1995 Significant Legislation
Requires health care service plans and disability insurance contracts to offer benefits for severe mental illness that are equal to the benefits for treatment of all other physical diseases and disorders.
Allows the California Life and Health Insurance Guarantee Association to delegate the association's "administration" as part of the powers and duties that may be delegated to a corporation, association, or other organization.
Establishes the Department of Corporations (DOC) to establish a toll free number for filing of grievances and complaints by enrollees concerning health maintenance organizations, as specified. Allows DOC to assess administrative penalties of up to $250,000 for repeated failure to respond to grievances. Requires DOC to conduct on-site medical surveys of HMOs every 3 years. Appropriates $1,444,000 from State Corporations Fund.
Requires that every health care service plan and nonprofit hospital service plan contract provide continuation of health care benefits for specified former employees, eliminating the requirement that employers offer this continuation of coverage. Requires employers to notify former employees or spouses of the availability of the continuation benefits. Provides requirements and limitations as to the premiums charged. Allows for termination of coverage if the employer terminates its group coverage with the insurer or plan.
Clarifies the schedule for phasing in the small group health insurance risk adjustment rating factor that becomes effective July 1, 1996. Allows a California Major Risk Medical Insurance Board to develop and implement health coverage programs for persons not adequately covered by existing private and public health care delivery systems.
Permanently exempts health care service plans operated by any city, county, city and county, public entity, local political subdivision, or by a public joint labor-management trust governed by a board of trustees from licensing requirements under the Knox-Keene Act. Adds self-insured reimbursement plans to the exemption.
Prohibits health insurers and health plans from providing different terms or benefits on the basis of genetic characteristics, protects the privacy of genetic tests, and establishes penalties. Makes it a crime punishable by administrative, civil and/or criminal penalties to negligently or willfully disclose genetic test results to a third party.
Defines "out-of-area coverage" for purposes of the definition of basic health care services under the Knox-Keene Health Care Service Plan Act of 1975 to include certain urgently needed services. Requires that enrollees be permitted to select as a primary care physician any available primary care physician who contracts with the plan in the service area, as defined, where the enrollee lives or works.
Requires health care service plan contracts and every group or individual policy of insurance providing coverage under an employer-sponsored plan to offer continued coverage to individuals formerly belonging to an eligible class, subject to certain specified requirements and restrictions.
Directs the Department of Corporations to establish a toll-free telephone number to receive complaints regarding health care service plans, and prohibits health care service plans and disability insurers from basing a person's compensation on the number of claims or the cost of services denied authorization or payment. Provides that the toll-free telephone provisions of the bill become effective only if SB 689, which revises the licensing fee schedule for health care service plans and specialized health care service plans, is enacted.
Requires health insurers which provide group coverage to provide a variety of federal Food and Drug Administration-approved prescription contraceptive benefits designated by the plan, as specified, if they provide coverage for outpatient prescription drug benefits.
Provides for the future regulation of pharmaceutical benefits provided by specialized health care service plans, and adopts disclosure requirements in cases where pharmacists receive financial incentives for switching prescribed drugs.
Requires health insurers to file with their regulators a written policy relating to continuity of care for new enrollees receiving services from a non-participating provider. Requires notice of the written policy to be provided to all new enrollees, except those who are not eligible. Provides that the written policy does not apply to an enrollee offered an out-of-network option or other opportunity to continue with a previous health plan or provider.
Requires the Corporations Commissioner to create a public, nonprofit health foundation to receive the assets of any nonprofit health care service plan that has converted to for-profit status or restructured organizationally.
Adds 2 additional members to the Health Care Service Plan Advisory Committee: a registered nurse employed by a plan to provide direct patient care and a health care worker or provider (other than a physician or registered nurse) employed by a plan to provide direct patient care.
Revises provisions in law relating to denial of coverage by health care service plans and disability insurers for experimental treatments for enrollees with a terminal illness, requires plans to establish an internal review process, and permits plans to establish an independent review process which, if followed, limits the plan's liability in any judicial or regulatory challenge of a coverage determination.
Requires the Department of Corporations to review Department of Health Services' medical audits of primary care case management plans and to hold a public hearing prior to issuing a license authorizing a plan to operate as a health care service plan.
Requires the Department of Corporations to study and report to the Legislature regarding the number of full service health care service plans that are accredited by the National Committee on Quality Assurance.
Requires health care service plan agreements to include a provider grievance system. Requires a plan, entities contracting with a plan, and providers to each be responsible for its own acts or omissions of, or the costs of defending others, as specified. Requires notification to enrollees when provider groups are terminated by a plan.
Requires various insurance plans and policies that provide maternity coverage to include a set minimum amount of hours of inpatient care coverage and certain other care, contingent upon the type of delivery and/or other external factors, for the mother and the newborn.
Requires the Director of Health Services to convene a technical advisory committee to use California Cancer Registry information in formulating an annual report on breast and prostate cancer survival rates by health care plan or insurer.
Requires the Corporations Commissioner to adopt regulations establishing a uniform credentialing application for use by plans, independent practice associations, medical groups and individual providers.
Enacts the California Family Health Care Plan Act requiring the Department of Health Services to establish a comprehensive program to provide perinatal services to pregnant women, and child health care to children 18 years of age or under, for all women and children who are ineligible for the Medi-Cal program and who do not have health insurance coverage for all the services provided for under the bill.
Repeals the mandate to offer earthquake insurance for residential property. Reinstates the mandate in the future if the Insurance Commissioner certifies that a federal program has been implemented. Specifies the reasons an insurer may choose to not renew a policy.
Requires the Department of Insurance to establish a residential grant and loan program to pay for retrofitting low- and moderate-income homes. Makes owner-occupied dwellings eligible for both grants and loans, and dwellings that are not owner-occupied only eligible for loans in order to minimize the risk of earthquake damage to those dwellings and thereby reduce the costs of residential earthquake insurance. Requires the Department of Insurance to match any federal funds available for retrofitting, if any exist. Appropriates $4.4 million from the California Residential Earthquake Recovery Fund to the Department of Insurance for this program. Goes into effect on January 1, 1996 and sunsets on July 1, 2000.
Specifies that earthquake policy insurers are mandated to offer coverage against the risk of loss or damage from the peril of earthquake on the primary dwelling, excluding appurtenant structures and allows the California FAIR Plan Association to provide earthquake property insurance coverage in conjunction with the issuance of a policy of basic residential property insurance, as specified.
Requires the Department of Insurance (DOI) to establish a pilot program for mediating disputes over claims arising out of the Northridge earthquake of 1994. Requires the DOI to establish standards for mediators after consulting with consumer groups, policyholder groups, insurers, and the State Bar. Allows the commissioner to set a fee of $400 for each dispute mediated. Sunsets July 1, 1998.
Provides that a person may for a fee adopt, publish, or use a geographically based earthquake assessment system or program for the purpose of requiring earthquake insurance in connection with a loan secured by a condominium project or an individual unit of a condominium project unless the analytical assumptions and methodology used in the assessment have been approved by the Insurance Commissioner, as specified.
Creates the California Earthquake Authority which is allowed to issue policies of basic residential earthquake insurance under specified conditions. These conditions include a determination by the Internal Revenue Services that the authority is exempt from federal income tax, a requirement for certain commitments from insurers and reinsurers, and enactment of subsequent statute that expressly allows the authority to issue policies of insurance. Provides for the authority to obtain its initial operating capital from insurers representing not less than 75% of the market for residential property insurance in California. If the authority's available capital is reduced to certain levels through payment of claims, the authority would be able to assess participating insurers in order to raise additional funds. Requires the authority to issue revenue bonds or provide other debt financing if the authority's resources are exhausted following an earthquake, to be repaid by surcharges on authority policyholders, up to specified amounts.
