Existing law establishes the State Department of Social Services and requires the department to administer various various economic and public social services programs, including the California Work Opportunity and Responsibility to Kids (CalWORKs) program, under which each county provides cash assistance and other benefits to qualified low-income families and individuals, and the CalFresh program, under which supplemental nutrition assistance benefits allocated to the state by the federal government are distributed to eligible individuals by each county.

Existing law establishes the Franchise Tax Board in the Government Operations Agency to, among other things, administer state personal income taxes and corporation franchise and income taxes. Existing law also establishes the California Department of Tax and Fee Administration (department) in the Government Operations Agency to administer various taxes and fees.

This bill would require the department, Franchise Tax Board subject to an appropriation by the Legislature, to administer the California Universal Basic Income (CalUBI) Program, under which a California resident who is 18 years of age or older shall older, and who meets specified requirements, may elect to participate in the program to receive a universal basic income of $1,000 per month, except as specified. month. The bill would require, among other things, that the resident has lived in the state for at least the last 3 consecutive years and that the resident’s income does not exceed 200% of the median per capita income for the resident’s current county of residence, as determined by the United States Census Bureau. The bill would define universal basic income to mean unconditional cash payments of equal amounts issued monthly to individual residents of California with the intention of ensuring the economic security of recipients. The bill would authorize the department require the Franchise Tax Board to adopt regulations to implement the program, and would state the intent of the Legislature to fund the CalUBI Program with a value-added tax of 10% on goods and services, as specified. program and would require the department, on or before July 1, 2024, to submit a report to the Legislature on the feasibility of establishing a new state tax to finance the program. The bill would prohibit income received from the program from being considered taxable income for the purpose of state income taxes, and from being considered in calculating any state tax credits. The bill would also prohibit income received from the program from affecting income eligibility for any programs administered and funded by the state.