AB 2465: State government: benefits.

Existing law generally provides various benefits, including grant programs and tax credits. Existing law, the California Values Act, generally prohibits California law enforcement agencies from using their moneys or personnel for immigration enforcement purposes, except as specified.

This bill would prohibit a business entity that contracts with the federal government for immigration enforcement purposes, as specified, from receiving any state-provided grant or loan, as specified. The bill would also prohibit a taxpayer that contracts with the federal government for immigration enforcement purposes, as specified, disqualified taxpayer, as defined, from receiving any tax credits, except as provided. The bill would define disqualified taxpayer to mean a taxpayer that is directly invested in, owns, or manages a private detention facility, or a taxpayer that contracts with a private detention facility or agency engaging in immigration enforcement, as specified. The bill would not apply these provisions to a provider of health care, as defined, that contracts with a private detention facility or agency engaging in immigration enforcement, as specified. The bill would establish the Due Process for All Fund and would require the Controller to transfer each year from the General Fund to the Due Process for All Fund the amount of tax collected that is attributable to business entities being made ineligible for tax credits by this bill. The bill would make moneys in the fund available upon appropriation by the Legislature for immigration-related services and programs.

This bill would include a change in state statute that would result in a taxpayer paying a higher tax within the meaning of Section 3 of Article XIIIA of the California Constitution, and thus would require for passage the approval of ²/₃ of the membership of each house of the Legislature.