[PAGE 612]Appropriates $500,000 from the California Residential earthquake Recovery Fund. Provides for a portion of investment income from the California Earthquake Authority Fund created by the bill to be placed into a subaccount to be available for grants and loans to dwelling owners for retrofit purposes.
Redefines the minimum leverage necessary for an insurer to satisfy the mandate to offer earthquake coverage to homeowners. Allows insurers to sell alternative or additional coverages, as long as the basic policy is one of the alternatives offered. Provides that the FAIR Plan is to offer the newly-defined basic insurance policy specified in the bill, subject to notice and disclosure requirements. Requires a detailed notice/disclosure be provided by insurers at the time a new policy is sold, and to accompany renewal notices when no-frills policy is being offered to policyholders who previously had a broader coverage.
Provides technical corrections to legislation enacted last year involving guaranteed investment contracts, and allows life insurers to issue products associated with a portfolio not owned or possessed by the insurer.
Requires title insurers that are associated with an underwritten title company (UTC) to be liable for the UTC's escrow or subescrow account shortages in the event that it is placed into bankruptcy, receivership, or conservatorship by the Department of Insurance.
Grants immunity to surplus line brokers and other insurance agents and brokers relating to the placement of insurance if the insurance is placed with an admitted insurer, or an non-admitted insurer on the Department of Insurance's approved list of surplus line insurers.
Allows agency management and business practice courses to satisfy a portion of the continuing education requirements for insurance agents and brokers, and repeals the sunset on the current continuing education program.
Requires the Insurance Commissioner to issue a report to the Governor and the Legislature containing an annual workplan that identifies and describes major regulatory, legislative and other significant initiatives the commissioner intends to direct the department to pursue in that calendar year. Deletes a reporting requirement that generally duplicates existing law.
Provides that the Secretary of State is to file a certificate of redomestication of an insurance corporation if redomestication has been approved by the Insurance Commissioner. Also states this is declaratory of existing law.
Limits an insurer's ability to cancel or not renew a homeowner's policy if any claim that affects insurability due an officially declared disaster is still pending and unresolved against the insurer, and prevents the homeowner from securing replacement coverage from another insurer, as specified.
Makes it a misdemeanor/felony for a contractor to offer an insurer or its agents any fee, commission, profit sharing, etc., for referring an insured to that contractor where the amount exceeds $400 and a misdemeanor in all other cases.
Allows an insurer having admitted assets in excess of $500 million to acquire any foreign investment, subject to specified restrictions, and increases the percentage of total admitted assets that may be foreign investments from 4% to 12% for these insurers. Also authorizes insurers having admitted assets between $100 million and $500 million to acquire an increased percentage of foreign investments, as specified.
Allows the State Treasurer to issue revenue bonds at the request of the California Insurance Guarantee Association (CIGA) following a catastrophic disaster to help pay claims of insolvent insurers. Provides that the bonds would be repaid by assessments imposed on CIGA member insurers.
Requires title insurers liable for deficiencies in escrow accounts held by insolvent underwriter title companies to deposit their proportionate share directly into an account established for the purpose of reimbursement to escrow account holders within 3 months of written notification.
Enacts The Interstate Insurance Receivership Compact, and requires California to be a member of the compact and the Interstate Insurance Receivership Commission which is to promote uniform receivership laws and operations and coordinate actions between insurer receiverships and guaranty associations.
Requires the Insurance Commissioner to report on an annual basis and in accordance with the reporting requirements for special investigative units on their efforts, including procedures, in determining, investigating and reporting suspected fraudulent claims.
Encourages admitted insurers to make community development investments designed to promote job creation, small business development or microenterprise development in low-income or very-low-income communities. Requires the Insurance Commissioner to compile information and to report concerning these investments by insurers.
Requires the Insurance Commissioner to adopt regulations to encourage the purchase and maintenance of flood insurance and to consult with specified interested parties in developing those regulations. Requires the Department of Insurance to monitor efforts undertaken to promote the purchase and maintenance of flood insurance.
Prohibits, except for disaster assistance that would not be a substitute for insurance and certain emergency assistance, that disaster assistance from being provided to a person required to maintain flood insurance by state or federal law, who has cancelled or failed to maintain that coverage.
Provides homeowners' associations with the power to require family day care homes located on their property to maintain and pay for liability insurance. Provides that the family day care home can be required to pay for coverage of the homeowners' association.
Requires the Department of Insurance licensees to have their license number printed on business cards, written price quotations, and printed advertisements starting January 1, 1997. Does not apply to certain advertisements of motor clubs. Allows the Department of Insurance to levy a fine for violation of its provisions which is to be deposited into the Insurance Fund.
Allows the Insurance Commissioner to establish an export list identifying the lines of insurance that are currently not available from admitted insurers, as specified. Provides that the list may not include auto insurance, homeowner's insurance or any insurance written by the California FAIR Plan.
Allows medical insurers to impose remedial underwriting actions on policyholders pursuant to advisory committee recommendations, and exempts such actions from administrative and judicial review, as specified.
Provides that an insurer must attach a premium and loss history report for the preceding 5 years to the notice of non-renewal, for certain types of commercial insurance, and to the notice of workers' compensation policies.
Allows admitted insurers to assume or reinsure the liabilities of non-admitted insurers, so long as the transaction does not circumvent specified provisions of law. Specifies procedures for resolving outstanding unpaid premiums and how they would be set off against insurance company liability during liquidation and rehabilitation proceedings.
Allows all insurance companies to deposit with the Insurance Commissioner, where applicable, securities in "book entry" form, in a manner similar to that authorized for security deposit by workers' compensation insurers.
Includes certified financial planners within the definition of "investment advisor" which has the effect of exempting them from licensure under the Department of Insurance as a life and disability insurance analyst.
Allows mortgage guarantee insurers to cover a portfolio of junior liens, rather than covering individual loans. Provides that the risk for the entire portfolio could not exceed 20% of the original principal amount of mortgage loans secured by junior liens.
Changes the reporting requirements for liability insurers providing coverage to public entities and malpractice insurers to provide certain statistics to the Insurance Commissioner, from an annual basis to an "as requested" basis. Repeals provisions of the Insurance Code requiring the Department of Insurance to maintain a local government information and statistical analysis section in its organization for the purpose of collecting certain data received from insurers.
Allows the Department of Insurance to request an insurer/licensee to provide copies of any and all documents regarding a complaint or inquiry, except as specified. Allows the Department of Insurance to charge a fee to insurers that fail to provide the requested information in a timely manner.
Requires the Public Utilities Commission to allow specified rate discount programs to companies or industries whose facilities are located on a federal military base that has been scheduled to be or actually closed or realigned since January 1, 1992. Sunsets January 1, 1999.
Allows a lead agency responsible for the preparation and certification of a closed military base reuse plan to use the physical conditions present at the time the closure decision was made as a "baseline" for evaluating environmental impacts, requiring the consideration of the plan's effects relative to that baseline so as to grandfather in existing conditions on the base, as specified.
Modifies existing law to allow the use of Petroleum Violation Escrow Account funds to rehabilitate non-Department of Defense Finance and Accounting Service Center-related structures at Norton Air Force Base.
Makes numerous revisions to existing Military Base Redevelopment Law which include expanding the definition of blight, altering school pass-through formulas, and deleting the requirement for a fiscal review committee.
Requests the federal Base Realignment and Closure Commission, the President and Congress to take steps necessary to keep the Point Mugu Naval Air Weapons Station off of the military base closure list.
Requests the President and Congress to reject the entire base-closure list to be submitted by July 1, 1995 by the Defense Base Closure and Realignment Commission. Requests the President, in consultation with the Congress, to develop a more balanced policy with regard to the security needs of the United States.
Limits the number of Supplemental Security Income/State Supplemental Payment (SSI/SSP) recipients for whom an individual can become the representative payee and SSP payments made to persons whose eligibility for the SSI program is based solely on addiction to controlled substances.
