California 2019-2020 Regular Session Status: Enacted

SB 790 — Income taxes: partnerships: audit adjustments: elections.

Last action — Chaptered by Secretary of State. Chapter 332, Statutes of 2019.

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

This bill has been enacted into law. Introduced March 21, 2019. 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 6 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 law requires a partnership, if any item required to be shown on a federal partnership return is changed or corrected by the Commissioner of Internal Revenue or other officer of the United States or other competent authority, and the partnership is issued an adjustment under federal income tax law or made a federal election for alternative to payment with the Internal Revenue Service as part of a partnership level audit, to report each change or correction to the Franchise Tax Board for the reviewed year within 6 months after the date of each final federal determination, and requires the report of adjustments to be sufficiently detailed to allow computation of the California tax changes resulting from the federal adjustment. Under existing law, if the federal changes or corrections result in an increase of state income taxes payable, a tax is imposed on the partnership in lieu of taxes owed by direct and indirect partners, as specified. Under existing law, generally any election made by a partnership for federal income tax audit purposes is required to be applicable for purposes of the Personal Income Tax Law, the Corporation Tax Law, and the administrative provisions for those laws, except a partnership may file a request, in the form and manner specified by the Franchise Tax Board, to make an election different from their federal election, and the Franchise Tax Board is required to grant such request, provided that the partnership is able to establish to the satisfaction of the Franchise Tax Board that the Franchise Tax Board's ability to collect any state income or franchise taxes would not be impeded, and the partnership properly computes the amount of in-lieu tax due or properly files an amended California Nonresident Group Return for all nonresident direct partners and pays the additional amount of any tax due. This bill would clarify the circumstances in which the Franchise Tax Board would be required to grant a partnership's request to make an election different from their federal election as follows: (1) in the case where an audited partnership or tiered partnership makes a federal election for alternative payment, which requires adjustments to be taken into account by the partners, provided that the partnership properly computes the amount of the in-lieu tax due and (2) in the case where an audited partnership or tiered partnership pays the tax at the federal level, provided the partnership is able to demonstrate to the Franchise Tax Board that the Franchise Tax Board's ability to collect any state income or franchise taxes would not be impeded and the partnership properly follows specified reporting provisions.

Bill Text

Action History

  1. Chaptered by Secretary of State. Chapter 332, Statutes of 2019.

  2. Approved by the Governor.

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

  4. Assembly amendments concurred in. (Ayes 37. Noes 0. Page 2328.) Ordered to engrossing and enrolling.

  5. Ordered to special consent calendar.

  6. In Senate. Concurrence in Assembly amendments pending.

  7. Read third time. Passed. (Ayes 75. Noes 0. Page 2813.) Ordered to the Senate.

  8. Read second time. Ordered to third reading.

  9. From committee: Do pass. (Ayes 18. Noes 0.) (August 14).

  10. From committee: Do pass and re-refer to Com. on APPR. with recommendation: To consent calendar. (Ayes 10. Noes 0.) (July 8). Re-referred to Com. on APPR.

  11. From committee with author's amendments. Read second time and amended. Re-referred to Com. on REV. & TAX.

  12. June 17 set for first hearing canceled at the request of author.

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

  14. In Assembly. Read first time. Held at Desk.

  15. Read third time. Passed. (Ayes 38. Noes 0. Page 1005.) Ordered to the Assembly.

  16. Read second time. Ordered to consent calendar.

  17. From committee: Be ordered to second reading pursuant to Senate Rule 28.8 and ordered to consent calendar.

  18. Set for hearing May 6.

  19. From committee: Do pass and re-refer to Com. on APPR. with recommendation: To consent calendar. (Ayes 7. Noes 0. Page 847.) (April 24). Re-referred to Com. on APPR.

  20. Set for hearing April 24.

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

  22. From printer. May be acted upon on or after April 21.

  23. Introduced. Read first time. To Com. on RLS. for assignment. To print.

Sponsors

  • Committee on Governance and Finance · Primary

Sponsorship breakdown

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

Sponsors (1)

  • Committee on Governance and Finance

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

Special Consent SB790 GOV. & F.

