California 2017-2018 Regular Session Status: To Executive Bipartisan · 1 R · 1 D cosponsors

AB 1863 — Personal income tax: deduction: commercial cannabis activity.

Last action — Vetoed by Governor.

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

This bill died with 2017-2018 Regular Session. It reached “To Executive” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Summary

Existing law, the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) , among other things, consolidates the licensure and regulation of commercial medicinal and adult-use cannabis activities and authorizes persons to conduct specified commercial cannabis activities, as defined, in the state. The Personal Income Tax Law and the Corporation Tax Law allow various deductions in computing the income that is subject to the taxes imposed by those laws. The Personal Income Tax Law conforms as of a specified date to federal income tax laws with respect to itemized deductions, including business deductions and items not deductible, except as specifically provided. The Corporation Tax Law does not conform to those federal income tax provisions, but specifically provides for deductions for purposes of that law. The Personal Income Tax Law, by conformity to federal income tax laws, disallows a deduction or credit for business expenses of a trade or business whose activities consist of trafficking specified controlled substances, including marijuana. This bill, for each taxable year beginning on and after January 1, 2018, would specifically provide in the Personal Income Tax Law for nonconformity to that federal law disallowing a deduction or credit for business expenses of a trade or business whose activities consist of trafficking specified controlled substances, only for commercial cannabis activity, as defined under MAUCRSA, by a licensee under MAUCRSA, thus allowing deduction of business expenses for a cannabis trade or business under the Personal Income Tax Law, as provided. This bill would take effect immediately as a tax levy.

Bill Text

Action History

  1. Vetoed by Governor.

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

  3. In Assembly. Ordered to Engrossing and Enrolling.

  4. Read third time. Passed. Ordered to the Assembly. (Ayes 29. Noes 6. Page 5549.).

  5. Read second time. Ordered to third reading.

  6. From committee: Do pass. (Ayes 5. Noes 2.) (August 16).

  7. In committee: Referred to APPR. suspense file.

  8. From committee: Do pass and re-refer to Com. on APPR. (Ayes 6. Noes 0.) (August 8). Re-referred to Com. on APPR.

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

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

  11. Read third time. Passed. Ordered to the Senate. (Ayes 64. Noes 11. Page 5390.)

  12. Read second time. Ordered to third reading.

  13. From committee: Do pass. (Ayes 15. Noes 1.) (May 25).

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

  15. Re-referred to Com. on APPR.

  16. Read second time and amended.

  17. From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 9. Noes 1.) (April 30).

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

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

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

  21. From printer. May be heard in committee February 11.

  22. Read first time. To print.

Sponsors

  • Cooley · Cosponsor
  • Jones-Sawyer · Primary
  • Tom Lackey · Cosponsor
  • Wood · Cosponsor
  • Mia Bonta · Cosponsor

Sponsorship breakdown

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1 sponsors · 4 co-sponsors · 117 not signed on · 4 voted No

Sponsors (1)

  • Jones-Sawyer

Co-sponsors (4)

Not signed on (117)

117 members have not signed on to this bill.

Show all 117 →

"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

3rd Reading AB1863 Jones-Sawyer et al. By McGuire

Passed 29 Yea · 6 Nay · 5 Other
Party YeaNayPresentNot Voting
Unaffiliated 25505
Democratic 4100
Total 29605
% of votes cast 73%15%0%13%
How each member voted (40)
Member Party Vote
Anderson — Nay
Bates — Nay
Bradford — Yea
Hill — Yea
Hueso — Yea
Lara — Yea
Morrell — Nay
Nielsen — Nay
Pan — Yea
Glazer — Yea
Hertzberg — Yea
Allen — Yea
De León — Yea
Portantino — Yea
Beall — Yea
Delgado — Yea
Leyva — Yea
Monning — Yea
Moorlach — Yea
Roth — Yea
Vidak — Yea
Wieckowski — Yea
Atkins — Yea
Cannella — Yea
Mitchell — Not Voting
Fuller — Nay
Galgiani — Yea
Hernandez — Yea
Chang — Not Voting
Dodd — Yea
Skinner — Yea
Wilk — Yea
Beth Gaines — Not Voting
Bill Berryhill — Not Voting
Mark Stone — Not Voting
Jackson, Corey A. Democratic Yea
McGuire, Mike Democratic Yea
Nguyen, Stephanie Democratic Nay
Stern, Henry I. Democratic Yea
Wiener, Scott D. Democratic Yea

Official roll call →

Do pass

Passed 5 Yea · 2 Nay
Party YeaNayPresentNot Voting
Unaffiliated 4200
Democratic 1000
Total 5200
% of votes cast 71%29%0%0%
How each member voted (7)
Member Party Vote
Beall — Yea
Bradford — Yea
Nielsen — Nay
Portantino — Yea
Hill — Yea
Bates — Nay
Wiener, Scott D. Democratic Yea

Official roll call →

Placed on suspense file

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
Bates — Yea
Bradford — Yea
Nielsen — Yea
Portantino — Yea
Hill — Yea
Beall — Yea
Wiener, Scott D. Democratic Yea