Requires persons receiving AFDC aid payments to participate in the Greater Avenues for Independence (GAIN) program or in another approved training program. Provides for the reduction in the maximum aid payment made under the program, as specified.
Requires an unmarried, under 18 AFDC-eligible parent and infant to live with a parent, legal guardian, or other adult relative or in a supportive living arrangement, as a condition of receiving AFDC payment grants. Allows exceptions in specified cases. Provides that the grandparent's income would be considered available to the teen parent, but not the grandchild. Requires an evaluation and implementation is subject to availability of federal funds and appropriate federal waivers. Sunsets October 1, 1999.
Extends the 1997 sunset on the "managed care" contract option in the IHSS program that was established in the 1993 trailer bill to July 1, 2001. Also increases the share of state savings that a county may retain from 55% to up to 100%, reduces to 10% the discount the contractor must agree to, permits non-elderly and more severely impaired clients to voluntarily participate and permits the county to shift to the contractor the costs of conducting quality control and utilization review audits.
Provides that relative foster parents of a child who seek adoption of the child would continue to receive foster care payments during the period between the termination of parental rights and the finalization of the adoption.
Eliminates 2 existing programs, the child care disregard and the supplemental child care program, and replaces them with a new program under which the county welfare department would make advance payments for child care. Also extends the period of eligibility for transitional child care-type benefits beyond 12 months, as specified.
Requires the Department of Social Services to implement a pilot program to postpone applications for AFDC benefits for 45 days during which time the applicant is required to participate in the newly established AFDC Job Search Program. Provides for regular AFDC benefits to applicants unemployable after participating in the program for 60 days.
Alters the amount of tobacco tax (Proposition 99) revenue deposited in various accounts for the 1995-96 fiscal year only to fund indigent health care services. Appropriates $63.7 million of Proposition 99 funds from the altered accounts. Also transfers the provisions governing the perinatal outreach program from the Welfare and Institutions Code to the Health and Safety Code.
Requires the Department of Health Services to establish a pilot program at up to 5 sites to integrate the delivery and funding of long-term care services, and to evaluate the results. Provides that each site would be a long-term care services agency which would be paid a capitated rate and would control utilization of services.
Enacts the Children's Interagency Services Act of 1995 to require all state and county agencies serving children to collaborate at the policy, management and service levels to provide a coordinated, goal-oriented system of care.
Requires the Department of Health Services to implement the California Children's Health Program to provide comprehensive health care service to children up to 18 years of age with family incomes under a certain amount.
Expands the laws permitting the disclosure of confidential information to law enforcement concerning social services applicants and recipients against whom exist outstanding misdemeanor and felony arrest warrants.
Requires child care providers subject to Trustline registration to also secure 6 hours of child development education and training, implements a teen pregnancy disincentive which would require pregnant and parenting teens to live with their parents with certain exemptions, and requires the Department of Social Services to implement a pilot program to inform AFDC recipients of the benefits of employment.
Requires the Department of Social Services (DSS) to apply for any federal demonstration funds appropriated to implement a pilot program on child support assurance which would guarantee a child support payment to families with established support orders under certain conditions. Provides that the director of DSS would apply only if it is determined that the program would be cost neutral to the state and participating counties. In addition, requires DSS to report annually to the Legislature on the status of all demonstration projects.
Provides that, for the purposes of computing an AFDC grant, a county shall deduct valid business-related expenses from business income. Requires the Employment Development Department to convene a Micro-Enterprise Coordinating Council. Requires the Department of Social Services, if federal approval is obtained, to establish 3-year demonstration projects to provide entrepreneurial training and technical assistance to AFDC recipients participating in GAIN.
Allows counties to make restricted payments to AFDC recipients, in lieu of cash aid, under the regular AFDC program as well as under the Homeless Assistance Program. Also prohibits a landlord from retaining any portion of a security deposit or requiring last month's rent in advance if he/she accepts restricted payment of rent.
Requires the Department of Health Services to establish a comprehensive children's health program to children from birth to 18 years of age with family incomes up to 250% of the poverty level. States intent to address the needs of the uninsured who do not have Medi-Cal and to ensure access to health services.
Requests that the Department of Social Services apply for participation in a federal child support assurance pilot program which would guarantee a child support payment to families with established support orders under certain conditions.
Permits counties to discontinue general assistance (GA) benefits, under specific circumstances, to able-bodied, mentally competent individuals after having received aid for 3 months, whether or not the months are consecutive, during a 12-month period.
Also expresses legislative intent to reverse the decision in the case of Washington v the Board of Supervisors of San Diego County (18 Cal. App. 4th 981). In this decision, the court found that, under existing law, the county could not discontinue GA after 3 months during a 12-month period.
Requires the Department of Social Services to implement a demonstration project in Los Angeles County, as specified, that would require the county welfare department to impose specified sanctions against families that receive aid under the AFDC program when they have children in the sixth grade or higher who are truant.
Imposes a 2-year limit on the eligibility of any able-bodied adult to receive AFDC aid and other benefits. Also imposes a requirement that a child attend school or a job training program except as specified.
Requires the district attorney to pay AFDC families any amount collected as current child support; retroactively eliminate the 70% cap on the cost-of-living allotment (COLA) in the Minimum Basic Standard of Adequate Care; requires the Department of Social Services to re-evaluate the adequacy of the needs standards every 3 years; and deletes the automatic reduction to COLAs in years when General Fund appropriations for AFDC are reduced.
Expands the scope of the state AFDC-Foster Care program by authorizing payments on behalf of otherwise eligible children living with relatives, including legal guardians, provided the relative's income is below a level to be set at approximately 300% of the AFDC minimum basic standards of adequate care.
Allows Los Angeles County to implement a 3-year pilot project to provide AFDC and Medi-Cal clients with information concerning sex education, HIV virus, birth control methods, family planning services, risk of drug abuse during pregnancy, and federally qualified health center services.
Requires any recipient who is receiving or has received homeless assistance, through the AFDC program, to have those payments restricted. Also restricts those payments as a condition of the rental agreement if the landlord requires it.
Authorizes a custodial parent to become a participant in any action for child support in which the custodial parent is not a party. Also authorizes a custodial parent to become a participant in any action brought by the district attorney or child support for children receiving AFDC benefits.
Allows Orange and San Bernardino Counties to establish pilot projects which would test the effectiveness of fingerprinting or fingerimaging in eliminating multiple enrollments by public assistance applicants and recipients.
Allows counties to use up to 20% of their funding for the GAIN program to establish pilot projects designed to provide employment related services to non-federal target groups within the AFDC population
Makes a change in the allocation of growth funds under mental health realignment. Increases by $5 million the amount of base restoration funds that go to the counties of Napa, Solano, San Mateo, Marin, and San Francisco, which were protected from large reductions in mental health funding in 1990.
Allows 5 counties to establish 5-year pilot projects consisting of a new category of foster care placement, a "long-term kinship care" category. Provides that in a "kinship care" placement, relatives who are currently receiving the foster care rate would not have to comply with the existing supervision requirements of the court and the county welfare department. Provides that children in the "kinship care" placements would continue to receive the AFDC-Foster Care payment rate.
Allows Riverside and up to 4 other counties to test the impact of requiring 5 days of job club or job search activities, or both, to be completed by adults applying for aid under the AFDC program, as a condition of aid.
Requires the Department of Social Services (DSS) to consult with a maximum of 5 nonsectarian nonprofit organizations which would make applications for food stamps available through existing unemployment offices, homeless shelters, and emergency food distribution sites. Requires DSS to make the applications available to the organizations at cost.
Enacts the California Reaching for Early Access for Children's Health (REACH) Program to provide supplementary primary and preventive health care services to children under 6 years of age. Authorizes the transfer of up to $782,000 from local assistance to state operations for administrative expenses.
