California 2021-2022 Regular Session

California Assembly Bill AB87 Compare Versions

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1		-	Amended IN Senate ~~February 02, 2022 Amended IN Senate~~ April 26, 2021 CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Assembly Bill No. 87Introduced by Committee on Budget (Assembly Members Ting (Chair), Arambula, Bennett, Bloom, Carrillo, Cooper, Friedman, Cristina Garcia, Jones-Sawyer, Lee, McCarty, Medina, Mullin, Nazarian, ODonnell, Ramos, Reyes, Luz Rivas, Blanca Rubio, Stone, Wicks, and Wood)December 07, 2020An act to amend Section 3056 of the Penal Code, and to amend Sections 208, 208.5, 607, 726, 733.1, 736.5, 1731.5, 1731.6, 1752.1, 1752.15, 1767.35, 1991, and 2250 of, to amend and repeal Sections 704, 707.2, and 1731.7 of, to add Sections 731 and 779.5 to, and to add Article 23.5 (commencing with Section 875) to Chapter 2 of Part 1 of Division 2 of, the Welfare and Institutions Code, relating to juvenile justice, and making an appropriation therefor, to take effect immediately, bill related to the budget. An act to add Sections 8654.2 and 16429.7 to the Government Code, to add Section 116773.5 to the Health and Safety Code, and to amend Sections 6902.5, 12209, 17039, 17039.3, 17052.10, 17276.23, 19900, 19902, 23036.3, and 24416.23 of, to add Sections 17158.2, 17158.3, 24308.2, and 24308.3 to, and to add and repeal Sections 17131.16, 17131.17, 24308.4, and 24308.5 of, the Revenue and Taxation Code, relating to economic relief, and making an appropriation therefor, to take effect immediately, bill related to the budget.LEGISLATIVE COUNSEL'S DIGESTAB 87, as amended, Committee on Budget. Juvenile Justice. Economic relief: COVID-19 pandemic.(1) Existing law, the California Emergency Services Act, authorizes the Governor to proclaim a state of emergency when specified conditions of disaster or extreme peril to the safety of persons and property exist, and authorizes the Governor to exercise certain powers in response to that emergency, including, but not limited to, making expenditures from any fund legally available in order to deal with actual or threatened conditions of the state of emergency.On March 4, 2020, the Governor proclaimed a state of emergency in response to the 2019 novel coronavirus disease (COVID-19) pandemic. Pursuant to specified provisions relating to the prevention and control, the State Public Health Officer ordered all individuals living in the state to stay home or at their place of residence except as needed to maintain continuity of operations of the federal critical infrastructure sectors, as specified. Pursuant to authority under specified provisions of the California Emergency Services Act, the Governor issued Executive Order No. N-33-20 requiring all residents to immediately heed those state public health directives.Existing law, the California Small Business COVID-19 Relief Grant Program, requires the Office of Small Business Advocate within the Governors Office of Business and Economic Development to allocate grants to qualified small businesses affected by COVID-19 and the related health and safety restrictions, such as business interruptions or business closures incurred as a result of the COVID-19 pandemic, in accordance with specified criteria.This bill would create the California Emergency Relief Fund as a special fund in the State Treasury to provide emergency resources or relief relating to state of emergency declarations proclaimed by the Governor. The bill would transfer from the General Fund to the California Emergency Relief Fund $150,000,000 for purposes relating to the COVID-19 emergency proclaimed by the Governor on March 4, 2020. The bill would appropriate $150,000,000 from that fund to the Office of Small Business Advocate for a closed round to fund small business grant applications waitlisted from previous rounds of the California Small Business COVID-19 Relief Grant Program.(2) Existing law establishes the Water and Wastewater System Payments Under the American Rescue Plan Act of 2021 and creates the California Water and Wastewater Arrearage Payment Program for administration by the State Water Resources Control Board upon appropriation, as specified. Existing law authorizes community water systems to apply for program funds to assist customers who have past-due bills from the COVID-19 pandemic bill relief period, as defined. Existing law requires community water systems to allocate payments received under the program as bill credits to customers, as provided, to help address past-due bills incurred during the COVID-19 pandemic bill relief period. If there are sufficient funds appropriated for purposes of the program, existing law requires the state board to use the remaining funds to establish a similar program for funding wastewater treatment provider arrearages and shortfalls.Existing law also establishes within the Department of Community Services and Development the California Arrearage Payment Program (CAPP) under which specified electric and gas utilities are authorized to apply for CAPP funds, on behalf of their customers in arrears, and requires the utility to use any funds received, as specified, to offset customer arrearages that were incurred during the COVID-19 pandemic bill relief period, as defined. Existing law prohibits service from being discontinued due to nonpayment for those customers included in a utilitys CAPP application while the department reviews and approves all pending CAPP applications, and requires the utility applicant to waive any associated late fees and accrued interest for customers who are awarded CAPP benefits. Existing law requires the utility applicant to issue CAPP benefits to customers as bill credits to help address the eligible past due balance. Existing law requires the department to report specified data to the Legislature and on its public-facing internet website relating to distribution of CAPP benefits.This bill would require that any assistance or relief authorized by, and provided by a community water system, a wastewater treatment provider, or a utility applicant to an individual pursuant to, those acts be treated in the same manner as the federal earned income refund for purposes of determining the individuals eligibility to receive benefits under specified public social services laws. The bill would also prohibit any assistance or relief from being taken into account as income, or as resources for a period of 12 months from receipt, for purposes of determining the eligibility of the individual, or any other individual, for benefits or assistance for any other state or local program, as provided.The Personal Income Tax Law and the Corporation Tax Law, in conformity with federal income tax law, generally define gross income as income from whatever source derived, and provide various exclusions from gross income.This bill, for taxable years beginning on or after January 1, 2021, and before January 1, 2026, would exclude from gross income any amount of bill credits received by a customer from a community water system, wastewater treatment provider, or utility applicant pursuant to those acts. The bill would repeal these provisions on December 1, 2026.(3) The Sales and Use Tax Law, in lieu of specified credits allowed under the Personal Income Tax Law and the Corporation Tax Law for qualified expenditures paid or incurred by a taxpayer for the production of a qualified motion picture, allows a qualified taxpayer or affiliate to make an irrevocable election to (A) claim a refund of qualified sales and use taxes previously paid during a specified period not exceeding the income tax credit amount and (B) apply that income tax credit amount against qualified sales and use taxes imposed on the qualified taxpayer in the reporting periods in the 5 years following the reporting period for which the claimant was required to file its most recent sales and use tax return, as specified. Existing law prohibits the total amount of refunds or credit offsets claimed in lieu of qualified motion picture tax credits that would otherwise be allowed for a taxable year beginning on or after January 1, 2020, and before January 1, 2023, from exceeding $5,000,000.This bill would limit this prohibition to taxable years beginning on or after January 1, 2020, and before January 1, 2022.Existing law provides that, for taxable years beginning on or after January 1, 2020, and before January 1, 2023, for those amounts that are in excess of $5,000,000 for that taxable year, the claimant may offset that excess credit amount, or assigned portion, against the qualified sales and use taxes imposed during the reporting periods in the 5 years following and including the reporting period beginning on and after January 1, 2024.This bill would limit these provisions to taxable years beginning on or after January 1, 2020, and before January 1, 2022, and would instead provide that, for those amounts in excess of $5,000,000, the claimant may (i) elect to obtain a refund, subject to specified limitations, of the qualified sales and use taxes paid or offset that excess credit amount, or assigned portion against the qualified sales and use taxes imposed, during the reporting periods that occur during the 2021 calendar year or (ii) the claimant may offset the remaining excess credit amount, or assigned portion, against the qualified sales and use taxes imposed during the reporting periods in the 5 years following and including the reporting period beginning on and after January 1, 2022, as specified.(4) Existing state constitutional law governing insurance taxation imposes an annual tax on the gross premiums of an insurer, as defined, doing business in this state at specified rates. Existing law governing the taxation of insurers allows as credits against the taxes imposed by those laws a low-income housing tax credit allocated by the California Tax Credit Allocation Committee, a College Access Tax Credit allocated and certified by the California Educational Facilities Authority, and a credit in an amount equal to the amount of the gross premiums tax due from an insurer on account of pilot project insurance for previously uninsured motorists, as defined. Existing law allows any excess low-income housing tax credit and College Access Tax Credit to be carried over to reduce the tax in a succeeding year, as specified.Existing law provides that, for the years 2020, 2021, and 2022, the total amount of College Access Tax Credits and uninsured motorist tax credits otherwise allowable, including any credit amount allowed to be carried over to reduce tax in the following year, shall not reduce the annual tax by more than $5,000,000 for a given year.This bill would, instead, provide that the above $5,000,000 cap applies only to the years 2020 and 2021.(5) The Personal Income Tax Law and the Corporation Tax Law, in conformity with federal income tax law, generally define gross income as income from whatever source derived, and provide various exclusions from gross income. Existing law reduces the amount of any credit or deduction otherwise allowed under the Personal Income Tax and the Corporation Tax Law for any amount paid or incurred by the taxpayer upon which this exclusion is based by the amount of the exclusion allowed. Existing federal law, the American Rescue Plan Act of 2021, awards restaurant revitalization grants to eligible entities, including restaurants, food stands, food trucks, bars, and brewpubs, who meet specified requirements beginning on and after February 1, 2020. Existing federal law excludes from gross income for purposes of federal income taxes any amount received in the form of a restaurant revitalization grant, as specified. Existing federal law prohibits reductions in tax deductions, reductions in tax attributes, and denials of basis adjustments, for federal income tax purposes based on that exclusion.This bill, in modified conformity with federal law, would exclude, for taxable years beginning on or after January 1, 2020, from gross income any amount received in the form of a federal restaurant revitalization grant. The bill would adopt, except as provided, the provisions of the American Rescue Plan Act of 2021 prohibiting any reduction in tax deductions, reductions in tax attributes, and denials of basis adjustments based on the exclusion from gross income.Existing federal law, the Hard-Hit Small Businesses, Nonprofits, and Venues Act, among other things, awards grants to eligible shuttered venue operators, including live venue operators or promoters, theatrical producers, and live performing arts organization operators. Existing federal law excludes from gross income for purposes of federal income taxes any amount received in the form of a shuttered venue operator grant, as specified. Existing federal law prohibits reductions in tax deductions, reductions in tax attributes, and denials of basis adjustments, for federal income tax purposes based on that exclusion.This bill, for taxable years beginning on or after January 1, 2019, and in conformity with federal law, would exclude from gross income any amount received in the form of a federal shuttered venue operator grant. The bill would adopt, except as provided, the provisions of the federal Consolidated Appropriations Act, 2021, prohibiting any reduction in tax deductions, reductions in tax attributes, and denials of basis adjustments based on the exclusion from gross income, as provided. (6) The Personal Income Tax Law and Corporation Tax Law, in modified conformity with federal income tax laws, generally allow various deductions in computing the income that is subject to taxes imposed by those laws, including a deduction for a net operating loss as specified. Existing law suspends the deduction for a net operating loss, as specified, for taxable years beginning on or after January 1, 2020, and before January 1, 2023. The Personal Income Tax Law and Corporation Tax Law generally authorize various credits against the taxes imposed by those laws. Existing law provides that, except as specified, the total credits allowable under those laws may not reduce the taxes imposed by those laws by more than $5,000,000, as provided, for taxable years beginning on or after January 1, 2020, and before January 1, 2023. This bill would reinstate the net operating loss deduction, and would remove the above-described temporary limitation on allowable credits, for taxable years beginning on or after January 1, 2022.(7) Existing law, the Small Business Relief Act, authorizes specified partnerships and S corporations, for taxable years beginning on or after January 1, 2021, and before January 1, 2026, to elect to pay an elective tax at a rate based on its net income, as specified, for the taxable year. The act, for taxable years beginning on or after January 1, 2021, and before January 1, 2026, allows a credit against the personal income tax to a taxpayer, other than a partnership, that is a partner, shareholder, or member of an entity that elects to pay the elective tax, in an amount equal to a specified percentage of the partners, shareholders, or members pro rata share or distributive share, as applicable, of income subject to the elective tax paid by the entity. The act defines a qualified entity for these purposes as an entity that is taxed as a partnership or S corporation with partners, shareholders, or members that are corporations or taxpayers, but not partnerships. The act excludes a business entity that is disregarded for federal tax purposes from the definition of taxpayer, and defines qualified net income as the sum of the pro rata share or distributive share of income subject to tax under the Personal Income Tax Law, as specified.This bill, for purposes of the Small Business Relief Act, would include a partnership as an eligible partner, shareholder, or member for purposes of a qualified entity, and would include a limited liability company that is disregarded for federal tax purposes and meets specified criteria in the definition of a qualified taxpayer. The bill would also include specified guaranteed payments as qualified net income for purposes of the act.The Personal Income Tax Law provides for an alternative minimum tax and provides that, except for specified credits, no credit shall reduce the regular tax, as defined, below the tentative minimum tax. Existing law also requires credits allowed against the net tax to be applied in a specified order, including applying credits that reduce the regular tax below the tentative minimum tax before credits for taxes paid to other states.This bill, for taxable years beginning on or after January 1, 2021, would allow the elective tax credit to reduce the regular tax below the tentative minimum tax. The bill, for taxable years beginning on or after January 1, 2022, would require the elective tax credit to be applied against the net tax after credits for taxes paid to other states.(8) Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives that the tax expenditure will achieve, detailed performance indicators, and data collection requirements. This bill, for specified provisions, would provide findings to comply with the additional information requirement for any bill authorizing a new tax expenditure. (9) This bill would also make findings and declarations related to a gift of public funds.(10) This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.Existing law establishes the Division of Juvenile Justice within the Department of Corrections and Rehabilitation to operate facilities to house specified juvenile offenders. Existing law, commencing July 1, 2021, prohibits further commitment of wards to the Division of Juvenile Justice unless the ward is otherwise eligible to be committed to the division and a motion was filed to transfer the ward from the juvenile court to a court of criminal jurisdiction. Existing law requires that all wards committed to the division prior to July 1, 2021, remain within the custody of the division until the ward is discharged, released, or transferred.This bill would require a court to consider, as an alternative to commitment to the Division of Juvenile Justice, placement in local programs established as a result of the realignment of wards from the Division of Juvenile Justice to county-based custody. This bill would require the Division of Juvenile Justice to close on June 30, 2023, and would require the Director of the Division of Juvenile Justice, by January 1, 2022, to develop a plan for the transfer of jurisdiction of youth remaining at the Division of Juvenile Justice who are unable to discharge or otherwise move pursuant to law prior to the divisions final closure on June 30, 2023. The bill would make various other technical and conforming changes to implement the realignment of wards from the Division of Juvenile Justice to county-based custody.This bill would, commencing July 1, 2021, allow counties to establish secure youth treatment facilities for wards who are 14 years of age or older who have been adjudicated and found to be a ward of the court based on an offense that would have resulted in a commitment to the Division of Juvenile Justice, as provided. The bill would require the court to set a baseline term of confinement for the ward that is based on the most serious recent offense for which the ward has been adjudicated, as specified. The bill would additionally require the court to set a maximum term of confinement for the ward in a secure youth treatment facility and require the court, within 30 days of making the order of commitment, to receive, review, and approve an individual rehabilitation plan for the ward from the probation department and any other entity that is designated by the court for development of the plan. The bill would require the court to hold a progress review hearing for the ward not less frequently than once every 6 months during the term of confinement, as specified. The bill would authorize the court, at the conclusion of a progress review hearing, or at a separately scheduled hearing, to order a ward to be transferred from a secure youth treatment facility to a less restrictive program. The bill would, by July 1, 2023, require the Judicial Council to develop and adopt a matrix of offense-based classifications to be applied by the juvenile courts in all counties, as specified. The bill would prohibit a court from committing a juvenile to any juvenile facility for a period that exceeds the middle term of imprisonment that could be imposed upon an adult convicted of the same offense or offenses.This bill would require the probation department to request the prosecuting attorney to petition the committing court for an order directing that the person remain subject to the control of the department at the time of discharge if the person confined is determined to be physically dangerous to the public because of the persons mental or physical condition, disorder, or other problem that causes the person to have serious difficulty controlling their dangerous behavior. The bill would establish the process for the petition, probable cause hearing, trial, continued detention, and appeal pursuant to this provision. The bill would require the Governor and the Legislature to work with stakeholders to develop language by July 1, 2021, that would replace these provisions with a commitment process that ensures the treatment, capacity, legal protections, and court procedures are appropriate, as specified. Existing law establishes a Juvenile Justice Realignment Block Grant program to provide county-based custody, care, and supervision of youth who are realigned from the Division of Juvenile Justice or who would have otherwise been eligible for commitment to the division. Existing law requires the Department of Finance to allocate funds under this program by September 1 each year, beginning September 1, 2021, and provide a schedule of allocations to the Controller. Existing law requires the Controller to allocate the funds in monthly installments pursuant to a schedule that is the same as the schedule for allocations from the Youthful Offender Block Grant Special Account.This bill would instead require the Department of Finance to allocate funds under this program by July 1 each year, beginning July 1, 2021, and would require the Controller to allocate the funds, consistent with the schedule provided by the Department of Finance, no later than August 1 of each year.Existing law establishes the Adult Reentry Grant that is awarded by the Board of State and Community Corrections to support people formerly incarcerated in the state prison.This bill would appropriate $50,000 from the General Fund in 202122 fiscal year to the Adult Reentry Grant to support rental assistance programs, as specified.This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.Digest Key Vote: MAJORITY Appropriation: ~~YES~~ Fiscal Committee: ~~YES~~ Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section ~~8654.2~~ is ~~added to the Government Code,~~ to read:~~8654.~~2. ~~(a) There~~ is hereby created the California Emergency Relief Fund as a special fund in the State Treasury. This fund is established to provide emergency resources or relief relating to state of emergency declarations by the Governor.(b) The sum of one hundred fifty million dollars ($150,000,000) is hereby transferred from the General Fund to the California Emergency Relief Fund for purposes relating to the COVID-19 emergency proclaimed by the Governor on March 4, 2020.(c) For the purposes of providing emergency relief to small business impacted by the COVID-19 pandemic, one hundred fifty million dollars ($150,000,000) California Emergency Relief Fund is appropriated to the Office of Small Business Advocate within the Governors Office of Business and Economic Development for a closed round to fund small business grant applications waitlisted from previous rounds of the California Small Business COVID-19 Relief Grant Program (Article 8 (commencing with Section 12100.80) of Chapter 1.6 of Part 2 of Division 3 of Title 2 of the Government Code).SEC. 2. Section 16429.7 is added to the Government Code, to read:~~16429.7. (a) Notwithstanding~~ any other ~~law,~~ any ~~assistance~~ or ~~relief authorized~~ by~~, and provided to an individual by a utility applicant under, the California Arrearage Payment Program (CAPP) established pursuant to~~ this ~~article~~ shall be ~~treated in the same manner as the federal earned income refund for the purpose of determining the individuals eligibility to receive benefits under Division 9 (commencing with~~ Section ~~10000)~~ of the Welfare and Institutions Code, excluding benefits under Chapter 7 (commencing with Section 14000) of Part 3 of Division 9 of the Welfare and Institutions Code, or amounts of those benefits.(b) Notwithstanding any other law, any assistance or relief authorized by, and provided to an individual by a utility applicant under, the California Arrearage Payment Program (CAPP) established pursuant to this article shall not be taken into account as income, and shall not be taken into account as resources for a period of 12 months from receipt, for purposes of determining the eligibility of that individual or any other individual for benefits or assistance or the amount or extent of benefits or assistance under any state or local program not covered in subdivision (a). With respect to a state or local program, this subdivision shall only be implemented to the extent that it does not conflict with federal law relating to that program, and that any required federal approval or waiver is ~~first obtained for that program.SEC. 3. Section 116773.5 is added to the Health and Safety Code,~~ to read:~~116773~~.5. (a) Notwithstanding any other law, any ~~assistance~~ or ~~relief authorized~~ by~~, and~~ provided by ~~a community water system or a wastewater treatment provider to an individual pursuant to, this~~ chapter shall be treated in the same manner as the federal earned income refund for the purpose of determining the individuals eligibility to receive benefits under Division 9 (commencing with Section 10000) of the Welfare and Institutions Code, excluding benefits under Chapter 7 (commencing with Section 14000) of Part 3 of Division 9 of the Welfare and Institutions Code, or amounts of those benefits. (b) Notwithstanding any other law, any assistance or relief authorized by, and provided by a community water system or a wastewater treatment provider to an individual pursuant to, this chapter shall not be taken into account as income, and shall not be taken into account as resources for a period of 12 months from receipt, for purposes of determining the eligibility of that individual, or any other individual, for benefits or assistance or the amount or extent of benefits or assistance under any state or local program not covered in subdivision (a). With respect to a state or local program, this subdivision shall only be implemented to the extent that it does not conflict with federal law relating to that program, and that any required federal approval or waiver is first obtained for that program. SEC. 4. Section 6902.5 of the Revenue and Taxation Code is amended to read:~~6902~~.5. ~~(a)~~ For ~~the~~ purposes of this section:(1) ~~Qualified taxpayer means a person who~~ is ~~a qualified taxpayer within the meaning of~~ paragraph (17) of subdivision (b) of Section ~~17053.85, 17053.95, 23685, or 23695, or~~ paragraph (19) of subdivision (b) of Section ~~17053.98 or 23698.~~(2) ~~Affiliate means a qualified taxpayers affiliated corporation that has been assigned~~ any ~~portion of the credit~~ amount by the ~~qualified taxpayer pursuant to subdivision (c) of~~ Section ~~23685, subdivision (c) of Section 23695, or subdivision (c) of Section 23698.(3) Credit amount means an amount equal to the tax credit amount that would otherwise~~ be ~~allowed to a qualified taxpayer pursuant to Section 17053.85, 17053.95, 17053.98, 23685, 23695, or 23698, but~~ for the ~~election made pursuant to this section.(4) Production period means the production period as defined~~ in ~~paragraph (12) of subdivision~~ (b) of Section 17053.85, 17053.95, 23685, or 23695 or in paragraph (14) of subdivision (b) of Section 17053.98 or 23698.(5) (A) Qualified sales and use taxes means any state sales and use taxes imposed by Part 1 (commencing with Section 6001), on the operative date of the act adding this section.(B) Notwithstanding subparagraph (A), qualified sales and use taxes does not mean taxes imposed by Section 6051.2, 6051.5, 6201.2, 6201.5, Part 1.5 (commencing with Section 7200), Part 1.6 (commencing with Section 7251), or Section 35 of Article XIII of the California Constitution.(b) (1) A qualified taxpayer may, in lieu of claiming the credit allowed by Section 17053.85, 17053.95, 17053.98, 23685, 23695, or 23698, make an irrevocable election to apply the credit amount against qualified sales and use taxes imposed on the qualified taxpayer in accordance with this section.(2) An affiliate may, in lieu of claiming the assigned portion of the credit allowed by Section 23685, 23695, or 23698, make an irrevocable election to apply the assigned portion of the credit amount against qualified sales and use taxes imposed on the affiliate in accordance with this section.(c) (1) A qualified taxpayer or affiliate shall submit to the California Department of Tax and Fee Administration an irrevocable election, in a form as prescribed by the California Department of Tax and Fee Administration, which shall include, but not be limited to, the following information:(~~A) Representation~~ that ~~the claimant~~ is ~~a qualified taxpayer~~ or ~~an affiliate.(B) Statement of the dates~~ on ~~which the production period began and ended.(C) The credit~~ amount~~, and if an affiliate, the portion of the credit~~ amount ~~assigned to~~ it and documentation supporting the assignment of that portion of the credit amount.(D) The amount of qualified sales and use taxes the claimant remitted to the California Department of Tax and Fee Administration during the period commencing on the first day of the calendar quarter commencing immediately before the beginning of the production period, and ending on the date the claimant was required to file its most recent sales and use tax return with the California Department of Tax and Fee Administration.(E) A copy of the credit certificate issued pursuant to subparagraph (C) of paragraph (2) of subdivision (g) of Section 17053.85 or 23685 or subparagraph (D) of paragraph (3) of subdivision (g) of Section 17053.95, 17053.98, 23695, or 23698.(2) The election shall be filed on or before the date on which the qualified taxpayer or affiliate would first be allowed to claim a credit pursuant to Section 17053.85, 17053.95, 17053.98, 23685, 23695, or 23698 on its tax return.(3) (A) For those amounts for which an irrevocable election is made in lieu of tax credits allowed pursuant to Section 17053.85, 17053.95, 17053.98, 23685, 23695, or 23698 that would otherwise be allowed for any taxable year beginning on or after January 1, 2020, and before January 1, 2023, 2022, subdivision (d) and paragraph (1) of subdivision (e) shall only apply to those in-lieu credit amounts that do not exceed five million dollars ($5,000,000) for that taxable year.(B) For those amounts for which an irrevocable election is made in lieu of tax credits allowed pursuant to Section 17053.85, 17053.95, 17053.98, 23685, 23695, or 23698 that would otherwise be allowed for any taxable year beginning on or after January 1, 2020, and before January 1, 2023, 2022, that are in excess of five million dollars ($5,000,000) for that taxable year, subdivision (f) shall apply.(d) (1) The claimant may elect to obtain a refund of qualified sales and use taxes paid during the period described in subparagraph (D) of paragraph (1) of subdivision (c). If the claimant elects to obtain a refund of qualified sales and use taxes, the claimant shall file a claim for refund with the irrevocable election described in subdivision (c). The refund amount shall not exceed, for a qualified taxpayer, the credit amount, or for an affiliate, the portion of the credit amount assigned to it.(2) No interest shall be paid on any amount refunded or credited pursuant to paragraph (1).(e) (1) If the claimant does not elect to obtain a refund or in the case where the credit amount, or assigned portion, exceeds the amount of its claim for refund for the qualified sales and use taxes, the claimant may, for the reporting periods in the five years following the last reporting period as described in subparagraph (D) of paragraph (1) of subdivision (c), offset any remaining credit amount, or assigned portion, against the qualified sales and use taxes imposed during those reporting periods.(2) Notwithstanding paragraph (1), the total amount of refunds or credit offsets claimed under subdivision (d) and paragraph (1) of this subdivision in lieu of tax credits allowed pursuant to Section 17053.85, 17053.95, 17053.98, 23685, 23695, or 23698 that would otherwise be allowed for a taxable year beginning on or after January 1, 2020, and before January 1, 2023, 2022, shall not exceed five million dollars ($5,000,000).(f) Notwithstanding subdivision (d) and paragraph (1) of subdivision (e), for those amounts for which an irrevocable election is made in lieu of tax credits allowed pursuant to Section 17053.85, 17053.95, 17053.98, 23685, 23695, or 23698 that would otherwise be allowed for any taxable year beginning on or after January 1, 2020, and before January 1, 2023, 2022, that are in excess of five million dollars ($5,000,000) for that taxable year, the claimant may offset that excess credit amount, or assigned portion, against the qualified sales and use taxes imposed during the reporting periods in the five years both of the following and including the reporting period beginning on and after January 1, 2024. shall apply:(1) The claimant may elect to obtain a refund of the qualified sales and use taxes paid or offset that excess credit amount, or assigned portion against the qualified sales and use taxes imposed, during the reporting periods that occur during the 2021 calendar year. The total amount of refunds or credit offsets claimed under this paragraph, subdivision (d), and paragraph (1) of subdivision (e) shall not exceed five million dollars ($5,000,000) in the 2021 calendar year for each claimant.(2) If the claimant has not exhausted the excess credit amount, or assigned portion, as provided by paragraph (1), the claimant may offset the remaining excess credit amount, or assigned portion, against the qualified sales and use taxes imposed during the reporting periods in the five years following and including the reporting period beginning on and after January 1, 2022.(g) Section 6961 shall apply to any refund, or part thereof, that is erroneously made and any credit, or part thereof, that is erroneously allowed pursuant to this section.(h) The California Department of Tax and Fee Administration shall provide an annual listing to the Franchise Tax Board, in a form and manner agreed upon by the California Department of Tax and Fee Administration and the Franchise Tax Board, of the qualified taxpayers, or affiliates that have been assigned a portion of the credit allowed under Section 23685 pursuant to subdivision (c) of Section 23685, Section 23695 pursuant to subdivision (c) of Section 23695, or Section 23698 pursuant to subdivision (c) of Section 23698, who, during the year, have made an irrevocable election pursuant to this section and the credit amount, or portion of the credit amount, claimed by each qualified taxpayer or affiliate.(i) The California Department of Tax and Fee Administration may prescribe rules and regulations for the administration of this section.(j) The amendments made to this section by the act adding this subdivision shall not apply to irrevocable elections made before the operative date of the act adding this subdivision.(k) The amendments made to this section by the act adding this subdivision shall apply to irrevocable elections made on and after June 29, 2020.SEC. 5. Section 12209 of the Revenue and Taxation Code is amended to read:12209. (a) Notwithstanding Sections 12207 and 12208 to the contrary, for the years 2020, 2021, 2020 and 2022, 2021, the total amount of all credits otherwise allowable under Sections 12207 and 12208, including any credit amount allowed to be carried over pursuant to those sections or subdivision (c), shall not reduce the tax, as described by Section 12201, by more than five million dollars ($5,000,000) for a given year.(b) (1) The amount of any credit otherwise allowable for a year under Section 12207 that is not allowed due to the application of this section shall remain a credit carryover amount under Section 12207.(2) The carryover period for any credit allowable under Section 12207 that is not allowed due to the application of this section shall be increased by the number of years the credit or any portion thereof was not allowed.(c) The amount of any credit otherwise allowable for a year under Section 12208 that was not allowed due to the application of this section may be carried over to reduce the tax, as described by Section 12201, for the following year, and succeeding years if necessary, until the credit amount or any portion thereof that was not allowed due to the application of this section is exhausted. However, any credit amount under Section 12208 that is allowed to be carried over pursuant to this subdivision is also subject to the limitation in subdivision (a).(d) The limitation under subdivision (a) shall not apply to the credit allowed by Section 12206 (relating to credit for low-income housing).SEC. 6. Section 17039 of the Revenue and Taxation Code is amended to read:17039. (a) Notwithstanding any provision in this part to the contrary, for the purposes of computing tax credits, the term net tax means the tax imposed under either Section 17041 or 17048 plus the tax imposed under Section 17504 (relating to lump-sum distributions) less the credits allowed by Section 17054 (relating to personal exemption credits) and any amount imposed under paragraph (1) of subdivision (d) and paragraph (1) of subdivision (e) of Section 17560. Notwithstanding the preceding sentence, the net tax shall not be less than the tax imposed under Section 17504 (relating to the separate tax on lump-sum distributions), if any. Credits shall be allowed against net tax in the following order:(1) Credits that do not contain carryover or refundable provisions, except those described in paragraphs (4) and (5).(2) Credits that contain carryover provisions but do not contain refundable provisions, except for those that are allowed to reduce net tax below the tentative minimum tax, as defined by Section 17062.(3) Credits that contain both carryover and refundable provisions.(4) The minimum tax credit allowed by Section 17063 (relating to the alternative minimum tax).(5) Credits (A) For taxable years beginning on or after January 1, 2002, and before January 1, 2022, credits that are allowed to reduce net tax below the tentative minimum tax, as defined by Section 17062.(B) For taxable years beginning on or after January 1, 2022, credits that are allowed to reduce net tax below the tentative minimum tax, as defined by Section 17062, except the credit described in paragraph (7).(6) Credits for taxes paid to other states allowed by Chapter 12 (commencing with Section 18001).(7) For taxable years beginning on or after January 1, 2022, the credit allowed by Section 17052.10 (relating to the elective tax under the Small Business Relief Act).(7)(8) Credits that contain refundable provisions but do not contain carryover provisions.The order within each paragraph shall be determined by the Franchise Tax Board.(b) Notwithstanding the provisions of Sections 17061 (relating to refunds pursuant to the Unemployment Insurance Code) and 19002 (relating to tax withholding), the credits provided in those sections shall be allowed in the order provided in paragraph (6) of subdivision (a).(c) (1) Notwithstanding any other provision of this part, no tax credit shall reduce the tax imposed under Section 17041 or 17048 plus the tax imposed under Section 17504 (relating to the separate tax on lump-sum distributions) below the tentative minimum tax, as defined by Section 17062, except the following credits:(A) The credit allowed by former Section 17052.2 (relating to teacher retention tax credit). credit, repealed on August 24, 2007).(B) The credit allowed by former Section 17052.4 (relating to solar energy). energy, repealed on December 1, 1989).(C) The credit allowed by former Section 17052.5 (relating to solar energy, repealed on January 1, 1987).(D) The credit allowed by former Section 17052.5 (relating to solar energy, repealed on December 1, 1994).(E) The credit allowed by Section 17052.12 (relating to research expenses).(F) The credit allowed by former Section 17052.13 (relating to sales and use tax credit). credit, repealed on January 1, 1997).(G) The credit allowed by former Section 17052.15 (relating to Los Angeles Revitalization Zone sales tax credit). credit, repealed on December 1, 1998).(H) The credit allowed by Section 17052.25 (relating to the adoption costs credit).(I) The credit allowed by Section 17053.5 (relating to the renters credit).(J) The credit allowed by former Section 17053.8 (relating to enterprise zone hiring credit). credit, repealed on October 3, 1997).(K) The credit allowed by former Section 17053.10 (relating to Los Angeles Revitalization Zone hiring credit). credit, repealed on December 1, 1998).(L) The credit allowed by former Section 17053.11 (relating to program area hiring credit). credit, repealed on January 1, 1997).(M) For each taxable year beginning on or after January 1, 1994, the credit allowed by former Section 17053.17 (relating to Los Angeles Revitalization Zone hiring credit). credit, repealed on December 1, 1998).(N) The credit allowed by former Section 17053.33 (relating to targeted tax area sales or use tax credit). credit, repealed on December 1, 2015).(O) The credit allowed by former Section 17053.34 (relating to targeted tax area hiring credit). credit, repealed on December 1, 2019).(P) The credit allowed by former Section 17053.49 (relating to qualified property). property, repealed on January 1, 2004).(Q) The credit allowed by former Section 17053.70 (relating to enterprise zone sales or use tax credit). credit, repealed on December 1, 2015).(R) The credit allowed by former Section 17053.74 (relating to enterprise zone hiring credit). credit, repealed on December 1, 2019).(S) The credit allowed by Section 17054 (relating to credits for personal exemption).(T) The credit allowed by Section 17054.5 (relating to the credits for a qualified joint custody head of household and a qualified taxpayer with a dependent parent).(U) The credit allowed by Section 17054.7 (relating to the credit for a senior head of household).(V) The credit allowed by former Section 17057 (relating to clinical testing expenses). expenses, repealed on December 1, 1993).(W) The credit allowed by Section 17058 (relating to low-income housing).(X) For taxable years beginning on or after January 1, 2014, the credit allowed by Section 17059.2 (relating to GO-Biz California Competes Credit).(Y) The credit allowed by Section 17061 (relating to refunds pursuant to the Unemployment Insurance Code).(Z) Credits for taxes paid to other states allowed by Chapter 12 (commencing with Section 18001).(AA) The credit allowed by Section 19002 (relating to tax withholding).(AB) For taxable years beginning on or after January 1, 2014, the credit allowed by former Section 17053.86 (relating to the College Access Tax Credit Fund). Fund, repealed on December 1, 2017).(AC) For taxable years beginning on or after January 1, 2017, the credit allowed by Section 17053.87 (relating to the College Access Tax Credit Fund).(AD) For taxable years beginning on or after January 1, 2021, the credit allowed by Section 17052.10 (relating to the elective tax under the Small Business Relief Act).(2) Any credit that is partially or totally denied under paragraph (1) shall be allowed to be carried over and applied to the net tax in succeeding taxable years, if the provisions relating to that credit include a provision to allow a carryover when that credit exceeds the net tax.(d) Unless otherwise provided, any remaining carryover of a credit allowed by a section that has been repealed or made inoperative shall continue to be allowed to be carried over under the provisions of that section as it read immediately before being repealed or becoming inoperative.(e) (1) Unless otherwise provided, if two or more taxpayers (other than spouses) share in costs that would be eligible for a tax credit allowed under this part, each taxpayer shall be eligible to receive the tax credit in proportion to his or her the taxpayers respective share of the costs paid or incurred.(2) In the case of a partnership, the credit shall be allocated among the partners pursuant to a written partnership agreement in accordance with Section 704 of the Internal Revenue Code, relating to partners distributive share.(3) In the case of spouses who file separate returns, the credit may be taken by either or equally divided between them.(f) Unless otherwise provided, in the case of a partnership, any credit allowed by this part shall be computed at the partnership level, and any limitation on the expenses qualifying for the credit or limitation upon the amount of the credit shall be applied to the partnership and to each partner.(g) (1) With respect to any taxpayer that directly or indirectly owns an interest in a business entity that is disregarded for tax purposes pursuant to Section 23038 and any regulations thereunder, the amount of any credit or credit carryforward allowable for any taxable year attributable to the disregarded business entity shall be limited in accordance with paragraphs (2) and (3).(2) The amount of any credit otherwise allowed under this part, including any credit carryover from prior years, that may be applied to reduce the taxpayers net tax, as defined in subdivision (a), for the taxable year shall be limited to an amount equal to the excess of the taxpayers regular tax (as defined in Section 17062), determined by including income attributable to the disregarded business entity that generated the credit or credit carryover, over the taxpayers regular tax (as defined in Section 17062), determined by excluding the income attributable to that disregarded business entity. A credit shall not be allowed if the taxpayers regular tax (as defined in Section 17062), determined by including the income attributable to the disregarded business entity, is less than the taxpayers regular tax (as defined in Section 17062), determined by excluding the income attributable to the disregarded business entity.(3) If the amount of a credit allowed pursuant to the section establishing the credit exceeds the amount allowable under this subdivision in any taxable year, the excess amount may be carried over to subsequent taxable years pursuant to subdivisions (c) and (d).(h) (1) Unless otherwise specifically provided, in the case of a taxpayer that is a partner or shareholder of an eligible pass-thru entity described in paragraph (2), any credit passed through to the taxpayer in the taxpayers first taxable year beginning on or after the date the credit is no longer operative may be claimed by the taxpayer in that taxable year, notwithstanding the repeal of the statute authorizing the credit before the close of that taxable year.(2) For purposes of this subdivision, eligible pass-thru entity means any partnership or S corporation that files its return on a fiscal year basis pursuant to Section 18566, and that is entitled to a credit pursuant to this part for the taxable year that begins during the last year the credit is operative.(3) This subdivision applies to credits that become inoperative on or after the operative date of the act adding this subdivision. January 1, 2002.(i) The amendments made to this section by the act adding this subdivision shall apply as follows:(1) The amendments to subdivisions (a), (e), and (h) shall be operative for taxable years beginning on or after January 1, 2022.(2) The amendments to subdivision (c) shall be operative for taxable years beginning on or after January 1, 2021.SEC. 7. Section 17039.3 of the Revenue and Taxation Code is amended to read:17039.3. (a) Notwithstanding any provision of this part or Part 10.2 (commencing with Section 18401) to the contrary, for taxpayers not required to be included in a combined report under Section 25101 or 25110, or taxpayers not authorized to be included in a combined report under Section 25101.15, for each taxable year beginning on or after January 1, 2020, and before January 1, 2023, 2022, the total of all business credits otherwise allowable under any provision of Chapter 2 (commencing with Section 17041), including the carryover of any business credit under a former provision of that chapter, for the taxable year shall not reduce the net tax, as defined in Section 17039, by more than five million dollars ($5,000,000).(b) Notwithstanding any provision of this part or Part 10.2 (commencing with Section 18401) to the contrary, for taxpayers required to be included in a combined report under Section 25101 or 25110, or taxpayers authorized to be included in a combined report under Section 25101.15, for each taxable year beginning on or after January 1, 2020, and before January 1, 2023, 2022, the total of all business credits otherwise allowable under any provision of Chapter 2 (commencing with Section 17041), including the carryover of any business credit under a former provision of that chapter, by all members of the combined report shall not reduce the aggregate amount of tax, as defined in Section 23036, of all members of the combined report by more than five million dollars ($5,000,000).(c) For purposes of this section, business credit means a credit allowable under any provision of Chapter 2 (commencing with Section 17041) other than the following credits:(1) The credit allowed by Section 17052 (relating to credit for earned income).(2) The credit allowed by Section 17052.1 (relating to credit for young child).(3) The credit allowed by Section 17052.6 (relating to credit for household and dependent care).(4) The credit allowed by Section 17052.25 (relating to credit for adoption costs).(5) The credit allowed by Section 17053.5 (relating to renters tax credit).(6) The credit allowed by Section 17054 (relating to credit for personal exemption).(7) The credit allowed by Section 17054.5 (relating to credit for qualified joint custody head of household and a qualified taxpayer with a dependent parent).(8) The credit allowed by Section 17054.7 (relating to credit for qualified senior head of household).(9) The credit allowed by Section 17058 (relating to credit for low-income housing).(10) The credit allowed by Section 17061 (relating to refunds pursuant to the Unemployment Insurance Code).(d) Any amounts included in an election pursuant to Section 6902.5, relating to an irrevocable election to apply credit amounts under Section 17053.85, 17053.95, 17053.98, 23685, 23695, or 23698 against qualified sales and use tax, as defined in Section 6902.5, are not included in the five-million-dollar ($5,000,000) limitation set forth in subdivision (a) or (b).(e) The amount of any credit otherwise allowable for the taxable year under Section 17039 that is not allowed due to application of this section shall remain a credit carryover amount under this part.(f) The carryover period for any credit that is not allowed due to the application of this section shall be increased by the number of taxable years the credit or any portion thereof was not allowed.(g) Notwithstanding anything to the contrary in this part or Part 10.2 (commencing with Section 18401), the credits listed in subdivision (c) shall be applied after any business credits, as limited by subdivision (a) or (b), are applied.(h) Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code does not apply to any standard, criterion, procedure, determination, rule, notice, or guideline established or issued by the Franchise Tax Board pursuant to this section.(i) The amendments made to this section by the act adding this subdivision shall be operative for taxable years beginning on or after January 1, 2022.SEC. 8. Section 17052.10 of the Revenue and Taxation Code is amended to read:17052.10. (a) For taxable years beginning on or after January 1, 2021, and before January 1, 2026, there shall be allowed to a qualified taxpayer a credit against the net tax, as defined in Section 17039, in an amount equal to the qualified amount.(b) For purposes of this section:(1) Electing qualified entity means a qualified entity, as defined by Section 19902, that has elected to pay the elective tax under Part 10.4 (commencing with Section 19900).(2) Qualified amount means an amount equal to 9.3 percent of the sum of the qualified taxpayers guaranteed payments as defined by Section 707(c) of the Internal Revenue Code, relating to guaranteed payments, and the qualified taxpayers pro rata share or distributive share, as applicable, of income, as determined under this part and Part 11 (commencing with Section 23001), subject to tax under this part included in qualified net income income, as defined in Section 19900, subject to the election made by an electing qualified entity under Part 10.4 (commencing with Section 19900).(3) Qualified taxpayer means: (3)(A)Qualified taxpayer means a(A) A taxpayer, as defined in Section 17004, excluding partnerships, that is a partner, shareholder, or member of an electing qualified entity that consented to have the sum of their guaranteed payments and pro rata share or distributive share of income, as determined under Part 10 (commencing with Section 17001) this part and Part 11 (commencing with Section 23001), subject to tax under this part included in the qualified net income income, as defined in Section 19900, of the electing qualified entity.(B) Qualified taxpayer does not include a business entity that is disregarded for federal tax purposes, as described in Section 23038, or its partners or members.(C) Subparagraph (B) shall not apply to a limited liability company that is disregarded for federal tax purposes, as described in Section 23038, and meets both of the following:(i) Is owned by a taxpayer, as defined in Section 17004, excluding partnerships, that consented to have the sum of their guaranteed payments and pro rata share or distributive share of income, as determined under this part and Part 11 (commencing with Section 23001), subject to tax under this part included in the qualified net income, as defined in Section 19900, of the electing qualified entity.(ii) Is a partner, shareholder, or member of an electing qualified entity.(c) In the case where the credit allowed by this section exceeds the net tax, the excess may be carried over to reduce the net tax in the following taxable year, and succeeding four years, if necessary, until the credit is exhausted.(d) (1) Any disallowance of a credit under this section due to any of the following conditions shall be treated as a mathematical error appearing on the return:(A) Timely payment was not made under subdivision (b) of Section 19904.(B) Payments made for the taxable year exceed the elective tax computed under Part 10.4 (commencing with Section 19900).(C) No election was made or allowed under Part 10.4 (commencing with Section 19900).(2) Any amount of tax resulting from such disallowance may be assessed by the Franchise Tax Board in the same manner as provided by Section 19051.(e) (1) The Franchise Tax Board may adopt regulations that are necessary or appropriate to implement this section.(2) Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code shall not apply to any regulation, rule, guideline, or procedure prescribed by the Franchise Tax Board pursuant to this section.(f) For the purposes of complying with Section 41, the Legislature finds and declares that the goal of this tax credit is to provide tax relief to small businesses facing unprecedented economic hurdles due to COVID-19.(g) The amendments made to this section by the act adding this subdivision shall apply for taxable years beginning on or after January 1, 2021, and before January 1, 2026.(g)(h) This section shall remain in effect only until December 1, 2026, and as of that date is repealed.SEC. 9. Section 17131.16 is added to the Revenue and Taxation Code, to read:17131.16. (a) For taxable years beginning on or after January 1, 2021, and before January 1, 2026, gross income does not include a bill credit or credits received by a customer from a community water system or wastewater treatment provider pursuant to the Water and Wastewater System Payments Under the American Rescue Plan Act of 2021 (Chapter 4.7 (commencing with Section 116773) of Part 12 of Division 104 of the Health and Safety Code). (b) This section shall remain in effect only until December 1, 2026, and as of that date is repealed.SEC. 10. Section 17131.17 is added to the Revenue and Taxation Code, to read:17131.17. (a) For taxable years beginning on or after January 1, 2021, and before January 1, 2026, gross income does not include a bill credit or credits received by a customer from a utility applicant under the California Arrearage Payment Program (CAPP), pursuant to the California Arrearage Payment Program Under the American Rescue Plan Act of 2021 (Article 12 (commencing with Section 16429.5) of Chapter 2 of Part 2 of Division 4 of Title 2 of the Government Code).(b) This section shall remain in effect only until December 1, 2026, and as of that date is repealed.SEC. 11. Section 17158.2 is added to the Revenue and Taxation Code, to read:17158.2. (a) For taxable years beginning on or after January 1, 2020, gross income does not include any amount awarded as a restaurant revitalization grant pursuant to Section 9009c of Title 15 of the United States Code.(b) (1) Notwithstanding Section 17280, for taxable years beginning on or after January 1, 2020, paragraph (2) of Section 9673 of the American Rescue Plan Act of 2021 (Public Law 117-2) shall apply, except as provided.(2) Paragraph (2) of Section 9673 of the American Rescue Plan Act of 2021 (Public Law 117-2) is modified by substituting the phrase provided by paragraph (1) with provided by this section.(c) The Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) shall not apply to any standard, criterion, procedure, determination, rule, notice, guideline, or any other guidance established or issued by the Franchise Tax Board pursuant to this section.