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| 1 | - | Amended IN Assembly | |
| 1 | + | Amended IN Assembly March 19, 2018 CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Assembly Bill No. 2394Introduced by Assembly Member BroughFebruary 14, 2018An act to amend Section 699.5 of the Military and Veterans Code, relating to veterans. An act to add Section 17132.9 to the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.LEGISLATIVE COUNSEL'S DIGESTAB 2394, as amended, Brough. Military veterans: claims. Personal income taxes: exclusion: military retirement pay.The Personal Income Tax Law imposes a tax on individual taxpayers measured by the taxpayers taxable income for the taxable year, but excludes certain items of income from the computation of tax, including an exclusion for combat-related special compensation.This bill, for taxable years beginning on or after January 1, 2018, would exclude from gross income retirement pay received by a taxpayer from the federal government for military service performed in the Armed Forces of the United States, the reserve component of the Armed Forces of the United States, or the National Guard.This bill would take effect immediately as a tax levy.Existing law authorizes the Department of Veterans Affairs to assist every veteran of the United States, and the dependent or survivor of every veteran of the United States, in presenting and pursuing specified claims, including claims for disability compensation benefits and burial benefits, as the veteran, dependent, or survivor may have against the United States arising out of military service, and in establishing any rights to any privilege, preference, care, or compensation provided for by the laws of the United States or of this state.This bill would make technical, nonsubstantive changes to that provision.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NOYES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 17132.9 is added to the Revenue and Taxation Code, to read:17132.9. Gross income shall not include retirement pay received by a taxpayer from the federal government for military service performed in the Armed Forces of the United States, the reserve component of the Armed Forces of the United States, or the National Guard.SEC. 2. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.SECTION 1.Section 699.5 of the Military and Veterans Code is amended to read:699.5.(a)(1)The department may assist every veteran of the United States, and the dependent or survivor of every veteran of the United States, in presenting and pursuing any claim as the veteran, dependent, or survivor may have against the United States arising out of military service, and in establishing the veterans, dependents, or survivors right to any privilege, preference, care, or compensation provided for by the laws of the United States or of this state.(2)The department may cooperate and, with the approval of the Department of Finance, contract with any veterans service organization, and pursuant to the contract may compensate the organization for services within the scope of this section rendered by it to any veteran or dependent or survivor of a veteran.(3)The contract shall not be made unless the department determines that, owing to the confidential relationships involved and the necessity of operating through agencies that the veterans, dependents, or survivors involved will feel to be sympathetic toward their problems, the services cannot satisfactorily be rendered otherwise than through the agency of the veterans organization and that the best interests of the veterans, dependents, or survivors involved will be served if the contract is made.(b)(1)The Legislature finds and declares that services provided by veterans service organizations play an important role in the departments responsibilities to assist veterans and their dependents and survivors in presenting and pursuing claims against the United States, and that it is an efficient and reasonable use of state funds to provide compensation to veterans service organizations for these services.(2)The Legislature further finds and declares that paragraph (1) shall not be implemented by using the General Fund until the annual budget for county veterans service officers reaches a minimum of five million dollars ($5,000,000). This subdivision does not preclude the use of federal funding in implementing these provisions.(c)Veterans service organizations that elect to contract with the department in accordance with this section shall document the claims processed each year by the veterans service officers employed by the veterans service organization at offices located in the state. The documentation shall be in accordance with procedures established by the department.(d)The department shall determine annually the amount of monetary benefits paid to eligible veterans and their dependents and survivors in the state as a result of the work of the veterans service officers of the contracting organizations. Beginning on January 1, 2006, the department shall, on or before January 1 of each year, prepare and transmit its determination for the preceding fiscal year to the Department of Finance and the Legislature. The department shall also identify federal sources to support the efforts of veterans service organizations pursuant to this section. The Department of Finance shall review the departments determination in time to use the information in the annual Budget Act for the budget of the department for the next fiscal year.