Bill Text: CA SB439 | 2013-2014 | Regular Session | Amended

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Bill Title: Personal income taxes: cancellation of indebtedness: mortgage debt forgiveness.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Engrossed - Dead) 2014-04-24 - Re-referred to Com. on RLS. pursuant to Assembly Rule 96. [SB439 Detail]

Download: California-2013-SB439-Amended.html

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BILL NUMBER: SB 439	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 21, 2014
	AMENDED IN ASSEMBLY  AUGUST 5, 2013
	AMENDED IN ASSEMBLY  JUNE 27, 2013
	AMENDED IN SENATE  APRIL 1, 2013

INTRODUCED BY    Senators   Steinberg
    and Leno   Senator
  Evans 

                        FEBRUARY 21, 2013

   An act to amend  Sections 2220.05, 2242, and 2264 of the
Business and Professions Code, and to amend Section 11362.765 of the
Health and Safety Code, relating to medical marijuana  
Section 17144.5 of the Revenue and Taxation Code, relating to
taxation, and making an appropriation therefor  .


	LEGISLATIVE COUNSEL'S DIGEST


   SB 439, as amended,  Steinberg   Evans 
.  Medical marijuana.   Personal income taxes:
cancellation of indebtedness: mortgage debt forgiveness.  
   The Personal Income Tax Law provides for modified conformity to
specified provisions of federal income tax law relating to the
exclusion of the discharge of qualified principal residence
indebtedness, as defined, from an individual's income if that debt is
discharged after January 1, 2007, and before January 1, 2013, as
provided. The federal American Taxpayer Relief Act of 2012 extended
the operation of those provisions to qualified principal residence
indebtedness that is discharged before January 1, 2014.  
   This bill would conform to the federal extension and make
legislative findings and declarations regarding the public purpose
served by the bill. The bill would also make a continuous
appropriation from the General Fund to the Franchise Tax Board in
those amounts necessary to make payments to taxpayers who have
included in income and paid tax on qualified principal residence
indebtedness that was discharged on and after January 1, 2013, and
before January 1, 2014.  
   The Medical Practice Act provides for the regulation and licensing
of physicians and surgeons by the Medical Board of California.
Existing law requires the board to prioritize its investigative and
prosecutorial resources to ensure that physicians and surgeons
representing the greatest threat of harm are identified and
disciplined expeditiously, and identifies the types of cases that are
to be given priority, including cases of repeated acts of
excessively prescribing, furnishing, or administering controlled
substances without a good faith prior examination of the patient and
medical reason therefor. Existing law makes it unprofessional conduct
for a physician and surgeon to prescribe, dispense, or furnish
dangerous drugs without an appropriate prior examination and medical
indication. Existing law also makes it unprofessional conduct to
employ, aid, or abet an unlicensed person in the practice of
medicine. Existing law generally makes any person who violates these
provisions guilty of a misdemeanor.  
   This bill would specify that repeated acts of excessively
recommending marijuana to a patient for medical purposes constitutes
the type of case that the board should prioritize. This bill would
add that recommending marijuana to a patient for medical purposes
without an appropriate prior examination and medical indication
constitutes unprofessional conduct. This bill would also specify that
employing, aiding, or abetting, an unlicensed person to engage in
the practice of medicine with a cannabis clinic or dispensary to
provide recommendations for medical marijuana constitutes
unprofessional conduct. Because a violation of these provisions would
be a crime, the bill would impose a state-mandated local program.
 
   Existing law, the Compassionate Use Act of 1996, provides that a
patient or a patient's primary caregiver who possesses or cultivates
marijuana for personal medical purposes of the patient upon the
written or oral recommendation or approval of a physician is not
subject to conviction for offenses relating to possession and
cultivation of marijuana.  
   Existing law also makes it a crime to possess for sale, plant,
cultivate, harvest, dry process, transport, import into this state,
sell, furnish, administer, or give away, to offer to transport,
import into this state, sell, furnish, administer, or give away, or
to attempt to import into this state or transport, any marijuana.
Existing law makes it a felony or misdemeanor to open or maintain any
place for the purpose of unlawfully selling, giving away, or using,
or to knowingly rent, lease, or make available for use a building,
room, space, or enclosure for the purpose of unlawfully
manufacturing, storing, or distributing any controlled substance for
sale or distribution. Existing law further provides that every
building or place used for the purpose of unlawfully selling,
serving, storing, keeping, manufacturing, or giving away any
controlled substance, and every building or place wherein or upon
which those acts take place, is a nuisance which shall be enjoined,
abated, and prevented, and for which damages may be recovered.
 
   Existing law requires the Attorney General to develop and adopt
appropriate guidelines to ensure the security and nondiversion of
marijuana grown for medical use by patients qualified under the
Compassionate Use Act of 1996, and the Attorney General has published
guidelines regarding collectives and cooperatives organized and
operated to cultivate and distribute marijuana for medical purposes.
 
   This bill would exempt from the criminal acts and abatement of
nuisance provisions described above collectives, and cooperatives, as
defined. The bill would also exempt those entities and persons from
criminal prosecution or punishment solely on the basis of the fact
that they receive compensation for actual expenses incurred in
carrying out activities that are in compliance with those guidelines.
 
