Existing law, the CalSavers Retirement Savings Trust Act, administered by the CalSavers Retirement Savings Board (board) , establishes the CalSavers Retirement Savings Program (program) and the CalSavers Retirement Savings Trust (trust) . Under existing law, the trust consists of a program fund and an administrative fund with trust moneys that are continuously appropriated and administered by the CalSavers Retirement Savings Board for the purpose of promoting greater retirement savings for California private employees. Existing law requires eligible employers to offer a payroll deposit retirement savings arrangement so that eligible employees may contribute a portion of their salary or wages to a retirement savings program account in the program, as specified. Existing law defines "eligible employer" as a person or entity engaged in a business, industry, profession, trade, or other enterprise in the state, whether for profit or not for profit, excluding, among others, specified federal, state, and local governmental entities, with at least one eligible employee and that satisfies certain requirements to establish or participate in a payroll deposit retirement savings arrangement. This bill would enact the Savings Access and Vested Empowerment (SAVE) for All Workers Act, which would recast those provisions to expand that definition of "eligible employer" to include household employers, defined as those who have hired someone to work in or around their home for the benefit of their personal household and who provide the employee a W-2 federal tax form. By expanding eligibility under these provisions, the bill would remove a restriction limiting expenditure of funds and authorize the expenditure of continuously appropriated moneys for a new purpose, thereby making an appropriation. Existing law requires the board, subject to its authority and fiduciary duty, to design and implement the program. Existing law authorizes the board to provide for investment in myRAs. Existing law requires the program to include, as determined by the board, one or more payroll deduction IRA arrangements. Existing law provides the board with the power and authority to, among other things, make and enter into contracts necessary for the administration of the trust and to disseminate information concerning tax credits available to small business owners for allowing their employees to participate in the program and the federal Retirement Savings Contribution Credit (Saver's Credit) . This bill would eliminate the authority of the board to invest in myRAs and would make related conforming changes. The bill would require the program, with board approval, to establish an IRA on behalf of participants who are eligible to receive federal or state retirement benefits, as specified, and notify participants at least 30 days prior to the creation of the accounts. This bill would additionally authorize the board to assess the feasibility of multi-state or regional agreements to administer the program and to disseminate information concerning tax credits available to small business owners for allowing their employees to participate in the successor to the Saver's Credit, known as the Saver's Match. Existing law requires the board, prior to opening the program for enrollment, to establish a retirement investments clearinghouse on its internet website and a vendor registration process, if there is sufficient interest by vendors to participate and provide the necessary funding. Existing law requires vendors that would like to participate in the board's retirement investments clearinghouse and be listed on the board's internet website as a registered vendor to provide specified information to the board. This bill would eliminate the above-described requirement for the board to establish a retirement investments clearinghouse on its internet website and a vendor registration process, and would instead require vendors that would like to contract with the board to provide specified information to the board. The bill would make related conforming changes. Existing law authorizes an employer to choose to have a payroll deposit retirement savings arrangement to allow employee participation in the program under the terms and conditions prescribed by the board. Existing law requires, by December 31, 2025, eligible employers with one or more eligible employees and do not offer a retirement savings program, as provided, to have a payroll deposit retirement savings arrangement to allow employee participation in the program. Existing law authorizes the board to implement annual automatic escalation of employee contributions and prohibits contributions subject to automatic escalation from exceeding 8% of salary. Existing law provides the board the powers and duties necessary to administer the enforcement of employer compliance, as provided. This bill would, beginning December 31, 2027 and by December 31 of each calendar year, require eligible employers with one or more eligible employees, as described, who do not offer a retirement savings program, as specified, to have a payroll deposit retirement savings arrangement to allow employee participation in the program. The bill would instead prohibit contributions subject to automatic escalation from exceeding 10% of salary. The bill would require the board to notify participants of this increase in salary subject to automatic escalation. Existing law requires the board to issue to each employer who fails to allow its eligible employees to participate in the program, as provided, a notice of penalty application. Existing law requires each eligible employer that, without good cause, fails to allow its employees to participate in the program, as specified, after the board serves a final notice of penalty application, to be subject to a penalty of $250 per eligible employee and an additional penalty of $500 per eligible employee if noncompliance continues, as described. Existing law requires the Franchise Tax Board to issue a first notice of the imposition of a penalty to an eligible employer for failure to comply after the board informs the Franchise Tax Board of the eligible employer's noncompliance. Existing law requires amounts collected by the Franchise Tax Board for these purposes to be transmitted to the board for deposit in the trust. This bill would additionally subject each eligible employer that fails to allow its eligible employees to participate in the program after the above-described penalties have been assessed to a penalty of $500 per eligible employee. The bill would prohibit the penalties assessed from being imposed more than once every 180 days since the last violation. The bill would require the Franchise Tax Board to issue subsequent notices of imposition of penalties for noncompliance, as specified. By depositing additional penalties into the trust, a continuously appropriated fund, the bill would make an appropriation.
