Bill Text: CA AB1616 | 2021-2022 | Regular Session | Amended
Bill Title: Economic relief: California Emergency Relief Fund.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2022-04-21 - Re-referred to Com. on RLS. pursuant to Assembly Rule 96. [AB1616 Detail]
Download: California-2021-AB1616-Amended.html
|
Amended
IN
Assembly
April 07, 2022 |
CALIFORNIA LEGISLATURE—
2021–2022 REGULAR SESSION
Assembly Bill
No. 1616
| Introduced by Assembly Member Petrie-Norris |
January 06, 2022 |
An act to amend Section 1100 of the Public Contract Code, add Section 8654.12 to the Government Code, and to amend Section 17131.11 of the Revenue and Taxation Code, relating to public contracts. economic relief, and making an appropriation therefor.
LEGISLATIVE COUNSEL'S DIGEST
AB 1616, as amended, Petrie-Norris.
Public entities. Economic relief: California Emergency Relief Fund.
Existing law, the California Emergency Services Act, authorizes the Governor to proclaim a state of emergency when specified conditions of disaster or extreme peril to the safety of persons and property exist, and establishes the California Emergency Relief Fund to provide emergency resources and relief relating to state of emergency declarations proclaimed by the Governor. Existing law transferred $150,000,000 from the General Fund to the California Emergency Relief Fund for purposes relating to the COVID-19 emergency proclaimed by the Governor on March 4, 2020. Existing law authorizes the Controller to make a one-time payment to qualified recipients in a form and manner determined by the Franchise Tax Board.
This bill would require the Controller to issue
one-time cost-of-living payments of specified amounts to qualified recipients, as defined, from the California Emergency Relief Fund. The bill would transfer, from the General Fund to the California Emergency Relief Fund, the amount necessary for the Controller to issue these one-time payments, and would appropriate that amount from the California Emergency Relief Fund to the Controller for that purpose. The bill would require the Controller to issue the payments by June 15, 2023, to the extent practicable.
The Personal Income Tax Law imposes a tax on individual taxpayers measured by the taxpayer’s taxable income for the taxable year, but, in modified conformity with federal income tax laws, allows various exclusions from gross income. Existing law requires any bill authorizing a new tax expenditure, as defined to include exclusions from income, to contain, among other things, specific goals, purposes, and objectives that the tax expenditure will achieve, detailed
performance indicators, and data collection requirements.
This bill would exclude the one-time cost-of-living payments described above from the gross income of qualified recipients for personal income tax purposes. The bill would also include additional information required for any bill authorizing a new tax expenditure
This bill would make findings and declarations related to a gift of public funds.
The California Constitution generally prohibits the total annual appropriations subject to limitation of the state and each local government from exceeding the appropriations limit of the entity of government for the prior fiscal year, adjusted for the change in the cost of living and the change in population, and prescribes procedures for making adjustments to the appropriations limit. The California Constitution makes certain specified appropriations exempt from this total annual
limit if certain requirements are satisfied, including appropriations approved by a 2/3 vote of the Legislature relating to an emergency declared by the Governor.
This bill would provide that the appropriations made by the bill are appropriations relating to the state of emergency declared by the Governor on March 4, 2020, relating to the COVID-19 pandemic, and pursuant to the above-described constitutional provision are not subject to the annual appropriations limit set by the California Constitution when passed by a 2/3 vote of the Legislature.
Existing law generally regulates the formation and awarding, among other things, of a contract by a public entity and defines the term “public entity” for that purpose.
This bill would make a nonsubstantive change to that definition.
Digest Key
Vote:Bill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 8654.12 is added to the Government Code, to read:8654.12.
(a) It is the intent of the Legislature to provide emergency economic relief to individuals and households adversely impacted by the economic disruptions resulting from the COVID-19 emergency.(b) For purposes of this section, the following definitions apply:
(1) “Resident” shall have the same meaning as that term is defined in Section 17014 of the Revenue and Taxation Code.
(2) “Qualified recipient” means any of the following:
(A) An eligible individual as determined under Section 17052 of the Revenue and Taxation Code who filed a California
individual income tax return for the taxable year beginning on or after January 1, 2021, and before January 1, 2022, who has been allowed a tax credit pursuant to Section 17052 of the Revenue and Taxation Code for that taxable year on a return filed by October 15, 2022, and is a California resident on the date the Controller issues the payment pursuant to subdivision (d).
