California 2019-2020 Regular Session Status: Passed Assembly

AB 1027 — Income taxes: California Competes tax credit: private ownership share agreement.

Last action — In committee: Held under submission.

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

This bill died with 2019-2020 Regular Session. It reached “Passed Assembly” 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This bill is no longer active — its legislative session has ended, so there is no live prognosis.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

The Personal Income Tax Law and the Corporation Tax Law allow a credit against the taxes imposed under those laws, for each taxable year beginning on and after January 1, 2014, and before January 1, 2030, in an amount provided in a written agreement between the Governor's Office of Business and Economic Development (GO-Biz) and the taxpayer, approved by the California Competes Tax Credit Committee, and based on specified factors, including the number of jobs the taxpayer will create or retain in the state and the amount of investment in the state by the taxpayer. Existing law requires GO-Biz, when determining whether to enter into a written agreement with a taxpayer, to consider specified factors, and also authorizes GO-Biz to consider, among other factors, the financial solvency of the taxpayer and its ability to finance its proposed expansion. Existing law provides for the allocation of credit amounts through the 2022–23 fiscal year and limits the aggregate amount of credit that may be allocated in a fiscal year to $180,000,000, and subjects the amount to specified reduction adjustments. This bill would authorize a taxpayer to offer the state a percentage of the taxpayer's business when applying for a California Competes Tax Credit, and would allow GO-Biz to consider the amount of equity being offered in determining the amount of credit allocated to the taxpayer. The bill would require the private equity share agreement to include specified provisions, including a provision that the state is not liable beyond the value of its ownership interest in the legal entity. The bill would also revise the factors that GO-Biz is required and authorized to consider when entering into a written agreement with a taxpayer, as provided, including the taxpayer's financial ability to retain its existing investments in the state. 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. In committee: Held under submission.

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

  3. From committee: Do pass and re-refer to Com. on APPR. (Ayes 6. Noes 0.) (August 14). Re-referred to Com. on APPR.

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

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

  6. Read third time. Passed. Ordered to the Senate. (Ayes 67. Noes 0. Page 1879.)

  7. Read second time. Ordered to third reading.

  8. From committee: Do pass. (Ayes 13. Noes 1.) (May 16).

  9. Joint Rule 62(a), file notice suspended. (Page 1760.)

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

  11. Joint Rule 62(a), file notice suspended. (Page 1609.)

  12. Re-referred to Com. on APPR.

  13. From committee chair, with author's amendments: Amend, and re-refer to Com. on APPR. Read second time and amended.

  14. From committee: Do pass and re-refer to Com. on APPR. (Ayes 10. Noes 0.) (May 6). Re-referred to Com. on APPR.

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

  16. Read second time and amended.

  17. From committee: Amend, and do pass as amended and re-refer to Com. on REV. & TAX. (Ayes 5. Noes 0.) (April 23).

  18. Re-referred to Com. on J., E.D., & E.

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

  20. Referred to Coms. on J., E.D., & E. and REV. & TAX.

  21. From printer. May be heard in committee March 24.

  22. Read first time. To print.

Sponsors

  • Burke · Primary

Sponsorship breakdown

Export CSV (upgrade) →

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

Sponsors (1)

  • Burke

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

Placed on suspense file

Passed 6 Yea · 0 Nay · 1 Other
Party YeaNayPresentNot Voting
Republican 1000
Unaffiliated 4001
Democratic 1000
Total 6001
% of votes cast 86%0%0%14%
How each member voted (7)
Member Party Vote
Wieckowski — Yea
Portantino — Yea
Hill — Yea
Bradford — Yea
Bates — Not Voting
Durazo, Maria Elena Democratic Yea
Jones, Brian W. Republican Yea

