Budget & Economy

Increases the California State Lottery's immediate payout limit from $1,000 to $100,000 for prize winners. Requires the State Lottery Commission to adopt new regulations before implementing the higher payout limit. Mandates detailed record-keeping of all immediate prize payments made under this provision.

Establishes new requirements for county boards to approve sales of tax-defaulted property. Requires a public hearing with 45-day notice before approving tax-defaulted property sales. Mandates that sale prices must equal or exceed the property's tax sale value. Allows affected parties to challenge sale decisions in superior court within 45 days.

Appropriates $1.2 million from the General Fund to pay legal settlements against the state. Requires immediate payment of settlements to reduce hardship for claimants. Mandates unused funds return to the General Fund within 45 days of final payment.

Expands property tax payment deferrals during disasters to include taxpayers who have applied for installment plans. Allows one-year payment deferrals in counties declared as disaster areas by the Governor. Requires taxpayers to prove substantial disaster damage and apply by September 1 of the following fiscal year. Maintains interest charges on deferred payments which must be paid with the delayed installments.

Permanently allows nonresident aliens to file state tax returns without requiring Social Security or tax ID numbers. Establishes a streamlined group tax filing system for employers of nonresident aliens working in California. Applies the highest marginal tax rate plus 1% to nonresident aliens participating in group tax filings. Exempts nonresident aliens filing group returns from certain tax penalties starting January 2026.

Extends the property tax exclusion filing deadline for solar energy systems to three years after purchase. Expands property tax exemption benefits to include public schools alongside other nonprofit organizations. Allows late-filed solar energy system claims to receive tax benefits starting from the assessment year of filing. Requires state reimbursement to local agencies for costs of implementing expanded tax exemptions.

Appropriates $672 to the Department of General Services for payment of approved state claims. Allocates $600 to the General Fund and $72 to the Motor Vehicle Account for claim payments. Takes effect immediately as an urgency measure to expedite payments to claimants.

Modifies state payment deadlines during peak fire protection periods instead of fire season. Extends payment approval dates by 30 days for contractors during peak staffing periods. Exempts small businesses and nonprofits from payment deadline extensions. Allows suspension of late payment penalties during major disasters or emergencies.

Simplifies mortgage filing requirements by allowing more flexibility in how debtor names are recorded. Permits using either a debtor's full name or surname and first name on mortgage documents. Removes the requirement that debtor names must exactly match DMV identification records. Takes effect July 14, 2025 with no transition period required.

Increases California's film tax credit program from $330 million to $750 million annually through 2030. Raises tax credit rates from 20-25% to 35-40% of qualified production expenses starting January 2025. Expands eligibility to include animated series, films and competition shows with $1 million minimum budgets. Requires productions to meet diversity goals and hire trainees from underserved communities to receive full credits.

Approves a new labor agreement for State Bargaining Unit 6 employees effective July 2025 through July 2028. Requires state employees in Unit 6 to take a 3% pay cut in exchange for 5 hours of monthly leave from 2025-2027. Suspends employer contributions to retiree healthcare prefunding for fiscal years 2025-26 and 2026-27. Reduces the 2025 Budget Act by $120.2 million to reflect savings from the new agreement.

Approves labor agreements between the state and Bargaining Units 9 and 12 through June 2028 and 2027 respectively. Implements a new Personal Leave Program reducing employee pay by 3% in exchange for 5 monthly leave hours. Suspends employer contributions to retiree healthcare prefunding for fiscal years 2025-26 and 2026-27. Reduces state budget appropriations by $88.7 million across various funds in accordance with labor agreements.

Amends multiple budget acts from 2022-2024 to reallocate funds and establish new appropriations across state programs. Provides $802 million to the State Air Resources Board for mobile source emissions reduction and climate change initiatives. Allocates over $5.4 billion for special education programs and services for exceptional children through 2024-25. Establishes a $1.5 billion emergency fund for wildfire response and recovery efforts in areas affected by 2025 fires.

Requires trial courts to submit detailed annual reports on operations and budgets by February 1 each year. Authorizes the Judicial Council to sell three specific courthouse properties at fair market value. Allows loans up to $150 million between judicial funds to support trial court operations. Appropriates $4.69 million from the General Fund for court facilities construction.

Increases the film and television production tax credit from $330 million to $750 million annually starting in 2025. Excludes up to $20,000 in military retirement pay and survivor benefits from state income tax through 2030. Exempts wildfire settlement payments and Chiquita Canyon landfill compensation from state income tax calculations. Requires out-of-state firearm retailers to collect California excise tax on sales to state residents.

Authorizes special lane access for Olympic and Paralympic Games vehicles on California highways through 2028. Delays implementation of driver's license suspension penalties for street racing violations until January 2029. Establishes a $1 DMV transaction fee for system improvements through December 2028. Appropriates funds up to $20 million for transportation projects supporting the 2028 Olympic Games.

Modernizes local tax measure ballots by allowing tax details to be moved from ballots to voter guides. Requires detailed measure information statements to be mailed or sent electronically to voters 88 days before elections. Authorizes electronic transmission of tax measure information to voters who opt for digital communications. Mandates clear descriptions of tax purposes, rates, and durations in voter information materials.

Expands film tax credit data collection to track diversity metrics and local workforce impacts in California. Requires film productions to report employee demographics including disability, veteran, and LGBTQ+ status. Mandates annual public reports on diversity trends and economic impacts in the film industry. Creates apprenticeship tracking for underrepresented groups without adding new penalties.

Excludes wildfire settlement payments from taxable income for victims of the 2021 Dixie Fire and 2022 Mill Fire. Applies to property owners, residents, and businesses in six affected California counties through 2026. Requires PG&E and Roseburg Forest Products to document all settlement payments to tax authorities. Takes effect immediately to provide urgent financial relief to wildfire victims.

Extends local agencies' ability to invest up to 40% in commercial paper until January 2031. Requires local agencies to file financial reports within 10 months of fiscal year end. Establishes tiered penalties up to $5,000 for late financial report submissions based on agency revenue.

Excludes settlement payments received from Southern California Edison for the 2020 Bobcat Fire from state taxable income for Los Angeles County residents, property owners, and businesses. Applies to tax years 2024 through 2028, with provisions automatically expiring on December 1, 2029. Requires Southern California Edison to provide settlement payment documentation to the Franchise Tax Board upon request. Takes effect immediately as an urgency measure to provide rapid financial relief to fire victims.

Requires property tax reassessments for homes within 5 miles of the Chiquita Canyon Landfill to reflect value losses. Extends tax payment deadlines to 2030 for affected properties with timely payments through January 2025. Authorizes cancellation of tax penalties if property owners can document hardship from the landfill incident. Applies reassessments retroactively to January 2022 and requires notification of tax overpayments to owners.

Prohibits insurers from canceling commercial property insurance in wildfire-affected areas for one year after emergencies. Protects apartment complexes, senior living facilities, and other commercial residential properties from coverage loss. Allows cancellation only if property owners are negligent or buildings become otherwise uninsurable.

Establishes the California Community Reinvestment Act requiring banks to serve low-income communities. Requires financial institutions to undergo community service assessments every three years. Creates a rating system from Outstanding to Substantial Noncompliance for bank performance. Prohibits poorly-rated institutions from receiving state funds or contracts.

Extends property tax relief deadlines by three years for homes damaged in specific 2024-2025 California wildfires. Doubles the application period for property tax reassessment from 12 to 24 months after wildfire damage. Maintains disabled veterans' property tax exemptions when homes are destroyed by declared disasters. Preserves tax-exempt status for qualifying properties damaged by specified wildfires through 2033.