Bill Full Text
Home
-
Bills
-
Bill
-
Authors
-
Dates
-
Locations
-
Analyses
-
Organizations
<?xml version="1.0" ?>
<ns0:MeasureDoc xmlns:html="http://www.w3.org/1999/xhtml" xmlns:ns0="http://lc.ca.gov/legalservices/schemas/caml.1#" xmlns:ns3="http://www.w3.org/1999/xlink" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" version="1.0" xsi:schemaLocation="http://lc.ca.gov/legalservices/schemas/caml.1# xca.1.xsd">
<ns0:Description>
<ns0:Id>20250AB__142897AMD</ns0:Id>
<ns0:VersionNum>97</ns0:VersionNum>
<ns0:History>
<ns0:Action>
<ns0:ActionText>INTRODUCED</ns0:ActionText>
<ns0:ActionDate>2025-02-21</ns0:ActionDate>
</ns0:Action>
<ns0:Action>
<ns0:ActionText>AMENDED_ASSEMBLY</ns0:ActionText>
<ns0:ActionDate>2025-03-28</ns0:ActionDate>
</ns0:Action>
<ns0:Action>
<ns0:ActionText>AMENDED_ASSEMBLY</ns0:ActionText>
<ns0:ActionDate>2025-04-09</ns0:ActionDate>
</ns0:Action>
</ns0:History>
<ns0:LegislativeInfo>
<ns0:SessionYear>2025</ns0:SessionYear>
<ns0:SessionNum>0</ns0:SessionNum>
<ns0:MeasureType>AB</ns0:MeasureType>
<ns0:MeasureNum>1428</ns0:MeasureNum>
<ns0:MeasureState>AMD</ns0:MeasureState>
</ns0:LegislativeInfo>
<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Assembly Member Muratsuchi</ns0:AuthorText>
<ns0:Authors>
<ns0:Legislator>
<ns0:Contribution>LEAD_AUTHOR</ns0:Contribution>
<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Muratsuchi</ns0:Name>
</ns0:Legislator>
</ns0:Authors>
<ns0:Title>An act to add Section 19602.6 to, and add and repeal Sections 17043.5 and 23151.5 of, the Revenue and Taxation Code, relating to childcare, and making an appropriation therefor.</ns0:Title>
<ns0:RelatingClause>childcare, and making an appropriation therefor</ns0:RelatingClause>
<ns0:GeneralSubject>
<ns0:Subject>California Affordable Childcare Act: Personal Income Tax and Corporation Tax.</ns0:Subject>
</ns0:GeneralSubject>
<ns0:DigestText>
<html:p>The Personal Income Tax Law and the Corporation Tax Law impose taxes according to, or measured by, income derived from or attributable to sources within this state.</html:p>
<html:p>This bill, for taxable years beginning on or after January 1, 2026, and before January 1, 2031, in addition to any other taxes imposed by those laws, would impose a tax at a rate of 0.5% on that portion of income in excess of $10,000,000 during the taxable
year, except as provided. The bill would establish the California Affordable Child Care Fund in the State Treasury and would direct all revenues, less reimbursement to the Franchise Tax Board for the administration of the additional tax, to be deposited into that fund. The bill would continuously appropriate the moneys in the fund to the State Treasurer for the purpose of establishing a grant program for licensed child care facilities, as described. By establishing a new continuously appropriated fund, this bill would make an appropriation.</html:p>
<html:p>
This bill would include a change in state statute that would result in a taxpayer paying a higher tax within the meaning of Section 3 of Article XIII
<html:span class="ThinSpace"/>
A of the California Constitution, and thus would require for passage the approval of
<ns0:Fraction>
<ns0:Numerator>2</ns0:Numerator>
<ns0:Denominator>3</ns0:Denominator>
</ns0:Fraction>
of the membership of
each house of the Legislature.
</html:p>
</ns0:DigestText>
<ns0:DigestKey>
<ns0:VoteRequired>TWO_THIRDS</ns0:VoteRequired>
<ns0:Appropriation>YES</ns0:Appropriation>
<ns0:FiscalCommittee>YES</ns0:FiscalCommittee>
<ns0:LocalProgram>NO</ns0:LocalProgram>
</ns0:DigestKey>
<ns0:MeasureIndicators>
<ns0:ImmediateEffect>NO</ns0:ImmediateEffect>
<ns0:ImmediateEffectFlags>
<ns0:Urgency>NO</ns0:Urgency>
<ns0:TaxLevy>NO</ns0:TaxLevy>
<ns0:Election>NO</ns0:Election>
<ns0:UsualCurrentExpenses>NO</ns0:UsualCurrentExpenses>
<ns0:BudgetBill>NO</ns0:BudgetBill>
<ns0:Prop25TrailerBill>NO</ns0:Prop25TrailerBill>
</ns0:ImmediateEffectFlags>
</ns0:MeasureIndicators>
</ns0:Description>
<ns0:Bill id="bill">
<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
<ns0:BillSection id="id_61B59072-22C5-4EE8-B15A-C606C9561FC8">
<ns0:Num>SECTION 1.</ns0:Num>
<ns0:Content>
<html:p>This measure shall be known, and may be cited, as the “California Affordable Child Care Act.”</html:p>
</ns0:Content>
</ns0:BillSection>
<ns0:BillSection id="id_DFBBBC15-08D3-4BDD-B032-25E80BD10BAB">
<ns0:Num>SEC. 2.</ns0:Num>
<ns0:Content>
<html:p>The Legislature finds and declares all of the following:</html:p>
<html:p>
(a)
<html:span class="EnSpace"/>
There are 2.7 million children ages 5 and under in California – 62% of these children have all available parents in the workforce.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
The typical annual cost of child care for an infant in California is around $19,000.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
On average, child care providers in California earn just $37,270 a year which can make it a challenge to recruit and retain this workforce, leading to labor supply issues.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
The California economy
loses $17 billion annually due to child care challenges.
