California 2013-2014 Regular Session Status: Enacted

AB 32 — Insurance taxes: income taxes: credits: community development financial institution investments.

Last action — Chaptered by Secretary of State - Chapter 608, Statutes of 2013.

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  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed Assembly
  4. ✓
    Passed Senate
  5. ✓
    To Executive
  6. 6
    Enacted

This bill has been enacted into law. Introduced December 03, 2012. Enacted.

Prognosis

Likely to advance 70% · moderate confidence

Where this bill stands today.

Odds of enactment

High

How often bills like it became law.

  • Enacted

    Current position in the legislative process.

  • 1 sponsor

    1 primary, 0 co-sponsors signed on.

  • Cleared a recorded vote

    Passed 8 recorded votes so far.

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

Summary

Existing laws governing the taxation of insurers, the Personal Income Tax Law, and the Corporation Tax Law, authorize, until January 1, 2017, a credit in an amount equal to 20% of a qualified investment, as defined, made into a community development financial institution, as defined, but not to exceed, in the aggregate amount under all those laws, $10,000,000 per year. Existing law provides that a credit shall not be allowed under those laws unless the California Organized Investment Network certifies that the investment made by the taxpayer is a qualified investment, as defined. Existing law requires a community development financial institution to apply to the California Organized Investment Network on behalf of the taxpayer for certification of the amount of the investment and the credit amount allocated to the taxpayer. The bill would increase the $10,000,000 limitation on the aggregate amount of qualified investments to $50,000,000. This bill would require a community development financial institution to provide in the application a detailed description of the intended use of the investment funds, as described, and to provide specified information about the taxpayer. This bill would require the California Organized Investment Network, when accepting and evaluating applications for certification from any community development financial institution on behalf of the taxpayer and issuing certificates, to grant highest priority to those applications where the intended use of the investments has the greatest aggregate benefit for low-to-moderate income areas or households or rural areas or households. This bill would require the Insurance Commissioner to establish tax credit issuance cycles throughout the year as necessary in order to issue tax credit certificates to those applications granted the highest priority. This bill would prohibit the total amount of investments certified by the California Organized Investment Network in any calendar year to any one community development financial institution from exceeding 30% of the annual aggregate amount of qualified investments, except as specified. This bill would require that each year 10% of the annual aggregate amount of qualified investments be reserved for investment amounts of less than or equal to $200,000, as specified. This bill would also allow the California Organized Investment Network to certify investments for the credit until January 1, 2017. This bill would require, on or before June 30, 2016, the Legislative Analyst's Office to submit a report to the Legislature on the effects of the tax credits allowed, with a focus on employment in low-to-moderate income and rural areas, and on the benefits of these tax credits to low-to-moderate income and rural persons. Existing law authorizes the Insurance Commissioner to issue regulations to implement the credit. This bill would instead authorize the Insurance Commissioner to adopt, amend, or repeal regulations to implement the credit, and would deem the initial adoption of the regulations to be emergency regulations, as specified. Existing law authorizes the California Organized Investment Network, in allocating qualified investment credits, when certain conditions are met, to prioritize applications for those credits, as specified. This bill would revise those conditions. This bill would include a change in state statute that would result in a taxpayer paying a higher tax within the meaning of Section 3 of Article XIIIA of the California Constitution, and thus would require for passage the approval of 23 of the membership of each house of the Legislature. This bill would take effect immediately as a tax levy.

Bill Text

Action History

  1. Chaptered by Secretary of State - Chapter 608, Statutes of 2013.

  2. Approved by the Governor.

  3. Enrolled and presented to the Governor at 3 p.m.

  4. Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 77. Noes 1. Page 3069.).

  5. Assembly Rule 63 suspended. (Ayes 53. Noes 25. Page 3064.)

  6. Assembly Rule 77 suspended. (Ayes 53. Noes 25. Page 3064.)

  7. In Assembly. Concurrence in Senate amendments pending. May be considered on or after September 11 pursuant to Assembly Rule 77.

