SB 1210

Bill Subjects

Abstract

Existing statutory law imposes taxes on the gross premiums of an insurer, as defined, and allows various credits against those taxes. The California Constitution imposes exactions against insurers from another state or country under specified conditions. This bill would establish the California Jumpstart Act. The bill, as part of the act, would allow a credit against those taxes for a taxable year beginning on or after January 1, 2022, in an amount equal to the amount of a relief contribution, as defined, that meets specified requirements. The bill would require the office of the Treasurer to, among other things, accept applications beginning 30 days after the enactment of the act, and ending on January 1, 2026, for approval as a relief fund that meet specified requirements, including that the application include a signed affidavit from each investor agreeing to make a relief contribution and that states the amount of the investor relief contribution. The bill also would require the office of the Treasurer to recapture any tax credit allowed and revoke the tax credit certificates issued to a taxpayer if the taxpayer engages in specified behavior, including, prior to investing 100% of its relief investment authority in relief investments, making a distribution or payment in excess of the cumulative investment earnings of the fund as of the date of payment or distribution, taking into account all past payments and distributions. This bill would require, among other things, the office of the Treasurer to undertake outreach activities to encourage investment in underrepresented groups, including, but not limited to, partnering with organizations representing persons and business enterprises from underrepresented groups, as described. The bill would also establish in the State Treasury a special fund to be known as the Treasury Relief Investment Fund. The bill would require that all moneys appropriated to the office of the Treasurer for purposes of the act be deposited or paid into the fund and be used to carry out the office of the Treasurer's duties specified in the act and those rules and regulations promulgated to implement the act. The bill would make related findings and declarations. This bill would require a relief fund that has not decertified to annually certify under penalty of perjury that the relief fund has not violated any of the grounds for revocation and recapture of credits. By expanding the crime of perjury, this bill would create a state-mandated local program. 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 take effect immediately as a tax levy.