Bill Text: CA SB1341 | 2021-2022 | Regular Session | Amended

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Bill Title: Homeless pupils: California Success, Opportunity, and Academic Resilience (SOAR) Guaranteed Income Program.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Failed) 2022-10-24 - Returned to Chief Clerk pursuant to Joint Rule 62(a). [SB1341 Detail]

Download: California-2021-SB1341-Amended.html

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Amended  IN  Senate  May 19, 2022

Amended  IN  Senate  March 16, 2022

CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Senate Bill

No. 1341

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Introduced by Senator Cortese

February 18, 2022

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An act to add and repeal Chapter 5.7 (commencing with Section 48870) of Part 27 of Division 4 of Title 2 Section 69508.7 of the Education Code, to add and repeal Section 17141.6 of the Revenue and Taxation Code, and to add and repeal Section 10007 of, and to add and repeal Chapter 8 9 (commencing with Section 8280) of Division 8 of, the Welfare and Institutions Code, relating to homeless pupils.

LEGISLATIVE COUNSEL'S DIGEST

SB 1341, as amended, Cortese. Homeless pupils: California Success, Opportunity, and Academic Resilience (SOAR) Guaranteed Income Program.

(1) Existing law establishes a system of public elementary and secondary education in this state. Under this system, local educational agencies throughout the state provide instruction and other services to pupils in kindergarten and grades 1 to 12, inclusive. Pupils Existing law establishes various programs to provide assistance to homeless youth, including, among others, homeless youth emergency service pilot projects and the Runaway Youth and Families in Crisis Projects. Under other existing law, pupils who seek to continue their education in postsecondary educational institutions, and who wish to apply for financial aid, are generally required to apply for this aid through certain standardized forms, which, for most pupils, include the Free Application for Federal Student Aid and, for certain pupils, include the California Dream Act application.

This bill, until August 1, 2024, and subject to an appropriation by the Legislature for this purpose, would require the State Department of Social Services to establish the California Success, Opportunity, and Academic Resilience (SOAR) Guaranteed Income Program. The program would award public school pupils who are in grade 12, have completed a Free Application for Federal Student Aid or California Dream Act application, and are homeless children or youths a guaranteed income of $1,000 each month for at least 4 5 months from April 1, 2023, to August 1, 2023, inclusive, as provided. The bill would establish the California SOAR Guaranteed Income Fund as the initial depository of all moneys appropriated, donated, or otherwise received for the program, and upon appropriation by the Legislature, would provide moneys in the fund to eligible participants. Under the bill, the award would not be considered financial aid or income for financial aid or other purposes and would not negatively impact the award recipient’s eligibility for future financial aid.

(2) The Personal Income Tax Law imposes taxes based upon taxable income at specified rates. Existing law, in modified conformity with federal income tax law, generally defines “gross income” as income from whatever source derived, except as specifically excluded. Existing law, beginning on or after January 1, 2015, in modified conformity with federal income tax law, allows an earned income tax credit, the California Earned Income Tax Credit, against personal income tax. The Personal Income Tax Law also allows, for each taxable year beginning on or after January 1, 2019, a young child tax credit against the taxes imposed under that law.

This bill, for the taxable year beginning on January 1, 2023, would exclude from gross income, for purposes of the personal income tax, any amount received as an award pursuant to the California SOAR Guaranteed Income Program. The bill, for the taxable year beginning on January 1, 2023, would additionally provide that the amount awarded is not earned income for purposes of eligibility for the California Earned Income Tax Credit. Credit or the young child tax credit.

(3) Existing law establishes various public social services programs to provide eligible recipients with certain benefits, including, but not limited to, cash assistance under the California Work Opportunity and Responsibility to Kids (CalWORKs) program, nutrition assistance under the CalFresh program, and health care services under the Medi-Cal program. Under existing law, those programs, among others, are in part federally funded and governed by federal eligibility criteria, including specified income or resource limits.

This bill, until August 1, 2024, bill would prohibit any award received by a student through the California SOAR Guaranteed Income Program from being considered income or resources for purposes of determining the student’s, or any member of their household’s, eligibility for benefits or assistance, or the amount or extent of benefits or assistance, under any state or local means-tested program, including certain public social services programs. The bill would condition implementation of this provision on not conflicting with federal law, or receipt of any necessary federal waivers or exemptions and the availability of any applicable federal financial participation, as specified.