Eliminates state SSP benefits for a person whose eligibility is based on his/her addiction to one or more controlled substances or alcohol. Also continuously appropriates from the General Fund an amount equal to a portion of the reduction to licensed alcoholism or drug abuse recovery or treatment facilities, as specified.
If federal approval is obtained, allows a county social services employee to disclose the name and address of elderly or disabled clients to emergency personnel, in the event of a natural or human-made disaster.
Requires the Department of Social services to use the California Law Enforcement Telecommunications System to check the background of in-home care providers. Requires the provider to pay a fee to cover the cost of the background check.
Establishes the fiscal mechanism for a new Partnership Demonstration Program, which would realign the state and county sharing ratios for child welfare services, foster care, adoptions and child abuse prevention programs. Allows an unlimited number of counties to opt to fund 100% of the nonfederal costs of these programs with up to .2234 cent of sales tax revenues that would be deposited in a new Family and Children Services Subaccount. Provides that enactment is contingent upon the passage of AB 906, the local government mandate relief and county fiscal flexibility legislation.
Among others, allows counties various options to reduce their general assistance cash grant costs, including: shared housing provisions, "employable" work requirements, time-limited aid, use of voucher in lieu of cash grants, health care offset, alcohol/drug treatment sanctions and extends the Commission on State Mandates timelines for review of county applications to reduce general assistance based on significant financial distress.
Makes various social services program changes relating to regional grants, AFDC and SSI/SSP grant cuts, Medi-Cal share of cost from grant cuts, teen pregnancy disincentive, homeless assistance, work incentive information dissemination for AFDC recipients, Community Care Licensing Technical Assistance Fund, Community Care Licensing Certification Fund, GAIN Employment Training Fund, Cal-Learn Program non-implementation disincentive, foster care group homes rate change freeze, in-home supportive services personal care option sunset extension, in-home supportive services county reimbursement rate under public authority, independent living center funding, extension for options for recovery, and exemptions to past AFDC grant cuts.
Authorizes the County of San Mateo to adopt and implement a pilot project in which the county would assume full responsibility for the delivery of AFDC, child care, job training, and housing, as specified. In addition, allows any county to require mandatory job search or job training, for parents delinquent on child support payments.
Requires the Department of Health Services to establish a pilot project in up to 5 sites to integrate the delivery and funding of long-term care services, and to evaluate the results. Provides that each site would be a long-term care services agency which would be paid a capitated rate and would control utilization of services.
Requires a foster care provider, in consultation with the county case manager, to ensure to the extent state and county resources are provided that (1) adolescents who remain in long-term foster care receive age-appropriate pregnancy prevention information and (2) foster youth are provided with referrals to health services when the foster youth reaches the age of 18 or is emancipated.
Establishes a 5-county pilot program through which "wrap-around" services, as defined, would be provided to children in, or at risk of, out-of-home placement. Requires the Department of Social Services in consultation with other prescribed entities to implement and oversee the program.
Makes numerous technical and conforming changes to AB 911, Chapter 305, Statutes of 1995, which was enacted as a budget trailer bill to implement the statutory changes necessary in the areas of mental health, developmental services, and the Medi-Cal program.
Requires that any lump-sum SSP payment for prior eligibility shall not exceed 150% of the monthly benefit amount. Also states that no person shall be eligible to any SSP benefits while incarcerated, and requires any representative payee of a SSP recipient to inform the federal Social Security Administration of the incarceration. Sets strict guidelines of eligibility to become a representative payee to an SSI/SSP recipient whose disability is derived from alcohol or drug dependency.
Imposes a 2-year limit on eligibility for AFDC benefits on any able-bodied adult and prohibits individuals under the age of 19 years of age from receiving AFDC unless they reside in the residence of at least one parent or legal guardian. Requires the Department of Social services to seek all appropriate federal waivers.
2. Deletes requirements to serve certain target groups first and allows counties to set priorities, within certain limits. Allows counties to require GAIN participants to concurrently enroll in more than one GAIN activity for a total of 40 hours per week. Requires, however, for parents of children under age 6, 32 hours per week. Also requires that if work is used as a reason to defer GAIN participation, the parent must be paid at the state or federal minimum wage, whichever is greater.
Gives a cash reduction to those recipients of AFDC whose children have not been immunized, or attend school regularly. Also requires participation in community service for adults whose children are above 6 years of age.
Requires the Department of Social Services to stop payments to a recipient of assistance, under the AFDC program, whose child is not attending school or receiving a comparable education through a home program.
Clarifies the limit on Adoptions Assistance Program payments to reflect the net cost of foster care payments that would have been made if the child had not been adopted. Requires periodic review whether children in long-term foster care placements could be adopted. Permits, for 3 years, termination of parental rights prior to the identification of adoptive homes. Directs the Department of Social Services to develop recommendations on the improvement of foster care. Also, bars the use of a parent's signature on or its absence from the child's case plan as evidence in hearings to terminate parental rights, but allows admission of evidence regarding parental cooperation in the provision of services specified in the plan.
Requires the Department of Social Services, in its annual report to the Legislature regarding the status of the Statewide Automated Welfare System, to include copies of all written correspondence from the federal government about any aspect of the project.
Eliminates, under GAIN, the 20-hour weekly participation limit for persons with children under age 6, which would allow them to be concurrently enrolled in education and training programs; requires at least a 6-month break in AFDC before an individual may receive an additional exemption from GAIN for the care of a child under age 3; clarifies the definition of adult education; requires the state to implement federal waivers only for the time period that the waiver is granted.
Extends the July 1, 1996 sunset date for the Personal Care Services Program to July 1, 1999. Also requires the Department of Social Services to convene a work group to develop recommendations to improve the delivery of in-home supportive services.
Relieves counties' maintenance-of-effort requirements established in 1991 in connection with realignment, amounting to approximately $177 million for local indigent health care and $25 million for mental health services. Also makes changes in the minimum levels of support under general assistance.
Requires the Department of Health Services to provide a comprehensive program to provide perinatal services to pregnant women and child health care to children under 18 and all women and children ineligible for Medi-Cal. Also requires specified service plans to provide group and individual coverage for perinatal and child health care services by January 1, 1997.
Authorizes counties to fund aid or services under the general assistance program at the level deemed possible by the board of supervisors. Also provides that the filing of a petition by a county under federal bankruptcy provisions shall constitute a presumption that meeting the required minimum general assistance levels would result in a significant financial distress to the county.
Allows all counties to reduce or eliminate: Programs related to AFDC, including GAIN, the Cal-Learn program and Foster Care, In-Home Supportive Services and all Medi-Cal services in excess of minimum federal requirements. Sunsets July 1, 2000.
Authorizes counties to discontinue aid under the general assistance program after able-bodied, mentally competent individuals have received aid for 3 months during a 12 month period. States intent to reverse the decision in Washington v. Board of Supervisors of San Diego County (18 Cal. App. 4th 981).
Authorizes counties to adopt standards of aid and care for the indigent and dependent poor. Also recasts the authorization for counties to establish policies with reference to the amount of property those persons are permitted to have to specifically include cash and other belongings.
Establishes the Public Social Services Eligibility Pilot Project authorizing counties, if federal approval is obtained, to require that applicants and recipients of social services programs be fingerprinted and have photographic identification.
Mandates that counties require applicants and recipients of benefits under AFDC or the Food Stamp Program to undergo screening for substance abuse and participate in a drug or alcohol treatment program as a condition of eligibility. Disqualifies for 2 years anyone who fails or refuses to cooperate with treatment, testing or screening requirements.
Enacts the Seismic Retrofit Bond Act of 1996 to provide $2 billion in general obligation bond authority for the seismic retrofit of state highway and bridge structures and seismic retrofit improvements on the state's toll bridges, subject to approval by the voters in the March or November 1996 elections.
