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AB-3057 Corporation taxes: exempt organizations: mutual ditch or irrigation companies.(2017-2018)

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Date Published: 03/13/2018 09:00 PM
AB3057:v98#DOCUMENT

Amended  IN  Assembly  March 13, 2018

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 3057


Introduced by Assembly Member Quirk-Silva

February 16, 2018


An act to amend Section 1002 of the Code of Civil Procedure, relating to civil actions. An act to amend Section 24473 of, and to add Section 23701m to, the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.


LEGISLATIVE COUNSEL'S DIGEST


AB 3057, as amended, Quirk-Silva. Settlement agreements: confidentiality. Corporation taxes: exempt organizations: mutual ditch or irrigation companies.
The Corporation Tax Law, in modified conformity with federal income tax laws, exempts various types of organizations from taxes imposed by that law.
This bill, in further conformity with federal income tax laws, for taxable years beginning on or after January 1, 2018, would exempt from the taxes imposed by the Corporation Tax Law a mutual ditch or irrigation company, as provided. This bill would make additional conforming changes.
This bill would also take effect immediately as a tax levy.

Existing law prohibits a provision in a settlement agreement that prevents the disclosure of factual information related to the action in a civil action with a factual foundation establishing a cause of action for civil damages for certain enumerated sexual offenses. Existing law prohibits a court from entering an order in any of these types of civil actions that restricts disclosure of this information, as specified, and it makes a provision in a settlement agreement that prevents the disclosure of factual information related to the action, entered into on or after January 1, 2017, void as a matter of law and against public policy.

This bill would expand this prohibition to cover a settlement agreement in an action with a factual foundation establishing a cause of action for sexual abuse or harassment.

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NOYES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 23701m is added to the Revenue and Taxation Code, to read:

23701m.
 For taxable years beginning on or after January 1, 2018, mutual ditch or irrigation companies subject to the limitations and as described in Section 501(c)(12) of the Internal Revenue Code.

SEC. 2.

 Section 24473 of the Revenue and Taxation Code is amended to read:

24473.
 Notwithstanding any other provision of law, the contribution or other transfer of the assets of a mutual water company established prior to September 26, 1977, that is tax exempt under Section 501(c)(12) of the Internal Revenue Code, but is a taxable entity under California Law, law, for taxable years beginning before January 1, 2018, including its lands, easements, rights, and obligations to act as sole agent of the stockholders in exercising the riparian rights of the stockholders, and rights relating to the ownership, operation, and maintenance of a water system and facilities serving the customers of the company, to a community services district formed pursuant to Part 1 (commencing with Section 61100) 61000) of Division 3 of Title 6 of the Government Code, is not a transfer subject to taxes imposed by this part if all of the following requirements are met:
(a) The consideration for the transfer of all or substantially all of the assets is the assumption by the district of the company’s liability to provide service to the company’s stockholders.
(b) The legal or beneficial title to all or substantially all of the company’s assets is vested in the district on or before January 1, 2008.
(c) For the one-year period immediately prior to commencement of the transfer and continuing until the transfer is completed, 85 percent or more of the company’s income consists of amounts collected from stockholders for the sole purpose of meeting losses and expenses.

SEC. 3.

 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 1002 of the Code of Civil Procedure is amended to read:
1002.

(a)Notwithstanding any other law, a provision within a settlement agreement that prevents the disclosure of factual information related to the action is prohibited in any civil action the factual foundation for which establishes a cause of action for civil damages for any of the following:

(1)An act that may be prosecuted as a felony sex offense.

(2)An act of childhood sexual abuse, as defined in Section 340.1.

(3)An act of sexual exploitation of a minor, as defined in Section 11165.1 of the Penal Code, or conduct prohibited with respect to a minor pursuant to Section 311.1, 311.5, or 311.6 of the Penal Code.

(4)An act of sexual assault, as defined in paragraphs (1) to (9), inclusive, of subdivision (e) of Section 15610.63 of the Welfare and Institutions Code, against an elder or dependent adult, as defined in Sections 15610.23 and 15610.27 of the Welfare and Institutions Code.

(5)An act of sexual abuse or harassment that is not otherwise governed by this subdivision.

(b)Notwithstanding any other law, in a civil action described in paragraphs (1) to (5), inclusive, of subdivision (a), a court shall not enter, by stipulation or otherwise, an order that restricts the disclosure of information in a manner that conflicts with subdivision (a).

(c)Subdivisions (a) and (b) do not preclude an agreement preventing the disclosure of any medical information or personal identifying information, as defined in subdivision (b) of Section 530.55 of the Penal Code, regarding the victim of the offense listed in subdivision (a) or of any information revealing the nature of the relationship between the victim and the defendant. This subdivision shall not be construed to limit the right of a crime victim to disclose this information.

(d)Except as authorized by subdivision (c), a provision within a settlement agreement that prevents the disclosure of factual information related to the action described in subdivision (a) that is entered into on or after January 1, 2017, is void as a matter of law and against public policy.

(e)An attorney’s failure to comply with the requirements of this section by demanding that a provision be included in a settlement agreement that prevents the disclosure of factual information related to the action described in subdivision (a) that is not otherwise authorized by subdivision (c) as a condition of settlement, or advising a client to sign an agreement that includes such a provision, may be grounds for professional discipline and the State Bar of California shall investigate and take appropriate action in any such case brought to its attention.