Sen. Steve Choi

The Personal Income Tax Law, beginning on or after January 1, 2015, in modified conformity with federal income tax laws, allows an earned income tax credit against personal income tax, and a payment from the Tax Relief and Refund Account for an allowable credit in excess of tax liability, to an eligible individual that is equal to that portion of the earned income tax credit allowed by federal law as determined by the earned income tax credit adjustment factor, as specified. The law provides that the amount of the credit is calculated as a percentage of the eligible individual's earned income and is phased out above a specified amount as income increases. This bill, for each taxable year beginning on or after January 1, 2021, and before January 1, 2022, would authorize a taxpayer to elect to have the amount of the credit calculated based on the taxpayer's earned income for the taxable year beginning on or after January 1, 2019, and before January 1, 2020, the taxpayer's earned income for the taxable year beginning on or after January 1, 2020, and before January 1, 2021, or the taxpayer's earned income for the next taxable year beginning on or after January 1, 2021, and before January 1, 2022. Existing law establishes the continuously appropriated Tax Relief and Refund Account and provides that payments required to be made to taxpayers or other persons from the Personal Income Tax Fund are to be paid from that account, including any amount to be paid as an earned income tax credit in excess of any tax liabilities. By increasing the amount of the California Earned Income Tax Credit to be paid with funds from the Tax Relief and Refund Account, and thus, authorizing new payments from that account for additional amounts in excess of personal income tax liabilities, this bill would make an appropriation.

Existing law provides that under specified conditions, vote by mail voters will be issued a provisional ballot if they return to the polling place designated for their home precincts on or before election day, or go to vote centers that meet specified criteria, or go to the office or satellite office of an elections official where voting is permitted. This bill would make a technical, nonsubstantive change to this provision.

Existing law provides that an individual who solicits, or who agrees to engage in, or who engages in, any act of prostitution with another person who is a minor in exchange for the individual providing compensation, money, or anything of value to the minor is guilty of disorderly conduct, a misdemeanor. Existing law requires persons convicted of specified sex offenses and certain acts of human trafficking for purposes of committing various sex offenses or extortion, or attempts to commit those offenses, to register with local law enforcement agencies while residing in the state or while attending school or working in the state. Willful failure to register, as required, is a misdemeanor, or a felony, depending on the underlying offense. This bill would require a person convicted of disorderly conduct, as described above, to register as a sex offender. By expanding the scope of an existing 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.

Existing law classifies controlled substances into 5 schedules and places the greatest restrictions and penalties on the use of those substances placed in Schedule I. Existing law classifies the drug fentanyl in Schedule II. Existing law prohibits a person from possessing for sale, or purchasing for purposes of sale, specified controlled substances, including fentanyl, and provides for imprisonment in a county jail for 2, 3, or 4 years for a violation of this provision. Existing law also imposes an additional term, and authorizes a trial court to impose a specified fine, upon a person who is convicted of a violation of, or of a conspiracy to violate, specified provisions of law with respect to a substance containing heroin, cocaine base, and cocaine, if the substance exceeds a specified weight. This bill would impose that additional term upon, and authorize a fine against, a defendant who violates those laws with respect to a substance containing fentanyl. By imposing additional incarceration costs on local agencies, the 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.

Existing law provides for the licensure and regulation of various professions and vocations by boards within the Department of Consumer Affairs and provides for the denial, suspension, and revocation of licenses for specified conduct. Existing law provides for the regulation of healing arts by various boards. Existing law authorizes boards to impose fines or penalties, as provided. Existing law, the Alcoholic Beverage Control Act, which is administered by the Department of Alcoholic Beverage Control, regulates the application, issuance, and suspension of alcoholic beverage licenses. The act provides the grounds upon which the department may suspend or revoke licenses and impose fines and penalties, as provided. This bill would prohibit the Department of Consumer Affairs, a board within the Department of Consumer Affairs that does not regulate healing arts licensees, and the Department of Alcoholic Beverage Control from revoking a license or imposing a fine or penalty for failure to comply with any COVID-19 state of emergency orders or COVID-19 stay-at-home orders, unless the board or department can prove that lack of compliance resulted in transmission of COVID-19. The bill would specify that the provisions do not preclude issuance of fines, penalties, or revoking a license for any action that is not related to the issuance of any COVID-19 state of emergency orders or COVID-19 stay-at-home order. The provisions of the bill would remain in effect until either the COVID-19 state of emergency is terminated or all COVID-19 stay-at-home orders are no longer in effect, whichever occurs later, but in no case would the provisions remain in effect after January 1, 2024. This bill would declare that it is to take effect immediately as an urgency statute.

