California 2015-2016 Regular Session Status: In Committee

SB 935 — Life insurance: life settlements: favorable tax treatment.

Last action — April 13 set for first hearing canceled at the request of author.

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

This bill died with 2015-2016 Regular Session. It reached “In Committee” 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This bill is no longer active — its legislative session has ended, so there is no live prognosis.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 defines a "life settlement contract" as, among other things, a written agreement solicited, negotiated, or entered into in this state between a provider and an owner, establishing the terms under which compensation or anything of value will be paid, and that compensation or thing of value is less than the expected death benefit of the insurance policy or certificate. Existing law prohibits a person from entering into, brokering, or soliciting life settlements unless the person is licensed by the Insurance Commissioner. Life settlement licensees are required to, among other things, provide certain disclosures, file an annual statement with the Department of Insurance, and are prohibited from engaging in any false or misleading advertising, solicitation, or practice, as provided. A violation of these provisions is a misdemeanor. This bill would require a licensee that solicits, negotiates, or enters into a life or viatical settlement that is intended to qualify for special tax treatment under a specified provision of the federal Internal Revenue Code (IRC) as an amount paid to a person suffering from a chronic illness to file with the department a legal memorandum from outside tax counsel stating that the proceeds from that transaction would receive preferable tax treatment pursuant to that provision of the IRC.

Bill Text

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1 line(s) added, 1 removed.

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Action History

  1. April 13 set for first hearing canceled at the request of author.

  2. Set for hearing April 13.

  3. Referred to Com. on INS.

  4. From printer. May be acted upon on or after March 4.

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

Sponsors

  • Liu · Cosponsor
  • Roth · Primary

Sponsorship breakdown

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1 sponsors · 1 co-sponsors · 120 not signed on

Sponsors (1)

  • Roth

Co-sponsors (1)

  • Liu

Not signed on (120)

120 members have not signed on to this bill.

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"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

Subjects

taxation health-insurance
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Frequently asked questions

What does SB 935 do?
Existing law defines a "life settlement contract" as, among other things, a written agreement solicited, negotiated, or entered into in this state between a provider and an owner, establishing the terms under which compensation or anything of value will be paid, and that compensation or thing of value is less than the expected death benefit of the insurance policy or certificate. Existing law prohibits a person from entering into, brokering, or soliciting life settlements unless the person is licensed by the Insurance Commissioner. Life settlement licensees are required to, among other things, provide certain disclosures, file an annual statement with the Department of Insurance, and are prohibited from engaging in any false or misleading advertising, solicitation, or practice, as provided. A violation of these provisions is a misdemeanor. This bill would require a licensee that solicits, negotiates, or enters into a life or viatical settlement that is intended to qualify for special tax treatment under a specified provision of the federal Internal Revenue Code (IRC) as an amount paid to a person suffering from a chronic illness to file with the department a legal memorandum from outside tax counsel stating that the proceeds from that transaction would receive preferable tax treatment pursuant to that provision of the IRC.
Who sponsors SB 935?
SB 935 is sponsored by Liu and Roth.
What is the current status of SB 935?
This bill died with 2015-2016 Regular Session. It reached “In Committee” 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 SB 935?
Track SB 935 free on One Click Politics — get push/email alerts when it moves.

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