Budget & Economy

Amends the 2023 and 2024 Budget Acts to adjust state appropriations and add new funding items across multiple agencies. Provides $16 million in grants to California tribes to investigate missing and murdered indigenous people cases. Authorizes up to $2.5 billion for wildfire response and recovery efforts in Los Angeles County. Allocates $181 million from environmental funds to state conservancies for climate and conservation projects.

Makes technical changes to expand attorney qualification requirements for the Gambling Control Commission.

Authorizes the California FAIR Plan Association to issue bonds through the state infrastructure bank to increase its ability to pay insurance claims during the current property insurance crisis. Enables the FAIR Plan to enter into loan agreements and credit lines with financial institutions to ensure adequate funding for catastrophic events. Requires FAIR Plan member insurance companies to pay assessments that cover all bond and loan payment obligations. Takes effect immediately as an urgency measure to address the severe shortage of property insurance coverage in California.

Makes technical changes to streamline notice requirements and procedures for community revitalization authorities.

Amends the 2023 and 2024 Budget Acts to provide $2.5 billion for wildfire response and recovery efforts. Allocates $181 million to conservancies and tribes for environmental protection and wildfire prevention. Establishes new reporting requirements for state agencies to track wildfire response expenditures. Authorizes expedited contracting and spending procedures for emergency wildfire response activities.

Updates property tax payment rules to credit mailed payments without postmarks based on receipt date. Authorizes tax collectors to reduce minimum auction prices when special assessments are reduced. Establishes electronic payments as received on the transaction completion date if made through approved channels.

Makes technical changes to clarify requirements for horse racing wagering facility agreements.

Ratifies new and amended gaming agreements between California and the Big Sandy Rancheria tribe. Exempts tribal gaming agreements from state environmental review requirements. Takes effect immediately to promote tribal economic development and stability.

Extends indefinitely the tax provisions allowing nonresident aliens to file without SSN or ITIN numbers. Maintains the group tax filing option for nonresident aliens receiving California income. Excludes from gross income any payments made by agents for nonresidents in group filings. Requires the highest marginal tax rate plus 1% for nonresident aliens filing group returns.

Suspends property tax penalties until April 2026 for specific Los Angeles and Ventura County areas affected by wildfires. Applies only to properties not delinquent before January 2025 and those not paid through impound accounts. Allows property owners to continue installment payment plans without default through April 2026. Takes immediate effect as an urgency measure to provide financial relief to wildfire-impacted residents.

Extends the deadline for filing solar energy system tax exclusions to three years after property purchase. Adds public schools to organizations eligible for property tax exemptions and refunds. Allows late-filed solar energy system claims to receive tax benefits starting in the year filed. Requires state reimbursement to local agencies for costs of implementing new tax provisions.

Makes technical changes to employer notification requirements about tax filing assistance programs.

Increases the California State Lottery's immediate prize payment limit from $1,000 to $100,000. Requires the Lottery Commission to adopt regulations for processing larger immediate payments. Maintains existing record-keeping requirements for all immediate prize payments.

Updates required contact information for consumer complaints at money transmission locations. Requires notices in English and the primary language used by the business for advertising. Allows alternative notice formats for money transmission services on websites and mobile apps. Removes an outdated reporting requirement for deferred deposit transactions.

Extends the credit union notification period for officer suspensions from seven calendar days to seven business days. Requires supervisory committees to notify members when credit committee members or directors are suspended. Applies to all California-licensed credit unions regulated by the Commissioner of Financial Protection.

Expands property tax exemptions to include land owned by Native American tribes used for conservation purposes. Exempts tribal land return transactions from documentary transfer taxes if used for cultural or conservation purposes. Requires tribes to maintain detailed conservation management plans to qualify for the tax exemptions. Sets expiration of the property tax exemptions for January 1, 2028.

Authorizes the Governor to suspend annual gas tax increases if they burden low-income and middle-class families. Requires the Governor to notify Legislature by January 10 before suspending any scheduled tax increase. Mandates alternative funding proposals to maintain transportation funding if tax increases are suspended.

Increases the daily limit of imported out-of-state horse races from 75 to 80 when live racing occurs in California. Requires consent for wagering on imported races after 5 p.m. when total imported races exceed 50 per day. Maintains exemptions for major events like the Kentucky Derby and Breeders' Cup from daily race import limits.

Establishes a new tax credit for businesses to offset costs of cleaning up unauthorized encampments and illegal dumping. Covers expenses including waste removal, property repairs, and security measures from 2026 through 2031. Requires businesses to document property conditions and provide detailed cleanup receipts for verification. Authorizes the Franchise Tax Board to implement emergency regulations to prevent fraudulent claims.

Increases maximum fines for corporate trade violations from $1 million to $100 million. Extends prison terms for individual violators to up to 5 years and raises fines to $1 million. Establishes new civil penalties of up to $1 million per violation for trade conspiracy cases. Allows multiple penalties to be imposed simultaneously for the same trade violation.

Extends historic building rehabilitation tax credits through 2031 to promote preservation and affordable housing. Increases the tax credit from 25% to 30% for projects that preserve affordable housing or convert buildings to housing. Allocates $50 million annually in tax credits with $10 million reserved for smaller projects and affordable housing. Requires detailed economic impact reporting including job creation and tax revenue projections for approval.

Establishes a new tax credit covering 50% of medical equipment costs for children with complex conditions. Provides up to $5,000 in annual tax credits per child for prescribed durable medical equipment. Applies to purchases made between 2026 and 2031 for dependents under age 18. Allows unused credit amounts to be carried forward for up to seven years.

Reduces personal income tax rates by 1-2% across most tax brackets from 2025 through 2029.

Exempts certified microbusinesses from California's $800 annual minimum franchise tax starting January 2025. Applies to corporations, limited partnerships, LLCs, and limited liability partnerships that qualify as microbusinesses. Continues tax exemptions for small businesses owned by deployed military members operating at a loss until 2030. Takes immediate effect as a tax levy under California's Constitution.

Expands local government authority to transfer public property for economic development purposes. Requires detailed reports to the State Controller within 90 days of property transaction approvals. Prohibits using eminent domain for economic development and mandates fair market value sales. Exempts economic development property transfers from standard surplus land disposal requirements.