Asm. Travis Allen

Existing law establishes the State Lands Commission in the Natural Resources Agency, consisting of the Controller, the Lieutenant Governor, and the Director of Finance. This bill would add to the membership of the commission 2 members appointed by the governor, one member appointed by the Senate Committee on Rules, and one member appointed by the Speaker of the Assembly.

Existing law, the Safe, Reliable High-Speed Passenger Train Bond Act for the 21st Century, approved by the voters as Proposition 1A at the November 4, 2008, general election, provides for the issuance of general obligation bonds in the amount of $9 billion for high-speed rail purposes and $950 million for other related rail purposes. Article XVI of the California Constitution requires measures authorizing general obligation bonds to specify the single object or work to be funded by the bonds and further requires a bond act to be approved by a 23 vote of each house of the Legislature and a majority of the voters. Under existing law the Department of Water Resources operates the State Water Resources Development System, known as the State Water Project, in accordance with the California Water Resources Development Bond Act, to supply water to persons and entities in the state. Under existing law, the State Water Project is comprised of the State Water Facilities, as defined in the California Water Resources Development Bond Act, and additions determined by the department to be necessary and desirable. This bill would provide that no further bonds shall be sold for high-speed rail purposes pursuant to the Safe, Reliable High-Speed Passenger Train Bond Act for the 21st Century, except as specifically provided with respect to an existing appropriation for high-speed rail purposes for early improvement projects in the Phase 1 blended system. The bill, subject to the above exception, would require redirection of the unspent proceeds received from outstanding bonds issued and sold for other high-speed rail purposes prior to the effective date of these provisions, upon appropriation, for use in retiring the debt incurred from the issuance and sale of those outstanding bonds. The bill, subject to the above exception, would also require the net proceeds of other bonds subsequently issued and sold under the high-speed rail portion of the bond act to be made available, upon appropriation, to fund capital expenditures for water projects that are a part of the State Water Resources Development System, including the construction of desalination facilities, wastewater treatment and recycling facilities, reservoirs, water conveyance infrastructure, and acquifer recharge. The bill would make no changes to the authorization under the bond act for the issuance of $950 million in bonds for rail purposes other than high-speed rail. These provisions would become effective only upon approval by the voters at the next statewide election.

Existing law requires, in the event that the debtor has more than one debt being collected by the Franchise Tax Board and the amount collected is insufficient to satisfy the total amount owed, the amount collected to be applied to specified priorities. Existing law also establishes, for tax liabilities that are due and payable, as defined, before, on, or after July 1, 2006, a statute of limitations on collections of those liabilities to limit the collection period to 20 years beginning from the last statutory lien date for each taxable year, and would extinguish that liability for that taxable year by abating the underlying tax. This bill, beginning January 1, 2020, would make restitution payments to victims of crimes the first priority for debt collected by the Franchise Tax Board and would provide for a stay on the statute of limitations for collection of tax due for the period for which an outstanding restitution amount exists.

Existing sales and use tax laws impose taxes on retailers measured by gross receipts from the sale of tangible personal property sold at retail in this state, or on the storage, use, or other consumption in this state of tangible personal property purchased from a retailer for storage, use, or other consumption in this state, measured by sales price. Those laws partially exempt from those taxes, until July 1, 2018, the gross receipts from the sale of, and the storage, use, or other consumption of, specified tangible personal property purchased for use by a qualified person, as defined, to be used primarily in manufacturing or other processes, and in research and development. Consumables with a useful life of less than one year do not qualify for exemption, and useful life is defined by reference to state income or franchise taxes. This bill, on and after January 1, 2018, and before July 1, 2028, would additionally define useful life by reference to manufacturer or other warranties, maintenance contracts, and normal replacement as established by industry or business practices, would additionally exempt from those taxes special purpose buildings and foundations used for the generation, production, storage, or distribution, as defined, of electric power, and would expand the definition of qualified person to include, among others, a person primarily engaged in the business of electric power generation. The bill would declare the intent of the Legislature to enact legislation that would improve the state's sales and use tax incentives to promote a stronger California economy by securing a greater share of the high-paying, high-skilled jobs in manufacturing and research and development. This bill would take effect immediately as a tax levy.