(d) This section shall be operative for taxable years beginning on or after January 1, 2020.SEC. 12. Section 17158.3 is added to the Revenue and Taxation Code, to read:17158.3. (a) For taxable years beginning on or after January 1, 2019, gross income does not include any amount awarded as a shuttered venue operator grant pursuant to Section 9009a of Title 15 of the United States Code.(b) (1) Notwithstanding Section 17280, for taxable years beginning on or after January 1, 2019, subsection (d) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall apply, except as provided.(2) Subsection (d) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) is modified by substituting the phrase For purposes of the Internal Revenue Code of 1986 with For purposes of this part.(3) Paragraphs (2) and (3) of subsection (d) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall not apply to an ineligible entity.(c) For purposes of this section:(1) Ineligible entity means a taxpayer that either:(A) Is a publicly-traded company.(B) Does not meet the reduction from the gross receipts requirements of Section 636(a)(37)(A)(iv)(bb) of Title 15 of the United States Code, as added by Section 311 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260).(2) Publicly-traded company means a publicly-traded entity as described in Section 342 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260).(d) This section shall be operative for taxable years beginning on or after January 1, 2019.SEC. 13. Section 17276.23 of the Revenue and Taxation Code is amended to read:17276.23. (a) Notwithstanding Sections 17276, 17276.1, 17276.4, 17276.7, and 17276.22, former Sections 17276.2, 17276.5, 17276.6, and 17276.20, and Section 172 of the Internal Revenue Code, a net operating loss deduction shall not be allowed for any taxable year beginning on or after January 1, 2020, and before January 1, 2023. 2022.(b) For any net operating loss or carryover of a net operating loss for which a deduction is denied by subdivision (a), the carryover period under Section 172 of the Internal Revenue Code shall be extended as follows:(1) By one year, for losses incurred in taxable years beginning on or after January 1, 2021, and before January 1, 2022.(2) By two years, for losses incurred in taxable years beginning on or after January 1, 2020, and before January 1, 2021.(3) By three years, for losses incurred in taxable years beginning before January 1, 2020.(c) This section shall not apply as follows:(1) For a taxable year beginning on or after January 1, 2020, and before January 1, 2023, 2022, this section shall not apply to a taxpayer with a net business income of less than one million dollars ($1,000,000) for the taxable year.(2) For a taxable year beginning on or after January 1, 2020, and before January 1, 2023, 2022, this section shall not apply to a taxpayer with a modified adjusted gross income of less than one million dollars ($1,000,000) for the taxable year.(d) For purposes of this section:(1) Business income means any of the following:(A) Income from a trade or business, whether conducted by the taxpayer or by a passthrough entity owned directly or indirectly by the taxpayer.(B) Income from rental activity.(C) Income attributable to a farming business.(2) Modified adjusted gross income means the amount described in paragraph (2) of subdivision (h) of Section 17024.5, determined without regard to the deduction allowed under Section 172 of the Internal Revenue Code, relating to net operating loss deduction.(3) Passthrough entity means a partnership or an S corporation.(e) The amendments made to this section by the act adding this subdivision shall be operative for taxable years beginning on or after January 1, 2022.SEC. 14. Section 19900 of the Revenue and Taxation Code is amended to read:19900. (a) (1) For taxable years beginning on or after January 1, 2021, and before January 1, 2026, a qualified entity doing business in this state, as defined in Section 23101, and that is required to file a return under Section 18633, 18633.5, or subdivision (a) of Section 18601, may elect to annually pay an elective tax according to or measured by its qualified net income, defined in paragraph (2), computed at the rate of 9.3 percent for the taxable year for which the election is made.(2) For purposes of this section, the qualified net income of a qualified entity means the sum of the pro rata share or distributive share of income income, and any guaranteed payments, as described by Section 707(c) of the Internal Revenue Code, relating to guaranteed payments, subject to tax under Part 10 (commencing with Section 17001) for the taxable year of each qualified taxpayer, as defined in Section 17052.10.(b) (1) The elective tax authorized by this part shall be in addition to, and not in place of, any other tax or fee required to be paid under Part 10 (commencing with Section 17001) or Part 11 (commencing with Section 23001).(2) The elective tax described in this part shall be assessed and collected under Part 10.2 (commencing with Section 18401).(3) Unless the context otherwise requires, the definitions set forth in this part and those in Part 10 (commencing with Section 17001), Part 10.2 (commencing with Section 18401), or Part 11 (commencing with Section 23001) shall apply.(c) (1) The qualified entity may include in its qualified net income the pro rata share or distributive share of the income of any of its partners, shareholders, or members upon their consent. A partner, shareholder, or member that does not consent does not prevent the qualified entity from making an election to pay the elective tax.(2) All partners, shareholders, and members of the qualified entity shall be bound by the election made under this part for the taxable year.(d) The election shall be irrevocable and shall be made on an original, timely filed return required under Part 10.2 (commencing with Section 18401) for the taxable year of the election in the form and manner as prescribed by the Franchise Tax Board.(e) The amendments made to this section by the act adding this subdivision shall apply for taxable years beginning on or after January 1, 2021, and before January 1, 2026.SEC. 15. Section 19902 of the Revenue and Taxation Code is amended to read:19902. (a) For purposes of this part, qualified entity means an entity that meets both of the following requirements for the taxable year:(1) The entity is taxed as a partnership or S corporation.(2) The entitys partners, shareholders, or members in that taxable year are exclusively corporations, as defined in Section 23038, or taxpayers as defined in Section 17004, excluding partnerships. 17004.(b) Qualified entity shall not include any of the following:(1) Publicly traded partnerships, as defined in Section 7704 of the Internal Revenue Code, as it read on January 1, 2021, as modified by Section 17008.5.(2) An entity that is permitted or required to be in a combined reporting group, as defined in paragraph (3) of subdivision (b) of Section 25106.5 of Title 18 of the California Code of Regulations.(c) The amendments made to this section by the act adding this subdivision shall apply for taxable years beginning on or after January 1, 2021, and before January 1, 2026.SEC. 16. Section 23036.3 of the Revenue and Taxation Code is amended to read:23036.3. (a) Notwithstanding any provision of this part or Part 10.2 (commencing with Section 18401) to the contrary, except as provided in subdivision (d), for taxpayers not required to be included in a combined report under Section 25101 or 25110, or taxpayers not authorized to be included in a combined report under Section 25101.15, for each taxable year beginning on or after January 1, 2020, and before January 1, 2023, 2022, the total of all credits otherwise allowable under any provision of Chapter 3.5 (commencing with Section 23604) including the carryover of any credit under a former provision of that chapter, for the taxable year shall not reduce the tax, as defined in Section 23036, by more than five million dollars ($5,000,000).(b) Notwithstanding any provision of this part or Part 10.2 (commencing with Section 18401) to the contrary, except as provided in subdivision (d), for taxpayers required to be included in a combined report under Section 25101 or 25110, or taxpayers authorized to be included in a combined report under Section 25101.15, for each taxable year beginning on or after January 1, 2020, and before January 1, 2023, 2022, the total of all credits otherwise allowable under any provision of Chapter 3.5 (commencing with Section 23604), including the carryover of any credit under a former provision of that chapter, by all members of the combined report shall not reduce the aggregate amount of tax, as defined in Section 23036, of all members of the combined report by more than five-million-dollars ($5,000,000).(c) Any amounts included in an election pursuant to Section 6902.5, relating to an irrevocable election to apply credit amounts under Section 17053.85, 17053.95, 17053.98, 23685, 23695, or 23698 against qualified sales and use tax, as defined in Section 6902.5, are not included in the five million dollar ($5,000,000) limitation set forth in subdivision (a) or (b).(d) The limitation under subdivision (a) or (b) shall not apply to the credit allowed by Section 23610.5 (relating to credit for low-income housing).(e) The amount of any credit otherwise allowable for the taxable year under Section 23036 that is not allowed due to the application of this section shall remain a credit carryover amount under this part.(f) The carryover period for any credit that is not allowed due to the application of this section shall be increased by the number of taxable years the credit or any portion thereof was not allowed.(g) Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code does not apply to any standard, criterion, procedure, determination, rule, notice, or guideline established or issued by the Franchise Tax Board pursuant to this section.(h) The amendments made to this section by the act adding this subdivision shall be operative for taxable years beginning on or after January 1, 2022.SEC. 17. Section 24308.2 is added to the Revenue and Taxation Code, to read:24308.2. (a) For taxable years beginning on or after January 1, 2020, gross income does not include any amount awarded as a restaurant revitalization grant pursuant to Section 9009c of Title 15 of the United States Code.(b) (1) Notwithstanding Section 24425, for taxable years beginning on or after January 1, 2020, paragraph (2) of Section 9673 of the American Rescue Plan Act of 2021 (Public Law 117-2) shall apply, except as provided.(2) Paragraph (2) of Section 9673 of the American Rescue Plan Act of 2021 (Public Law 117-2) is modified by substituting the phrase provided by paragraph (1) with provided by this section.(c) The Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) shall not apply to any standard, criterion, procedure, determination, rule, notice, guideline, or any other guidance established or issued by the Franchise Tax Board pursuant to this section.(d) This section shall be operative for taxable years beginning on or after January 1, 2020.SEC. 18. Section 24308.3 is added to the Revenue and Taxation Code, to read:24308.3. (a) For taxable years beginning on or after January 1, 2019, gross income does not include any amount awarded as a shuttered venue operator grant pursuant to Section 9009a of Title 15 of the United States Code.(b) (1) Notwithstanding Section 24425, for taxable years beginning on or after January 1, 2019, subsection (d) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall apply, except as provided.(2) Subsection (d) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) is modified by substituting the phrase For purposes of the Internal Revenue Code of 1986 with For purposes of this part.(3) Paragraphs (2) and (3) of subsection (d) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall not apply to an ineligible entity.(c) For purposes of this section:(1) Ineligible entity means a taxpayer that either:(A) Is a publicly-traded company.(B) Does not meet the reduction from the gross receipts requirements of Section 636(a)(37)(A)(iv)(bb) of Title 15 of the United States Code, as added by Section 311 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260).(2) Publicly-traded company means a publicly-traded entity as described in Section 342 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260).(d) This section shall be operative for taxable years beginning on or after January 1, 2019.SEC. 19. Section 24308.4 is added to the Revenue and Taxation Code, to read:24308.4. (a) For taxable years beginning on or after January 1, 2021, and before January 1, 2026, gross income does not include a bill credit or credits received by a customer from a community water system or wastewater treatment provider pursuant to the Water and Wastewater System Payments Under the American Rescue Plan Act of 2021 (Chapter 4.7 (commencing with Section 116773) of Part 12 of Division 104 of the Health and Safety Code). (b) This section shall remain in effect only until December 1, 2026, and as of that date is repealed.SEC. 20. Section 24308.5 is added to the Revenue and Taxation Code, to read:24308.5. (a) For taxable years beginning on or after January 1, 2021, and before January 1, 2026, gross income does not include a bill credit or credits received by a customer from a utility applicant pursuant to the California Arrearage Payment Program Under the American Rescue Plan Act of 2021 (Article 12 (commencing with Section 16429.5) of Chapter 2 of Part 2 of Division 4 of Title 2 of the Government Code).(b) This section shall remain in effect only until December 1, 2026, and as of that date is repealed.SEC. 21. Section 24416.23 of the Revenue and Taxation Code is amended to read:24416.23. (a) Notwithstanding Sections 24416, 24416.1, 24416.4, 24416.7, and 24416.22, former Sections 24416.2, 24416.5, 24416.6, and 24416.20, and Section 172 of the Internal Revenue Code, a net operating loss deduction shall not be allowed for any taxable year beginning on or after January 1, 2020, and before January 1, 2023. 2022.(b) For any net operating loss or carryover of a net operating loss for which a deduction is denied by subdivision (a), the carryover period under Section 172 of the Internal Revenue Code shall be extended as follows:(1) By one year, for losses incurred in taxable years beginning on or after January 1, 2021, and before January 1, 2022.(2) By two years, for losses incurred in taxable years beginning on or after January 1, 2020, and before January 1, 2021.(3) By three years, for losses incurred in taxable years beginning before January 1, 2020.(c) The disallowance of any net operating loss deduction for any taxable year beginning on or after January 1, 2020, and before January 1, 2023, 2022, pursuant to subdivision (a) shall not apply to a taxpayer with income subject to tax under this part of less than one million dollars ($1,000,000) for the taxable year.(d) The amendments made to this section by the act adding this subdivision shall be operative for taxable years beginning on or after January 1, 2022.SEC. 22. For the purposes of complying with Section 41 of the Revenue and Taxation Code, with respect to Sections 17158.2, 17158.3, 24308.2, and 24308.3 of the Revenue and Taxation Code, as added by this act (hereafter the deductions, exclusions, tax basis, and other attributes), the Legislature finds and declares all of the following:(a) The specific goal, purpose, and objective that the deductions, exclusions, tax basis, and other attributes will achieve is to provide assistance to shuttered venues and restaurants operating in the state that have been harmed economically by the COVID-19 pandemic.(b) Detailed performance indicators for the Legislature to use in determining whether the deductions, exclusions, tax basis, and other attributes meet the goal, purpose, and objective described in subdivision (a) is the extent to which the businesses that received a shuttered venue operator grant or restaurant revitalization grant and subsequently used the deductions, exclusions, tax basis, and other attributes reflect the industries, regions, and businesses by type of ownership that were most substantially harmed by the COVID-19 pandemic, and whether any particular industries, regions, or businesses by type of ownership in the business community were not able to receive a shuttered venue operator grant or restaurant revitalization grant and the deductions, exclusions, tax basis, and other attributes.(c) The Legislative Analysts Office shall collaborate with the Franchise Tax Board, as well as reviewing other publicly available data, to analyze whether the shuttered venue operator grants and restaurant revitalization grant and the tax benefits of the deductions, exclusions, tax basis, and other attributes were distributed evenly over regions and businesses by type of ownership harmed by the COVID-19 pandemic and report by January 1, 2024, and in compliance with Section 9795 of the Government Code, to the Legislature.(d) The data collection requirements for determining whether the deductions, exclusions, tax basis, and other attributes meet, or fail to meet, the specific goal, purpose, and objective described in subdivision (a) are:(1) To assist the Legislature in determining whether the deductions, exclusions, tax basis, and other attributes meet the specific goal, purpose, and objective described in subdivision (a), and in order to carry out its duties pursuant to subdivision (c), the Legislative Analysts Office may request information from the Franchise Tax Board.(2) (A) The Franchise Tax Board shall provide any available data requested by the Legislative Analysts Office pursuant to this subdivision.(B) The disclosure provisions of this paragraph shall be treated as an exception to Section 19542 under Article 2 (commencing with Section 19542) of Chapter 7 of Part 10.2 of Division 2 of the Revenue and Taxation Code.SEC. 23. (a) For the purposes of complying with Section 41 of the Revenue and Taxation Code, with respect to Sections 17131.16 and 24308.4 of the Revenue and Taxation Code, as added by this act, the Legislature finds and declares that the purpose of the exclusion allowed by Sections 17131.16 and 24308.4 of the Revenue and Taxation Code is to provide financial relief to California businesses and residents, including, in particular, low- and middle-income residents, to alleviate, in part, the adverse impacts of the economic disruptions and hardships resulting from the COVID-19 emergency.(b) (1) For the purpose of this subdivision, act means the Water and Wastewater System Payments Under the American Rescue Plan Act of 2021 (Chapter 4.7 (commencing with Section 116773) of Part 12 of Division 104 of the Health and Safety Code).(2) In order to provide information on the exclusion allowed by Sections 17131.16 and 24308.3 of the Revenue and Taxation Code, the State Water Resources Control Board shall prepare a written report that includes all of the following:(A) The total number of households that received water system bill credits pursuant to this act.(B) The total number of commercial customers that received water system bill credits pursuant to this act.(C) The total number of households that received wastewater system bill credits pursuant to this act.(D) The total number of commercial customers that received wastewater system bill credits pursuant to this act.SEC. 24. (a) For the purposes of complying with Section 41 of the Revenue and Taxation Code, with respect to Sections 17131.17 and 24308.5 of the Revenue and Taxation Code, as added by this act, the Legislature finds and declares that the purpose of the exclusion allowed by Sections 17131.17 and 24308.5 of the Revenue and Taxation Code is to provide financial relief to California businesses and residents, including, in particular, low- and middle-income residents, to alleviate, in part, the adverse impacts of the economic disruptions and hardships resulting from the COVID-19 emergency.(b) The reporting by Department of Community Services and Development to the Legislature required by subdivision (j) of Section 16429.5 of the Government Code shall constitute reporting for the purposes of complying with Section 41 of the Revenue and Taxation Code.SEC. 25. For the purposes of complying with Section 41 of the Revenue and Taxation Code, with respect to Sections 6902.5, 12209, 17039.3, 17276.23, 23036.3, and 24416.23 of the Revenue and Taxation Code, as amended by this act, the Legislature hereby finds and declares that this act merely ends the temporary limitation or suspension of existing tax expenditures one year earlier than currently provided and does not contain additional information related to the goals, purposes, and objectives of those tax expenditures. SEC. 26. For the purposes of complying with Section 41 of the Revenue and Taxation Code, the Legislature finds and declares that the goal of the tax expenditures in Sections 17039 and 17052.10, as amended by this act, is to provide tax relief to small businesses facing unprecedented economic hurdles due to COVID-19. SEC. 27. (a) The Legislature hereby finds and declares that the tax credits authorized by the amendments to Section 6902.5 of the Revenue and Taxation Code made by this bill serve the public purpose of providing equitable treatment to businesses that claim tax credits under Part 1 of the Revenue and Taxation Code as those that claim tax credits under Parts 10 and 11 of the Revenue and Taxation Code and do not constitute a gift of public funds within the meaning of Section 6 of Article XVI of the California Constitution.(b) The Legislature hereby finds and declares that the exclusions and other tax benefits authorized by Sections 17158.2, 17158.3, 24308.2, and 24308.3 of the Revenue and Taxation Code made by this bill serve the public purpose of securing the financial condition of businesses that were economically harmed by the COVID-19 pandemic and do not constitute a gift of public funds within the meaning of Section 6 of Article XVI of the California Constitution.(c) The Legislature hereby finds and declares that moneys appropriated, pursuant to Section 8654.2 of the Government Code, as added by this act, to the California Small Business COVID-19 Relief Grant Program established under Article 8 (commencing with Section 12100.80) of Chapter 1.6 of Part 2 of Division 3 of Title 2 of the Government Code serves the public purpose of preventing revenue decreases, closures, and higher unemployment across the state due to the COVID-19 pandemic, and does not constitute a gift of public funds within the meaning of Section 6 of Article XVI of the California Constitution. SEC. 28. This act is a bill providing for appropriations related to the Budget Bill within the meaning of subdivision (e) of Section 12 of Article IV of the California Constitution, has been identified as related to the budget in the Budget Bill, and shall take effect immediately.
	1	+	Amended IN Senate April 26, 2021 CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Assembly Bill No. 87Introduced by Assembly Member Ting Committee on BudgetDecember 07, 2020 An act relating to the Budget Act of 2021. to amend Section 3056 of the Penal Code, and to amend Sections 208, 208.5, 607, 726, 733.1, 736.5, 1731.5, 1731.6, 1752.1, 1752.15, 1767.35, 1991, and 2250 of, to amend and repeal Sections 704, 707.2, and 1731.7 of, to add Sections 731 and 779.5 to, and to add Article 23.5 (commencing with Section 875) to Chapter 2 of Part 1 of Division 2 of, the Welfare and Institutions Code, relating to juvenile justice, and making an appropriation therefor, to take effect immediately, bill related to the budget. LEGISLATIVE COUNSEL'S DIGESTAB 87, as amended, Committee on Budget. Budget Act of 2021. Juvenile Justice.Existing law establishes the Division of Juvenile Justice within the Department of Corrections and Rehabilitation to operate facilities to house specified juvenile offenders. Existing law, commencing July 1, 2021, prohibits further commitment of wards to the Division of Juvenile Justice unless the ward is otherwise eligible to be committed to the division and a motion was filed to transfer the ward from the juvenile court to a court of criminal jurisdiction. Existing law requires that all wards committed to the division prior to July 1, 2021, remain within the custody of the division until the ward is discharged, released, or transferred.This bill would require a court to consider, as an alternative to commitment to the Division of Juvenile Justice, placement in local programs established as a result of the realignment of wards from the Division of Juvenile Justice to county-based custody. This bill would require the Division of Juvenile Justice to close on June 30, 2023, and would require the Director of the Division of Juvenile Justice, by January 1, 2022, to develop a plan for the transfer of jurisdiction of youth remaining at the Division of Juvenile Justice who are unable to discharge or otherwise move pursuant to law prior to the divisions final closure on June 30, 2023. The bill would make various other technical and conforming changes to implement the realignment of wards from the Division of Juvenile Justice to county-based custody.This bill would, commencing July 1, 2021, allow counties to establish secure youth treatment facilities for wards who are 14 years of age or older who have been adjudicated and found to be a ward of the court based on an offense that would have resulted in a commitment to the Division of Juvenile Justice, as provided. The bill would require the court to set a baseline term of confinement for the ward that is based on the most serious recent offense for which the ward has been adjudicated, as specified. The bill would additionally require the court to set a maximum term of confinement for the ward in a secure youth treatment facility and require the court, within 30 days of making the order of commitment, to receive, review, and approve an individual rehabilitation plan for the ward from the probation department and any other entity that is designated by the court for development of the plan. The bill would require the court to hold a progress review hearing for the ward not less frequently than once every 6 months during the term of confinement, as specified. The bill would authorize the court, at the conclusion of a progress review hearing, or at a separately scheduled hearing, to order a ward to be transferred from a secure youth treatment facility to a less restrictive program. The bill would, by July 1, 2023, require the Judicial Council to develop and adopt a matrix of offense-based classifications to be applied by the juvenile courts in all counties, as specified. The bill would prohibit a court from committing a juvenile to any juvenile facility for a period that exceeds the middle term of imprisonment that could be imposed upon an adult convicted of the same offense or offenses.This bill would require the probation department to request the prosecuting attorney to petition the committing court for an order directing that the person remain subject to the control of the department at the time of discharge if the person confined is determined to be physically dangerous to the public because of the persons mental or physical condition, disorder, or other problem that causes the person to have serious difficulty controlling their dangerous behavior. The bill would establish the process for the petition, probable cause hearing, trial, continued detention, and appeal pursuant to this provision. The bill would require the Governor and the Legislature to work with stakeholders to develop language by July 1, 2021, that would replace these provisions with a commitment process that ensures the treatment, capacity, legal protections, and court procedures are appropriate, as specified. Existing law establishes a Juvenile Justice Realignment Block Grant program to provide county-based custody, care, and supervision of youth who are realigned from the Division of Juvenile Justice or who would have otherwise been eligible for commitment to the division. Existing law requires the Department of Finance to allocate funds under this program by September 1 each year, beginning September 1, 2021, and provide a schedule of allocations to the Controller. Existing law requires the Controller to allocate the funds in monthly installments pursuant to a schedule that is the same as the schedule for allocations from the Youthful Offender Block Grant Special Account.This bill would instead require the Department of Finance to allocate funds under this program by July 1 each year, beginning July 1, 2021, and would require the Controller to allocate the funds, consistent with the schedule provided by the Department of Finance, no later than August 1 of each year.Existing law establishes the Adult Reentry Grant that is awarded by the Board of State and Community Corrections to support people formerly incarcerated in the state prison.This bill would appropriate $50,000 from the General Fund in 202122 fiscal year to the Adult Reentry Grant to support rental assistance programs, as specified.This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.This bill would express the intent of the Legislature to enact statutory changes relating to the Budget Act of 2021.Digest Key Vote: MAJORITY Appropriation: NOYES Fiscal Committee: NOYES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 3056 of the Penal Code is amended to read:3056. (a) Prisoners on parole shall remain under the supervision of the department but shall not be returned to prison except as provided in subdivision (b) or as provided by subdivision (c) of Section 3000.09. A parolee awaiting a parole revocation hearing may be housed in a county jail while awaiting revocation proceedings. If a parolee is housed in a county jail, he or she they shall be housed in the county in which he or she was they were arrested or the county in which a petition to revoke parole has been filed or, if there is no county jail in that county, in the housing facility with which that county has contracted to house jail inmates. Additionally, except as provided by subdivision (c) of Section 3000.09, upon revocation of parole, a parolee may be housed in a county jail for a maximum of 180 days per revocation. When housed in county facilities, parolees shall be under the sole legal custody and jurisdiction of local county facilities. A parolee shall remain under the sole legal custody and jurisdiction of the local county or local correctional administrator, even if placed in an alternative custody program in lieu of incarceration, including, but not limited to, work furlough and electronic home detention. When a parolee is under the legal custody and jurisdiction of a county facility awaiting parole revocation proceedings or upon revocation, he or she the parolee shall not be under the parole supervision or jurisdiction of the department. Unless otherwise serving a period of flash incarceration, whenever a parolee who is subject to this section has been arrested, with or without a warrant or the filing of a petition for revocation with the court, the court may order the release of the parolee from custody under any terms and conditions the court deems appropriate. When released from the county facility or county alternative custody program following a period of custody for revocation of parole or because no violation of parole is found, the parolee shall be returned to the parole supervision of the department for the duration of parole.(b) Inmates paroled pursuant to Section 3000.1 may be returned to prison following the revocation of parole by the Board of Parole Hearings until July 1, 2013, and thereafter by a court pursuant to Section 3000.08.(c) A Until July 1, 2021, a parolee who is subject to subdivision (a), but who is under 18 years of age, may be housed in a facility of the Division of Juvenile Facilities, Justice, Department of Corrections and Rehabilitation.SEC. 2. Section 208 of the Welfare and Institutions Code is amended to read:208. (a) When any person under 18 years of age is detained in or sentenced to any institution in which adults are confined, an adult facility, including a jail or other facility established for the purpose of confinement of adults, it shall be unlawful to permit such that person to come or remain in contact with such adults. adults confined there.(b) No A person who is a ward or dependent child of the juvenile court who is detained in or committed to any state hospital or other state facility shall not be permitted to come or remain in contact with any adult person who has been committed to any state hospital or other state facility as a mentally disordered sex offender under the provisions of Article 1 (commencing with Section 6300) of Chapter 2 of Part 2 of Division 6, or with any adult person who has been charged in an accusatory pleading with the commission of any sex offense for which registration of the convicted offender is required under Section 290 of the Penal Code and who has been committed to any state hospital or other state facility pursuant to Section 1026 or 1370 of the Penal Code.(c) As used in this section, contact does not include participation in supervised group therapy or other supervised treatment activities, participation in work furlough programs, or participation in hospital recreational activities which are directly supervised by employees of the hospital, so long as living arrangements are strictly segregated and all precautions are taken to prevent unauthorized associations.(d) This section shall be operative January 1, 1998.SEC. 3. Section 208.5 of the Welfare and Institutions Code is amended to read:208.5. (a) Notwithstanding any other law, any person whose case originated in juvenile court shall remain, if the person is held in secure detention, in a county juvenile facility until the person attains 25 years of age, except as provided in subdivisions (b) and (c) of this section and paragraph (4) of subdivision (a) of Section 731. A person whose case originated in juvenile court but who was sentenced in criminal court shall not serve their sentence in a juvenile facility, but if not otherwise excluded, may remain in the juvenile facility until transferred to serve their sentence in an adult facility. This section is not intended to authorize confinement in a juvenile facility where authority would not otherwise exist.(b) The probation department may petition the court to house a person who is 19 years of age or older in an adult facility, including a jail or other facility established for the purpose of confinement of adults.(c) Upon receipt of a petition to house a person who is 19 years of age or older in an adult facility, the court shall hold a hearing. There shall be a rebuttable presumption that the person will be retained in a juvenile facility. At the hearing, the court shall determine whether the person will be moved to an adult facility, and make written findings of its decision based on the totality of the following criteria:(1) The impact of being held in an adult facility on the physical and mental health and well-being of the person.(2) The benefits of continued programming at the juvenile facility and whether required education and other services called for in any juvenile court disposition or otherwise required by law or court order can be provided in the adult facility.(3) The capacity of the adult facility to separate younger and older people as needed and to provide them with safe and age-appropriate housing and program opportunities.(4) The capacity of the juvenile facility to provide needed separation of older from younger people given the youth currently housed in the facility.(5) Evidence demonstrating that the juvenile facility is unable to currently manage the persons needs without posing a significant danger to staff or other youth in the facility.(d) If a person who is 18 19 to 24 years of age, inclusive, is removed from a juvenile facility pursuant to this section, upon the motion of any party and a showing of changed circumstances, the court shall consider the criteria in subdivision (c) and determine whether the person should be housed at a juvenile facility.(e) A person who is 19 years of age or older and who has been committed to a county juvenile facility or a facility of a contracted entity shall remain in the facility and shall not be subject to a petition for transfer to an adult facility. This section is not intended to authorize or extend confinement in a juvenile facility where authority would not otherwise exist.SEC. 4. Section 607 of the Welfare and Institutions Code, as added by Section 24 of Chapter 337 of the Statutes of 2020, is amended to read:607. (a) The court may retain jurisdiction over a person who is found to be a ward or dependent child of the juvenile court until the ward or dependent child attains 21 years of age, except as provided in subdivisions (b), (c), and (d). (d), and (e).(b) The court may retain jurisdiction over a person who is found to be a person described in Section 602 by reason of the commission of an offense listed in subdivision (b) of Section 707, until that person attains 23 years of age, subject to the provisions of subdivision (c).(c) The court may retain jurisdiction over a person who is found to be a person described in Section 602 by reason of the commission of an offense listed in subdivision (b) of Section 707 until that person attains 25 years of age if the person, at the time of adjudication of a crime or crimes, would, in criminal court, have faced an aggregate sentence of seven years or more.(d) The court shall not discharge a person from its jurisdiction who has been committed to the Department of Corrections and Rehabilitation, Division of Juvenile Justice while the person remains under the jurisdiction of the Department of Corrections and Rehabilitation, Division of Juvenile Justice, including periods of extended control ordered pursuant to Section 1800.(e) The court may retain jurisdiction over a person described in Section 602 by reason of the commission of an offense listed in subdivision (b) of Section 707, who has been confined in a state hospital or other appropriate public or private mental health facility pursuant to Section 702.3 until that person attains 25 years of age, unless the court that committed the person finds, after notice and hearing, that the persons sanity has been restored.(f) The court may retain jurisdiction over a person while that person is the subject of a warrant for arrest issued pursuant to Section 663.(g) Notwithstanding subdivisions (b) and (d), (b), (c), and (e), a person who is committed by the juvenile court to the Department of Corrections and Rehabilitation, Division of Juvenile Justice on or after July 1, 2012, but before July 1, 2018, and who is found to be a person described in Section 602 by reason of the commission of an offense listed in subdivision (b) of Section 707 shall be discharged upon the expiration of a two-year period of control, or when the person attains 23 years of age, whichever occurs later, unless an order for further detention has been made by the committing court pursuant to Article 6 (commencing with Section 1800) of Chapter 1 of Division 2.5. This subdivision does not apply to a person who is committed to the Department of Corrections and Rehabilitation, Division of Juvenile Justice, or to a person who is confined in a state hospital or other appropriate public or private mental health facility, by a court prior to July 1, 2012, pursuant to subdivisions (b) and (d). (b), (c), and (e).(h) (1) Notwithstanding subdivision (f), (g), a person who is committed by the juvenile court to the Department of Corrections and Rehabilitation, Division of Juvenile Facilities, Justice, on or after July 1, 2018, and who is found to be a person described in Section 602 by reason of the commission of an offense listed in subdivision (c) of Section 290.008 of the Penal Code or subdivision (b) of Section 707 of this code, shall be discharged upon the expiration of a two-year period of control, or when the person attains 23 years of age, whichever occurs later, unless an order for further detention has been made by the committing court pursuant to Article 6 (commencing with Section 1800) of Chapter 1 of Division 2.5.(2) A person who, at the time of adjudication of a crime or crimes, would, in criminal court, have faced an aggregate sentence of seven years or more, shall be discharged upon the expiration of a two-year period of control, or when the person attains 25 years of age, whichever occurs later, unless an order for further detention has been made by the committing court pursuant to Article 6 (commencing with Section 1800) of Chapter 1 of Division 2.5.(3) This subdivision does not apply to a person who is committed to the Department of Corrections and Rehabilitation, Division of Juvenile Facilities, Justice, or to a person who is confined in a state hospital or other appropriate public or private mental health facility, by a court prior to July 1, 2018, as described in subdivision (f). (g).(i) The amendments to this section made by Chapter 342 of the Statutes of 2012 apply retroactively.(j) This section does not change the period of juvenile court jurisdiction for a person committed to the Division of Juvenile Facilities Justice prior to July 1, 2018.(k) This section shall become operative July 1, 2021.SEC. 5. Section 704 of the Welfare and Institutions Code is amended to read:704. (a) If the court has determined that a minor is a person described by Section 602, or if the court has determined that a minor is a person described by Section 601 and a supplemental petition for commitment of such the minor to the Youth Authority Division of Juvenile Justice has been filed pursuant to Section 777, and such the minor is otherwise eligible for commitment to the Youth Authority, Division of Juvenile Justice, the court, if it concludes that a disposition of the case in the best interest of the minor requires such observation and diagnosis as can be made at a diagnostic and treatment center of the Youth Authority, Division of Juvenile Justice, may continue the hearing and order that such the minor be placed temporarily in such a center for a period not to exceed 90 days, with the further provision in such order that the Director of the Youth Authority Division of Juvenile Justice report to the court its diagnosis and recommendations concerning the minor within the 90-day period.(b) The Director of Youth Authority the Division of Juvenile Justice shall, within the 90 days, cause the minor to be observed and examined and shall forward to the court his the diagnosis and recommendation concerning such the minors future care, supervision, and treatment.(c) The Youth Authority Division of Juvenile Justice shall accept such that person if there is in effect a contract made pursuant to Section 1752.1 and if it believes that the person can be materially benefited by such diagnostic and treatment services, and if the Director of the Youth Authority Division of Juvenile Justice certifies that staff and institutions are available. No such person shall A person shall not be transported to any facility under the jurisdiction of the Youth Authority Division of Juvenile Justice until the director has notified the referring court of the place to which said person is to be transported and the time at which he the person can be received.(d) The probation officer of the county in which an order is made placing a minor in a diagnostic and treatment center pursuant to this section, or any other peace officer designated by the court, shall execute the order placing such the minor in the center or returning him the minor therefrom to the court. The expense of such the probation officer or other peace officer incurred in executing such the order is a charge upon the county in which the court is situated.(e) This section shall become inoperative on July 1, 2021, and, as of January 1, 2022, is repealed.SEC. 6. Section 707.2 of the Welfare and Institutions Code is amended to read:707.2. (a) Prior to sentence and after considering a recommendation on the issue which shall be made by the probation department, the court of criminal jurisdiction may remand the minor to the custody of the Department of the Youth Authority Division of Juvenile Justice for a period not to exceed 90 days for the purpose of evaluation and report concerning his or her the minors amenability to training and treatment offered by the Department of the Youth Authority. Division of Juvenile Justice. If the court decides not to remand the minor to the custody of the Department of the Youth Authority, Division of Juvenile Justice, the court shall make a finding on the record that the amenability evaluation is not necessary. However, a court of criminal jurisdiction shall not sentence any minor who was under the age of 16 years 16 years of age when he or she the minor committed any criminal offense to the state prison unless he or she the minor has first been remanded to the custody of the Department of the Youth Authority Division of Juvenile Justice for evaluation and report pursuant to this section.The need to protect society, the nature and seriousness of the offense, the interests of justice, and the needs of the minor shall be the primary considerations in the courts determination of the appropriate disposition for the minor.(b) This section shall not apply where commitment to the Department of the Youth Authority Division of Juvenile Justice is prohibited pursuant to Section 1732.6.(c) This section shall become inoperative on July 1, 2021, and, as of January 1, 2022, is repealed.SEC. 7. Section 726 of the Welfare and Institutions Code is amended to read:726. (a) In all cases in which a minor is adjudged a ward or dependent child of the court, the court may limit the control to be exercised over the ward or dependent child by any parent or guardian and shall, in its order, clearly and specifically set forth all those limitations, but no ward or dependent child shall be taken from the physical custody of a parent or guardian, unless upon the hearing the court finds one of the following facts:(1) That the parent or guardian is incapable of providing or has failed or neglected to provide proper maintenance, training, and education for the minor.(2) That the minor has been tried on probation while in custody and has failed to reform.(3) That the welfare of the minor requires that custody be taken from the minors parent or guardian.(b) Whenever the court specifically limits the right of the parent or guardian to make educational or developmental services decisions for the minor, the court shall at the same time appoint a responsible adult to make educational or developmental services decisions for the child until one of the following occurs:(1) The minor reaches 18 years of age, unless the child chooses not to make educational or developmental services decisions for himself or herself, themselves, or is deemed by the court to be incompetent.(2) Another responsible adult is appointed to make educational or developmental services decisions for the minor pursuant to this section.(3) The right of the parent or guardian to make educational or developmental services decisions for the minor is fully restored.(4) A successor guardian or conservator is appointed.(5) The child is placed into a planned permanent living arrangement pursuant to paragraph (5) or (6) of subdivision (b) of Section 727.3, at which time, for educational decisionmaking, the foster parent, relative caretaker, or nonrelative extended family member, as defined in Section 362.7, has the right to represent the child in educational matters pursuant to Section 56055 of the Education Code, and for decisions relating to developmental services, unless the court specifies otherwise, the foster parent, relative caregiver, or nonrelative extended family member of the planned permanent living arrangement has the right to represent the child in matters related to developmental services.(c) An individual who would have a conflict of interest in representing the child, as specified under federal regulations, may not be appointed to make educational decisions. The limitations applicable to conflicts of interest for educational rights holders shall also apply to authorized representatives for developmental services decisions pursuant to subdivision (b) of Section 4701.6. For purposes of this section, an individual who would have a conflict of interest means a person having any interests that might restrict or bias his or her their ability to make educational or developmental services decisions, including, but not limited to, those conflicts of interest prohibited by Section 1126 of the Government Code, and the receipt of compensation or attorneys fees for the provision of services pursuant to this section. A foster parent may not be deemed to have a conflict of interest solely because he or she the foster parent receives compensation for the provision of services pursuant to this section.(1) If the court limits the parents educational rights pursuant to subdivision (a), the court shall determine whether there is a responsible adult who is a relative, nonrelative extended family member, or other adult known to the child and who is available and willing to serve as the childs educational representative before appointing an educational representative or surrogate who is not known to the child.If the court cannot identify a responsible adult who is known to the child and available to make educational decisions for the child and paragraphs (1) to (5), inclusive, of subdivision (b) do not apply, and the child has either been referred to the local educational agency for special education and related services or has a valid individualized education program, the court shall refer the child to the local educational agency for appointment of a surrogate parent pursuant to Section 7579.5 of the Government Code.(2) All educational and school placement decisions shall seek to ensure that the child is in the least restrictive educational programs and has access to the academic resources, services, and extracurricular and enrichment activities that are available to all pupils. In all instances, educational and school placement decisions shall be based on the best interests of the child. If an educational representative or surrogate is appointed for the child, the representative or surrogate shall meet with the child, shall investigate the childs educational needs and whether those needs are being met, and shall, before each review hearing held under Article 10 (commencing with Section 360), provide information and recommendations concerning the childs educational needs to the childs social worker, make written recommendations to the court, or attend the hearing and participate in those portions of the hearing that concern the childs education.(3) Nothing in this section in any way removes the obligation to appoint surrogate parents for students with disabilities who are without parental representation in special education procedures as required by state and federal law, including Section 1415(b)(2) of Title 20 of the United States Code, Section 56050 of the Education Code, Section 7579.5 of the Government Code, and Rule 5.650 of the California Rules of Court.If the court appoints a developmental services decisionmaker pursuant to this section, he or she they shall have the authority to access the childs information and records pursuant to subdivision (u) of Section 4514 and subdivision (y) of Section 5328, and to act on the childs behalf for the purposes of the individual program plan process pursuant to Sections 4646, 4646.5, and 4648 and the fair hearing process pursuant to Chapter 7 (commencing with Section 4700) of Division 4.5, and as set forth in the court order.(d) (1) If the minor is removed from the physical custody of his or her the minors parent or guardian as the result of an order of wardship made pursuant to Section 602, the order shall specify that the minor may not be held in physical confinement for a period in excess of the maximum middle term of imprisonment which could be imposed upon an adult convicted of the offense or offenses which brought or continued the minor under the jurisdiction of the juvenile court.(2) As used in this section and in Section 731, maximum term of imprisonment means the longest middle of the three time periods set forth in paragraph (3) of subdivision (a) of Section 1170 of the Penal Code, but without the need to follow the provisions of subdivision (b) of Section 1170 of the Penal Code or to consider time for good behavior or participation pursuant to Sections 2930, 2931, and 2932 of the Penal Code, plus enhancements which must be proven if pled.(3) If the court elects to aggregate the period of physical confinement on multiple counts or multiple petitions, including previously sustained petitions adjudging the minor a ward within Section 602, the maximum term of imprisonment shall be the aggregate term of imprisonment specified in subdivision (a) of Section 1170.1 of the Penal Code, which includes any additional term imposed pursuant to Section 667, 667.5, 667.6, or 12022.1 of the Penal Code, and Section 11370.2 of the Health and Safety Code.(4) If the charged offense is a misdemeanor or a felony not included within the scope of Section 1170 of the Penal Code, the maximum term of imprisonment is the longest middle term of imprisonment prescribed by law.(5) Physical confinement means placement in a juvenile hall, ranch, camp, forestry camp or secure juvenile home pursuant to Section 730, or in any institution operated by the Department of Corrections and Rehabilitation, Division of Juvenile Justice.(6) This section does not limit the power of the court to retain jurisdiction over a minor and to make appropriate orders pursuant to Section 727 for the period permitted by Section 607.SEC. 8. Section 731 is added to the Welfare and Institutions Code, to read:731. (a) If a minor is adjudged a ward of the court on the grounds that the minor is a person described by Section 602, the court may commit the ward to the Department of Corrections and Rehabilitation, Division of Juvenile Justice if the ward has committed an offense described in subdivision (b) of Section 707 or subdivision (c) of Section 290.008 of the Penal Code, and has been the subject of a motion filed to transfer the ward to the jurisdiction of the criminal court as provided in subdivision (c) of Section 736.5 and is not otherwise ineligible for commitment to the division under Section 733.(b) A ward committed to the Division of Juvenile Justice shall not be confined in excess of the term of confinement set by the committing court. The court shall set a maximum term based upon the facts and circumstances of the matter or matters that brought or continued the ward under the jurisdiction of the court and as deemed appropriate to achieve rehabilitation. The court shall not commit a ward to the Division of Juvenile Justice for a period that exceeds the middle term of imprisonment that could be imposed upon an adult convicted of the same offense. This subdivision does not limit the power of the Board of Juvenile Hearings to discharge a ward committed to the Division of Juvenile Justice pursuant to Sections 1719 and 1769. Upon discharge, the committing court may retain jurisdiction of the ward pursuant to Section 607.1 and establish the conditions of supervision pursuant to subdivision (b) of Section 1766.(c) This section shall become operative on July 1, 2021, and shall remain in effect until the final closure of the Division of Juvenile Justice.SEC. 9. Section 733.1 of the Welfare and Institutions Code is amended to read:733.1. (a) Notwithstanding any other law, except as otherwise provided in this section, a ward of the juvenile court shall not be committed to the Department of Corrections and Rehabilitation, Division of Juvenile Justice on or after July 1, 2021.(b) A court may commit a ward to the Department of Corrections and Rehabilitation, Division of Juvenile Justice as authorized in subdivision (c) of Section 736.5.(c) Effective July 1, 2021, a person adjudged a ward of the court pursuant to Section 602, shall not be committed to the Department of Corrections and Rehabilitation, Division of Juvenile Justice, as long as allocations required by Section 1991 are authorized in statute and disbursed by September 1, 2021, and September 1 annually thereafter. To the extent that the allocations required by Section 1991 are not authorized in statute and disbursed annually thereafter, it is the intent of this section that wards adjudged wards of the court pursuant to Section 602 for an offense described in subdivision (b) of Section 707 of this code or subdivision (c) of Section 290.008 of the Penal Code may be committed to a state-funded facility pursuant to Sections 731, 733, and 734. the Division of Juvenile Justice or, upon the final closure of the Division of Juvenile Justice, another state-funded facility, if the ward could have been committed to the Division of Juvenile Justice pursuant to Section 731, as that section read on January 1, 2021, and Sections 733, 734, and 736.5. For the purpose of determining the states compliance with this subdivision, the presumption shall be that the state is meeting its commitment in Section 1991 if that section is not materially changed from the law in effect on the operative date of this section.SEC. 10. Section 736.5 of the Welfare and Institutions Code is amended to read:736.5. (a) It is the intent of the Legislature to close the Division of Juvenile Justice within the Department of Corrections and Rehabilitation, through shifting responsibility for all youth adjudged a ward of the court, commencing July 1, 2021, to county governments and providing annual funding for county governments to fulfill this new responsibility.(b) Beginning July 1, 2021, a ward shall not be committed to the Department of Corrections and Rehabilitation, Division of Juvenile Justice, except as described in subdivision (c).(c) Pending the final closure of the Department of Corrections and Rehabilitation, Division of Juvenile Justice, a court may commit a ward who is otherwise eligible to be committed under existing law and in whose case a motion to transfer the minor from juvenile court to a court of criminal jurisdiction was filed. The court shall consider, as an alternative to commitment to the Division of Juvenile Justice, placement in local programs, including those established as a result of the implementation of Chapter 337 of the Statutes of 2020.