Bill Text: CA AB1842 | 2019-2020 | Regular Session | Amended

California Assembly Bill 1842 (Prior Session Legislation)

Bill Title: California Works and Recovery Act.

Spectrum: Partisan Bill (Democrat 14-0)

Status: (Introduced - Dead) 2020-05-14 - Re-referred to Com. on JUD. [AB1842 Detail]

Download: California-2019-AB1842-Amended.html

Amended IN Assembly May 13, 2020

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill

No. 1842

Introduced by Assembly ~~Member Salas~~ Members Salas, Arambula, Cooper, Frazier, Grayson, Quirk-Silva, Ramos, and Blanca Rubio
(Principal coauthor: Senator Galgiani)
(Coauthors: Assembly Members Eduardo Garcia, Gipson, Medina, Petrie-Norris, and Rodriguez)

January 06, 2020

~~An act to add Article 1.5 (commencing with Section 68710) to Chapter 2.5 of Title 8 of the Government Code, relating to judges.~~ An act to add Section 58506 to the Food and Agricultural Code, to amend Section 12098.5 of, and to add Section 18660.5 to, the Government Code, to add Article 10 (commencing with Section 130075) to Chapter 1 of Part 7 of Division 107 of, to add Chapter 17 (commencing with Section 50897) to Part 2 of Division 31 of, and to add Chapter 6 (commencing with Section 128590) to Part 3 of Division 107 of, the Health and Safety Code, to add Sections 4114.1 and 14306.7 to the Public Resources Code, to amend Sections 17059.2 and 23689 of, and to add Sections 17053 and 23682 to, the Revenue and Taxation Code, and to add Chapter 2.5 (commencing with Section 2050) to Division 3 of the Streets and Highways Code, relating to economic development.

LEGISLATIVE COUNSEL'S DIGEST

AB 1842, as amended, Salas. ~~Commission on Judicial Performance: complaints against judges.~~ California Works and Recovery Act.