  8. Read third time. Passed. Ordered to the Assembly. (Ayes 39. Noes 0. Page 2232.).

  9. Read second time and amended. Ordered to third reading.

  10. From committee: Do pass as amended. (Ayes 7. Noes 0.) (August 30).

  11. In committee: Placed on APPR. suspense file.

  12. Read second time and amended. Re-referred to Com. on APPR.

  13. From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 7. Noes 0.) (August 14).

  14. Referred to Com. on GOV. & F.

  15. In Senate. Read first time. To Com. on RLS. for assignment.

  16. Read third time. Passed. Ordered to the Senate. (Ayes 77. Noes 1. Page 1658.)

  17. Read second time. Ordered to third reading.

  18. From committee: Do pass. (Ayes 16. Noes 0.) (May 24).

  19. In committee: Set, first hearing. Referred to APPR. suspense file.

  20. From committee: Do pass and re-refer to Com. on APPR. (Ayes 9. Noes 0.) (May 13). Re-referred to Com. on APPR.

  21. Re-referred to Com. on REV. & TAX.

  22. From committee chair, with author's amendments: Amend, and re-refer to Com. on REV. & TAX. Read second time and amended.

  23. In committee: Set, first hearing. Referred to REV. & TAX. suspense file.

  24. Re-referred to Com. on REV. & TAX.

  25. From committee chair, with author's amendments: Amend, and re-refer to Com. on REV. & TAX. Read second time and amended.

  26. Referred to Com. on REV. & TAX.

  27. From printer. May be heard in committee January 3.

  28. Read first time. To print.

Sponsors

Sponsorship breakdown

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1 sponsors · 0 co-sponsors · 121 not signed on

Sponsors (1)

Co-sponsors (0)

None.

Not signed on (121)

121 members have not signed on to this bill.

Show all 121 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

AB 32 PÉREZ, J. Concurrence in Senate Amendments

Passed 77 Yea · 1 Nay
Party YeaNayPresentNot Voting
Unaffiliated 70100
Democratic 4000
Republican 3000
Total 77100
% of votes cast 99%1%0%0%
How each member voted (78)
Member Party Vote
Achadjian — Yea
Alejo — Yea
Bloom — Yea
Bradford — Yea
Brown — Yea
Buchanan — Yea
Jones-Sawyer — Yea
Linder — Yea
Maienschein — Yea
Mansoor — Yea
Pan — Yea
Quirk — Yea
Wagner — Yea
Weber — Yea
Williams — Yea
Gorell — Yea
Nazarian — Yea
Daly — Yea
Campos — Yea
Frazier — Yea
Gomez — Yea
Chau — Yea
Allen — Yea
Chesbro — Yea
Bonilla — Yea
Hagman — Yea
Hall — Yea
Harkey — Yea
Holden — Yea
Gray — Yea
Levine — Yea
Mitchell — Yea
Logue — Yea
Bocanegra — Yea
John A. Pérez — Yea
Salas — Yea
Medina — Yea
Lowenthal — Yea
Melendez — Yea
Garcia — Yea
Atkins — Yea
Fong — Yea
Morrell — Yea
Ammiano — Yea
Bigelow — Yea
Chávez — Yea
Conway — Yea
Cooley — Yea
Dickinson — Yea
Donnelly — Nay
Mullin — Yea
Nestande — Yea
Olsen — Yea
Perea — Yea
Rendon — Yea
Skinner — Yea
Ting — Yea
Waldron — Yea
Wieckowski — Yea
Wilk — Yea
Eggman — Yea
Fox — Yea
Gatto — Yea
Yamada — Yea
Gordon — Yea
Beth Gaines — Yea
Jim Patterson — Yea
Lorena Gonzalez — Yea
Mark Stone — Yea
Roger Hernández — Yea
V. Manuel Pérez — Yea
Bonta, Mia Democratic Yea
Calderon, Lisa Democratic Yea
Muratsuchi, Al Democratic Yea
Quirk-Silva, Sharon Democratic Yea
Dahle, Megan Republican Yea
Grove, Shannon Republican Yea
Jones, Brian W. Republican Yea