Establishes the Agricultural Labor Relations Unpaid Wage Fund, into which collected unpaid wages or benefits are to be deposited. Modifies the amounts available for county district attorneys pursuant to referral of child support collection matters in the state. Transfers jurisdiction over state-chartered savings associations from the Department of Savings and Loan to the Commissioner of Corporations.
Requires the Arts Council to establish a nonprofit public benefit corporation to solicit and receive funds from various sources to further its goals. Repeals the California Student Loan Authority Act. Terminates the existence of the Housing Bond Credit Committee. Requires the California Debt and Investment Advisory Commission to establish continuing education programs for local officials having direct or supervisory responsibility over municipal investments.
Repeals various governing board authorities under the general jurisdiction of the State Treasurer, and consolidates those with the California Development Financing Authority. Establishes the California Health and Educational Financing Authority through consolidation of several existing authorities. Repeals provisions relating to the duties and authority of the State Fire Marshal over state-occupied buildings.
Makes a series of changes to increase revenues and control costs related to the Victims of Crime Program, including provisions that authorize offenders receiving diversion in lieu of incarceration to pay restitution and corrections to consider payment of restitution a condition of parole.
Makes statutory changes necessary to implement the education portion of the 1995 Budget Act, and makes certain appropriations to satisfy the Proposition 98 funding guarantees for the 1994-95 and 1995-96 fiscal years. Lowers the statutory deficit factor applied to school districts and county offices of education revenue limits, as specified. Permanently reinstates the $13-per-unit enrollment fee for community college students which sunsetted July 1, 1995. Requires the mentor service program to be operated through local school districts and county offices of education. Creates Social Tolerance Resource Centers to provide teacher training and educational services in the areas of social tolerance and human rights. Creates Latino Heritage Resource Centers. Limits to one year the time within which school districts may revise claims for desegregation costs after initial claims have been paid by the state. Makes the following appropriations:
11. $30 million for the 1995-96 fiscal year to be allocated in August 1996 only if a settlement agreement has been reached in the CTA v Gould Proposition 98 lawsuit for the following programs: Healthy Start ($10 million), Volunteer Mentor ($5 million), and pupil assessment ($15 million).
A follow-up bill is AB 687* (Goldsmith-R), which added a provision to clean up AB 825 relating to the allocation of excess funds in the Educational Revenue Augmentation Fund to the county superintendents of schools for special education programs. AB 687 became Chapter 309, Statutes of 1995.
Makes numerous changes in the law concerning the California Youth Authority, such as deleting provisions of law requiring the department to establish a maximum population limit for each juvenile hall and allowing a juvenile home, ranch, camp or forestry camp to receive or contain up to 125 children, if the county has determined that there is a consistent need for placements in these facilities which exceeds the beds available in the county, as specified.
Provides for reductions in Aid to Families with Dependent Children (AFDC) and SSI/SSP grants, and places counties in one of two regions based on the 25th percentile of rents as reported in the 1990 census for purposes of determining AFDC and SSI/SSP grants. Reduces the minimum basis of standards of care in Region 2. Provides state funding to cover the increased share of cost for certain Medi-Cal recipients who otherwise would not pay a share of cost, or an increased share of cost, as a result of the grant cuts.
Requires unmarried pregnant or parenting teenagers under 18 to live with their parents or with other suitable adults in order to qualify for AFDC, with specified exemptions. Limits AFDC homeless assistance benefits to once in a lifetime. Requires the Department of Social Services to undertake activities designed to facilitate the dissemination of work incentive information to AFDC applicants and recipients.
Creates the Technical Assistance Fund to fund licensing staff positions to provide technical assistance to businesses paying fees for various social services program licenses. Creates the Certification Fund and transfers the monies contained in the Residential Care Facility for the Elderly Fund to the new fund to be used for administrative costs of the residential care facilities for the elderly certification program. Provides $22.7 million from the Employment Training Fund for the GAIN program.
Allows the Department of Social Services to reduce local assistance funding to counties that elect to implement the Cal-Learn Programs by contracting with the department. Extends the sunset for the In-Home Supportive Services Personal Care Services Program from July 1, 1996 to July 1, 1998. Guarantees that the total funds appropriated from the Social Security Act in the 1995-96 fiscal year for the Independent Living Centers will be maintained for the 1996-97 fiscal year from combined state and federal funds.
Grants the Department of Consumer Affairs operational flexibilities pursuant to its 1995-96 Performance Budgeting Contract. Allows for the Department of Consumer Affairs to perform the statutory functions of the board in the event legislation to consolidate the Cemetery Board and the Funeral Directors and Embalmers Board is not enacted into law. Provides that if the Structural Pest Control Board does not comply with provision specified in the 1995 Budget Act, as determined by the Department of Consumer Affairs, the department may assume the responsibilities and duties of the board. The department may also monitor the performance of the board, authorizing the allocation of monthly budget disbursements for expenditure by the board.
Makes various changes to the Medi-Cal Program, mental and health and developmental services program necessary to implement the Budget. Requires the Secretary of Health and Welfare to establish an Office of Rural Health in one of its departments. Establishes a transitional inpatient care program as a Medi-Cal benefit, as specified. Requires local initiatives participating in the Medi-Cal managed care plan to contract with federally qualified health centers, as specified.
Revises targeted case management and Medi-Cal administrative claiming programs to conform to federal requirements and makes other revisions to these programs. Specifies legislative intent that subsequent legislation be developed to allow integration of long-term care services and requires the Department of Health Services to select 5 pilot project counties that may integrate the administration and funding for long-term care services. Makes changes to the Medi-Cal Drug Treatment Program, such as limiting day care habilitative services only to pregnant and postpartum women, and allows the Department of Health Services to develop individual and groups rates for outpatient drug-free treatment and establishes the per-person rate as a fraction of the group rate. Limits the outpatient drug-free program to only pregnant and postpartum women on July 1, 1996, if the projected costs for the Medi-Cal Drug Treatment Program for the 1995-96 fiscal year exceeds $60 million as of May 15, 1996.
Revises the procedures for implementation of the Greater Avenues for Independence program which has the effect of increasing county responsibilities in implementing the AFDC GAIN program, as specified.
The $1.3 million restoration of monies to the Assembly became a controversial issue in which many Senate bills were amended to reflect the restoration and subsequently were re-amended to take the provision out.
Establishes in the Department of Health Services the California Reaching Early Access for Children's Health (REACH) Program to provide supplemental primary and preventive pediatric health care services to children under 6 years of age, to be effective April 1. 1996.
Transfers 8 state beaches to Los Angeles County. Allows the Department of Parks and Recreation to enter into agreements with nonprofit corporations or other private entities to assist the department in securing long-term, private funding sources for units of the state park system. Abolishes the State Construction Program Fund, the Capital Outlay Fund for Public Higher Education, the Energy and Resources Fund, and the Special Fund for Capital Outlay and transfers balances of these funds to the General Fund. Shifts the cost of the watermaster services program from state to local entities that own rights to divert or store water within a service area.
Eliminates the provision of pregnancy-related services to undocumented women under the Medi-Cal program. Eliminates continuation of long-term care and renal dialysis for aliens who have exhausted appeals to retain an entitlement to full Medi-Cal benefits.
Creates the Partnership Demonstration Project Program, which provide that for counties to elect to participate, a block grant of funds in which to implement the current children's services programs, including the Foster Care, Children's Welfare Services, and Adoption Assistance Programs, as specified. Reallocates responsibility for certain child welfare services to Indian tribes located in the state or that have territory within the state. Uses existing sales tax revenue to provide for the children's services block grant, as specified. Becomes operative only if AB 906 (Aguiar-R) is enacted and unless a statute is enacted that becomes effective before December 31, 1995 governing the administration of the Partnership Demonstration Project.
Makes a number of changes concerning local government finance of programs by reducing general assistance, relief from maintenance-of-effort requirements, providing a $23.7 million state subsidy to eligible counties that operate juvenile probation camps or ranches, providing property tax administration relief and teeter plan flexibility.
