Tax vouchers, court fees in budget bills + Rent relief deadline + Affirmative action endorsement
Good morning and happy Wednesday! We’re halfway through a very newsy week!
EARLY RISER: MSNBC’s Katy Tur is moderating a high-powered panel sponsored by the Secretary of State’s Office on women’s suffrage this morning. You’ll hear from House Speaker Nancy Pelosi, Rep. Judy Chu and more. Check it out at the Secretary of State’s Facebook page beginning at 9:30 a.m.
TAX VOUCHERS, COURT FEES TUCKED IN BUDGET BILLS
An Assembly Budget Committee subcommittee on Tuesday tackled in an informational hearing a handful of late-session budget trailer bills that could shape tax and criminal justice policies for years
Among the bills considered was SB 815, which among other things would establish the California Economic Improvement Tax Voucher Act. It would require the state’s Franchise Tax Board to develop a comprehensive tax voucher program plan for the consideration of the Legislation, with a deadline of March 1 of next year.
The idea, aired by Senate Democratic leaders earlier this year, is to let Californians prepay income tax at a discount, and in exchange for a voucher that they could use or sell to someone else. It’s part of a proposal to raise billions of dollars that could be put to use providing social services to people set back by the coronavirus outbreak.
Also up for discussion was SB 824, which would eliminate about 20 different court fees, with the bill aimed at easing the financial burden the state’s criminal justice system places on those with the fewest means. The bill would kick in $65 million for county governments to make up for the loss in revenue.
This bill ran into some resistance from lawmakers, including committee vice-chair Assemblyman Jay Obernolte, R-Big Bear Lake, and Assemblyman Jim Cooper, D-Elk Grove.
Both Obernolte and Cooper expressed concern that the bill was too broad in scope, that it removed the fees even for those who can afford to pay.
Obernolte remarked that many of the fees proposed are means-tested, meaning poor people don’t have to pay them anyway. Cooper said that he had a problem with wealthy people who commit crimes not having to pay fees.
CLOCK TICKS DOWN ON RENTER PROTECTION DEAL
Via Hannah Wiley and Kate Irby...
Fabian Ramirez needs more time to catch up on the rent he couldn’t pay when the coronavirus outbreak put him out of work last spring. He’s in the hole by more than $5,000 — a burden for a laborer with a family to feed.
“It’s a lot,” said Ramirez of Sacramento, who took home about $2,200 a month from his work before the outbreak and had little savings.
His options depend in part on whether Gov. Gavin Newsom and California state lawmakers can reach a deal over the next week to extend renter protections that expire Sept. 2.
If they can’t make an agreement, up to 4 million Californians are believed to be in jeopardy of eviction because of unpaid rent.
“If we don’t change state law, we will see a wave of evictions which would be catastrophic for homelessness and COVID-19 spread,” said Assemblyman David Chiu, D-San Francisco, who is pushing for an eviction moratorium. “Without a new state law, tenants will get evicted and landlords will not get the rent they’re owed.”
Chiu is behind the only rent-relief plan moving forward in the Legislature today. Assembly Bill 1436 would prohibit evictions until 90 days after Newsom lifts the state’s coronavirus emergency or April 1, 2021, whichever comes first. It would give tenants a year to make up unpaid rent.
Homeowners and small building landlords could also request nearly a year of forbearance on their mortgage under the legislation, while property owners of larger buildings up to five units would qualify for six months of relief.
Other options have faded, including a plan from Senate Democrats that would have allowed renters 10 years to make up late payments.
The proposals were developed to follow an eviction ban the state Judicial Council enforced since March. Eviction proceedings can resume on Sept. 2, unless Newsom signs a new law.
The federal government has not stepped in since its coronavirus eviction ban expired at the end of July, either. President Donald Trump signed a memorandum this month urging federal housing agencies to do what they could to keep people in their homes, but it fell short of a mandate to suspend evictions and foreclosures.
Congress could act when it returns to Washington, D.C., in September. Democrats in charge of the House of Representatives signaled they want to impose an eviction ban. Republicans leading the Senate have not endorsed that proposal.
That means renters’ hopes depend on the proposal California lawmakers are developing with Newsom, which would have to pass the Legislature with a two-thirds majority vote to take effect by next month.
Read more here in our story today.
PLANNED PARENTHOOD COMES OUT FOR PROP 16
Proposition 16, which would restore affirmative action in California, is on the ballot this November. And it’s getting some big name support.
On Wednesday, Planned Parenthood Affiliates of California announced their endorsement of the ballot measure.
The endorsement coincides with a planned Zoom “Prop 16 Women’s Roundtable” Wednesday evening featuring some big names, including civil rights activist Dolores Huerta, feminist author Gloria Steinem, comedian Chelsea Handler, activist Helen Zia, Planned Parenthood Affiliates of California CEO Jodi Hicks and moderator Eva Paterson, who co-chairs the Yes on 16 campaign.
“The group will discuss their personal experiences advocating for women’s rights, the ongoing fight for gender equality in the workplace, and the importance of passing Proposition 16 to the modern Women’s Movement,” according to a statement announcing the event.
The roundtable begins at 5:30 p.m., and you can RSVP for the event here.
QUOTE OF THE DAY
Gov. Gavin Newsom got The Onion treatment on Tuesday:
“‘Kimberly, How Could I Have Let You Go?’ Says Gavin Newsom Watching RNC, Silently Crying In Living Room”
Best of the Bee:
The Lake Tahoe-area ski resort Squaw Valley has decided to drop the word “squaw” from its name, ownership announced Tuesday, saying the term is “derogatory and offensive” toward Native Americans, via Michael McGough.
Gov. Gavin Newsom on Tuesday officially endorsed several ballot measures related to race and criminal justice, but did not weigh in on other high-profile measures to increase business property taxes and allow gig-economy companies to treat drivers as independent contractors, via Sophia Bollag.
California legislators cut state workers’ pay. Just 5 of 120 requested cuts for themselves, via Wes Venteicher.