Bill Text: CA AB3152 | 2023-2024 | Regular Session | Amended
Bill Title: Excise tax: loan guaranties: education and training.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2024-04-01 - Re-referred to Com. on RLS. [AB3152 Detail]
Download: California-2023-AB3152-Amended.html
|
Amended
IN
Assembly
March 21, 2024 |
CALIFORNIA LEGISLATURE—
2023–2024 REGULAR SESSION
Assembly Bill
No. 3152
| Introduced by Assembly Member Jones-Sawyer |
February 16, 2024 |
An act to amend Section 56000 of add Chapter 4.7 (commencing with Section 8304) to Division 1 of Title 2 of the Government Code, and to add Part 13.6.5 (commencing with Section 31020) to Division 2 of the Revenue and Taxation Code, relating to local government. reparations, and making an appropriation therefor.
LEGISLATIVE COUNSEL'S DIGEST
AB 3152, as amended, Jones-Sawyer.
Local government. Excise tax: loan guaranties: education and training.
Existing law requires the California Housing Finance Agency to, among other housing-related duties, insure certain housing loans to qualified buyers that meet certain requirements, including that the loan is secured by mortgages or deeds of trust, or the loan is wholly or partially insured or guaranteed by an agency or instrumentality of the United States, except as specified.
This bill would authorize an eligible person to apply to an administrator for the guaranty of up to 50% of one or more qualified loans, as defined, in an aggregate amount that does not exceed an unspecified amount. The bill would define “eligible person” to mean an African American
with a special consideration for an African American who is a descendant of persons enslaved in the United States. The bill would prohibit the administrator from guaranteeing a qualified loan if there are not sufficient moneys in the Reparations Fund, described below, to cover the cost of the guaranty.
This bill would also entitle an eligible person to education or training, or a refresher or retraining course, at an approved educational or training institution, as defined, for no more than 4 years if the eligible person is in satisfactory standing according to the regularly prescribed standards and practices of the educational or training institution and would require the administrator to pay certain costs related to the education or training, including the cost of tuition and other standard fees for that eligible person. The bill would make these provisions
operative only if there are sufficient moneys in the Reparations Fund, described below, to cover the costs of administering the provisions.
This bill would create in the State Treasury the Reparations Fund and would continuously appropriate the fund for the purposes of the programs described above. The bill would require revenues, interest, and penalties, less refunds and reimbursement to the California Department of Tax and Fee Administration for reasonable administrative expenses, derived from a tax described below to be deposited into the fund. The bill would also authorize the fund to accept charitable donations, as specified. By creating a continuously appropriated fund and providing moneys for the fund, this bill would make an appropriation.
Existing state sales and use tax laws impose a tax on retailers measured by the gross receipts from the sale of tangible personal property sold at retail in this state of, or on
the storage, use, or other consumption in this state of, tangible personal property purchased from a retailer for storage, use, or other consumption in this state. The California Constitution prohibits the state and its political subdivisions from levying or collecting a sales or use tax on the sale of, or the storage, use, or other consumption in the state of, food products for human consumption, except as provided by statute as of January 1, 1993.
This bill would, beginning July 1, 2025, require a purchaser to pay a tax on the purchase for use in this state of gold bullion and gold coins, tangible property made in whole or in part from cotton, or tobacco products from a retailer at the rate of an unspecified percentage of the sales price of those items of tangible personal property. The bill would provide for the administration and collection of this tax pursuant to procedures set forth in the Fee Collection Procedures Law. By expanding the application of the Fee
Collection Procedures Law, the violation of which is a crime, this bill would impose a state-mandated local program.
This bill would also, beginning July 1, 2025, require a purchaser to pay a tax, imposed and administered in the same manner as the tax described above, on the purchase for use in this state of wine, olives, cane sugar, granulated sugar, rice, and coffee beans from a retailer at the rate of an unspecified percentage of the sales price of those items of tangible personal property. The bill would make the operation of this provision contingent upon an unspecified Assembly Constitutional Amendment of the 2023–24 Regular Session being approved by the voters and taking effect.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
This bill would make findings and declarations related to a gift of public funds.
Existing law, the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000, provides the exclusive authority and procedure for the initiation, conduct, and completion of changes of organization and reorganization for cities and districts, except as specified.
This bill would make nonsubstantive changes to those provisions.
Digest Key
Vote:Bill Text
The people of the State of California do enact as follows:
SECTION 1.
Chapter 4.7 (commencing with Section 8304) is added to Division 1 of Title 2 of the Government Code, to read:CHAPTER 4.7. Reparations Programs
8304.