(1) The Personal Income Tax Law and the Corporation Tax Law allow credits against the taxes imposed under those laws. Existing law allows an earned income tax credit under the Personal Income Tax Law, beginning on or after January 1, 2015, in modified conformity with federal income tax laws.
This bill would allow a small business or a nonprofit organization impacted by the COVID-19 pandemic, as those terms are defined, an earned income tax credit for each taxable year beginning on and after January 1, 2020, in an amount equal to 20% of the taxpayer’s annual revenue. The bill would specify that the credit is only operative for taxable years for which the Legislature appropriates from the General Fund to the Franchise Tax Board moneys to administer the credit.
The Personal Income Tax Law and the Corporation Tax Law also allow a credit against the taxes imposed under those laws, for each taxable year beginning on and after January 1, 2014, and before January 1, 2030, in an amount as provided in a written agreement between the GO-Biz and the taxpayer, agreed upon by the California Competes Tax Credit Committee, and based on specified factors, including the number of jobs the taxpayer will create or retain in the state and the amount of investment in the state by the taxpayer.
This bill would, upon appropriation by the Legislature from the General Fund to the GO-Biz to administer this provision, require GO-Biz, when determining whether to enter into a written agreement with a taxpayer for allocation periods beginning with the 2020–21 fiscal year, to consider the overall economic impact in this state of the COVID-19 pandemic to the taxpayer’s project or business.
(2) Existing law establishes the Office of Small Business Advocate within the Governor’s Office of Business and Economic Development, also known as GO-Biz, and prescribes the duties and functions of the Small Business Advocate, who is also the Director of the Office of Small Business Advocate. Among these duties, the director is to serve as the principal advocate in the state on behalf of small businesses and to represent the views and interests of small businesses before other state agencies whose policies and activities may affect small businesses.
This bill would require, upon appropriation by the Legislature from the General Fund, the Small Business Advocate to convene a task force to research and provide a report to the Legislature, on or after the effective date of this bill, regarding the regulations or regulatory areas that most negatively impact small businesses in the state.
(3) Existing law creates the Department of Human Resources, which succeeds to and is vested with all of the powers and duties exercised and performed by the Department of Personnel Administration. Existing law specifically grants the department the powers, duties, and authority necessary to operate the state civil service system in accordance with Article VII of the California Constitution, the Government Code, the merit principle, and applicable rules duly adopted by the State Personnel Board.
Existing law requires the State Personnel Board to prescribe rules consistent with a merit-based civil service system to govern classification, examinations, probationary periods, disciplinary actions, and other matters related to the board’s authority under the California Constitution.
This bill would require the State Personnel Board to prescribe rules to include as a factor for recruitment, outreach, and hiring whether the person can demonstrate that they have become unemployed due to the COVID-19 pandemic, as provided.
(4) Existing law establishes in the Natural Resources Agency the Department of Forestry and Fire Protection. Under existing the law, the department is responsible for, among other things, the fire protection, fire prevention, maintenance, and enhancement of the state’s forest, range, and brushland resources, and for maintaining an integrated staff to accomplish, among other things, fire protection and fire prevention activities as needed. Existing law requires the department, in accordance with a plan approved by the State Board of Forestry and Fire Protection, to, among other things, provide fire prevention and firefighting implements and apparatus, organize fire crews and patrols, and employ people to effect the plan.
This bill would, upon appropriation by the Legislature, require the department to establish new, or expand existing, entry-level positions within the department that are aimed at reducing and mitigating wildfire risk and to give priority, in hiring for these positions, to applicants who have lost their jobs due to the novel coronavirus, known as COVID-19, pandemic.
(5) Existing law establishes the California Conservation Corps and requires that young people participating in the corps program generally be engaged in projects that, among other things, preserve, maintain, and enhance environmentally important lands and waters. Existing law authorizes the Director of the California Conservation Corps to adopt criteria for selecting applicants for enrollment in the corps program.
This bill would authorize, notwithstanding any other law, a person who is over 25 years of age to serve as a corpsmember, require priority, in the selection of any corpsmember, to be given to applicants who have lost their jobs because of the novel coronavirus, known as COVID-19, pandemic, and require corpsmembers who join the corps because they lost their jobs due to the COVID-19 pandemic to be paid at least minimum wage pursuant to existing law. The bill would require these provisions to be implemented only upon appropriation by the Legislature.
(6) Existing law establishes the Office of Statewide Health Planning and Development in the California Health and Human Services Agency. The office is vested with all the duties, powers, purposes, responsibilities, and jurisdiction of the State Department of Public Health relating to health planning and research development.
Existing law establishes various scholarship and training programs that are managed by the office to improve access to health care. These programs include, among others, the Steven M. Thompson Physician Corps Loan Repayment Program, which provides for the repayment of prescribed educational loans obtained by a physician and surgeon who practices in a medically underserved area of the state. Existing law also requires the office to establish a nonprofit public benefit corporation known as the Health Professions Education Foundation to perform various duties with respect to implementing health professions scholarship and loan programs.
This bill would establish, upon appropriation by the Legislature, the Health Profession Economic Recovery Program to be administered by the office. The bill would require the program to accomplish various goals, including expanding the number of primary care physician and psychiatry residency positions and expanding and strengthening programs to recruit and prepare students from underrepresented and low-income backgrounds for health careers.
(7) Existing law authorizes a person or gleaner engaged in the business of processing, distributing, or selling an agricultural product to donate, free of charge, a product that is in a condition that it may be used as food for human consumption to a nonprofit charitable organization within the state. For this purpose, existing law authorizes the Secretary of Food and Agriculture to divert agricultural products to nonprofit organizations, including food banks, and authorizes the board of supervisors of a county to establish a surplus food collection and distribution system. In order to qualify as a food bank, existing law requires an organization to meet certain minimum standards.
This bill would require the Department of Food and Agriculture, upon appropriation by the Legislature from the General Fund, to create a grant program to provide grants to food banks to contract labor to harvest produce from farms willing to donate produce and to transport the produce to the food bank for distribution to the public.
(8) Under existing law, the Department of Housing and Community Development Department administers various grant programs to local governments to fund housing and community development projects.
This bill would require the department, upon appropriation by the Legislature from the General Fund, to create a grant program to award grants to local governments for shovel-ready housing and community development projects.
(9) Existing law vests the Department of Transportation with full possession and control of the state highway system and associated property. Existing law provides various sources of funding to local governments for transportation projects and operations.
This bill would require the department, upon appropriation by the Legislature from the General Fund, to create a grant program to award grants to local governments for shovel-ready transportation projects.
(10) The Alfred E. Alquist Hospital Facilities Seismic Safety Act of 1983 establishes a program of seismic safety building standards for certain hospitals. The act requires the office to observe the construction of, or addition to, a hospital building or the reconstruction or alteration of a hospital building, as it deems necessary to comply with the act for the protection of life and property.
This bill would establish, upon appropriation by the Legislature, the Economic Recovery Seismic Retrofitting Program to be administered by the office. The bill would require the office to provide loans to hospitals to fund seismic retrofit construction, as defined. The bill would also establish the Economic Recovery Seismic Retrofitting Program Fund to fund loans made under the program.
The California Constitution establishes the Commission on Judicial Performance and authorizes the commission to disqualify, suspend, retire, or censure a judge for specified acts of misconduct or for disability that seriously interferes with the performance of the judge’s duties or that is, or is likely to become, permanent. The California Constitution requires the commission to make rules for the investigation of judges and authorizes the commission to provide for the confidentiality of complaints to, and investigations by, the commission. Existing statutory law also governs procedures for the conduct of these investigations.
This bill would require the commission to establish and implement a procedure to permit the electronic filing of complaints against judges on or before January 1, 2022. The bill would require the commission to prepare and submit to each courthouse an informational bulletin describing the commission’s mission, the procedure for filing a complaint with the commission, and the definition of judicial misconduct, and to ensure that the informational bulletin is publicly displayed at each courthouse in this state. The bill would require the commission to report to the Legislature on or before May 1 of each year, until the requirements of the bill have been completed, regarding, among other things, the commission’s progress in implementing these requirements and in purchasing and implementing a new electronic case management system. The bill would also require the commission to hold at least one public meeting during each biennial rulemaking period.

Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO

The people of the State of California do enact as follows:

SECTION 1.
This act shall be known and may be cited as the California Works and Recovery Act.

SEC. 2.

Section 58506 is added to the Food and Agricultural Code, to read:

58506.
Upon appropriation by the Legislature from the General Fund, the department shall create a grant program to provide grants to food banks to contract labor to do both of the following:
(a) Harvest produce from farms willing to donate produce.
(b) Transport the produce to the food bank for distribution to the public.

SEC. 3.

Section 12098.5 of the Government Code is amended to read:

12098.5.

In addition to ~~his or her~~ the other responsibilities under this article, the advocate shall do the following:

(a) Be prepared for designation by the Office of Emergency Services to serve as an official liaison between small businesses impacted by a state-declared state of emergency and other government and nonprofit service providers.

(b) Assist in the state emergency recovery, response, and preparedness efforts related to small businesses, including microenterprises. The advocate’s efforts shall be coordinated and consistent with the Office of Emergency Services, the California Emergency Services Act, and the State of California Emergency Plan.

(c) Conduct at least one public meeting every year, in coordination with the appropriate state agencies, to share best practices for small business disaster preparedness. The meetings shall be held in consultation with regional and statewide small business organizations and shall take place in different locations throughout the state.

(d) Upon appropriation by the Legislature from the General Fund for costs associated with this subdivision, convene a task force to research and provide a report to the Legislature, on or after the effective date of the act adding this subdivision, regarding the regulations or regulatory areas that most negatively impact small businesses in the state. The report submitted pursuant to this subdivision shall be submitted in compliance with Section 9795.

SEC. 4.