(e)For purposes of this section, the following definitions apply:(1)Survivor means any relation of a deceased veteran who may be entitled to make a claim for any privilege, preference, care, or compensation under the laws of the United States or this state based upon the veterans war service.(2)Veterans service officer means an individual employed by a veterans service organization and accredited by the United States Department of Veterans Affairs to process and adjudicate claims and other benefits for veterans and their dependents and survivors.(3)Veterans service organization means an organization that meets all of the following criteria:(A)Is formed by and for United States military veterans.(B)Is chartered by the United States Congress.(C)Has regularly maintained an established committee or agency in a regional office of the United States Department of Veterans Affairs in the state rendering services to veterans and their dependents and survivors. | |
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| 3 | + | Amended IN Assembly March 19, 2018 CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Assembly Bill No. 2394Introduced by Assembly Member BroughFebruary 14, 2018An act to amend Section 699.5 of the Military and Veterans Code, relating to veterans. An act to add Section 17132.9 to the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.LEGISLATIVE COUNSEL'S DIGESTAB 2394, as amended, Brough. Military veterans: claims. Personal income taxes: exclusion: military retirement pay.The Personal Income Tax Law imposes a tax on individual taxpayers measured by the taxpayers taxable income for the taxable year, but excludes certain items of income from the computation of tax, including an exclusion for combat-related special compensation.This bill, for taxable years beginning on or after January 1, 2018, would exclude from gross income retirement pay received by a taxpayer from the federal government for military service performed in the Armed Forces of the United States, the reserve component of the Armed Forces of the United States, or the National Guard.This bill would take effect immediately as a tax levy.Existing law authorizes the Department of Veterans Affairs to assist every veteran of the United States, and the dependent or survivor of every veteran of the United States, in presenting and pursuing specified claims, including claims for disability compensation benefits and burial benefits, as the veteran, dependent, or survivor may have against the United States arising out of military service, and in establishing any rights to any privilege, preference, care, or compensation provided for by the laws of the United States or of this state.This bill would make technical, nonsubstantive changes to that provision.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NOYES Local Program: NO | |
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| 5 | + | Amended IN Assembly March 19, 2018 | |
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| 7 | - | Amended IN Assembly April 24, 2018 | |
| 8 | 7 | Amended IN Assembly March 19, 2018 | |
| 9 | 8 | ||
| 10 | 9 | CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION | |
| 11 | 10 | ||
| 12 | 11 | Assembly Bill No. 2394 | |
| 13 | 12 | ||
| 14 | - | Introduced by Assembly Member | |
| 13 | + | Introduced by Assembly Member BroughFebruary 14, 2018 | |
| 15 | 14 | ||
| 16 | - | Introduced by Assembly Member Brough | |
| 15 | + | Introduced by Assembly Member Brough | |
| 17 | 16 | February 14, 2018 | |
| 18 | 17 | ||
| 19 | - | An act to add Section 17132.9 to the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. | |
| 18 | + | An act to amend Section 699.5 of the Military and Veterans Code, relating to veterans. An act to add Section 17132.9 to the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. | |
| 20 | 19 | ||
| 21 | 20 | LEGISLATIVE COUNSEL'S DIGEST | |
| 22 | 21 | ||
| 23 | 22 | ## LEGISLATIVE COUNSEL'S DIGEST | |
| 24 | 23 | ||
| 25 | - | AB 2394, as amended, Brough. Personal income taxes: exclusion: military | |
| 24 | + | AB 2394, as amended, Brough. Military veterans: claims. Personal income taxes: exclusion: military retirement pay. | |
| 26 | 25 | ||
| 27 | - | The Personal Income Tax Law imposes a tax on individual taxpayers measured by the taxpayers taxable income for the taxable year, but excludes certain items of income from the computation of tax, including an exclusion for combat-related special compensation.This bill, for taxable years beginning on or after January 1, 2018, | |