As used in this chapter:(a) “Administrator” means an unspecified state entity.
(b) “Approved educational or training institution” means an educational or training institution approved by the administrator and listed pursuant to paragraph (2) of subdivision (a) of Section 8304.1.
(c) “Educational or training institution” means a postsecondary educational institution or a vocational school in the state.
(d) “Eligible person” means an African American with a special consideration for an African American who is a descendant of persons enslaved in the United States.
(e) “Fund” means the Reparations Fund created by Section 8304.4.
(f) “Qualified loan” means a loan that is used for any of the following purposes:
(1) To finance the purchase or construction of the borrower’s primary residence.
(2) To make repairs, alterations, or improvements to, or to pay delinquent indebtedness, taxes, or special assessments on, residential real property owned and used as a primary residence by an eligible person.
(3) Purchasing land, buildings, livestock, equipment, machinery, or implements, or repairing, altering, or improving buildings or equipment, to be used in farming operations conducted by an eligible person.
8304.1.
(a) (1) An eligible person shall be entitled to education or training, or a refresher or retraining course, at an approved educational or training institution for no more than four years if the eligible person is in satisfactory standing according to the regularly prescribed standards and practices of the educational or training institution.(2) The administrator shall publish a list of the approved educational and training institutions in each county.
(b) The administrator shall pay both of the following to any approved educational or training institution at which an eligible person is enrolled:
(1) The cost of tuition and other standard fees for that eligible person.
(2) The cost of required textbooks, supplies, equipment, lodging, and other necessary expenses for that eligible person.
(c) (1) (A) The administrator shall pay to any eligible person with a dependent a subsistence allowance of____ dollars ($__ _) per month.
(B) The administrator shall pay to any eligible person without a dependent a subsistence allowance of ____ dollars ($____) per month.
(2) The administrator shall reduce the subsistence allowance for an eligible person attending a course on a part-time basis or for an eligible person receiving compensation for labor performed as part of the eligible person’s
apprenticeship or other training based on the subsistence need of the eligible person, as determined by the administrator.
(d) This section shall be operative only if there are sufficient moneys in the fund to cover the costs of administering this section.
8304.2.
(a) (1) An eligible person may apply for a qualified loan guaranty from the administrator of up to 50 percent of one or more qualified loans in an aggregate amount that does not exceed ____ dollars ($____) pursuant to this section.(2) The administrator shall not require security for the guaranty of a qualified loan issued pursuant to this subdivision.
(b) The administrator shall not guarantee a qualified loan pursuant to this section if the loan meets either of the following conditions:
(1) The loan is not subject to an agreement that, before beginning foreclosure proceedings for default
in payment of principal or interest due, the administrator shall have at least 30 days’ notice with the option of bidding on the property in foreclosure or refinancing the loan.
(2) The loan is subject to an interest rate that exceeds ____ percent.
(c) The administrator may guarantee a qualified loan for the purpose of financing the purchase or construction of the borrower’s primary residence pursuant to this section if all of the following are true:
(1) The terms of payment are reasonable given the eligible person’s present and anticipated income and expenses.
(2) The property that secures the qualified loan is suitable for dwelling purposes.
(3) The purchase price for the property,
including the value of a lot on which the property is constructed, does not exceed the market value of the property.
(d) The administrator may guarantee a qualified loan for the purpose of making repairs, alterations, or improvements to, or for the purpose of paying delinquent indebtedness, taxes, or special assessments on, residential real property owned and used as a primary residence by an eligible person.
(e) The administrator may guarantee a qualified loan used in purchasing land, buildings, livestock, equipment, machinery, or implements, or in repairing, altering, or improving any buildings or equipment, to be used in farming operations conducted by an eligible person if all of the following are true:
(1) The proceeds of the qualified loan will be used to purchase real or personal property that will be useful
in, and reasonably necessary for, efficiently conducting bona fide, legal farming operations.
(2) The ability and experience of the eligible person and the nature of the proposed farming operations to be conducted are such that there is a reasonable likelihood that the farming operations will be successful.
(3) The purchase price does not exceed the market value of the real or personal property.
(f) The administrator may guarantee a loan to be used in purchasing businesses, land, buildings, supplies, equipment, machinery, or tools to be used by the applicant in pursuing a gainful occupation, other than farming, if they find all of the following are true:
(1) The real or personal property will be useful in, and reasonably necessary for, the efficient and
successful pursuit of the gainful occupation.