The Personal Income Tax Law, in modified conformity with federal law, generally defines "gross income" as income from whatever source derived, except as specifically excluded, and provides various exclusions from gross income for purposes of computing tax liability. Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives that the tax expenditure will achieve, detailed performance indicators, and data collection requirements. This bill, for taxable years beginning on or after January 1, 2021, and before January 1, 2026, would provide an exclusion from gross income for all survivor benefits or payments received on or after January 1, 2021, and before January 1, 2026, under the federal Survivor Benefit Plan. The bill would require the Franchise Tax Board to submit, on or before December 1, 2025, a report to the Legislature on the income brackets of taxpayers who claimed this exclusion, and would provide findings and declarations relating to the goals, purposes, and objectives of this exclusion. This bill would take effect immediately as a tax levy.

Existing law requires a court to charge various fines, fees, penalties, and assessments for criminal defendants, including fines assessed as a penalty for a crime, restitution fines, and fees for the support and maintenance of the courts, as specified. Existing law permits a judgment against a criminal defendant that orders the defendant to pay a fine, other than a restitution fine or order, to also direct that the defendant be imprisoned until the fine is satisfied, as specified. Existing law authorizes a court to sentence a person convicted of an infraction to perform community service in lieu of the total fine, as defined, that would otherwise be imposed, upon a showing that payment of the total fine would pose a hardship on the defendant or the person's family. This bill would require the court to offer a payment plan to a criminal defendant who has been assessed fines, fees, penalties, and assessments in an amount over $500, other than a restitution order payable to the victim, resulting from a criminal prosecution on or after January 1, 2022, and would authorize the court to offer a payment plan under those circumstances to a defendant who has been assessed fines, fees, penalties, and assessments of $500 or less. The bill would require the court to allow a defendant to pay those fines, fees, penalties, and assessments with a credit card, as specified. The bill would specify that these provisions do not prohibit a court from converting a fine to jail time or community service, or otherwise limit the court's ability to consider a defendant's ability to pay without undue hardship. The bill would require the Judicial Council to adopt Rules of Court to implement these provisions.

The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws. Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives the tax expenditure will achieve, detailed performance indicators, and data collection requirements. This bill, under both laws, for taxable years beginning on or after January 1, 2022, and before January 1, 2027, would allow a credit against those taxes to a taxpayer that owns a unit rented to, or leased by, persons receiving housing services or assistance, as specified, at below market rates, in an amount equal to $500 for each qualified property owned by the taxpayer, not to exceed $5,000 per taxable year. The bill would also provide findings to comply with the additional information requirement for any bill authorizing a new tax expenditure. This bill would take effect immediately as a tax levy.

The Personal Income Tax Law, in conformity or modified conformity with federal income tax laws, allows various deductions in computing the income that is subject to the taxes imposed by that law, including a deduction for the medical and dental expenses paid during the taxable year, not compensated for by insurance or otherwise, for the medical or dental care of the taxpayer, spouse, or a dependent, to the extent that such expenses exceed 7.5% of federal adjusted gross income. This bill would, for taxable years beginning on or after January 1, 2022, and before January 1, 2027, instead allow that deduction to the extent that those medical and dental expenses exceed 4% of federal adjusted gross income. Existing law requires any bill expanding an existing tax deduction to contain, among other things, specific goals, purposes, and objectives that the tax credit will achieve, detailed performance indicators, and data collection requirements. The bill would provide findings and declarations relating to the goals of the expansion of the deduction for medical and dental expenses. This bill would take effect immediately as a tax levy.