Existing law, the California Street Terrorism Enforcement and Prevention Act (act) imposes specified punishments for certain crimes committed for the benefit of, at the direction of, or in association with, a criminal street gang, as specified. The act authorizes injunctions against specified gang activity, as provided. The act allows for the keeping of a shared gang database, defined as having various attributes, including, among others, that the database contains personal, identifying information in which a person may be designated as a suspected gang member, associate, or affiliate, or for which entry of a person in the database reflects a designation of that person as a suspected gang member, associate, or affiliate. This bill would require the California Department of Justice to send a copy of all information it has access to pursuant to a shared gang database to the United States Department of Justice.

Existing law, the Financial Information System for California (FISCal) Act, establishes the FISCal system, a single integrated financial management system for the state. The act requires the system to include a state transparency component that allows the public to have information regarding General Fund and federal fund expenditure data, using an Internet Web site. This bill would modify the FISCal system's transparency component to provide that the public have access to information regarding expenditures to the extent that information was provided by all state onboarded departments and agencies utilizing the system. The bill would require the Internet Web site to be interactive, searchable, and regularly updated, and include specified features.

The Personal Income Tax Law, in modified conformity with federal income tax laws, allows various deductions from gross income in computing adjusted gross income under that law, including deductions for payments to individual retirement accounts, alimony payments, and interest on educational loans. This bill, for taxable years beginning on or after January 1, 2017, and before January 1, 2022, would allow a deduction in computing adjusted gross income for those amounts paid or incurred by a qualified first-time home buyer, as defined, during the taxable year for qualified home-buying expenses, as provided. This bill would take effect immediately as a tax levy.

(1) Existing property tax law provides, pursuant to the authority of a specified provision of the California Constitution, for a homeowners' exemption in the amount of $7,000 of the full value of a "dwelling," as defined, and authorizes the Legislature to increase this exemption. This bill, beginning with the lien date for the 2018–19 fiscal year, contingent upon a specified appropriation, would increase the homeowners' exemption from $7,000 to $25,000 of the full value of a dwelling. This bill would also require, for the 2019–20 fiscal year and for each fiscal year thereafter, the county assessor to adjust the amount of the homeowners' exemption by the percentage change in the House Price Index for California for the first 3 quarters of the prior calendar year, as specified. (2) The California Constitution requires the Legislature, whenever it increases the homeowners' property tax exemption, to provide a comparable increase in benefits to qualified renters. The Personal Income Tax Law authorizes various credits against the taxes imposed by that law, including a credit for qualified renters in the amount of $120 for spouses filing joint returns, heads of household, and surviving spouses if adjusted gross income is $50,000 or less, and in the amount of $60 for other individuals if adjusted gross income is $25,000 or less. Existing law requires the Franchise Tax Board to annually adjust for inflation these adjusted gross income amounts. This bill, for each taxable year beginning on and after January 1, 2018, contingent upon a specified appropriation, would increase this credit for a qualified renter to $428 for spouses filing joint returns, heads of household, and surviving spouses if adjusted gross income is $50,000 or less, as adjusted for inflation, and to an amount equal to $214 for other individuals if adjusted gross income is $25,000 or less, as adjusted for inflation. The bill would also require, for taxable years beginning on or after January 1, 2019, the Franchise Tax Board to annually adjust for inflation, based upon the California Consumer Price Index, the amount of these credits. The bill would also make technical, nonsubstantive changes to the renters' credit. (3) Existing law requires the state to reimburse local agencies annually for certain property tax revenues lost as a result of any exemption or classification of property for purposes of ad valorem property taxation. This bill would provide that, notwithstanding those provisions, no appropriation is made and the state shall not reimburse local agencies under those provisions for property tax revenues lost by them pursuant to the bill. (4) This bill would take effect immediately as a tax levy.