(2) The ability and experience of the eligible person and the conditions under which the eligible person proposes to pursue the gainful occupation are such that there is a reasonable likelihood that the eligible person will be successful in the pursuit of that gainful occupation.
(3) The purchase price does not exceed the market value of the real or personal property.
(g) The administrator may consult with other state entities in making a determination to approve an application for a loan guaranty under this section.
(h) (1) If the administrator guarantees a principal qualified loan, and the eligible person is in need of a second loan to cover the remainder of the purchase price, the
administrator may guarantee the full amount of the second loan, subject to the limitation described in subdivision (a).
(2) A second qualified loan approved pursuant to this subdivision shall not exceed 20 percent of the purchase price, and the interest rate shall not exceed the interest rate on the principal qualified loan by more than 1 percent.
(i) The administrator may adopt rules and regulations necessary and appropriate for carrying out the provisions of this section.
(j) The administrator shall not guarantee a qualified loan if there are not sufficient moneys in the fund to cover the cost of the guaranty.
8304.3.
The Governor shall assign to each county an employment representative who shall be attached to the staff of the public employment service in the county and shall do all of the following:(a) Assist in the registration of an eligible person in a local employment office for suitable types of employment and for placement in employment.
(b) Assist in securing and maintaining current information as to the various types of available employment in both public works and private industry.
(c) Promote the interest of employers in employing eligible persons.
(d) Maintain regular
contact with employers with the goal of keeping employers advised of eligible persons available for employment and keeping eligible persons advised of opportunities for employment.
(e) Assist in every possible way in improving working conditions and promoting the employment of eligible persons.
8304.4.
(a) There is hereby created in the State Treasury the Reparations Fund.(b) The fund may accept charitable donations, which shall be deposited into the Charitable Donations Account hereby established in the fund.
(c) Notwithstanding Section 13340, the Reparations Fund is hereby continuously appropriated without regard to fiscal years to the administrator for the purposes of this chapter.
SEC. 2.
Part 13.6.5 (commencing with Section 31020) is added to Division 2 of the Revenue and Taxation Code, to read:PART 13.6.5. Reparations Excise Taxes
31020.
(a) “Department” means the California Department of Tax and Fee Administration.(b) “Fund” means the Reparations Fund created by Section 8304.4 of the Government Code.
(c) “In this state” means within the exterior limits of California and includes all territory within these limits owned by or ceded to the United States of America.
(d) “Purchase” has the same meaning as defined in Section 6010.
(e) “Retailer” has the same meaning as defined in Section 6015.
(f) “Retail sale” has the
same meaning as defined in Section 6007.
(g) “Sales price” has the same meaning as defined in Section 6011.
(h) “Use” has the same meaning as defined in Section 6009.
31021.
(a) (1) Beginning July 1, 2025, a purchaser shall pay a tax on the purchase for use in this state of all of the following types of tangible personal property from a retailer at the rate of ____ percent of the sales price of the tangible personal property:(A) Gold bullion and gold coins.
(B) Tangible personal property that is comprised, in whole or in part, of cotton.
(C) A tobacco product.
(2) There is a rebuttable presumption that tangible personal property listed in subparagraph (A) is purchased for use in this state if
either of the following is true:
(A) The tangible personal property is purchased from a retailer physically located in this state.
(B) The address to which the retailer ships the purchased tangible personal property is located in this state.
(b) A retailer shall collect the tax imposed by this part from the purchaser at the time of the retail sale of the tangible personal property.
(c) A retailer shall include the amount of the tax imposed by this part in any price marketing on any sign or display inside or outside a licensed brick and mortar establishment.
(d) (1) The department shall collect the tax imposed by this part pursuant to the Fee Collection Procedures Law
(Part 30 (commencing with Section 55001)).
(2) For purposes of this part, the references in the Fee Collection Procedures Law to “fee” shall include the tax imposed by this part, and references to “feepayer” shall include any retailer liable for the payment, pursuant to subdivision (e), of the tax imposed by this part.
(3) A retailer may retain 1 percent of the tax imposed by this part as reimbursement for all costs associated with collection of the tax and shall transmit the remainder of the tax to the department pursuant to subdivision (e).
(e) (1) Except as provided in paragraph (3), the tax imposed by this part shall be due and payable quarterly on or before the last day of the month following each calendar quarter.
(2) (A) The payments shall be accompanied by a return filed by the retailer using electronic media on or before the last day of the month following each quarterly period for the preceding quarterly period.
(B) Returns shall be authenticated in a form, or pursuant to methods, as may be prescribed by the department.
(3) The department may require the payment of the tax imposed by this part and the filing of returns for other than quarterly periods.