Section 18660.5 is added to the Government Code, to read:

18660.5.
(a) The board, in establishing rules to implement and enforce the merit principle in the state civil service system, shall also prescribe rules to include as a factor for recruitment, outreach, and hiring whether the person can demonstrate that they have become unemployed due to the COVID-19 pandemic.
(b) For purposes of this section, a person can demonstrate that they have become unemployed due to the COVID-19 pandemic where they provide documentation of a situation that includes, but is not limited to, any of the following:
(1) The person could not attend work because they were diagnosed with the coronavirus (COVID-19).
(2) The person could not attend work in order to care for a child, parent, grandparent, grandchild, sibling, spouse, or domestic partner who is an at-risk person or was diagnosed with or quarantined because of COVID-19.
(3) The person could not attend work because they are the parent or guardian of a person whose school or care facility was closed because of COVID-19.
(4) The person was the owner of, or an employee of, a business that closed, either temporarily or permanently, because of COVID-19.

SEC. 5.

Chapter 17 (commencing with Section 50897) is added to Part 2 of Division 31 of the Health and Safety Code, to read:

CHAPTER 17. Economic Recovery Grants to Local Governments for Housing and Community Development
50897.
(a) The Legislature finds and declares both of the following:
(1) The economic disruptions caused by the COVID-19 pandemic have resulted in unprecedented job losses.
(2) A local government housing and community development grant program can help spur job growth and housing and community development in communities that are struggling because of the COVID-19 pandemic.
(b) Upon appropriation by the Legislature from the General Fund, the department shall create a grant program to award grants to local governments for shovel-ready housing and community development projects.
(c) The department shall administer the grant program and shall award grants based on the criteria set forth in subdivision (b) to local government applicants on a first-come-first-served basis.
(d) For purposes of this section, “shovel-ready” means those projects that are in either the final planning, environmental review, or permitting phase.

SEC. 6.

Chapter 6 (commencing with Section 128590) is added to Part 3 of Division 107 of the Health and Safety Code, to read:

CHAPTER 6. Health Profession Economic Recovery Program
128590.
There is hereby established the Health Profession Economic Recovery Program under the administration of the Office of Statewide Health Planning and Development.
128591.
The program shall accomplish, but is not limited to accomplishing, all of the following goals:
(a) Expanding the number of primary care physician and psychiatry residency positions, including at universities, hospitals, and clinics that have not previously operated residency programs, and to prioritizing the allocation of funds to residency programs in health professional shortage areas.
(b) Recruiting and training students from areas with a large disparity in patient-to-doctor ratios to practice in community health centers in the area from which each student was recruited.
(c) Expanding and strengthening loan repayment programs for primary care physicians and clinicians that agree to serve in health professional shortage areas.
(d) Expanding and strengthening programs to recruit and prepare students from underrepresented and low-income backgrounds for health careers.
(e) Developing a program to reimburse health care workers for fees relating to professional licensing.
128592.
This chapter shall be implemented only upon appropriation by the Legislature for this purpose.

SEC. 7.

Article 10 (commencing with Section 130075) is added to Chapter 1 of Part 7 of Division 107 of the Health and Safety Code, to read:

Article 10. Economic Recovery Seismic Retrofitting Program
130075.
There is hereby established the Economic Recovery Seismic Retrofitting Program under the administration of the Office of Statewide Health Planning and Development.
130076.
(a) The Economic Recovery Seismic Retrofitting Program shall provide loans to hospitals to fund seismic retrofit construction.
(b) “Seismic retrofit construction” means alteration performed on or after January 1, 2021, of a qualified building or its components to substantially mitigate seismic damage. “Seismic retrofit construction” includes, but is not limited to, all of the following:
(1) Anchoring the structure to the foundation.
(2) Bracing cripple walls.
(3) Bracing hot water heaters.
(4) Installing automatic gas shutoff valves.
(5) Repairing or reinforcing the foundation to improve the integrity of the foundation against seismic damage.
(6) Anchoring fuel storage.
(7) Strengthening a building’s lateral load resisting system.
(c) The Economic Recovery Seismic Retrofitting Program Fund is established in the State Treasury. Upon appropriation by the Legislature, moneys in the fund shall be expended by the office to fund loans made pursuant to this article.
130077.
This article shall be implemented only upon appropriation by the Legislature for this purpose.

SEC. 8.