Official roll call →

3rd Reading AB32 John A. Pérez By DeSaulnier

Passed 39 Yea · 0 Nay
Party YeaNayPresentNot Voting
Unaffiliated 36000
Democratic 3000
Total 39000
% of votes cast 100%0%0%0%
How each member voted (39)
Member Party Vote
Anderson — Yea
Block — Yea
Hernandez — Yea
Hill — Yea
Lara — Yea
Leno — Yea
Lieu — Yea
Liu — Yea
Monning — Yea
Emmerson — Yea
Correa — Yea
DeSaulnier — Yea
Beall — Yea
Wright — Yea
Wyland — Yea
De León — Yea
Cannella — Yea
Evans — Yea
Corbett — Yea
Fuller — Yea
Hancock — Yea
Hueso — Yea
Huff — Yea
Knight — Yea
Nielsen — Yea
Pavley — Yea
Roth — Yea
Steinberg — Yea
Torres — Yea
Vidak — Yea
Walters — Yea
Wolk — Yea
Galgiani — Yea
Yee — Yea
Beth Gaines — Yea
Bill Berryhill — Yea
Calderon, Lisa Democratic Yea
Jackson, Corey A. Democratic Yea
Padilla, Stephen C. Democratic Yea

Official roll call →

Do pass as amended.

Passed 7 Yea · 0 Nay
Party YeaNayPresentNot Voting
Unaffiliated 6000
Democratic 1000
Total 7000
% of votes cast 100%0%0%0%
How each member voted (7)
Member Party Vote
Hill — Yea
Lara — Yea
Steinberg — Yea
De León — Yea
Walters — Yea
Beth Gaines — Yea
Padilla, Stephen C. Democratic Yea

Official roll call →

AB 32 PÉREZ, J. Assembly Third Reading

Passed 77 Yea · 1 Nay · 1 Other
Party YeaNayPresentNot Voting
Unaffiliated 66101
Democratic 7000
Republican 4000
Total 77101
% of votes cast 97%1%0%1%
How each member voted (79)
Member Party Vote
Achadjian — Yea
Ammiano — Yea
Bigelow — Yea
Bloom — Yea
Blumenfield — Yea
Bradford — Yea
Brown — Yea
Buchanan — Yea
Linder — Yea
Mansoor — Yea
Medina — Yea
Rendon — Yea
Wagner — Yea
Wieckowski — Yea
Williams — Yea
Frazier — Yea
Stone — Yea
Gordon — Yea
Campos — Yea
Hagman — Yea
Chau — Yea
Bonilla — Yea
Logue — Yea
Morrell — Yea
Mullin — Yea
Gray — Yea
Nazarian — Yea
Alejo — Yea
Chávez — Yea
Conway — Yea
Cooley — Yea
Daly — Yea
Dickinson — Yea
Eggman — Yea
Olsen — Yea
Quirk — Yea
Skinner — Yea
Ting — Yea
Weber — Yea
Wilk — Yea
Mitchell — Yea
Bocanegra — Yea
John A. Pérez — Yea
Salas — Yea
Lowenthal — Yea
Atkins — Yea
Gatto — Yea
Gonzalez — Yea
Hall — Yea
Chesbro — Yea
Harkey — Yea
Donnelly — Nay
Holden — Not Voting
Jones-Sawyer — Yea
Levine — Yea
Maienschein — Yea
Melendez — Yea
Nestande — Yea
Pan — Yea
Perea — Yea
Waldron — Yea
Fox — Yea
Yamada — Yea
Gomez — Yea
Gorell — Yea
Beth Gaines — Yea
Roger Hernández — Yea
V. Manuel Pérez — Yea
Allen, Benjamin Democratic Yea
Bonta, Mia Democratic Yea
Calderon, Lisa Democratic Yea
Fong, Mike Democratic Yea
Garcia, Robert Democratic Yea
Muratsuchi, Al Democratic Yea
Quirk-Silva, Sharon Democratic Yea
Dahle, Megan Republican Yea
Grove, Shannon Republican Yea
Jones, Brian W. Republican Yea
Patterson, Joe Republican Yea

Official roll call →

Do pass.