(d) All wards committed to the Department of Corrections and Rehabilitation, Division of Juvenile Justice prior to July 1, 2021 or pursuant to (c), shall remain within its custody until the ward is discharged, released or otherwise moved pursuant to law. law, or until final closure of the Division of Juvenile Justice.(e) The Division of Juvenile Justice within the Department of Corrections and Rehabilitation shall close on June 30, 2023.(f) The Director of the Division of Juvenile Justice shall develop a plan, by January 1, 2022, for the transfer of jurisdiction of youth remaining at the Division of Juvenile Justice who are unable to discharge or otherwise move pursuant to law prior to final closure on June 30, 2023.(e)It is the intent of the Legislature to establish a separate dispositional track for higher-need youth by March 1, 2021. The framework for consideration shall be the processes laid out in Section 30 of Senate Bill 823 as amended on August 24, 2020.SEC. 11. Section 779.5 is added to the Welfare and Institutions Code, to read:779.5. The court committing a ward to a secure youth treatment facility as provided in Section 875 may thereafter modify or set aside the order of commitment upon the written application of the ward or the probation department and upon a showing of good cause that the county or the commitment facility has failed, or is unable to, provide the ward with treatment, programming, and education that are consistent with the individual rehabilitation plan described in subdivision (d) of Section 875, that the conditions under which the ward is confined are harmful to the ward, or that the juvenile justice goals of rehabilitation and community safety are no longer served by continued confinement of the ward in a secure youth treatment facility. The court shall notice a hearing in which it shall hear any evidence from the ward, the probation department, and any behavioral health or other specialists having information relevant to consideration of the request to modify or set aside the order of commitment. The court shall, at the conclusion of the hearing, make its findings on the record, including findings as to the custodial and supervision status of the ward, based on the evidence presented.SEC. 12. Article 23.5 (commencing with Section 875) is added to Chapter 2 of Part 1 of Division 2 of the Welfare and Institutions Code, to read: Article 23.5. Secure Youth Treatment Facilities875. (a) In addition to the types of treatment specified in Sections 727 and 730, commencing July 1, 2021, the court may order that a ward who is 14 years of age or older, be committed to a secure youth treatment facility for a period of confinement described in subdivision (b) if the ward meets the following criteria:(1) The juvenile is adjudicated and found to be a ward of the court based on an offense listed in subdivision (b) of Section 707.(2) The adjudication described in paragraph (1) is the most recent offense for which the juvenile has been adjudicated.(3) The court has made a finding on the record that a less restrictive, alternative disposition for the ward is unsuitable. In determining this, the court shall consider all relevant and material evidence, including the recommendations of counsel, the probation department, and any other agency or individual designated by the court to advise on the appropriate disposition of the case. The court shall additionally make its determination based on all of the following criteria:(A) The severity of the offense or offenses for which the ward has been most recently adjudicated, including the wards role in the offense, the wards behavior, and harm done to victims.(B) The wards previous delinquent history, including the adequacy and success of previous attempts by the juvenile court to rehabilitate the ward.(C) Whether the programming, treatment, and education offered and provided in a secure youth treatment facility is appropriate to meet the treatment and security needs of the ward.(D) Whether the goals of rehabilitation and community safety can be met by assigning the ward to an alternative, less restrictive disposition that is available to the court.(E) The wards age, developmental maturity, mental and emotional health, sexual orientation, gender identity and expression, and any disabilities or special needs affecting the safety or suitability of committing the ward to a term of confinement in a secure youth treatment facility.(b) In making its order of commitment for a ward, the court shall set a baseline term of confinement for the ward that is based on the most serious recent offense for which the ward has been adjudicated. The baseline term of confinement shall represent the time in custody necessary to meet the developmental and treatment needs of the ward and to prepare the ward for discharge to a period of probation supervision in the community. The baseline term of confinement for the ward shall be determined according to offense-based classifications that are approved by the Judicial Council as described in subdivision (h). Pending the development and adoption of offense-based classifications by the Judicial Council, the court shall set a baseline term of confinement for the ward utilizing the discharge consideration date guidelines applied by the Department of Corrections and Rehabilitation, Division of Juvenile Justice prior to its closure and as set forth in Sections 30807 to 30813, inclusive, of Title 9 of the California Code of Regulations. These guidelines shall be used only to determine a baseline confinement time for the ward and shall not be used or relied on to modify the wards confinement time in any manner other than as provided in this section. The court may, pending the adoption of Judicial Council guidelines, modify the initial baseline term with a deviation of plus or minus six months. The baseline term shall also be subject to modification in progress review hearings as described in subdivision (e).(c) In making its order of commitment, the court shall additionally set a maximum term of confinement for the ward in a secure youth treatment facility. The maximum term of confinement shall represent the longest term of confinement in a facility that the ward may serve subject to the following:(1) A ward committed to a secure youth treatment facility under this section shall not be held in secure confinement beyond 23 years of age, or two years from the date of the commitment, whichever occurs later. However, if the ward has been committed to a facility based on adjudication for an offense or offenses for which the ward, if convicted in adult criminal court, would face an aggregate sentence of seven or more years, the maximum period of confinement shall not exceed the ward attaining 25 years of age or two years from the date of the commitment, whichever occurs later.(2) The maximum period of confinement shall not exceed the middle term of imprisonment that can be imposed upon an adult convicted of the same offense or offenses.(d) (1) Within 30 days of making an order of commitment to a secure youth treatment facility, the court shall receive, review, and approve an individual rehabilitation plan that meets the requirements of paragraph (2) for the ward that has been submitted to the court by the probation department and any other agencies or individuals the court deems necessary for the development of the plan. The plan may be developed in consultation with a multidisciplinary team of youth service, mental and behavioral health, education, and other treatment providers who are convened to advise the court for this purpose. The prosecutor and the counsel for the ward may provide input in the development of the rehabilitation plan prior to the courts approval of the plan. The plan may be modified by the court based on all of the information provided.(2) An individual rehabilitation plan shall do all of the following:(A) Identify the wards needs in relation to treatment, education, and development, including any special needs the ward may have in relation to health, mental or emotional health, disabilities, or gender-related or other special needs.(B) Describe the programming, treatment, and education to be provided to the ward in relation to the identified needs during the commitment period.(C) Reflect, and be consistent with, the principles of trauma-informed, evidence-based, and culturally responsive care.(D) The ward and their family shall be given the opportunity to provide input regarding the needs of the ward during the identification process stated in subparagraph (A), and the opinions of the ward and the wards family shall be included in the rehabilitation plan report to the court.(e) (1) The court shall, during the term of commitment, schedule and hold a progress review hearing for the ward not less frequently than once every six months. In the review hearing, the court shall evaluate the wards progress in relation to the rehabilitation plan and shall determine whether the baseline term of confinement is to be modified. The court shall consider the recommendations of counsel, the probation department and any behavioral, educational, or other specialists having information relevant to the wards progress. At the conclusion of the review hearing, the court may order that the ward remain in custody for the remainder of the baseline term or may order that the wards baseline term be modified downward by a reduction of confinement time not to exceed six months. The court may additionally order that the ward be assigned to a less restrictive program, as provided in subdivision (f).(2) The wards confinement time, including time spent in a less restrictive program described in subdivision (f), shall not be extended beyond the baseline confinement term, or beyond a modified baseline term, for disciplinary infractions or other in-custody behaviors. Any infractions or behaviors shall be addressed by alternative means, which may include a system of graduated sanctions for disciplinary infractions adopted by the operator of a secure youth treatment facility and subject to any relevant state standards or regulations that apply to juvenile facilities generally.(3) The court shall, at the conclusion of the baseline confinement term, including any modified baseline term, hold a probation discharge hearing for the ward. For a ward who has been placed in a less restrictive program described in subdivision (f), the probation discharge hearing shall occur at the end of the period, or modified period, of placement that has been ordered by the court. At the discharge hearing, the court shall review the wards progress toward meeting the goals of the individual rehabilitation plan and the recommendations of counsel, the probation department, and any other agencies or individuals having information the court deems necessary. At the conclusion of the hearing, the court shall order that the ward be discharged to a period of probation supervision in the community under conditions approved by the court, unless the court finds that the ward constitutes a substantial risk of imminent harm to others in the community if released from custody. If the court so finds, the ward may be retained in custody in a secure youth treatment facility for up to one additional year of confinement, subject to the review hearing and probation discharge hearing provisions of this subdivision and subject to the maximum confinement provisions of subdivision (c).(4) If the ward is discharged to probation supervision, the court shall determine the reasonable conditions of probation that are suitable to meet the developmental needs and circumstances of the ward and to facilitate the wards successful reentry into the community. The court shall periodically review the wards progress under probation supervision and shall make any additional orders deemed necessary to modify the program of supervision in order to facilitate the provision of services or to otherwise support the wards successful reentry into the community. If the court finds that the ward has failed materially to comply with the reasonable orders of probation imposed by the court, the court may order that the ward be returned to a juvenile facility or to a placement described in subdivision (f) for a period not to exceed either the remainder of the baseline term, including any court-ordered modifications, or six months, whichever is longer, and in any case not to exceed the maximum confinement limits of subdivision (c).(f) (1) Upon a motion from the probation department or the ward, the court may order that the ward be transferred from a secure youth treatment facility to less restrictive program, such as a halfway house, a camp or ranch, or a community residential or nonresidential service program. The purpose of a less restrictive program is to facilitate the safe and successful reintegration of the ward into the community. The court shall consider the transfer request at the next scheduled treatment review hearing or at a separately scheduled hearing. The court shall consider the recommendations of the probation department on the proposed change in placement. Approval of the request for a less restrictive program shall be made only upon the courts determination that the ward has made substantial progress toward the goals of the individual rehabilitation plan described in subdivision (d) and that placement is consistent with the goals of youth rehabilitation and community safety. In making its determination, the court shall consider both of the following factors:(A) The wards overall progress in relation to the rehabilitation plan during the period of confinement in a secure youth treatment facility.(B) The programming and community transition services to be provided, or coordinated by the less restrictive program, including, but not limited to, any educational, vocational, counseling, housing, or other services made available through the program.(2) In any order transferring the ward from a secure youth treatment facility to a less restrictive program, the court may require the ward to observe any conditions of performance or compliance with the program that are reasonable and appropriate in the individual case and that are within the capacity of the ward to perform. The court shall set the length of time the ward is to remain in a less restrictive program, not to exceed the remainder of the baseline or modified baseline term, prior to a probation discharge hearing described in subdivision (e). If, after placement in a less restrictive program, the court determines that the ward has materially failed to comply with the court-ordered conditions of placement in the program, the court may modify the terms and conditions of placement in the program or may order the ward to be returned to a secure youth treatment facility for the remainder of the baseline term, or modified baseline term, and subject to further periodic review hearings, as provided in subdivision (e) and to the maximum confinement provisions of subdivision (c).(g) A secure youth treatment facility, as described in this section, shall meet the following criteria:(1) The facility shall be a secure facility that is operated, utilized, or accessed by the county of commitment to provide appropriate programming, treatment, and education for wards having been adjudicated for the offenses specified in subdivision (a).(2) The facility may be a stand-alone facility, such as a probation camp or other facility operated under contract with the county, or with another county, or may be a unit or portion of an existing county juvenile facility, including a juvenile hall or probation camp, that is configured and programmed to serve the population described in subdivision (a) and is in compliance with the standards described in paragraph (3).(3) The Board of State and Community Corrections shall by July 1, 2023, review existing juvenile facility standards and modify or add standards for the establishment, design, security, programming and education, and staffing of any facility that is utilized or accessed by the court as a secure youth treatment facility under the provisions of this section. The standards shall be developed by the board with the coordination and concurrence of the Office of Youth and Community Restoration established by Section 2200. The standards shall specify how the facility may be used to serve or to separate juveniles, other than juveniles described in subdivision (a) serving baseline confinement terms, who may also be detained in or committed to the facility or to some portion of the facility. Pending the final adoption of these modified standards, a secure youth treatment facility shall comply with applicable minimum standards for juvenile facilities in Title 15 and Title 24 of the California Code of Regulations.(4) A county proposing to establish a secure youth treatment facility for wards described in subdivision (a) shall notify the Board of State and Community Corrections of the operation of the facility and shall submit a description of the facility to the board in a format designated by the board. Commencing July 1, 2022, the Board of State and Community Corrections shall conduct a biennial inspection of each secure youth treatment facility that was used for the confinement of juveniles placed pursuant to subdivision (a) during the preceding calendar year. To the extent new standards are not yet in place, the board shall utilize the standards in existing regulations.(5) In lieu of establishing its own secure youth treatment facility, a county may contract with another county having a secure youth treatment facility to accept commitments of wards described in subdivision (a).(6) A county may establish a secure youth treatment facility to serve as a regional center for commitment of juveniles by one or more other counties on a contract payment basis.(h) (1) By July 1, 2023, the Judicial Council shall develop and adopt a matrix of offense-based classifications to be applied by the juvenile courts in all counties in setting the baseline confinement terms described in subdivision (b). Each classification level or category shall specify a set of offenses within the level or category that is linked to a standard baseline term of years to be assigned to youth, based on their most serious recent adjudicated offense, who are committed to a secure youth treatment facility as provided in this section. The classification matrix may provide for upward or downward deviations from the baseline term and may also provide for a system of positive incentives or credits for time served. In developing the matrix, the Judicial Council shall be advised by a working group of stakeholders, which shall include representatives from prosecution, defense, probation, behavioral health, youth service providers, youth formerly incarcerated in the Division of Juvenile Justice, and youth advocacy and other stakeholders and organizations having relevant expertise or information on dispositions and sentencing of youth in the juvenile justice system. In the development process, the Judicial Council shall also examine and take into account youth sentencing and length-of-stay guidelines or practices adopted by other states or recommended by organizations, academic institutions, or individuals having expertise or having conducted relevant research on dispositions and sentencing of youth in the juvenile justice system.(2) Upon final adoption by the Judicial Council, the matrix of offense-based classifications shall be applied in a standardized manner by juvenile courts in each county in cases where the court is required to set a baseline confinement term under subdivision (b) for wards who are committed to a secure youth treatment facility. The discharge consideration date guidelines of the Division of Juvenile Justice that were applied on an interim basis, as provided in subdivision (b), shall not thereafter be utilized to determine baseline confinement terms for wards who are committed to a secure youth treatment facility under the provisions of this section.(i) A court shall not commit a juvenile to any juvenile facility, including a secure youth treatment facility as defined in this section, for a period that exceeds the middle term of imprisonment that could be imposed upon an adult convicted of the same offense or offenses.875.5. (a) It is the intent of the Legislature to apply Article 6 (commencing with Section 1800) of Chapter 1 of Division 2.5, governing extended detention of persons physically dangerous to the public who are served by the Division of Juvenile Justice, to persons physically dangerous to the public who are committed to a secure treatment facility pursuant to Section 875, pending development of a specific commitment process for realigned persons pursuant to subdivision (b).(b) The Governor and the Legislature shall work with stakeholders, including, but not limited to, the Division of Juvenile Justice, the State Department of State Hospitals, the Chief Probation Officers of California, the California State Association of Counties, advocacy organizations representing youth, and the Judicial Council to develop language by July 1, 2021, to replace the procedures specified in Section 876 with a commitment process that ensures the treatment capacity, legal protections, and court procedures are appropriate to successfully serve persons realigned from the Division of Juvenile Justice to the counties by Senate Bill 823 (Chapter 337, Statutes of 2020).(c) It is the intent of the Legislature to enact legislation that would, effective July 1, 2022, extend detention of persons physically dangerous to the public who are in a secure youth treatment facility pursuant to the commitment process developed in subdivision (b).876. (a) If a probation department determines that the discharge of a person confined in a secure youth treatment facility from the control of the court at the time required by Section 875 would be physically dangerous to the public because of the persons mental or physical condition, disorder, or other problem that causes the person to have serious difficulty controlling their dangerous behavior, the department shall request the prosecuting attorney to petition the committing court for an order directing that the person remain subject to the control of the department beyond that time. The petition shall be filed at least 90 days before the time of discharge otherwise required. The petition shall be accompanied by a written statement of the facts upon which the department bases its opinion that discharge at the time stated would be physically dangerous to the public, but the petition may not be dismissed and an order may not be denied merely because of technical defects in the application.(b) The prosecuting attorney shall promptly notify the probation department of a decision not to file a petition.(c) If a petition is filed with the court and, upon review, the court determines that the petition, on its face, supports a finding of probable cause, the court shall order that a hearing be held.The court shall provide notification of the hearing to the person whose liberty is involved and, if the person is a minor, the minors parent or guardian, if the minors parent or guardian can be reached, and, if not, the court shall appoint a person to act in the place of the parent or guardian and shall afford the person an opportunity to appear at the hearing with the aid of counsel and the right to cross-examine experts or other witnesses upon whose information, opinion, or testimony the petition is based. The court shall inform the person named in the petition of their right of process to compel attendance of relevant witnesses and the production of relevant evidence. When the person is unable to provide their own counsel, the court shall appoint counsel to represent them. The probable cause hearing shall be held within 10 calendar days after the date the order is issued pursuant to this subdivision unless the person named in the petition waives this time.(d) At the probable cause hearing, the court shall receive evidence and determine whether there is probable cause to believe that discharge of the person would be physically dangerous to the public because of the persons mental or physical condition, disorder, or other problem that causes the person to have serious difficulty controlling dangerous behavior. If the court determines there is not probable cause, the court shall dismiss the petition and the person shall be discharged from the control of a secure youth treatment facility at the time required by Section 875, as applicable. If the court determines there is probable cause, the court shall order that a trial be conducted to determine whether the person is physically dangerous to the public because of their mental or physical condition, disorder, or other problem.(e) If a trial is ordered, the trial shall be by jury unless the right to a jury trial is personally waived by the person, after the person has been fully advised of the constitutional rights being waived, and by the prosecuting attorney, in which case trial shall be by the court. If the jury is not waived, the court shall cause a jury to be summoned and to be in attendance at a date stated, not less than 4 days nor more than 30 days from the date of the order for trial, unless the person named in the petition waives time. The court shall submit to the jury, or, at a court trial, the court shall answer, the following question: Is the person physically dangerous to the public because of a mental or physical condition, disorder, or other problem that causes the person to have serious difficulty controlling their dangerous behavior? The courts previous order entered pursuant to this section shall not be read to the jury, nor alluded to in the trial. The person shall be entitled to all rights guaranteed under the federal and state constitutions in criminal proceedings. A unanimous jury verdict shall be required in any jury trial. As to either a court or a jury trial, the standard of proof shall be that of proof beyond a reasonable doubt.(f) If an order for continued detention is made pursuant to this section, the control of the department over the person shall continue, subject to the provisions of this article, but, unless the person is previously discharged as provided in Section 875, the department shall, within two years after the date of that order in the case of persons committed by the juvenile court, or within two years after the date of that order in the case of persons committed after conviction in criminal proceedings, file a new application for continued detention in accordance with the provisions of this section if continued detention is deemed necessary. These applications may be repeated at intervals as often as in the opinion of the department may be necessary for the protection of the public, except that the court shall have the power, in order to protect other persons in the custody of probation to refer the person for evaluation for civil commitment or to transfer the custody of any person over 25 years of age to the county adult probation authorities for placement in an appropriate institution. Each person shall be discharged from the control of the probation department at the termination of the period stated in this section unless the probation department has filed a new application and the court has made a new order for continued detention as provided above in this section.(g) An order of the committing court made pursuant to this section is appealable by the person whose liberty is involved in the same manner as a judgment in a criminal case. The appellate court may affirm the order of the lower court, or modify it, or reverse it and order the appellant to be discharged. Pending appeal, the appellant shall remain under the control of the probation department.SEC. 13. Section 1731.5 of the Welfare and Institutions Code is amended to read:1731.5. (a) After certification to the Governor as provided in this article, a court may may, until July 1, 2021, commit to the Division of Juvenile Justice any person who meets all of the following:(1) Is convicted of an offense described in subdivision (b) of Section 707 or subdivision (c) of Section 290.008 of the Penal Code.(2) Is found to be less than 21 years of age at the time of apprehension.(3) Is not sentenced to death, imprisonment for life, with or without the possibility of parole, whether or not pursuant to Section 190 of the Penal Code, imprisonment for 90 days or less, or the payment of a fine, or after having been directed to pay a fine, defaults in the payment thereof, and is subject to imprisonment for more than 90 days under the judgment.(4) Is not granted probation, or was granted probation and that probation is revoked and terminated.(b) The Division of Juvenile Justice shall accept a person committed to it prior to July 1,2021, pursuant to this article if it believes that the person can be materially benefited by its reformatory and educational discipline, and if it has adequate facilities to provide that care.(c) A person under 18 years of age who is not committed to the division pursuant to this section may be transferred to the division by the Secretary of the Department of Corrections and Rehabilitation with the approval of the Director of the Division of Juvenile Justice. In sentencing a person under 18 years of age, the court may may, until July 1, 2021, order that the person be transferred to the custody of the Division of Juvenile Justice pursuant to this subdivision. If the court makes this order and the division fails to accept custody of the person, the person shall be returned to court for resentencing. The transfer shall be solely for the purposes of housing the inmate, allowing participation in the programs available at the institution by the inmate, and allowing division parole supervision of the inmate, who, in all other aspects shall be deemed to be committed to the Department of Corrections and Rehabilitation and shall remain subject to the jurisdiction of the Secretary of the Department of Corrections and Rehabilitation and the Board of Parole Hearings. Notwithstanding subdivision (b) of Section 2900 of the Penal Code, the secretary, with the concurrence of the director, may designate a facility under the jurisdiction of the director as a place of reception for a person described in this subdivision. The director has the same powers with respect to an inmate transferred pursuant to this subdivision as if the inmate had been committed or transferred to the Division of Juvenile Justice either under the Arnold-Kennick Juvenile Court Law or subdivision (a). The duration of the transfer shall extend until any of the following occurs:(1) The director orders the inmate returned to the Department of Corrections and Rehabilitation.(2) The inmate is ordered discharged by the Board of Parole Hearings.(3) The inmate reaches 18 years of age. However, if the inmates period of incarceration would be completed on or before the inmates 25th birthday, the director may continue to house the inmate until the period of incarceration is completed. completed or until final closure of the Division of Juvenile Justice.(d) The amendments to subdivision (c), as that subdivision reads on July 1, 2018, made by the act adding this subdivision, apply retroactively.SEC. 14. Section 1731.6 of the Welfare and Institutions Code is amended to read:1731.6. (a) In any county in which there is in effect a contract made pursuant to Section 1752.1, if a court has determined that a person comes within the provisions of Section 1731.5 and concludes that a proper disposition of the case requires such observation and diagnosis as can be made at a diagnostic and treatment center of the Youth Authority, Division of Juvenile Justice, the court may continue the hearing and and, until July 1, 2021, order that such the person be placed temporarily in such a center for a period not to exceed 90 days, with the further provision in such order that the Director of the Youth Authority Division of Juvenile Justice report to the court its diagnosis and recommendations concerning the person within the 90-day period.(b) The Director of the Youth Authority Division of Juvenile Justice shall, within the 90 days, cause the person to be observed and examined and shall forward to the court his the diagnosis and recommendation concerning such the persons future care, supervision, and treatment.(c) The Youth Authority Division of Juvenile Justice shall accept such that person if it believes that the person can be materially benefited by such diagnostic and treatment services and if the Director of the Youth Authority Division of Juvenile Justice certifies that staff and institutions are available. No such A person shall not be transported to any facility under the jurisdiction of the Youth Authority Division of Juvenile Justice until the director has notified the referring court of the place to which such the person is to be transported and the time at which he the person can be received.(d) Notwithstanding the provisions of subdivision (c), the Youth Authority Division of Juvenile Justice shall accept without cost to the county any persons remanded pursuant to Section 707.2.(e) The sheriff of the county in which an order is made placing a person in a diagnostic and treatment center pursuant to this section, or any other peace officer designated by the court, shall execute the order placing such the person in the center or returning him them therefrom to the court. The expense of such the sheriff or other peace officer incurred in executing such that order is a charge upon the county in which the court is situated.SEC. 15. Section 1731.7 of the Welfare and Institutions Code, as amended by Section 42 of Chapter 29 of the Statutes of 2020, is amended to read:1731.7. (a) The Department of Corrections and Rehabilitation, Division of Juvenile Justice, shall establish and operate a seven-year pilot program for transition-aged youth. Commencing on or after January 1, 2019, the program shall divert a limited number of transition-aged youth from adult prison to a juvenile facility in order to provide developmentally appropriate, rehabilitative programming designed for transition-aged youth with the goal of improving their outcomes and reducing recidivism.(b) The department may develop criteria for placement in this program, initially targeting youth sentenced by a superior court who committed an offense described in subdivision (b) of Section 707 prior to 18 years of age. Youth with a period of incarceration that cannot be completed on or before their 25th birthday are ineligible for placement in the transition-aged youth program. The department may consider the availability of program credit earning opportunities that lower the total length of time a youth serves in determining eligibility.(c) Notwithstanding any other law, following sentencing, an individual who is 18 years of age or older at the time of sentencing and who has been convicted of an offense described in subdivision (b) of Section 707 that occurred prior to 18 years of age shall remain in local detention pending a determination of acceptance or rejection by the Division of Juvenile Justice. The Division of Juvenile Justice shall notify the local detention authority upon determination of acceptance or rejection of an individual pursuant to this subdivision.(d) An eligible person may be transferred to the Division of Juvenile Justice by the Secretary of the Department of Corrections and Rehabilitation with the approval of the Director of the Division of Juvenile Justice. Notwithstanding subdivision (b) of Section 2900 of the Penal Code, the secretary, with the concurrence of the director, may designate a facility under the jurisdiction of the Division of Juvenile Justice as a place of reception for a person described in this section.(e) The duration of the transfer shall extend until either of the following occurs:(1) The director orders the youth returned to the Department of Corrections and Rehabilitation.(2) The youths period of incarceration is completed.(f) The Division of Juvenile Justice shall produce and submit a report to the Legislature on January 1, 2020, and each January 1 thereafter, to assess the program. At a minimum, the report shall include all of the following:(1) Criteria used to determine placement in the program.(2) Guidelines for satisfactory completion of the program.(3) Demographic data of eligible and selected participants, including, but not limited to, county of conviction, race, gender, sexual orientation, and gender identity and expression.(4) Disciplinary infractions incurred by participants.(5) Good conduct, milestone completion, rehabilitative achievement, and educational merit credits earned in custody.(6) Quantitative and qualitative measures of progress in programming.(7) Rates of attrition of program participants.(g) The Division of Juvenile Justice shall contract with one or more independent universities or outside research organizations to evaluate the effects of participation in the program established by this section. This evaluation shall include, at a minimum, an evaluation of cost-effectiveness, recidivism data, consistency with evidence-based principles, and program fidelity. If sufficient data is available, the evaluation may also compare participant outcomes with a like group of similarly situated transition aged youth retained in the counties or incarcerated in adult institutions.(h) The Division of Juvenile Justice shall promulgate regulations to implement this section.(i) Effective July 1, 2020, the pilot program operated pursuant to this section shall be suspended. Any pilot program participants who were diverted from an adult prison pursuant to this section and who were housed at the Division of Juvenile Justice prior to January 1, 2020, may remain at the Division of Juvenile Justice pursuant to subdivision (e).SEC. 16. Section 1731.7 of the Welfare and Institutions Code, as added by Section 68 of Chapter 25 of the Statutes of 2019, is repealed.1731.7.(a)The Department of Corrections and Rehabilitation shall establish and operate a seven-year pilot program for transition-aged youth. Commencing on or after January 1, 2019, the program shall divert a limited number of transition-aged youth from adult prison to a juvenile facility in order to provide developmentally appropriate, rehabilitative programming designed for transition-aged youth with the goal of improving their outcomes and reducing recidivism.(b)The department may develop criteria for placement in this program, initially targeting youth sentenced by a superior court who committed an offense described in subdivision (b) of Section 707 prior to 18 years of age. Youth with a period of incarceration that cannot be completed on or before their 25th birthday are ineligible for placement in the transition-aged youth program. The department may consider the availability of program credit earning opportunities that lower the total length of time a youth serves in determining eligibility.(c)Notwithstanding any other law, following sentencing, an individual who is 18 years of age or older at the time of sentencing and who has been convicted of an offense described in subdivision (b) of Section 707 that occurred prior to 18 years of age shall remain in local detention pending a determination of acceptance or rejection by the Department of Youth and Community Restoration. The Department of Youth and Community Restoration shall notify the local detention authority upon determination of acceptance or rejection of an individual pursuant to this subdivision.(d)An eligible person may be transferred to the Department of Youth and Community Restoration by the Secretary of the Department of Corrections and Rehabilitation with the approval of the Director of the Department of Youth and Community Restoration. Notwithstanding subdivision (b) of Section 2900 of the Penal Code, the secretary, with the concurrence of the director, may designate a facility under the jurisdiction of the Department of Youth and Community Restoration as a place of reception for a person described in this section.(e)The duration of the transfer shall extend until either of the following occurs:(1)The director orders the youth returned to the Department of Corrections and Rehabilitation.(2)The youths period of incarceration is completed.(f)The Department of Youth and Community Restoration shall produce and submit a report to the Legislature on January 1, 2021, and each January 1 thereafter, to assess the program. At a minimum, the report shall include all of the following:(1)Criteria used to determine placement in the program.(2)Guidelines for satisfactory completion of the program.(3)Demographic data of eligible and selected participants, including, but not limited to, county of conviction, race, gender, sexual orientation, and gender identity and expression.(4)Disciplinary infractions incurred by participants.(5)Good conduct, milestone completion, rehabilitative achievement, and educational merit credits earned in custody.(6)Quantitative and qualitative measures of progress in programming.(7)Rates of attrition of program participants.(g)The Department of Youth and Community Restoration shall contract with one or more independent universities or outside research organizations to evaluate the effects of participation in the program established by this section. This evaluation shall include, at a minimum, an evaluation of cost-effectiveness, recidivism data, consistency with evidence-based principles, and program fidelity. If sufficient data is available, the evaluation may also compare participant outcomes with a like group of similarly situated transition aged youth retained in the counties or incarcerated in adult institutions.(h)The Department of Youth and Community Restoration shall promulgate regulations to implement this section.(i)This section shall become operative July 1, 2020.(j)This section shall become inoperative on June 1, 2026, and, as of January 1, 2027, is repealed.SEC. 17. Section 1752.1 of the Welfare and Institutions Code is amended to read:1752.1. (a) The director may enter into contracts with the approval of the Director of Finance with any county of this state, upon request of the board of supervisors thereof, wherein the Youth Authority Division of Juvenile Justice agrees to furnish diagnosis and treatment services and temporary detention during a period of study to the county for selected cases of persons eligible for commitment to the Youth Authority. Division of Juvenile Justice. The county shall reimburse the state for the cost of such those services, such the cost to be determined by the Director of the Youth Authority. Division of Juvenile Justice.The Youth Authority(b) The Division of Juvenile Justice shall present to the county, not more frequently than monthly, a claim for the amount due the state under this section which the county shall process and pay pursuant to the provisions of Chapter 4 (commencing with Section 29700) of Division 3 of Title 3 of the Government Code.(c) The Division of Juvenile Justice shall not accept new cases from the counties pursuant to this section on and after July 1, 2021.SEC. 18. Section 1752.15 of the Welfare and Institutions Code is amended to read:1752.15. (a) The director may enter into contracts, with the approval of the Director of Finance, with any county of this state upon request of the board of supervisors thereof, wherein the Department of the Youth Authority Division of Juvenile Justice agrees to furnish temporary emergency detention facilities and necessary services incident thereto, for persons under the age of 18 years who are in the custody of the county probation officer pursuant to provisions of Chapter 2 (commencing with Section 200) of Part 1 of Division 2. Facilities of the department may be used only on a temporary basis when existing county juvenile facilities are rendered unsafe or inadequate because of a natural or manmade disaster, or when the continued presence of the minor or minors in the county juvenile facilities would, in the opinion of the judge of the juvenile court having jurisdiction over the minor, of the chief probation officer of the county, and of the director, present a significant risk of violence or escape. They may not be used for the detention of a person who is alleged to be or has been adjudged to be a person described by Section 300 or Section 601.Whenever(b) Whenever any person is detained in a California Youth Authority Division of Juvenile Justice facility located in a county other than the county which has contracted for services pursuant to this section, the county shall provide for adequate consultation between the minor and his or her the minors attorney; and, if the minors parent or guardian lacks adequate private means of transportation, and if the minor has been detained in the facility for more than 10 days, the county shall make reasonable efforts to provide for visitation between the minor and his or her the minors parents or guardian.The(c) The county shall reimburse the state for the cost of these services, the cost to be determined by the director. The department shall present to the county, not more than once a month, a claim for the amount due the state under this section which the county shall process and pay pursuant to the provisions of Chapter 4 (commencing with Section 29700) of Division 3 of Title 3 of the Government Code.(d) The Division of Juvenile Justice shall not accept new cases from the counties pursuant to this section on and after July 1, 2021.SEC. 19. Section 1767.35 of the Welfare and Institutions Code is amended to read:1767.35. (a) For a ward discharged from the Division of Juvenile Facilities Justice to the jurisdiction of the committing court, that person may be detained by probation, for the purpose of initiating proceedings to modify the wards conditions of supervision entered pursuant to paragraph (6) of subdivision (b) of Section 1766 if there is probable cause to believe that the ward has violated any of the court-ordered conditions of supervision. Within 15 days of detention, the committing court shall conduct a modification hearing for the ward. Pending the hearing, the ward may be detained by probation. At the hearing authorized by this subdivision, at which the ward shall be entitled to representation by counsel, the court shall consider the alleged violation of conditions of supervision, the risks and needs presented by the ward, and the supervision programs and sanctions that are available for the ward. Modification may include, as a sanction for a finding of a serious violation or a series of repeated violations of the conditions of supervision, an order for the reconfinement of a ward under 18 years of age in a juvenile facility, or for the reconfinement of a ward 18 years of age or older in a juvenile facility as authorized by Section 208.5, or for the reconfinement of a ward 18 years of age or older in a local adult facility as authorized by subdivision (b), or or, until July 1, 2021, the Division of Juvenile Facilities Justice as authorized by subdivision (c). The ward shall be fully informed by the court of the terms, conditions, responsibilities, and sanctions that are relevant to the order that is adopted by the court. The procedure of the supervision modification hearing, including the detention status of the ward in the event continuances are ordered by the court, shall be consistent with the rules, rights, and procedures applicable to delinquency disposition hearings, as described in Article 17 (commencing with Section 675) of Chapter 2 of Part 1 of Division 2.(b) Notwithstanding any other law, subject to Chapter 1.6. (commencing with Section 1980), and consistent with the maximum periods of time set forth in Section 731, in any case in which a person who was committed to and discharged from the Department of Corrections and Rehabilitation, Division of Juvenile Facilities Justice to the jurisdiction of the committing court attains 18 years of age prior to being discharged from the division or during the period of supervision by the committing court, the court may, upon a finding that the ward violated his or her their conditions of supervision and after consideration of the recommendation of the probation officer and pursuant to a hearing conducted according to the provisions of subdivision (a), order that the person be delivered to the custody of the sheriff for a period not to exceed a total of 90 days, as a custodial sanction consistent with the reentry goals and requirements imposed by the court pursuant to paragraph (6) of subdivision (b) of Section 1766. Notwithstanding any other law, the sheriff may allow the person to come into and remain in contact with other adults in the county jail or in any other county correctional facility in which he or she the person is housed.(c) Notwithstanding any other law and subject to Chapter 1.6 (commencing with Section 1980), in any case in which a person who was committed to and discharged from the Department of Corrections and Rehabilitation, Division of Juvenile Facilities, Justice, to the jurisdiction of the committing court, the juvenile court may, upon a finding that the ward violated his or her their conditions of supervision and after consideration of the recommendation of the probation officer and pursuant to a hearing conducted according to the provisions of subdivision (a), order that the person be returned to the custody of the Department of Corrections and Rehabilitation, Division of Juvenile Facilities, Justice, for a specified amount of time no shorter than 90 days and no longer than one year. This return shall be a sanction consistent with the reentry goals and requirements imposed by the court pursuant to paragraph (6) of subdivision (b) of Section 1766. A decision to return a ward to the custody of the Division of Juvenile Facilities Justice can only be made prior to July 1, 2021, and pursuant to the court making the following findings: (1) that appropriate local options and programs have been exhausted, and (2) that the ward has available confinement time that is greater than or equal to the length of the return.(d) Upon ordering a ward to the custody of the Division of Juvenile Facilities, Justice, the court shall send to the Division of Juvenile Facilities Justice a copy of its order along with a copy of the wards probation plans and history while under the supervision of the county.(e)This section shall become operative on January 1, 2013.SEC. 20. Section 1991 of the Welfare and Institutions Code is amended to read:1991. (a) Commencing with the 2021-22 202122 fiscal year, and annually thereafter, there shall be an allocation to the county for use by the county to provide appropriate rehabilitative housing and supervision services for the population specified in subdivision (b) of Section 1990. In making allocations, the Board of Supervisors shall consider the plan required in Section 1995. Any entity receiving a direct allocation of funding from the Board of Supervisors under this section for any secure residential placement for court ordered detention will be subject to existing regulations. A With the exception of county probation departments, a local public agency that has primary responsibility for prosecuting or making arrests or detentions shall not provide rehabilitative and supervision services for the population specified in subdivision (b) of Section 1990 or receive funding pursuant to this section:(1) For the 2021-22 202122 fiscal year, thirty-nine million nine hundred forty-nine thousand dollars ($39,949,000) shall be appropriated from the General Fund to provide appropriate rehabilitative and supervision services for the population specified in subdivision (b) of Section 1990 based on a projected average daily population of 177.6 wards. The by-county distribution shall be based on 30 percent of the per-county percentage of the average number of wards committed to the Department of Corrections and Rehabilitation, Division of Juvenile Justice, as of December 31, 2018, June 30, 2019, and December 31, 2019, 50 percent of the by-county distribution of juveniles adjudicated for certain violent and serious felony crime categories per 2018 Juvenile Court and Probation Statistical System data, updated annually based on the most recently available data, and 20 percent of the by-county distribution of all individuals between 10 and 17 years of age, inclusive, from the preceding calendar year.(2) For the 2022-23 202223 fiscal year, one hundred eighteen million three hundred thirty-nine thousand dollars ($118,339,000) shall be appropriated from the General Fund to provide appropriate rehabilitative and supervision services for the population specified in subdivision (b) of Section 1990. The by-county distribution is based on the per-county percentage referenced in paragraph (1) of subdivision (a) and a projected average daily population of 526 wards.(3) For the 2023-24 202324 fiscal year, one hundred ninety two million thirty-seven thousand dollars ($192,037,000) shall be appropriated from the General Fund to provide appropriate rehabilitative and supervision services for the population specified in subdivision (b) Section 1990. The by-county distribution is based the per-county percentage referenced in paragraph (1) of subdivision (a) and a projected average daily population of 853.5 wards.(4) For the 2024-25 202425 fiscal year and each year thereafter, two hundred eight million eight hundred thousand dollars ($208,800,000) shall be appropriated from the General Fund to provide appropriate rehabilitative and supervision services for the population specified in subdivision (b) of Section 1990 based on a projected average daily population of 928 wards. The Governor and the Legislature shall work with stakeholders to establish a distribution methodology for the funding in this paragraph by January 10, 2024, and ongoing that improves outcomes for this population.(5) The Department of Finance shall increase to no more than two hundred fifty thousand dollars ($250,000) the award amount for any county whose allocation as calculated pursuant to paragraphs (1), (2), (3), and (4) totals less than two hundred fifty thousand dollars ($250,000). The appropriation in paragraphs (1), (2), (3), and (4) shall be increased by the amount(s) needed to bring each counties allocation to $250,000.(b) Commencing with the 2024-25 202425 fiscal year, the allocations determined by paragraphs (4) and (5) of subdivision (a) and shall be adjusted annually by a rate commensurate with any applicable growth in the Juvenile Justice Growth Special Account in the prior fiscal year. Each year this growth shall become additive to the next years base allocation.(c) By September July 1, 2021, and each September July 1 annually thereafter, the Department of Finance shall allocate the amount calculated in paragraphs (1), (2), (3), (4), and (5) of subdivision (a) from the General Fund and provide a schedule for the allocation of funds among counties to the State Controller. The State Controller shall allocate these funds in monthly installments according to the same schedule for allocations from the Youthful Offender Block Grant Special Account. no later than August 1 each year, consistent with the schedule provided by the Department of Finance.SEC. 21. Section 2250 of the Welfare and Institutions Code is amended to read:2250. (a) Nine million six hundred thousand dollars ($9,600,000) is hereby appropriated from the General Fund to the Youth Programs and Facilities Grant Program, which shall be administered by the Board of State and Community Corrections, to award one-time grants, to counties for the purpose of providing resources for infrastructure related needs and improvements to assist counties in the development of a local continuum of care.(b) Each entity receiving a grant from the Youth Programs and Facilities Grant Program shall submit a detailed report to the office with the following information:(1) An accounting of expenditures.(2) A description of the physical and system enhancements made.(3) How many regional placement beds were supported with the funding.(4) What proportion of the regional placement beds were contracted to other counties and which counties.(c) A With the exception of county probation departments, a local public agency that has responsibility for making arrests and detaining suspects as its primary responsibility, or which is responsible for prosecutions, is ineligible to apply for this grant.(d) Funds from the Youth Programs and Facilities Grant Program shall not be used by counties to enter into contracts with private entities whose primary business is the custodial confinement of adults or youth in a prison or prison-like setting.(e) (1) The Board of State and Community Corrections shall complete and submit, no later than October 1, 2024, a report to the budget and public safety policy committees of the Legislature describing the expenditures of the Youth Programs and Facilities Grant Program, including, but not limited to, recipients and award amounts, how funding was spent, how many regional placements were supported and a detailed description of the counties that contracted to utilize the regional facility beds. The report shall also be made available to the public on the boards internet website.(2) The report required by paragraph (1) shall be submitted in compliance with Section 9795 of the Government Code.(f) Any costs incurred by the office in connection with the development or administration of the grant program shall be deducted from the amount appropriated before awarding any grants, not to exceed five percent of the amount appropriated.(g) This chapter shall remain in effect only until January 1, 2026, and as of that date is repealed.SEC. 22. Fifty thousand dollars ($50,000) is hereby appropriated from the General Fund in the 202122 fiscal year to the Adult Reentry Grant administered by the Board of State and Community Corrections to support rental assistance programs.SEC. 23. This act is a bill providing for appropriations related to the Budget Bill within the meaning of subdivision (e) of Section 12 of Article IV of the California Constitution, has been identified as related to the budget in the Budget Bill, and shall take effect immediately.SECTION 1.It is the intent of the Legislature to enact statutory changes relating to the Budget Act of 2021.