   The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.  
   This bill would provide that no reimbursement is required by this
act for a specified reason. 
   Vote:  majority   2/3  . Appropriation:
 no   yes  . Fiscal committee: yes.
State-mandated local program:  yes   no  .



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

   SECTION 1.    Section 17144.5 of the  
Revenue and Taxation Code   is amended to read: 
   17144.5.  (a) Section 108(a)(1)(E) of the Internal Revenue Code,
is modified to provide that the amount excluded from gross income
shall not exceed $500,000 ($250,000 in the case of a married
individual filing a separate return).
   (b) Section 108(h)(2) of the Internal Revenue Code, is modified by
substituting the phrase "(within the meaning of section 163(h)(3)
(B), applied by substituting '$800,000 ($400,000' for '$1,000,000
($500,000' in clause (ii) thereof)" for the phrase "(within the
meaning of section 163(h)(3)(B), applied by substituting '$2,000,000
($1,000,000' for '$1,000,000 ($500,000' in clause (ii) thereof)"
contained therein.
   (c) This section shall apply to discharges of indebtedness
occurring on or after January 1, 2007, and, notwithstanding any other
law to the contrary, no penalties or interest shall be due with
respect to the discharge of qualified principal residence
indebtedness during the 2007 or 2009 taxable year regardless of
whether or not the taxpayer reports the discharge on his or her
return for the 2007 or 2009 taxable year. 
   (d) The amendments made by Section 202 of the American Taxpayer
Relief Act of 2012 (Public Law 112-240) to Section 108 of the
Internal Revenue Code shall apply. 
   SEC. 2.    The amendments made by this act that
conform to the amendments made by Section 202 of the American
Taxpayer Relief Act of 2012 (Public Law 112-240) to Section 108 of
the Internal Revenue Code, apply to qualified principal residence
indebtedness that is discharged on and after January 1, 2013, and
before January 1, 2014. The Legislature finds and declares that the
amendments made by this act and the retroactive application contained
in the preceding sentence are necessary for the public purpose of
conforming state law to the amendments to the Internal Revenue Code
as made by the American Taxpayer Relief Act of   2012
(Public Law 112-240), thereby preventing undue hardship to taxpayers
whose qualified principal residence indebtedness was discharged on
and after January 1, 2013, and before January 1, 2014, and do not
constitute a gift of public funds within the meaning of Section 6 of
Article XVI of the California Constitution.   
   SEC. 3.    Notwithstanding Section 13340 of the
Government Code, and without regard to fiscal year, there is hereby
continuously appropriated from the General Fund to the Franchise Tax
Board those amounts necessary to make the payments required by this
act to taxpayers who have included amounts in gross income by reason
of the discharge of principal residence indebtedness that was
discharged on and after January 1, 2013, and before January 1, 2014.
 
  SECTION 1.    Section 2220.05 of the Business and
Professions Code is amended to read:
   2220.05.  (a) In order to ensure that its resources are maximized
for the protection of the public, the Medical Board of California
shall prioritize its investigative and prosecutorial resources to
ensure that physicians and surgeons representing the greatest threat
of harm are identified and disciplined expeditiously. Cases involving
any of the following allegations shall be handled on a priority
basis, as follows, with the highest priority being given to cases in
the first paragraph:
   (1) Gross negligence, incompetence, or repeated negligent acts
that involve death or serious bodily injury to one or more patients,
such that the physician and surgeon represents a danger to the
public.
   (2) Drug or alcohol abuse by a physician and surgeon involving
death or serious bodily injury to a patient.
   (3) Repeated acts of clearly excessive prescribing, furnishing, or
administering of controlled substances, or repeated acts of
prescribing, dispensing, furnishing of controlled substances, or
recommending marijuana to a patient for medical purposes without a
good faith prior examination of the patient and medical reason
therefor. However, in no event shall a physician and surgeon
prescribing, furnishing, or administering controlled substances for
intractable pain consistent with lawful prescribing, including, but
not limited to, Sections 725, 2241.5, and 2241.6 of this code and
Sections 11159.2 and 124961 of the Health and Safety Code, be
prosecuted for excessive prescribing and prompt review of the
applicability of these provisions shall be made in any complaint that
may implicate these provisions.
   (4) Sexual misconduct with one or more patients during a course of
treatment or an examination.
   (5) Practicing medicine while under the influence of drugs or
alcohol.
   (b) The board may by regulation prioritize cases involving an
allegation of conduct that is not described in subdivision (a). Those
cases prioritized by regulation shall not be assigned a priority
equal to or higher than the priorities established in subdivision
(a).
   (c) The Medical Board of California shall indicate in its annual
report mandated by Section 2312 the number of temporary restraining
orders, interim suspension orders, and disciplinary actions that are
taken in each priority category specified in subdivisions (a) and
(b).  
  SEC. 2.    Section 2242 of the Business and
Professions Code is amended to read:
   2242.  (a) Prescribing, dispensing, or furnishing dangerous drugs
as defined in Section 4022, and recommending marijuana to a patient
for medical purposes without an appropriate prior physical
examination and a medical indication, constitutes unprofessional
conduct.
   (b) No licensee shall be found to have committed unprofessional
conduct within the meaning of this section if, at the time the drugs
were prescribed, dispensed, or furnished, any of the following
applies:
   (1) The licensee was a designated physician and surgeon or
podiatrist serving in the absence of the patient's physician and
surgeon or podiatrist, as the case may be, and if the drugs were
prescribed, dispensed, or furnished only as necessary to maintain the
patient until the return of his or her practitioner, but in any case
no longer than 72 hours.
   (2) The licensee transmitted the order for the drugs to a
registered nurse or to a licensed vocational nurse in an inpatient
facility, and if both of the following conditions exist:
   (A) The practitioner had consulted with the registered nurse or
licensed vocational nurse who had reviewed the patient's records.
   (B) The practitioner was designated as the practitioner to serve
in the absence of the patient's physician and surgeon or podiatrist,
as the case may be.
   (3) The licensee was a designated practitioner serving in the
absence of the patient's physician and surgeon or podiatrist, as the
case may be, and was in possession of or had utilized the patient's
records and ordered the renewal of a medically indicated prescription
for an amount not exceeding the original prescription in strength or
amount or for more than one refill.
   (4) The licensee was acting in accordance with Section 120582 of
the Health and Safety Code.  
  SEC. 3.    Section 2264 of the Business and
Professions Code is amended to read:
   2264.  The employing, directly or indirectly, the aiding, or the
abetting of any unlicensed person or any suspended, revoked, or
unlicensed practitioner to engage in the practice of medicine,
including, but not limited to, engaging in the practice of providing
recommendations for medical marijuana at a cannabis clinic or
dispensary, or any other mode of treating the sick or afflicted which
requires a license to practice constitutes unprofessional conduct.
 