Official roll call →

AB 1027 Burke Assembly Third Reading

Passed 67 Yea · 0 Nay · 13 Other
Party YeaNayPresentNot Voting
Unaffiliated 40008
Democratic 24001
Republican 3004
Total 670013
% of votes cast 84%0%0%16%
How each member voted (80)
Member Party Vote
Salas — Yea
Brough — Yea
Mathis — Yea
Frazier — Yea
Smith — Yea
Cunningham — Yea
Gonzalez — Yea
Chau — Yea
Gloria — Yea
Bloom — Yea
Rodriguez — Yea
Santiago — Yea
Chiu — Yea
Gray — Yea
Holden — Yea
Daly — Yea
Eggman — Yea
Maienschein — Yea
Jones-Sawyer — Yea
Quirk — Yea
Mullin — Yea
Friedman — Yea
Ting — Yea
Kamlager-Dove — Yea
Levine — Yea
Melendez — Yea
McCarty — Yea
Low — Yea
Nazarian — Yea
Burke — Yea
Cooper — Yea
Wood — Yea
Medina — Yea
Rendon — Yea
Chu — Yea
O'Donnell — Yea
Weber — Yea
Waldron — Yea
Voepel — Not Voting
Kiley — Not Voting
Mayes — Not Voting
Obernolte — Not Voting
Bigelow — Not Voting
Cooley — Not Voting
Diep — Not Voting
Cristina Garcia — Yea
Eduardo Garcia — Not Voting
Mark Stone — Yea
Aguiar-Curry, Cecilia M. Democratic Yea
Arambula, Joaquin Democratic Yea
Bauer-Kahan, Rebecca Democratic Yea
Berman, Marc Democratic Yea
Boerner, Tasha Democratic Yea
Bonta, Mia Democratic Yea
Calderon, Lisa Democratic Yea
Carrillo, Juan Democratic Yea
Cervantes, Sabrina Democratic Yea
Fong, Mike Democratic Not Voting
Gabriel, Jesse 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 Yea
Petrie-Norris, Cottie Democratic Yea
Quirk-Silva, Sharon Democratic Yea
Ramos, James C. Democratic Yea
Reyes, Eloise Gómez Democratic Yea
Rivas, Robert Democratic Yea
Rivas, Robert Democratic Yea
Rubio, Blanca E. Democratic Yea
Wicks, Buffy Democratic Yea
Chen, Phillip Republican Yea
Choi, Steven S. Republican Not Voting
Dahle, Megan Republican Not Voting
Flora, Heath Republican Yea
Gallagher, James Republican Not Voting
Lackey, Tom Republican Yea
Patterson, Joe Republican Not Voting

Official roll call →

Do pass.

Passed 13 Yea · 1 Nay · 4 Other
Party YeaNayPresentNot Voting
Democratic 6001
Unaffiliated 7103
Total 13104
% of votes cast 72%6%0%22%
How each member voted (18)
Member Party Vote
Bloom — Yea
Maienschein — Yea
Eggman — Yea
Gonzalez — Yea
Quirk — Yea
Chau — Yea
Diep — Nay
Brough — Not Voting
Obernolte — Not Voting
Bigelow — Not Voting
Eduardo Garcia — Yea
Bonta, Mia Democratic Yea
Calderon, Lisa Democratic Yea
Carrillo, Juan Democratic Yea
Fong, Mike Democratic Not Voting
Gabriel, Jesse Democratic Yea
Petrie-Norris, Cottie Democratic Yea
Rivas, Robert Democratic Yea

Official roll call →

Subjects

taxation
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

What does AB 1027 do?
The Personal Income Tax Law and the Corporation Tax Law allow a credit against the taxes imposed under those laws, for each taxable year beginning on and after January 1, 2014, and before January 1, 2030, in an amount provided in a written agreement between the Governor's Office of Business and Economic Development (GO-Biz) and the taxpayer, approved by the California Competes Tax Credit Committee, and based on specified factors, including the number of jobs the taxpayer will create or retain in the state and the amount of investment in the state by the taxpayer. Existing law requires GO-Biz, when determining whether to enter into a written agreement with a taxpayer, to consider specified factors, and also authorizes GO-Biz to consider, among other factors, the financial solvency of the taxpayer and its ability to finance its proposed expansion. Existing law provides for the allocation of credit amounts through the 2022–23 fiscal year and limits the aggregate amount of credit that may be allocated in a fiscal year to $180,000,000, and subjects the amount to specified reduction adjustments. This bill would authorize a taxpayer to offer the state a percentage of the taxpayer's business when applying for a California Competes Tax Credit, and would allow GO-Biz to consider the amount of equity being offered in determining the amount of credit allocated to the taxpayer. The bill would require the private equity share agreement to include specified provisions, including a provision that the state is not liable beyond the value of its ownership interest in the legal entity. The bill would also revise the factors that GO-Biz is required and authorized to consider when entering into a written agreement with a taxpayer, as provided, including the taxpayer's financial ability to retain its existing investments in the state. 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 1027?
AB 1027 is sponsored by Burke.
What is the current status of AB 1027?
This bill died with 2019-2020 Regular Session. It reached “Passed Assembly” 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 1027?
Track AB 1027 free on One Click Politics — get push/email alerts when it moves.

Make your voice heard on AB 1027

Find the representatives who decide this bill and tell them where you stand — for yourself, or mobilize your whole list in one click with One Click Politics advocacy software.

Find my representatives → Run a campaign

Stay ahead of AB 1027

Last checked for changes 2 months ago · updated continuously

One Click Politics tracks every bill in Congress and all 50 states.

Track this bill →