(B) An individual who would otherwise be an eligible individual pursuant to subparagraphs (A), except for subclause (II) of clause (ii), and (B) of paragraph (1) of subsection (c) of Section 32 of the Internal Revenue Code, as modified by paragraph (1) of subdivision (c) of Section 17052 of the Revenue and Taxation Code and who satisfies all of the following:
(i) Filed a California individual income tax return on or before October 15, 2022, except as provided in subparagraph (B), for the taxable year beginning on
or after January 1, 2021, and before January 1, 2022.
(ii) Included on the return described in clause (i) either their federal individual taxpayer identification number, or, if married, the federal individual taxpayer identification number of their spouse.
(iii) Is a California resident, as defined by Section 17014 of the Revenue and Taxation Code, on the date the Controller issues the payment pursuant to subdivision (d).
(C) An individual who did not file a tax return for the taxable year beginning on or after January 1, 2021, and before January 1, 2022, who would otherwise be a qualified recipient pursuant to subparagraph (A) or (B).
(c) An amount necessary to issue the cost-of-living assistance payments required by subdivision (d) is transferred from
the General Fund to the California Emergency Relief Fund, without regard to fiscal year, for purposes relating to the economic conditions caused by the COVID-19 emergency proclaimed by the Governor on March 4, 2020.
(d) (1) On or before June 15, 2023, to the extent practicable, the Controller shall issue a one-time cost-of-living assistance payment to each qualified recipient in the amount determined as follows:
(A) For an individual resident tax filer, including married filing separately, the amount of the one-time cost-of-living assistance payment shall be four hundred dollars ($400).
(B) For a qualified recipient that files a joint return with their spouse, the amount of the one-time cost-of-living assistance payment shall be eight hundred dollars ($800).
(C) For an individual who did not file a tax return and who would otherwise be a qualified recipient pursuant to subparagraph (A) or (B), the Controller shall determine the appropriate amount of the one-time cost-of-living assistance payment.
(2) The Controller shall issue the payments described in paragraph (1) in the form and manner determined by the Franchise Tax Board.
SEC. 2.
Section 17131.11 of the Revenue and Taxation Code is amended to read:17131.11.
(a) Gross income does not include any payments received by an individual pursuant to Section 8654.12 of the Government Code, or to Section 8150, 8150.2, or 8151 of the Welfare and Institutions Code.(b) This section shall remain in effect only until January 1, 2025, and as of that date is repealed.
SEC. 3.
For purposes of complying with Section 41 of the Revenue and Taxation Code, the Legislature finds and declares the following:(a) The purpose of the tax expenditure allowed by the amendment made to Section 17131.11 of the Revenue and Taxation Code by this act is to provide financial relief for Californians who may have been adversely impacted by the economic disruptions resulting from the COVID-19 emergency.
(b) In order to provide information on this tax expenditure, the Franchise
Tax Board shall, in consultation with the Controller, prepare a written report that shall include the number of qualified recipients who were issued a payment pursuant to Section 8654.12 of the Government Code. Notwithstanding Section 19542 of the Revenue and Taxation Code, the Franchise Tax Board shall provide the written report to the Legislature by December 1, 2023, pursuant to Section 9795 of the Government Code.
SEC. 4.
The economic disruptions caused by the COVID-19 emergency have had a significant and disproportionate negative impact on the financial health of many low- and middle-income Californians. Furthermore, the economic disruptions have caused many low- and middle-income families to face the loss of jobs, loss of income, increased costs, and increased risks to their personal health and safety. The Legislature hereby finds and declares that the payments required by Section 8654.12 of the Government Code serve the public purpose of providing financial relief for low- and middle-income Californians who may have been adversely impacted by the economic disruptions resulting from the COVID-19 emergency, and do not constitute gifts of public funds within the meaning of Section 6 of Article XVI of the California Constitution.SEC. 5.
This act provides for appropriations relating to the state of emergency declared by the Governor on March 4, 2020, relating to the COVID-19 pandemic, and pursuant to paragraph (2) of subdivision (c) of Section 3 of Article XIII B of the California Constitution are not subject to the annual appropriations limit set by Section 1 of Article XIII B of the California Constitution when passed by a two-thirds vote of the Legislature.“Public entity,” as used in this part, means the state, county, city, city and county, district, public authority, public agency, municipal corporation, or other political subdivision or public corporation in the state.
