"Corporate Accountability" bills pushed by Assemblyman Klehs

By CMTA Staff

Capitol Update, March 23, 2006 Share this on FacebookTweet thisEmail this to a friend

Assemblymember Johan Klehs (D-San Leandro), candidate for the 10th Senate District, announced his "Corporate Accountability Legislative Package" earlier this week indicating the 4-bill package is necessary "to help address the absence of corporate responsibility in our state." The following bills are part of the package:

AB 675, the so-called "Honest Corporate Reporting Act" would require the Franchise Tax Board to conduct a study of the revenue impact of forcing corporations to calculate tax liability using book income. "Book income" is defined to mean any income before accounting for federal and state income taxes. The bill is located in the Senate Revenue & Taxation committee, was stripped of previous contents last April, and now awaits its first policy hearing.

AB 2122, currently a bill on "price gouging" has been identified as the vehicle for the Assemblymember's "Pension Protection Act" which would prohibit any California corporation or any of its subsidiaries from making a distribution to the corporation's shareholders if they have an outstanding pension obligation to employees.

AB 2441 would penalize any person who knowingly collected sales tax reimbursement and fails to turn it over to the State Board of Equalization in a "timely manner". The penalty would be 40 percent of the amount not remitted and the phrase "timely manner" remains undefined. AB 2441 is set for hearing April 3rd in the Assembly revenue & Taxation committee.

AB 2442 deals with capping private sector profits by imposing a 2 percent surtax on net income in excess of $10,000,000 that is apportioned to California and arises from business activities in the petroleum industry. This bill is set for April 24th in the Assembly Revenue & Taxation committee.
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