| 26 | + | The Personal Income Tax Law imposes a tax on individual taxpayers measured by the taxpayers taxable income for the taxable year, but excludes certain items of income from the computation of tax, including an exclusion for combat-related special compensation.This bill, for taxable years beginning on or after January 1, 2018, would exclude from gross income retirement pay received by a taxpayer from the federal government for military service performed in the Armed Forces of the United States, the reserve component of the Armed Forces of the United States, or the National Guard.This bill would take effect immediately as a tax levy.Existing law authorizes the Department of Veterans Affairs to assist every veteran of the United States, and the dependent or survivor of every veteran of the United States, in presenting and pursuing specified claims, including claims for disability compensation benefits and burial benefits, as the veteran, dependent, or survivor may have against the United States arising out of military service, and in establishing any rights to any privilege, preference, care, or compensation provided for by the laws of the United States or of this state.This bill would make technical, nonsubstantive changes to that provision. | |
| 28 | 27 | ||
| 29 | 28 | The Personal Income Tax Law imposes a tax on individual taxpayers measured by the taxpayers taxable income for the taxable year, but excludes certain items of income from the computation of tax, including an exclusion for combat-related special compensation. | |
| 30 | 29 | ||
| 31 | - | This bill, for taxable years beginning on or after January 1, 2018 | |
| 30 | + | This bill, for taxable years beginning on or after January 1, 2018, would exclude from gross income retirement pay received by a taxpayer from the federal government for military service performed in the Armed Forces of the United States, the reserve component of the Armed Forces of the United States, or the National Guard. | |
| 32 | 31 | ||
| 33 | 32 | This bill would take effect immediately as a tax levy. | |
| 33 | + | ||
| 34 | + | Existing law authorizes the Department of Veterans Affairs to assist every veteran of the United States, and the dependent or survivor of every veteran of the United States, in presenting and pursuing specified claims, including claims for disability compensation benefits and burial benefits, as the veteran, dependent, or survivor may have against the United States arising out of military service, and in establishing any rights to any privilege, preference, care, or compensation provided for by the laws of the United States or of this state. | |
| 35 | + | ||
| 36 | + | ||
| 37 | + | ||
| 38 | + | This bill would make technical, nonsubstantive changes to that provision. | |
| 39 | + | ||
| 40 | + | ||
| 34 | 41 | ||
| 35 | 42 | ## Digest Key | |
| 36 | 43 | ||
| 37 | 44 | ## Bill Text | |
| 38 | 45 | ||
| 39 | - | The people of the State of California do enact as follows:SECTION 1. Section 17132.9 is added to the Revenue and Taxation Code, to read:17132.9. | |
| 46 | + | The people of the State of California do enact as follows:SECTION 1. Section 17132.9 is added to the Revenue and Taxation Code, to read:17132.9. Gross income shall not include retirement pay received by a taxpayer from the federal government for military service performed in the Armed Forces of the United States, the reserve component of the Armed Forces of the United States, or the National Guard.SEC. 2. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.SECTION 1.Section 699.5 of the Military and Veterans Code is amended to read:699.5.(a)(1)The department may assist every veteran of the United States, and the dependent or survivor of every veteran of the United States, in presenting and pursuing any claim as the veteran, dependent, or survivor may have against the United States arising out of military service, and in establishing the veterans, dependents, or survivors right to any privilege, preference, care, or compensation provided for by the laws of the United States or of this state.(2)The department may cooperate and, with the approval of the Department of Finance, contract with any veterans service organization, and pursuant to the contract may compensate the organization for services within the scope of this section rendered by it to any veteran or dependent or survivor of a veteran.(3)The contract shall not be made unless the department determines that, owing to the confidential relationships involved and the necessity of operating through agencies that the veterans, dependents, or survivors involved will feel to be sympathetic toward their problems, the services cannot satisfactorily be rendered otherwise than through the agency of the veterans organization and that the best interests of the veterans, dependents, or survivors involved will be served if the contract is made.(b)(1)The Legislature finds and declares that services provided by veterans service organizations play an important role in the departments responsibilities to assist veterans and their dependents and survivors in presenting and pursuing claims against the United States, and that it is an efficient and reasonable use of state funds to provide compensation to veterans service organizations for these services.(2)The Legislature further finds and declares that paragraph (1) shall not be implemented by using the General Fund until the annual budget for county veterans service officers reaches a minimum of five million dollars ($5,000,000). This subdivision does not preclude the use of federal funding in implementing these provisions.