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 93

Author:(Committee on Budget)

As Amended Ver:June 22, 2020

Majority vote. Budget Bill Appropriations Taked Effect Immediately

SUMMARY:

This is the Earned Income Tax Credit (EITC) trailer bill for the 2020-21 budget. It contains the necessary changes necessary to implement the 2020 Budget Act. Specifically, this bill:

The Senate Amendments:

Delete the contents of the bill and replace it with the following:

1. Extends the EITC and Young Child Tax Credit (YCTC), beginning on or after January 1, 2020, to an eligible individual who has a federal individual taxpayer identification number (ITIN) under the following conditions:
   1. An eligible individual who has a qualifying child younger than six years old as of the last day of taxable year.
   2. An eligible individual whose spouse has a qualifying child younger than six years old as the last day of the taxable year.
   3. Any other qualifying children of an eligible individual who has a qualifying child younger than six years old as of the last day of the taxable year.
   4. Any other qualifying children of an eligible individual's spouse who has a qualifying child younger than six years old as of the last day of the taxable year.
2. Removes from our conformity to Internal Revenue Code EITC eligibility rules related to the exception from eligibility for certain Social Security Numbers. The removal of that conformity would apply for all taxpayers, regardless of whether they have children under six years old in the family

COMMENTS:

This bill is a budget trailer bill within the overall 2020-21 budget package necessary to implement actions related to the Earned Income Tax Credit.

According to the Author:

None

Arguments in Support:

None on file.

Arguments in Opposition:

None on file.

FISCAL COMMENTS:

This bill includes a continuous appropriation for the Tax Relief and Refund Account for amounts related to the Earned Income Tax Credit and Young Child Tax Credits.

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: Genevieve Morelos / BUDGET / (916) 319-2099 FN: 0003136

 THIRD READING  

Bill No: AB 93

Author: Committee on Budget

Amended: 6/22/20 in Senate

Vote: 21

PRIOR VOTES NOT RELEVANT

SENATE BUDGET & FISCAL REVIEW COMMITTEE: 13-5, 6/24/20

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

NOES: Nielsen, Dahle, Melendez, Moorlach, Morrell

SUBJECT: Personal income taxes: earned income tax credit: young child tax credit: federal individual taxpayer identification number

SOURCE: Author

DIGEST:

This bill is the California Earned Income Tax Credit (EITC) trailer bill.

ANALYSIS: In SB 80 (Committee on Budget and Fiscal Review, Chapter 21, Statutes of 2015), the Legislature created the EITC, a state refundable tax credit for wage income that is intended to benefit very low-income households. Specifically, the program builds off the federal EITC and established a refundable credit for tax years beginning on or after January 1, 2015. The credit is applied to personal income tax liabilities associated with earned wage income. The program provides for a credit amount during a phase-in range of earned wage income according to specified percentages based on the number of qualifying children.

SB 106 (Committee on Budget and Fiscal Review, Chapter 96, Statutes of 2017) expanded the EITC to allow previously ineligible self-employed workers to qualify for the state EITC, and raised the credit's income eligibility limits so that workers higher up the income scale would qualify.

SB 855 (Committee on Budget and Fiscal Review, Chapter 52, Statutes of 2018) expanded the EITC to working individuals who are aged 18 to 24 or over age 65. Additionally, SB 855, expanded the qualifying income range for the EITC so that employees who have one or more dependents, and who are working up to full-time at the 2019 minimum wage of $12 per hour, would qualify for the credit.

AB 91 (Burke, Chapter 39, Statutes of 2019) expanded the EITC by raising the annual computation floor from 3.1 to 3.5 percent, revising the computation factors to increase the credit amount for certain taxpayers, raising the maximum income to $30,000, and providing a refundable Young Child Tax Credit (YCTC) for qualifying families with at least one child under the age of six.

This bill:

1. Expands EITC and YCTC eligibility to Individual Taxpayer Identification Number filers with at least one child under the age of six and specifies that children six and over would count as qualifying children, as long as the family has at least one child under six.
2. Removes from conformity to Internal Revenue Code EITC eligibility rules related to the exception from eligibility for certain Social Security Numbers. The removal of that conformity would apply for all taxpayers, regardless of whether they have children under six in the family.

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

According to the Senate Budget and Fiscal Review Committee, by authorizing payments to additional taxpayers from the continuously appropriated Tax Relief and Refund Account for amounts of EITCs and YCTCs, this bill would make an appropriation. The expansion of the EITC and YCTC provided for in this bill is estimated to cost approximately $65 million in the 2020-21 fiscal year.

SUPPORT: (Verified 6/23/20)

None received

OPPOSITION: (Verified 6/23/20)

None received

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

6/25/20 0:58:13

**** END ****

SENATE COMMITTEE ON

Senator Holly Mitchell, Chair

2019 - 2020 Regular

Bill No: Hearing Date: June 24, 2020

Subject: Personal income taxes: earned income tax credit: young child tax credit: federal individual taxpayer identification number

Summary:

This is the California Earned Income Tax Credit (EITC) trailer bill.

Background:

In SB 80 (Committee on Budget and Fiscal Review), Chapter 21, Statutes of 2015, the Legislature created the EITC, a state refundable tax credit for wage income that is intended to benefit very low-income households. Specifically, the program builds off the federal EITC and established a refundable credit for tax years beginning on or after January 1, 2015. The credit is applied to personal income tax liabilities associated with earned wage income. The program provides for a credit amount during a phase-in range of earned wage income according to specified percentages based on the number of qualifying children.

