SB 139

Bill Subjects

Abstract

(1) Existing law authorizes various forms of relief for low-income Californians, including a Golden State Stimulus payment, certain tax benefits, and public assistance programs. Existing law also provides various forms of assistance to those Californians who have been impacted by the COVID-19 emergency. This bill would authorize the Controller to make one-time Golden State Stimulus II payments of specified amounts to qualified recipients, as defined. The bill would require the Controller to transfer a specified amount to the Golden State Stimulus Emergency Fund for the purpose of making these payments, and would continuously appropriate the funds to the Controller for that purpose. The bill would require the Controller to redeposit all payments that are returned to the fund, and would provide that any unused moneys remaining in the fund as of June 1, 2024, would be transferred to the General Fund. Existing law limits the collection and use of taxpayer information and provides that any unauthorized use of this information is punishable as a misdemeanor. This bill would require the Franchise Tax Board to provide tax returns or return information necessary for the Controller to make rebate payments, and would make the information received by the Controller subject to limitation on the collection and use of that information. By expanding the scope of a crime, this bill would impose 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. (2) Existing law requires the Controller to state an account with persons that receive funds or property belonging to the state and fail to properly render account thereof to the state, and persons that fail to pay to the State Treasury any money belonging to the state. Existing law requires the Controller to offset delinquent accounts against personal income tax refunds. This bill would, until January 1, 2023, prohibit the Controller from offsetting delinquent accounts with the tax rebate payment authorized by this bill. (3) Existing law authorizes the Franchise Tax Board, as part of its administrative duties with respect to the collection of taxes, to seize assets of a delinquent taxpayer. Existing law authorizes the board to issue an order to specified financial institutions, persons, and entities, including an officer or department of the state, to withhold and remit liquid assets of a delinquent taxpayer in order to satisfy the tax obligations of that taxpayer. Existing law, until January 1, 2022, prohibits the Franchise Tax Board from issuing an order to withhold and remit any amounts from stimulus payments made pursuant to specified provisions of law. This bill would extend this prohibition to the payment authorized by this bill for liabilities owed by the eligible recipient pursuant to specified provisions. The bill would extend the operation of this provision to January 1, 2023. (4) 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 credit will achieve, detailed performance indicators, and data collection requirements. This bill would exclude the payment authorized by this bill 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. (5) Existing law authorizes the Controller to make a one-time Golden State Stimulus payment to each qualified recipient, as defined, of an applicable amount, as specified, in a form and manner determined by the Franchise Tax Board. That law defines qualified recipient, in part, as a specified individual who receives a tax credit pursuant to a specified provision of law by November 15, 2021. Existing law establishes the Golden State Stimulus Emergency Fund, a continuously appropriated fund, for the purposes of making these one-time payments. This bill would revise the definition of qualified recipient for purposes of the Golden State Stimulus payment to include a specified individual who receives a tax credit pursuant to specified provision of law on an individual tax return filed by February 15, 2022. By expanding the class of people eligible to receive a Golden State Stimulus Payment, this bill would make an appropriation. The bill would also require the Controller, with exceptions, to make the Golden State Stimulus payments by July 15, 2022. The bill would require the Controller to redeposit all Golden State Stimulus payments returned into the Golden State Stimulus Emergency Fund. (6) This bill would also make findings and declarations related to a gift of public funds. (7) 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 23 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 23 vote of the Legislature. (8) This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.