This bill would express the intent of the Legislature to enact statutory changes relating to the Budget Act of 2019.

CONCURRENCE IN SENATE AMENDMENTS

CSA1 Bill Id:AB 92

Author:(Committee on Budget)

As Amended Ver:June 22, 2020

Majority vote. Budget Bill Appropriation Takes Effect Immediately

SUMMARY:

This bill is the omnibus Resources trailer bill for 2020-21. It contains various statutory provisions necessary to implement the Budget Act of 2020.

The Senate Amendments

1. Establishes the Good Neighbor Authority (GNA) Fund in the State Treasury to facilitate the implementation of forest management projects on federal lands. Under GNA Agreements, state and local agencies agree to complete vegetation management projects on federal lands in cooperation with the US Forest Service. GNA Agreements authorize these entities to sell timber harvested during these activities to offset project costs and support implementation of new GNA projects. This new fund will serve as a depository for timber sale revenues generated by state agencies through the completion of GNA projects, which will be reinvested to help increase the pace and scale of forest treatment activities on federal lands.
2. Requires the State Water Resources Control Board (SWRCB), in setting a specified fee schedule, to include an amount estimated by the SWRCB, in consultation with the Department of Fish and Wildlife, necessary to recover costs incurred by the department.
3. Requires the Secretary of Food and Agriculture to adopt, by regulation, fees to cover the Department of Food and Agriculture’s reasonable regulatory program costs related to the confinement of animals, as described in Proposition 12. Requires the fees to be separately accounted for in the Department of Agriculture Account, Department of Food and Agriculture Fund.
4. Specifies that total gross receipts of sales of property within state-designated fairs be subject to review by the California Department of Tax and Fee Administration (CDTFA) for errors. Requires CDTFA to note any identified errors and the approximate impact of those errors on the total gross receipts in its report to the Department of Finance to allow an adjusted total gross receipts amount to be determined for the purpose of calculating the amount to be included in the Governor’s Budget for use by the Department of Food and Agriculture for allocation to fairs.
5. Extinguishes old general obligation bonds that are no longer needed to reduce administration costs by reducing the amount of indebtedness authorized by the Earthquake Safety and Public Buildings Rehabilitation Bond Act of 1990 and the Water Conservation Bond Law of 1988. This provision is intended to relieve the need to administer minimal remaining balances that are not enough to support another project.
6. Expands the use of moneys in the Lead-Acid Battery Cleanup Fund, upon appropriation by the Legislature, on specified activities to protect public health and the environment from hazardous substances and hazardous waste at or from the former Exide Technologies lead-acid battery recycling facility in the City of Vernon; and requires costs incurred by the Department of Toxic substances Control using moneys from the fund that are recovered be deposited into the fund.
7. Authorizes the State Water Resources Control Board (SWRCB) to issue a certificate or statement, which is required under federal water quality control laws, before completion of an environmental review, which is required under the California Environmental Quality Act, if SWRCB determines that waiting until completion of the environmental review poses a substantial risk of waiver of the state’s certification authority under federal water quality control laws. Requires SWRCB, to the extent authorized by federal law, to reserve authority to reopen and revise the certificate or statement as appropriate based on the information provided in the environmental review document.

COMMENTS:

This bill makes various changes to implement the resources and environmental protection budget allocations in the 2020-21 budget package.

According to the Author:

None

Arguments in Support:

None on file.

Arguments in Opposition:

None on file.

FISCAL COMMENTS:

The funding related to the changes in this bill is contained in the Budget Act of 2020.

VOTES:

ASSEMBLY FLOOR: 54-13-13

YES: Aguiar-Curry, Bauer-Kahan, Bloom, Boerner Horvath, Bonta, Burke, Calderon, Carrillo, Cervantes, Chau, Chu, Cooper, Daly, Eggman, Frazier, Friedman, Gabriel, Cristina Garcia, Gipson, Gloria, Gonzalez, Gray, Grayson, Holden, Irwin, Jones-Sawyer, Kalra, Kamlager-Dove, Limón, Maienschein, McCarty, Medina, Mullin, Muratsuchi, Nazarian, O'Donnell, Petrie-Norris, Quirk, Quirk-Silva, Ramos, Reyes, Luz Rivas, Robert Rivas, Rodriguez, Blanca Rubio, Salas, Santiago, Smith, Mark Stone, Ting, Weber, Wicks, Wood, Rendon