(c)Veterans service organizations that elect to contract with the department in accordance with this section shall document the claims processed each year by the veterans service officers employed by the veterans service organization at offices located in the state. The documentation shall be in accordance with procedures established by the department.(d)The department shall determine annually the amount of monetary benefits paid to eligible veterans and their dependents and survivors in the state as a result of the work of the veterans service officers of the contracting organizations. Beginning on January 1, 2006, the department shall, on or before January 1 of each year, prepare and transmit its determination for the preceding fiscal year to the Department of Finance and the Legislature. The department shall also identify federal sources to support the efforts of veterans service organizations pursuant to this section. The Department of Finance shall review the departments determination in time to use the information in the annual Budget Act for the budget of the department for the next fiscal year.(e)For purposes of this section, the following definitions apply:(1)Survivor means any relation of a deceased veteran who may be entitled to make a claim for any privilege, preference, care, or compensation under the laws of the United States or this state based upon the veterans war service.(2)Veterans service officer means an individual employed by a veterans service organization and accredited by the United States Department of Veterans Affairs to process and adjudicate claims and other benefits for veterans and their dependents and survivors.(3)Veterans service organization means an organization that meets all of the following criteria:(A)Is formed by and for United States military veterans.(B)Is chartered by the United States Congress.(C)Has regularly maintained an established committee or agency in a regional office of the United States Department of Veterans Affairs in the state rendering services to veterans and their dependents and survivors. | |
| 40 | 47 | ||
| 41 | 48 | The people of the State of California do enact as follows: | |
| 42 | 49 | ||
| 43 | 50 | ## The people of the State of California do enact as follows: | |
| 44 | 51 | ||
| 45 | - | SECTION 1. Section 17132.9 is added to the Revenue and Taxation Code, to read:17132.9. | |
| 52 | + | SECTION 1. Section 17132.9 is added to the Revenue and Taxation Code, to read:17132.9. Gross income shall not include retirement pay received by a taxpayer from the federal government for military service performed in the Armed Forces of the United States, the reserve component of the Armed Forces of the United States, or the National Guard. | |
| 46 | 53 | ||
| 47 | 54 | SECTION 1. Section 17132.9 is added to the Revenue and Taxation Code, to read: | |
| 48 | 55 | ||
| 49 | 56 | ### SECTION 1. | |
| 50 | 57 | ||
| 51 | - | 17132.9. | |
| 58 | + | 17132.9. Gross income shall not include retirement pay received by a taxpayer from the federal government for military service performed in the Armed Forces of the United States, the reserve component of the Armed Forces of the United States, or the National Guard. | |
| 52 | 59 | ||
| 53 | - | 17132.9. | |
| 60 | + | 17132.9. Gross income shall not include retirement pay received by a taxpayer from the federal government for military service performed in the Armed Forces of the United States, the reserve component of the Armed Forces of the United States, or the National Guard. | |
| 54 | 61 | ||
| 55 | - | 17132.9. | |
| 62 | + | 17132.9. Gross income shall not include retirement pay received by a taxpayer from the federal government for military service performed in the Armed Forces of the United States, the reserve component of the Armed Forces of the United States, or the National Guard. | |
| 56 | 63 | ||
| 57 | 64 | ||
| 58 | 65 | ||
| 59 | - | 17132.9. Gross (a) For taxable years beginning on or after January 1, 2018, and before January 1, 2028, gross income shall not include retirement pay received by a taxpayer from the federal government for military service performed in the Armed Forces of the United States, the reserve component of the Armed Forces of the United States, or the National Guard. service in the uniformed services. | |
| 60 | - | ||
| 61 | - | (b) For purposes of this section, uniformed services means Armed Forces of the United States of America, the Army National Guard and the Air National Guard when engaged in active duty for training, inactive duty training, or full-time National Guard duty, and the commissioned corps of the United States Public Health Service. | |
| 66 | + | 17132.9. Gross income shall not include retirement pay received by a taxpayer from the federal government for military service performed in the Armed Forces of the United States, the reserve component of the Armed Forces of the United States, or the National Guard. | |
| 62 | 67 | ||
| 63 | 68 | SEC. 2. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. | |