Section 4114.1 is added to the Public Resources Code, to read:

4114.1.
Upon appropriation by the Legislature, the department shall establish new, or expand existing, entry-level positions within the department that are aimed at reducing and mitigating wildfire risk and give priority, in hiring for these positions, to applicants who have lost their jobs due to the novel coronavirus, known as COVID-19, pandemic.

SEC. 9.

Section 14306.7 is added to the Public Resources Code, to read:

14306.7.
(a) Notwithstanding any other law, a person who is over 25 years of age may be selected to serve as a corpsmember.
(b) Priority, in the selection of any corpsmember, shall be given to applicants who have lost their jobs because of the novel coronavirus, known as COVID-19, pandemic.
(c) Corpsmembers who join the corps because they lost their jobs due to the COVID-19 pandemic shall be paid at least minimum wage pursuant to Section 1182.12 of the Labor Code.
(d) This section shall be implemented only upon appropriation by the Legislature for its purposes.

SEC. 10.

Section 17053 is added to the Revenue and Taxation Code, to read:

17053.
(a) For each taxable year beginning on or after January 1, 2020, there shall be allowed against the “net tax,” as defined by Section 17039, an earned income tax credit in an amount equal to up to 20 percent of annual total revenue for a small business or a nonprofit organization impacted by the COVID-19 pandemic.
(b) For purposes of this section, the following terms have the following meanings:
(1) “Impacted by the COVID-19 pandemic” means the Franchise Tax Board has certified that the small business or nonprofit has provided sufficient documentation to the Franchise Tax Board that the revenue of the small business or nonprofit has declined due to the economic effects of the COVID-19 pandemic.
(2) “Nonprofit organization” means a nonprofit organization incorporated pursuant to Part 2 (commencing with Section 5110) of Division 2 of Title 1 of the Corporations Code.
(3) “Small business” has the same meaning as that term is defined in Section 14837 of the Government Code.
(c) The credit allowed by this section shall only be operative for taxable years for which the Legislature appropriates from the General Fund to the Franchise Tax Board moneys to administer the credit.

SEC. 11.

Section 17059.2 of the Revenue and Taxation Code is amended to read:

17059.2.

(a) (1) For each taxable year beginning on and after January 1, 2014, and before January 1, 2030, there shall be allowed as a credit against the “net tax,” as defined in Section 17039, an amount as determined by the committee pursuant to paragraph (2) and approved pursuant to Section 18410.2.

(2) The credit under this section shall be allocated by GO-Biz with respect to the 2013–14 fiscal year through and including the 2022–23 fiscal year. The amount of credit allocated to a taxpayer with respect to a fiscal year pursuant to this section shall be as set forth in a written agreement between GO-Biz and the taxpayer and shall be based on the following factors:

(A) The number of jobs the taxpayer will create or retain in this state.

(B) The compensation paid or proposed to be paid by the taxpayer to its employees, including wages and fringe benefits.

(D) The extent of unemployment or poverty in the area according to the United States Census in which the taxpayer’s project or business is proposed or located.

(E) The incentives available to the taxpayer in this state, including incentives from the state, local government, and other entities.

(F) The incentives available to the taxpayer in other states.

(G) The duration of the proposed project and the duration the taxpayer commits to remain in this state.

(H) The overall economic impact in this state of the taxpayer’s project or business.

(I) The strategic importance of the taxpayer’s project or business to the state, region, or locality.

(J) The opportunity for future growth and expansion in this state by the taxpayer’s business.

(K) The extent to which the anticipated benefit to the state exceeds the projected benefit to the taxpayer from the tax credit.

(L) For a credit allocated beginning with the 2018–19 fiscal year, the training opportunities offered by the taxpayer to its employees.

(M) Upon appropriation to GO-Biz for the costs of administering this subparagraph, for a credit allocated beginning with the 2020–21 fiscal year, the overall economic impact in this state of the COVID-19 pandemic to the taxpayer’s project or business.

(3) The written agreement entered into pursuant to paragraph (2) shall include:

(A) Terms and conditions that include the taxable year or years for which the credit allocated shall be allowed, a minimum compensation level, and a minimum job retention period.