NO: Bigelow, Brough, Dahle, Flora, Fong, Gallagher, Kiley, Mathis, Melendez, Obernolte, Patterson, Voepel, Waldron

ABS, ABST OR NV: Arambula, Berman, Chen, Chiu, Choi, Cooley, Cunningham, Diep, Eduardo Garcia, Lackey, Levine, Low, Mayes

UPDATED:

VERSION: June 22, 2020

CONSULTANT: Susan Chan/ BUDGET / (916) 319-2099 FN: 0003135

 THIRD READING  

Bill No: AB 92

Author: Committee on Budget

Amended: 6/22/20 in Senate

Vote: 21

PRIOR VOTES NOT RELEVANT

SENATE BUDGET & FISCAL REVIEW COMMITTEE: 11-7, 6/24/20

AYES: Mitchell, Beall, Durazo, Leyva, McGuire, Monning, Pan, Roth, Skinner, Stern, Wieckowski

NOES: Nielsen, Caballero, Dahle, Hurtado, Melendez, Moorlach, Morrell

SUBJECT: Public resources: omnibus trailer bill

SOURCE: Author

DIGEST:

This bill is the omnibus Resources budget trailer bill. It contains provisions necessary to implement the 2020 Budget Act.

ANALYSIS: This bill contains the following provisions:

1. Good Neighbor Authority Fund. Establishes the Good Neighbor Authority (GNA) Fund in the State Treasury to facilitate the implementation of forest management projects on federal lands. Under GNA Agreements, state and local agencies agree to complete vegetation management projects on federal lands in cooperation with the US Forest Service. GNA agreements authorize these entities to sell timber harvested during these activities to offset project costs and support implementation of new GNA projects. This new fund will serve as a depository for timber sale revenues generated by state agencies through the completion of GNA projects, which will be reinvested to help increase the pace and scale of forest treatment activities on federal lands.
   
2. Amendments to AB 658 (Arambula, Chapter 678, Statutes of 2019). Requires the State Water Resources Control Board (SWRCB), in setting a specified fee schedule, to include an amount estimated by the SWRCB, in consultation with the Department of Fish and Wildlife, necessary to recover costs incurred by the department.
   
3. Fees to Regulate Law Prohibiting Confinement of Animals (Proposition 12). Requires the Secretary of Food and Agriculture to adopt, by regulation, fees to cover the Department of Food and Agriculture’s reasonable regulatory program costs related to the confinement of animals, as described in Proposition 12. Requires the fees to be separately accounted for in the Department of Agriculture Account, Department of Food and Agriculture Fund.
   
4. Extinguishing Remaining Unissued Bond Authority (Propositions 112 and 82). Extinguishes old general obligation bonds that are no longer needed to reduce Administration costs at the request of the Treasurer’s Office. This saves on ongoing Administration to administer minimal remaining balances that are not enough to support another project. The trailer bill language reduces the amount of indebtedness authorized by the Earthquake Safety and Public Buildings Rehabilitation Bond Act of 1990 and the Water Conservation Bond Law of 1988.
5. Lead-Acid Battery Cleanup Fund. Requires, explicitly, moneys in the Lead-Acid Battery Cleanup Fund to be expended, upon appropriation by the Legislature, on specified activities to protect public health and the environment from hazardous substances and hazardous waste at or from the former Exide Technologies lead-acid battery recycling facility in the City of Vernon; and requires costs incurred by the Department of Toxic Substances Control using moneys from the fund that are recovered be deposited into the fund.
   
6. Amendments to AB 1499 (Gray, Chapter 798, Statutes of 2017). Specifies that total gross receipts of sales of property within state-designated fairs be subject to review by the California Department of Tax and Fee Administration (CDTFA) for errors. Requires CDTFA to note any identified errors and the approximate impact on those errors on the total gross receipts in its report to the Department of Finance to allow an adjusted total gross receipts amount to be determined for the purpose of calculating the amount to be included in the Governor’s Budget for use by the Department of Food and Agriculture for allocation to fairs.
   