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3		-	Amended IN Senate ~~February 02, 2022 Amended IN Senate~~ April 26, 2021 CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Assembly Bill No. 87Introduced by Committee on Budget (Assembly Members Ting (Chair), Arambula, Bennett, Bloom, Carrillo, Cooper, Friedman, Cristina Garcia, Jones-Sawyer, Lee, McCarty, Medina, Mullin, Nazarian, ODonnell, Ramos, Reyes, Luz Rivas, Blanca Rubio, Stone, Wicks, and Wood)December 07, 2020An act to amend Section 3056 of the Penal Code, and to amend Sections 208, 208.5, 607, 726, 733.1, 736.5, 1731.5, 1731.6, 1752.1, 1752.15, 1767.35, 1991, and 2250 of, to amend and repeal Sections 704, 707.2, and 1731.7 of, to add Sections 731 and 779.5 to, and to add Article 23.5 (commencing with Section 875) to Chapter 2 of Part 1 of Division 2 of, the Welfare and Institutions Code, relating to juvenile justice, and making an appropriation therefor, to take effect immediately, bill related to the budget. An act to add Sections 8654.2 and 16429.7 to the Government Code, to add Section 116773.5 to the Health and Safety Code, and to amend Sections 6902.5, 12209, 17039, 17039.3, 17052.10, 17276.23, 19900, 19902, 23036.3, and 24416.23 of, to add Sections 17158.2, 17158.3, 24308.2, and 24308.3 to, and to add and repeal Sections 17131.16, 17131.17, 24308.4, and 24308.5 of, the Revenue and Taxation Code, relating to economic relief, and making an appropriation therefor, to take effect immediately, bill related to the budget.LEGISLATIVE COUNSEL'S DIGESTAB 87, as amended, Committee on Budget. Juvenile Justice. Economic relief: COVID-19 pandemic.(1) Existing law, the California Emergency Services Act, authorizes the Governor to proclaim a state of emergency when specified conditions of disaster or extreme peril to the safety of persons and property exist, and authorizes the Governor to exercise certain powers in response to that emergency, including, but not limited to, making expenditures from any fund legally available in order to deal with actual or threatened conditions of the state of emergency.On March 4, 2020, the Governor proclaimed a state of emergency in response to the 2019 novel coronavirus disease (COVID-19) pandemic. Pursuant to specified provisions relating to the prevention and control, the State Public Health Officer ordered all individuals living in the state to stay home or at their place of residence except as needed to maintain continuity of operations of the federal critical infrastructure sectors, as specified. Pursuant to authority under specified provisions of the California Emergency Services Act, the Governor issued Executive Order No. N-33-20 requiring all residents to immediately heed those state public health directives.Existing law, the California Small Business COVID-19 Relief Grant Program, requires the Office of Small Business Advocate within the Governors Office of Business and Economic Development to allocate grants to qualified small businesses affected by COVID-19 and the related health and safety restrictions, such as business interruptions or business closures incurred as a result of the COVID-19 pandemic, in accordance with specified criteria.This bill would create the California Emergency Relief Fund as a special fund in the State Treasury to provide emergency resources or relief relating to state of emergency declarations proclaimed by the Governor. The bill would transfer from the General Fund to the California Emergency Relief Fund $150,000,000 for purposes relating to the COVID-19 emergency proclaimed by the Governor on March 4, 2020. The bill would appropriate $150,000,000 from that fund to the Office of Small Business Advocate for a closed round to fund small business grant applications waitlisted from previous rounds of the California Small Business COVID-19 Relief Grant Program.(2) Existing law establishes the Water and Wastewater System Payments Under the American Rescue Plan Act of 2021 and creates the California Water and Wastewater Arrearage Payment Program for administration by the State Water Resources Control Board upon appropriation, as specified. Existing law authorizes community water systems to apply for program funds to assist customers who have past-due bills from the COVID-19 pandemic bill relief period, as defined. Existing law requires community water systems to allocate payments received under the program as bill credits to customers, as provided, to help address past-due bills incurred during the COVID-19 pandemic bill relief period. If there are sufficient funds appropriated for purposes of the program, existing law requires the state board to use the remaining funds to establish a similar program for funding wastewater treatment provider arrearages and shortfalls.Existing law also establishes within the Department of Community Services and Development the California Arrearage Payment Program (CAPP) under which specified electric and gas utilities are authorized to apply for CAPP funds, on behalf of their customers in arrears, and requires the utility to use any funds received, as specified, to offset customer arrearages that were incurred during the COVID-19 pandemic bill relief period, as defined. Existing law prohibits service from being discontinued due to nonpayment for those customers included in a utilitys CAPP application while the department reviews and approves all pending CAPP applications, and requires the utility applicant to waive any associated late fees and accrued interest for customers who are awarded CAPP benefits. Existing law requires the utility applicant to issue CAPP benefits to customers as bill credits to help address the eligible past due balance. Existing law requires the department to report specified data to the Legislature and on its public-facing internet website relating to distribution of CAPP benefits.This bill would require that any assistance or relief authorized by, and provided by a community water system, a wastewater treatment provider, or a utility applicant to an individual pursuant to, those acts be treated in the same manner as the federal earned income refund for purposes of determining the individuals eligibility to receive benefits under specified public social services laws. The bill would also prohibit any assistance or relief from being taken into account as income, or as resources for a period of 12 months from receipt, for purposes of determining the eligibility of the individual, or any other individual, for benefits or assistance for any other state or local program, as provided.The Personal Income Tax Law and the Corporation Tax Law, in conformity with federal income tax law, generally define gross income as income from whatever source derived, and provide various exclusions from gross income.This bill, for taxable years beginning on or after January 1, 2021, and before January 1, 2026, would exclude from gross income any amount of bill credits received by a customer from a community water system, wastewater treatment provider, or utility applicant pursuant to those acts. The bill would repeal these provisions on December 1, 2026.(3) The Sales and Use Tax Law, in lieu of specified credits allowed under the Personal Income Tax Law and the Corporation Tax Law for qualified expenditures paid or incurred by a taxpayer for the production of a qualified motion picture, allows a qualified taxpayer or affiliate to make an irrevocable election to (A) claim a refund of qualified sales and use taxes previously paid during a specified period not exceeding the income tax credit amount and (B) apply that income tax credit amount against qualified sales and use taxes imposed on the qualified taxpayer in the reporting periods in the 5 years following the reporting period for which the claimant was required to file its most recent sales and use tax return, as specified. Existing law prohibits the total amount of refunds or credit offsets claimed in lieu of qualified motion picture tax credits that would otherwise be allowed for a taxable year beginning on or after January 1, 2020, and before January 1, 2023, from exceeding $5,000,000.This bill would limit this prohibition to taxable years beginning on or after January 1, 2020, and before January 1, 2022.Existing law provides that, for taxable years beginning on or after January 1, 2020, and before January 1, 2023, for those amounts that are in excess of $5,000,000 for that taxable year, the claimant may offset that excess credit amount, or assigned portion, against the qualified sales and use taxes imposed during the reporting periods in the 5 years following and including the reporting period beginning on and after January 1, 2024.This bill would limit these provisions to taxable years beginning on or after January 1, 2020, and before January 1, 2022, and would instead provide that, for those amounts in excess of $5,000,000, the claimant may (i) elect to obtain a refund, subject to specified limitations, of the qualified sales and use taxes paid or offset that excess credit amount, or assigned portion against the qualified sales and use taxes imposed, during the reporting periods that occur during the 2021 calendar year or (ii) the claimant may offset the remaining excess credit amount, or assigned portion, against the qualified sales and use taxes imposed during the reporting periods in the 5 years following and including the reporting period beginning on and after January 1, 2022, as specified.(4) Existing state constitutional law governing insurance taxation imposes an annual tax on the gross premiums of an insurer, as defined, doing business in this state at specified rates. Existing law governing the taxation of insurers allows as credits against the taxes imposed by those laws a low-income housing tax credit allocated by the California Tax Credit Allocation Committee, a College Access Tax Credit allocated and certified by the California Educational Facilities Authority, and a credit in an amount equal to the amount of the gross premiums tax due from an insurer on account of pilot project insurance for previously uninsured motorists, as defined. Existing law allows any excess low-income housing tax credit and College Access Tax Credit to be carried over to reduce the tax in a succeeding year, as specified.Existing law provides that, for the years 2020, 2021, and 2022, the total amount of College Access Tax Credits and uninsured motorist tax credits otherwise allowable, including any credit amount allowed to be carried over to reduce tax in the following year, shall not reduce the annual tax by more than $5,000,000 for a given year.This bill would, instead, provide that the above $5,000,000 cap applies only to the years 2020 and 2021.(5) The Personal Income Tax Law and the Corporation Tax Law, in conformity with federal income tax law, generally define gross income as income from whatever source derived, and provide various exclusions from gross income. Existing law reduces the amount of any credit or deduction otherwise allowed under the Personal Income Tax and the Corporation Tax Law for any amount paid or incurred by the taxpayer upon which this exclusion is based by the amount of the exclusion allowed. Existing federal law, the American Rescue Plan Act of 2021, awards restaurant revitalization grants to eligible entities, including restaurants, food stands, food trucks, bars, and brewpubs, who meet specified requirements beginning on and after February 1, 2020. Existing federal law excludes from gross income for purposes of federal income taxes any amount received in the form of a restaurant revitalization grant, as specified. Existing federal law prohibits reductions in tax deductions, reductions in tax attributes, and denials of basis adjustments, for federal income tax purposes based on that exclusion.This bill, in modified conformity with federal law, would exclude, for taxable years beginning on or after January 1, 2020, from gross income any amount received in the form of a federal restaurant revitalization grant. The bill would adopt, except as provided, the provisions of the American Rescue Plan Act of 2021 prohibiting any reduction in tax deductions, reductions in tax attributes, and denials of basis adjustments based on the exclusion from gross income.Existing federal law, the Hard-Hit Small Businesses, Nonprofits, and Venues Act, among other things, awards grants to eligible shuttered venue operators, including live venue operators or promoters, theatrical producers, and live performing arts organization operators. Existing federal law excludes from gross income for purposes of federal income taxes any amount received in the form of a shuttered venue operator grant, as specified. Existing federal law prohibits reductions in tax deductions, reductions in tax attributes, and denials of basis adjustments, for federal income tax purposes based on that exclusion.This bill, for taxable years beginning on or after January 1, 2019, and in conformity with federal law, would exclude from gross income any amount received in the form of a federal shuttered venue operator grant. The bill would adopt, except as provided, the provisions of the federal Consolidated Appropriations Act, 2021, prohibiting any reduction in tax deductions, reductions in tax attributes, and denials of basis adjustments based on the exclusion from gross income, as provided. (6) The Personal Income Tax Law and Corporation Tax Law, in modified conformity with federal income tax laws, generally allow various deductions in computing the income that is subject to taxes imposed by those laws, including a deduction for a net operating loss as specified. Existing law suspends the deduction for a net operating loss, as specified, for taxable years beginning on or after January 1, 2020, and before January 1, 2023. The Personal Income Tax Law and Corporation Tax Law generally authorize various credits against the taxes imposed by those laws. Existing law provides that, except as specified, the total credits allowable under those laws may not reduce the taxes imposed by those laws by more than $5,000,000, as provided, for taxable years beginning on or after January 1, 2020, and before January 1, 2023. This bill would reinstate the net operating loss deduction, and would remove the above-described temporary limitation on allowable credits, for taxable years beginning on or after January 1, 2022.(7) Existing law, the Small Business Relief Act, authorizes specified partnerships and S corporations, for taxable years beginning on or after January 1, 2021, and before January 1, 2026, to elect to pay an elective tax at a rate based on its net income, as specified, for the taxable year. The act, for taxable years beginning on or after January 1, 2021, and before January 1, 2026, allows a credit against the personal income tax to a taxpayer, other than a partnership, that is a partner, shareholder, or member of an entity that elects to pay the elective tax, in an amount equal to a specified percentage of the partners, shareholders, or members pro rata share or distributive share, as applicable, of income subject to the elective tax paid by the entity. The act defines a qualified entity for these purposes as an entity that is taxed as a partnership or S corporation with partners, shareholders, or members that are corporations or taxpayers, but not partnerships. The act excludes a business entity that is disregarded for federal tax purposes from the definition of taxpayer, and defines qualified net income as the sum of the pro rata share or distributive share of income subject to tax under the Personal Income Tax Law, as specified.This bill, for purposes of the Small Business Relief Act, would include a partnership as an eligible partner, shareholder, or member for purposes of a qualified entity, and would include a limited liability company that is disregarded for federal tax purposes and meets specified criteria in the definition of a qualified taxpayer. The bill would also include specified guaranteed payments as qualified net income for purposes of the act.The Personal Income Tax Law provides for an alternative minimum tax and provides that, except for specified credits, no credit shall reduce the regular tax, as defined, below the tentative minimum tax. Existing law also requires credits allowed against the net tax to be applied in a specified order, including applying credits that reduce the regular tax below the tentative minimum tax before credits for taxes paid to other states.This bill, for taxable years beginning on or after January 1, 2021, would allow the elective tax credit to reduce the regular tax below the tentative minimum tax. The bill, for taxable years beginning on or after January 1, 2022, would require the elective tax credit to be applied against the net tax after credits for taxes paid to other states.(8) Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives that the tax expenditure will achieve, detailed performance indicators, and data collection requirements. This bill, for specified provisions, would provide findings to comply with the additional information requirement for any bill authorizing a new tax expenditure. (9) This bill would also make findings and declarations related to a gift of public funds.(10) This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.Existing law establishes the Division of Juvenile Justice within the Department of Corrections and Rehabilitation to operate facilities to house specified juvenile offenders. Existing law, commencing July 1, 2021, prohibits further commitment of wards to the Division of Juvenile Justice unless the ward is otherwise eligible to be committed to the division and a motion was filed to transfer the ward from the juvenile court to a court of criminal jurisdiction. Existing law requires that all wards committed to the division prior to July 1, 2021, remain within the custody of the division until the ward is discharged, released, or transferred.This bill would require a court to consider, as an alternative to commitment to the Division of Juvenile Justice, placement in local programs established as a result of the realignment of wards from the Division of Juvenile Justice to county-based custody. This bill would require the Division of Juvenile Justice to close on June 30, 2023, and would require the Director of the Division of Juvenile Justice, by January 1, 2022, to develop a plan for the transfer of jurisdiction of youth remaining at the Division of Juvenile Justice who are unable to discharge or otherwise move pursuant to law prior to the divisions final closure on June 30, 2023. The bill would make various other technical and conforming changes to implement the realignment of wards from the Division of Juvenile Justice to county-based custody.This bill would, commencing July 1, 2021, allow counties to establish secure youth treatment facilities for wards who are 14 years of age or older who have been adjudicated and found to be a ward of the court based on an offense that would have resulted in a commitment to the Division of Juvenile Justice, as provided. The bill would require the court to set a baseline term of confinement for the ward that is based on the most serious recent offense for which the ward has been adjudicated, as specified. The bill would additionally require the court to set a maximum term of confinement for the ward in a secure youth treatment facility and require the court, within 30 days of making the order of commitment, to receive, review, and approve an individual rehabilitation plan for the ward from the probation department and any other entity that is designated by the court for development of the plan. The bill would require the court to hold a progress review hearing for the ward not less frequently than once every 6 months during the term of confinement, as specified. The bill would authorize the court, at the conclusion of a progress review hearing, or at a separately scheduled hearing, to order a ward to be transferred from a secure youth treatment facility to a less restrictive program. The bill would, by July 1, 2023, require the Judicial Council to develop and adopt a matrix of offense-based classifications to be applied by the juvenile courts in all counties, as specified. The bill would prohibit a court from committing a juvenile to any juvenile facility for a period that exceeds the middle term of imprisonment that could be imposed upon an adult convicted of the same offense or offenses.This bill would require the probation department to request the prosecuting attorney to petition the committing court for an order directing that the person remain subject to the control of the department at the time of discharge if the person confined is determined to be physically dangerous to the public because of the persons mental or physical condition, disorder, or other problem that causes the person to have serious difficulty controlling their dangerous behavior. The bill would establish the process for the petition, probable cause hearing, trial, continued detention, and appeal pursuant to this provision. The bill would require the Governor and the Legislature to work with stakeholders to develop language by July 1, 2021, that would replace these provisions with a commitment process that ensures the treatment, capacity, legal protections, and court procedures are appropriate, as specified. Existing law establishes a Juvenile Justice Realignment Block Grant program to provide county-based custody, care, and supervision of youth who are realigned from the Division of Juvenile Justice or who would have otherwise been eligible for commitment to the division. Existing law requires the Department of Finance to allocate funds under this program by September 1 each year, beginning September 1, 2021, and provide a schedule of allocations to the Controller. Existing law requires the Controller to allocate the funds in monthly installments pursuant to a schedule that is the same as the schedule for allocations from the Youthful Offender Block Grant Special Account.This bill would instead require the Department of Finance to allocate funds under this program by July 1 each year, beginning July 1, 2021, and would require the Controller to allocate the funds, consistent with the schedule provided by the Department of Finance, no later than August 1 of each year.Existing law establishes the Adult Reentry Grant that is awarded by the Board of State and Community Corrections to support people formerly incarcerated in the state prison.This bill would appropriate $50,000 from the General Fund in 202122 fiscal year to the Adult Reentry Grant to support rental assistance programs, as specified.This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.Digest Key Vote: MAJORITY Appropriation: ~~YES~~ Fiscal Committee: ~~YES~~ Local Program: NO
	3	+	Amended IN Senate April 26, 2021 CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Assembly Bill No. 87Introduced by Assembly Member Ting Committee on BudgetDecember 07, 2020 An act relating to the Budget Act of 2021. to amend Section 3056 of the Penal Code, and to amend Sections 208, 208.5, 607, 726, 733.1, 736.5, 1731.5, 1731.6, 1752.1, 1752.15, 1767.35, 1991, and 2250 of, to amend and repeal Sections 704, 707.2, and 1731.7 of, to add Sections 731 and 779.5 to, and to add Article 23.5 (commencing with Section 875) to Chapter 2 of Part 1 of Division 2 of, the Welfare and Institutions Code, relating to juvenile justice, and making an appropriation therefor, to take effect immediately, bill related to the budget. LEGISLATIVE COUNSEL'S DIGESTAB 87, as amended, Committee on Budget. Budget Act of 2021. Juvenile Justice.Existing law establishes the Division of Juvenile Justice within the Department of Corrections and Rehabilitation to operate facilities to house specified juvenile offenders. Existing law, commencing July 1, 2021, prohibits further commitment of wards to the Division of Juvenile Justice unless the ward is otherwise eligible to be committed to the division and a motion was filed to transfer the ward from the juvenile court to a court of criminal jurisdiction. Existing law requires that all wards committed to the division prior to July 1, 2021, remain within the custody of the division until the ward is discharged, released, or transferred.This bill would require a court to consider, as an alternative to commitment to the Division of Juvenile Justice, placement in local programs established as a result of the realignment of wards from the Division of Juvenile Justice to county-based custody. This bill would require the Division of Juvenile Justice to close on June 30, 2023, and would require the Director of the Division of Juvenile Justice, by January 1, 2022, to develop a plan for the transfer of jurisdiction of youth remaining at the Division of Juvenile Justice who are unable to discharge or otherwise move pursuant to law prior to the divisions final closure on June 30, 2023. The bill would make various other technical and conforming changes to implement the realignment of wards from the Division of Juvenile Justice to county-based custody.This bill would, commencing July 1, 2021, allow counties to establish secure youth treatment facilities for wards who are 14 years of age or older who have been adjudicated and found to be a ward of the court based on an offense that would have resulted in a commitment to the Division of Juvenile Justice, as provided. The bill would require the court to set a baseline term of confinement for the ward that is based on the most serious recent offense for which the ward has been adjudicated, as specified. The bill would additionally require the court to set a maximum term of confinement for the ward in a secure youth treatment facility and require the court, within 30 days of making the order of commitment, to receive, review, and approve an individual rehabilitation plan for the ward from the probation department and any other entity that is designated by the court for development of the plan. The bill would require the court to hold a progress review hearing for the ward not less frequently than once every 6 months during the term of confinement, as specified. The bill would authorize the court, at the conclusion of a progress review hearing, or at a separately scheduled hearing, to order a ward to be transferred from a secure youth treatment facility to a less restrictive program. The bill would, by July 1, 2023, require the Judicial Council to develop and adopt a matrix of offense-based classifications to be applied by the juvenile courts in all counties, as specified. The bill would prohibit a court from committing a juvenile to any juvenile facility for a period that exceeds the middle term of imprisonment that could be imposed upon an adult convicted of the same offense or offenses.This bill would require the probation department to request the prosecuting attorney to petition the committing court for an order directing that the person remain subject to the control of the department at the time of discharge if the person confined is determined to be physically dangerous to the public because of the persons mental or physical condition, disorder, or other problem that causes the person to have serious difficulty controlling their dangerous behavior. The bill would establish the process for the petition, probable cause hearing, trial, continued detention, and appeal pursuant to this provision. The bill would require the Governor and the Legislature to work with stakeholders to develop language by July 1, 2021, that would replace these provisions with a commitment process that ensures the treatment, capacity, legal protections, and court procedures are appropriate, as specified. Existing law establishes a Juvenile Justice Realignment Block Grant program to provide county-based custody, care, and supervision of youth who are realigned from the Division of Juvenile Justice or who would have otherwise been eligible for commitment to the division. Existing law requires the Department of Finance to allocate funds under this program by September 1 each year, beginning September 1, 2021, and provide a schedule of allocations to the Controller. Existing law requires the Controller to allocate the funds in monthly installments pursuant to a schedule that is the same as the schedule for allocations from the Youthful Offender Block Grant Special Account.This bill would instead require the Department of Finance to allocate funds under this program by July 1 each year, beginning July 1, 2021, and would require the Controller to allocate the funds, consistent with the schedule provided by the Department of Finance, no later than August 1 of each year.Existing law establishes the Adult Reentry Grant that is awarded by the Board of State and Community Corrections to support people formerly incarcerated in the state prison.This bill would appropriate $50,000 from the General Fund in 202122 fiscal year to the Adult Reentry Grant to support rental assistance programs, as specified.This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.This bill would express the intent of the Legislature to enact statutory changes relating to the Budget Act of 2021.Digest Key Vote: MAJORITY Appropriation: NOYES Fiscal Committee: NOYES Local Program: NO
4	4
5		-	~~Amended IN Senate February 02, 2022~~ Amended IN Senate April 26, 2021
	5	+	Amended IN Senate April 26, 2021
6	6
7		-	Amended IN Senate February 02, 2022
8	7		Amended IN Senate April 26, 2021
9	8
10	9		CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION
11	10
12	11		Assembly Bill
13	12
14	13		No. 87
15	14
16		-	Introduced by Committee on Budget (Assembly Members Ting (Chair), Arambula, Bennett, Bloom, Carrillo, Cooper, Friedman, Cristina Garcia, Jones-Sawyer, Lee, McCarty, Medina, Mullin, Nazarian, ODonnell, Ramos, Reyes, Luz Rivas, Blanca Rubio, Stone, Wicks, and Wood)December 07, 2020
	15	+	Introduced by Assembly Member Ting Committee on BudgetDecember 07, 2020
17	16
18		-	Introduced by Committee on Budget (Assembly Members Ting (Chair), Arambula, Bennett, Bloom, Carrillo, Cooper, Friedman, Cristina Garcia, Jones-Sawyer, Lee, McCarty, Medina, Mullin, Nazarian, ODonnell, Ramos, Reyes, Luz Rivas, Blanca Rubio, Stone, Wicks, and Wood)
	17	+	Introduced by Assembly Member Ting Committee on Budget
19	18		December 07, 2020
20	19
21		-	An act to amend Section 3056 of the Penal Code, and to amend Sections 208, 208.5, 607, 726, 733.1, 736.5, 1731.5, 1731.6, 1752.1, 1752.15, 1767.35, 1991, and 2250 of, to amend and repeal Sections 704, 707.2, and 1731.7 of, to add Sections 731 and 779.5 to, and to add Article 23.5 (commencing with Section 875) to Chapter 2 of Part 1 of Division 2 of, the Welfare and Institutions Code, relating to juvenile justice, and making an appropriation therefor, to take effect immediately, bill related to the budget. An act to add Sections 8654.2 and 16429.7 to the Government Code, to add Section 116773.5 to the Health and Safety Code, and to amend Sections 6902.5, 12209, 17039, 17039.3, 17052.10, 17276.23, 19900, 19902, 23036.3, and 24416.23 of, to add Sections 17158.2, 17158.3, 24308.2, and 24308.3 to, and to add and repeal Sections 17131.16, 17131.17, 24308.4, and 24308.5 of, the Revenue and Taxation Code, relating to economic relief, and making an appropriation therefor, to take effect immediately, bill related to the budget.
	20	+	An act relating to the Budget Act of 2021. to amend Section 3056 of the Penal Code, and to amend Sections 208, 208.5, 607, 726, 733.1, 736.5, 1731.5, 1731.6, 1752.1, 1752.15, 1767.35, 1991, and 2250 of, to amend and repeal Sections 704, 707.2, and 1731.7 of, to add Sections 731 and 779.5 to, and to add Article 23.5 (commencing with Section 875) to Chapter 2 of Part 1 of Division 2 of, the Welfare and Institutions Code, relating to juvenile justice, and making an appropriation therefor, to take effect immediately, bill related to the budget.
22	21
23	22		LEGISLATIVE COUNSEL'S DIGEST
24	23
25	24		## LEGISLATIVE COUNSEL'S DIGEST
26	25
27		-	AB 87, as amended, Committee on Budget. Juvenile Justice. ~~Economic relief: COVID-19 pandemic.~~
	26	+	AB 87, as amended, Committee on Budget. Budget Act of 2021. Juvenile Justice.