The bill, until August 1, 2024,

This bill would require the unspecified administering entity, State Department of Social Services, in consultation with stakeholders and the Legislature, to identify the CalWORKs, CalFresh, and Medi-Cal programs and any other state program that implements a federal means-tested program and that would require an exemption or waiver. The bill, until August 1, 2024, bill would require a state department or agency that administers a program identified by the unspecified administering entity, State Department of Social Services or by the department or agency itself, to approve an exemption or waiver or to seek one from the federal government. If the state fails to receive the necessary federal exemption or waiver, the bill would authorize the unspecified administering entity State Department of Social Services to consider alternatives to prevent adverse consequences for California SOAR Guaranteed Income Program participants.

Digest Key

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

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Bill Text

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

SECTION 1.

 Section 69508.7 is added to the Education Code, to read:

69508.7.

 (a) An amount received by an individual as an award through the California Success, Opportunity, and Academic Resilience (SOAR) Guaranteed Income Program established pursuant to Chapter 9 (commencing with Section 8280) of Division 8 of the Welfare and Institutions Code shall not be considered financial aid or income for financial aid or other purposes and shall not negatively impact the award recipient’s eligibility for future financial aid. A financial aid administrator for an institution of higher education is highly encouraged to exercise the discretion described in Section 479A of the federal Higher Education Act of 1965, as amended (20 U.S.C. 1001 et seq.), to exclude as income the amount received through the California SOAR Guaranteed Income Program when calculating an award recipient’s financial aid package for the affected academic year.

(b) This section shall become inoperative on July 1, 2026, and, as of January 1, 2027, is repealed.

SEC. 2.

 Section 17141.6 is added to the Revenue and Taxation Code, to read:

17141.6.

 (a) For the taxable year beginning on January 1, 2023, gross income does not include any amount received as an award pursuant to the California Success, Opportunity, and Academic Resilience (SOAR) Guaranteed Income Program established pursuant to Chapter 9 (commencing with Section 8280) of Division 8 of the Welfare and Institutions Code.

(b) For the taxable year beginning on January 1, 2023, any amount received as an award pursuant to the California SOAR Guaranteed Income Program established pursuant to Chapter 9 (commencing with Section 8280) of Division 8 of the Welfare and Institutions Code shall not be considered earned income for purposes of eligibility for the California Earned Income Tax Credit pursuant to Section 17052 or the young child tax credit pursuant to Section 17052.1.

(c) This section shall become inoperative on July 1, 2026, and, as of January 1, 2027, is repealed.

SEC. 3.

 Chapter 9 (commencing with Section 8280) is added to Division 8 of the Welfare and Institutions Code, to read:

CHAPTER  9. California SOAR Guaranteed Income Program

8280.

 This chapter shall be known, and may be cited, as the California Success, Opportunity, and Academic Resilience (SOAR) Guaranteed Income Program.

8281.

 As used in this chapter, the following definitions apply:

(a) “Award” means guaranteed income provided to an eligible participant for five months pursuant to this chapter.

(b) “Department” means the State Department of Social Services.

(c) “Eligible participant” means a public school pupil who is in grade 12, has completed a Free Application for Federal Student Aid or California Dream Act Application, and is a homeless child or youth, as defined in subsection (2) of Section 725 of the federal McKinney-Vento Homeless Assistance Act (42 U.S.C. Sec. 11434a(2)).

(d) “Fund” means the California SOAR Guaranteed Income Fund established pursuant to this chapter.

(e) “Guaranteed income” means unconditional monetary payments issued monthly with the intention of ensuring the economic security of recipients.

(f) “Program” means the California Success, Opportunity, and Academic Resilience (SOAR) Guaranteed Income Program established pursuant to this chapter.

8282.

 (a) Subject to an appropriation by the Legislature for purposes of this chapter, the department shall establish the California SOAR Guaranteed Income Program. Under the program, an eligible participant shall receive a guaranteed income of one thousand dollars ($1,000) each month from April 1, 2023, to August 1, 2023, inclusive, with payments made on April 1, 2023, May 1, 2023, June 1, 2023, July 1, 2023, and August 1, 2023. The program may be extended by statute or by the department.

(b) The California SOAR Guaranteed Income Fund is hereby established as the initial depository of all moneys appropriated, donated, or otherwise received for the program. Upon appropriation by the Legislature, the department shall distribute moneys in the fund to eligible participants in accordance with this chapter. The department shall administer the fund.

(c) For purposes of administering the program, the department may accept in-kind contributions, including, but not limited to, financial mentorship services for participants.

8283.