7. 401 Certification. Authorizes SWRCB to issue a certificate or statement, which is required under federal water quality control laws, before completion of an environmental review, which is required under the California Environmental Quality Act, if SWRCB determines that waiting until completion of the environmental review means review poses a substantial risk of waiver of the state’s certification authority under federal water quality control laws. Requires SWRCB, to the extent authorized by federal law, to reserve authority to reopen and revise the certificate or statement as appropriate based on the information provided in the environmental review document.

FISCAL EFFECT: Appropriation: Yes Fiscal Com.: Yes Local: No

According to the Senate Budget & Fiscal Review Committee, the funding related to the changes in this bill is contained in the Budget Act of 2020.

SUPPORT: (Verified 6/23/20)

None received

OPPOSITION: (Verified 6/23/20)

None received

Prepared by: Joanne Roy / B. & F.R. / 916-651-4103

6/25/20 0:58:16

**** END ****

SENATE COMMITTEE ON

Senator Holly Mitchell, Chair

2019 - 2020 Regular

Bill No: Hearing Date: June 24, 2020

Subject: Resources

Summary:

AB 92 is the omnibus Resources budget trailer bill. It contains provisions necessary to implement the 2020 Budget Act

Proposed Law:

Specifically, this bill:

1. Good Neighbor Authority Fund. Establishes the Good Neighbor Authority (GNA) Fund in the State Treasury to facilitate the implementation of forest management projects on federal lands. Under GNA Agreements, state and local agencies agree to complete vegetation management projects on federal lands in cooperation with the US Forest Service. GNA agreements authorize these entities to sell timber harvested during these activities to offset project costs and support implementation of new GNA projects. This new fund will serve as a depository for timber sale revenues generated by state agencies through the completion of GNA projects, which will be reinvested to help increase the pace and scale of forest treatment activities on federal lands.
   
2. Amendments to AB 658 (Arambula), Chapter 678, Statutes of 2019. Requires the State Water Resources Control Board (SWRCB), in setting a specified fee schedule, to include an amount estimated by the SWRCB, in consultation with the Department of Fish and Wildlife, necessary to recover costs incurred by the department.
   
3. Fees to Regulate Law Prohibiting Confinement of Animals (Proposition 12). Requires the Secretary of Food and Agriculture to adopt, by regulation, fees to cover the Department of Food and Agriculture’s reasonable regulatory program costs related to the confinement of animals, as described in Proposition 12. Requires the fees to be separately accounted for in the Department of Agriculture Account, Department of Food and Agriculture Fund.
   
4. Extinguishing Remaining Unissued Bond Authority (Propositions 112 and 82). Extinguishes old general obligation bonds that are no longer needed to reduce Administration costs at the request of the Treasurer’s Office. This saves on ongoing Administration to administer minimal remaining balances that are not enough to support another project. The trailer bill language reduces the amount of indebtedness authorized by the Earthquake Safety and Public Buildings Rehabilitation Bond Act of 1990 and the Water Conservation Bond Law of 1988.
5. Lead-Acid Battery Cleanup Fund. Explicitly requires moneys in the Lead-Acid Battery Cleanup Fund to be expended, upon appropriation by the Legislature, on specified activities to protect public health and the environment from hazardous substances and hazardous waste at or from the former Exide Technologies lead-acid battery recycling facility in the City of Vernon; and requires costs incurred by the Department of Toxic substances Control using moneys from the fund that are recovered be deposited into the fund.
   
6. Amendments to AB 1499 (Gray), Chapter 798, Statutes of 2017. Specifies that total gross receipts of sales of property within state-designated fairs be subject to review by the California Department of Tax and Fee Administration (CDTFA) for errors. Requires CDTFA to note any identified errors and the approximate impact on those errors on the total gross receipts in its report to the Department of Finance to allow an adjusted total gross receipts amount to be determined for the purpose of calculating the amount to be included in the Governor’s Budget for use by the Department of Food and Agriculture for allocation to fairs.
   