</html:p>
</ns0:Content>
</ns0:BillSection>
<ns0:BillSection id="id_6785DD39-9C65-4EB9-B150-0C9F13A84548">
<ns0:Num>SEC. 3.</ns0:Num>
<ns0:ActionLine action="IS_ADDED" ns3:href="urn:caml:codes:RTC:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2F%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'17043.5'%5D)" ns3:label="fractionType: LAW_SECTION" ns3:type="locator">
Section 17043.5 is added to the
<ns0:DocName>Revenue and Taxation Code</ns0:DocName>
, to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawSection id="id_4C6B744E-C9A9-49D0-BB21-4801D1C9673F">
<ns0:Num>17043.5.</ns0:Num>
<ns0:LawSectionVersion id="id_92E51760-D847-4958-BB02-60A6FA65FDC5">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
For each taxable year beginning on or after January 1, 2026, and before January 1, 2031, in addition to any other taxes imposed by this part, a tax shall be imposed at a rate of 0.5 percent on that portion of a taxpayer’s income in excess of ten million dollars ($10,000,000).
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
The tax imposed pursuant to subdivision (a) shall only apply to a taxpayer that employs one
or more employees, either as an individual or through a partnership, limited liability company, or similar business enterprise of which the taxpayer is a partner, member, owner, or beneficial owner.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Notwithstanding paragraph (1), the tax imposed by this section shall not apply where the taxpayer satisfies either of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
Provides child care for their employees during working hours.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Fully reimburses employees for necessary child care services.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
This section shall remain operative only until December 1, 2031, and as of that date is repealed.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_D30DBBE0-EE59-4352-A61C-BA9EAD23DB39">
<ns0:Num>SEC. 4.</ns0:Num>
<ns0:ActionLine action="IS_ADDED" ns3:href="urn:caml:codes:RTC:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2F%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'19602.6'%5D)" ns3:label="fractionType: LAW_SECTION" ns3:type="locator">
Section 19602.6 is added to the
<ns0:DocName>Revenue and Taxation Code</ns0:DocName>
, to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawSection id="id_1E4F0C96-69DC-4D59-823C-DF13D1BF6380">
<ns0:Num>19602.6.</ns0:Num>
<ns0:LawSectionVersion id="id_31416BB2-EF62-4FF5-BDAF-1DABBAD9E753">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
The Affordable Childcare Reimbursement Fund is hereby established in the State Treasury. All revenues, less reimbursement to the Franchise Tax Board for the costs of administration, from the additional tax imposed under Sections 17043.5 and 23151.5 for the taxable year shall be deposited in the Affordable Childcare Reimbursement Fund.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
Notwithstanding Section 13340 of the Government Code, moneys in the fund are continuously appropriated without regard to fiscal year to the Treasurer for the purposes of funding grants as described in this section.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
Beginning with the 2027–28 fiscal year, grants
shall be made available to childcare facilities licensed pursuant to the California Child Day Care Facilities Act (Chapters 3.5 (commencing with Section 1596.90) and 3.6 (commencing with Section 1597.30)) of Division 2 of the Health and Safety Code.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
Grant funds shall be used exclusively for the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Lowering rates charged by a licensee for child care services.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Increasing available spaces for services provided by hiring additional employees.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_0ED56E3D-2845-43DD-9DC3-ED2308241663">
<ns0:Num>SEC. 5.</ns0:Num>
<ns0:ActionLine action="IS_ADDED" ns3:href="urn:caml:codes:RTC:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2F%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'23151.5'%5D)" ns3:label="fractionType: LAW_SECTION" ns3:type="locator">
Section 23151.5 is added to the
<ns0:DocName>Revenue and Taxation Code</ns0:DocName>
, to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawSection id="id_CA3137EF-8073-4338-9C20-694374300C7E">
<ns0:Num>23151.5.</ns0:Num>
<ns0:LawSectionVersion id="id_40BF9D6B-3546-4FA6-A3CE-F207C673B282">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
For each taxable year beginning on or after January 1, 2026, and before January 1, 2031, in addition to any other taxes imposed by this part, a tax shall be imposed at a rate of 0.5 percent on that portion of a corporation’s income in excess of ten million dollars ($10,000,000).
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
The tax imposed pursuant to subdivision (a) shall only apply to any corporation that
employs one or more employees.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Notwithstanding paragraph (1), the tax imposed by this section shall not apply where the corporation satisfies either of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
Provides child care for their employees during working hours.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Fully reimburses employees for necessary child care services.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
This section shall remain operative only until December 1, 2031, and as of that date is repealed.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
</ns0:Bill>
</ns0:MeasureDoc>