes from the definition of
"wages" the amount paid by an employer for insurance or annuities, or
into a fund to provide for any payment made to or on behalf of an
employee or any of his or her dependents under a plan or system, as
specified, on account of sickness or accident disability, medical or
hospitalization expenses in connection with sickness or accident
disability, or death.
   This bill would, under the unemployment insurance law, provide
additional conformity with federal law by adopting specified
provisions of the Health Care and Education Reconciliation Act of
2010 relating to an exclusion from wages for amounts expended for
medical care.
   This bill would take effect immediately as a tax levy.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 17131.7 is added to the Revenue and Taxation
Code, to read:
   17131.7.  (a) Section 105(b) of the Internal Revenue Code,
relating to amounts expended for medical care, as amended by Section
1004(d)(1) of the Health Care and Education Reconciliation Act of
2010 (Public Law 111-152), shall apply, except as otherwise provided.

   (b) This section shall apply in the same manner and to the same
periods as the federal amendments referred to in subdivision (a)
apply for federal purposes, except as otherwise provided.
  SEC. 2.  Section 17201.1 is added to the Revenue and Taxation Code,
to read:
   17201.1.  (a) Section 162(l)(1) of the Internal Revenue Code,
relating to allowance of deduction, as amended by Section 1004(d)(2)
of the Health Care and Education Reconciliation Act of 2010 (Public
Law 111-152), shall apply, except as otherwise provided.
   (b) Section 162(l)(2)(B) of the Internal Revenue Code, relating to
other coverage, as amended by Section 1004(d)(3) of the Health Care
and Education Reconciliation Act of 2010 (Public Law 111-152), shall
apply, except as otherwise provided.
   (c) This section shall apply in the same manner and to the same
periods as the federal amendments referred to in subdivision (a) or
subdivision (b), respectively, apply for federal purposes, except as
otherwise provided.
  SEC. 3.  Section 23701i of the Revenue and Taxation Code is amended
to read:
   23701i.  (a) A voluntary employees' beneficiary association
described in Section 501(c)(9) of the Internal Revenue Code, as
amended by Section 1004(d)(4) of the Health Care and Education
Reconciliation Act of 2010 (Public Law 111-152).
   (b) The amendments made to this section by the act adding this
subdivision shall apply in the same manner and to the same periods as
the federal amendments referred to in subdivision (a) apply for
federal purposes.
  SEC. 4.  Section 938.4 is added to the Unemployment Insurance Code,
to read:
   938.4.  "Wages" does not include any payment made, or benefit
furnished to, or for the benefit of, an employee under Section 105(b)
of the Internal Revenue Code, relating to amounts expended for
medical care, as amended by Section 1004(d)(1) of the Health Care and
Education Reconciliation Act of 2010 (Public Law 111-152).
  SEC. 5.  This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.