  SEC. 4.    Section 11362.765 of the Health and
Safety Code is amended to read:
   11362.765.  (a) Subject to the requirements of this article, the
individuals specified in subdivision (b) shall not be subject, on
that sole basis, to criminal liability under Section 11357, 11358,
11359, 11360, 11366, or 11366.5, or liability as a nuisance under
Section 11570. However, nothing in this section shall authorize the
individual to smoke or otherwise consume marijuana unless otherwise
authorized by this article, nor shall anything in this section
authorize any individual or group to cultivate or distribute
marijuana for profit.
   (b) Subdivision (a) shall apply to all of the following:
   (1) A qualified patient or a person with an identification card
who transports or processes marijuana for his or her own personal
medical use.
   (2) A designated primary caregiver who transports, processes,
administers, delivers, or gives away marijuana for medical purposes,
in amounts not exceeding those established in subdivision (a) of
Section 11362.77, only to the qualified patient of the primary
caregiver, or to the person with an identification card who has
designated the individual as a primary caregiver.
   (3) Any individual who provides assistance to a qualified patient
or a person with an identification card, or his or her designated
primary caregiver, in administering medical marijuana to the
qualified patient or person or acquiring the skills necessary to
cultivate or administer marijuana for medical purposes to the
qualified patient or person.
   (4) Collectives and cooperatives.
   (c) Collectives and cooperatives that receive compensation for
actual expenses incurred in carrying out activities that are in
compliance with the guidelines referenced in subdivision (e),
including reasonable compensation incurred for services provided to
the members or the organization, shall not be subject to prosecution
or punishment under Section 11359 or 11360 solely on the basis of the
fact that those entities or persons receive compensation as
described in this subdivision.
   (d) A primary caregiver who receives compensation for actual
expenses, including reasonable compensation incurred for services
provided to an eligible qualified patient or person with an
identification card to enable that person to use marijuana under this
article, or for payment for out-of-pocket expenses incurred in
providing those services, or both, shall not, on the sole basis of
that fact, be subject to prosecution or punishment under Section
11359 or 11360.
   (e) For purposes of this section, both of the following apply:
   (1) "Collectives and cooperatives" means a collective or
cooperative that operates within the terms of the Compassionate Use
Act of 1996 (Section 11362.5) and this article and that is organized
and operated in compliance with paragraphs A and B of Section IV of
the Guidelines for the Security and Non-Diversion of Marijuana Grown
for Medical Use, issued by the Attorney General in August 2008,
pursuant to Section 11362.81. For purposes of this section,
"collectives and cooperatives" includes the officers, members, and
employees of the collectives and cooperatives.
   (2) A collective may be organized as any statutory business entity
permitted under California law.
   (f) Consistent with Section 11362.83, this section shall not
prevent a local government from adopting or enforcing local
ordinances that regulate the location, operation, or establishment of
a medical marijuana collective or cooperative.  
  SEC. 5.    No reimbursement is required by this
act pursuant to Section 6 of Article XIII B of the California
Constitution because the only costs that may be incurred by a local
agency or school district will be incurred because this act creates a
new crime or infraction, eliminates a crime or infraction, or
changes the penalty for a crime or infraction, within the meaning of
Section 17556 of the Government Code, or changes the definition of a
crime within the meaning of Section 6 of Article XIII B of the
California Constitution.