 The department shall work with at least one independent, research-based institution to identify existing, and establish new, program outcome measurements. These measurements shall inform an evaluation report. The department shall submit the evaluation report to the Legislature, pursuant to Section 9795 of the Government Code, upon the conclusion of the program. The evaluation report shall include educational and economic security outcomes for award recipients, models used, and measures specific to the objectives of the program. Notwithstanding any other law, the department may accept and, upon appropriation, expend funds from nongovernment sources for purposes of preparing the evaluation report, a longitudinal study of the program that is in addition to the report, or both.

8284.

 (a) Notwithstanding any other law, any amount received by an individual as an award through the program shall not be considered income or resources for purposes of determining the individual’s, or any member of their household’s, eligibility for benefits or assistance, or the amount or extent of benefits or assistance, under any state or local means-tested program. With respect to a state or local program, this subdivision shall be implemented only to the extent that it does not conflict with federal law relating to that program, or to the extent that any necessary waivers or exemptions are obtained pursuant to subdivision (b) and that federal financial participation, if applicable, is available and is not otherwise jeopardized.

(b) The department, in consultation with stakeholders and the Legislature, shall identify the California Work Opportunity and Responsibility to Kids (CalWORKs) program, the CalFresh program, the Medi-Cal program, and any other state program that implements a federal means-tested program and that would require an exemption or waiver in order for an award described in subdivision (a) to be excluded from consideration as income or resources for purposes of the federal program. Notwithstanding any other law, a state department or agency that administers a program identified by the department or that the state department or agency itself identifies shall, if possible, approve an exemption or waiver, or provide any other authority deemed necessary by the state department or agency, to exclude the award from consideration as income or resources for purposes of the federal program, or, if the state department or agency does not have that authority, shall seek a federal waiver or exemption. The state’s failure to be granted a federal exemption or waiver, as described in this subdivision, shall not affect the ability of the department to administer the California SOAR Guaranteed Income Program, and the department may consider alternatives to prevent adverse consequences for participants, in consultation with the Legislature and stakeholders.

8285.

 The department shall be responsible for promulgating rules and regulations governing the administration of the program and fund.

8286.

 This chapter shall become inoperative on July 1, 2026, and, as of January 1, 2027, is repealed.

SEC. 4.

 Section 10007 is added to the Welfare and Institutions Code, to read:

10007.

 (a) Subject to the limitations and conditions described in Section 8284, any amount received by an individual as an award through the California SOAR Guaranteed Income Program established pursuant to Chapter 9 (commencing with Section 8280) of Division 8 shall not be considered income or resources for purposes of determining the individual’s, or any member of their household’s, eligibility for benefits or assistance, or the amount or extent of benefits or assistance, under a state or local means-tested public social services program described in this division.

(b) This section shall become inoperative on July 1, 2026, and, as of January 1, 2027, is repealed.

SECTION 1.Chapter 5.7 (commencing with Section 48870) is added to Part 27 of Division 4 of Title 2 of the Education Code, to read:

5.7.California SOAR Guaranteed Income Program

48870.

This chapter shall be known, and may be cited, as the California Success, Opportunity, and Academic Resilience (SOAR) Guaranteed Income Program.

48871.

As used in this chapter, the following definitions apply:

(a)“Administrator” means ____.

(b)“Award” means guaranteed income provided to an eligible participant for at least four months pursuant to this chapter.

(c)“Guaranteed income” means unconditional monetary payments issued monthly with the intention of ensuring the economic security of recipients.

(d)“Eligible participant” means a public school pupil who is in grade 12, has completed a Free Application for Federal Student Aid or California Dream Act application, and is a homeless child or youth, as defined in subsection (2) of Section 725 of the federal McKinney-Vento Homeless Assistance Act (42 U.S.C. Sec. 11434a(2)).

(e)“Fund” means the California SOAR Guaranteed Income Fund established pursuant to this chapter.

(f)“Program” means the California Success, Opportunity, and Academic Resilience (SOAR) Guaranteed Income Program established pursuant to this chapter.

48872.

(a)Subject to an appropriation by the Legislature for purposes of this chapter, the administrator shall establish the California SOAR Guaranteed Income Program. Under the program, an eligible participant shall receive a guaranteed income of ____ dollars ($____) each month from April 1, 2023, to August 1, 2023, inclusive, unless extended by a statute or the administrator.

(b)The California SOAR Guaranteed Income Fund is hereby established as the initial depository of all moneys appropriated, donated, or otherwise received for the program. Upon appropriation by the Legislature, the administrator shall distribute moneys in the fund to eligible participants in accordance with this chapter. The administrator shall administer the fund.

(c)For purposes of administering the program, the administrator may accept in-kind contributions, including, but not limited to, financial mentorship services for participants.

48873.