Similar legislation is ACA 25 (Goldsmith-R) which is in the Assembly Budget Committee, ACA 32 (Morrissey-R) which is in the Assembly Rules Committee, and ACA 33 (Burton-D) which is in Assembly Elections, Reapportionment and Constitutional Amendments Committee.
Provides that statutes enacting budget bills are to go into effect immediately upon their enactment, and removes the 2/3 requirement for the adoption of legislation making General Fund appropriations.
Maintains the 10% and 11% income tax rates scheduled to expire at the end of 1995. Maintains the 8.5% alternative minimum tax rate. Increases the dependent credit to $220 per dependent starting in 1996. Reduces the bank and corporation tax rate to 8.6% from 9.3% starting in 1996. Excludes as an item of tax preference, in conformity with federal law, any capital gain from charitable donation of appreciated property. Excludes 75% of gain from sale of small business stock held for 10 years. Increases the limit on corporate charitable contributions to 10%, and allows carryover of excess contributions. Permits personal taxpayers to deduct up to $17,500 of business property purchased after July 1 1995. Excludes from income energy conservation subsidies for dwelling units received from public utilities. Permits a longer period for biopharmaceutical firms with no FDA-approved products to carry over investment tax credits and net operating losses. Extends tax treatment of employee stock ownership plans through 1998. Provides for language relating to double taxation of corporate dividends.
Provides for a 50% tax credit for costs incurred by a developer to build a new school. The amount of credit statewide could not exceed $200, unless up to an additional $200 in authorization is provided in the Budget Act. Sunsets December 1, 2007.
Requires the Employment Development Department and Franchise Tax Board to receive specific information from the Immigration and Naturalization Service regarding illegal alien employees and to ascertain whether those employees or their employers have paid or withheld the appropriate amount of personal income taxes, and in the case of noncompliance with specified tax laws, to pursue appropriate enforcement actions.
Eliminates the $250,000 minimum contribution amount for the California Firefighters' Memorial unless the January 1, 1999 repeal date is eliminated, thereby allowing the check-off to remain on the tax form regardless of the contribution level.
Permits water's -edge group to take a 75% deduction for dividends received from foreign affiliates and a 100% deduction for dividends received from foreign construction projects. Eliminates the interest expense offset for foreign investments.
Replaces the current state income tax with a tax based on a percentage of federal taxable income, as defined, for taxpayers who do not have income from farm, business or rental activities, schedule California additions, or schedule California subtractions.
Allows taxpayers, 65 or older, to pay tax on the gain from the sale of a qualified asset at either that tax rate applicable under current law or at a rate of 1% of the gain from the sale. Allows as a deduction against income the amount of gain on which the separate tax is paid.
Provides for a tax credit of up to $50 for each computer donated to schools or universities and an amount equal to 55%, not to exceed $100, or the amount paid or incurred as a contribution for repairs and upgrades to a qualified refurbisher or facilitator for each qualified computer.
Similar legislation is SB 1149* (Watson-D) which is in Senate Appropriations Committee, SB 1210* (Hughes-D) which is in Senate Revenue and Taxation Committee and AB 1758* (Knowles-R) which failed passage in Assembly Health Committee; reconsideration granted.
Allows a refundable tax credit to a nonprofit, tax exempt hospital that is operating within an enterprise zone, program area or the Los Angeles Revitalization Zone (LARZ) and that meets the requirements for specified employee hiring credits and/or the LARZ sales and use tax credit.
Provides a tax credit equal to 50% of the amount paid or incurred by a taxpayer for the purchase of long-term care insurance coverage. Provides that the credit would range from $100 to $1,000 depending upon the beneficiary's age.
Requires the Franchise Tax Board to insure that the first tax forms issued with respect to any tax year incorporate all applicable changes in federal law that have been incorporated into the California Revenue and Taxation Code and that have been adopted before the end of that tax year.
Creates new civil penalties and criminal charges for knowingly obtaining, endorsing or negotiating state income tax refund warrants that the recipient is not entitled to receive. Also clarifies that existing criminal penalties in case of fraudulent returns apply to electronically filed returns, as well as paper documents.
Allows a top tier corporation, on behalf of corporations that are members of a commonly controlled group, to elect to determine the income of all of its members of the group, derived from or attributable to sources within the state, in a single combined report that takes into account the income and apportionment portions of all the members.
Makes various technical changes to small cities enterprise zone statutes and the Los Angeles Revitalization Zone law (LARZ). Restores AB 312 , of 1994 which prevents the state from recapturing audits claimed by taxpayers should the Trade and Commerce Agency determine patrons of the LARZ do not meet the original statutory criteria, and as a result eliminate segments of the LARZ. This was chaptered out by AB 1313 of 1994.
Increases the threshold amounts for filing state tax returns to an adjusted gross income of $8,000 (single) and $16,000 (joint). For incomes from all sources, increases the threshold to $10,000 (single) and $20,000 (joint). Makes these thresholds effective for the 1995 tax year and indexed annually thereafter for inflation.
Allows an income tax credit for the cost of seismic rehabilitation on historic buildings in California. Includes S corporation shareholders in California's Nexus (Voluntary Disclosure Program). Allows the Employment Development Department to provide the Franchise Tax Board with new employee information upon request.
Allows the Franchise Tax Board to waive penalties and perfect elections in the case of a corporate group which did not accurately file for "waters-edge" elections. Eliminates the requirement that Mexican and Canadian affiliates of U.S. based multinational corporations be included in the waters-edge election. Makes changes in large corporations reporting requirements.
Allows a tax credit equal to 50% of the amount paid or increased during the taxable or income year for qualified language training expenses in connection with the training of the taxpayers' employees in English language and literacy.
Enacts the California Land and Water Conservation Act which allows a tax credit, as specified, of the fair market value of qualified property that is donated to the state, any local agency or any nonprofit organization designated by the state or local government.
Extends the application of the highest managerial income tax rates permanently. Transfers increased revenue resulting from this change to a special subaccount of the General Fund to be allocated to higher education.
Provides that taxpayers who suffered losses as a result of the 1995 storms and floods, may apply losses against taxable income in the previous taxable year, any further losses of 100% can be carried forward against taxable income over the next 5 years. Should excess losses remain, 50% of those losses may be carried forward for the next 10 years.
Similar legislation is AB 1X* (V. Brown-D), Chapter 3, Statutes of 1995-96, First Extraordinary Session; AB 3X (Firestone-R), Chapter 4, Statutes of 1995-96, First Extraordinary Session; AB 6X* (Kuykendall-R) which failed passage in Assembly Appropriations Committee; AB 11X* (McPherson-R) which died in Assembly Revenue and Taxation Committee, and SB 91* (Thompson-D) which is in Assembly Revenue and Taxation Committee.
Repeals the January 1, 1996 sunset date for the 10% and 11% income tax rates and the 8.5% alternative minimum tax (AMT). Allows the personal exemption credits to reduce regular tax below the amount of tentative minimum tax and adopts the federal exemption amounts for purposes of calculating the AMT.
Makes permanent the 10% and 11% income tax rates for high income taxpayers and the 8/5% alternative minimum tax rate. Increases the personal exemption credits. Reduces the C-Corporation franchise tax rate from 9.3% to 7.7%. Reduces the minimum franchise tax from $800 to $600. With respect to S-Corporations, eliminates the franchise and income tax rate of 1.5%
Expands the existing Manufacturer's Investment Credit to include taxpayers with manufacture machinery for the creation of semiconductors as among the taxpayers eligible to claim the credit on their special purpose buildings and foundations.
Allows corporations that chose S-Corporation status in 1987 to make a one-time election to pay a 2.5% tax on the earnings they accumulated as a C-Corporation. Allows distributions made from these earnings to be excluded from shareholders gross income.