This measure would urge the United States Congress to enact federal legislation that would ensure that federal unemployment taxes on businesses are not increased due to any debt to the federal Unemployment Trust Fund that was a direct result of a state's decisions resulting in increased filings, including shutdowns, extensions of shutdowns, or lapses in fraud prevention programs.
The Personal Income Tax Law allows various credits against the taxes imposed by that law. This bill would allow a credit against those taxes to a licensed nurse employed at a rural health facility, as specified, for each taxable year beginning on or after January 1, 2027, and before January 1, 2032, in an amount equal to $2,000 per taxpayer per taxable year. The bill would require the Department of Health Care Access and Information to provide an annual list to the Franchise Tax Board of rural health facilities, as specified. Existing law requires any bill authorizing a new tax expenditure, as defined, to include tax credits, 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 include findings and reporting requirements in compliance with this requirement. This bill would take effect immediately as a tax levy.
The Personal Income Tax Law allows various credits against the taxes imposed by that law. 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. This bill would allow, for each taxable year beginning on or after January 1, 2027, and before January 1, 2032, a cost-of-living credit against those taxes to a qualified taxpayer, as defined, in a qualified amount, calculated as provided based on the taxpayer's filing and residence status. The bill would require the amount of the credit exceeding the taxpayer's liability to be credited against other amounts due, if any, and would require the balance to be paid from the Tax Relief and Refund Account and refunded to the taxpayer. By increasing the payments from the Tax Relief and Refund Account, a continuously appropriated fund, the bill would make an appropriation. The Personal Income Tax Law generally defines "gross income" as income from whatever source derived and provides various exclusions from gross income. This bill would, for taxable years beginning on or after January 1, 2027, and before January 1, 2032, provide an exclusion from gross income those amounts received as a refund under the above-described cost-of-living tax credit. This bill would make legislative findings and declarations related to a gift of public funds and other related findings and declarations.
The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws, including, for taxable years beginning on or after January 1, 2014, and before January 1, 2026, a credit for hiring qualified full-time employees, as defined, within a designated census tract or economic development area in an amount equal to 35% of the qualified wages, defined in part as those wages that exceed 150% of minimum wage but do not exceed 350% of minimum wage, paid to those employees multiplied by the applicable percentage for that taxable year. Existing law exempts certain taxpayers from the above-described census tract or economic development area requirement, as specified, and disallows the above-described credit for specified businesses. Existing law repeals the above-described provisions on December 1, 2029. This bill would extend the operative date for the above-described tax credits through taxable years beginning before January 1, 2031. The bill would extend the above-described repeal date to December 1, 2034. Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals that the tax expenditure will achieve, detailed performance indicators, and data collection requirements. This bill also would include additional information required 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 with federal income tax law, generally defines "gross income" as income from whatever source derived, except as specifically excluded, and provides various exclusions from gross income. This bill, for taxable years beginning on or after January 1, 2027, and before January 1, 2032, would exclude from gross income gain received by a qualified taxpayer as a result of the sale or exchange of qualified real property, as defined. The bill would define "qualified taxpayer" to mean an individual who is 55 years of age or older on the date of the sale. The bill would define "qualified real property" to mean real property satisfying certain conditions, including the requirement that the property was used by the qualified taxpayer as their primary residence, as specified, and that the property is sold to a natural person. Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals that the tax expenditure will achieve, detailed performance indicators, and data collection requirements. This bill also would include additional information required for any bill authorizing a new tax expenditure. This bill would take effect immediately as a tax levy.