7. 401 Certification. Authorizes SWRCB to issue a certificate or statement, which is required under federal water quality control laws, before completion of an environmental review, which is required under the California Environmental Quality Act, if SWRCB determines that waiting until completion of the environmental review means review poses a substantial risk of waiver of the state’s certification authority under federal water quality control laws. Requires SWRCB, to the extent authorized by federal law, to reserve authority to reopen and revise the certificate or statement as appropriate based on the information provided in the environmental review document.

Fiscal Effect:

The funding related to the changes in this bill is contained in the Budget Act of 2020.

Support:

None on file.

Opposed:

None on file.

-- END --

 THIRD READING  

Bill No: AB 92

Author: Committee on Budget

Amended: 6/11/19 in Senate

Vote: 21

SENATE BUDGET & FISCAL REVIEW COMMITTEE: 15-0, 6/12/19

AYES: Mitchell, Nielsen, Beall, Durazo, Hurtado, Jones, Leyva, McGuire, Monning, Morrell, Roth, Skinner, Stone, Umberg, Wieckowski

NO VOTE RECORDED: Moorlach, Pan, Stern

ASSEMBLY FLOOR: Not relevant

SUBJECT: Sales Tax Exemption and Wayfair Clean up

SOURCE: Author

DIGEST:

This bill, the Sales Tax Exemption budget trailer bill, contains provisions necessary to implement the 2019 Budget Act.

ANALYSIS: This bill, specifically:

1. Requires the Office of Tax Appeals to create a process for a person filing an appeal to choose to appear before one Administrative Law Judge (ALJ) when the appeal:
   1. Is a Personal Income Tax issue where the total amount in dispute, including taxes, penalties, and fees, is less than $5,000; or
   2. Arises from a tax or fee administered by the California Department of Tax and Fee Administration (CDTFA), where the total amount in dispute, including taxes and fees, is less than $50,000, and the person filing the appeal has gross receipts of less than $20 million.
2. Prohibits a single ALJ from issuing a precedential decision.
3. Sunsets the process for appeals before one ALJ on January 1, 2030.
4. Clarifies provisions to state that newspapers, internet websites, and other entities that advertise tangible personal property for sale; that refer purchasers to the marketplace seller by telephone, internet link, or other similar means to complete the sale; and do not participate further in the sale; are not facilitating a sale for purposes of the specified provisions.
5. Directs CDTFA to allow a delivery network company to elect to become a marketplace facilitator in a form, manner, and duration determined by CDTFA, and requires CDTFA to issue regulations allowing for such an election.
6. Limits CDTFA’s authority to collect past taxes from qualifying retailers to only those liabilities incurred on or after April 1, 2016.
7. Defines “qualifying retailer” as one who:
   1. Was not registered as a retailer with CDTFA before December 1, 2018.
   2. Had not filed returns or made payments prior to CDTFA contacting them.
   3. Voluntarily registers with CDFTA, and completes returns including paying taxes due or entering into an installment agreement, within 90 days of the bill’s effective date.
   4. Obtained nexus in the state solely due to using a marketplace facilitator, as defined by AB 147 (Burke, Chapter 5, Statutes of 2019), who stored the retailer’s inventory in California.
8. Relieves qualifying retailers of any penalties incurred for obligations due between April 1, 2016, and March 31, 2019.
9. Amends the district tax threshold effective date to April 25, 2019, to account for the retroactive effect of AB 147.
10. Exempts, on or after January 1, 2020, from sales and use tax the gross receipts from the sale in this state of, and the storage, use, or other consumption in this state of, diapers for infants, toddlers, and children, and menstrual hygiene products. The Department of Finance would be required to annually estimate the total dollar amount of revenue that would have been credited to the Local Revenue Fund 2011 and requires the Controller to transfer that amount from the General Fund to the Local Revenue Fund 2011 no later than June 30 of each fiscal year. These sales and use tax exemptions become inoperative on January 1, 2022.
11. Makes technical and conforming changes, including replacing references from the United States Code to the Internal Revenue Code, and deletes unnecessary definitions.

FISCAL EFFECT: Appropriation: Yes Fiscal Com.: Yes Local: No

According to the Senate Budget and Fiscal Review Committee, the sales and use tax exemptions provided for in this bill would reduce General Fund revenue by approximately $17.5 million in 2019-20 and $35 million in subsequent years.