(B) Provisions indicating whether the credit is to be allocated in full upon approval or in increments based on mutually agreed upon milestones when satisfactorily met by the taxpayer.

(C) Provisions that allow the committee to recapture the credit, in whole or in part, if the taxpayer fails to fulfill the terms and conditions of the written agreement.

(b) For purposes of this section:

(1) “Committee” means the California Competes Tax Credit Committee established pursuant to Section 18410.2.

(2) “GO-Biz” means the Governor’s Office of Business and Economic Development.

(1) Give priority to a taxpayer whose project or business is located or proposed to be located in an area of high unemployment or poverty.

(2) Negotiate with a taxpayer the terms and conditions of proposed written agreements that provide the credit allowed pursuant to this section to a taxpayer.

(3) Provide the negotiated written agreement to the committee for its approval pursuant to Section 18410.2.

(4) Inform the Franchise Tax Board of the terms and conditions of the written agreement upon approval of the written agreement by the committee.

(5) Inform the Franchise Tax Board of any recapture, in whole or in part, of a previously allocated credit upon approval of the recapture by the committee.

(6) Post on its ~~Internet Web site~~ internet website all of the following:

(A) The name of each taxpayer allocated a credit pursuant to this section.

(B) The estimated amount of the investment by each taxpayer.

(D) The amount of the credit allocated to the taxpayer.

(E) The amount of the credit recaptured from the taxpayer, if applicable.

(F) The primary location where the taxpayer has committed to increasing the net number of jobs or make investments. The primary location shall be listed by city or, in the case of unincorporated areas, by county.

(G) Information that identifies each tax credit award that was given a priority for being located in a high unemployment or poverty area, pursuant to paragraph (1).

(7) For allocation periods beginning with the 2018–19 fiscal year, when determining whether to enter into a written agreement with a taxpayer pursuant to this section, GO-Biz shall consider the extent to which the credit will influence the taxpayer’s ability, willingness, or both, to create jobs in this state that might not otherwise be created in the state by the taxpayer or any other taxpayer. GO-Biz may also consider other factors, including, but not limited to, the following:

(A) The financial solvency of the taxpayer and the taxpayer’s ability to finance its proposed expansion.

(B) The taxpayer’s current and prior compliance with federal and state laws.

(D) The reasonableness of the fee arrangement between the taxpayer and any third party providing any services related to the credit allowed pursuant to this section.

(E) Any other factors GO-Biz deems necessary to ensure that the administration of the credit allowed pursuant to this section is a model of accountability and transparency and that the effective use of the limited amount of credit available is maximized.

(d) For purposes of this section, the Franchise Tax Board shall do all of the following:

(1) (A) Except as provided in subparagraph (B), review the books and records of all taxpayers allocated a credit pursuant to this section to ensure compliance with the terms and conditions of the written agreement between the taxpayer and GO-Biz.

(B) In the case of a taxpayer that is a “small business,” as defined in Section 17053.73, review the books and records of the taxpayer allocated a credit pursuant to this section to ensure compliance with the terms and conditions of the written agreement between the taxpayer and GO-Biz when, in the sole discretion of the Franchise Tax Board, a review of those books and records is appropriate or necessary in the best interests of the state.

(2) Notwithstanding Section 19542, notify GO-Biz of a possible breach of the written agreement by a taxpayer and provide detailed information regarding the basis for that determination.

(e) In the case where the credit allowed under this section exceeds the “net tax,” as defined in Section 17039, for a taxable year, the excess credit may be carried over to reduce the “net tax” in the following taxable year, and succeeding five taxable years, if necessary, until the credit has been exhausted.

(f) Any recapture, in whole or in part, of a credit approved by the committee pursuant to Section 18410.2 shall be treated as a mathematical error appearing on the return. Any amount of tax resulting from that recapture shall be assessed by the Franchise Tax Board in the same manner as provided by Section 19051. The amount of tax resulting from the recapture shall be added to the tax otherwise due by the taxpayer for the taxable year in which the committee’s recapture determination occurred.