(f) The tax that is required to be collected by the retailer and any amount unreturned to the purchaser that is not tax but was collected from the purchaser under the representation by the retailer that it was tax constitutes debts owed by the retailer to the state.
(g) A
retailer subject to the provisions of this part shall register for a permit with the department using electronic media and shall set forth the name under which it transacts, or intends to transact, business and any other information as the department may require.
(h) (1) The department may adopt regulations relating to the administration and enforcement of this part, including, but not limited to, collections, reporting, refunds, and appeals.
(2) (A) The department may adopt emergency regulations as necessary to implement this part.
(B) An emergency regulation adopted pursuant to this paragraph shall be adopted in accordance with Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, and, for purposes of that chapter,
including Section 11349.6 of the Government Code, the adoption of the regulation is an emergency and shall be considered by the Office of Administrative Law as necessary for the immediate preservation of the public peace, health and safety, and general welfare.
31022.
(a) (1) Beginning July 1, 2025, a purchaser shall pay a tax on the purchase for use in this state of all of the following types of tangible personal property from a retailer at the rate of ____ percent of the sales price of the tangible personal property:(A) Wine.
(B) Olives.
(C) Cane sugar and granulated sugar.
(D) Rice.
(E) Coffee beans.
(2) There is a rebuttable presumption that tangible personal
property listed in subparagraph (A) is purchased for use in this state if either of the following is true:
(A) The tangible personal property is purchased from a retailer physically located in this state.
(B) The address to which the retailer ships the purchased tangible personal property is located in this state.
(b) A retailer shall collect the tax imposed by this part from the purchaser at the time of the retail sale of the tangible personal property.
(c) A retailer shall include the amount of the tax imposed by this part in any price marketing on any sign or display inside or outside a licensed brick and mortar establishment.
(d) (1) The department shall collect
the tax imposed by this part pursuant to the Fee Collection Procedures Law (Part 30 (commencing with Section 55001)).
(2) For purposes of this part, the references in the Fee Collection Procedures Law to “fee” shall include the tax imposed by this part, and references to “feepayer” shall include any retailer liable for the payment, pursuant to subdivision (e), of the tax imposed by this part.
(3) A retailer may retain 1 percent of the tax imposed by this part as reimbursement for all costs associated with collection of the tax and shall transmit the remainder of the tax to the department pursuant to subdivision (e).
(e) (1) Except as provided in paragraph (3), the tax imposed by this part shall be due and payable quarterly on or before the last day of the month following each calendar
quarter.
(2) (A) The payments shall be accompanied by a return filed by the retailer using electronic media on or before the last day of the month following each quarterly period for the preceding quarterly period.
(B) Returns shall be authenticated in a form, or pursuant to methods, as may be prescribed by the department.
(3) The department may require the payment of the tax imposed by this part and the filing of returns for other than quarterly periods.
(f) The tax that is required to be collected by the retailer and any amount unreturned to the purchaser that is not tax but was collected from the purchaser under the representation by the retailer that it was tax constitutes debts owed by the retailer to the state.
(g) A retailer subject to the provisions of this part shall register for a permit with the department using electronic media and shall set forth the name under which it transacts, or intends to transact, business and any other information as the department may require.
(h) (1) The department may adopt regulations relating to the administration and enforcement of this part, including, but not limited to, collections, reporting, refunds, and appeals.
(2) (A) The department may adopt emergency regulations as necessary to implement this part.
(B) An emergency regulation adopted pursuant to this paragraph shall be adopted in accordance with Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2
of the Government Code, and, for purposes of that chapter, including Section 11349.6 of the Government Code, the adoption of the regulation is an emergency and shall be considered by the Office of Administrative Law as necessary for the immediate preservation of the public peace, health and safety, and general welfare.
(i) This section shall become operative only if Assembly Constitutional Amendment _ of the 2023–24 Regular Session is approved by the voters and takes effect.
31023.
For each retail sale of tangible personal property subject to a tax imposed by this part, a retailer shall provide a purchaser with a receipt or other document that sets out and separately identifies that tax and the amount paid by the purchaser.31024.
All revenues, interest, and penalties, less refunds and reimbursement to the department for reasonable administrative expenses, derived from a tax imposed by this part shall be deposited into the fund.SEC. 3.
The Legislature hereby finds and declares that this act serves the public purpose of undoing the harms associated with chattel slavery and does not constitute a gift of public funds within the meaning of Section 6 of Article XVI of the California Constitution.SEC. 4.
No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.This division shall be known, and may be cited, as the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000.
