SACRAMENTO – Today, Assemblywoman Fiona Ma’s (D-San Francisco) first piece of legislation to reach Governor Arnold Schwarzenegger’s desk was signed into law.  The bill, Assembly Bill 361, adds $15 million to the state treasury over the next three years.  Assemblywoman Ma, who is a Certified Public Accountant, teamed up with the Franchise Tax Board and put her accounting skills to work.

“During tough budget times it is important to make sure California collects every dollar it is owed,” said Assemblywoman Ma.  “Democrats and Republicans supported AB 361 to make sure that California estates pay their taxes.  While $5 million a year won’t solve all our fiscal woes, every penny counts in balancing our budget.”

Frequently, a California income tax obligation is discovered only after the estate representative has wrapped up the estate’s affairs and distributed assets to the heirs.  The late discovery of a tax obligation results in the heirs having to pay the estate’s debts.  AB 361 would solve this problem by adding a requirement for the estate representative to notify the Franchise Tax Board that probate has begun.  The notice would be given at the time probate commences, thus giving FTB adequate time to notify the representative of any pending claims that would need to be addressed.

By instituting this notice requirement, FTB estimates that the bill will result in a $15 million general fund revenue increase over the next three years. The bill is sponsored by FTB and received unanimous support in both the Assembly and Senate.

“I came to Sacramento to work in a bipartisan way for our entire state,” concluded Assemblywoman Ma.  “Thank you to the Governor and my legislative colleagues for helping get the job done.”