(g) (1) The aggregate amount of credit that may be allocated in any fiscal year pursuant to this section and Section 23689 shall be an amount equal to the sum of subparagraphs (A), (B), and (C), less the amount specified in subparagraphs (D) and (E):

(A) Thirty million dollars ($30,000,000) for the 2013–14 fiscal year, one hundred fifty million dollars ($150,000,000) for the 2014–15 fiscal year, two hundred million dollars ($200,000,000) for each fiscal year from 2015–16 to 2017–18, inclusive, and one hundred eighty million dollars ($180,000,000) for each fiscal year from 2018–19 to 2022–23, inclusive.

(B) The unallocated credit amount, if any, from the preceding fiscal year.

(D) The amount estimated by the Director of Finance, in consultation with the Franchise Tax Board and the California Department of Tax and Fee Administration, to be necessary to limit the aggregation of the estimated amount of exemptions claimed pursuant to Section 6377.1 and of the amounts estimated to be claimed pursuant to this section and Sections 17053.73, 23626, and 23689 to no more than seven hundred fifty million dollars ($750,000,000) for either the current fiscal year or the next fiscal year.

(i) The Director of Finance shall notify the Chairperson of the Joint Legislative Budget Committee of the estimated annual allocation authorized by this paragraph. Any allocation pursuant to these provisions shall be made no sooner than 30 days after written notification has been provided to the Chairperson of the Joint Legislative Budget Committee and the chairpersons of the committees of each house of the Legislature that consider appropriations, or not sooner than whatever lesser time the Chairperson of the Joint Legislative Budget Committee, or ~~his or her~~ their designee, may determine.

(ii) In no event shall the amount estimated in this subparagraph be less than zero dollars ($0).

(E) (i) For the 2015–16 fiscal year and each fiscal year thereafter, the amount of credit estimated by the Director of Finance to be allowed to all qualified taxpayers for that fiscal year pursuant to subparagraph (A) or subparagraph (B) of paragraph (1) of subdivision (c) of Section 23636.

(ii) If the amount available per fiscal year pursuant to this section and Section 23689 is less than the aggregate amount of credit estimated by the Director of Finance to be allowed to qualified taxpayers pursuant to subparagraph (A) or subparagraph (B) of paragraph (1) of subdivision (c) of Section 23636, the aggregate amount allowed pursuant to Section 23636 shall not be reduced and, in addition to the reduction required by clause (i), the aggregate amount of credit that may be allocated pursuant to this section and Section 23689 for the next fiscal year shall be reduced by the amount of that deficit.

(iii) It is the intent of the Legislature that the reductions specified in this subparagraph of the aggregate amount of credit that may be allocated pursuant to this section and Section 23689 shall continue if the repeal dates of the credits allowed by this section and Section 23689 are removed or extended.

(2) (A) In addition to the other amounts determined pursuant to paragraph (1), the Director of Finance may increase the aggregate amount of credit that may be allocated pursuant to this section and Section 23689 by up to twenty-five million dollars ($25,000,000) per fiscal year through the 2022–23 fiscal year. The amount of any increase made pursuant to this paragraph, when combined with any increase made pursuant to paragraph (2) of subdivision (g) of Section 23689, shall not exceed twenty-five million dollars ($25,000,000) per fiscal year through the 2022–23 fiscal year.

(B) It is the intent of the Legislature that the Director of Finance increase the aggregate amount under subparagraph (A) in order to mitigate the reduction of the amount available due to the credit allowed to all qualified taxpayers pursuant to subparagraph (A) or (B) of paragraph (1) of subdivision (c) of Section 23636.

(3) Each fiscal year through the 2017–18 fiscal year, 25 percent of the aggregate amount of the credit that may be allocated pursuant to this section and Section 23689 shall be reserved for small business, as defined in Section 17053.73 or 23626.

(4) Each fiscal year, no more than 20 percent of the aggregate amount of the credit that may be allocated pursuant to this section shall be allocated to any one taxpayer.

(h) GO-Biz may prescribe rules and regulations as necessary to carry out the purposes of this section. Any rule or regulation prescribed pursuant to this section may be by adoption of an emergency regulation in accordance with Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.

