One-time stimulus payment: delinquent accounts: Earned Income Tax Credit: statements.

(1) Existing law authorizes various forms of relief for low-income Californians, including certain tax benefits and public assistance programs. Existing law also provides various forms of assistance to those Californians that have been impacted by the COVID-19 emergency. This bill would authorize the Controller to make a one-time Golden State Stimulus payment to each qualified recipient, as defined, of an applicable amount, as specified, in a form and manner determined by the Franchise Tax Board, in order to provide relief to low-income Californians impacted by the COVID-19 emergency. This bill would create the Golden State Stimulus Emergency Fund, a new fund in the State Treasury, for the purposes of making these one-time payments, and would continuously appropriate that fund. This bill would also authorize one-time grant payments to qualified grant recipients, as defined, of $600, to be administered by the State Department of Social Services, in order to provide relief to low-income Californians impacted by the COVID-19 emergency. (2) Existing law requires the Controller to state an account with persons that receive funds or property belonging to the state and fail to properly render account thereof to the state, and persons that fail to pay to the State Treasury any money belonging to the state. Existing law requires the Controller to offset delinquent accounts against personal income tax refunds. This bill would, before January 1, 2022, prohibit the Controller from offsetting delinquent accounts with the one-time payment authorized by this bill. (3) Existing law authorizes the Franchise Tax Board, as part of its administrative duties with respect to the collection of taxes, to seize assets of a delinquent taxpayer. Existing law authorizes the board to issue an order to specified financial institutions, persons, and entities, including an officer or department of the state, to withhold and remit liquid assets of a delinquent taxpayer in order to satisfy the tax obligations of that taxpayer. This bill would, before January 1, 2022, prohibit the Franchise Tax Board from issuing an order to withhold and remit any amounts from the one-time payment authorized by this bill for liabilities owed by the eligible recipient pursuant to specified provisions. (4) 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. For taxable years beginning on and after January 1, 2020, this tax credit is available to any eligible individuals using an individual taxpayer identification number. The Personal Income Tax Law allows a refundable young child tax credit against the taxes imposed under that law, for each taxable year beginning on or after January 1, 2019, to a qualified taxpayer in a specified amount multiplied by the Earned Income Tax Credit adjustment factor, as provided. For taxable years beginning on and after January 1, 2020, this tax credit is available to any eligible individuals using an individual taxpayer identification number. This bill would specify that these tax credits are available to undocumented persons who are eligible individuals. (5) The Personal Income Tax Law imposes a tax on individual taxpayers measured by the taxpayer's taxable income for the taxable year, but, in modified conformity with federal income tax laws, allows various exclusions from gross income. Existing law requires any bill authorizing a new tax expenditure, as defined to include exclusions from income, to contain, among other things, specific goals, purposes, and objectives that the tax credit will achieve, detailed performance indicators, and data collection requirements. This bill would exclude the one-time payment authorized by this bill from the gross income of qualified recipients for personal income tax purposes. The bill would also include additional information required for any bill authorizing a new tax expenditure. This bill would make an appropriation from the General Fund to the Controller to pay for the administrative costs of making the tax refund payments authorized by this bill. This bill would also make findings and declarations related to a gift of public funds. (6) Existing law requires the Department of Finance to transmit annually to each city and each county an estimate of the percentage change in the population of the city or the county, as specified, and requires those statements to be transmitted by May 1. This bill would instead require, for 2021, the statements to be transmitted by May 7. (7) Existing law, the California Economic Improvement Tax Voucher Act, requires the Franchise Tax Board, in consultation with the Treasurer and the Department of Finance, to develop a comprehensive plan for a California Economic Improvement Tax Voucher Program, as specified, to be considered by the Legislature for future enactment as legislation. This bill would repeal those provisions. (8) The bill would make its provisions severable, as specified. (9) This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.