AB2712:v98#DOCUMENTBill Start
Amended
IN
Assembly
May 07, 2020
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CALIFORNIA LEGISLATURE—
2019–2020 REGULAR SESSION
Assembly Bill
No. 2712
Introduced by Assembly Member Low
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February 20, 2020 |
An act to add Chapter 13 (commencing with Section 18992) to Part 6 of Division 9 of the Welfare and Institutions Code, relating to public social services.
LEGISLATIVE COUNSEL'S DIGEST
AB 2712, as amended, Low.
California Universal Basic Income (CalUBI) Program.
Existing law establishes the State Department of Social Services and requires the department to administer various various economic and 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 Franchise Tax Board in the Government Operations Agency to, among other things, administer state personal income taxes and corporation franchise and income taxes. Existing law also establishes the California Department of Tax and Fee Administration (department) in the Government Operations Agency to administer various taxes and fees.
This bill would require the department, Franchise Tax Board subject to an appropriation by the Legislature, to administer the California Universal Basic Income (CalUBI) Program, under which a California resident who is 18 years of age or older shall
older, and who meets specified requirements, may elect to participate in the program to receive a universal basic income of $1,000 per month, except as specified.
month. The bill would require, among other things, that the resident has lived in the state for at least the last 3 consecutive years and that the resident’s income does not exceed 200% of the median per capita income for the resident’s current county of residence, as determined by the United States Census Bureau.
The bill would define universal basic income to mean unconditional cash payments of equal amounts issued monthly to individual residents of California with the intention of ensuring the economic security of recipients. The bill would authorize the department require the Franchise Tax Board to adopt regulations to implement the program, and would state the intent of the Legislature to fund the CalUBI Program with a value-added tax of 10% on goods and services, as specified. program and would require the department, on or before July 1, 2024, to submit a report to the Legislature on the feasibility of establishing a new state tax to finance the
program. The bill would prohibit income received from the program from being considered taxable income for the purpose of state income taxes, and from being considered in calculating any state tax credits. The bill would also prohibit income received from the program from affecting income eligibility for any programs administered and funded by the state.
This bill would state that its provisions are severable.
Digest Key
Vote:
MAJORITY
Appropriation:
NO
Fiscal Committee:
YES
Local Program:
NO
Bill Text
The people of the State of California do enact as follows:
SECTION 1.
Chapter 13 (commencing with Section 18992) is added to Part 6 of Division 9 of the Welfare and Institutions Code, to read:
CHAPTER
13. California Universal Basic Income (CalUBI) Program
18992.
This chapter shall be known, and may be cited, as the California Universal Basic Income Act.18992.1.
(a) Subject to an appropriation by the Legislature for this purpose, the State Department of Social Services Franchise Tax Board shall administer the California Universal Basic Income (CalUBI) Program. Under the CalUBI Program, a A California resident who is 18 years of age or older shall
older, and who meets the requirements in subdivision (b), may elect to participate in the CalUBI Program to receive a universal basic income of $1,000 per month, except as specified in subdivision (b). month.(b)California residents who are 18 years of age or older and receiving benefits under the Medi-Cal program, the County Medical Services Program, the CalFresh program, the CalWORKs program, or Unemployment Insurance shall not be eligible to receive a universal basic income under the CalUBI Program.
(b) A California resident is eligible to participate in the CalUBI Program if they meet all of the following requirements:
(1) The resident currently resides in California.
(2) The resident has lived in California for at least the last three consecutive years.
(3) The resident is not currently incarcerated in a county jail or the state prison.
(4) The resident’s income does not exceed 200 percent of the median per capita income for the resident’s current county of residence, as
determined by the United States Census Bureau.
(c) Upon an individual’s registration for the CalUBI Program, the Franchise Tax Board shall notify the individual in writing that CalUBI Program may affect their eligibility for certain federal welfare programs.
18992.2.
For purposes of this chapter, “universal basic income” means unconditional cash payments of equal amounts issued monthly to individual residents of California with the intention of ensuring the economic security of recipients.18992.3.
The department may Franchise Tax Board shall adopt regulations to implement this chapter.18992.4.
(a) Income received from the CalUBI Program shall not be considered taxable income for the purpose of state income taxes, and shall not be considered in calculating any state tax credits.(b) Income received from the CalUBI Program shall not affect income eligibility for any programs administered and funded by the state.
SEC. 2.It is the intent of the Legislature to fund the CalUBI Program with a value-added tax of 10 percent on goods and services, except medicine, medical supplies and equipment, educational materials, including textbooks, tuition or fees for education, food, groceries, and clothing.
SEC. 2.
(a) On or before July 1, 2024, the California Department of Tax and Fee Administration shall submit a report to the Legislature on the feasibility of establishing a new state tax to finance the California Universal Basic Income (CalUBI) Program. The report shall consider the feasibility of establishing a value-added tax on goods and services in the state, an analysis of the feasibility of taxing the sale of services offered in the state, and an analysis of the feasibility of raising
the corporate tax. The report shall also include projections of expected tax revenue.(b) The report required by subdivision (a) shall be submitted in compliance with Section 9795 of the Government Code.
SEC. 3.
The provisions of this act are severable. If any provision of this act or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.