(i) A written agreement between GO-Biz and a taxpayer with respect to the credit authorized by this section shall comply with existing law on the date the agreement is executed.

(j) (1) Upon the effective date of this section, the Department of Finance shall estimate the total dollar amount of credits that will be claimed under this section with respect to each fiscal year from the 2013–14 fiscal year to the 2029–30 fiscal year, inclusive.

(2) The Franchise Tax Board shall annually provide to the Joint Legislative Budget Committee, by no later than March 1, a report of the total dollar amount of the credits claimed under this section with respect to the relevant fiscal year. The report shall compare the total dollar amount of credits claimed under this section with respect to that fiscal year with the department’s estimate with respect to that same fiscal year. If the total dollar amount of credits claimed for the fiscal year is less than the estimate for that fiscal year, the report shall identify options for increasing annual claims of the credit so as to meet estimated amounts.

(k) (1) Notwithstanding Section 19542, on or before October 1, 2019, GO-Biz shall provide to the Legislative Analyst’s Office a report on the credits allocated pursuant to this section for the 2018–19 fiscal year. This report shall include the following:

(A) A detailed description of the methodology used to evaluate applications and allocate credits as described by Section 8030 of Title 10 of the California Code of Regulations, or any successor regulation.

(B) For each taxpayer that applies for a credit, a list that includes the applicant’s name, “aggregate employee compensation,” “aggregate investment,” and “cost-benefit ratio” as those terms are defined for purposes of, or used in, Section 8030 of Title 10 of the California Code of Regulations.

(C) For each written agreement recommended to the committee pursuant to this section, a detailed justification for GO-Biz’s decision to enter into a written agreement with the taxpayer.

(2) (A) On or before April 1, 2020, the Legislative Analyst’s Office shall provide to the Assembly Committee on Revenue and Taxation, the Senate Committee on Governance and Finance, the budget committees of both houses, and the public with a report evaluating the report required by paragraph (1).

(B) GO-Biz, the Franchise Tax Board, and all other relevant state agencies shall provide additional information, as specified by the Legislative Analyst’s Office, as needed to research the reports required by this subdivision.

(C) Any information received by the Legislative Analyst’s Office pursuant to this subdivision, that has not otherwise been made public, shall be considered confidential taxpayer information subject to Section 19542.

(D) The Legislative Analyst’s Office may publish statistics in conjunction with the reports required by this subdivision that are derived from information provided to the Legislative Analyst’s Office pursuant to this section, if the published statistics are aggregated to prevent the identification of particular taxpayers under this part.

(l) This section is repealed on December 1, 2030.

SEC. 12.

Section 23682 is added to the Revenue and Taxation Code, to read:

23682.
(a) For each taxable year beginning on or after January 1, 2020, there shall be allowed against the “net tax,” as defined by Section 23036, an earned income tax credit in an amount equal to up to 20 percent of annual total revenue for a small business or a nonprofit organization impacted by the COVID-19 pandemic.
(b) For purposes of this section, the following terms have the following meanings:
(1) “Impacted by the COVID-19 pandemic” means the Franchise Tax Board has certified that the small business or nonprofit has provided sufficient documentation to the Franchise Tax Board that the revenue of the small business or nonprofit has declined due to the economic effects of the COVID-19 pandemic.
(2) “Nonprofit organization” means a nonprofit organization incorporated pursuant to Part 2 (commencing with Section 5110) of Division 2 of Title 1 of the Corporations Code.
(3) “Small business” has the same meaning as that term is defined in Section 14837 of the Government Code.
(c) The credit allowed by this section shall only be operative for taxable years for which the Legislature appropriates from the General Fund to the Franchise Tax Board moneys to administer the credit.

SEC. 13.

Section 23689 of the Revenue and Taxation Code is amended to read:

23689.

(a) (1) For each taxable year beginning on and after January 1, 2014, and before January 1, 2030, there shall be allowed as a credit against the “tax,” as defined in Section 23036, an amount as determined by the committee pursuant to paragraph (2) and approved pursuant to Section 18410.2.