Official roll call →

AB 1863 JONES-SAWYER Assembly Third Reading

Passed 64 Yea · 11 Nay · 3 Other
Party YeaNayPresentNot Voting
Unaffiliated 451002
Democratic 14001
Republican 5100
Total 641103
% of votes cast 82%14%0%4%
How each member voted (78)
Member Party Vote
Acosta — Yea
Bigelow — Nay
Bloom — Yea
Brough — Yea
Harper — Nay
Holden — Yea
Maienschein — Yea
Mathis — Not Voting
O'Donnell — Yea
Quirk — Yea
Steinorth — Yea
Voepel — Nay
Wood — Yea
Eggman — Yea
Chávez — Nay
Cunningham — Yea
Daly — Yea
Gloria — Yea
Jones-Sawyer — Yea
Chiu — Yea
Chu — Yea
Mullin — Yea
Thurmond — Yea
Frazier — Yea
Rubio — Yea
Friedman — Yea
Burke — Yea
Fong — Yea
Gray — Yea
Kamlager-Dove — Yea
Gonzalez Fletcher — Yea
Kiley — Not Voting
Levine — Yea
Low — Yea
Salas — Nay
Mayes — Yea
McCarty — Yea
Medina — Yea
Baker — Nay
Chau — Yea
Cooley — Yea
Cooper — Yea
Melendez — Nay
Nazarian — Yea
Obernolte — Yea
Rendon — Yea
Rodriguez — Yea
Santiago — Yea
Ting — Yea
Waldron — Nay
Weber — Yea
Cristina Garcia — Yea
Eduardo Garcia — Yea
Jim Patterson — Nay
Mark Stone — Yea
Travis Allen — Nay
Wendy Carrillo — Yea
Aguiar-Curry, Cecilia M. Democratic Yea
Arambula, Joaquin Democratic Yea
Berman, Marc Democratic Yea
Bonta, Mia Democratic Yea
Caballero, Anna M. Democratic Yea
Calderon, Lisa Democratic Yea
Cervantes, Sabrina Democratic Yea
Gipson, Mike A. Democratic Yea
Grayson, Timothy S. Democratic Yea
Irwin, Jacqui Democratic Yea
Kalra, Ash Democratic Yea
Limón, Monique Democratic Yea
Muratsuchi, Al Democratic Not Voting
Quirk-Silva, Sharon Democratic Yea
Reyes, Eloise Gómez Democratic Yea
Chen, Phillip Republican Yea
Choi, Steven S. Republican Nay
Dahle, Megan Republican Yea
Flora, Heath Republican Yea
Gallagher, James Republican Yea
Lackey, Tom Republican Yea

Official roll call →

Do pass.

Passed 15 Yea · 1 Nay · 1 Other
Party YeaNayPresentNot Voting
Unaffiliated 11101
Democratic 3000
Republican 1000
Total 15101
% of votes cast 88%6%0%6%
How each member voted (17)
Member Party Vote
Bloom — Yea
Brough — Not Voting
Nazarian — Yea
Eggman — Yea
Friedman — Yea
Gonzalez Fletcher — Yea
Quirk — Yea
Bigelow — Nay
Chau — Yea
Fong — Yea
Obernolte — Yea
Eduardo Garcia — Yea
Wendy Carrillo — Yea
Bonta, Mia Democratic Yea
Calderon, Lisa Democratic Yea
Reyes, Eloise Gómez Democratic Yea
Gallagher, James Republican Yea

Official roll call →

Subjects

taxation
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Frequently asked questions

What does AB 1863 do?
Existing law, the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) , among other things, consolidates the licensure and regulation of commercial medicinal and adult-use cannabis activities and authorizes persons to conduct specified commercial cannabis activities, as defined, in the state. The Personal Income Tax Law and the Corporation Tax Law allow various deductions in computing the income that is subject to the taxes imposed by those laws. The Personal Income Tax Law conforms as of a specified date to federal income tax laws with respect to itemized deductions, including business deductions and items not deductible, except as specifically provided. The Corporation Tax Law does not conform to those federal income tax provisions, but specifically provides for deductions for purposes of that law. The Personal Income Tax Law, by conformity to federal income tax laws, disallows a deduction or credit for business expenses of a trade or business whose activities consist of trafficking specified controlled substances, including marijuana. This bill, for each taxable year beginning on and after January 1, 2018, would specifically provide in the Personal Income Tax Law for nonconformity to that federal law disallowing a deduction or credit for business expenses of a trade or business whose activities consist of trafficking specified controlled substances, only for commercial cannabis activity, as defined under MAUCRSA, by a licensee under MAUCRSA, thus allowing deduction of business expenses for a cannabis trade or business under the Personal Income Tax Law, as provided. This bill would take effect immediately as a tax levy.
Who sponsors AB 1863?
AB 1863 is sponsored by Cooley, Jones-Sawyer, Lackey, Tom (Republican), Wood, and Bonta, Mia (Democratic).
What is the current status of AB 1863?
This bill died with 2017-2018 Regular Session. It reached “To Executive” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track AB 1863?
Track AB 1863 free on One Click Politics — get push/email alerts when it moves.

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