Public social services: tax-exempt nonprofit organizations.

The bill's short title was changed from 'relating to public social services, tax-exempt organizations, and declaring the urgency thereof' to 'relating to tax-exempt organizations, and declaring the urgency thereof,' removing the 'public social services' descriptor.

Standard enrolled-bill formatting changes: removal of amendment history lines, addition of 'Passed the Assembly September 9, 2025' and 'Passed the Senate September 8, 2025,' addition of signature blocks for the Chief Clerk, Secretary of the Senate, Private Secretary of the Governor, and the Governor's approval line.

Header changed from Assembly/Senate passage language to 'STATE OF CALIFORNIA AUTHENTICATED ELECTRONIC LEGAL MATERIAL' with chapter number 451 assigned.

Governor approval line added: 'Approved by Governor October 7, 2025. Filed with Secretary of State October 7, 2025.'

Page numbering and layout reformatted throughout (page numbers changed from 95 to 94, page headers changed from 'AB 1318' to 'Ch. 451').

Signature block at end changed from blank 'Approved ___, 2025 / Governor' to the Governor's signature mark.

New Government Code Section 7230 adds a universal rule that any reference to IRC Section 501(c)(3) in any statute, regulation, or contract for grant eligibility or state/local fund disbursement is deemed to also refer to California's state tax-exempt status (RTC Section 23701d). This applies across all state programs, not just the specific W&I Code sections amended elsewhere in the bill.

The bill's title and scope expanded from amending only five Welfare and Institutions Code sections to also adding an entirely new chapter (Chapter 14.6) to Division 7 of Title 1 of the Government Code, with subject matter now including 'tax-exempt organizations' beyond just 'public social services.'

A severability clause (new Section 7) was added stating that if any provision of the act is held invalid, the remaining provisions continue in effect.

Senator McNerney was added as principal coauthor, reflecting Senate sponsorship of the amendment. All original sections were renumbered to accommodate the new Section 1.

The bill now amends five additional sections of the Welfare and Institutions Code (13275, 13304, 13306, 13401, and 13650) in addition to the original Revenue and Taxation Code amendment, expanding its scope from a tax code cleanup to public social services eligibility.

The definition of 'qualified nonprofit organization' in W&I Code Section 13275 now includes organizations exempt from state income taxation under R&T Code Section 23701d, not only those exempt from federal income taxation under IRC 501(c)(3). This is the central policy change.

Section 13304 (immigration legal services grants) now allows grants to be executed with nonprofits meeting either federal 501(c)(3)/501(c)(5) requirements OR state exemption under R&T Code Section 23701d.

Section 13306 (immigrant education and outreach grants) now allows grants to nonprofits meeting either federal or state tax-exempt status requirements.

Section 13401 (rapid response program for critical immigrant assistance) now allows grants or contracts with entities meeting either federal 501(c)(3)/501(c)(5) or state R&T Code Section 23701d requirements, and permits partnering to meet those requirements.

Section 13650 (Enhanced Services for Asylees and Vulnerable Noncitizens program) now allows grants or contracts with nonprofits meeting either federal or state tax-exempt status requirements.

The fiscal committee designation changed from 'no' to 'yes,' indicating the amendment has budgetary implications likely due to the expanded pool of eligible grant recipients across multiple programs.

The entire amendment to Section 23701 of the Revenue and Taxation Code was deleted. This provision had addressed how nonprofit organizations could obtain state tax-exempt status by submitting IRS determination letters or group exemption letters to the Franchise Tax Board, including rules on suspension, revocation, and reinstatement of exemptions.

A new Section 6 declares the bill an urgency statute that takes effect immediately upon passage, citing escalating threats from the federal government to nonprofit organizations serving vulnerable communities as the justification.

The required vote changed from a simple majority to a two-thirds majority, reflecting the urgency clause which requires supermajority approval under the California Constitution.

The fiscal committee designation changed from 'no' to 'yes,' indicating the bill now has a fiscal impact that requires fiscal committee review.

Assembly Member Lee was added as a coauthor of the bill.