Signed by Governor Gavin Newsom

Vote Smart's Synopsis:

Vote to pass a bill that exempts stimulus payments, or stimulus checks, from garnishment.

Highlights:

• Classifies a “qualified recipient” as either of the following (Sec. 2-3.A):

• An eligible individual who filed an income tax return for the taxable year beginning on or after January 1st, 2020, and before January 1st, 2021, who has been allowed a tax credit for that taxable year by November 15th, 2021 and is a California resident; and

• An eligible resident who satisfies all of the following:

• Filed a California individual income tax return on or before October 15, 2021, for the taxable year beginning on or after January 1, 2020, and before January 1, 2021. 

• Their federal individual taxpayer identification number, or, if married, the federal individual taxpayer identification number of their spouse is located on the tax return;

• Their adjusted gross income is $75,000 or less; and

• They are a California resident.

• Prohibits determining an individual to be a “qualified recipient” if they fit the following criteria (Sec. 2.B):

• They are an eligible individual without a qualifying child;

• They filed an individual income tax return using the single filing status; and

• They satisfy the following:

• They are deceased; and

• They are incarcerated.

• Requires the State Department of Social Services to make a one-time grant payment of $600 to each grant recipient. The grant payments may be made in the form and manner determined by the department, including establishing the eligibility date and contracting with one or more entities  (Sec. 3.a).

• Requires a financial institution directly receiving stimulus checks to exempt any garnishment order if the payment is marked as “Golden State Stimulus payment” or “Golden State Grant payment” or includes some other industry standard unique identifier that is reasonably sufficient to be seen as a stimulus payment (Sec. 4-2.b).

• Specifies the purpose of the tax expenditures is to provide financial relief for low-income Californians who may have been adversely impacted by the economic disruptions resulting from the COVID-19 emergency (Sec. 5.a).

• Appropriates $100,000 from the General Fund to fund the Earned Income Tax Credit to outreach contracts to provide increased awareness of the Golden State Stimulus. The Franchise Tax Board and the Department of Community Services and Development are exempt from state contracting law (Sec. 6).

Full Bill Text