Passed 37 Yea · 0 Nay · 3 Other
Party YeaNayPresentNot Voting
Unaffiliated 26001
Democratic 8002
Republican 3000
Total 37003
% of votes cast 93%0%0%8%
How each member voted (40)
Member Party Vote
Rubio — Yea
Monning — Yea
Wieckowski — Yea
Mitchell — Yea
Bradford — Yea
Wilk — Yea
Beall — Yea
Atkins — Yea
Hill — Yea
Roth — Yea
Morrell — Yea
Hueso — Yea
Dodd — Yea
Moorlach — Yea
Skinner — Yea
Allen — Yea
Borgeas — Yea
Galgiani — Yea
Hertzberg — Yea
Portantino — Yea
Bates — Yea
Glazer — Yea
Nielsen — Yea
Chang — Yea
Pan — Yea
Leyva — Not Voting
Mark Stone — Yea
Archuleta, Bob Democratic Yea
Caballero, Anna M. Democratic Yea
Durazo, Maria Elena Democratic Yea
Gonzalez, Lena A. Democratic Yea
Hurtado, Melissa Democratic Yea
Jackson, Corey A. Democratic Not Voting
McGuire, Mike Democratic Yea
Stern, Henry I. Democratic Not Voting
Umberg, Thomas J. Democratic Yea
Wiener, Scott D. Democratic Yea
Dahle, Megan Republican Yea
Grove, Shannon Republican Yea
Jones, Brian W. Republican Yea

Official roll call →

SB 790 GOV.& F. Senate Third Reading By BURKE

Passed 75 Yea · 0 Nay · 4 Other
Party YeaNayPresentNot Voting
Unaffiliated 48004
Democratic 22000
Republican 5000
Total 75004
% of votes cast 95%0%0%5%
How each member voted (79)
Member Party Vote
Fong — Yea
Brough — Yea
Kiley — Yea
Mayes — Yea
Salas — Yea
Mathis — Yea
Bigelow — Yea
Cooley — Yea
Smith — Yea
Cunningham — Yea
Gonzalez — Yea
Diep — Yea
Chau — Yea
Gloria — Yea
Bloom — Yea
Rodriguez — Yea
Santiago — Yea
Obernolte — Yea
Voepel — Yea
Chiu — 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
Nazarian — Yea
Burke — Yea
Cooper — Yea
Wood — Yea
Medina — Yea
Rendon — Yea
Chu — Yea
O'Donnell — Yea
Waldron — Yea
Low — Not Voting
Gray — Not Voting
Weber — Not Voting
Frazier — Not Voting
Cristina Garcia — Yea
Eduardo Garcia — Yea
Jim Patterson — Yea
Luz Rivas — Yea
Mark Stone — Yea
Wendy Carrillo — 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
Cervantes, Sabrina Democratic Yea
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
Rubio, Blanca E. Democratic Yea
Wicks, Buffy Democratic Yea
Chen, Phillip Republican Yea
Choi, Steven S. Republican Yea
Flora, Heath Republican Yea
Gallagher, James Republican Yea
Lackey, Tom Republican Yea

Official roll call →

Do pass.

Passed 18 Yea · 0 Nay
Party YeaNayPresentNot Voting
Democratic 5000
Unaffiliated 13000
Total 18000
% of votes cast 100%0%0%0%
How each member voted (18)
Member Party Vote
Bloom — Yea
Fong — Yea
Brough — Yea
Obernolte — Yea
Maienschein — Yea
Bigelow — Yea
Quirk — Yea
Eggman — Yea
Gonzalez — Yea
Diep — Yea
Chau — Yea
Eduardo Garcia — Yea
Wendy Carrillo — Yea
Bonta, Mia Democratic Yea
Calderon, Lisa Democratic Yea
Gabriel, Jesse Democratic Yea
Petrie-Norris, Cottie Democratic Yea
Rivas, Robert Democratic Yea

Official roll call →

Do pass and be re-referred to the Committee on [Appropriations] with recommendation: To Consent Calendar

Passed 10 Yea · 0 Nay · 1 Other
Party YeaNayPresentNot Voting
Unaffiliated 9001
Democratic 1000
Total 10001
% of votes cast 91%0%0%9%
How each member voted (11)
Member Party Vote
Burke — Yea
Mullin — Yea
Brough — Yea
Mayes — Yea
Gray — Yea
Ting — Yea
Chu — Yea
McCarty — Yea
Quirk — Yea
Melendez — Not Voting
Petrie-Norris, Cottie Democratic Yea

Official roll call →

Consent Calendar SB790 GOV. & F.