9. Conforms with the 1993 federal change which expanded its so called mark to market sale by requiring all securities dealers' incentives to be valued at market value (i.e. mark to market), with any unrealized gain or loss to be recognized for tax purposes.
Allows a tax credit equal to 15% of the cost paid or incurred on or after July 1, 1995 for qualified projects purchased from a minority-owned manufacturing business located in an enterprise zone or program area that is located within the Los Angeles Revitalization Zone.
Allows a tax credit for an amount equal to 10% of the amount paid or incurred by a project owner for steel products or components fabricated in California and used in construction projects located in California.
Enacts the Small Business Tax Incentive Act of 1995 which allows small manufacturers and small manufacturing businesses that apply computer technology in an industrial setting to claim a tax credit equal to 50% of wages paid to qualified employees in a training program.
Allows for income tax deductions against income for any loss resulting from the sale or exchange of an individual's principal residence. Limits the deduction to a maximum of $125,000 and losses resulting from physical damage caused by a natural disaster would not qualify.
Provides a tax credit equal to 6% of eligible costs paid by a qualified taxpayer that either locates a new corporate headquarters or maintains or expands an existing corporate headquarters in this state.
Creates a tax credit equal to the amount of premiums paid or incurred during the taxable year by specified small business taxpayers to obtain health benefits coverage for the taxpayers' employees or their dependents.
Makes the following changes regarding the tax treatment of the oil and gas industry. (1) Provides a credit equal to 1/3 of the federal enhanced oil recovery credit; (2) expands the existing manufacturers' investment credit to allow taxpayers involved in oil and gas extraction to claim the credit, and (3) increases depletion deductions for oil and gas wells.
Conforms state law to federal law with regards to (1) the treatment of income from the discharge of qualified real property business indebtedness and (2) the application of passive activity loss sales to rental real estate activity.
Requires the Franchise Tax Board to cancel any tax, penalty, or interest for certain corporations that have accumulated liabilities due to incomplete dissolution of operations if certain conditions are met and the corporation pays a fee of $200. Establishes a graduated minimum franchise tax for the first 4 years after formation of any bank or corporation.
Similar legislation is SB 706* (Maddy-R) which is in Senate Revenue and Taxation Committee, and AB 1369* (Brulte-R) which failed passage in Assembly Revenue and Taxation Committee; reconsideration granted.
Enacts the Retirement Income Protection Act to provide under the income tax law in the case of a nonresident income from sources within this state is not to include qualified retirement income received by a nonresident up to and including $50,000 in the aggregate during the taxable year, from any defined compensation arrangement.
Allows a 100% deduction for foreign dividends and does not allocate any interest expense to those dividends. Excludes Subpart F income from inclusion in a water's-edge group. Excludes Canadian and Mexican affiliates from the definition of water's-edge. Excludes 80/20 corporations from the definition of water's-edge.
Provides a tax credit for qualified biopharmaceutical and high technology industries research and development and a 24% credit for basic biopharmaceutical and high technology industries research and development.
Allows the Franchise Tax Board, under a pilot program, to issue orders to withhold to financial institutions using magnetic media, electronic transmission or other electronic technology under specified circumstances.
Repeals the current law that conforms world-wide unitary operations to federal law regarding the sourcing to softwood timber to U.S. source income, and that includes sales of any unprocessed softwood timber that was cut in California and sold abroad in the income apportionment formula for purposes of determining California income for tax purposes.
Creates a tax credit equal to 30% of the cost paid or incurred by a taxpayer for establishing or constructing a school facility primarily for the children of employees of the taxpayer or of the taxpayer's tenant leasing commercial or office space.
Provides up to a 30% tax credit, up to $150 per employee, for costs incurred by employers participating in the Workplace Literacy Demonstration Project administered by the State Department of Education.
Expands the existing Manufacturers' Investment Credit by allowing eating establishments to claim the credit. In addition, adds tangible personal property used in Standard Industrial Classification 5812 to the types of qualified property.
Amends the existing tax credit allowed to taxpayers who restore or improve salmon or steelhead trout habitats by increasing the maximum aggregate amount of credits that could be allocated in any year from $500,000 to $1 million.
Conforms California law to federal law by exempting from gross income interest and dividend income on specified deposits and investments held in the United States by foreign governments and related organizations.
Modifies the existing notification requirement to specify that no later than the effective date of the preliminary title request, a real estate escrow agent must provide written notification to sellers of California real estate of the state's withholding requirement.
Changes, from 18 months to 36 months, the period that a mobilehome park may be held by an intermediate entity before the park is transferred to a resident-owned organization without having the acquisition by the intermediary be considered a change in ownership subject to reassessment. Also, for Los Angeles County, the time frame is to be increased to 76 months for a mobilehome park initially transferred in October of 1991.
Revises the annual tax increment allocated to each jurisdiction with respect to any property tax revenue that is derived from the taxation of any housing unit, residence, or residential development that is done on or after January 1, 1996, as specified.
Clarifies that the property tax welfare exemption applies to both the basic 1% tax rate as well as any add-on debt rates. Requires tax-defaulted property to be sold at the higher of (a) 50% of the fair market value, or (b) the total amount necessary to redeem, plus costs as defined, as specified. Specifies that the Assessor must determine the fair market value of the property within 1 year immediately preceding the date of the public auction.
Makes a number of substantial changes to the property tax law relating to special franchises, possessory interests, interest on refunds, assessment appeals notice and boards, administrative costs for the supplemental roll, escape assessments, and disclosure of assessor records. Provides statutory parameters for possessary interests to guide assessors and judicial authorities.
Overturns a Court of Appeals decision on reassessing real property if the majority owner of a general partnership buys out the remaining owners. Makes clarifying changes in provisions of law with respect to the inclusion of veterans' organizations within the property tax welfare exemption, the assessment of aircraft, and the equalization of the assessed value of state assessed property in cities that make their own assessment. Provides that counties have no authority to exempt property with a total base year value or full value of more than $5,000, instead of $2,000 as it is in current law. Double-joined with SB 327 and SB 534.
Requires assessors to annually reappraise property whose value (pursuant to Proposition 8) has been reduced below the Proposition 13 adjusted base year value. Annual reappraisal would continue, at current market value, until the value again reached the Proposition 13 adjusted base year value.
Allows redevelopment agencies to be included in the class of jurisdictions which may rebate property taxes on economic revitalization manufacturing property. Requires a local agency that is a redevelopment agency to obtain the approval by a majority vote of the governing bodies of the city and county in which the agency is located, prior to having the authority to rebate any property tax revenue.
Requires a county board of equalization or assessment appeals board to either accept a stipulation between the county and the taxpayer with respect to the value of real property for which an application for reduction in assessment has been filed or reject that stipulation within 60 days of its filing with the board.
Creates an additional exception in Proposition 13 of 1978 to the 1% limit on property taxes for construction of school facilities or purchase of real property to be used for school sites. Requires a 58% vote for approval of bonds and increase of property tax for school purchase and construction.
Provides the state to reimburse each county, for which a state of disaster was declared, for the estimated loss of property tax revenue lost as a result of the storms and floods of 1995. Specifies the estimated loss of revenue is not to include property tax revenue reduction to school districts and county offices of education.
Similar bills are: AB 1X* (W. Brown-D) which became Chapter 1, Statutes of 1995-96, First Extraordinary Session; AB 3X* (Firestone-R) which became Chapter 4, Statutes of 1995-96, First Extraordinary Session; and AB 11X* (McPherson-R) which died in Assembly Revenue and Taxation Committee.
Requires the assessor to maintain a list of properties subject to appeal with a value exceeding $5 million. Provides that no reduction in value as a result of an appeal can be made unless the property has been on the list for at least 120 days.
Provides that in valuing special use properties using the cost approach, the assessor shall not add for entrepreneurial profit unless he or she has market-derived evidence of the existence of entrepreneurial profit that has not been fully offset by physical deterioration or economic obsolescence.
