republic-os/legislation/us/states/ca/20112012/ab-1369.md

---
type: "Bill"
title: "Personal and corporate income taxes: deductions: illegal activities."
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. Those laws, in modified conformity to federal income tax laws, disallow any deduction from gross income if that income is directly derived from, or directly tends to promote or further, illegal activities relating to lotteries, gaming, or horse racing, and other specified illegal activities."
jurisdiction: "us/states/ca"
legislature: "California Legislature"
session: "20112012"
identifier: "AB 1369"
citation: "California AB 1369 (20112012)"
classification: ["bill"]
subjects: ["Personal and corporate income taxes: deductions: illegal activities."]
status: "enacted"
primary_sponsors: ["Gatto"]
version_count: 5
action_count: 23
vote_count: 5
first_action: "2011-02-18"
last_action: "2011-10-04"
source: "openstates"
source_identifier: "ocd-bill/da8ee80e-a567-4adf-9ca7-e3248e3def56"
source_url: "http://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201120120AB1369"
source_hash: "40589aa76d5c253cffa2b83769dbc0c02a49fd10f6a7bfdbd9e7377ec609ed32"
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 1369 (20112012) — Personal and corporate income taxes: deductions: illegal activities.

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. Those laws, in modified conformity to federal income tax laws, disallow any deduction from gross income if that income is directly derived from, or directly tends to promote or further, illegal activities relating to lotteries, gaming, or horse racing, and other specified illegal activities.

## Version chain

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

1. **02/18/11 - Introduced** (filed) — [source](https://leginfo.legislature.ca.gov/faces/billPdf.xhtml?bill_id=201120120AB1369&version=20110AB136999INT)
2. **05/18/11 - Amended Assembly** (committee substitute) — [source](https://leginfo.legislature.ca.gov/faces/billPdf.xhtml?bill_id=201120120AB1369&version=20110AB136998AMD)
3. **10/04/11 - Chaptered** (committee substitute) — [source](https://leginfo.legislature.ca.gov/faces/billPdf.xhtml?bill_id=201120120AB1369&version=20110AB136996CHP)
4. **AB1369** (committee substitute) — [source](http://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201120120AB1369)
5. **09/09/11 - Enrolled** (enrolled) — [source](https://leginfo.legislature.ca.gov/faces/billPdf.xhtml?bill_id=201120120AB1369&version=20110AB136997ENR)

## Votes

- AB 1369 GATTO Assembly Third Reading — **75–0** (pass) · lower
- Do pass, but re-refer to the Committee on Appropriations. — **9–0** (pass) · upper
- 3rd Reading AB1369 Gatto By Dutton — **39–0** (pass) · upper
- Do pass as amended and be re-referred to the Committee on Appropriations. — **8–0** (pass) · lower
- Do pass, to Consent Calendar. — **17–0** (pass) · lower

## Sponsors

- Gatto — primary (person)
- Perea — author (person)

## Timeline

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

- **2011-02-18** Read first time. To print. `reading-1`
- **2011-02-20** From printer. May be heard in committee March 22.
- **2011-03-21** Referred to Com. on REV. & TAX. `referral-committee`
- **2011-04-26** In committee: Hearing postponed by committee.
- **2011-05-02** In committee: Hearing postponed by committee.
- **2011-05-09** In committee: Set, first hearing. Referred to REV. & TAX. suspense file. `referral-committee`
- **2011-05-17** From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 8. Noes 0.) (May 16). `amendment-passage, committee-passage, committee-passage-favorable`
- **2011-05-18** Read second time and amended. `reading-2, reading-1, amendment-passage`
- **2011-05-19** Re-referred to Com. on APPR. `referral-committee`
- **2011-05-27** From committee: Do pass. To consent calendar. (Ayes 17. Noes 0.) (May 27). `committee-passage, committee-passage-favorable`
- **2011-05-27** Read second time. Ordered to consent calendar. `reading-2, reading-1`
- **2011-05-31** Ordered to third reading.
- **2011-06-02** Read third time. Passed. Ordered to the Senate. (Ayes 75. Noes 0. Page 1817.) `reading-3, reading-1, passage`
- **2011-06-02** In Senate. Read first time. To Com. on RLS. for assignment. `reading-1`
- **2011-06-16** Referred to Com. on GOV. & F. `referral-committee`
- **2011-07-07** From committee: Do pass and re-refer to Com. on APPR. (Ayes 9. Noes 0.) (July 6). Re-referred to Com. on APPR. `referral-committee, committee-passage, committee-passage-favorable`
- **2011-08-15** From committee: Be placed on second reading file pursuant to Senate Rule 28.8. `committee-passage`
- **2011-08-16** Read second time. Ordered to third reading. `reading-2, reading-1`
- **2011-09-06** Read third time. Passed. Ordered to the Assembly. (Ayes 39. Noes 0. Page 2304.). `reading-3, reading-1, passage`
- **2011-09-06** In Assembly. Ordered to Engrossing and Enrolling. `committee-passage`
- **2011-09-16** Enrolled and presented to the Governor at 11:30 a.m.
- **2011-10-04** Approved by the Governor. `executive-signature`
- **2011-10-04** Chaptered by Secretary of State - Chapter 454, Statutes of 2011.

## Source

OpenStates / OpenCivicData bulk snapshot [2026-07-01](https://data.openstates.org/daily/2026-07-01/public.pgdump); origin `ocd-bill/da8ee80e-a567-4adf-9ca7-e3248e3def56`. Confidence: reported (aggregated from official California legislature records).