28	27
29		-	(1) Existing law, the California Emergency Services Act, authorizes the Governor to proclaim a state of emergency when specified conditions of disaster or extreme peril to the safety of persons and property exist, and authorizes the Governor to exercise certain powers in response to that emergency, including, but not limited to, making expenditures from any fund legally available in order to deal with actual or threatened conditions of the state of emergency.On March 4, 2020, the Governor proclaimed a state of emergency in response to the 2019 novel coronavirus disease (COVID-19) pandemic. Pursuant to specified provisions relating to the prevention and control, the State Public Health Officer ordered all individuals living in the state to stay home or at their place of residence except as needed to maintain continuity of operations of the federal critical infrastructure sectors, as specified. Pursuant to authority under specified provisions of the California Emergency Services Act, the Governor issued Executive Order No. N-33-20 requiring all residents to immediately heed those state public health directives.Existing law, the California Small Business COVID-19 Relief Grant Program, requires the Office of Small Business Advocate within the Governors Office of Business and Economic Development to allocate grants to qualified small businesses affected by COVID-19 and the related health and safety restrictions, such as business interruptions or business closures incurred as a result of the COVID-19 pandemic, in accordance with specified criteria.This bill would create the California Emergency Relief Fund as a special fund in the State Treasury to provide emergency resources or relief relating to state of emergency declarations proclaimed by the Governor. The bill would transfer from the General Fund to the California Emergency Relief Fund $150,000,000 for purposes relating to the COVID-19 emergency proclaimed by the Governor on March 4, 2020. The bill would appropriate $150,000,000 from that fund to the Office of Small Business Advocate for a closed round to fund small business grant applications waitlisted from previous rounds of the California Small Business COVID-19 Relief Grant Program.(2) Existing law establishes the Water and Wastewater System Payments Under the American Rescue Plan Act of 2021 and creates the California Water and Wastewater Arrearage Payment Program for administration by the State Water Resources Control Board upon appropriation, as specified. Existing law authorizes community water systems to apply for program funds to assist customers who have past-due bills from the COVID-19 pandemic bill relief period, as defined. Existing law requires community water systems to allocate payments received under the program as bill credits to customers, as provided, to help address past-due bills incurred during the COVID-19 pandemic bill relief period. If there are sufficient funds appropriated for purposes of the program, existing law requires the state board to use the remaining funds to establish a similar program for funding wastewater treatment provider arrearages and shortfalls.Existing law also establishes within the Department of Community Services and Development the California Arrearage Payment Program (CAPP) under which specified electric and gas utilities are authorized to apply for CAPP funds, on behalf of their customers in arrears, and requires the utility to use any funds received, as specified, to offset customer arrearages that were incurred during the COVID-19 pandemic bill relief period, as defined. Existing law prohibits service from being discontinued due to nonpayment for those customers included in a utilitys CAPP application while the department reviews and approves all pending CAPP applications, and requires the utility applicant to waive any associated late fees and accrued interest for customers who are awarded CAPP benefits. Existing law requires the utility applicant to issue CAPP benefits to customers as bill credits to help address the eligible past due balance. Existing law requires the department to report specified data to the Legislature and on its public-facing internet website relating to distribution of CAPP benefits.This bill would require that any assistance or relief authorized by, and provided by a community water system, a wastewater treatment provider, or a utility applicant to an individual pursuant to, those acts be treated in the same manner as the federal earned income refund for purposes of determining the individuals eligibility to receive benefits under specified public social services laws. The bill would also prohibit any assistance or relief from being taken into account as income, or as resources for a period of 12 months from receipt, for purposes of determining the eligibility of the individual, or any other individual, for benefits or assistance for any other state or local program, as provided.The Personal Income Tax Law and the Corporation Tax Law, in conformity with federal income tax law, generally define gross income as income from whatever source derived, and provide various exclusions from gross income.This bill, for taxable years beginning on or after January 1, 2021, and before January 1, 2026, would exclude from gross income any amount of bill credits received by a customer from a community water system, wastewater treatment provider, or utility applicant pursuant to those acts. The bill would repeal these provisions on December 1, 2026.(3) The Sales and Use Tax Law, in lieu of specified credits allowed under the Personal Income Tax Law and the Corporation Tax Law for qualified expenditures paid or incurred by a taxpayer for the production of a qualified motion picture, allows a qualified taxpayer or affiliate to make an irrevocable election to (A) claim a refund of qualified sales and use taxes previously paid during a specified period not exceeding the income tax credit amount and (B) apply that income tax credit amount against qualified sales and use taxes imposed on the qualified taxpayer in the reporting periods in the 5 years following the reporting period for which the claimant was required to file its most recent sales and use tax return, as specified. Existing law prohibits the total amount of refunds or credit offsets claimed in lieu of qualified motion picture tax credits that would otherwise be allowed for a taxable year beginning on or after January 1, 2020, and before January 1, 2023, from exceeding $5,000,000.This bill would limit this prohibition to taxable years beginning on or after January 1, 2020, and before January 1, 2022.Existing law provides that, for taxable years beginning on or after January 1, 2020, and before January 1, 2023, for those amounts that are in excess of $5,000,000 for that taxable year, the claimant may offset that excess credit amount, or assigned portion, against the qualified sales and use taxes imposed during the reporting periods in the 5 years following and including the reporting period beginning on and after January 1, 2024.This bill would limit these provisions to taxable years beginning on or after January 1, 2020, and before January 1, 2022, and would instead provide that, for those amounts in excess of $5,000,000, the claimant may (i) elect to obtain a refund, subject to specified limitations, of the qualified sales and use taxes paid or offset that excess credit amount, or assigned portion against the qualified sales and use taxes imposed, during the reporting periods that occur during the 2021 calendar year or (ii) the claimant may offset the remaining excess credit amount, or assigned portion, against the qualified sales and use taxes imposed during the reporting periods in the 5 years following and including the reporting period beginning on and after January 1, 2022, as specified.(4) Existing state constitutional law governing insurance taxation imposes an annual tax on the gross premiums of an insurer, as defined, doing business in this state at specified rates. Existing law governing the taxation of insurers allows as credits against the taxes imposed by those laws a low-income housing tax credit allocated by the California Tax Credit Allocation Committee, a College Access Tax Credit allocated and certified by the California Educational Facilities Authority, and a credit in an amount equal to the amount of the gross premiums tax due from an insurer on account of pilot project insurance for previously uninsured motorists, as defined. Existing law allows any excess low-income housing tax credit and College Access Tax Credit to be carried over to reduce the tax in a succeeding year, as specified.Existing law provides that, for the years 2020, 2021, and 2022, the total amount of College Access Tax Credits and uninsured motorist tax credits otherwise allowable, including any credit amount allowed to be carried over to reduce tax in the following year, shall not reduce the annual tax by more than $5,000,000 for a given year.This bill would, instead, provide that the above $5,000,000 cap applies only to the years 2020 and 2021.(5) The Personal Income Tax Law and the Corporation Tax Law, in conformity with federal income tax law, generally define gross income as income from whatever source derived, and provide various exclusions from gross income. Existing law reduces the amount of any credit or deduction otherwise allowed under the Personal Income Tax and the Corporation Tax Law for any amount paid or incurred by the taxpayer upon which this exclusion is based by the amount of the exclusion allowed. Existing federal law, the American Rescue Plan Act of 2021, awards restaurant revitalization grants to eligible entities, including restaurants, food stands, food trucks, bars, and brewpubs, who meet specified requirements beginning on and after February 1, 2020. Existing federal law excludes from gross income for purposes of federal income taxes any amount received in the form of a restaurant revitalization grant, as specified. Existing federal law prohibits reductions in tax deductions, reductions in tax attributes, and denials of basis adjustments, for federal income tax purposes based on that exclusion.This bill, in modified conformity with federal law, would exclude, for taxable years beginning on or after January 1, 2020, from gross income any amount received in the form of a federal restaurant revitalization grant. The bill would adopt, except as provided, the provisions of the American Rescue Plan Act of 2021 prohibiting any reduction in tax deductions, reductions in tax attributes, and denials of basis adjustments based on the exclusion from gross income.Existing federal law, the Hard-Hit Small Businesses, Nonprofits, and Venues Act, among other things, awards grants to eligible shuttered venue operators, including live venue operators or promoters, theatrical producers, and live performing arts organization operators. Existing federal law excludes from gross income for purposes of federal income taxes any amount received in the form of a shuttered venue operator grant, as specified. Existing federal law prohibits reductions in tax deductions, reductions in tax attributes, and denials of basis adjustments, for federal income tax purposes based on that exclusion.This bill, for taxable years beginning on or after January 1, 2019, and in conformity with federal law, would exclude from gross income any amount received in the form of a federal shuttered venue operator grant. The bill would adopt, except as provided, the provisions of the federal Consolidated Appropriations Act, 2021, prohibiting any reduction in tax deductions, reductions in tax attributes, and denials of basis adjustments based on the exclusion from gross income, as provided. (6) The Personal Income Tax Law and Corporation Tax Law, in modified conformity with federal income tax laws, generally allow various deductions in computing the income that is subject to taxes imposed by those laws, including a deduction for a net operating loss as specified. Existing law suspends the deduction for a net operating loss, as specified, for taxable years beginning on or after January 1, 2020, and before January 1, 2023. The Personal Income Tax Law and Corporation Tax Law generally authorize various credits against the taxes imposed by those laws. Existing law provides that, except as specified, the total credits allowable under those laws may not reduce the taxes imposed by those laws by more than $5,000,000, as provided, for taxable years beginning on or after January 1, 2020, and before January 1, 2023. This bill would reinstate the net operating loss deduction, and would remove the above-described temporary limitation on allowable credits, for taxable years beginning on or after January 1, 2022.(7) Existing law, the Small Business Relief Act, authorizes specified partnerships and S corporations, for taxable years beginning on or after January 1, 2021, and before January 1, 2026, to elect to pay an elective tax at a rate based on its net income, as specified, for the taxable year. The act, for taxable years beginning on or after January 1, 2021, and before January 1, 2026, allows a credit against the personal income tax to a taxpayer, other than a partnership, that is a partner, shareholder, or member of an entity that elects to pay the elective tax, in an amount equal to a specified percentage of the partners, shareholders, or members pro rata share or distributive share, as applicable, of income subject to the elective tax paid by the entity. The act defines a qualified entity for these purposes as an entity that is taxed as a partnership or S corporation with partners, shareholders, or members that are corporations or taxpayers, but not partnerships. The act excludes a business entity that is disregarded for federal tax purposes from the definition of taxpayer, and defines qualified net income as the sum of the pro rata share or distributive share of income subject to tax under the Personal Income Tax Law, as specified.This bill, for purposes of the Small Business Relief Act, would include a partnership as an eligible partner, shareholder, or member for purposes of a qualified entity, and would include a limited liability company that is disregarded for federal tax purposes and meets specified criteria in the definition of a qualified taxpayer. The bill would also include specified guaranteed payments as qualified net income for purposes of the act.The Personal Income Tax Law provides for an alternative minimum tax and provides that, except for specified credits, no credit shall reduce the regular tax, as defined, below the tentative minimum tax. Existing law also requires credits allowed against the net tax to be applied in a specified order, including applying credits that reduce the regular tax below the tentative minimum tax before credits for taxes paid to other states.This bill, for taxable years beginning on or after January 1, 2021, would allow the elective tax credit to reduce the regular tax below the tentative minimum tax. The bill, for taxable years beginning on or after January 1, 2022, would require the elective tax credit to be applied against the net tax after credits for taxes paid to other states.(8) Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives that the tax expenditure will achieve, detailed performance indicators, and data collection requirements. This bill, for specified provisions, would provide findings to comply with the additional information requirement for any bill authorizing a new tax expenditure. (9) This bill would also make findings and declarations related to a gift of public funds.(10) This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.Existing law establishes the Division of Juvenile Justice within the Department of Corrections and Rehabilitation to operate facilities to house specified juvenile offenders. Existing law, commencing July 1, 2021, prohibits further commitment of wards to the Division of Juvenile Justice unless the ward is otherwise eligible to be committed to the division and a motion was filed to transfer the ward from the juvenile court to a court of criminal jurisdiction. Existing law requires that all wards committed to the division prior to July 1, 2021, remain within the custody of the division until the ward is discharged, released, or transferred.This bill would require a court to consider, as an alternative to commitment to the Division of Juvenile Justice, placement in local programs established as a result of the realignment of wards from the Division of Juvenile Justice to county-based custody. This bill would require the Division of Juvenile Justice to close on June 30, 2023, and would require the Director of the Division of Juvenile Justice, by January 1, 2022, to develop a plan for the transfer of jurisdiction of youth remaining at the Division of Juvenile Justice who are unable to discharge or otherwise move pursuant to law prior to the divisions final closure on June 30, 2023. The bill would make various other technical and conforming changes to implement the realignment of wards from the Division of Juvenile Justice to county-based custody.This bill would, commencing July 1, 2021, allow counties to establish secure youth treatment facilities for wards who are 14 years of age or older who have been adjudicated and found to be a ward of the court based on an offense that would have resulted in a commitment to the Division of Juvenile Justice, as provided. The bill would require the court to set a baseline term of confinement for the ward that is based on the most serious recent offense for which the ward has been adjudicated, as specified. The bill would additionally require the court to set a maximum term of confinement for the ward in a secure youth treatment facility and require the court, within 30 days of making the order of commitment, to receive, review, and approve an individual rehabilitation plan for the ward from the probation department and any other entity that is designated by the court for development of the plan. The bill would require the court to hold a progress review hearing for the ward not less frequently than once every 6 months during the term of confinement, as specified. The bill would authorize the court, at the conclusion of a progress review hearing, or at a separately scheduled hearing, to order a ward to be transferred from a secure youth treatment facility to a less restrictive program. The bill would, by July 1, 2023, require the Judicial Council to develop and adopt a matrix of offense-based classifications to be applied by the juvenile courts in all counties, as specified. The bill would prohibit a court from committing a juvenile to any juvenile facility for a period that exceeds the middle term of imprisonment that could be imposed upon an adult convicted of the same offense or offenses.This bill would require the probation department to request the prosecuting attorney to petition the committing court for an order directing that the person remain subject to the control of the department at the time of discharge if the person confined is determined to be physically dangerous to the public because of the persons mental or physical condition, disorder, or other problem that causes the person to have serious difficulty controlling their dangerous behavior. The bill would establish the process for the petition, probable cause hearing, trial, continued detention, and appeal pursuant to this provision. The bill would require the Governor and the Legislature to work with stakeholders to develop language by July 1, 2021, that would replace these provisions with a commitment process that ensures the treatment, capacity, legal protections, and court procedures are appropriate, as specified. Existing law establishes a Juvenile Justice Realignment Block Grant program to provide county-based custody, care, and supervision of youth who are realigned from the Division of Juvenile Justice or who would have otherwise been eligible for commitment to the division. Existing law requires the Department of Finance to allocate funds under this program by September 1 each year, beginning September 1, 2021, and provide a schedule of allocations to the Controller. Existing law requires the Controller to allocate the funds in monthly installments pursuant to a schedule that is the same as the schedule for allocations from the Youthful Offender Block Grant Special Account.This bill would instead require the Department of Finance to allocate funds under this program by July 1 each year, beginning July 1, 2021, and would require the Controller to allocate the funds, consistent with the schedule provided by the Department of Finance, no later than August 1 of each year.Existing law establishes the Adult Reentry Grant that is awarded by the Board of State and Community Corrections to support people formerly incarcerated in the state prison.This bill would appropriate $50,000 from the General Fund in 202122 fiscal year to the Adult Reentry Grant to support rental assistance programs, as specified.This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.
30		-
31		-	(1) Existing law, the California Emergency Services Act, authorizes the Governor to proclaim a state of emergency when specified conditions of disaster or extreme peril to the safety of persons and property exist, and authorizes the Governor to exercise certain powers in response to that emergency, including, but not limited to, making expenditures from any fund legally available in order to deal with actual or threatened conditions of the state of emergency.
32		-
33		-	On March 4, 2020, the Governor proclaimed a state of emergency in response to the 2019 novel coronavirus disease (COVID-19) pandemic. Pursuant to specified provisions relating to the prevention and control, the State Public Health Officer ordered all individuals living in the state to stay home or at their place of residence except as needed to maintain continuity of operations of the federal critical infrastructure sectors, as specified. Pursuant to authority under specified provisions of the California Emergency Services Act, the Governor issued Executive Order No. N-33-20 requiring all residents to immediately heed those state public health directives.
34		-
35		-	Existing law, the California Small Business COVID-19 Relief Grant Program, requires the Office of Small Business Advocate within the Governors Office of Business and Economic Development to allocate grants to qualified small businesses affected by COVID-19 and the related health and safety restrictions, such as business interruptions or business closures incurred as a result of the COVID-19 pandemic, in accordance with specified criteria.
36		-
37		-	This bill would create the California Emergency Relief Fund as a special fund in the State Treasury to provide emergency resources or relief relating to state of emergency declarations proclaimed by the Governor. The bill would transfer from the General Fund to the California Emergency Relief Fund $150,000,000 for purposes relating to the COVID-19 emergency proclaimed by the Governor on March 4, 2020. The bill would appropriate $150,000,000 from that fund to the Office of Small Business Advocate for a closed round to fund small business grant applications waitlisted from previous rounds of the California Small Business COVID-19 Relief Grant Program.
38		-
39		-	(2) Existing law establishes the Water and Wastewater System Payments Under the American Rescue Plan Act of 2021 and creates the California Water and Wastewater Arrearage Payment Program for administration by the State Water Resources Control Board upon appropriation, as specified. Existing law authorizes community water systems to apply for program funds to assist customers who have past-due bills from the COVID-19 pandemic bill relief period, as defined. Existing law requires community water systems to allocate payments received under the program as bill credits to customers, as provided, to help address past-due bills incurred during the COVID-19 pandemic bill relief period. If there are sufficient funds appropriated for purposes of the program, existing law requires the state board to use the remaining funds to establish a similar program for funding wastewater treatment provider arrearages and shortfalls.
40		-
41		-	Existing law also establishes within the Department of Community Services and Development the California Arrearage Payment Program (CAPP) under which specified electric and gas utilities are authorized to apply for CAPP funds, on behalf of their customers in arrears, and requires the utility to use any funds received, as specified, to offset customer arrearages that were incurred during the COVID-19 pandemic bill relief period, as defined. Existing law prohibits service from being discontinued due to nonpayment for those customers included in a utilitys CAPP application while the department reviews and approves all pending CAPP applications, and requires the utility applicant to waive any associated late fees and accrued interest for customers who are awarded CAPP benefits. Existing law requires the utility applicant to issue CAPP benefits to customers as bill credits to help address the eligible past due balance. Existing law requires the department to report specified data to the Legislature and on its public-facing internet website relating to distribution of CAPP benefits.
42		-
43		-	This bill would require that any assistance or relief authorized by, and provided by a community water system, a wastewater treatment provider, or a utility applicant to an individual pursuant to, those acts be treated in the same manner as the federal earned income refund for purposes of determining the individuals eligibility to receive benefits under specified public social services laws. The bill would also prohibit any assistance or relief from being taken into account as income, or as resources for a period of 12 months from receipt, for purposes of determining the eligibility of the individual, or any other individual, for benefits or assistance for any other state or local program, as provided.
44		-
45		-	The Personal Income Tax Law and the Corporation Tax Law, in conformity with federal income tax law, generally define gross income as income from whatever source derived, and provide various exclusions from gross income.
46		-
47		-	This bill, for taxable years beginning on or after January 1, 2021, and before January 1, 2026, would exclude from gross income any amount of bill credits received by a customer from a community water system, wastewater treatment provider, or utility applicant pursuant to those acts. The bill would repeal these provisions on December 1, 2026.
48		-
49		-	(3) The Sales and Use Tax Law, in lieu of specified credits allowed under the Personal Income Tax Law and the Corporation Tax Law for qualified expenditures paid or incurred by a taxpayer for the production of a qualified motion picture, allows a qualified taxpayer or affiliate to make an irrevocable election to (A) claim a refund of qualified sales and use taxes previously paid during a specified period not exceeding the income tax credit amount and (B) apply that income tax credit amount against qualified sales and use taxes imposed on the qualified taxpayer in the reporting periods in the 5 years following the reporting period for which the claimant was required to file its most recent sales and use tax return, as specified. Existing law prohibits the total amount of refunds or credit offsets claimed in lieu of qualified motion picture tax credits that would otherwise be allowed for a taxable year beginning on or after January 1, 2020, and before January 1, 2023, from exceeding $5,000,000.
50		-
51		-	This bill would limit this prohibition to taxable years beginning on or after January 1, 2020, and before January 1, 2022.
52		-
53		-	Existing law provides that, for taxable years beginning on or after January 1, 2020, and before January 1, 2023, for those amounts that are in excess of $5,000,000 for that taxable year, the claimant may offset that excess credit amount, or assigned portion, against the qualified sales and use taxes imposed during the reporting periods in the 5 years following and including the reporting period beginning on and after January 1, 2024.
54		-
55		-	This bill would limit these provisions to taxable years beginning on or after January 1, 2020, and before January 1, 2022, and would instead provide that, for those amounts in excess of $5,000,000, the claimant may (i) elect to obtain a refund, subject to specified limitations, of the qualified sales and use taxes paid or offset that excess credit amount, or assigned portion against the qualified sales and use taxes imposed, during the reporting periods that occur during the 2021 calendar year or (ii) the claimant may offset the remaining excess credit amount, or assigned portion, against the qualified sales and use taxes imposed during the reporting periods in the 5 years following and including the reporting period beginning on and after January 1, 2022, as specified.
56		-
57		-	(4) Existing state constitutional law governing insurance taxation imposes an annual tax on the gross premiums of an insurer, as defined, doing business in this state at specified rates. Existing law governing the taxation of insurers allows as credits against the taxes imposed by those laws a low-income housing tax credit allocated by the California Tax Credit Allocation Committee, a College Access Tax Credit allocated and certified by the California Educational Facilities Authority, and a credit in an amount equal to the amount of the gross premiums tax due from an insurer on account of pilot project insurance for previously uninsured motorists, as defined. Existing law allows any excess low-income housing tax credit and College Access Tax Credit to be carried over to reduce the tax in a succeeding year, as specified.
58		-
59		-	Existing law provides that, for the years 2020, 2021, and 2022, the total amount of College Access Tax Credits and uninsured motorist tax credits otherwise allowable, including any credit amount allowed to be carried over to reduce tax in the following year, shall not reduce the annual tax by more than $5,000,000 for a given year.
60		-
61		-	This bill would, instead, provide that the above $5,000,000 cap applies only to the years 2020 and 2021.
62		-
63		-	(5) The Personal Income Tax Law and the Corporation Tax Law, in conformity with federal income tax law, generally define gross income as income from whatever source derived, and provide various exclusions from gross income. Existing law reduces the amount of any credit or deduction otherwise allowed under the Personal Income Tax and the Corporation Tax Law for any amount paid or incurred by the taxpayer upon which this exclusion is based by the amount of the exclusion allowed.
64		-
65		-	Existing federal law, the American Rescue Plan Act of 2021, awards restaurant revitalization grants to eligible entities, including restaurants, food stands, food trucks, bars, and brewpubs, who meet specified requirements beginning on and after February 1, 2020. Existing federal law excludes from gross income for purposes of federal income taxes any amount received in the form of a restaurant revitalization grant, as specified. Existing federal law prohibits reductions in tax deductions, reductions in tax attributes, and denials of basis adjustments, for federal income tax purposes based on that exclusion.
66		-
67		-	This bill, in modified conformity with federal law, would exclude, for taxable years beginning on or after January 1, 2020, from gross income any amount received in the form of a federal restaurant revitalization grant. The bill would adopt, except as provided, the provisions of the American Rescue Plan Act of 2021 prohibiting any reduction in tax deductions, reductions in tax attributes, and denials of basis adjustments based on the exclusion from gross income.
68		-
69		-	Existing federal law, the Hard-Hit Small Businesses, Nonprofits, and Venues Act, among other things, awards grants to eligible shuttered venue operators, including live venue operators or promoters, theatrical producers, and live performing arts organization operators. Existing federal law excludes from gross income for purposes of federal income taxes any amount received in the form of a shuttered venue operator grant, as specified. Existing federal law prohibits reductions in tax deductions, reductions in tax attributes, and denials of basis adjustments, for federal income tax purposes based on that exclusion.
70		-
71		-	This bill, for taxable years beginning on or after January 1, 2019, and in conformity with federal law, would exclude from gross income any amount received in the form of a federal shuttered venue operator grant. The bill would adopt, except as provided, the provisions of the federal Consolidated Appropriations Act, 2021, prohibiting any reduction in tax deductions, reductions in tax attributes, and denials of basis adjustments based on the exclusion from gross income, as provided.
72		-
73		-	(6) The Personal Income Tax Law and Corporation Tax Law, in modified conformity with federal income tax laws, generally allow various deductions in computing the income that is subject to taxes imposed by those laws, including a deduction for a net operating loss as specified. Existing law suspends the deduction for a net operating loss, as specified, for taxable years beginning on or after January 1, 2020, and before January 1, 2023.
74		-
75		-	The Personal Income Tax Law and Corporation Tax Law generally authorize various credits against the taxes imposed by those laws. Existing law provides that, except as specified, the total credits allowable under those laws may not reduce the taxes imposed by those laws by more than $5,000,000, as provided, for taxable years beginning on or after January 1, 2020, and before January 1, 2023.
76		-
77		-	This bill would reinstate the net operating loss deduction, and would remove the above-described temporary limitation on allowable credits, for taxable years beginning on or after January 1, 2022.
78		-
79		-	(7) Existing law, the Small Business Relief Act, authorizes specified partnerships and S corporations, for taxable years beginning on or after January 1, 2021, and before January 1, 2026, to elect to pay an elective tax at a rate based on its net income, as specified, for the taxable year. The act, for taxable years beginning on or after January 1, 2021, and before January 1, 2026, allows a credit against the personal income tax to a taxpayer, other than a partnership, that is a partner, shareholder, or member of an entity that elects to pay the elective tax, in an amount equal to a specified percentage of the partners, shareholders, or members pro rata share or distributive share, as applicable, of income subject to the elective tax paid by the entity. The act defines a qualified entity for these purposes as an entity that is taxed as a partnership or S corporation with partners, shareholders, or members that are corporations or taxpayers, but not partnerships. The act excludes a business entity that is disregarded for federal tax purposes from the definition of taxpayer, and defines qualified net income as the sum of the pro rata share or distributive share of income subject to tax under the Personal Income Tax Law, as specified.
80		-
81		-	This bill, for purposes of the Small Business Relief Act, would include a partnership as an eligible partner, shareholder, or member for purposes of a qualified entity, and would include a limited liability company that is disregarded for federal tax purposes and meets specified criteria in the definition of a qualified taxpayer. The bill would also include specified guaranteed payments as qualified net income for purposes of the act.
82		-
83		-	The Personal Income Tax Law provides for an alternative minimum tax and provides that, except for specified credits, no credit shall reduce the regular tax, as defined, below the tentative minimum tax. Existing law also requires credits allowed against the net tax to be applied in a specified order, including applying credits that reduce the regular tax below the tentative minimum tax before credits for taxes paid to other states.
84		-
85		-	This bill, for taxable years beginning on or after January 1, 2021, would allow the elective tax credit to reduce the regular tax below the tentative minimum tax. The bill, for taxable years beginning on or after January 1, 2022, would require the elective tax credit to be applied against the net tax after credits for taxes paid to other states.
86		-
87		-	(8) Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives that the tax expenditure will achieve, detailed performance indicators, and data collection requirements.
88		-
89		-	This bill, for specified provisions, would provide findings to comply with the additional information requirement for any bill authorizing a new tax expenditure.
90		-
91		-	(9) This bill would also make findings and declarations related to a gift of public funds.
92		-
93		-	(10) This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.
	28	+	Existing law establishes the Division of Juvenile Justice within the Department of Corrections and Rehabilitation to operate facilities to house specified juvenile offenders. Existing law, commencing July 1, 2021, prohibits further commitment of wards to the Division of Juvenile Justice unless the ward is otherwise eligible to be committed to the division and a motion was filed to transfer the ward from the juvenile court to a court of criminal jurisdiction. Existing law requires that all wards committed to the division prior to July 1, 2021, remain within the custody of the division until the ward is discharged, released, or transferred.This bill would require a court to consider, as an alternative to commitment to the Division of Juvenile Justice, placement in local programs established as a result of the realignment of wards from the Division of Juvenile Justice to county-based custody. This bill would require the Division of Juvenile Justice to close on June 30, 2023, and would require the Director of the Division of Juvenile Justice, by January 1, 2022, to develop a plan for the transfer of jurisdiction of youth remaining at the Division of Juvenile Justice who are unable to discharge or otherwise move pursuant to law prior to the divisions final closure on June 30, 2023. The bill would make various other technical and conforming changes to implement the realignment of wards from the Division of Juvenile Justice to county-based custody.This bill would, commencing July 1, 2021, allow counties to establish secure youth treatment facilities for wards who are 14 years of age or older who have been adjudicated and found to be a ward of the court based on an offense that would have resulted in a commitment to the Division of Juvenile Justice, as provided. The bill would require the court to set a baseline term of confinement for the ward that is based on the most serious recent offense for which the ward has been adjudicated, as specified. The bill would additionally require the court to set a maximum term of confinement for the ward in a secure youth treatment facility and require the court, within 30 days of making the order of commitment, to receive, review, and approve an individual rehabilitation plan for the ward from the probation department and any other entity that is designated by the court for development of the plan. The bill would require the court to hold a progress review hearing for the ward not less frequently than once every 6 months during the term of confinement, as specified. The bill would authorize the court, at the conclusion of a progress review hearing, or at a separately scheduled hearing, to order a ward to be transferred from a secure youth treatment facility to a less restrictive program. The bill would, by July 1, 2023, require the Judicial Council to develop and adopt a matrix of offense-based classifications to be applied by the juvenile courts in all counties, as specified. The bill would prohibit a court from committing a juvenile to any juvenile facility for a period that exceeds the middle term of imprisonment that could be imposed upon an adult convicted of the same offense or offenses.This bill would require the probation department to request the prosecuting attorney to petition the committing court for an order directing that the person remain subject to the control of the department at the time of discharge if the person confined is determined to be physically dangerous to the public because of the persons mental or physical condition, disorder, or other problem that causes the person to have serious difficulty controlling their dangerous behavior. The bill would establish the process for the petition, probable cause hearing, trial, continued detention, and appeal pursuant to this provision. The bill would require the Governor and the Legislature to work with stakeholders to develop language by July 1, 2021, that would replace these provisions with a commitment process that ensures the treatment, capacity, legal protections, and court procedures are appropriate, as specified. Existing law establishes a Juvenile Justice Realignment Block Grant program to provide county-based custody, care, and supervision of youth who are realigned from the Division of Juvenile Justice or who would have otherwise been eligible for commitment to the division. Existing law requires the Department of Finance to allocate funds under this program by September 1 each year, beginning September 1, 2021, and provide a schedule of allocations to the Controller. Existing law requires the Controller to allocate the funds in monthly installments pursuant to a schedule that is the same as the schedule for allocations from the Youthful Offender Block Grant Special Account.This bill would instead require the Department of Finance to allocate funds under this program by July 1 each year, beginning July 1, 2021, and would require the Controller to allocate the funds, consistent with the schedule provided by the Department of Finance, no later than August 1 of each year.Existing law establishes the Adult Reentry Grant that is awarded by the Board of State and Community Corrections to support people formerly incarcerated in the state prison.This bill would appropriate $50,000 from the General Fund in 202122 fiscal year to the Adult Reentry Grant to support rental assistance programs, as specified.This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.This bill would express the intent of the Legislature to enact statutory changes relating to the Budget Act of 2021.
94	29
95	30		Existing law establishes the Division of Juvenile Justice within the Department of Corrections and Rehabilitation to operate facilities to house specified juvenile offenders. Existing law, commencing July 1, 2021, prohibits further commitment of wards to the Division of Juvenile Justice unless the ward is otherwise eligible to be committed to the division and a motion was filed to transfer the ward from the juvenile court to a court of criminal jurisdiction. Existing law requires that all wards committed to the division prior to July 1, 2021, remain within the custody of the division until the ward is discharged, released, or transferred.
96	31
97		-
98		-
99	32		This bill would require a court to consider, as an alternative to commitment to the Division of Juvenile Justice, placement in local programs established as a result of the realignment of wards from the Division of Juvenile Justice to county-based custody. This bill would require the Division of Juvenile Justice to close on June 30, 2023, and would require the Director of the Division of Juvenile Justice, by January 1, 2022, to develop a plan for the transfer of jurisdiction of youth remaining at the Division of Juvenile Justice who are unable to discharge or otherwise move pursuant to law prior to the divisions final closure on June 30, 2023. The bill would make various other technical and conforming changes to implement the realignment of wards from the Division of Juvenile Justice to county-based custody.
100		-
101		-
102	33
103	34		This bill would, commencing July 1, 2021, allow counties to establish secure youth treatment facilities for wards who are 14 years of age or older who have been adjudicated and found to be a ward of the court based on an offense that would have resulted in a commitment to the Division of Juvenile Justice, as provided. The bill would require the court to set a baseline term of confinement for the ward that is based on the most serious recent offense for which the ward has been adjudicated, as specified. The bill would additionally require the court to set a maximum term of confinement for the ward in a secure youth treatment facility and require the court, within 30 days of making the order of commitment, to receive, review, and approve an individual rehabilitation plan for the ward from the probation department and any other entity that is designated by the court for development of the plan. The bill would require the court to hold a progress review hearing for the ward not less frequently than once every 6 months during the term of confinement, as specified. The bill would authorize the court, at the conclusion of a progress review hearing, or at a separately scheduled hearing, to order a ward to be transferred from a secure youth treatment facility to a less restrictive program. The bill would, by July 1, 2023, require the Judicial Council to develop and adopt a matrix of offense-based classifications to be applied by the juvenile courts in all counties, as specified. The bill would prohibit a court from committing a juvenile to any juvenile facility for a period that exceeds the middle term of imprisonment that could be imposed upon an adult convicted of the same offense or offenses.
104	35
105		-
106		-
107	36		This bill would require the probation department to request the prosecuting attorney to petition the committing court for an order directing that the person remain subject to the control of the department at the time of discharge if the person confined is determined to be physically dangerous to the public because of the persons mental or physical condition, disorder, or other problem that causes the person to have serious difficulty controlling their dangerous behavior. The bill would establish the process for the petition, probable cause hearing, trial, continued detention, and appeal pursuant to this provision. The bill would require the Governor and the Legislature to work with stakeholders to develop language by July 1, 2021, that would replace these provisions with a commitment process that ensures the treatment, capacity, legal protections, and court procedures are appropriate, as specified.
108		-
109		-
110	37
111	38		Existing law establishes a Juvenile Justice Realignment Block Grant program to provide county-based custody, care, and supervision of youth who are realigned from the Division of Juvenile Justice or who would have otherwise been eligible for commitment to the division. Existing law requires the Department of Finance to allocate funds under this program by September 1 each year, beginning September 1, 2021, and provide a schedule of allocations to the Controller. Existing law requires the Controller to allocate the funds in monthly installments pursuant to a schedule that is the same as the schedule for allocations from the Youthful Offender Block Grant Special Account.
112	39
113		-
114		-
115	40		This bill would instead require the Department of Finance to allocate funds under this program by July 1 each year, beginning July 1, 2021, and would require the Controller to allocate the funds, consistent with the schedule provided by the Department of Finance, no later than August 1 of each year.
116		-
117		-
118	41
119	42		Existing law establishes the Adult Reentry Grant that is awarded by the Board of State and Community Corrections to support people formerly incarcerated in the state prison.
120	43
121		-
122		-
123	44		This bill would appropriate $50,000 from the General Fund in 202122 fiscal year to the Adult Reentry Grant to support rental assistance programs, as specified.
124	45
	46	+	This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.
125	47
126		-
127		-	This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.
	48	+	This bill would express the intent of the Legislature to enact statutory changes relating to the Budget Act of 2021.
128	49
129	50
130	51
131	52		## Digest Key
132	53
133	54		## Bill Text
134	55
