Bill Text: CA AB2016 | 2025-2026 | Regular Session | Amended


Bill Title: State Water Resources Control Board: drinking water: hexavalent chromium removal.

Sponsorship: Partisan Bill (Republican 1)

Status: (Introduced) 2026-04-27 - In committee: Hearing postponed by committee. [AB2016 Detail]

Download: California-2025-AB2016-Amended.html

Amended  IN  Assembly  April 16, 2026

CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION

Assembly Bill
No. 2016


Introduced by Assembly Member Jeff Gonzalez

February 17, 2026


An act to amend Sections 17132.9 and 17132.10 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. add Section 116365.7 to the Health and Safety Code, relating to water, and making an appropriation therefor.


LEGISLATIVE COUNSEL'S DIGEST


AB 2016, as amended, Jeff Gonzalez. Personal Income Tax Law: exclusions: military retirement pay: survivor benefit pay. State Water Resources Control Board: drinking water: hexavalent chromium removal.
The California Safe Drinking Water Act provides for the operation of public water systems and imposes on the State Water Resources Control Board various duties and responsibilities for the regulation and control of drinking water in the State of California. The act requires the state board to adopt primary drinking water standards for contaminants in drinking water based upon specified criteria, and requires a primary drinking water standard to be established for hexavalent chromium.
This bill would appropriate $69,425,000 from the General Fund to the board for the purpose of removing hexavalent chromium from drinking water. The bill would require the board to make specified grants to specified entities to undertake construction or planning and design of facilities to remove hexavalent chromium from drinking water.

The Personal Income Tax Law, in conformity with federal income tax laws, defines “gross income” as income from whatever source derived, except as specifically excluded, and provides various exclusions from gross income, including, for taxable years beginning on or after January 1, 2025, and before January 1, 2030, an exclusion from gross income for retirement pay received by a qualified taxpayer, as defined, during the taxable year, not to exceed $20,000, from the federal government for service performed in the uniformed services, as defined, and an exclusion for income annuity payments received by a qualified taxpayer, as defined, not to exceed $20,000, pursuant to a United States Department of Defense Survivor Benefit Plan, as specified. Existing law defines “qualified taxpayer” for the purpose of these exclusions to mean taxpayers that satisfy specified income limitations.

This bill would amend the above-described exclusions to eliminate the income limitations for taxpayers and to eliminate the $20,000 limitation on income eligible for exclusion.

Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals that the tax expenditure will achieve, detailed performance indicators, and data collection requirements.

This bill also would include additional information required for any bill authorizing a new tax expenditure.

This bill would take effect immediately as a tax levy.

Vote: MAJORITY2/3   Appropriation: NOYES   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 Section 116365.7 is added to the Health and Safety Code, to read:

116365.7.
 (a) Sixty-nine million four hundred twenty-five thousand dollars ($69,425,000) is hereby appropriated from the General Fund to the State Water Resources Control Board for the purpose of removing hexavalent chromium from drinking water.
(b) The State Water Resources Control Board shall provide grants to undertake construction or planning and design of facilities to remove hexavalent chromium from drinking water as follows:
(1) A grant of nine million three hundred thousand dollars ($9,300,000) to the Coachella Valley Water District.
(2) A grant of ten million dollars ($10,000,000) to the Mission Springs Water District.
(3) A grant of three million dollars ($3,000,000) to the Indio Water Authority.
(4) A grant of two million dollars ($2,000,000) to the City of Watsonville.
(5) A grant of two million dollars ($2,000,000) to the Sunnyslope County Water District.
(6) A grant of eighteen million dollars ($18,000,000) to the Soquel Creek Water District.
(7) A grant of four million dollars ($4,000,000) to the City of Los Banos.
(8) A grant of twenty million dollars ($20,000,000) to the City of Coachella.
(9) A grant of one million one hundred twenty-five thousand dollars ($1,125,000) to the City of Banning.

SECTION 1.Section 17132.9 of the Revenue and Taxation Code is amended to read:
17132.9.

(a)For taxable years beginning on or after January 1, 2025, and before January 1, 2030, gross income shall not include retirement pay received by a taxpayer during the taxable year from the federal government for service in the uniformed services.

(b)For purposes of this section, “uniformed services” means the Armed Forces of the United States, the Army National Guard and the Air National Guard when engaged in active duty for training, inactive duty training, or full-time National Guard duty, the commissioned corps of the United States Public Health Service, and the National Oceanic and Atmospheric Administration Commissioned Officer Corps.

(c)This section shall remain in effect only until December 1, 2030, and as of that date is repealed.

SEC. 2.Section 17132.10 of the Revenue and Taxation Code is amended to read:
17132.10.

(a)For taxable years beginning on or after January 1, 2025, and before January 1, 2030, gross income shall not include annuity payments received by a taxpayer during the taxable year pursuant to a United States Department of Defense Survivor Benefit Plan.

(b)For purposes of this section, “United States Department of Defense Survivor Benefit Plan” or “plan” means a survivor benefit plan established pursuant to Sections 1447 to 1455, inclusive, of Title 10 of the United States Code.

(c)This section shall remain in effect only until December 1, 2030, and as of that date is repealed.

SEC. 3.

(a)For purposes of complying with the requirements of Section 41 of the Revenue and Taxation Code, with respect to the exclusions allowed by Section 17132.9 and 17132.10 of the Revenue and Taxation Code, as extended by this act, hereafter known as “the exclusions,” the Legislature finds and declares the following:

(1)The specific goals of the exclusions are as follows:

(A)To recognize the loss and sacrifice of our military families and give them the support that our community owes them.

(B)To provide some financial relief to families that have experienced not only the loss of a loved one, but also often the loss of the sole income of the family, and who are now trying to make ends meet on a portion of that original income.

(2)There is no available data to collect or report with respect to the exclusions.

(b)This section shall remain in effect only until December 1, 2030, and as of that date is repealed.

SEC. 4.

This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.

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