Passed 38 Yea · 0 Nay
Party YeaNayPresentNot Voting
Unaffiliated 27000
Democratic 9000
Republican 2000
Total 38000
% of votes cast 100%0%0%0%
How each member voted (38)
Member Party Vote
Rubio — Yea
Monning — Yea
Wieckowski — Yea
Mitchell — Yea
Bradford — Yea
Wilk — Yea
Beall — Yea
Atkins — Yea
Hill — Yea
Roth — Yea
Morrell — Yea
Hueso — Yea
Leyva — Yea
Dodd — Yea
Moorlach — Yea
Skinner — Yea
Allen — Yea
Borgeas — Yea
Galgiani — Yea
Hertzberg — Yea
Portantino — Yea
Bates — Yea
Glazer — Yea
Nielsen — Yea
Chang — Yea
Pan — Yea
Mark Stone — Yea
Archuleta, Bob Democratic Yea
Caballero, Anna M. Democratic Yea
Durazo, Maria Elena Democratic Yea
Hurtado, Melissa Democratic Yea
Jackson, Corey A. Democratic Yea
McGuire, Mike Democratic Yea
Stern, Henry I. Democratic Yea
Umberg, Thomas J. Democratic Yea
Wiener, Scott D. Democratic Yea
Grove, Shannon Republican Yea
Jones, Brian W. Republican Yea

Official roll call →

Subjects

taxation
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Frequently asked questions

What does SB 790 do?
Existing law requires a partnership, if any item required to be shown on a federal partnership return is changed or corrected by the Commissioner of Internal Revenue or other officer of the United States or other competent authority, and the partnership is issued an adjustment under federal income tax law or made a federal election for alternative to payment with the Internal Revenue Service as part of a partnership level audit, to report each change or correction to the Franchise Tax Board for the reviewed year within 6 months after the date of each final federal determination, and requires the report of adjustments to be sufficiently detailed to allow computation of the California tax changes resulting from the federal adjustment. Under existing law, if the federal changes or corrections result in an increase of state income taxes payable, a tax is imposed on the partnership in lieu of taxes owed by direct and indirect partners, as specified. Under existing law, generally any election made by a partnership for federal income tax audit purposes is required to be applicable for purposes of the Personal Income Tax Law, the Corporation Tax Law, and the administrative provisions for those laws, except a partnership may file a request, in the form and manner specified by the Franchise Tax Board, to make an election different from their federal election, and the Franchise Tax Board is required to grant such request, provided that the partnership is able to establish to the satisfaction of the Franchise Tax Board that the Franchise Tax Board's ability to collect any state income or franchise taxes would not be impeded, and the partnership properly computes the amount of in-lieu tax due or properly files an amended California Nonresident Group Return for all nonresident direct partners and pays the additional amount of any tax due. This bill would clarify the circumstances in which the Franchise Tax Board would be required to grant a partnership's request to make an election different from their federal election as follows: (1) in the case where an audited partnership or tiered partnership makes a federal election for alternative payment, which requires adjustments to be taken into account by the partners, provided that the partnership properly computes the amount of the in-lieu tax due and (2) in the case where an audited partnership or tiered partnership pays the tax at the federal level, provided the partnership is able to demonstrate to the Franchise Tax Board that the Franchise Tax Board's ability to collect any state income or franchise taxes would not be impeded and the partnership properly follows specified reporting provisions.
Who sponsors SB 790?
SB 790 is sponsored by Committee on Governance and Finance.
What is the current status of SB 790?
This bill has been enacted into law. Introduced March 21, 2019. Enacted.
Where can I track SB 790?
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