135		-	The people of the State of California do enact as follows:SECTION 1. Section ~~8654.2~~ is ~~added to the Government Code,~~ to read:~~8654.~~2. ~~(a) There~~ is hereby created the California Emergency Relief Fund as a special fund in the State Treasury. This fund is established to provide emergency resources or relief relating to state of emergency declarations by the Governor.(b) The sum of one hundred fifty million dollars ($150,000,000) is hereby transferred from the General Fund to the California Emergency Relief Fund for purposes relating to the COVID-19 emergency proclaimed by the Governor on March 4, 2020.(c) For the purposes of providing emergency relief to small business impacted by the COVID-19 pandemic, one hundred fifty million dollars ($150,000,000) California Emergency Relief Fund is appropriated to the Office of Small Business Advocate within the Governors Office of Business and Economic Development for a closed round to fund small business grant applications waitlisted from previous rounds of the California Small Business COVID-19 Relief Grant Program (Article 8 (commencing with Section 12100.80) of Chapter 1.6 of Part 2 of Division 3 of Title 2 of the Government Code).SEC. 2. Section 16429.7 is added to the Government Code, to read:~~16429.7. (a) Notwithstanding~~ any other ~~law,~~ any ~~assistance~~ or ~~relief authorized~~ by~~, and provided to an individual by a utility applicant under, the California Arrearage Payment Program (CAPP) established pursuant to~~ this ~~article~~ shall be ~~treated in the same manner as the federal earned income refund for the purpose of determining the individuals eligibility to receive benefits under Division 9 (commencing with~~ Section ~~10000)~~ of the Welfare and Institutions Code, excluding benefits under Chapter 7 (commencing with Section 14000) of Part 3 of Division 9 of the Welfare and Institutions Code, or amounts of those benefits.(b) Notwithstanding any other law, any assistance or relief authorized by, and provided to an individual by a utility applicant under, the California Arrearage Payment Program (CAPP) established pursuant to this article shall not be taken into account as income, and shall not be taken into account as resources for a period of 12 months from receipt, for purposes of determining the eligibility of that individual or any other individual for benefits or assistance or the amount or extent of benefits or assistance under any state or local program not covered in subdivision (a). With respect to a state or local program, this subdivision shall only be implemented to the extent that it does not conflict with federal law relating to that program, and that any required federal approval or waiver is ~~first obtained for that program.SEC. 3. Section 116773.5 is added to the Health and Safety Code,~~ to read:~~116773~~.5. (a) Notwithstanding any other law, any ~~assistance~~ or ~~relief authorized~~ by~~, and~~ provided by ~~a community water system or a wastewater treatment provider to an individual pursuant to, this~~ chapter shall be treated in the same manner as the federal earned income refund for the purpose of determining the individuals eligibility to receive benefits under Division 9 (commencing with Section 10000) of the Welfare and Institutions Code, excluding benefits under Chapter 7 (commencing with Section 14000) of Part 3 of Division 9 of the Welfare and Institutions Code, or amounts of those benefits. (b) Notwithstanding any other law, any assistance or relief authorized by, and provided by a community water system or a wastewater treatment provider to an individual pursuant to, this chapter shall not be taken into account as income, and shall not be taken into account as resources for a period of 12 months from receipt, for purposes of determining the eligibility of that individual, or any other individual, for benefits or assistance or the amount or extent of benefits or assistance under any state or local program not covered in subdivision (a). With respect to a state or local program, this subdivision shall only be implemented to the extent that it does not conflict with federal law relating to that program, and that any required federal approval or waiver is first obtained for that program. SEC. 4. Section 6902.5 of the Revenue and Taxation Code is amended to read:~~6902~~.5. ~~(a)~~ For ~~the~~ purposes of this section:(1) ~~Qualified taxpayer means a person who~~ is ~~a qualified taxpayer within the meaning of~~ paragraph (17) of subdivision (b) of Section ~~17053.85, 17053.95, 23685, or 23695, or~~ paragraph (19) of subdivision (b) of Section ~~17053.98 or 23698.~~(2) ~~Affiliate means a qualified taxpayers affiliated corporation that has been assigned~~ any ~~portion of the credit~~ amount by the ~~qualified taxpayer pursuant to subdivision (c) of~~ Section ~~23685, subdivision (c) of Section 23695, or subdivision (c) of Section 23698.(3) Credit amount means an amount equal to the tax credit amount that would otherwise~~ be ~~allowed to a qualified taxpayer pursuant to Section 17053.85, 17053.95, 17053.98, 23685, 23695, or 23698, but~~ for the ~~election made pursuant to this section.(4) Production period means the production period as defined in paragraph (12) of subdivision~~ (b) of Section 17053.85, 17053.95, 23685, or 23695 or in paragraph (14) of subdivision (b) of Section 17053.98 or 23698.(5) (A) Qualified sales and use taxes means any state sales and use taxes imposed by Part 1 (commencing with Section 6001), on the operative date of the act adding this section.(B) Notwithstanding subparagraph (A), qualified sales and use taxes does not mean taxes imposed by Section 6051.2, 6051.5, 6201.2, 6201.5, Part 1.5 (commencing with Section 7200), Part 1.6 (commencing with Section 7251), or Section 35 of Article XIII of the California Constitution.(b) (1) A qualified taxpayer may, in lieu of claiming the credit allowed by Section 17053.85, 17053.95, 17053.98, 23685, 23695, or 23698, make an irrevocable election to apply the credit amount against qualified sales and use taxes imposed on the qualified taxpayer in accordance with this section.(2) An affiliate may, in lieu of claiming the assigned portion of the credit allowed by Section 23685, 23695, or 23698, make an irrevocable election to apply the assigned portion of the credit amount against qualified sales and use taxes imposed on the affiliate in accordance with this section.(c) (1) A qualified taxpayer or affiliate shall submit to the California Department of Tax and Fee Administration an irrevocable election, in a form as prescribed by the California Department of Tax and Fee Administration, which shall include, but not be limited to, the following information:(~~A) Representation~~ that ~~the claimant~~ is ~~a qualified taxpayer~~ or ~~an affiliate.(B) Statement of the dates~~ on ~~which the production period began and ended.(C) The credit~~ amount~~, and if an affiliate, the portion of the credit~~ amount ~~assigned to~~ it and documentation supporting the assignment of that portion of the credit amount.(D) The amount of qualified sales and use taxes the claimant remitted to the California Department of Tax and Fee Administration during the period commencing on the first day of the calendar quarter commencing immediately before the beginning of the production period, and ending on the date the claimant was required to file its most recent sales and use tax return with the California Department of Tax and Fee Administration.(E) A copy of the credit certificate issued pursuant to subparagraph (C) of paragraph (2) of subdivision (g) of Section 17053.85 or 23685 or subparagraph (D) of paragraph (3) of subdivision (g) of Section 17053.95, 17053.98, 23695, or 23698.(2) The election shall be filed on or before the date on which the qualified taxpayer or affiliate would first be allowed to claim a credit pursuant to Section 17053.85, 17053.95, 17053.98, 23685, 23695, or 23698 on its tax return.(3) (A) For those amounts for which an irrevocable election is made in lieu of tax credits allowed pursuant to Section 17053.85, 17053.95, 17053.98, 23685, 23695, or 23698 that would otherwise be allowed for any taxable year beginning on or after January 1, 2020, and before January 1, 2023, 2022, subdivision (d) and paragraph (1) of subdivision (e) shall only apply to those in-lieu credit amounts that do not exceed five million dollars ($5,000,000) for that taxable year.(B) For those amounts for which an irrevocable election is made in lieu of tax credits allowed pursuant to Section 17053.85, 17053.95, 17053.98, 23685, 23695, or 23698 that would otherwise be allowed for any taxable year beginning on or after January 1, 2020, and before January 1, 2023, 2022, that are in excess of five million dollars ($5,000,000) for that taxable year, subdivision (f) shall apply.(d) (1) The claimant may elect to obtain a refund of qualified sales and use taxes paid during the period described in subparagraph (D) of paragraph (1) of subdivision (c). If the claimant elects to obtain a refund of qualified sales and use taxes, the claimant shall file a claim for refund with the irrevocable election described in subdivision (c). The refund amount shall not exceed, for a qualified taxpayer, the credit amount, or for an affiliate, the portion of the credit amount assigned to it.(2) No interest shall be paid on any amount refunded or credited pursuant to paragraph (1).(e) (1) If the claimant does not elect to obtain a refund or in the case where the credit amount, or assigned portion, exceeds the amount of its claim for refund for the qualified sales and use taxes, the claimant may, for the reporting periods in the five years following the last reporting period as described in subparagraph (D) of paragraph (1) of subdivision (c), offset any remaining credit amount, or assigned portion, against the qualified sales and use taxes imposed during those reporting periods.(2) Notwithstanding paragraph (1), the total amount of refunds or credit offsets claimed under subdivision (d) and paragraph (1) of this subdivision in lieu of tax credits allowed pursuant to Section 17053.85, 17053.95, 17053.98, 23685, 23695, or 23698 that would otherwise be allowed for a taxable year beginning on or after January 1, 2020, and before January 1, 2023, 2022, shall not exceed five million dollars ($5,000,000).(f) Notwithstanding subdivision (d) and paragraph (1) of subdivision (e), for those amounts for which an irrevocable election is made in lieu of tax credits allowed pursuant to Section 17053.85, 17053.95, 17053.98, 23685, 23695, or 23698 that would otherwise be allowed for any taxable year beginning on or after January 1, 2020, and before January 1, 2023, 2022, that are in excess of five million dollars ($5,000,000) for that taxable year, the claimant may offset that excess credit amount, or assigned portion, against the qualified sales and use taxes imposed during the reporting periods in the five years both of the following and including the reporting period beginning on and after January 1, 2024. shall apply:(1) The claimant may elect to obtain a refund of the qualified sales and use taxes paid or offset that excess credit amount, or assigned portion against the qualified sales and use taxes imposed, during the reporting periods that occur during the 2021 calendar year. The total amount of refunds or credit offsets claimed under this paragraph, subdivision (d), and paragraph (1) of subdivision (e) shall not exceed five million dollars ($5,000,000) in the 2021 calendar year for each claimant.(2) If the claimant has not exhausted the excess credit amount, or assigned portion, as provided by paragraph (1), the claimant may offset the remaining excess credit amount, or assigned portion, against the qualified sales and use taxes imposed during the reporting periods in the five years following and including the reporting period beginning on and after January 1, 2022.(g) Section 6961 shall apply to any refund, or part thereof, that is erroneously made and any credit, or part thereof, that is erroneously allowed pursuant to this section.(h) The California Department of Tax and Fee Administration shall provide an annual listing to the Franchise Tax Board, in a form and manner agreed upon by the California Department of Tax and Fee Administration and the Franchise Tax Board, of the qualified taxpayers, or affiliates that have been assigned a portion of the credit allowed under Section 23685 pursuant to subdivision (c) of Section 23685, Section 23695 pursuant to subdivision (c) of Section 23695, or Section 23698 pursuant to subdivision (c) of Section 23698, who, during the year, have made an irrevocable election pursuant to this section and the credit amount, or portion of the credit amount, claimed by each qualified taxpayer or affiliate.(i) The California Department of Tax and Fee Administration may prescribe rules and regulations for the administration of this section.(j) The amendments made to this section by the act adding this subdivision shall not apply to irrevocable elections made before the operative date of the act adding this subdivision.(k) The amendments made to this section by the act adding this subdivision shall apply to irrevocable elections made on and after June 29, 2020.SEC. 5. Section 12209 of the Revenue and Taxation Code is amended to read:12209. (a) Notwithstanding Sections 12207 and 12208 to the contrary, for the years 2020, 2021, 2020 and 2022, 2021, the total amount of all credits otherwise allowable under Sections 12207 and 12208, including any credit amount allowed to be carried over pursuant to those sections or subdivision (c), shall not reduce the tax, as described by Section 12201, by more than five million dollars ($5,000,000) for a given year.(b) (1) The amount of any credit otherwise allowable for a year under Section 12207 that is not allowed due to the application of this section shall remain a credit carryover amount under Section 12207.(2) The carryover period for any credit allowable under Section 12207 that is not allowed due to the application of this section shall be increased by the number of years the credit or any portion thereof was not allowed.(c) The amount of any credit otherwise allowable for a year under Section 12208 that was not allowed due to the application of this section may be carried over to reduce the tax, as described by Section 12201, for the following year, and succeeding years if necessary, until the credit amount or any portion thereof that was not allowed due to the application of this section is exhausted. However, any credit amount under Section 12208 that is allowed to be carried over pursuant to this subdivision is also subject to the limitation in subdivision (a).(d) The limitation under subdivision (a) shall not apply to the credit allowed by Section 12206 (relating to credit for low-income housing).SEC. 6. Section 17039 of the Revenue and Taxation Code is amended to read:17039. (a) Notwithstanding any provision in this part to the contrary, for the purposes of computing tax credits, the term net tax means the tax imposed under either Section 17041 or 17048 plus the tax imposed under Section 17504 (relating to lump-sum distributions) less the credits allowed by Section 17054 (relating to personal exemption credits) and any amount imposed under paragraph (1) of subdivision (d) and paragraph (1) of subdivision (e) of Section 17560. Notwithstanding the preceding sentence, the net tax shall not be less than the tax imposed under Section 17504 (relating to the separate tax on lump-sum distributions), if any. Credits shall be allowed against net tax in the following order:(1) Credits that do not contain carryover or refundable provisions, except those described in paragraphs (4) and (5).(2) Credits that contain carryover provisions but do not contain refundable provisions, except for those that are allowed to reduce net tax below the tentative minimum tax, as defined by Section 17062.(3) Credits that contain both carryover and refundable provisions.(4) The minimum tax credit allowed by Section 17063 (relating to the alternative minimum tax).(5) Credits (A) For taxable years beginning on or after January 1, 2002, and before January 1, 2022, credits that are allowed to reduce net tax below the tentative minimum tax, as defined by Section 17062.(B) For taxable years beginning on or after January 1, 2022, credits that are allowed to reduce net tax below the tentative minimum tax, as defined by Section 17062, except the credit described in paragraph (7).(6) Credits for taxes paid to other states allowed by Chapter 12 (commencing with Section 18001).(7) For taxable years beginning on or after January 1, 2022, the credit allowed by Section 17052.10 (relating to the elective tax under the Small Business Relief Act).(7)(8) Credits that contain refundable provisions but do not contain carryover provisions.The order within each paragraph shall be determined by the Franchise Tax Board.(b) Notwithstanding the provisions of Sections 17061 (relating to refunds pursuant to the Unemployment Insurance Code) and 19002 (relating to tax withholding), the credits provided in those sections shall be allowed in the order provided in paragraph (6) of subdivision (a).(c) (1) Notwithstanding any other provision of this part, no tax credit shall reduce the tax imposed under Section 17041 or 17048 plus the tax imposed under Section 17504 (relating to the separate tax on lump-sum distributions) below the tentative minimum tax, as defined by Section 17062, except the following credits:(A) The credit allowed by former Section 17052.2 (relating to teacher retention tax credit). credit, repealed on August 24, 2007).(B) The credit allowed by former Section 17052.4 (relating to solar energy). energy, repealed on December 1, 1989).(C) The credit allowed by former Section 17052.5 (relating to solar energy, repealed on January 1, 1987).(D) The credit allowed by former Section 17052.5 (relating to solar energy, repealed on December 1, 1994).(E) The credit allowed by Section 17052.12 (relating to research expenses).(F) The credit allowed by former Section 17052.13 (relating to sales and use tax credit). credit, repealed on January 1, 1997).(G) The credit allowed by former Section 17052.15 (relating to Los Angeles Revitalization Zone sales tax credit). credit, repealed on December 1, 1998).(H) The credit allowed by Section 17052.25 (relating to the adoption costs credit).(I) The credit allowed by Section 17053.5 (relating to the renters credit).(J) The credit allowed by former Section 17053.8 (relating to enterprise zone hiring credit). credit, repealed on October 3, 1997).(K) The credit allowed by former Section 17053.10 (relating to Los Angeles Revitalization Zone hiring credit). credit, repealed on December 1, 1998).(L) The credit allowed by former Section 17053.11 (relating to program area hiring credit). credit, repealed on January 1, 1997).(M) For each taxable year beginning on or after January 1, 1994, the credit allowed by former Section 17053.17 (relating to Los Angeles Revitalization Zone hiring credit). credit, repealed on December 1, 1998).(N) The credit allowed by former Section 17053.33 (relating to targeted tax area sales or use tax credit). credit, repealed on December 1, 2015).(O) The credit allowed by former Section 17053.34 (relating to targeted tax area hiring credit). credit, repealed on December 1, 2019).(P) The credit allowed by former Section 17053.49 (relating to qualified property). property, repealed on January 1, 2004).(Q) The credit allowed by former Section 17053.70 (relating to enterprise zone sales or use tax credit). credit, repealed on December 1, 2015).(R) The credit allowed by former Section 17053.74 (relating to enterprise zone hiring credit). credit, repealed on December 1, 2019).(S) The credit allowed by Section 17054 (relating to credits for personal exemption).(T) The credit allowed by Section 17054.5 (relating to the credits for a qualified joint custody head of household and a qualified taxpayer with a dependent parent).(U) The credit allowed by Section 17054.7 (relating to the credit for a senior head of household).(V) The credit allowed by former Section 17057 (relating to clinical testing expenses). expenses, repealed on December 1, 1993).(W) The credit allowed by Section 17058 (relating to low-income housing).(X) For taxable years beginning on or after January 1, 2014, the credit allowed by Section 17059.2 (relating to GO-Biz California Competes Credit).(Y) The credit allowed by Section 17061 (relating to refunds pursuant to the Unemployment Insurance Code).(Z) Credits for taxes paid to other states allowed by Chapter 12 (commencing with Section 18001).(AA) The credit allowed by Section 19002 (relating to tax withholding).(AB) For taxable years beginning on or after January 1, 2014, the credit allowed by former Section 17053.86 (relating to the College Access Tax Credit Fund). Fund, repealed on December 1, 2017).(AC) For taxable years beginning on or after January 1, 2017, the credit allowed by Section 17053.87 (relating to the College Access Tax Credit Fund).(AD) For taxable years beginning on or after January 1, 2021, the credit allowed by Section 17052.10 (relating to the elective tax under the Small Business Relief Act).(2) Any credit that is partially or totally denied under paragraph (1) shall be allowed to be carried over and applied to the net tax in succeeding taxable years, if the provisions relating to that credit include a provision to allow a carryover when that credit exceeds the net tax.(d) Unless otherwise provided, any remaining carryover of a credit allowed by a section that has been repealed or made inoperative shall continue to be allowed to be carried over under the provisions of that section as it read immediately before being repealed or becoming inoperative.(e) (1) Unless otherwise provided, if two or more taxpayers (other than spouses) share in costs that would be eligible for a tax credit allowed under this part, each taxpayer shall be eligible to receive the tax credit in proportion to his or her the taxpayers respective share of the costs paid or incurred.(2) In the case of a partnership, the credit shall be allocated among the partners pursuant to a written partnership agreement in accordance with Section 704 of the Internal Revenue Code, relating to partners distributive share.(3) In the case of spouses who file separate returns, the credit may be taken by either or equally divided between them.(f) Unless otherwise provided, in the case of a partnership, any credit allowed by this part shall be computed at the partnership level, and any limitation on the expenses qualifying for the credit or limitation upon the amount of the credit shall be applied to the partnership and to each partner.(g) (1) With respect to any taxpayer that directly or indirectly owns an interest in a business entity that is disregarded for tax purposes pursuant to Section 23038 and any regulations thereunder, the amount of any credit or credit carryforward allowable for any taxable year attributable to the disregarded business entity shall be limited in accordance with paragraphs (2) and (3).(2) The amount of any credit otherwise allowed under this part, including any credit carryover from prior years, that may be applied to reduce the taxpayers net tax, as defined in subdivision (a), for the taxable year shall be limited to an amount equal to the excess of the taxpayers regular tax (as defined in Section 17062), determined by including income attributable to the disregarded business entity that generated the credit or credit carryover, over the taxpayers regular tax (as defined in Section 17062), determined by excluding the income attributable to that disregarded business entity. A credit shall not be allowed if the taxpayers regular tax (as defined in Section 17062), determined by including the income attributable to the disregarded business entity, is less than the taxpayers regular tax (as defined in Section 17062), determined by excluding the income attributable to the disregarded business entity.(3) If the amount of a credit allowed pursuant to the section establishing the credit exceeds the amount allowable under this subdivision in any taxable year, the excess amount may be carried over to subsequent taxable years pursuant to subdivisions (c) and (d).(h) (1) Unless otherwise specifically provided, in the case of a taxpayer that is a partner or shareholder of an eligible pass-thru entity described in paragraph (2), any credit passed through to the taxpayer in the taxpayers first taxable year beginning on or after the date the credit is no longer operative may be claimed by the taxpayer in that taxable year, notwithstanding the repeal of the statute authorizing the credit before the close of that taxable year.(2) For purposes of this subdivision, eligible pass-thru entity means any partnership or S corporation that files its return on a fiscal year basis pursuant to Section 18566, and that is entitled to a credit pursuant to this part for the taxable year that begins during the last year the credit is operative.(3) This subdivision applies to credits that become inoperative on or after the operative date of the act adding this subdivision. January 1, 2002.(i) The amendments made to this section by the act adding this subdivision shall apply as follows:(1) The amendments to subdivisions (a), (e), and (h) shall be operative for taxable years beginning on or after January 1, 2022.(2) The amendments to subdivision (c) shall be operative for taxable years beginning on or after January 1, 2021.SEC. 7. Section 17039.3 of the Revenue and Taxation Code is amended to read:17039.3. (a) Notwithstanding any provision of this part or Part 10.2 (commencing with Section 18401) to the contrary, for taxpayers not required to be included in a combined report under Section 25101 or 25110, or taxpayers not authorized to be included in a combined report under Section 25101.15, for each taxable year beginning on or after January 1, 2020, and before January 1, 2023, 2022, the total of all business credits otherwise allowable under any provision of Chapter 2 (commencing with Section 17041), including the carryover of any business credit under a former provision of that chapter, for the taxable year shall not reduce the net tax, as defined in Section 17039, by more than five million dollars ($5,000,000).(b) Notwithstanding any provision of this part or Part 10.2 (commencing with Section 18401) to the contrary, for taxpayers required to be included in a combined report under Section 25101 or 25110, or taxpayers authorized to be included in a combined report under Section 25101.15, for each taxable year beginning on or after January 1, 2020, and before January 1, 2023, 2022, the total of all business credits otherwise allowable under any provision of Chapter 2 (commencing with Section 17041), including the carryover of any business credit under a former provision of that chapter, by all members of the combined report shall not reduce the aggregate amount of tax, as defined in Section 23036, of all members of the combined report by more than five million dollars ($5,000,000).(c) For purposes of this section, business credit means a credit allowable under any provision of Chapter 2 (commencing with Section 17041) other than the following credits:(1) The credit allowed by Section 17052 (relating to credit for earned income).(2) The credit allowed by Section 17052.1 (relating to credit for young child).(3) The credit allowed by Section 17052.6 (relating to credit for household and dependent care).(4) The credit allowed by Section 17052.25 (relating to credit for adoption costs).(5) The credit allowed by Section 17053.5 (relating to renters tax credit).(6) The credit allowed by Section 17054 (relating to credit for personal exemption).(7) The credit allowed by Section 17054.5 (relating to credit for qualified joint custody head of household and a qualified taxpayer with a dependent parent).(8) The credit allowed by Section 17054.7 (relating to credit for qualified senior head of household).(9) The credit allowed by Section 17058 (relating to credit for low-income housing).(10) The credit allowed by Section 17061 (relating to refunds pursuant to the Unemployment Insurance Code).(d) Any amounts included in an election pursuant to Section 6902.5, relating to an irrevocable election to apply credit amounts under Section 17053.85, 17053.95, 17053.98, 23685, 23695, or 23698 against qualified sales and use tax, as defined in Section 6902.5, are not included in the five-million-dollar ($5,000,000) limitation set forth in subdivision (a) or (b).(e) The amount of any credit otherwise allowable for the taxable year under Section 17039 that is not allowed due to application of this section shall remain a credit carryover amount under this part.(f) The carryover period for any credit that is not allowed due to the application of this section shall be increased by the number of taxable years the credit or any portion thereof was not allowed.(g) Notwithstanding anything to the contrary in this part or Part 10.2 (commencing with Section 18401), the credits listed in subdivision (c) shall be applied after any business credits, as limited by subdivision (a) or (b), are applied.(h) Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code does not apply to any standard, criterion, procedure, determination, rule, notice, or guideline established or issued by the Franchise Tax Board pursuant to this section.(i) The amendments made to this section by the act adding this subdivision shall be operative for taxable years beginning on or after January 1, 2022.SEC. 8. Section 17052.10 of the Revenue and Taxation Code is amended to read:17052.10. (a) For taxable years beginning on or after January 1, 2021, and before January 1, 2026, there shall be allowed to a qualified taxpayer a credit against the net tax, as defined in Section 17039, in an amount equal to the qualified amount.(b) For purposes of this section:(1) Electing qualified entity means a qualified entity, as defined by Section 19902, that has elected to pay the elective tax under Part 10.4 (commencing with Section 19900).(2) Qualified amount means an amount equal to 9.3 percent of the sum of the qualified taxpayers guaranteed payments as defined by Section 707(c) of the Internal Revenue Code, relating to guaranteed payments, and the qualified taxpayers pro rata share or distributive share, as applicable, of income, as determined under this part and Part 11 (commencing with Section 23001), subject to tax under this part included in qualified net income income, as defined in Section 19900, subject to the election made by an electing qualified entity under Part 10.4 (commencing with Section 19900).(3) Qualified taxpayer means: (3)(A)Qualified taxpayer means a(A) A taxpayer, as defined in Section 17004, excluding partnerships, that is a partner, shareholder, or member of an electing qualified entity that consented to have the sum of their guaranteed payments and pro rata share or distributive share of income, as determined under Part 10 (commencing with Section 17001) this part and Part 11 (commencing with Section 23001), subject to tax under this part included in the qualified net income income, as defined in Section 19900, of the electing qualified entity.(B) Qualified taxpayer does not include a business entity that is disregarded for federal tax purposes, as described in Section 23038, or its partners or members.(C) Subparagraph (B) shall not apply to a limited liability company that is disregarded for federal tax purposes, as described in Section 23038, and meets both of the following:(i) Is owned by a taxpayer, as defined in Section 17004, excluding partnerships, that consented to have the sum of their guaranteed payments and pro rata share or distributive share of income, as determined under this part and Part 11 (commencing with Section 23001), subject to tax under this part included in the qualified net income, as defined in Section 19900, of the electing qualified entity.(ii) Is a partner, shareholder, or member of an electing qualified entity.(c) In the case where the credit allowed by this section exceeds the net tax, the excess may be carried over to reduce the net tax in the following taxable year, and succeeding four years, if necessary, until the credit is exhausted.(d) (1) Any disallowance of a credit under this section due to any of the following conditions shall be treated as a mathematical error appearing on the return:(A) Timely payment was not made under subdivision (b) of Section 19904.(B) Payments made for the taxable year exceed the elective tax computed under Part 10.4 (commencing with Section 19900).(C) No election was made or allowed under Part 10.4 (commencing with Section 19900).(2) Any amount of tax resulting from such disallowance may be assessed by the Franchise Tax Board in the same manner as provided by Section 19051.(e) (1) The Franchise Tax Board may adopt regulations that are necessary or appropriate to implement this section.(2) Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code shall not apply to any regulation, rule, guideline, or procedure prescribed by the Franchise Tax Board pursuant to this section.(f) For the purposes of complying with Section 41, the Legislature finds and declares that the goal of this tax credit is to provide tax relief to small businesses facing unprecedented economic hurdles due to COVID-19.(g) The amendments made to this section by the act adding this subdivision shall apply for taxable years beginning on or after January 1, 2021, and before January 1, 2026.(g)(h) This section shall remain in effect only until December 1, 2026, and as of that date is repealed.SEC. 9. Section 17131.16 is added to the Revenue and Taxation Code, to read:17131.16. (a) For taxable years beginning on or after January 1, 2021, and before January 1, 2026, gross income does not include a bill credit or credits received by a customer from a community water system or wastewater treatment provider pursuant to the Water and Wastewater System Payments Under the American Rescue Plan Act of 2021 (Chapter 4.7 (commencing with Section 116773) of Part 12 of Division 104 of the Health and Safety Code). (b) This section shall remain in effect only until December 1, 2026, and as of that date is repealed.SEC. 10. Section 17131.17 is added to the Revenue and Taxation Code, to read:17131.17. (a) For taxable years beginning on or after January 1, 2021, and before January 1, 2026, gross income does not include a bill credit or credits received by a customer from a utility applicant under the California Arrearage Payment Program (CAPP), pursuant to the California Arrearage Payment Program Under the American Rescue Plan Act of 2021 (Article 12 (commencing with Section 16429.5) of Chapter 2 of Part 2 of Division 4 of Title 2 of the Government Code).(b) This section shall remain in effect only until December 1, 2026, and as of that date is repealed.SEC. 11. Section 17158.2 is added to the Revenue and Taxation Code, to read:17158.2. (a) For taxable years beginning on or after January 1, 2020, gross income does not include any amount awarded as a restaurant revitalization grant pursuant to Section 9009c of Title 15 of the United States Code.(b) (1) Notwithstanding Section 17280, for taxable years beginning on or after January 1, 2020, paragraph (2) of Section 9673 of the American Rescue Plan Act of 2021 (Public Law 117-2) shall apply, except as provided.(2) Paragraph (2) of Section 9673 of the American Rescue Plan Act of 2021 (Public Law 117-2) is modified by substituting the phrase provided by paragraph (1) with provided by this section.(c) The Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) shall not apply to any standard, criterion, procedure, determination, rule, notice, guideline, or any other guidance established or issued by the Franchise Tax Board pursuant to this section.(d) This section shall be operative for taxable years beginning on or after January 1, 2020.SEC. 12. Section 17158.3 is added to the Revenue and Taxation Code, to read:17158.3. (a) For taxable years beginning on or after January 1, 2019, gross income does not include any amount awarded as a shuttered venue operator grant pursuant to Section 9009a of Title 15 of the United States Code.(b) (1) Notwithstanding Section 17280, for taxable years beginning on or after January 1, 2019, subsection (d) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall apply, except as provided.(2) Subsection (d) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) is modified by substituting the phrase For purposes of the Internal Revenue Code of 1986 with For purposes of this part.(3) Paragraphs (2) and (3) of subsection (d) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall not apply to an ineligible entity.(c) For purposes of this section:(1) Ineligible entity means a taxpayer that either:(A) Is a publicly-traded company.(B) Does not meet the reduction from the gross receipts requirements of Section 636(a)(37)(A)(iv)(bb) of Title 15 of the United States Code, as added by Section 311 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260).(2) Publicly-traded company means a publicly-traded entity as described in Section 342 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260).(d) This section shall be operative for taxable years beginning on or after January 1, 2019.SEC. 13. Section 17276.23 of the Revenue and Taxation Code is amended to read:17276.23. (a) Notwithstanding Sections 17276, 17276.1, 17276.4, 17276.7, and 17276.22, former Sections 17276.2, 17276.5, 17276.6, and 17276.20, and Section 172 of the Internal Revenue Code, a net operating loss deduction shall not be allowed for any taxable year beginning on or after January 1, 2020, and before January 1, 2023. 2022.(b) For any net operating loss or carryover of a net operating loss for which a deduction is denied by subdivision (a), the carryover period under Section 172 of the Internal Revenue Code shall be extended as follows:(1) By one year, for losses incurred in taxable years beginning on or after January 1, 2021, and before January 1, 2022.(2) By two years, for losses incurred in taxable years beginning on or after January 1, 2020, and before January 1, 2021.(3) By three years, for losses incurred in taxable years beginning before January 1, 2020.(c) This section shall not apply as follows:(1) For a taxable year beginning on or after January 1, 2020, and before January 1, 2023, 2022, this section shall not apply to a taxpayer with a net business income of less than one million dollars ($1,000,000) for the taxable year.(2) For a taxable year beginning on or after January 1, 2020, and before January 1, 2023, 2022, this section shall not apply to a taxpayer with a modified adjusted gross income of less than one million dollars ($1,000,000) for the taxable year.(d) For purposes of this section:(1) Business income means any of the following:(A) Income from a trade or business, whether conducted by the taxpayer or by a passthrough entity owned directly or indirectly by the taxpayer.(B) Income from rental activity.(C) Income attributable to a farming business.(2) Modified adjusted gross income means the amount described in paragraph (2) of subdivision (h) of Section 17024.5, determined without regard to the deduction allowed under Section 172 of the Internal Revenue Code, relating to net operating loss deduction.(3) Passthrough entity means a partnership or an S corporation.(e) The amendments made to this section by the act adding this subdivision shall be operative for taxable years beginning on or after January 1, 2022.SEC. 14. Section 19900 of the Revenue and Taxation Code is amended to read:19900. (a) (1) For taxable years beginning on or after January 1, 2021, and before January 1, 2026, a qualified entity doing business in this state, as defined in Section 23101, and that is required to file a return under Section 18633, 18633.5, or subdivision (a) of Section 18601, may elect to annually pay an elective tax according to or measured by its qualified net income, defined in paragraph (2), computed at the rate of 9.3 percent for the taxable year for which the election is made.(2) For purposes of this section, the qualified net income of a qualified entity means the sum of the pro rata share or distributive share of income income, and any guaranteed payments, as described by Section 707(c) of the Internal Revenue Code, relating to guaranteed payments, subject to tax under Part 10 (commencing with Section 17001) for the taxable year of each qualified taxpayer, as defined in Section 17052.10.(b) (1) The elective tax authorized by this part shall be in addition to, and not in place of, any other tax or fee required to be paid under Part 10 (commencing with Section 17001) or Part 11 (commencing with Section 23001).(2) The elective tax described in this part shall be assessed and collected under Part 10.2 (commencing with Section 18401).(3) Unless the context otherwise requires, the definitions set forth in this part and those in Part 10 (commencing with Section 17001), Part 10.2 (commencing with Section 18401), or Part 11 (commencing with Section 23001) shall apply.(c) (1) The qualified entity may include in its qualified net income the pro rata share or distributive share of the income of any of its partners, shareholders, or members upon their consent. A partner, shareholder, or member that does not consent does not prevent the qualified entity from making an election to pay the elective tax.(2) All partners, shareholders, and members of the qualified entity shall be bound by the election made under this part for the taxable year.(d) The election shall be irrevocable and shall be made on an original, timely filed return required under Part 10.2 (commencing with Section 18401) for the taxable year of the election in the form and manner as prescribed by the Franchise Tax Board.(e) The amendments made to this section by the act adding this subdivision shall apply for taxable years beginning on or after January 1, 2021, and before January 1, 2026.SEC. 15. Section 19902 of the Revenue and Taxation Code is amended to read:19902. (a) For purposes of this part, qualified entity means an entity that meets both of the following requirements for the taxable year:(1) The entity is taxed as a partnership or S corporation.(2) The entitys partners, shareholders, or members in that taxable year are exclusively corporations, as defined in Section 23038, or taxpayers as defined in Section 17004, excluding partnerships. 17004.(b) Qualified entity shall not include any of the following:(1) Publicly traded partnerships, as defined in Section 7704 of the Internal Revenue Code, as it read on January 1, 2021, as modified by Section 17008.5.(2) An entity that is permitted or required to be in a combined reporting group, as defined in paragraph (3) of subdivision (b) of Section 25106.5 of Title 18 of the California Code of Regulations.(c) The amendments made to this section by the act adding this subdivision shall apply for taxable years beginning on or after January 1, 2021, and before January 1, 2026.SEC. 16. Section 23036.3 of the Revenue and Taxation Code is amended to read:23036.3. (a) Notwithstanding any provision of this part or Part 10.2 (commencing with Section 18401) to the contrary, except as provided in subdivision (d), for taxpayers not required to be included in a combined report under Section 25101 or 25110, or taxpayers not authorized to be included in a combined report under Section 25101.15, for each taxable year beginning on or after January 1, 2020, and before January 1, 2023, 2022, the total of all credits otherwise allowable under any provision of Chapter 3.5 (commencing with Section 23604) including the carryover of any credit under a former provision of that chapter, for the taxable year shall not reduce the tax, as defined in Section 23036, by more than five million dollars ($5,000,000).(b) Notwithstanding any provision of this part or Part 10.2 (commencing with Section 18401) to the contrary, except as provided in subdivision (d), for taxpayers required to be included in a combined report under Section 25101 or 25110, or taxpayers authorized to be included in a combined report under Section 25101.15, for each taxable year beginning on or after January 1, 2020, and before January 1, 2023, 2022, the total of all credits otherwise allowable under any provision of Chapter 3.5 (commencing with Section 23604), including the carryover of any credit under a former provision of that chapter, by all members of the combined report shall not reduce the aggregate amount of tax, as defined in Section 23036, of all members of the combined report by more than five-million-dollars ($5,000,000).(c) Any amounts included in an election pursuant to Section 6902.5, relating to an irrevocable election to apply credit amounts under Section 17053.85, 17053.95, 17053.98, 23685, 23695, or 23698 against qualified sales and use tax, as defined in Section 6902.5, are not included in the five million dollar ($5,000,000) limitation set forth in subdivision (a) or (b).(d) The limitation under subdivision (a) or (b) shall not apply to the credit allowed by Section 23610.5 (relating to credit for low-income housing).(e) The amount of any credit otherwise allowable for the taxable year under Section 23036 that is not allowed due to the application of this section shall remain a credit carryover amount under this part.(f) The carryover period for any credit that is not allowed due to the application of this section shall be increased by the number of taxable years the credit or any portion thereof was not allowed.(g) Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code does not apply to any standard, criterion, procedure, determination, rule, notice, or guideline established or issued by the Franchise Tax Board pursuant to this section.(h) The amendments made to this section by the act adding this subdivision shall be operative for taxable years beginning on or after January 1, 2022.SEC. 17. Section 24308.2 is added to the Revenue and Taxation Code, to read:24308.2. (a) For taxable years beginning on or after January 1, 2020, gross income does not include any amount awarded as a restaurant revitalization grant pursuant to Section 9009c of Title 15 of the United States Code.(b) (1) Notwithstanding Section 24425, for taxable years beginning on or after January 1, 2020, paragraph (2) of Section 9673 of the American Rescue Plan Act of 2021 (Public Law 117-2) shall apply, except as provided.(2) Paragraph (2) of Section 9673 of the American Rescue Plan Act of 2021 (Public Law 117-2) is modified by substituting the phrase provided by paragraph (1) with provided by this section.(c) The Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) shall not apply to any standard, criterion, procedure, determination, rule, notice, guideline, or any other guidance established or issued by the Franchise Tax Board pursuant to this section.(d) This section shall be operative for taxable years beginning on or after January 1, 2020.SEC. 18. Section 24308.3 is added to the Revenue and Taxation Code, to read:24308.3. (a) For taxable years beginning on or after January 1, 2019, gross income does not include any amount awarded as a shuttered venue operator grant pursuant to Section 9009a of Title 15 of the United States Code.(b) (1) Notwithstanding Section 24425, for taxable years beginning on or after January 1, 2019, subsection (d) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall apply, except as provided.(2) Subsection (d) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) is modified by substituting the phrase For purposes of the Internal Revenue Code of 1986 with For purposes of this part.(3) Paragraphs (2) and (3) of subsection (d) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall not apply to an ineligible entity.(c) For purposes of this section:(1) Ineligible entity means a taxpayer that either:(A) Is a publicly-traded company.(B) Does not meet the reduction from the gross receipts requirements of Section 636(a)(37)(A)(iv)(bb) of Title 15 of the United States Code, as added by Section 311 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260).(2) Publicly-traded company means a publicly-traded entity as described in Section 342 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260).(d) This section shall be operative for taxable years beginning on or after January 1, 2019.SEC. 19. Section 24308.4 is added to the Revenue and Taxation Code, to read:24308.4. (a) For taxable years beginning on or after January 1, 2021, and before January 1, 2026, gross income does not include a bill credit or credits received by a customer from a community water system or wastewater treatment provider pursuant to the Water and Wastewater System Payments Under the American Rescue Plan Act of 2021 (Chapter 4.7 (commencing with Section 116773) of Part 12 of Division 104 of the Health and Safety Code). (b) This section shall remain in effect only until December 1, 2026, and as of that date is repealed.SEC. 20. Section 24308.5 is added to the Revenue and Taxation Code, to read:24308.5. (a) For taxable years beginning on or after January 1, 2021, and before January 1, 2026, gross income does not include a bill credit or credits received by a customer from a utility applicant pursuant to the California Arrearage Payment Program Under the American Rescue Plan Act of 2021 (Article 12 (commencing with Section 16429.5) of Chapter 2 of Part 2 of Division 4 of Title 2 of the Government Code).(b) This section shall remain in effect only until December 1, 2026, and as of that date is repealed.SEC. 21. Section 24416.23 of the Revenue and Taxation Code is amended to read:24416.23. (a) Notwithstanding Sections 24416, 24416.1, 24416.4, 24416.7, and 24416.22, former Sections 24416.2, 24416.5, 24416.6, and 24416.20, and Section 172 of the Internal Revenue Code, a net operating loss deduction shall not be allowed for any taxable year beginning on or after January 1, 2020, and before January 1, 2023. 2022.(b) For any net operating loss or carryover of a net operating loss for which a deduction is denied by subdivision (a), the carryover period under Section 172 of the Internal Revenue Code shall be extended as follows:(1) By one year, for losses incurred in taxable years beginning on or after January 1, 2021, and before January 1, 2022.(2) By two years, for losses incurred in taxable years beginning on or after January 1, 2020, and before January 1, 2021.(3) By three years, for losses incurred in taxable years beginning before January 1, 2020.(c) The disallowance of any net operating loss deduction for any taxable year beginning on or after January 1, 2020, and before January 1, 2023, 2022, pursuant to subdivision (a) shall not apply to a taxpayer with income subject to tax under this part of less than one million dollars ($1,000,000) for the taxable year.(d) The amendments made to this section by the act adding this subdivision shall be operative for taxable years beginning on or after January 1, 2022.SEC. 22. For the purposes of complying with Section 41 of the Revenue and Taxation Code, with respect to Sections 17158.2, 17158.3, 24308.2, and 24308.3 of the Revenue and Taxation Code, as added by this act (hereafter the deductions, exclusions, tax basis, and other attributes), the Legislature finds and declares all of the following:(a) The specific goal, purpose, and objective that the deductions, exclusions, tax basis, and other attributes will achieve is to provide assistance to shuttered venues and restaurants operating in the state that have been harmed economically by the COVID-19 pandemic.(b) Detailed performance indicators for the Legislature to use in determining whether the deductions, exclusions, tax basis, and other attributes meet the goal, purpose, and objective described in subdivision (a) is the extent to which the businesses that received a shuttered venue operator grant or restaurant revitalization grant and subsequently used the deductions, exclusions, tax basis, and other attributes reflect the industries, regions, and businesses by type of ownership that were most substantially harmed by the COVID-19 pandemic, and whether any particular industries, regions, or businesses by type of ownership in the business community were not able to receive a shuttered venue operator grant or restaurant revitalization grant and the deductions, exclusions, tax basis, and other attributes.(c) The Legislative Analysts Office shall collaborate with the Franchise Tax Board, as well as reviewing other publicly available data, to analyze whether the shuttered venue operator grants and restaurant revitalization grant and the tax benefits of the deductions, exclusions, tax basis, and other attributes were distributed evenly over regions and businesses by type of ownership harmed by the COVID-19 pandemic and report by January 1, 2024, and in compliance with Section 9795 of the Government Code, to the Legislature.(d) The data collection requirements for determining whether the deductions, exclusions, tax basis, and other attributes meet, or fail to meet, the specific goal, purpose, and objective described in subdivision (a) are:(1) To assist the Legislature in determining whether the deductions, exclusions, tax basis, and other attributes meet the specific goal, purpose, and objective described in subdivision (a), and in order to carry out its duties pursuant to subdivision (c), the Legislative Analysts Office may request information from the Franchise Tax Board.(2) (A) The Franchise Tax Board shall provide any available data requested by the Legislative Analysts Office pursuant to this subdivision.(B) The disclosure provisions of this paragraph shall be treated as an exception to Section 19542 under Article 2 (commencing with Section 19542) of Chapter 7 of Part 10.2 of Division 2 of the Revenue and Taxation Code.SEC. 23. (a) For the purposes of complying with Section 41 of the Revenue and Taxation Code, with respect to Sections 17131.16 and 24308.4 of the Revenue and Taxation Code, as added by this act, the Legislature finds and declares that the purpose of the exclusion allowed by Sections 17131.16 and 24308.4 of the Revenue and Taxation Code is to provide financial relief to California businesses and residents, including, in particular, low- and middle-income residents, to alleviate, in part, the adverse impacts of the economic disruptions and hardships resulting from the COVID-19 emergency.(b) (1) For the purpose of this subdivision, act means the Water and Wastewater System Payments Under the American Rescue Plan Act of 2021 (Chapter 4.7 (commencing with Section 116773) of Part 12 of Division 104 of the Health and Safety Code).(2) In order to provide information on the exclusion allowed by Sections 17131.16 and 24308.3 of the Revenue and Taxation Code, the State Water Resources Control Board shall prepare a written report that includes all of the following:(A) The total number of households that received water system bill credits pursuant to this act.(B) The total number of commercial customers that received water system bill credits pursuant to this act.(C) The total number of households that received wastewater system bill credits pursuant to this act.(D) The total number of commercial customers that received wastewater system bill credits pursuant to this act.SEC. 24. (a) For the purposes of complying with Section 41 of the Revenue and Taxation Code, with respect to Sections 17131.17 and 24308.5 of the Revenue and Taxation Code, as added by this act, the Legislature finds and declares that the purpose of the exclusion allowed by Sections 17131.17 and 24308.5 of the Revenue and Taxation Code is to provide financial relief to California businesses and residents, including, in particular, low- and middle-income residents, to alleviate, in part, the adverse impacts of the economic disruptions and hardships resulting from the COVID-19 emergency.(b) The reporting by Department of Community Services and Development to the Legislature required by subdivision (j) of Section 16429.5 of the Government Code shall constitute reporting for the purposes of complying with Section 41 of the Revenue and Taxation Code.SEC. 25. For the purposes of complying with Section 41 of the Revenue and Taxation Code, with respect to Sections 6902.5, 12209, 17039.3, 17276.23, 23036.3, and 24416.23 of the Revenue and Taxation Code, as amended by this act, the Legislature hereby finds and declares that this act merely ends the temporary limitation or suspension of existing tax expenditures one year earlier than currently provided and does not contain additional information related to the goals, purposes, and objectives of those tax expenditures. SEC. 26. For the purposes of complying with Section 41 of the Revenue and Taxation Code, the Legislature finds and declares that the goal of the tax expenditures in Sections 17039 and 17052.10, as amended by this act, is to provide tax relief to small businesses facing unprecedented economic hurdles due to COVID-19. SEC. 27. (a) The Legislature hereby finds and declares that the tax credits authorized by the amendments to Section 6902.5 of the Revenue and Taxation Code made by this bill serve the public purpose of providing equitable treatment to businesses that claim tax credits under Part 1 of the Revenue and Taxation Code as those that claim tax credits under Parts 10 and 11 of the Revenue and Taxation Code and do not constitute a gift of public funds within the meaning of Section 6 of Article XVI of the California Constitution.(b) The Legislature hereby finds and declares that the exclusions and other tax benefits authorized by Sections 17158.2, 17158.3, 24308.2, and 24308.3 of the Revenue and Taxation Code made by this bill serve the public purpose of securing the financial condition of businesses that were economically harmed by the COVID-19 pandemic and do not constitute a gift of public funds within the meaning of Section 6 of Article XVI of the California Constitution.(c) The Legislature hereby finds and declares that moneys appropriated, pursuant to Section 8654.2 of the Government Code, as added by this act, to the California Small Business COVID-19 Relief Grant Program established under Article 8 (commencing with Section 12100.80) of Chapter 1.6 of Part 2 of Division 3 of Title 2 of the Government Code serves the public purpose of preventing revenue decreases, closures, and higher unemployment across the state due to the COVID-19 pandemic, and does not constitute a gift of public funds within the meaning of Section 6 of Article XVI of the California Constitution. SEC. 28. This act is a bill providing for appropriations related to the Budget Bill within the meaning of subdivision (e) of Section 12 of Article IV of the California Constitution, has been identified as related to the budget in the Budget Bill, and shall take effect immediately.