Passed 16 Yea · 0 Nay · 1 Other
Party YeaNayPresentNot Voting
Unaffiliated 15001
Democratic 1000
Total 16001
% of votes cast 94%0%0%6%
How each member voted (17)
Member Party Vote
Ammiano — Yea
Bradford — Yea
Linder — Yea
Quirk — Yea
Campos — Yea
Gomez — Yea
Bocanegra — Yea
Hall — Yea
Harkey — Yea
Bigelow — Yea
Donnelly — Not Voting
Eggman — Yea
Pan — Yea
Wagner — Yea
Weber — Yea
Gatto — Yea
Calderon, Lisa Democratic Yea

Official roll call →

Subjects

taxation housing
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Frequently asked questions

What does AB 32 do?
Existing laws governing the taxation of insurers, the Personal Income Tax Law, and the Corporation Tax Law, authorize, until January 1, 2017, a credit in an amount equal to 20% of a qualified investment, as defined, made into a community development financial institution, as defined, but not to exceed, in the aggregate amount under all those laws, $10,000,000 per year. Existing law provides that a credit shall not be allowed under those laws unless the California Organized Investment Network certifies that the investment made by the taxpayer is a qualified investment, as defined. Existing law requires a community development financial institution to apply to the California Organized Investment Network on behalf of the taxpayer for certification of the amount of the investment and the credit amount allocated to the taxpayer. The bill would increase the $10,000,000 limitation on the aggregate amount of qualified investments to $50,000,000. This bill would require a community development financial institution to provide in the application a detailed description of the intended use of the investment funds, as described, and to provide specified information about the taxpayer. This bill would require the California Organized Investment Network, when accepting and evaluating applications for certification from any community development financial institution on behalf of the taxpayer and issuing certificates, to grant highest priority to those applications where the intended use of the investments has the greatest aggregate benefit for low-to-moderate income areas or households or rural areas or households. This bill would require the Insurance Commissioner to establish tax credit issuance cycles throughout the year as necessary in order to issue tax credit certificates to those applications granted the highest priority. This bill would prohibit the total amount of investments certified by the California Organized Investment Network in any calendar year to any one community development financial institution from exceeding 30% of the annual aggregate amount of qualified investments, except as specified. This bill would require that each year 10% of the annual aggregate amount of qualified investments be reserved for investment amounts of less than or equal to $200,000, as specified. This bill would also allow the California Organized Investment Network to certify investments for the credit until January 1, 2017. This bill would require, on or before June 30, 2016, the Legislative Analyst's Office to submit a report to the Legislature on the effects of the tax credits allowed, with a focus on employment in low-to-moderate income and rural areas, and on the benefits of these tax credits to low-to-moderate income and rural persons. Existing law authorizes the Insurance Commissioner to issue regulations to implement the credit. This bill would instead authorize the Insurance Commissioner to adopt, amend, or repeal regulations to implement the credit, and would deem the initial adoption of the regulations to be emergency regulations, as specified. Existing law authorizes the California Organized Investment Network, in allocating qualified investment credits, when certain conditions are met, to prioritize applications for those credits, as specified. This bill would revise those conditions. This bill would include a change in state statute that would result in a taxpayer paying a higher tax within the meaning of Section 3 of Article XIIIA of the California Constitution, and thus would require for passage the approval of 23 of the membership of each house of the Legislature. This bill would take effect immediately as a tax levy.
Who sponsors AB 32?
AB 32 is sponsored by V. Manuel Pérez.
What is the current status of AB 32?
This bill has been enacted into law. Introduced December 03, 2012. Enacted.
Where can I track AB 32?
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