republic-os/legislation/us/states/ca/20132014/ab-877.md

---
type: "Bill"
title: "Income and Corporation taxes: denial of deduction: owner fine or penalty."
description: "The Personal Income Tax Law and the Corporation Tax Law allow various deductions in computing the income that is subject to the taxes imposed by those laws. Both laws allow a deduction for ordinary and necessary business expenses, including a deduction for amounts paid or incurred for specified types of fines or penalties."
jurisdiction: "us/states/ca"
legislature: "California Legislature"
session: "20132014"
identifier: "AB 877"
citation: "California AB 877 (20132014)"
classification: ["bill"]
subjects: ["Income and Corporation taxes: denial of deduction: owner fine or penalty."]
status: "enacted"
primary_sponsors: ["Bocanegra"]
version_count: 6
action_count: 29
vote_count: 6
first_action: "2013-02-22"
last_action: "2014-09-29"
source: "openstates"
source_identifier: "ocd-bill/596075e5-db09-40e8-a631-3ca34a788005"
source_url: "http://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201320140AB877"
source_hash: "89763699cf4380e5e572634629669c80990dd761eb85973bb18a40e10f6cefd5"
vintage: "2026-07-01"
source_snapshot: "https://data.openstates.org/daily/2026-07-01/public.pgdump"
retrieved_at: "2026-07-06"
confidence: "reported"
tags: ["legislation", "bill", "us-ca"]
---

# California AB 877 (20132014) — Income and Corporation taxes: denial of deduction: owner fine or penalty.

The Personal Income Tax Law and the Corporation Tax Law allow various deductions in computing the income that is subject to the taxes imposed by those laws. Both laws allow a deduction for ordinary and necessary business expenses, including a deduction for amounts paid or incurred for specified types of fines or penalties.

## Version chain

The bill's text revisions, in order — the diff chain from filing to enrollment.

1. **02/22/13 - Introduced** (filed) — [source](https://leginfo.legislature.ca.gov/faces/billPdf.xhtml?bill_id=201320140AB877&version=20130AB87799INT)
2. **01/06/14 - Amended Assembly** (committee substitute) — [source](https://leginfo.legislature.ca.gov/faces/billPdf.xhtml?bill_id=201320140AB877&version=20130AB87798AMD)
3. **05/06/14 - Amended Senate** (committee substitute) — [source](https://leginfo.legislature.ca.gov/faces/billPdf.xhtml?bill_id=201320140AB877&version=20130AB87797AMD)
4. **09/29/14 - Chaptered** (committee substitute) — [source](https://leginfo.legislature.ca.gov/faces/billPdf.xhtml?bill_id=201320140AB877&version=20130AB87795CHP)
5. **AB877** (committee substitute) — [source](http://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201320140AB877)
6. **09/04/14 - Enrolled** (enrolled) — [source](https://leginfo.legislature.ca.gov/faces/billPdf.xhtml?bill_id=201320140AB877&version=20130AB87796ENR)

## Votes

- AB 877 BOCANEGRA Concurrence in Senate Amendments — **61–17** (pass) · lower
- 3rd Reading AB877 Bocanegra By Padilla — **27–9** (pass) · upper
- amendments be concurred in. — **7–1** (pass) · lower
- Do pass. — **4–2** (pass) · lower
- Do pass, but re-refer to the Committee on Appropriations. — **5–1** (pass) · upper
- AB 877 BOCANEGRA Assembly Third Reading — **50–24** (pass) · lower

## Sponsors

- Bocanegra — primary (person)
- Jones-Sawyer — author (person)

## Timeline

The legislative action history — every referral, reading, and vote.

- **2013-02-22** Introduced. To print. `introduction`
- **2013-02-24** From printer. May be heard in committee March 26.
- **2013-02-25** Read first time. `reading-1`
- **2013-03-07** Referred to Com. on E. & R. `referral-committee`
- **2013-05-07** In committee: Set, first hearing. Hearing canceled at the request of author.
- **2014-01-06** In committee: Hearing postponed by committee.
- **2014-01-06** From committee chair, with author's amendments: Amend, and re-refer to Com. on E. & R. Read second time and amended. `amendment-introduction, amendment-passage, reading-2, reading-1`
- **2014-01-07** Re-referred to Com. on E. & R. `referral-committee`
- **2014-01-15** From committee: Do pass. (Ayes 4. Noes 2.) (January 15). `committee-passage-favorable, committee-passage`
- **2014-01-16** Read second time. Ordered to third reading. `reading-2, reading-1`
- **2014-01-27** Read third time. Passed. Ordered to the Senate. (Ayes 50. Noes 24. Page 3680.) `reading-3, reading-1, passage`
- **2014-01-27** In Senate. Read first time. To Com. on RLS. for assignment. `reading-1`
- **2014-02-06** Referred to Com. on E. & C.A. `referral-committee`
- **2014-05-06** From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on E. & C.A. `amendment-introduction, amendment-passage, reading-2, reading-1, referral-committee`
- **2014-05-12** Withdrawn from committee.
- **2014-05-12** Re-referred to Com. on RLS. `referral-committee`
- **2014-05-15** Re-referred to Com. on GOV. & F. `referral-committee`
- **2014-06-11** From committee: Do pass and re-refer to Com. on APPR. (Ayes 5. Noes 1.) (June 10). Re-referred to Com. on APPR. `committee-passage-favorable, referral-committee, committee-passage`
- **2014-06-23** From committee: Be placed on second reading file pursuant to Senate Rule 28.8. `committee-passage`
- **2014-06-24** Read second time. Ordered to third reading. `reading-2, reading-1`
- **2014-08-11** Read third time. Passed. Ordered to the Assembly. (Ayes 27. Noes 9. Page 4424.). `reading-3, reading-1, passage`
- **2014-08-12** In Assembly. Concurrence in Senate amendments pending. May be considered on or after August 14 pursuant to Assembly Rule 77.
- **2014-08-14** Re-referred to Com. on REV. & TAX. pursuant to Assembly Rule 77.2. `referral-committee`
- **2014-08-27** Joint Rule 62(a), file notice suspended. (Page 6550.)
- **2014-08-27** From committee: That the Senate amendments be concurred in. (Ayes 7. Noes 1.) (August 27). `committee-passage`
- **2014-08-28** Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 61. Noes 17. Page 6625.). `committee-passage-favorable, amendment-passage`
- **2014-09-10** Enrolled and presented to the Governor at 4 p.m.
- **2014-09-29** Approved by the Governor. `executive-signature`
- **2014-09-29** Chaptered by Secretary of State - Chapter 792, Statutes of 2014.

## Source

OpenStates / OpenCivicData bulk snapshot [2026-07-01](https://data.openstates.org/daily/2026-07-01/public.pgdump); origin `ocd-bill/596075e5-db09-40e8-a631-3ca34a788005`. Confidence: reported (aggregated from official California legislature records).