	56	+	The people of the State of California do enact as follows:SECTION 1. Section 3056 of the Penal Code is amended to read:3056. (a) Prisoners on parole shall remain under the supervision of the department but shall not be returned to prison except as provided in subdivision (b) or as provided by subdivision (c) of Section 3000.09. A parolee awaiting a parole revocation hearing may be housed in a county jail while awaiting revocation proceedings. If a parolee is housed in a county jail, he or she they shall be housed in the county in which he or she was they were arrested or the county in which a petition to revoke parole has been filed or, if there is no county jail in that county, in the housing facility with which that county has contracted to house jail inmates. Additionally, except as provided by subdivision (c) of Section 3000.09, upon revocation of parole, a parolee may be housed in a county jail for a maximum of 180 days per revocation. When housed in county facilities, parolees shall be under the sole legal custody and jurisdiction of local county facilities. A parolee shall remain under the sole legal custody and jurisdiction of the local county or local correctional administrator, even if placed in an alternative custody program in lieu of incarceration, including, but not limited to, work furlough and electronic home detention. When a parolee is under the legal custody and jurisdiction of a county facility awaiting parole revocation proceedings or upon revocation, he or she the parolee shall not be under the parole supervision or jurisdiction of the department. Unless otherwise serving a period of flash incarceration, whenever a parolee who is subject to this section has been arrested, with or without a warrant or the filing of a petition for revocation with the court, the court may order the release of the parolee from custody under any terms and conditions the court deems appropriate. When released from the county facility or county alternative custody program following a period of custody for revocation of parole or because no violation of parole is found, the parolee shall be returned to the parole supervision of the department for the duration of parole.(b) Inmates paroled pursuant to Section 3000.1 may be returned to prison following the revocation of parole by the Board of Parole Hearings until July 1, 2013, and thereafter by a court pursuant to Section 3000.08.(c) A Until July 1, 2021, a parolee who is subject to subdivision (a), but who is under 18 years of age, may be housed in a facility of the Division of Juvenile Facilities, Justice, Department of Corrections and Rehabilitation.SEC. 2. Section 208 of the Welfare and Institutions Code is amended to read:208. (a) When any person under 18 years of age is detained in or sentenced to any institution in which adults are confined, an adult facility, including a jail or other facility established for the purpose of confinement of adults, it shall be unlawful to permit such that person to come or remain in contact with such adults. adults confined there.(b) No A person who is a ward or dependent child of the juvenile court who is detained in or committed to any state hospital or other state facility shall not be permitted to come or remain in contact with any adult person who has been committed to any state hospital or other state facility as a mentally disordered sex offender under the provisions of Article 1 (commencing with Section 6300) of Chapter 2 of Part 2 of Division 6, or with any adult person who has been charged in an accusatory pleading with the commission of any sex offense for which registration of the convicted offender is required under Section 290 of the Penal Code and who has been committed to any state hospital or other state facility pursuant to Section 1026 or 1370 of the Penal Code.(c) As used in this section, contact does not include participation in supervised group therapy or other supervised treatment activities, participation in work furlough programs, or participation in hospital recreational activities which are directly supervised by employees of the hospital, so long as living arrangements are strictly segregated and all precautions are taken to prevent unauthorized associations.(d) This section shall be operative January 1, 1998.SEC. 3. Section 208.5 of the Welfare and Institutions Code is amended to read:208.5. (a) Notwithstanding any other law, any person whose case originated in juvenile court shall remain, if the person is held in secure detention, in a county juvenile facility until the person attains 25 years of age, except as provided in subdivisions (b) and (c) of this section and paragraph (4) of subdivision (a) of Section 731. A person whose case originated in juvenile court but who was sentenced in criminal court shall not serve their sentence in a juvenile facility, but if not otherwise excluded, may remain in the juvenile facility until transferred to serve their sentence in an adult facility. This section is not intended to authorize confinement in a juvenile facility where authority would not otherwise exist.(b) The probation department may petition the court to house a person who is 19 years of age or older in an adult facility, including a jail or other facility established for the purpose of confinement of adults.(c) Upon receipt of a petition to house a person who is 19 years of age or older in an adult facility, the court shall hold a hearing. There shall be a rebuttable presumption that the person will be retained in a juvenile facility. At the hearing, the court shall determine whether the person will be moved to an adult facility, and make written findings of its decision based on the totality of the following criteria:(1) The impact of being held in an adult facility on the physical and mental health and well-being of the person.(2) The benefits of continued programming at the juvenile facility and whether required education and other services called for in any juvenile court disposition or otherwise required by law or court order can be provided in the adult facility.(3) The capacity of the adult facility to separate younger and older people as needed and to provide them with safe and age-appropriate housing and program opportunities.(4) The capacity of the juvenile facility to provide needed separation of older from younger people given the youth currently housed in the facility.(5) Evidence demonstrating that the juvenile facility is unable to currently manage the persons needs without posing a significant danger to staff or other youth in the facility.(d) If a person who is 18 19 to 24 years of age, inclusive, is removed from a juvenile facility pursuant to this section, upon the motion of any party and a showing of changed circumstances, the court shall consider the criteria in subdivision (c) and determine whether the person should be housed at a juvenile facility.(e) A person who is 19 years of age or older and who has been committed to a county juvenile facility or a facility of a contracted entity shall remain in the facility and shall not be subject to a petition for transfer to an adult facility. This section is not intended to authorize or extend confinement in a juvenile facility where authority would not otherwise exist.SEC. 4. Section 607 of the Welfare and Institutions Code, as added by Section 24 of Chapter 337 of the Statutes of 2020, is amended to read:607. (a) The court may retain jurisdiction over a person who is found to be a ward or dependent child of the juvenile court until the ward or dependent child attains 21 years of age, except as provided in subdivisions (b), (c), and (d). (d), and (e).(b) The court may retain jurisdiction over a person who is found to be a person described in Section 602 by reason of the commission of an offense listed in subdivision (b) of Section 707, until that person attains 23 years of age, subject to the provisions of subdivision (c).(c) The court may retain jurisdiction over a person who is found to be a person described in Section 602 by reason of the commission of an offense listed in subdivision (b) of Section 707 until that person attains 25 years of age if the person, at the time of adjudication of a crime or crimes, would, in criminal court, have faced an aggregate sentence of seven years or more.(d) The court shall not discharge a person from its jurisdiction who has been committed to the Department of Corrections and Rehabilitation, Division of Juvenile Justice while the person remains under the jurisdiction of the Department of Corrections and Rehabilitation, Division of Juvenile Justice, including periods of extended control ordered pursuant to Section 1800.(e) The court may retain jurisdiction over a person described in Section 602 by reason of the commission of an offense listed in subdivision (b) of Section 707, who has been confined in a state hospital or other appropriate public or private mental health facility pursuant to Section 702.3 until that person attains 25 years of age, unless the court that committed the person finds, after notice and hearing, that the persons sanity has been restored.(f) The court may retain jurisdiction over a person while that person is the subject of a warrant for arrest issued pursuant to Section 663.(g) Notwithstanding subdivisions (b) and (d), (b), (c), and (e), a person who is committed by the juvenile court to the Department of Corrections and Rehabilitation, Division of Juvenile Justice on or after July 1, 2012, but before July 1, 2018, and who is found to be a person described in Section 602 by reason of the commission of an offense listed in subdivision (b) of Section 707 shall be discharged upon the expiration of a two-year period of control, or when the person attains 23 years of age, whichever occurs later, unless an order for further detention has been made by the committing court pursuant to Article 6 (commencing with Section 1800) of Chapter 1 of Division 2.5. This subdivision does not apply to a person who is committed to the Department of Corrections and Rehabilitation, Division of Juvenile Justice, or to a person who is confined in a state hospital or other appropriate public or private mental health facility, by a court prior to July 1, 2012, pursuant to subdivisions (b) and (d). (b), (c), and (e).(h) (1) Notwithstanding subdivision (f), (g), a person who is committed by the juvenile court to the Department of Corrections and Rehabilitation, Division of Juvenile Facilities, Justice, on or after July 1, 2018, and who is found to be a person described in Section 602 by reason of the commission of an offense listed in subdivision (c) of Section 290.008 of the Penal Code or subdivision (b) of Section 707 of this code, shall be discharged upon the expiration of a two-year period of control, or when the person attains 23 years of age, whichever occurs later, unless an order for further detention has been made by the committing court pursuant to Article 6 (commencing with Section 1800) of Chapter 1 of Division 2.5.(2) A person who, at the time of adjudication of a crime or crimes, would, in criminal court, have faced an aggregate sentence of seven years or more, shall be discharged upon the expiration of a two-year period of control, or when the person attains 25 years of age, whichever occurs later, unless an order for further detention has been made by the committing court pursuant to Article 6 (commencing with Section 1800) of Chapter 1 of Division 2.5.(3) This subdivision does not apply to a person who is committed to the Department of Corrections and Rehabilitation, Division of Juvenile Facilities, Justice, or to a person who is confined in a state hospital or other appropriate public or private mental health facility, by a court prior to July 1, 2018, as described in subdivision (f). (g).(i) The amendments to this section made by Chapter 342 of the Statutes of 2012 apply retroactively.(j) This section does not change the period of juvenile court jurisdiction for a person committed to the Division of Juvenile Facilities Justice prior to July 1, 2018.(k) This section shall become operative July 1, 2021.SEC. 5. Section 704 of the Welfare and Institutions Code is amended to read:704. (a) If the court has determined that a minor is a person described by Section 602, or if the court has determined that a minor is a person described by Section 601 and a supplemental petition for commitment of such the minor to the Youth Authority Division of Juvenile Justice has been filed pursuant to Section 777, and such the minor is otherwise eligible for commitment to the Youth Authority, Division of Juvenile Justice, the court, if it concludes that a disposition of the case in the best interest of the minor requires such observation and diagnosis as can be made at a diagnostic and treatment center of the Youth Authority, Division of Juvenile Justice, may continue the hearing and order that such the minor be placed temporarily in such a center for a period not to exceed 90 days, with the further provision in such order that the Director of the Youth Authority Division of Juvenile Justice report to the court its diagnosis and recommendations concerning the minor within the 90-day period.(b) The Director of Youth Authority the Division of Juvenile Justice shall, within the 90 days, cause the minor to be observed and examined and shall forward to the court his the diagnosis and recommendation concerning such the minors future care, supervision, and treatment.(c) The Youth Authority Division of Juvenile Justice shall accept such that person if there is in effect a contract made pursuant to Section 1752.1 and if it believes that the person can be materially benefited by such diagnostic and treatment services, and if the Director of the Youth Authority Division of Juvenile Justice certifies that staff and institutions are available. No such person shall A person shall not be transported to any facility under the jurisdiction of the Youth Authority Division of Juvenile Justice until the director has notified the referring court of the place to which said person is to be transported and the time at which he the person can be received.(d) The probation officer of the county in which an order is made placing a minor in a diagnostic and treatment center pursuant to this section, or any other peace officer designated by the court, shall execute the order placing such the minor in the center or returning him the minor therefrom to the court. The expense of such the probation officer or other peace officer incurred in executing such the order is a charge upon the county in which the court is situated.(e) This section shall become inoperative on July 1, 2021, and, as of January 1, 2022, is repealed.SEC. 6. Section 707.2 of the Welfare and Institutions Code is amended to read:707.2. (a) Prior to sentence and after considering a recommendation on the issue which shall be made by the probation department, the court of criminal jurisdiction may remand the minor to the custody of the Department of the Youth Authority Division of Juvenile Justice for a period not to exceed 90 days for the purpose of evaluation and report concerning his or her the minors amenability to training and treatment offered by the Department of the Youth Authority. Division of Juvenile Justice. If the court decides not to remand the minor to the custody of the Department of the Youth Authority, Division of Juvenile Justice, the court shall make a finding on the record that the amenability evaluation is not necessary. However, a court of criminal jurisdiction shall not sentence any minor who was under the age of 16 years 16 years of age when he or she the minor committed any criminal offense to the state prison unless he or she the minor has first been remanded to the custody of the Department of the Youth Authority Division of Juvenile Justice for evaluation and report pursuant to this section.The need to protect society, the nature and seriousness of the offense, the interests of justice, and the needs of the minor shall be the primary considerations in the courts determination of the appropriate disposition for the minor.(b) This section shall not apply where commitment to the Department of the Youth Authority Division of Juvenile Justice is prohibited pursuant to Section 1732.6.(c) This section shall become inoperative on July 1, 2021, and, as of January 1, 2022, is repealed.SEC. 7. Section 726 of the Welfare and Institutions Code is amended to read:726. (a) In all cases in which a minor is adjudged a ward or dependent child of the court, the court may limit the control to be exercised over the ward or dependent child by any parent or guardian and shall, in its order, clearly and specifically set forth all those limitations, but no ward or dependent child shall be taken from the physical custody of a parent or guardian, unless upon the hearing the court finds one of the following facts:(1) That the parent or guardian is incapable of providing or has failed or neglected to provide proper maintenance, training, and education for the minor.(2) That the minor has been tried on probation while in custody and has failed to reform.(3) That the welfare of the minor requires that custody be taken from the minors parent or guardian.(b) Whenever the court specifically limits the right of the parent or guardian to make educational or developmental services decisions for the minor, the court shall at the same time appoint a responsible adult to make educational or developmental services decisions for the child until one of the following occurs:(1) The minor reaches 18 years of age, unless the child chooses not to make educational or developmental services decisions for himself or herself, themselves, or is deemed by the court to be incompetent.(2) Another responsible adult is appointed to make educational or developmental services decisions for the minor pursuant to this section.(3) The right of the parent or guardian to make educational or developmental services decisions for the minor is fully restored.(4) A successor guardian or conservator is appointed.(5) The child is placed into a planned permanent living arrangement pursuant to paragraph (5) or (6) of subdivision (b) of Section 727.3, at which time, for educational decisionmaking, the foster parent, relative caretaker, or nonrelative extended family member, as defined in Section 362.7, has the right to represent the child in educational matters pursuant to Section 56055 of the Education Code, and for decisions relating to developmental services, unless the court specifies otherwise, the foster parent, relative caregiver, or nonrelative extended family member of the planned permanent living arrangement has the right to represent the child in matters related to developmental services.(c) An individual who would have a conflict of interest in representing the child, as specified under federal regulations, may not be appointed to make educational decisions. The limitations applicable to conflicts of interest for educational rights holders shall also apply to authorized representatives for developmental services decisions pursuant to subdivision (b) of Section 4701.6. For purposes of this section, an individual who would have a conflict of interest means a person having any interests that might restrict or bias his or her their ability to make educational or developmental services decisions, including, but not limited to, those conflicts of interest prohibited by Section 1126 of the Government Code, and the receipt of compensation or attorneys fees for the provision of services pursuant to this section. A foster parent may not be deemed to have a conflict of interest solely because he or she the foster parent receives compensation for the provision of services pursuant to this section.(1) If the court limits the parents educational rights pursuant to subdivision (a), the court shall determine whether there is a responsible adult who is a relative, nonrelative extended family member, or other adult known to the child and who is available and willing to serve as the childs educational representative before appointing an educational representative or surrogate who is not known to the child.If the court cannot identify a responsible adult who is known to the child and available to make educational decisions for the child and paragraphs (1) to (5), inclusive, of subdivision (b) do not apply, and the child has either been referred to the local educational agency for special education and related services or has a valid individualized education program, the court shall refer the child to the local educational agency for appointment of a surrogate parent pursuant to Section 7579.5 of the Government Code.(2) All educational and school placement decisions shall seek to ensure that the child is in the least restrictive educational programs and has access to the academic resources, services, and extracurricular and enrichment activities that are available to all pupils. In all instances, educational and school placement decisions shall be based on the best interests of the child. If an educational representative or surrogate is appointed for the child, the representative or surrogate shall meet with the child, shall investigate the childs educational needs and whether those needs are being met, and shall, before each review hearing held under Article 10 (commencing with Section 360), provide information and recommendations concerning the childs educational needs to the childs social worker, make written recommendations to the court, or attend the hearing and participate in those portions of the hearing that concern the childs education.(3) Nothing in this section in any way removes the obligation to appoint surrogate parents for students with disabilities who are without parental representation in special education procedures as required by state and federal law, including Section 1415(b)(2) of Title 20 of the United States Code, Section 56050 of the Education Code, Section 7579.5 of the Government Code, and Rule 5.650 of the California Rules of Court.If the court appoints a developmental services decisionmaker pursuant to this section, he or she they shall have the authority to access the childs information and records pursuant to subdivision (u) of Section 4514 and subdivision (y) of Section 5328, and to act on the childs behalf for the purposes of the individual program plan process pursuant to Sections 4646, 4646.5, and 4648 and the fair hearing process pursuant to Chapter 7 (commencing with Section 4700) of Division 4.5, and as set forth in the court order.(d) (1) If the minor is removed from the physical custody of his or her the minors parent or guardian as the result of an order of wardship made pursuant to Section 602, the order shall specify that the minor may not be held in physical confinement for a period in excess of the maximum middle term of imprisonment which could be imposed upon an adult convicted of the offense or offenses which brought or continued the minor under the jurisdiction of the juvenile court.(2) As used in this section and in Section 731, maximum term of imprisonment means the longest middle of the three time periods set forth in paragraph (3) of subdivision (a) of Section 1170 of the Penal Code, but without the need to follow the provisions of subdivision (b) of Section 1170 of the Penal Code or to consider time for good behavior or participation pursuant to Sections 2930, 2931, and 2932 of the Penal Code, plus enhancements which must be proven if pled.(3) If the court elects to aggregate the period of physical confinement on multiple counts or multiple petitions, including previously sustained petitions adjudging the minor a ward within Section 602, the maximum term of imprisonment shall be the aggregate term of imprisonment specified in subdivision (a) of Section 1170.1 of the Penal Code, which includes any additional term imposed pursuant to Section 667, 667.5, 667.6, or 12022.1 of the Penal Code, and Section 11370.2 of the Health and Safety Code.(4) If the charged offense is a misdemeanor or a felony not included within the scope of Section 1170 of the Penal Code, the maximum term of imprisonment is the longest middle term of imprisonment prescribed by law.(5) Physical confinement means placement in a juvenile hall, ranch, camp, forestry camp or secure juvenile home pursuant to Section 730, or in any institution operated by the Department of Corrections and Rehabilitation, Division of Juvenile Justice.(6) This section does not limit the power of the court to retain jurisdiction over a minor and to make appropriate orders pursuant to Section 727 for the period permitted by Section 607.SEC. 8. Section 731 is added to the Welfare and Institutions Code, to read:731. (a) If a minor is adjudged a ward of the court on the grounds that the minor is a person described by Section 602, the court may commit the ward to the Department of Corrections and Rehabilitation, Division of Juvenile Justice if the ward has committed an offense described in subdivision (b) of Section 707 or subdivision (c) of Section 290.008 of the Penal Code, and has been the subject of a motion filed to transfer the ward to the jurisdiction of the criminal court as provided in subdivision (c) of Section 736.5 and is not otherwise ineligible for commitment to the division under Section 733.(b) A ward committed to the Division of Juvenile Justice shall not be confined in excess of the term of confinement set by the committing court. The court shall set a maximum term based upon the facts and circumstances of the matter or matters that brought or continued the ward under the jurisdiction of the court and as deemed appropriate to achieve rehabilitation. The court shall not commit a ward to the Division of Juvenile Justice for a period that exceeds the middle term of imprisonment that could be imposed upon an adult convicted of the same offense. This subdivision does not limit the power of the Board of Juvenile Hearings to discharge a ward committed to the Division of Juvenile Justice pursuant to Sections 1719 and 1769. Upon discharge, the committing court may retain jurisdiction of the ward pursuant to Section 607.1 and establish the conditions of supervision pursuant to subdivision (b) of Section 1766.(c) This section shall become operative on July 1, 2021, and shall remain in effect until the final closure of the Division of Juvenile Justice.SEC. 9. Section 733.1 of the Welfare and Institutions Code is amended to read:733.1. (a) Notwithstanding any other law, except as otherwise provided in this section, a ward of the juvenile court shall not be committed to the Department of Corrections and Rehabilitation, Division of Juvenile Justice on or after July 1, 2021.(b) A court may commit a ward to the Department of Corrections and Rehabilitation, Division of Juvenile Justice as authorized in subdivision (c) of Section 736.5.(c) Effective July 1, 2021, a person adjudged a ward of the court pursuant to Section 602, shall not be committed to the Department of Corrections and Rehabilitation, Division of Juvenile Justice, as long as allocations required by Section 1991 are authorized in statute and disbursed by September 1, 2021, and September 1 annually thereafter. To the extent that the allocations required by Section 1991 are not authorized in statute and disbursed annually thereafter, it is the intent of this section that wards adjudged wards of the court pursuant to Section 602 for an offense described in subdivision (b) of Section 707 of this code or subdivision (c) of Section 290.008 of the Penal Code may be committed to a state-funded facility pursuant to Sections 731, 733, and 734. the Division of Juvenile Justice or, upon the final closure of the Division of Juvenile Justice, another state-funded facility, if the ward could have been committed to the Division of Juvenile Justice pursuant to Section 731, as that section read on January 1, 2021, and Sections 733, 734, and 736.5. For the purpose of determining the states compliance with this subdivision, the presumption shall be that the state is meeting its commitment in Section 1991 if that section is not materially changed from the law in effect on the operative date of this section.SEC. 10. Section 736.5 of the Welfare and Institutions Code is amended to read:736.5. (a) It is the intent of the Legislature to close the Division of Juvenile Justice within the Department of Corrections and Rehabilitation, through shifting responsibility for all youth adjudged a ward of the court, commencing July 1, 2021, to county governments and providing annual funding for county governments to fulfill this new responsibility.(b) Beginning July 1, 2021, a ward shall not be committed to the Department of Corrections and Rehabilitation, Division of Juvenile Justice, except as described in subdivision (c).(c) Pending the final closure of the Department of Corrections and Rehabilitation, Division of Juvenile Justice, a court may commit a ward who is otherwise eligible to be committed under existing law and in whose case a motion to transfer the minor from juvenile court to a court of criminal jurisdiction was filed. The court shall consider, as an alternative to commitment to the Division of Juvenile Justice, placement in local programs, including those established as a result of the implementation of Chapter 337 of the Statutes of 2020.(d) All wards committed to the Department of Corrections and Rehabilitation, Division of Juvenile Justice prior to July 1, 2021 or pursuant to (c), shall remain within its custody until the ward is discharged, released or otherwise moved pursuant to law. law, or until final closure of the Division of Juvenile Justice.(e) The Division of Juvenile Justice within the Department of Corrections and Rehabilitation shall close on June 30, 2023.(f) The Director of the Division of Juvenile Justice shall develop a plan, by January 1, 2022, for the transfer of jurisdiction of youth remaining at the Division of Juvenile Justice who are unable to discharge or otherwise move pursuant to law prior to final closure on June 30, 2023.(e)It is the intent of the Legislature to establish a separate dispositional track for higher-need youth by March 1, 2021. The framework for consideration shall be the processes laid out in Section 30 of Senate Bill 823 as amended on August 24, 2020.SEC. 11. Section 779.5 is added to the Welfare and Institutions Code, to read:779.5. The court committing a ward to a secure youth treatment facility as provided in Section 875 may thereafter modify or set aside the order of commitment upon the written application of the ward or the probation department and upon a showing of good cause that the county or the commitment facility has failed, or is unable to, provide the ward with treatment, programming, and education that are consistent with the individual rehabilitation plan described in subdivision (d) of Section 875, that the conditions under which the ward is confined are harmful to the ward, or that the juvenile justice goals of rehabilitation and community safety are no longer served by continued confinement of the ward in a secure youth treatment facility. The court shall notice a hearing in which it shall hear any evidence from the ward, the probation department, and any behavioral health or other specialists having information relevant to consideration of the request to modify or set aside the order of commitment. The court shall, at the conclusion of the hearing, make its findings on the record, including findings as to the custodial and supervision status of the ward, based on the evidence presented.SEC. 12. Article 23.5 (commencing with Section 875) is added to Chapter 2 of Part 1 of Division 2 of the Welfare and Institutions Code, to read: Article 23.5. Secure Youth Treatment Facilities875. (a) In addition to the types of treatment specified in Sections 727 and 730, commencing July 1, 2021, the court may order that a ward who is 14 years of age or older, be committed to a secure youth treatment facility for a period of confinement described in subdivision (b) if the ward meets the following criteria:(1) The juvenile is adjudicated and found to be a ward of the court based on an offense listed in subdivision (b) of Section 707.(2) The adjudication described in paragraph (1) is the most recent offense for which the juvenile has been adjudicated.(3) The court has made a finding on the record that a less restrictive, alternative disposition for the ward is unsuitable. In determining this, the court shall consider all relevant and material evidence, including the recommendations of counsel, the probation department, and any other agency or individual designated by the court to advise on the appropriate disposition of the case. The court shall additionally make its determination based on all of the following criteria:(A) The severity of the offense or offenses for which the ward has been most recently adjudicated, including the wards role in the offense, the wards behavior, and harm done to victims.(B) The wards previous delinquent history, including the adequacy and success of previous attempts by the juvenile court to rehabilitate the ward.(C) Whether the programming, treatment, and education offered and provided in a secure youth treatment facility is appropriate to meet the treatment and security needs of the ward.(D) Whether the goals of rehabilitation and community safety can be met by assigning the ward to an alternative, less restrictive disposition that is available to the court.(E) The wards age, developmental maturity, mental and emotional health, sexual orientation, gender identity and expression, and any disabilities or special needs affecting the safety or suitability of committing the ward to a term of confinement in a secure youth treatment facility.(b) In making its order of commitment for a ward, the court shall set a baseline term of confinement for the ward that is based on the most serious recent offense for which the ward has been adjudicated. The baseline term of confinement shall represent the time in custody necessary to meet the developmental and treatment needs of the ward and to prepare the ward for discharge to a period of probation supervision in the community. The baseline term of confinement for the ward shall be determined according to offense-based classifications that are approved by the Judicial Council as described in subdivision (h). Pending the development and adoption of offense-based classifications by the Judicial Council, the court shall set a baseline term of confinement for the ward utilizing the discharge consideration date guidelines applied by the Department of Corrections and Rehabilitation, Division of Juvenile Justice prior to its closure and as set forth in Sections 30807 to 30813, inclusive, of Title 9 of the California Code of Regulations. These guidelines shall be used only to determine a baseline confinement time for the ward and shall not be used or relied on to modify the wards confinement time in any manner other than as provided in this section. The court may, pending the adoption of Judicial Council guidelines, modify the initial baseline term with a deviation of plus or minus six months. The baseline term shall also be subject to modification in progress review hearings as described in subdivision (e).(c) In making its order of commitment, the court shall additionally set a maximum term of confinement for the ward in a secure youth treatment facility. The maximum term of confinement shall represent the longest term of confinement in a facility that the ward may serve subject to the following:(1) A ward committed to a secure youth treatment facility under this section shall not be held in secure confinement beyond 23 years of age, or two years from the date of the commitment, whichever occurs later. However, if the ward has been committed to a facility based on adjudication for an offense or offenses for which the ward, if convicted in adult criminal court, would face an aggregate sentence of seven or more years, the maximum period of confinement shall not exceed the ward attaining 25 years of age or two years from the date of the commitment, whichever occurs later.(2) The maximum period of confinement shall not exceed the middle term of imprisonment that can be imposed upon an adult convicted of the same offense or offenses.(d) (1) Within 30 days of making an order of commitment to a secure youth treatment facility, the court shall receive, review, and approve an individual rehabilitation plan that meets the requirements of paragraph (2) for the ward that has been submitted to the court by the probation department and any other agencies or individuals the court deems necessary for the development of the plan. The plan may be developed in consultation with a multidisciplinary team of youth service, mental and behavioral health, education, and other treatment providers who are convened to advise the court for this purpose. The prosecutor and the counsel for the ward may provide input in the development of the rehabilitation plan prior to the courts approval of the plan. The plan may be modified by the court based on all of the information provided.(2) An individual rehabilitation plan shall do all of the following:(A) Identify the wards needs in relation to treatment, education, and development, including any special needs the ward may have in relation to health, mental or emotional health, disabilities, or gender-related or other special needs.(B) Describe the programming, treatment, and education to be provided to the ward in relation to the identified needs during the commitment period.(C) Reflect, and be consistent with, the principles of trauma-informed, evidence-based, and culturally responsive care.(D) The ward and their family shall be given the opportunity to provide input regarding the needs of the ward during the identification process stated in subparagraph (A), and the opinions of the ward and the wards family shall be included in the rehabilitation plan report to the court.(e) (1) The court shall, during the term of commitment, schedule and hold a progress review hearing for the ward not less frequently than once every six months. In the review hearing, the court shall evaluate the wards progress in relation to the rehabilitation plan and shall determine whether the baseline term of confinement is to be modified. The court shall consider the recommendations of counsel, the probation department and any behavioral, educational, or other specialists having information relevant to the wards progress. At the conclusion of the review hearing, the court may order that the ward remain in custody for the remainder of the baseline term or may order that the wards baseline term be modified downward by a reduction of confinement time not to exceed six months. The court may additionally order that the ward be assigned to a less restrictive program, as provided in subdivision (f).(2) The wards confinement time, including time spent in a less restrictive program described in subdivision (f), shall not be extended beyond the baseline confinement term, or beyond a modified baseline term, for disciplinary infractions or other in-custody behaviors. Any infractions or behaviors shall be addressed by alternative means, which may include a system of graduated sanctions for disciplinary infractions adopted by the operator of a secure youth treatment facility and subject to any relevant state standards or regulations that apply to juvenile facilities generally.(3) The court shall, at the conclusion of the baseline confinement term, including any modified baseline term, hold a probation discharge hearing for the ward. For a ward who has been placed in a less restrictive program described in subdivision (f), the probation discharge hearing shall occur at the end of the period, or modified period, of placement that has been ordered by the court. At the discharge hearing, the court shall review the wards progress toward meeting the goals of the individual rehabilitation plan and the recommendations of counsel, the probation department, and any other agencies or individuals having information the court deems necessary. At the conclusion of the hearing, the court shall order that the ward be discharged to a period of probation supervision in the community under conditions approved by the court, unless the court finds that the ward constitutes a substantial risk of imminent harm to others in the community if released from custody. If the court so finds, the ward may be retained in custody in a secure youth treatment facility for up to one additional year of confinement, subject to the review hearing and probation discharge hearing provisions of this subdivision and subject to the maximum confinement provisions of subdivision (c).(4) If the ward is discharged to probation supervision, the court shall determine the reasonable conditions of probation that are suitable to meet the developmental needs and circumstances of the ward and to facilitate the wards successful reentry into the community. The court shall periodically review the wards progress under probation supervision and shall make any additional orders deemed necessary to modify the program of supervision in order to facilitate the provision of services or to otherwise support the wards successful reentry into the community. If the court finds that the ward has failed materially to comply with the reasonable orders of probation imposed by the court, the court may order that the ward be returned to a juvenile facility or to a placement described in subdivision (f) for a period not to exceed either the remainder of the baseline term, including any court-ordered modifications, or six months, whichever is longer, and in any case not to exceed the maximum confinement limits of subdivision (c).(f) (1) Upon a motion from the probation department or the ward, the court may order that the ward be transferred from a secure youth treatment facility to less restrictive program, such as a halfway house, a camp or ranch, or a community residential or nonresidential service program. The purpose of a less restrictive program is to facilitate the safe and successful reintegration of the ward into the community. The court shall consider the transfer request at the next scheduled treatment review hearing or at a separately scheduled hearing. The court shall consider the recommendations of the probation department on the proposed change in placement. Approval of the request for a less restrictive program shall be made only upon the courts determination that the ward has made substantial progress toward the goals of the individual rehabilitation plan described in subdivision (d) and that placement is consistent with the goals of youth rehabilitation and community safety. In making its determination, the court shall consider both of the following factors:(A) The wards overall progress in relation to the rehabilitation plan during the period of confinement in a secure youth treatment facility.(B) The programming and community transition services to be provided, or coordinated by the less restrictive program, including, but not limited to, any educational, vocational, counseling, housing, or other services made available through the program.(2) In any order transferring the ward from a secure youth treatment facility to a less restrictive program, the court may require the ward to observe any conditions of performance or compliance with the program that are reasonable and appropriate in the individual case and that are within the capacity of the ward to perform. The court shall set the length of time the ward is to remain in a less restrictive program, not to exceed the remainder of the baseline or modified baseline term, prior to a probation discharge hearing described in subdivision (e). If, after placement in a less restrictive program, the court determines that the ward has materially failed to comply with the court-ordered conditions of placement in the program, the court may modify the terms and conditions of placement in the program or may order the ward to be returned to a secure youth treatment facility for the remainder of the baseline term, or modified baseline term, and subject to further periodic review hearings, as provided in subdivision (e) and to the maximum confinement provisions of subdivision (c).(g) A secure youth treatment facility, as described in this section, shall meet the following criteria:(1) The facility shall be a secure facility that is operated, utilized, or accessed by the county of commitment to provide appropriate programming, treatment, and education for wards having been adjudicated for the offenses specified in subdivision (a).(2) The facility may be a stand-alone facility, such as a probation camp or other facility operated under contract with the county, or with another county, or may be a unit or portion of an existing county juvenile facility, including a juvenile hall or probation camp, that is configured and programmed to serve the population described in subdivision (a) and is in compliance with the standards described in paragraph (3).(3) The Board of State and Community Corrections shall by July 1, 2023, review existing juvenile facility standards and modify or add standards for the establishment, design, security, programming and education, and staffing of any facility that is utilized or accessed by the court as a secure youth treatment facility under the provisions of this section. The standards shall be developed by the board with the coordination and concurrence of the Office of Youth and Community Restoration established by Section 2200. The standards shall specify how the facility may be used to serve or to separate juveniles, other than juveniles described in subdivision (a) serving baseline confinement terms, who may also be detained in or committed to the facility or to some portion of the facility. Pending the final adoption of these modified standards, a secure youth treatment facility shall comply with applicable minimum standards for juvenile facilities in Title 15 and Title 24 of the California Code of Regulations.(4) A county proposing to establish a secure youth treatment facility for wards described in subdivision (a) shall notify the Board of State and Community Corrections of the operation of the facility and shall submit a description of the facility to the board in a format designated by the board. Commencing July 1, 2022, the Board of State and Community Corrections shall conduct a biennial inspection of each secure youth treatment facility that was used for the confinement of juveniles placed pursuant to subdivision (a) during the preceding calendar year. To the extent new standards are not yet in place, the board shall utilize the standards in existing regulations.(5) In lieu of establishing its own secure youth treatment facility, a county may contract with another county having a secure youth treatment facility to accept commitments of wards described in subdivision (a).(6) A county may establish a secure youth treatment facility to serve as a regional center for commitment of juveniles by one or more other counties on a contract payment basis.(h) (1) By July 1, 2023, the Judicial Council shall develop and adopt a matrix of offense-based classifications to be applied by the juvenile courts in all counties in setting the baseline confinement terms described in subdivision (b). Each classification level or category shall specify a set of offenses within the level or category that is linked to a standard baseline term of years to be assigned to youth, based on their most serious recent adjudicated offense, who are committed to a secure youth treatment facility as provided in this section. The classification matrix may provide for upward or downward deviations from the baseline term and may also provide for a system of positive incentives or credits for time served. In developing the matrix, the Judicial Council shall be advised by a working group of stakeholders, which shall include representatives from prosecution, defense, probation, behavioral health, youth service providers, youth formerly incarcerated in the Division of Juvenile Justice, and youth advocacy and other stakeholders and organizations having relevant expertise or information on dispositions and sentencing of youth in the juvenile justice system. In the development process, the Judicial Council shall also examine and take into account youth sentencing and length-of-stay guidelines or practices adopted by other states or recommended by organizations, academic institutions, or individuals having expertise or having conducted relevant research on dispositions and sentencing of youth in the juvenile justice system.(2) Upon final adoption by the Judicial Council, the matrix of offense-based classifications shall be applied in a standardized manner by juvenile courts in each county in cases where the court is required to set a baseline confinement term under subdivision (b) for wards who are committed to a secure youth treatment facility. The discharge consideration date guidelines of the Division of Juvenile Justice that were applied on an interim basis, as provided in subdivision (b), shall not thereafter be utilized to determine baseline confinement terms for wards who are committed to a secure youth treatment facility under the provisions of this section.(i) A court shall not commit a juvenile to any juvenile facility, including a secure youth treatment facility as defined in this section, for a period that exceeds the middle term of imprisonment that could be imposed upon an adult convicted of the same offense or offenses.875.5. (a) It is the intent of the Legislature to apply Article 6 (commencing with Section 1800) of Chapter 1 of Division 2.5, governing extended detention of persons physically dangerous to the public who are served by the Division of Juvenile Justice, to persons physically dangerous to the public who are committed to a secure treatment facility pursuant to Section 875, pending development of a specific commitment process for realigned persons pursuant to subdivision (b).(b) The Governor and the Legislature shall work with stakeholders, including, but not limited to, the Division of Juvenile Justice, the State Department of State Hospitals, the Chief Probation Officers of California, the California State Association of Counties, advocacy organizations representing youth, and the Judicial Council to develop language by July 1, 2021, to replace the procedures specified in Section 876 with a commitment process that ensures the treatment capacity, legal protections, and court procedures are appropriate to successfully serve persons realigned from the Division of Juvenile Justice to the counties by Senate Bill 823 (Chapter 337, Statutes of 2020).(c) It is the intent of the Legislature to enact legislation that would, effective July 1, 2022, extend detention of persons physically dangerous to the public who are in a secure youth treatment facility pursuant to the commitment process developed in subdivision (b).876. (a) If a probation department determines that the discharge of a person confined in a secure youth treatment facility from the control of the court at the time required by Section 875 would be physically dangerous to the public because of the persons mental or physical condition, disorder, or other problem that causes the person to have serious difficulty controlling their dangerous behavior, the department shall request the prosecuting attorney to petition the committing court for an order directing that the person remain subject to the control of the department beyond that time. The petition shall be filed at least 90 days before the time of discharge otherwise required. The petition shall be accompanied by a written statement of the facts upon which the department bases its opinion that discharge at the time stated would be physically dangerous to the public, but the petition may not be dismissed and an order may not be denied merely because of technical defects in the application.(b) The prosecuting attorney shall promptly notify the probation department of a decision not to file a petition.(c) If a petition is filed with the court and, upon review, the court determines that the petition, on its face, supports a finding of probable cause, the court shall order that a hearing be held.The court shall provide notification of the hearing to the person whose liberty is involved and, if the person is a minor, the minors parent or guardian, if the minors parent or guardian can be reached, and, if not, the court shall appoint a person to act in the place of the parent or guardian and shall afford the person an opportunity to appear at the hearing with the aid of counsel and the right to cross-examine experts or other witnesses upon whose information, opinion, or testimony the petition is based. The court shall inform the person named in the petition of their right of process to compel attendance of relevant witnesses and the production of relevant evidence. When the person is unable to provide their own counsel, the court shall appoint counsel to represent them. The probable cause hearing shall be held within 10 calendar days after the date the order is issued pursuant to this subdivision unless the person named in the petition waives this time.(d) At the probable cause hearing, the court shall receive evidence and determine whether there is probable cause to believe that discharge of the person would be physically dangerous to the public because of the persons mental or physical condition, disorder, or other problem that causes the person to have serious difficulty controlling dangerous behavior. If the court determines there is not probable cause, the court shall dismiss the petition and the person shall be discharged from the control of a secure youth treatment facility at the time required by Section 875, as applicable. If the court determines there is probable cause, the court shall order that a trial be conducted to determine whether the person is physically dangerous to the public because of their mental or physical condition, disorder, or other problem.(e) If a trial is ordered, the trial shall be by jury unless the right to a jury trial is personally waived by the person, after the person has been fully advised of the constitutional rights being waived, and by the prosecuting attorney, in which case trial shall be by the court. If the jury is not waived, the court shall cause a jury to be summoned and to be in attendance at a date stated, not less than 4 days nor more than 30 days from the date of the order for trial, unless the person named in the petition waives time. The court shall submit to the jury, or, at a court trial, the court shall answer, the following question: Is the person physically dangerous to the public because of a mental or physical condition, disorder, or other problem that causes the person to have serious difficulty controlling their dangerous behavior? The courts previous order entered pursuant to this section shall not be read to the jury, nor alluded to in the trial. The person shall be entitled to all rights guaranteed under the federal and state constitutions in criminal proceedings. A unanimous jury verdict shall be required in any jury trial. As to either a court or a jury trial, the standard of proof shall be that of proof beyond a reasonable doubt.(f) If an order for continued detention is made pursuant to this section, the control of the department over the person shall continue, subject to the provisions of this article, but, unless the person is previously discharged as provided in Section 875, the department shall, within two years after the date of that order in the case of persons committed by the juvenile court, or within two years after the date of that order in the case of persons committed after conviction in criminal proceedings, file a new application for continued detention in accordance with the provisions of this section if continued detention is deemed necessary. These applications may be repeated at intervals as often as in the opinion of the department may be necessary for the protection of the public, except that the court shall have the power, in order to protect other persons in the custody of probation to refer the person for evaluation for civil commitment or to transfer the custody of any person over 25 years of age to the county adult probation authorities for placement in an appropriate institution. Each person shall be discharged from the control of the probation department at the termination of the period stated in this section unless the probation department has filed a new application and the court has made a new order for continued detention as provided above in this section.(g) An order of the committing court made pursuant to this section is appealable by the person whose liberty is involved in the same manner as a judgment in a criminal case. The appellate court may affirm the order of the lower court, or modify it, or reverse it and order the appellant to be discharged. Pending appeal, the appellant shall remain under the control of the probation department.SEC. 13. Section 1731.5 of the Welfare and Institutions Code is amended to read:1731.5. (a) After certification to the Governor as provided in this article, a court may may, until July 1, 2021, commit to the Division of Juvenile Justice any person who meets all of the following:(1) Is convicted of an offense described in subdivision (b) of Section 707 or subdivision (c) of Section 290.008 of the Penal Code.(2) Is found to be less than 21 years of age at the time of apprehension.(3) Is not sentenced to death, imprisonment for life, with or without the possibility of parole, whether or not pursuant to Section 190 of the Penal Code, imprisonment for 90 days or less, or the payment of a fine, or after having been directed to pay a fine, defaults in the payment thereof, and is subject to imprisonment for more than 90 days under the judgment.(4) Is not granted probation, or was granted probation and that probation is revoked and terminated.(b) The Division of Juvenile Justice shall accept a person committed to it prior to July 1,2021, pursuant to this article if it believes that the person can be materially benefited by its reformatory and educational discipline, and if it has adequate facilities to provide that care.(c) A person under 18 years of age who is not committed to the division pursuant to this section may be transferred to the division by the Secretary of the Department of Corrections and Rehabilitation with the approval of the Director of the Division of Juvenile Justice. In sentencing a person under 18 years of age, the court may may, until July 1, 2021, order that the person be transferred to the custody of the Division of Juvenile Justice pursuant to this subdivision. If the court makes this order and the division fails to accept custody of the person, the person shall be returned to court for resentencing. The transfer shall be solely for the purposes of housing the inmate, allowing participation in the programs available at the institution by the inmate, and allowing division parole supervision of the inmate, who, in all other aspects shall be deemed to be committed to the Department of Corrections and Rehabilitation and shall remain subject to the jurisdiction of the Secretary of the Department of Corrections and Rehabilitation and the Board of Parole Hearings. Notwithstanding subdivision (b) of Section 2900 of the Penal Code, the secretary, with the concurrence of the director, may designate a facility under the jurisdiction of the director as a place of reception for a person described in this subdivision. The director has the same powers with respect to an inmate transferred pursuant to this subdivision as if the inmate had been committed or transferred to the Division of Juvenile Justice either under the Arnold-Kennick Juvenile Court Law or subdivision (a). The duration of the transfer shall extend until any of the following occurs:(1) The director orders the inmate returned to the Department of Corrections and Rehabilitation.(2) The inmate is ordered discharged by the Board of Parole Hearings.