(1) The California Constitution establishes the Budget Stabilization Account and requires the Controller to transfer from the General Fund to the account, no later than October 1 of each fiscal year, a sum equal to 1.5% of the estimated amount of General Fund revenues for that fiscal year. The Department of Finance is required to report specified information to the Legislature, including (A) an estimate of the amount of General Fund proceeds of taxes that may be appropriated for that fiscal year, (B) an estimate of the portion of that amount that is derived from personal income taxes paid on net capital gains, and (C) the portion of the estimate in (B) that exceeds 8% of the estimate made in (A) . Notwithstanding the requirement for the Controller to transfer 1.5% of General Fund revenues for each fiscal year to the account, for the 2015–16 fiscal year to the 2029–30 fiscal year, inclusive, the California Constitution instead requires 50% of that amount and 50% of the amount described in (C) to be transferred to the Budget Stabilization Account. The California Constitution requires the remaining 50% to be appropriated for unfunded liabilities and other specified purposes. Commencing with the 2027–28 fiscal year, this measure would require the Department of Finance to report the sum of the portion of the estimate in (B) that exceeds 8%, but does not exceed 10%, of the estimate in (A) and 150% of the estimate in (B) that exceeds 10% of the estimate in (A) . The measure would require 50% of that sum and 50% of the amount equal to 1.5% of the estimated amount of General Fund revenues for the fiscal year to be transferred to the Budget Stabilization Account each fiscal year until the 2039–40 fiscal year, and it would require the remaining 50% to be appropriated for unfunded liabilities and other specified purposes. The measure would add repayment of federal loans relating to unemployment insurance to the purposes for which the remaining 50% may be appropriated. The California Constitution limits the amount that is required to be transferred to the Budget Stabilization Account for any fiscal year from exceeding an amount that would result in a balance in the account that, when the transfer is made, exceeds 10% of the estimated amount of the General Fund proceeds of taxes for the fiscal year, as specified. This measure would increase that limit to 20% of the estimated amount of the General Fund proceeds of taxes for the fiscal year. (2) The California Constitution creates the Public School System Stabilization Account in the General Fund and requires the Controller to transfer specified amounts from the General Fund to the account. Upon a proclamation by the Governor declaring a budget emergency, the Legislature may suspend or reduce transfers to the Budget Stabilization Account or Public School System Stabilization Account, return funds in the Budget Stabilization Account to the General Fund, and appropriate funds in the Public School System Stabilization Account for the support of school districts and community college districts. The California Constitution defines "budget emergency" for these purposes to mean (A) the existence of conditions of disaster or extreme peril, as declared by the Governor, or (B) a determination by the Governor that estimated resources are inadequate to fund General Fund expenditures for the current or ensuing fiscal year at a level equal to the highest amount of total General Fund expenditures estimated at the time of enactment of any of the three most recent Budget Acts. The California Constitution requires the Governor, within the first 10 days of each calendar year, to submit to the Legislature a proposed budget for the fiscal year commencing on July 1 of that calendar year. Under existing statutory law, the Director of Finance is required to submit a revised budget proposal to the Legislature on or before May 14. Under this measure, the revised budget proposal submitted on or before May 14, or any other budgetary revision required to be submitted to the Legislature, would constitute the Governor's proclamation of a budget emergency if the above-described conditions for a budget emergency exist, and if the budgetary revision proposes to suspend or reduce transfers from the General Fund to the Budget Stabilization Account or Public School System Stabilization Account, return funds in the Budget Stabilization Account to the General Fund, or appropriate money from the Public School System Stabilization Account. (3) The California Constitution prohibits the total annual appropriations subject to limitation of the State and of each local government from exceeding the appropriations limit of the entity of government for the prior year, adjusted for the change in the cost of living and the change in population. The California Constitution defines "appropriations subject to limitation" of the State for these purposes. This measure would exclude both of the following from the appropriations subject to limitation of the State commencing with the 2027–28 fiscal year: (A) transfers to the Budget Stabilization Account; and (B) transfers to a General Fund reserve account established by the Legislature known as the Projected Surplus Temporary Holding Account, provided that the amount not subject to limitation may not exceed 10% of the amount of General Fund proceeds of taxes for the applicable fiscal year. Funds withdrawn, transferred, or appropriated from those reserve accounts, if they were not counted previously as appropriations subject to limitation of the State when deposited, would constitute appropriations subject to limitation of the State in the fiscal year in which the withdrawal, transfer, or appropriation occurs.
