Bill Text: CA AB2490 | 2015-2016 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Corporation Tax Law: exemption: regulated investment company.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2016-11-30 - From committee without further action. [AB2490 Detail]

Download: California-2015-AB2490-Amended.html

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BILL NUMBER: AB 2490	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 17, 2016

INTRODUCED BY   Assembly Member Gatto

                        FEBRUARY 19, 2016

    An act relating to pension system investments. 
 An act to amend Section 19522 of the Revenue and Taxation Code,
relating to taxation. 


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2490, as amended, Gatto.  Pension system investments.
  Franchise Tax Board: federal tax law changes: report.
 
   Existing law requires the Franchise Tax Board to submit to the
Legislature, and to make available to the public, on or before
January 10 of each year, a report on all of the changes to the
Internal Revenue Code enacted into law in the prior year, as
provided.  
   This bill would instead require that report to be submitted and
made available on or before January 31 of each year. The bill would
make other nonsubstantive changes.  
   The California Constitution grants the retirement board of a
public pension or retirement system plenary authority and fiduciary
responsibility for the investment of moneys and administration of the
system. The constitution authorizes the Legislature to prohibit
certain investments when it is in the public interest to do so and
the prohibition satisfies standards of fiduciary care and loyalty.
Existing law requires the Board of Administration of Public Employees'
Retirement System to provide an annual report to the Governor and
the Legislature regarding its financial statements and investments
for the fiscal year and a quarterly review of system assets to the
Legislature.  
   This bill would state the intent of the Legislature to enact
legislation that would require equity firms that contract for
investment services with the Board of Administration of the Public
Employees' Retirement System and other pension systems to provide a
clear accounting of clawbacks owed to the systems and to require the
pension systems to track their clawbacks. 
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 19522 of the   Revenue
and Taxation Code   is amended to read: 
   19522.  (a) (1) (A) On or before  the 10th  
January 31  of  January  each year, the
Franchise Tax Board shall submit to the Legislature a report on all
changes to the Internal Revenue Code enacted into law in the prior
year. To the extent possible, the report shall contain an estimate of
the revenue effect of conforming California law to each of those
changes.
   (B) In the event that changes to the Internal Revenue Code are
enacted after September 15 of any year, the report described in
subparagraph (A) shall be submitted to the Legislature within 120
days after signature by the President of the United States, rather
than  the 10th of January.   January 31. 
   (2) The report required by this section shall be made available to
the public.
   (3) It is the intent of the Legislature that the policy committee
of each house of the Legislature hold at least one public hearing on
the report required by this section.
   (b) For any introduced bill  which   that
 proposes changes in any of the dates in Section 17024.5, the
Franchise Tax Board shall prepare a complete analysis of the bill
 which   that  describes all changes to
state law  which   that  will automatically
occur by reference to federal law as of the changed date. The
Franchise Tax Board shall immediately update and supplement that
analysis upon any amendment to the bill. That analysis shall be made
available to the public and shall be submitted to the Legislature for
publication in the daily journal of each house of the Legislature.
The digest of the Legislative Counsel shall indicate that an analysis
of the bill shall be prepared by the Franchise Tax Board and printed
in the daily journal of each house of the Legislature. 
  SECTION 1.    It is the intent of the Legislature
to enact legislation that would require the equity firms that
contract with the Board of Administration of the Public Employees'
Retirement System and other pension systems for the purpose of
providing investment services to provide a clear accounting of
clawbacks owed to the systems and to require the pension systems to
track their clawbacks.