Bill Text: CA AB42 | 2025-2026 | Regular Session | Amended
Bill Title: CalWORKs: CalFresh: eligibility: income and resource exclusions.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2025-02-27 - Re-referred to Com. on HUM. S. pursuant to Assembly Rule 96. [AB42 Detail]
Download: California-2025-AB42-Amended.html
|
Amended
IN
Assembly
February 24, 2025 |
| Introduced by Assembly Member Bryan |
December 02, 2024 |
LEGISLATIVE COUNSEL'S DIGEST
Existing state sales and use tax laws impose a tax on retailers measured by the gross receipts from the sale of tangible personal property sold at retail in this state or on the storage, use, or other consumption in this state of tangible personal property purchased from a retailer for storage, use, or other consumption in this state. The Sales and Use Tax Law provides various exemptions from those taxes.
This bill, on or after January 1, 2026, and before January 1, 2031, would exempt the gross receipts from the sale in this state of, and the storage, use, or other consumption in this state of, baby wipes and child car seats, as defined.
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 would include additional information required for any bill authorizing a new tax expenditure.
The Bradley-Burns Uniform Local Sales and Use Tax Law authorizes counties and cities to impose local sales and use taxes in conformity with the Sales and Use Tax Law, and existing laws authorize districts, as specified, to impose transactions and use taxes in accordance with the Transactions and Use Tax Law, which generally conforms to the Sales and Use Tax Law. Amendments to the Sales and Use Tax Law are automatically incorporated into the local tax laws.
This bill would specify that this exemption does not apply to local sales and use taxes or transactions and use taxes.
Existing law requires the state to reimburse counties and cities for revenue losses caused by the enactment of sales and use tax exemptions.
This bill would provide that, notwithstanding Section 2230 of the Revenue and Taxation Code, no appropriation is made and the state shall not reimburse any local agencies for sales and use tax revenues lost by them pursuant to this bill.
This bill would take effect immediately as a tax levy.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program:Bill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 11157.2 is added to the Welfare and Institutions Code, to read:11157.2.
For purposes of Chapter 2 (commencing with Section 11200) and Chapter 10 (commencing with Section 18900) of Part 6, and notwithstanding any other law, any grant, award, scholarship, loan, or fellowship benefit provided to any assistance unit member for educational purposes, not administered by the United States Department of Education, shall be exempt from consideration as income for purposes of determining eligibility for benefits or calculating grant amounts pursuant to Chapter 2 (commencing with Section 11200). The funds described in this subdivision shall also be exempt as resources for purposes of determining eligibility for benefits or calculating grant amounts pursuant to Chapter 2 (commencing with Section 11200) for 12 months following the receipt of the funds.SEC. 2.
Section 18901.09 is added to the Welfare and Institutions Code, to read:18901.09.
To the extent permitted by federal law, regulation, or guidance, or a waiver thereof, the department shall exercise the option provided in Section 273.9(c)(19) of Title 7 of the Code of Federal Regulations to exclude, for purposes of calculating a household’s income under CalFresh, any type of income that the department excludes when determining eligibility or benefits for cash assistance provided with federal Temporary Assistance for Needy Families (TANF) funds.SEC. 3.
Notwithstanding the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code), the State Department of Social Services shall implement this act through an all-county letter or similar instruction on or before March 1, 2026, until regulations are adopted.SEC. 4.
No appropriation pursuant to Section 15200 of the Welfare and Institutions Code shall be made for purposes of implementing this act.SEC. 5.
If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.(a)On or after January 1, 2026, there are exempted from the taxes imposed by this part, the gross receipts from the sale in this state of, and the storage, use, or other consumption in this state of, baby wipes and child car seats.
(b)For purposes of this section, all of the following definitions apply:
(1)“Baby wipes” means therapeutic or preventative wipes marketed primarily for use on the skin of children.
(2)“Child car seat” means a child restraint device or booster seat that meets the National Highway Traffic Safety Administration standard for child restraint systems under Section 571.213 of Title 49 of the
Code of Federal Regulations.
(c)Notwithstanding any provision of the Bradley-Burns Uniform Local Sales and Use Tax Law (Part 1.5 (commencing with Section 7200)) or the Transactions and Use Tax Law (Part 1.6 (commencing with Section 7251)), the exemption established by this section does not apply with respect to any tax levied by a county, city, or district pursuant to, or in accordance with, either of those laws.
(d)For the purposes of complying with Section 41, the Legislature finds and declares all of the following:
(1)The specific goal, purpose, and objective that the exemption will achieve is to reduce the financial burden of providing necessary health and safety supplies for children.
(2)Detailed performance indicators measure whether the
exemption meets the goal, purpose, and objective described in paragraph (1) are the following:
(A)The number of taxpayers exempting the gross receipts from the sale in this state of, and the storage, use, or other consumption in this state of, baby wipes and child car seats.
(B)The total dollar amount of moneys exempted under this section.
(C)The total number of qualified buyers in each tax bracket for whom a taxpayer claimed an exemption under this section.
(3)On or before March 1, 2027, and annually thereafter, the California Department of Tax and Fee Administration shall analyze the performance indicators in paragraph (2) to the extent information is available, and shall report its findings, in compliance with Section 9795 of the Government Code,
to the Legislature.
(e)This section shall remain in effect only until January 1, 2031, and as of that date is repealed.
Notwithstanding Section 2230 of the Revenue and Taxation Code, no appropriation is made by this act and the state shall not reimburse any local agency for any sales and use tax revenues lost by it under this act.
This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.