Existing law authorizes the formation of a seaport infrastructure financing district to finance port or harbor infrastructure projects. Existing law requires that a harbor agency, as defined, prepare an infrastructure financing plan as part of a proposal to form a seaport infrastructure financing district, and requires that the plan meet specified requirements. Existing law authorizes a seaport infrastructure financing district to fund infrastructure projects through tax increment financing, consistent with the infrastructure financing plan and with the agreement of the new seaport infrastructure financing district's affected taxing entities. Existing law, the Bergeson-Peace Infrastructure and Economic Development Bank Act, establishes the Infrastructure and Economic Development Bank within the Governor's Office of Business and Economic Development, and requires the bank to establish criteria, priorities, and guidelines for the selection of projects to receive financial assistance from the bank, including, but not limited to, any combination of grants, loans, and the proceeds of bonds issued by the bank. This bill would require the bank, after consulting with appropriate state and local agencies, to establish criteria, priorities, and guidelines for the selection of infrastructure development and equipment purchase projects submitted by harbor agencies, as defined, for assistance from the bank, as specified. The bill would require the harbor agency to adopt a resolution that includes specified information, including, among other information, the state fiscal and economic impacts estimated to result from the proposed infrastructure development or equipment purchase project. The bill would require the bank to approve the infrastructure development and equipment purchase project if the bank finds that the project is more likely than not to result in the harbor agency's estimated state fiscal and economic impacts and would require the bank to adopt a resolution approving funding, as specified. The bill would authorize the bank to require the harbor agency to meet a specified condition prior to providing the moneys appropriated by the Legislature for the infrastructure development and equipment purchase project.

The Public Employees' Retirement Law (PERL) establishes the Public Employees' Retirement System (PERS) , which provides a defined benefit to members of the system, based on final compensation, credited service, and age at retirement, subject to certain variations. Existing law creates the Board of Administration of PERS for the purpose of governing the system and prescribes the composition of the board. Existing law requires that one member of the board be a member of the public chosen jointly by the Speaker of the Assembly and the Senate Committee on Rules. Existing law further requires that an official of a life insurer be appointed to the board by the Governor. The California Constitution prohibits changing the composition of the retirement board of certain public pension systems, including the numbers, terms, and method of selection and removal of members, unless the change is ratified by a majority vote of the electors in the jurisdiction in which the participants of the pension system are or were employed. This bill would revise the composition of the board. The bill would add to the board 2 persons, appointed at the pleasure of the Governor, who represent the public, have financial expertise, and are not interested in the system, as specified. The bill would replace the official of a life insurer, whom the Governor is currently authorized to appoint, with a gubernatorial appointee who has expertise in health insurance and is not interested in the system. The bill also would require the board member representing the public, appointed by the Speaker of the Assembly and Senate Committee on Rules, to have financial expertise and not be interested in the system. Under PERL, members of the board serve without compensation but are entitled to reimbursement for actual and necessary expenses incurred through service on the board. Existing law also requires each agency that employs an elected member of the board to be reimbursed by the retirement fund in an amount equal to the salary and benefits paid to the elected member by the employing agency for the percentage of the elected board member's regular work schedule during which the elected board member is on leave from the employing agency to attend meetings or activities of the board, or otherwise carrying out board activities. This bill would prohibit the system from providing members of the board with payments, reimbursements, or benefits for travel in excess of $10,000 per year. The bill also would require a summary of all payments, reimbursements, or benefits for travel of board members provided to be compiled and provided to the full board semiannually, and also to be posted on the board's Internet Web site. Additionally, the bill would prohibit any reimbursement to an agency that employs an elected member of the board from exceeding 35% of the annual salary and benefits paid to the elected board member by the employing agency. Existing law requires the board to arrange for ballots to be distributed to each active and retired member of the system before each election, and to provide for the return of the voted ballots to the board without cost to the member. This bill would require the election procedures developed by the board to include a process for candidates to provide campaign materials to the system, for mailing by the system to the members eligible to vote for the candidate. The bill would require the candidate to pay the actual expenses incurred by the system to mail the campaign materials and would prohibit the system from releasing contact information for members directly to a candidate. The bill would make the operation of its provisions that change the composition of the PERS board contingent on voter approval of an unspecified Assembly Constitutional Amendment by voters at the June 5, 2018, statewide primary election.