| 64 | 69 | ||
| 65 | 70 | SEC. 2. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. | |
| 66 | 71 | ||
| 67 | 72 | SEC. 2. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. | |
| 68 | 73 | ||
| 69 | 74 | ### SEC. 2. | |
| 75 | + | ||
| 76 | + | ||
| 77 | + | ||
| 78 | + | ||
| 79 | + | ||
| 80 | + | (a)(1)The department may assist every veteran of the United States, and the dependent or survivor of every veteran of the United States, in presenting and pursuing any claim as the veteran, dependent, or survivor may have against the United States arising out of military service, and in establishing the veterans, dependents, or survivors right to any privilege, preference, care, or compensation provided for by the laws of the United States or of this state. | |
| 81 | + | ||
| 82 | + | ||
| 83 | + | ||
| 84 | + | (2)The department may cooperate and, with the approval of the Department of Finance, contract with any veterans service organization, and pursuant to the contract may compensate the organization for services within the scope of this section rendered by it to any veteran or dependent or survivor of a veteran. | |
| 85 | + | ||
| 86 | + | ||
| 87 | + | ||
| 88 | + | (3)The contract shall not be made unless the department determines that, owing to the confidential relationships involved and the necessity of operating through agencies that the veterans, dependents, or survivors involved will feel to be sympathetic toward their problems, the services cannot satisfactorily be rendered otherwise than through the agency of the veterans organization and that the best interests of the veterans, dependents, or survivors involved will be served if the contract is made. | |
| 89 | + | ||
| 90 | + | ||
| 91 | + | ||
| 92 | + | (b)(1)The Legislature finds and declares that services provided by veterans service organizations play an important role in the departments responsibilities to assist veterans and their dependents and survivors in presenting and pursuing claims against the United States, and that it is an efficient and reasonable use of state funds to provide compensation to veterans service organizations for these services. | |
| 93 | + | ||
| 94 | + | ||
| 95 | + | ||
| 96 | + | (2)The Legislature further finds and declares that paragraph (1) shall not be implemented by using the General Fund until the annual budget for county veterans service officers reaches a minimum of five million dollars ($5,000,000). This subdivision does not preclude the use of federal funding in implementing these provisions. | |
| 97 | + | ||
| 98 | + | ||
| 99 | + | ||
| 100 | + | (c)Veterans service organizations that elect to contract with the department in accordance with this section shall document the claims processed each year by the veterans service officers employed by the veterans service organization at offices located in the state. The documentation shall be in accordance with procedures established by the department. | |
| 101 | + | ||
| 102 | + | ||
| 103 | + | ||
| 104 | + | (d)The department shall determine annually the amount of monetary benefits paid to eligible veterans and their dependents and survivors in the state as a result of the work of the veterans service officers of the contracting organizations. Beginning on January 1, 2006, the department shall, on or before January 1 of each year, prepare and transmit its determination for the preceding fiscal year to the Department of Finance and the Legislature. The department shall also identify federal sources to support the efforts of veterans service organizations pursuant to this section. The Department of Finance shall review the departments determination in time to use the information in the annual Budget Act for the budget of the department for the next fiscal year. | |
| 105 | + | ||
| 106 | + | ||
| 107 | + | ||
| 108 | + | (e)For purposes of this section, the following definitions apply: | |
| 109 | + | ||
| 110 | + | ||
| 111 | + | ||
| 112 | + | (1)Survivor means any relation of a deceased veteran who may be entitled to make a claim for any privilege, preference, care, or compensation under the laws of the United States or this state based upon the veterans war service. | |
| 113 | + | ||
| 114 | + | ||
| 115 | + | ||
| 116 | + | (2)Veterans service officer means an individual employed by a veterans service organization and accredited by the United States Department of Veterans Affairs to process and adjudicate claims and other benefits for veterans and their dependents and survivors. | |
| 117 | + | ||
| 118 | + | ||
| 119 | + | ||
| 120 | + | (3)Veterans service organization means an organization that meets all of the following criteria: | |
| 121 | + | ||
| 122 | + | ||
| 123 | + | ||
| 124 | + | (A)Is formed by and for United States military veterans. | |
| 125 | + | ||
| 126 | + | ||
| 127 | + | ||
| 128 | + | (B)Is chartered by the United States Congress. | |
| 129 | + | ||
| 130 | + | ||
| 131 | + | ||
| 132 | + | (C)Has regularly maintained an established committee or agency in a regional office of the United States Department of Veterans Affairs in the state rendering services to veterans and their dependents and survivors. |