An award shall not be considered financial aid. An award shall not be considered income for financial aid or other purposes and shall not negatively impact the award recipient’s eligibility for future financial aid. The Student Aid Commission shall seek federal waivers or exemptions in order for the award to be excluded from consideration as expected financial assistance for purposes of state and federal student financial aid should the program be extended through the 2023–24 academic year.

48874.

The administrator shall work with at least one independent, research-based institution to identify existing, and establish new, program outcome measurements. These measurements shall inform an evaluation report. The administrator shall submit the evaluation report to the Legislature, pursuant to Section 9795 of the Government Code, upon the conclusion of the program. The evaluation report shall include educational and economic security outcomes for award recipients, models used, and measures specific to the objectives of the program. Notwithstanding any other law, the administrator may accept and expend funds from nongovernment sources for purposes of preparing the evaluation report, a longitudinal study of the program that is in addition to the report, or both.

48875.

The administrator shall be responsible for promulgating rules and regulations governing the administration of the program and fund.

48876.

This chapter shall become inoperative on August 1, 2024, and, as of January 1, 2025, is repealed.

SEC. 2.Section 17141.6 is added to the Revenue and Taxation Code, to read:

17141.6.

(a)For the taxable year beginning on January 1, 2023, gross income does not include any amount received as an award pursuant to the California Success, Opportunity, and Academic Resilience (SOAR) Guaranteed Income Program established pursuant to Chapter 5.7 (commencing with Section 48870) of Part 27 of Division 4 of Title 2 of the Education Code.

(b)For the taxable year beginning on January 1, 2023, any amount received as an award pursuant to the California SOAR Guaranteed Income Program established pursuant to Chapter 5.7 (commencing with Section 48870) of Part 27 of Division 4 of Title 2 of the Education Code shall not be considered earned income for purposes of eligibility for the California Earned Income Tax Credit pursuant to Section 17052.

(c)This section shall become inoperative on August 1, 2024, and, as of January 1, 2025, is repealed.

SEC. 3.Chapter 8 (commencing with Section 8280) is added to Division 8 of the Welfare and Institutions Code, to read:

8.Awards Under the California SOAR Guaranteed Income Program

8280.

(a)Notwithstanding any other law, any amount received by an individual as an award through the California Success, Opportunity, and Academic Resilience (SOAR) Guaranteed Income Program established pursuant to Chapter 5.7 (commencing with Section 48870) of Part 27 of Division 4 of Title 2 of the Education Code shall not be considered income or resources for purposes of determining the individual’s, or any member of their household’s, eligibility for benefits or assistance, or the amount or extent of benefits or assistance, under any state or local means-tested program. With respect to a state or local program, this subdivision shall be implemented only to the extent that it does not conflict with federal law relating to that program, or to the extent that any necessary waivers or exemptions are obtained pursuant to subdivision (b) and that federal financial participation, if applicable, is available and is not otherwise jeopardized.

(b)The California SOAR Guaranteed Income Program administrator, in consultation with stakeholders and the Legislature, shall identify the California Work Opportunity and Responsibility to Kids (CalWORKs) program, the CalFresh program, the Medi-Cal program, and any other state program that implements a federal means-tested program and that would require an exemption or waiver in order for an award described in subdivision (a) to be excluded from consideration as income or resources for purposes of the federal program. Notwithstanding any other law, a state department or agency that administers a program identified by the California SOAR Guaranteed Income Program administrator or that the department or agency itself identifies shall, if possible, approve an exemption or waiver, or provide any other authority deemed necessary by the department or agency, to exclude the award from consideration as income or resources for purposes of the federal program, or, if the state department or agency does not have that authority, shall seek a federal waiver or exemption. The state’s failure to be granted a federal exemption or waiver, as described in this subdivision, shall not affect the ability of the administrator to administer the California SOAR Guaranteed Income Program, and the administrator may consider alternatives to prevent adverse consequences for participants, in consultation with the Legislature and stakeholders.

(c)This chapter shall become inoperative on August 1, 2024, and, as of January 1, 2025, is repealed.

SEC. 4.Section 10007 is added to the Welfare and Institutions Code, to read:

10007.

(a)Subject to the limitations and conditions described in Section 8280, any amount received by an individual as an award through the California SOAR Guaranteed Income Program established pursuant to Chapter 5.7 (commencing with Section 48870) of Part 27 of Division 4 of Title 2 of the Education Code shall not be considered income or resources for purposes of determining the individual’s, or any member of their household’s, eligibility for benefits or assistance, or the amount or extent of benefits or assistance, under a state or local means-tested public social services program described in this division.

(b)This section shall become inoperative on August 1, 2024, and, as of January 1, 2025, is repealed.