Permits the county assessor and the auditor/controller to allocate pipeline assessments and tax revenue, respectively, to the county and the jurisdictions within the county in the same manner as state assessments and the revenue therefrom are allocated.
A follow-up bill is SB 724* (Lockyer-D) which contained a provision specifying that the resolution adopted by the board of supervisors be adopted during the fiscal year in which it is to apply no later than September 15 of the fiscal year.
Includes assessment appeals boards within the calculation of property tax administrative costs. Provides the state reimburse counties for the schools' share of the property tax assessment appeals board component of property tax administrative costs.
Requires an annual relocation in the assessment value of manufacturing test equipment, research and development equipment, and non-production computers, including microcomputers and mainframe computers used in semiconductor, computer, or biotech operations.
Gives counties an additional 90 days to consider assessment appeals in cases where a property owner appeals the ruling of a hearing officer shortly before the expiration of the 2-year period for resolving the dispute.
Classifies that the delinquent penalties on the current secured roll to be allocated to the county general fund as a result of property taxes includes all penalties, and not just those associated with ad valorem taxes.
Increases the number of assessment appeals boards in counties from 5 to 10. Allows hearing officers to hear assessment appeal cases involving nonresidential properties which have an assessed value not exceeding $500,000 and allows assessors to make roll corrections under specified conditions.
Changes the period of time over which interest is accrued for refunds of property tax. Extends indefinitely the property tax exemption for personal property used for certain aviation-related purposes (air patrol). Clarifies that cities and lighting, water, and irrigation districts are entitled to request and receive the location information of all properties that are on the unsecured roll.
Exempts from the requirement to obtain a seller's permit any person who engages in business in the state as a seller of feed that is exempt from sales and use taxes and who engages in no other taxable sales of tangible personal property at retail, as specified.
Requires local taxing districts, if a legal challenge to a local tax is filed within 60 days of its imposition, to place the tax revenues in an interest-bearing account until the legality of the tax is determined, as specified.
Exempts from the sales tax tangible personal property that becomes a component part of those aircraft used as a common carrier or sold to any person who is not a resident of this state and who will not use the aircraft in the state, as a result of the maintenance, repair, overhaul, or improvement of an aircraft, in compliance with federal requirements, and any changes made for labor and services rendered with respect thereto, as specified. Requires that interest on payment of tax under the Sales Tax Law be calculated at the modified adjusted rate per annum, as specified.
Deletes unenforceable provisions related to mail-order sales, while providing that those provisions would become operative if congress enacts legislation authorizing states to compel collection of sales and use taxes by out-of-state retailers. Specifies that a broker of vessels or aircraft who collects sales tax reimbursement shall be required to report that tax to the Board of Equalization. Includes the 1/2% sales tax imposed under the California Constitution in the computation for the prepayment of sales taxes on motor vehicle fuel.
Eliminates the requirement of voter approval for any transaction and use tax levied prior to January 1, 1997, but requires voter approval for the initial imposition or continuation of any transaction and use tax on and after that date.
Allows the Town of Truckee to levy, subject to majority voter approval of the town council and 2/3rds voter approval, a 0.5% transaction and use tax for repair and construction of city streets and roads.
Extends the sales and use tax to specified services such as repair labor, custom computer programs, janitorial, laundry, dry cleaning, and automotive services, sale of memberships to private clubs, landscaping services, taxidermy services, pet grooming services, exterminating services, furnishing of various services, funeral services, dictaphone answering services, and operating of coin-operated amusement machines.
Allows a California supplier, if the retail sales price exceeds $400, to elect to provide the Board of Equalization with a California consumer's name and address in lieu of requesting the sale or use tax on transactions.
Provides that if the federal gasoline and diesel fuel tax is reduced below the current rate, the state tax is to increase by the same amount so that the total state and federal tax rates remain at existing levels.
Allows the San Bernardino County Board of Supervisors to levy and collect a tax or assessment for purposes of paying the costs of carrying out activities related to the federal national pollutant discharge elimination system. Allows for a majority vote election on the matter.
Requires that revenue derived from the assessment of fines and penalties by any state agency are not to be expended unless the Legislature specifically provides authority for the expenditure of these funds in the annual Budget Act or other legislation, as specified.
Prohibits the legislative body of a local agency from delegating its authority to adopt a new fee or serious charge, or to increase an existing fee or serious charge. Requires that the public meeting held prior to the imposition or increase of a fee or charge be open.
Includes reference to additional taxes and fees administered by State Board of Equalization (SBE) that require financial institutions which hold assets of delinquent taxpayers to respond to the board's Notice of Levy by disclosing specified information. Extends authorization to the Taxpayer's Rights Advocate in situations that threaten the health or welfare of the taxpayer. Authorizes the SBE to contract with persons outside of California for the identification of persons or businesses who may owe taxes or other amounts. Requires that any refunds due a taxpayer pursuant to the fuel tax programs be applied to any amounts owed under the programs prior to issuing the refund. Eliminates unnecessary tasks from the jurisdiction of the State Board of Control, as specified. Limits the public notice requirement for seizures of cigarettes. Extends excise tax credit to beer manufacturers under certain circumstances. Clarifies that SBE may refund excess energy resources surcharge payments to either the utility that paid the tax or the consumer from whom the tax was collected. Authorizes SBE to collect the tire recycling fee. Allows SBE to grant relief from the late payment penalty on an emergency telephone users surcharge if the taxpayer can provide evidence of an extenuating circumstance causing the tax to be late.
Extends sales and use taxes settlement authority to other State Board of Equalization (SBE)-administered taxes. Extends the California Taxpayers' Bill of Rights provisions to the Oil Spill Response, Prevention and Administration Fee Law Program. Adds limited liability company to the definition of person to conform the Diesel Fuel Tax Law to other SBE-administered programs. These provisions were contained in a previous version of SB 724.
Allows the Bay Area Metropolitan Transportation Commission to impose a tax of up to 10 cents on motor fuel sold in the 9 counties over which it has jurisdiction to be voted upon by the voters in those counties.
Provides diesel fuel suppliers with cash flow relief. Reinstates the bad debt write-off for suppliers of diesel fuel until July 1, 1997. Allows state, local and federal governments to purchase dyed diesel fuel and submit the tax due directly to the state.
Permits the governing body of any city, county, or city and county to establish a police and sheriff protection services assessment district pursuant to prescribed procedures and subject to confirmation by an election of the people to levy assessments for police and sheriff protection services and other specified conditions.
Classifies taxes levied by a local government or a special district as general or special taxes, and establishes in addition to the 2/3 approval requirement for special taxes, a majority vote approval requirement for new and certain existing general taxes. Establishes procedures and requirements for the imposition of fees and charges, including a voter approval requirement for the imposition. Establishes various procedures and requirements for benefit assessments.
Directs the Legislative Analyst to analyze each tax expenditure program, as specified, to determine if program objectives are being realized, whether each program's benefits exceed its revenue cost, and whether there is a less costly way of providing the same benefits and report thereon to the Legislature.
Requests the President and Congress to enact appropriate legislation to eliminate all federal fuel taxes, except as specified, and that the states be given the discretion of levying their own fuel taxes, as provided.
Provides that for purposes of local parcel taxes and per-parcel benefit assessments, multiple parcels that are under the same ownership, contain a total of no more than one dwelling unit, and are zoned for agricultural or timber production, shall be considered a single "assessment unit." Does not affect the Mello-Roos taxes or assessments, nor would it affect any parcel tax or benefit assessment first imposed by July 12, 1995.
Enacts the Employment Taxpayer's Bill of Rights Act of 1995. Mandates the development of a taxpayer education program by the Employment Development Department (EDD) and provides relief to employers who fail to make a timely return or payment based upon written advice from the EDD. Establishes a settlement process for employment related tax disputes within EDD.