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AB-1338 Public social services programs: eligibility: income: taxation: gross income exclusion.(2021-2022)

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Date Published: 02/20/2021 04:00 AM
AB1338:v99#DOCUMENT


CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Assembly Bill
No. 1338


Introduced by Assembly Member Low

February 19, 2021


An act to add Section 17131.11 to the Revenue and Taxation Code, and to add Section 11008.16 to the Welfare and Institutions Code, relating to public social services.


LEGISLATIVE COUNSEL'S DIGEST


AB 1338, as introduced, Low. Public social services programs: eligibility: income: taxation: gross income exclusion.
(1) Existing law establishes the State Department of Social Services and requires the department to administer various public social services programs, including the California Work Opportunity and Responsibility to Kids (CalWORKs) program, under which each county provides cash assistance and other benefits to qualified low-income families and individuals, and the CalFresh program, under which supplemental nutrition assistance benefits allocated to the state by the federal government are distributed to eligible individuals by each county. Existing law establishes the State Department of Health Care Services, which administers the Medi-Cal program, under which qualified low-income individuals receive health care services, and provides that health care is a component of public social services. Existing law sets forth eligibility requirements for these public social services programs, and provides that certain moneys, including the value of any education-related loan or grant to any undergraduate student, as specified, or reparation payments made by the federal United States or Canadian government to persons of Japanese ancestry who were interned during World War II, is not considered income or resources for purposes of determining eligibility or the amount of those benefits.
To the extent authorized under federal law, and subject to federal approval, this bill would exclude financial assistance, such as wages and cash transfers, that is received for a period of no more than 60 months, and that is provided to a person who is enrolled in a specified program or research project, from being considered income or resources for purposes of determining eligibility to receive benefits or the amount of those benefits under any public social services program. Because counties are generally responsible for making eligibility determinations for these public social services programs, and this bill would expand eligibility, the bill would impose a state-mandated local program.
(2) The Personal Income Tax Law and the Corporation Tax Law, in conformity with federal income tax law, generally define “gross income” as income from whatever source derived, except as specifically excluded, and provide various exclusions from gross income.
This bill, for taxable years beginning on or after January 1, 2021, would exclude from gross income, for personal income tax purposes, financial assistance that is provided to a taxpayer who is enrolled in a program or research project, as specified above.
(3) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: YES  

The people of the State of California do enact as follows:


SECTION 1.

 Section 17131.11 is added to the Revenue and Taxation Code, to read:

17131.11.
 For taxable years beginning on or after January 1, 2021, gross income does not include any financial assistance that is provided to a taxpayer who is enrolled in a program or research project, as described in Section 11008.16 of the Welfare and Institutions Code.

SEC. 2.

 Section 11008.16 is added to the Welfare and Institutions Code, to read:

11008.16.
 (a) Financial assistance, including wages, cash transfers, or gifts, that is received for a period of no more than 60 months, and that is provided to a person who is enrolled in a program or research project, as described in paragraphs (1) to (3), inclusive, of subdivision (b), is not considered income or resources for purposes of determining eligibility to receive benefits or the amount of those benefits under any public social services program set forth under this division.
(b) The program or research project shall do all of the following:
(1) Investigate the impacts of policies or programs designed to reduce poverty, promote social mobility, or increase financial stability for California residents.
(2) Include an explicit plan to collect data and evaluate the program or research project that is developed before participants in the study are enrolled in the program or project.
(3) Identify a research team to oversee the evaluation of the program or research project.
(c) This section shall be implemented only to the extent authorized under federal law and subject to federal approval.

SEC. 3.

 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.