SB 106 (Committee on Budget and Fiscal Review), Chapter 96, Statutes of 2017, expanded the EITC to allow previously ineligible self-employed workers to qualify for the state EITC, and raised the credit's income eligibility limits so that workers higher up the income scale would qualify.

SB 855 (Committee on Budget and Fiscal Review), Chapter 52, Statutes of 2018, expanded the EITC to working individuals who are aged 18 to 24 or over age 65. Additionally, SB 855, expanded the qualifying income range for the EITC so that employees who have one or more dependents, and who are working up to full-time at the 2019 minimum wage of $12 per hour, would qualify for the credit.

AB 91 (Burke), Chapter 39, Statutes of 2019, expanded the EITC by raising the annual computation floor from 3.1 to 3.5 percent, revising the computation factors to increase the credit amount for certain taxpayers, raising the maximum income to $30,000, and providing a refundable Young Child Tax Credit (YCTC) for qualifying families with at least one child under the age of six.

Proposed Law:

1. Expands EITC and YCTC eligibility to Individual Taxpayer Identification Number filers with at least one child under the age of six and specifies that children six and over would count as qualifying children, as long as the family has at least one child under six.
2. Removes from conformity to Internal Revenue Code EITC eligibility rules related to the exception from eligibility for certain Social Security Numbers. The removal of that conformity would apply for all taxpayers, regardless of whether they have children under six in the family.

Fiscal Effect:

By authorizing payments to additional taxpayers from the continuously appropriated Tax Relief and Refund Account for amounts of EITCs and YCTCs, this bill would make an appropriation. The expansion of the EITC and YCTC provided for in this bill is estimated to cost approximately $65 million in the 2020-21 fiscal year.

Support:

None on file.

Opposed:

None on file.

-- END --

 THIRD READING  

Bill No: AB 93

Author: Committee on Budget

Amended: 6/6/19 in Senate

Vote: 21

SENATE BUDGET & FISCAL REVIEW COMMITTEE: 16-0, 6/12/19

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

NO VOTE RECORDED: Pan, Stern

ASSEMBLY FLOOR: Not relevant

SUBJECT: Budget Act of 2018: augmentation

SOURCE: Author

DIGEST:

This bill makes a supplemental appropriation to the Budget Act of 2018.

ANALYSIS: This bill appropriates $112.6 million General Fund to the California Department of Corrections and Rehabilitation and $800 General Fund to reimburse a qualified county for costs of a homicide trial.

1. Appropriates $112.6 million General Fund to augment the 2018 Budget Act for the Department of Corrections and Rehabilitation. This amount includes costs for providing contracted health care services to state prison inmates who require treatment that cannot be provided in prison clinical environments ($64.1 million). It also includes funding for housing inmates in out-of-state facilities ($16.5 million), for dental and medical services ($3.2 million), for pharmaceuticals ($18.8 million), and for contracted registry staff in clinical positions ($10 million).
2. Appropriates $800 General Fund to augment the 2018 Budget Act to reimburse Mariposa County for costs related to the homicide case of “People v. Cary Stayner.” This claim has been approved by the State Controller, pursuant to Chapter 3 (commencing with Section 15200) of Part 6 of Division 3 of Title 2 of the Government Code, which allows qualified counties to seek state reimbursement for homicide trial costs.

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

According to the Senate Budget and Fiscal Review Committee, this bill appropriates $112.6 million General Fund to address shortfalls in the Budget Act of 2018. Balances of the appropriated funds as of June 30, 2019, as specified, would revert to the General Fund.

SUPPORT: (Verified 6/11/19)

None received

OPPOSITION: (Verified 6/11/19)

None received

Prepared by: Jennifer Troia / B. & F.R. / 916-651-4103

6/14/19 11:23:03

**** END ****

ASSEMBLY THIRD READING

ATR Bill Id:AB 93

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: 0000136

SENATE COMMITTEE ON

Senator Holly Mitchell, Chair

2019 - 2020 Regular

Bill No: Hearing Date: June 11, 2019

Subject:

Summary:

This bill makes a supplemental appropriation to the Budget Act of 2018.

Background:

Specifically, this bill appropriates $112.6 million General Fund to the California Department of Corrections and Rehabilitation and $800 General Fund to reimburse a qualified county for costs of a homicide trial.

Proposed Law:

1. Appropriates $112.6 million General Fund to augment the 2018 Budget Act for the Department of Corrections and Rehabilitation. This amount includes costs for providing contracted health care services to state prison inmates who require treatment that cannot be provided in prison clinical environments ($64.1 million). It also includes funding for housing inmates in out-of-state facilities ($16.5 million), for dental and medical services ($3.2 million), for pharmaceuticals ($18.8 million), and for contracted registry staff in clinical positions ($10 million).
2. Appropriates $800 General Fund to augment the 2018 Budget Act to reimburse Mariposa County for costs related to the homicide case of “People v. Cary Stayner.” This claim has been approved by the State Controller, pursuant to Chapter 3 (commencing with Section 15200) of Part 6 of Division 3 of Title 2 of the Government Code, which allows qualified counties to seek state reimbursement for homicide trial costs.

Fiscal Effect:

Appropriates $112.6 million General Fund to address shortfalls in the Budget Act of 2018. Balances of the appropriated funds as of June 30, 2019, as specified, would revert to the General Fund.

Support:

None on file.

Opposed:

None on file.

-- END --