The Personal Income Tax Law, in modified conformity with federal income tax law, allows various deductions from gross income in calculating adjusted gross income. This bill, for taxable years beginning on or after January 1, 2026, would allow a deduction from gross income for any qualified fitness benefit provided by an employer to an employee, as specified. The bill would define "qualified fitness benefit" as a uniform stipend amount to all full-time employees for fees or dues for membership in a fitness center, health club, or gym, except as specified. Existing law requires specified employers to contribute to the Unemployment Fund based on wages paid for employment. Existing law defines "wages" for this purpose, as provided, and excludes from that definition, among other things, remuneration in excess of $7,000 paid to an individual by an employer during any calendar year, with respect to employment. This bill would additionally exclude from that definition of wages any qualified fitness benefit provided by an employer to an employee, up to $600 per year, as specified. Existing law requires a bill authorizing a new tax expenditure to contain, among other things, specific goals the tax expenditure will achieve, detailed performance indicators, and data collection requirements. This bill would include additional information required for any bill authorizing a new tax expenditure. This bill would take effect immediately as a tax levy.
(1) Existing law sets forth various provisions on the use of state funds, including by prohibiting the use of a grant of state funds to assist, promote, or deter union organizing. This bill would prohibit a state agency from expending funds for the study, planning, testing, design, implementation, administration, or evaluation of a tax, fee, assessment, or charge based on vehicle miles traveled (vehicle miles purposes) . The bill would require the reversion of funds appropriated from the General Fund to another fund for vehicle miles purposes and would require the deobligation of encumbered but unexpended funds for those purposes. The bill would require the Department of Finance to, within 60 days of January 1, 2027, identify all relevant appropriations and ensure their reversion or transfer. The bill would additionally prohibit any future Budget Act from appropriating funds for vehicle miles purposes unless expressly authorized by statute, as described. (2) Existing law authorizes the legislative body of a city or county to impose various taxes, including occupancy taxes and sales and use taxes. Existing law also prohibits a city and county form imposing certain taxes, such as a tax upon income. This bill would prohibit a city, county, or any political subdivision thereof from imposing a tax, fee, assessment, or charge, that is calculated, in whole or in part, based on the number of miles traveled by a motor vehicle. The bill would not prohibit the collection of tolls for the use of specific facilities, as provided. The bill would provide that any existing program, pilot program, regulation, or administrative action inconsistent with this prohibition is void and unenforceable. The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities.
Existing law prohibits a local agency from entering into any form of agreement that would result, directly or indirectly, in the payment, transfer, diversion, or rebate of any tax revenue resulting from the imposition of a sales and use tax under the Bradley-Burns Uniform Local Sales and Use Tax Law to any person for any purpose when the agreement results in a reduction in the amount of revenue under the Bradley-Burns Uniform Local Sales and Use Tax Law that, in the absence of the agreement, would be received by another local agency and the retailer continues to maintain a physical presence within the territorial jurisdiction of that other local agency. Existing law also requires a local agency entering into an agreement that results in a reduction of the amount of revenue under the Bradley-Burns Uniform Local Sales and Use Tax Law that, in the absence of the agreement, would be received by another local agency to take certain actions with respect to that agreement, including posting the proposed agreement on its internet website for at least 30 days prior to ratification or approval of that agreement by its governing body. This bill would prohibit a person from paying compensation to a consultant with respect to a specific tax sharing agreement, as defined, that exceeds the lower of 5% of the total tax revenues shared pursuant to the tax sharing agreement and $250,000. The bill would define a tax sharing agreement for this purpose to mean any agreement that would result, directly or indirectly, in the payment, transfer, diversion, or rebate of any tax revenue resulting from the imposition of a sales and use tax under the Bradley-Burns Uniform Local Sales and Use Tax Law to any person for any purpose. The bill would exclude from these provisions agreements between a local agency and a member of the agency's staff directly employed by the jurisdiction or technical consultants providing noncompensated advisory services. The bill would apply these provisions only to agreements entered into on and after January 1, 2027. The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities.