SUPPORT: (Verified 6/11/19)

None received

OPPOSITION: (Verified 6/11/19)

None received

Prepared by: Joe Stephenshaw / B. & F.R. / 916-651-4103

6/14/19 11:23:02

**** END ****

ASSEMBLY THIRD READING

ATR Bill Id:AB 92

Author:(Ting)

As Introduced Ver:December 3, 2018

Majority vote. Budget Bill Appropriation Takes Effect Immediately

SUMMARY:

This bill expresses the intent of the Legislature to enact statutory changes relating to the Budget Act of 2019.

Major Provisions

COMMENTS:

According to the Author:

Arguments in Support:

Arguments in Opposition:

FISCAL COMMENTS:

VOTES:

UPDATED:

VERSION: December 3, 2018

CONSULTANT: Christian Griffith / BUDGET / (916) 319-2099 FN: 0000135

SENATE COMMITTEE ON

Senator Holly Mitchell, Chair

2019 - 2020 Regular

Bill No: Hearing Date: June 12, 2019

Subject: Taxation

Summary:

AB 92 is the Sales Tax Exemption and Wayfair clean-up budget trailer bill. It contains provisions necessary to implement the 2019 budget act.

Proposed Law:

Specifically, this bill:

1. Requires the Office of Tax Appeals to create a process for a person filing an appeal to choose to appear before one Administrative Law Judge (ALJ) when the appeal:
   1. Is a Personal Income Tax issue where the total amount in dispute, including taxes, penalties, and fees, is less than $5,000; or
   2. Arises from a tax or fee administered by the California Department of Tax and Fee Administration (CDTFA), where the total amount in dispute, including taxes and fees, is less than $50,000, and the person filing the appeal has gross receipts of less than $20 million.
2. Prohibits a single ALJ from issuing a precedential decision.
3. Sunsets the process for appeals before one ALJ on January 1, 2030.
4. Clarifies provisions to state that newspapers, internet websites, and other entities that advertise tangible personal property for sale; that refer purchasers to the marketplace seller by telephone, internet link, or other similar means to complete the sale; and do not participate further in the sale; are not facilitating a sale for purposes of the specified provisions.
5. Directs CDTFA to allow a delivery network company to elect to become a marketplace facilitator in a form, manner, and duration determined by CDTFA, and requires CDTFA to issue regulations allowing for such an election.
6. Limits CDTFA’s authority to collect past taxes from qualifying retailers to only those liabilities incurred on or after April 1, 2016.
7. Defines “qualifying retailer” as one who:
   1. Was not registered as a retailer with CDTFA before December 1, 2018.
   2. Had not filed returns or made payments prior to CDTFA contacting them.
   3. Voluntarily registers with CDFTA, and completes returns including paying taxes due or entering into an installment agreement, within 90 days of the bill’s effective date.
   4. Obtained nexus in the state solely due to using a marketplace facilitator, as defined by AB 147 (Burke), Chapter 5, Statutes of 2019, who stored the retailer’s inventory in California.
8. Relieves qualifying retailers of any penalties incurred for obligations due between April 1, 2016, and March 31, 2019.
9. Amends the district tax threshold effective date to April 25, 2019 to account for the retroactive effect of Assembly Bill 147.
10. On or after January 1, 2020, would exempt from sales and use tax the gross receipts from the sale in this state of, and the storage, use, or other consumption in this state of, diapers for infants, toddlers, and children, and menstrual hygiene products. The Department of Finance would be required to annually estimate the total dollar amount of revenue that would have been credited to the Local Revenue Fund 2011 and would require the controller to transfer that amount from the General Fund to the Local Revenue Fund 2011 no later than June 30 of each fiscal year. These sales and use tax exemptions become inoperative on January 1, 2022.
11. Makes technical and conforming changes, including replacing references from the United States Code to the Internal Revenue Code, and deletes unnecessary definitions.

Fiscal Effect:

The sales and use tax exemptions provided for in this bill would reduce General Fund revenue by approximately $17.5 million in 2019-20 and $35 million in subsequent years.

Support:

None on file.

Opposed:

None on file.

-- END --