(3) The inmate reaches 18 years of age. However, if the inmates period of incarceration would be completed on or before the inmates 25th birthday, the director may continue to house the inmate until the period of incarceration is completed. completed or until final closure of the Division of Juvenile Justice.(d) The amendments to subdivision (c), as that subdivision reads on July 1, 2018, made by the act adding this subdivision, apply retroactively.SEC. 14. Section 1731.6 of the Welfare and Institutions Code is amended to read:1731.6. (a) In any county in which there is in effect a contract made pursuant to Section 1752.1, if a court has determined that a person comes within the provisions of Section 1731.5 and concludes that a proper disposition of the case requires such observation and diagnosis as can be made at a diagnostic and treatment center of the Youth Authority, Division of Juvenile Justice, the court may continue the hearing and and, until July 1, 2021, order that such the person be placed temporarily in such a center for a period not to exceed 90 days, with the further provision in such order that the Director of the Youth Authority Division of Juvenile Justice report to the court its diagnosis and recommendations concerning the person within the 90-day period.(b) The Director of the Youth Authority Division of Juvenile Justice shall, within the 90 days, cause the person to be observed and examined and shall forward to the court his the diagnosis and recommendation concerning such the persons future care, supervision, and treatment.(c) The Youth Authority Division of Juvenile Justice shall accept such that person if it believes that the person can be materially benefited by such diagnostic and treatment services and if the Director of the Youth Authority Division of Juvenile Justice certifies that staff and institutions are available. No such A person shall not be transported to any facility under the jurisdiction of the Youth Authority Division of Juvenile Justice until the director has notified the referring court of the place to which such the person is to be transported and the time at which he the person can be received.(d) Notwithstanding the provisions of subdivision (c), the Youth Authority Division of Juvenile Justice shall accept without cost to the county any persons remanded pursuant to Section 707.2.(e) The sheriff of the county in which an order is made placing a person in a diagnostic and treatment center pursuant to this section, or any other peace officer designated by the court, shall execute the order placing such the person in the center or returning him them therefrom to the court. The expense of such the sheriff or other peace officer incurred in executing such that order is a charge upon the county in which the court is situated.SEC. 15. Section 1731.7 of the Welfare and Institutions Code, as amended by Section 42 of Chapter 29 of the Statutes of 2020, is amended to read:1731.7. (a) The Department of Corrections and Rehabilitation, Division of Juvenile Justice, shall establish and operate a seven-year pilot program for transition-aged youth. Commencing on or after January 1, 2019, the program shall divert a limited number of transition-aged youth from adult prison to a juvenile facility in order to provide developmentally appropriate, rehabilitative programming designed for transition-aged youth with the goal of improving their outcomes and reducing recidivism.(b) The department may develop criteria for placement in this program, initially targeting youth sentenced by a superior court who committed an offense described in subdivision (b) of Section 707 prior to 18 years of age. Youth with a period of incarceration that cannot be completed on or before their 25th birthday are ineligible for placement in the transition-aged youth program. The department may consider the availability of program credit earning opportunities that lower the total length of time a youth serves in determining eligibility.(c) Notwithstanding any other law, following sentencing, an individual who is 18 years of age or older at the time of sentencing and who has been convicted of an offense described in subdivision (b) of Section 707 that occurred prior to 18 years of age shall remain in local detention pending a determination of acceptance or rejection by the Division of Juvenile Justice. The Division of Juvenile Justice shall notify the local detention authority upon determination of acceptance or rejection of an individual pursuant to this subdivision.(d) An eligible person may be transferred to the Division of Juvenile Justice by the Secretary of the Department of Corrections and Rehabilitation with the approval of the Director of the Division of Juvenile Justice. Notwithstanding subdivision (b) of Section 2900 of the Penal Code, the secretary, with the concurrence of the director, may designate a facility under the jurisdiction of the Division of Juvenile Justice as a place of reception for a person described in this section.(e) The duration of the transfer shall extend until either of the following occurs:(1) The director orders the youth returned to the Department of Corrections and Rehabilitation.(2) The youths period of incarceration is completed.(f) The Division of Juvenile Justice shall produce and submit a report to the Legislature on January 1, 2020, and each January 1 thereafter, to assess the program. At a minimum, the report shall include all of the following:(1) Criteria used to determine placement in the program.(2) Guidelines for satisfactory completion of the program.(3) Demographic data of eligible and selected participants, including, but not limited to, county of conviction, race, gender, sexual orientation, and gender identity and expression.(4) Disciplinary infractions incurred by participants.(5) Good conduct, milestone completion, rehabilitative achievement, and educational merit credits earned in custody.(6) Quantitative and qualitative measures of progress in programming.(7) Rates of attrition of program participants.(g) The Division of Juvenile Justice shall contract with one or more independent universities or outside research organizations to evaluate the effects of participation in the program established by this section. This evaluation shall include, at a minimum, an evaluation of cost-effectiveness, recidivism data, consistency with evidence-based principles, and program fidelity. If sufficient data is available, the evaluation may also compare participant outcomes with a like group of similarly situated transition aged youth retained in the counties or incarcerated in adult institutions.(h) The Division of Juvenile Justice shall promulgate regulations to implement this section.(i) Effective July 1, 2020, the pilot program operated pursuant to this section shall be suspended. Any pilot program participants who were diverted from an adult prison pursuant to this section and who were housed at the Division of Juvenile Justice prior to January 1, 2020, may remain at the Division of Juvenile Justice pursuant to subdivision (e).SEC. 16. Section 1731.7 of the Welfare and Institutions Code, as added by Section 68 of Chapter 25 of the Statutes of 2019, is repealed.1731.7.(a)The Department of Corrections and Rehabilitation shall establish and operate a seven-year pilot program for transition-aged youth. Commencing on or after January 1, 2019, the program shall divert a limited number of transition-aged youth from adult prison to a juvenile facility in order to provide developmentally appropriate, rehabilitative programming designed for transition-aged youth with the goal of improving their outcomes and reducing recidivism.(b)The department may develop criteria for placement in this program, initially targeting youth sentenced by a superior court who committed an offense described in subdivision (b) of Section 707 prior to 18 years of age. Youth with a period of incarceration that cannot be completed on or before their 25th birthday are ineligible for placement in the transition-aged youth program. The department may consider the availability of program credit earning opportunities that lower the total length of time a youth serves in determining eligibility.(c)Notwithstanding any other law, following sentencing, an individual who is 18 years of age or older at the time of sentencing and who has been convicted of an offense described in subdivision (b) of Section 707 that occurred prior to 18 years of age shall remain in local detention pending a determination of acceptance or rejection by the Department of Youth and Community Restoration. The Department of Youth and Community Restoration shall notify the local detention authority upon determination of acceptance or rejection of an individual pursuant to this subdivision.(d)An eligible person may be transferred to the Department of Youth and Community Restoration by the Secretary of the Department of Corrections and Rehabilitation with the approval of the Director of the Department of Youth and Community Restoration. Notwithstanding subdivision (b) of Section 2900 of the Penal Code, the secretary, with the concurrence of the director, may designate a facility under the jurisdiction of the Department of Youth and Community Restoration as a place of reception for a person described in this section.(e)The duration of the transfer shall extend until either of the following occurs:(1)The director orders the youth returned to the Department of Corrections and Rehabilitation.(2)The youths period of incarceration is completed.(f)The Department of Youth and Community Restoration shall produce and submit a report to the Legislature on January 1, 2021, and each January 1 thereafter, to assess the program. At a minimum, the report shall include all of the following:(1)Criteria used to determine placement in the program.(2)Guidelines for satisfactory completion of the program.(3)Demographic data of eligible and selected participants, including, but not limited to, county of conviction, race, gender, sexual orientation, and gender identity and expression.(4)Disciplinary infractions incurred by participants.(5)Good conduct, milestone completion, rehabilitative achievement, and educational merit credits earned in custody.(6)Quantitative and qualitative measures of progress in programming.(7)Rates of attrition of program participants.(g)The Department of Youth and Community Restoration shall contract with one or more independent universities or outside research organizations to evaluate the effects of participation in the program established by this section. This evaluation shall include, at a minimum, an evaluation of cost-effectiveness, recidivism data, consistency with evidence-based principles, and program fidelity. If sufficient data is available, the evaluation may also compare participant outcomes with a like group of similarly situated transition aged youth retained in the counties or incarcerated in adult institutions.(h)The Department of Youth and Community Restoration shall promulgate regulations to implement this section.(i)This section shall become operative July 1, 2020.(j)This section shall become inoperative on June 1, 2026, and, as of January 1, 2027, is repealed.SEC. 17. Section 1752.1 of the Welfare and Institutions Code is amended to read:1752.1. (a) The director may enter into contracts with the approval of the Director of Finance with any county of this state, upon request of the board of supervisors thereof, wherein the Youth Authority Division of Juvenile Justice agrees to furnish diagnosis and treatment services and temporary detention during a period of study to the county for selected cases of persons eligible for commitment to the Youth Authority. Division of Juvenile Justice. The county shall reimburse the state for the cost of such those services, such the cost to be determined by the Director of the Youth Authority. Division of Juvenile Justice.The Youth Authority(b) The Division of Juvenile Justice shall present to the county, not more frequently than monthly, a claim for the amount due the state under this section which the county shall process and pay pursuant to the provisions of Chapter 4 (commencing with Section 29700) of Division 3 of Title 3 of the Government Code.(c) The Division of Juvenile Justice shall not accept new cases from the counties pursuant to this section on and after July 1, 2021.SEC. 18. Section 1752.15 of the Welfare and Institutions Code is amended to read:1752.15. (a) The director may enter into contracts, with the approval of the Director of Finance, with any county of this state upon request of the board of supervisors thereof, wherein the Department of the Youth Authority Division of Juvenile Justice agrees to furnish temporary emergency detention facilities and necessary services incident thereto, for persons under the age of 18 years who are in the custody of the county probation officer pursuant to provisions of Chapter 2 (commencing with Section 200) of Part 1 of Division 2. Facilities of the department may be used only on a temporary basis when existing county juvenile facilities are rendered unsafe or inadequate because of a natural or manmade disaster, or when the continued presence of the minor or minors in the county juvenile facilities would, in the opinion of the judge of the juvenile court having jurisdiction over the minor, of the chief probation officer of the county, and of the director, present a significant risk of violence or escape. They may not be used for the detention of a person who is alleged to be or has been adjudged to be a person described by Section 300 or Section 601.Whenever(b) Whenever any person is detained in a California Youth Authority Division of Juvenile Justice facility located in a county other than the county which has contracted for services pursuant to this section, the county shall provide for adequate consultation between the minor and his or her the minors attorney; and, if the minors parent or guardian lacks adequate private means of transportation, and if the minor has been detained in the facility for more than 10 days, the county shall make reasonable efforts to provide for visitation between the minor and his or her the minors parents or guardian.The(c) The county shall reimburse the state for the cost of these services, the cost to be determined by the director. The department shall present to the county, not more than once a month, a claim for the amount due the state under this section which the county shall process and pay pursuant to the provisions of Chapter 4 (commencing with Section 29700) of Division 3 of Title 3 of the Government Code.(d) The Division of Juvenile Justice shall not accept new cases from the counties pursuant to this section on and after July 1, 2021.SEC. 19. Section 1767.35 of the Welfare and Institutions Code is amended to read:1767.35. (a) For a ward discharged from the Division of Juvenile Facilities Justice to the jurisdiction of the committing court, that person may be detained by probation, for the purpose of initiating proceedings to modify the wards conditions of supervision entered pursuant to paragraph (6) of subdivision (b) of Section 1766 if there is probable cause to believe that the ward has violated any of the court-ordered conditions of supervision. Within 15 days of detention, the committing court shall conduct a modification hearing for the ward. Pending the hearing, the ward may be detained by probation. At the hearing authorized by this subdivision, at which the ward shall be entitled to representation by counsel, the court shall consider the alleged violation of conditions of supervision, the risks and needs presented by the ward, and the supervision programs and sanctions that are available for the ward. Modification may include, as a sanction for a finding of a serious violation or a series of repeated violations of the conditions of supervision, an order for the reconfinement of a ward under 18 years of age in a juvenile facility, or for the reconfinement of a ward 18 years of age or older in a juvenile facility as authorized by Section 208.5, or for the reconfinement of a ward 18 years of age or older in a local adult facility as authorized by subdivision (b), or or, until July 1, 2021, the Division of Juvenile Facilities Justice as authorized by subdivision (c). The ward shall be fully informed by the court of the terms, conditions, responsibilities, and sanctions that are relevant to the order that is adopted by the court. The procedure of the supervision modification hearing, including the detention status of the ward in the event continuances are ordered by the court, shall be consistent with the rules, rights, and procedures applicable to delinquency disposition hearings, as described in Article 17 (commencing with Section 675) of Chapter 2 of Part 1 of Division 2.(b) Notwithstanding any other law, subject to Chapter 1.6. (commencing with Section 1980), and consistent with the maximum periods of time set forth in Section 731, in any case in which a person who was committed to and discharged from the Department of Corrections and Rehabilitation, Division of Juvenile Facilities Justice to the jurisdiction of the committing court attains 18 years of age prior to being discharged from the division or during the period of supervision by the committing court, the court may, upon a finding that the ward violated his or her their conditions of supervision and after consideration of the recommendation of the probation officer and pursuant to a hearing conducted according to the provisions of subdivision (a), order that the person be delivered to the custody of the sheriff for a period not to exceed a total of 90 days, as a custodial sanction consistent with the reentry goals and requirements imposed by the court pursuant to paragraph (6) of subdivision (b) of Section 1766. Notwithstanding any other law, the sheriff may allow the person to come into and remain in contact with other adults in the county jail or in any other county correctional facility in which he or she the person is housed.(c) Notwithstanding any other law and subject to Chapter 1.6 (commencing with Section 1980), in any case in which a person who was committed to and discharged from the Department of Corrections and Rehabilitation, Division of Juvenile Facilities, Justice, to the jurisdiction of the committing court, the juvenile court may, upon a finding that the ward violated his or her their conditions of supervision and after consideration of the recommendation of the probation officer and pursuant to a hearing conducted according to the provisions of subdivision (a), order that the person be returned to the custody of the Department of Corrections and Rehabilitation, Division of Juvenile Facilities, Justice, for a specified amount of time no shorter than 90 days and no longer than one year. This return shall be a sanction consistent with the reentry goals and requirements imposed by the court pursuant to paragraph (6) of subdivision (b) of Section 1766. A decision to return a ward to the custody of the Division of Juvenile Facilities Justice can only be made prior to July 1, 2021, and pursuant to the court making the following findings: (1) that appropriate local options and programs have been exhausted, and (2) that the ward has available confinement time that is greater than or equal to the length of the return.(d) Upon ordering a ward to the custody of the Division of Juvenile Facilities, Justice, the court shall send to the Division of Juvenile Facilities Justice a copy of its order along with a copy of the wards probation plans and history while under the supervision of the county.(e)This section shall become operative on January 1, 2013.SEC. 20. Section 1991 of the Welfare and Institutions Code is amended to read:1991. (a) Commencing with the 2021-22 202122 fiscal year, and annually thereafter, there shall be an allocation to the county for use by the county to provide appropriate rehabilitative housing and supervision services for the population specified in subdivision (b) of Section 1990. In making allocations, the Board of Supervisors shall consider the plan required in Section 1995. Any entity receiving a direct allocation of funding from the Board of Supervisors under this section for any secure residential placement for court ordered detention will be subject to existing regulations. A With the exception of county probation departments, a local public agency that has primary responsibility for prosecuting or making arrests or detentions shall not provide rehabilitative and supervision services for the population specified in subdivision (b) of Section 1990 or receive funding pursuant to this section:(1) For the 2021-22 202122 fiscal year, thirty-nine million nine hundred forty-nine thousand dollars ($39,949,000) shall be appropriated from the General Fund to provide appropriate rehabilitative and supervision services for the population specified in subdivision (b) of Section 1990 based on a projected average daily population of 177.6 wards. The by-county distribution shall be based on 30 percent of the per-county percentage of the average number of wards committed to the Department of Corrections and Rehabilitation, Division of Juvenile Justice, as of December 31, 2018, June 30, 2019, and December 31, 2019, 50 percent of the by-county distribution of juveniles adjudicated for certain violent and serious felony crime categories per 2018 Juvenile Court and Probation Statistical System data, updated annually based on the most recently available data, and 20 percent of the by-county distribution of all individuals between 10 and 17 years of age, inclusive, from the preceding calendar year.(2) For the 2022-23 202223 fiscal year, one hundred eighteen million three hundred thirty-nine thousand dollars ($118,339,000) shall be appropriated from the General Fund to provide appropriate rehabilitative and supervision services for the population specified in subdivision (b) of Section 1990. The by-county distribution is based on the per-county percentage referenced in paragraph (1) of subdivision (a) and a projected average daily population of 526 wards.(3) For the 2023-24 202324 fiscal year, one hundred ninety two million thirty-seven thousand dollars ($192,037,000) shall be appropriated from the General Fund to provide appropriate rehabilitative and supervision services for the population specified in subdivision (b) Section 1990. The by-county distribution is based the per-county percentage referenced in paragraph (1) of subdivision (a) and a projected average daily population of 853.5 wards.(4) For the 2024-25 202425 fiscal year and each year thereafter, two hundred eight million eight hundred thousand dollars ($208,800,000) shall be appropriated from the General Fund to provide appropriate rehabilitative and supervision services for the population specified in subdivision (b) of Section 1990 based on a projected average daily population of 928 wards. The Governor and the Legislature shall work with stakeholders to establish a distribution methodology for the funding in this paragraph by January 10, 2024, and ongoing that improves outcomes for this population.(5) The Department of Finance shall increase to no more than two hundred fifty thousand dollars ($250,000) the award amount for any county whose allocation as calculated pursuant to paragraphs (1), (2), (3), and (4) totals less than two hundred fifty thousand dollars ($250,000). The appropriation in paragraphs (1), (2), (3), and (4) shall be increased by the amount(s) needed to bring each counties allocation to $250,000.(b) Commencing with the 2024-25 202425 fiscal year, the allocations determined by paragraphs (4) and (5) of subdivision (a) and shall be adjusted annually by a rate commensurate with any applicable growth in the Juvenile Justice Growth Special Account in the prior fiscal year. Each year this growth shall become additive to the next years base allocation.(c) By September July 1, 2021, and each September July 1 annually thereafter, the Department of Finance shall allocate the amount calculated in paragraphs (1), (2), (3), (4), and (5) of subdivision (a) from the General Fund and provide a schedule for the allocation of funds among counties to the State Controller. The State Controller shall allocate these funds in monthly installments according to the same schedule for allocations from the Youthful Offender Block Grant Special Account. no later than August 1 each year, consistent with the schedule provided by the Department of Finance.SEC. 21. Section 2250 of the Welfare and Institutions Code is amended to read:2250. (a) Nine million six hundred thousand dollars ($9,600,000) is hereby appropriated from the General Fund to the Youth Programs and Facilities Grant Program, which shall be administered by the Board of State and Community Corrections, to award one-time grants, to counties for the purpose of providing resources for infrastructure related needs and improvements to assist counties in the development of a local continuum of care.(b) Each entity receiving a grant from the Youth Programs and Facilities Grant Program shall submit a detailed report to the office with the following information:(1) An accounting of expenditures.(2) A description of the physical and system enhancements made.(3) How many regional placement beds were supported with the funding.(4) What proportion of the regional placement beds were contracted to other counties and which counties.(c) A With the exception of county probation departments, a local public agency that has responsibility for making arrests and detaining suspects as its primary responsibility, or which is responsible for prosecutions, is ineligible to apply for this grant.(d) Funds from the Youth Programs and Facilities Grant Program shall not be used by counties to enter into contracts with private entities whose primary business is the custodial confinement of adults or youth in a prison or prison-like setting.(e) (1) The Board of State and Community Corrections shall complete and submit, no later than October 1, 2024, a report to the budget and public safety policy committees of the Legislature describing the expenditures of the Youth Programs and Facilities Grant Program, including, but not limited to, recipients and award amounts, how funding was spent, how many regional placements were supported and a detailed description of the counties that contracted to utilize the regional facility beds. The report shall also be made available to the public on the boards internet website.(2) The report required by paragraph (1) shall be submitted in compliance with Section 9795 of the Government Code.(f) Any costs incurred by the office in connection with the development or administration of the grant program shall be deducted from the amount appropriated before awarding any grants, not to exceed five percent of the amount appropriated.(g) This chapter shall remain in effect only until January 1, 2026, and as of that date is repealed.SEC. 22. Fifty thousand dollars ($50,000) is hereby appropriated from the General Fund in the 202122 fiscal year to the Adult Reentry Grant administered by the Board of State and Community Corrections to support rental assistance programs.SEC. 23. This act is a bill providing for appropriations related to the Budget Bill within the meaning of subdivision (e) of Section 12 of Article IV of the California Constitution, has been identified as related to the budget in the Budget Bill, and shall take effect immediately.SECTION 1.It is the intent of the Legislature to enact statutory changes relating to the Budget Act of 2021.
136	57
137	58		The people of the State of California do enact as follows:
138	59
139	60		## The people of the State of California do enact as follows:
140	61
141		-	SECTION 1. Section ~~8654.2~~ is ~~added to the Government Code,~~ to read:~~8654.2~~. (a) ~~There~~ is ~~hereby created the California Emergency Relief Fund as~~ a ~~special fund~~ in the ~~State Treasury~~. This ~~fund~~ is ~~established~~ to ~~provide emergency resources or relief relating~~ to ~~state~~ of ~~emergency declarations~~ by the ~~Governor.(b) The sum~~ of ~~one hundred fifty million dollars ($150~~,~~000,000) is hereby transferred from the General Fund~~ to ~~the California Emergency Relief Fund for purposes relating to the COVID-19 emergency proclaimed by the Governor on March 4, 2020~~.(c) ~~For the purposes~~ of ~~providing emergency relief to small business impacted by the COVID-19 pandemic~~, one hundred fifty million dollars ($150,000,000) California Emergency Relief Fund is appropriated to the Office of Small Business Advocate within the Governors Office of Business and Economic Development for a ~~closed round to fund small business grant applications waitlisted from previous rounds~~ of the ~~California Small Business COVID-19 Relief Grant Program (Article 8 (commencing with Section 12100.80)~~ of ~~Chapter 1.6~~ of ~~Part 2 of Division 3 of Title 2 of the Government Code)~~.
	62	+	SECTION 1. Section 3056 of the Penal Code is amended to read:3056. (a) Prisoners on parole shall remain under the supervision of the department but shall not be returned to prison except as provided in subdivision (b) or as provided by subdivision (c) of Section 3000.09. A parolee awaiting a parole revocation hearing may be housed in a county jail while awaiting revocation proceedings. If a parolee is housed in a county jail, he or she they shall be housed in the county in which he or she was they were arrested or the county in which a petition to revoke parole has been filed or, if there is no county jail in that county, in the housing facility with which that county has contracted to house jail inmates. Additionally, except as provided by subdivision (c) of Section 3000.09, upon revocation of parole, a parolee may be housed in a county jail for a maximum of 180 days per revocation. When housed in county facilities, parolees shall be under the sole legal custody and jurisdiction of local county facilities. A parolee shall remain under the sole legal custody and jurisdiction of the local county or local correctional administrator, even if placed in an alternative custody program in lieu of incarceration, including, but not limited to, work furlough and electronic home detention. When a parolee is under the legal custody and jurisdiction of a county facility awaiting parole revocation proceedings or upon revocation, he or she the parolee shall not be under the parole supervision or jurisdiction of the department. Unless otherwise serving a period of flash incarceration, whenever a parolee who is subject to this section has been arrested, with or without a warrant or the filing of a petition for revocation with the court, the court may order the release of the parolee from custody under any terms and conditions the court deems appropriate. When released from the county facility or county alternative custody program following a period of custody for revocation of parole or because no violation of parole is found, the parolee shall be returned to the parole supervision of the department for the duration of parole.(b) Inmates paroled pursuant to Section 3000.1 may be returned to prison following the revocation of parole by the Board of Parole Hearings until July 1, 2013, and thereafter by a court pursuant to Section 3000.08.(c) A Until July 1, 2021, a parolee who is subject to subdivision (a), but who is under 18 years of age, may be housed in a facility of the Division of Juvenile Facilities, Justice, Department of Corrections and Rehabilitation.
142	63
143		-	SECTION 1. Section ~~8654.2~~ is ~~added to the Government Code,~~ to read:
	64	+	SECTION 1. Section 3056 of the Penal Code is amended to read:
144	65
145	66		### SECTION 1.
146	67
147		-	~~8654.2~~. (a) ~~There~~ is ~~hereby created the California Emergency Relief Fund as~~ a ~~special fund~~ in the ~~State Treasury~~. This ~~fund~~ is ~~established~~ to ~~provide emergency resources or relief relating~~ to ~~state~~ of ~~emergency declarations~~ by the ~~Governor.(b) The sum~~ of ~~one hundred fifty million dollars ($150~~,~~000,000) is hereby transferred from the General Fund~~ to ~~the California Emergency Relief Fund for purposes relating to the COVID-19 emergency proclaimed by the Governor on March 4, 2020~~.(c) ~~For the purposes~~ of ~~providing emergency relief to small business impacted by the COVID-19 pandemic~~, one hundred fifty million dollars ($150,000,000) California Emergency Relief Fund is appropriated to the Office of Small Business Advocate within the Governors Office of Business and Economic Development for a ~~closed round to fund small business grant applications waitlisted from previous rounds~~ of the ~~California Small Business COVID-19 Relief Grant Program (Article 8 (commencing with Section 12100.80)~~ of ~~Chapter 1.6~~ of ~~Part 2 of Division 3 of Title 2 of the Government Code)~~.
	68	+	3056. (a) Prisoners on parole shall remain under the supervision of the department but shall not be returned to prison except as provided in subdivision (b) or as provided by subdivision (c) of Section 3000.09. A parolee awaiting a parole revocation hearing may be housed in a county jail while awaiting revocation proceedings. If a parolee is housed in a county jail, he or she they shall be housed in the county in which he or she was they were arrested or the county in which a petition to revoke parole has been filed or, if there is no county jail in that county, in the housing facility with which that county has contracted to house jail inmates. Additionally, except as provided by subdivision (c) of Section 3000.09, upon revocation of parole, a parolee may be housed in a county jail for a maximum of 180 days per revocation. When housed in county facilities, parolees shall be under the sole legal custody and jurisdiction of local county facilities. A parolee shall remain under the sole legal custody and jurisdiction of the local county or local correctional administrator, even if placed in an alternative custody program in lieu of incarceration, including, but not limited to, work furlough and electronic home detention. When a parolee is under the legal custody and jurisdiction of a county facility awaiting parole revocation proceedings or upon revocation, he or she the parolee shall not be under the parole supervision or jurisdiction of the department. Unless otherwise serving a period of flash incarceration, whenever a parolee who is subject to this section has been arrested, with or without a warrant or the filing of a petition for revocation with the court, the court may order the release of the parolee from custody under any terms and conditions the court deems appropriate. When released from the county facility or county alternative custody program following a period of custody for revocation of parole or because no violation of parole is found, the parolee shall be returned to the parole supervision of the department for the duration of parole.(b) Inmates paroled pursuant to Section 3000.1 may be returned to prison following the revocation of parole by the Board of Parole Hearings until July 1, 2013, and thereafter by a court pursuant to Section 3000.08.(c) A Until July 1, 2021, a parolee who is subject to subdivision (a), but who is under 18 years of age, may be housed in a facility of the Division of Juvenile Facilities, Justice, Department of Corrections and Rehabilitation.
148	69
149		-	~~8654.2~~. (a) ~~There~~ is ~~hereby created the California Emergency Relief Fund as~~ a ~~special fund~~ in the ~~State Treasury~~. This ~~fund~~ is ~~established~~ to ~~provide emergency resources or relief relating~~ to ~~state~~ of ~~emergency declarations~~ by the ~~Governor.(b) The sum~~ of ~~one hundred fifty million dollars ($150~~,~~000,000) is hereby transferred from the General Fund~~ to ~~the California Emergency Relief Fund for purposes relating to the COVID-19 emergency proclaimed by the Governor on March 4, 2020~~.(c) ~~For the purposes~~ of ~~providing emergency relief to small business impacted by the COVID-19 pandemic~~, one hundred fifty million dollars ($150,000,000) California Emergency Relief Fund is appropriated to the Office of Small Business Advocate within the Governors Office of Business and Economic Development for a ~~closed round to fund small business grant applications waitlisted from previous rounds~~ of the ~~California Small Business COVID-19 Relief Grant Program (Article 8 (commencing with Section 12100.80)~~ of ~~Chapter 1.6~~ of ~~Part 2 of Division 3 of Title 2 of the Government Code)~~.
	70	+	3056. (a) Prisoners on parole shall remain under the supervision of the department but shall not be returned to prison except as provided in subdivision (b) or as provided by subdivision (c) of Section 3000.09. A parolee awaiting a parole revocation hearing may be housed in a county jail while awaiting revocation proceedings. If a parolee is housed in a county jail, he or she they shall be housed in the county in which he or she was they were arrested or the county in which a petition to revoke parole has been filed or, if there is no county jail in that county, in the housing facility with which that county has contracted to house jail inmates. Additionally, except as provided by subdivision (c) of Section 3000.09, upon revocation of parole, a parolee may be housed in a county jail for a maximum of 180 days per revocation. When housed in county facilities, parolees shall be under the sole legal custody and jurisdiction of local county facilities. A parolee shall remain under the sole legal custody and jurisdiction of the local county or local correctional administrator, even if placed in an alternative custody program in lieu of incarceration, including, but not limited to, work furlough and electronic home detention. When a parolee is under the legal custody and jurisdiction of a county facility awaiting parole revocation proceedings or upon revocation, he or she the parolee shall not be under the parole supervision or jurisdiction of the department. Unless otherwise serving a period of flash incarceration, whenever a parolee who is subject to this section has been arrested, with or without a warrant or the filing of a petition for revocation with the court, the court may order the release of the parolee from custody under any terms and conditions the court deems appropriate. When released from the county facility or county alternative custody program following a period of custody for revocation of parole or because no violation of parole is found, the parolee shall be returned to the parole supervision of the department for the duration of parole.(b) Inmates paroled pursuant to Section 3000.1 may be returned to prison following the revocation of parole by the Board of Parole Hearings until July 1, 2013, and thereafter by a court pursuant to Section 3000.08.(c) A Until July 1, 2021, a parolee who is subject to subdivision (a), but who is under 18 years of age, may be housed in a facility of the Division of Juvenile Facilities, Justice, Department of Corrections and Rehabilitation.
150	71
151		-	~~8654.2~~. (a) ~~There~~ is ~~hereby created the California Emergency Relief Fund as~~ a ~~special fund~~ in the ~~State Treasury~~. This ~~fund~~ is ~~established~~ to ~~provide emergency resources or relief relating~~ to ~~state~~ of ~~emergency declarations~~ by the ~~Governor.(b) The sum~~ of ~~one hundred fifty million dollars ($150~~,~~000,000) is hereby transferred from the General Fund~~ to ~~the California Emergency Relief Fund for purposes relating to the COVID-19 emergency proclaimed by the Governor on March 4, 2020~~.(c) ~~For the purposes~~ of ~~providing emergency relief to small business impacted by the COVID-19 pandemic~~, one hundred fifty million dollars ($150,000,000) California Emergency Relief Fund is appropriated to the Office of Small Business Advocate within the Governors Office of Business and Economic Development for a ~~closed round to fund small business grant applications waitlisted from previous rounds~~ of the ~~California Small Business COVID-19 Relief Grant Program (Article 8 (commencing with Section 12100.80)~~ of ~~Chapter 1.6~~ of ~~Part 2 of Division 3 of Title 2 of the Government Code)~~.
	72	+	3056. (a) Prisoners on parole shall remain under the supervision of the department but shall not be returned to prison except as provided in subdivision (b) or as provided by subdivision (c) of Section 3000.09. A parolee awaiting a parole revocation hearing may be housed in a county jail while awaiting revocation proceedings. If a parolee is housed in a county jail, he or she they shall be housed in the county in which he or she was they were arrested or the county in which a petition to revoke parole has been filed or, if there is no county jail in that county, in the housing facility with which that county has contracted to house jail inmates. Additionally, except as provided by subdivision (c) of Section 3000.09, upon revocation of parole, a parolee may be housed in a county jail for a maximum of 180 days per revocation. When housed in county facilities, parolees shall be under the sole legal custody and jurisdiction of local county facilities. A parolee shall remain under the sole legal custody and jurisdiction of the local county or local correctional administrator, even if placed in an alternative custody program in lieu of incarceration, including, but not limited to, work furlough and electronic home detention. When a parolee is under the legal custody and jurisdiction of a county facility awaiting parole revocation proceedings or upon revocation, he or she the parolee shall not be under the parole supervision or jurisdiction of the department. Unless otherwise serving a period of flash incarceration, whenever a parolee who is subject to this section has been arrested, with or without a warrant or the filing of a petition for revocation with the court, the court may order the release of the parolee from custody under any terms and conditions the court deems appropriate. When released from the county facility or county alternative custody program following a period of custody for revocation of parole or because no violation of parole is found, the parolee shall be returned to the parole supervision of the department for the duration of parole.(b) Inmates paroled pursuant to Section 3000.1 may be returned to prison following the revocation of parole by the Board of Parole Hearings until July 1, 2013, and thereafter by a court pursuant to Section 3000.08.(c) A Until July 1, 2021, a parolee who is subject to subdivision (a), but who is under 18 years of age, may be housed in a facility of the Division of Juvenile Facilities, Justice, Department of Corrections and Rehabilitation.
152	73
153	74
154	75
155		-	~~8654.2~~. (a) ~~There~~ is ~~hereby created the California Emergency Relief Fund as~~ a ~~special fund~~ in the ~~State Treasury~~. This ~~fund~~ is ~~established~~ to ~~provide emergency resources or relief relating to state~~ of ~~emergency declarations by~~ the ~~Governor~~.
	76	+	3056. (a) Prisoners on parole shall remain under the supervision of the department but shall not be returned to prison except as provided in subdivision (b) or as provided by subdivision (c) of Section 3000.09. A parolee awaiting a parole revocation hearing may be housed in a county jail while awaiting revocation proceedings. If a parolee is housed in a county jail, he or she they shall be housed in the county in which he or she was they were arrested or the county in which a petition to revoke parole has been filed or, if there is no county jail in that county, in the housing facility with which that county has contracted to house jail inmates. Additionally, except as provided by subdivision (c) of Section 3000.09, upon revocation of parole, a parolee may be housed in a county jail for a maximum of 180 days per revocation. When housed in county facilities, parolees shall be under the sole legal custody and jurisdiction of local county facilities. A parolee shall remain under the sole legal custody and jurisdiction of the local county or local correctional administrator, even if placed in an alternative custody program in lieu of incarceration, including, but not limited to, work furlough and electronic home detention. When a parolee is under the legal custody and jurisdiction of a county facility awaiting parole revocation proceedings or upon revocation, he or she the parolee shall not be under the parole supervision or jurisdiction of the department. Unless otherwise serving a period of flash incarceration, whenever a parolee who is subject to this section has been arrested, with or without a warrant or the filing of a petition for revocation with the court, the court may order the release of the parolee from custody under any terms and conditions the court deems appropriate. When released from the county facility or county alternative custody program following a period of custody for revocation of parole or because no violation of parole is found, the parolee shall be returned to the parole supervision of the department for the duration of parole.
156	77
157		-	(b) The ~~sum~~ of ~~one hundred fifty million dollars ($150,000,000) is hereby transferred from the General Fund to the California Emergency Relief Fund for purposes relating to the COVID-19 emergency proclaimed~~ by the ~~Governor on March 4~~, ~~2020~~.
	78	+	(b) Inmates paroled pursuant to Section 3000.1 may be returned to prison following the revocation of parole by the Board of Parole Hearings until July 1, 2013, and thereafter by a court pursuant to Section 3000.08.
158	79
159		-	(c) ~~For the purposes~~ of ~~providing emergency relief to small business impacted by the COVID-19 pandemic~~, one hundred fifty million dollars ($150,000,000) California Emergency Relief Fund is appropriated to the Office of Small Business Advocate within the Governors Office of Business and Economic Development for a ~~closed round to fund small business grant applications waitlisted from previous rounds~~ of the ~~California Small Business COVID-19 Relief Grant Program (Article 8 (commencing with Section 12100.80)~~ of ~~Chapter 1.6~~ of ~~Part 2 of Division 3 of Title 2 of the Government Code)~~.
	80	+	(c) A Until July 1, 2021, a parolee who is subject to subdivision (a), but who is under 18 years of age, may be housed in a facility of the Division of Juvenile Facilities, Justice, Department of Corrections and Rehabilitation.
160	81
161		-	SEC. 2. Section 16429.7 is added to the Government Code, to read:16429.7. (a) Notwithstanding any other law, any assistance or relief authorized by, and provided to an individual by a utility applicant under, the California Arrearage Payment Program (CAPP) established pursuant to this article shall be treated in the same manner as the federal earned income refund for the purpose of determining the individuals eligibility to receive benefits under Division 9 (commencing with Section 10000) of the Welfare and Institutions Code~~, excluding benefits~~ under ~~Chapter 7~~ (commencing with Section ~~14000~~) of Part 3 of Division 9 of the ~~Welfare~~ and ~~Institutions Code,~~ or ~~amounts of those benefits.(b) Notwithstanding any~~ other ~~law, any assistance or relief authorized by, and provided to an individual by a utility applicant under, the California Arrearage Payment Program (CAPP) established~~ pursuant to ~~this article shall not be taken into account~~ as income, and shall not be taken into account as resources for a period of 12 months from receipt, for purposes of determining the eligibility of that individual or any other individual for benefits or assistance or the amount or extent of benefits or assistance under any state or local program not covered in ~~subdivision (a). With respect to a state or local program~~, ~~this subdivision shall only be implemented to the extent that it~~ does not ~~conflict with federal law relating~~ to ~~that program~~, ~~and that any required federal approval or waiver is first obtained for that program~~.
	82	+	SEC. 2. Section 208 of the Welfare and Institutions Code is amended to read:208. (a) When any person under 18 years of age is detained in or sentenced to any institution in which adults are confined, an adult facility, including a jail or other facility established for the purpose of confinement of adults, it shall be unlawful to permit such that person to come or remain in contact with such adults. adults confined there.(b) No A person who is a ward or dependent child of the juvenile court who is detained in or committed to any state hospital or other state facility shall not be permitted to come or remain in contact with any adult person who has been committed to any state hospital or other state facility as a mentally disordered sex offender under the provisions of Article 1 (commencing with Section 6300) of Chapter 2 of Part 2 of Division 6, or with any adult person who has been charged in an accusatory pleading with the commission of any sex offense for which registration of the convicted offender is required under Section 290 of the Penal Code and who has been committed to any state hospital or other state facility pursuant to Section 1026 or 1370 of the Penal Code.(c) As used in this section, contact does not include participation in supervised group therapy or other supervised treatment activities, participation in work furlough programs, or participation in hospital recreational activities which are directly supervised by employees of the hospital, so long as living arrangements are strictly segregated and all precautions are taken to prevent unauthorized associations.(d) This section shall be operative January 1, 1998.
162	83
163		-	SEC. 2. Section ~~16429.7~~ is ~~added to the Government Code,~~ to read:
	84	+	SEC. 2. Section 208 of the Welfare and Institutions Code is amended to read:
164	85
165	86		### SEC. 2.
166	87
167		-	~~16429.7~~. (a) ~~Notwithstanding~~ any ~~other law,~~ any ~~assistance~~ or ~~relief authorized by, and provided to an individual by a utility applicant under, the California Arrearage Payment Program (CAPP)~~ established ~~pursuant to this article shall be treated in the same manner as the federal earned income refund~~ for the purpose of ~~determining~~ the ~~individuals eligibility~~ to ~~receive benefits~~ under ~~Division 9~~ (commencing with Section ~~10000~~) of the ~~Welfare and Institutions Code, excluding benefits~~ under ~~Chapter 7 (commencing with~~ Section ~~14000) of Part 3 of Division 9~~ of the ~~Welfare~~ and ~~Institutions Code,~~ or ~~amounts of those benefits.(b) Notwithstanding any~~ other ~~law, any assistance or relief authorized by, and provided to an individual by a utility applicant under, the California Arrearage Payment Program (CAPP) established~~ pursuant to ~~this article shall not be taken into account~~ as income, and shall not be taken into account as resources for a period of 12 months from receipt, for purposes of determining the eligibility of that individual or any other individual for benefits or assistance or the amount or extent of benefits or assistance under any state or local program not covered in ~~subdivision (a). With respect to a state or local program~~, ~~this subdivision shall only be implemented to the extent that it~~ does not ~~conflict with federal law relating~~ to ~~that program~~, ~~and that any required federal approval or waiver is first obtained for that program~~.
	88	+	208. (a) When any person under 18 years of age is detained in or sentenced to any institution in which adults are confined, an adult facility, including a jail or other facility established for the purpose of confinement of adults, it shall be unlawful to permit such that person to come or remain in contact with such adults. adults confined there.(b) No A person who is a ward or dependent child of the juvenile court who is detained in or committed to any state hospital or other state facility shall not be permitted to come or remain in contact with any adult person who has been committed to any state hospital or other state facility as a mentally disordered sex offender under the provisions of Article 1 (commencing with Section 6300) of Chapter 2 of Part 2 of Division 6, or with any adult person who has been charged in an accusatory pleading with the commission of any sex offense for which registration of the convicted offender is required under Section 290 of the Penal Code and who has been committed to any state hospital or other state facility pursuant to Section 1026 or 1370 of the Penal Code.(c) As used in this section, contact does not include participation in supervised group therapy or other supervised treatment activities, participation in work furlough programs, or participation in hospital recreational activities which are directly supervised by employees of the hospital, so long as living arrangements are strictly segregated and all precautions are taken to prevent unauthorized associations.(d) This section shall be operative January 1, 1998.
168	89
169		-	~~16429.7~~. (a) ~~Notwithstanding~~ any ~~other law,~~ any ~~assistance~~ or ~~relief authorized by, and provided to an individual by a utility applicant under, the California Arrearage Payment Program (CAPP)~~ established ~~pursuant to this article shall be treated in the same manner as the federal earned income refund~~ for the purpose of ~~determining~~ the ~~individuals eligibility~~ to ~~receive benefits~~ under ~~Division 9~~ (commencing with Section ~~10000~~) of the ~~Welfare and Institutions Code, excluding benefits~~ under ~~Chapter 7 (commencing with~~ Section ~~14000) of Part 3 of Division 9~~ of the ~~Welfare~~ and ~~Institutions Code,~~ or ~~amounts of those benefits.(b) Notwithstanding any~~ other ~~law, any assistance or relief authorized by, and provided to an individual by a utility applicant under, the California Arrearage Payment Program (CAPP) established~~ pursuant to ~~this article shall not be taken into account~~ as income, and shall not be taken into account as resources for a period of 12 months from receipt, for purposes of determining the eligibility of that individual or any other individual for benefits or assistance or the amount or extent of benefits or assistance under any state or local program not covered in ~~subdivision (a). With respect to a state or local program~~, ~~this subdivision shall only be implemented to the extent that it~~ does not ~~conflict with federal law relating~~ to ~~that program~~, ~~and that any required federal approval or waiver is first obtained for that program~~.
	90	+	208. (a) When any person under 18 years of age is detained in or sentenced to any institution in which adults are confined, an adult facility, including a jail or other facility established for the purpose of confinement of adults, it shall be unlawful to permit such that person to come or remain in contact with such adults. adults confined there.(b) No A person who is a ward or dependent child of the juvenile court who is detained in or committed to any state hospital or other state facility shall not be permitted to come or remain in contact with any adult person who has been committed to any state hospital or other state facility as a mentally disordered sex offender under the provisions of Article 1 (commencing with Section 6300) of Chapter 2 of Part 2 of Division 6, or with any adult person who has been charged in an accusatory pleading with the commission of any sex offense for which registration of the convicted offender is required under Section 290 of the Penal Code and who has been committed to any state hospital or other state facility pursuant to Section 1026 or 1370 of the Penal Code.(c) As used in this section, contact does not include participation in supervised group therapy or other supervised treatment activities, participation in work furlough programs, or participation in hospital recreational activities which are directly supervised by employees of the hospital, so long as living arrangements are strictly segregated and all precautions are taken to prevent unauthorized associations.(d) This section shall be operative January 1, 1998.
170	91
171		-	~~16429.7~~. (a) ~~Notwithstanding~~ any ~~other law,~~ any ~~assistance~~ or ~~relief authorized by, and provided to an individual by a utility applicant under, the California Arrearage Payment Program (CAPP)~~ established ~~pursuant to this article shall be treated in the same manner as the federal earned income refund~~ for the purpose of ~~determining~~ the ~~individuals eligibility~~ to ~~receive benefits~~ under ~~Division 9~~ (commencing with Section ~~10000~~) of the ~~Welfare and Institutions Code, excluding benefits~~ under ~~Chapter 7 (commencing with~~ Section ~~14000) of Part 3 of Division 9~~ of the ~~Welfare~~ and ~~Institutions Code,~~ or ~~amounts of those benefits.(b) Notwithstanding any~~ other ~~law, any assistance or relief authorized by, and provided to an individual by a utility applicant under, the California Arrearage Payment Program (CAPP) established~~ pursuant to ~~this article shall not be taken into account~~ as income, and shall not be taken into account as resources for a period of 12 months from receipt, for purposes of determining the eligibility of that individual or any other individual for benefits or assistance or the amount or extent of benefits or assistance under any state or local program not covered in ~~subdivision (a). With respect to a state or local program~~, ~~this subdivision shall only be implemented to the extent that it~~ does not ~~conflict with federal law relating~~ to ~~that program~~, ~~and that any required federal approval or waiver is first obtained for that program~~.
	92	+	208. (a) When any person under 18 years of age is detained in or sentenced to any institution in which adults are confined, an adult facility, including a jail or other facility established for the purpose of confinement of adults, it shall be unlawful to permit such that person to come or remain in contact with such adults. adults confined there.(b) No A person who is a ward or dependent child of the juvenile court who is detained in or committed to any state hospital or other state facility shall not be permitted to come or remain in contact with any adult person who has been committed to any state hospital or other state facility as a mentally disordered sex offender under the provisions of Article 1 (commencing with Section 6300) of Chapter 2 of Part 2 of Division 6, or with any adult person who has been charged in an accusatory pleading with the commission of any sex offense for which registration of the convicted offender is required under Section 290 of the Penal Code and who has been committed to any state hospital or other state facility pursuant to Section 1026 or 1370 of the Penal Code.(c) As used in this section, contact does not include participation in supervised group therapy or other supervised treatment activities, participation in work furlough programs, or participation in hospital recreational activities which are directly supervised by employees of the hospital, so long as living arrangements are strictly segregated and all precautions are taken to prevent unauthorized associations.(d) This section shall be operative January 1, 1998.
172	93
173	94
174	95
175		-	~~16429.7~~. (a) ~~Notwithstanding~~ any ~~other law,~~ any ~~assistance~~ or ~~relief authorized by, and provided to an individual by a utility applicant under, the California Arrearage Payment Program (CAPP)~~ established ~~pursuant to this article shall be treated in the same manner as the federal earned income refund~~ for the purpose of ~~determining the individuals eligibility~~ to ~~receive benefits under Division 9 (commencing~~ with ~~Section 10000)~~ ~~of the Welfare and Institutions Code, excluding benefits under Chapter 7 (commencing with Section 14000) of Part 3 of Division 9 of the Welfare and Institutions Code, or amounts of those benefits~~.
	96	+	208. (a) When any person under 18 years of age is detained in or sentenced to any institution in which adults are confined, an adult facility, including a jail or other facility established for the purpose of confinement of adults, it shall be unlawful to permit such that person to come or remain in contact with such adults. adults confined there.
176	97
177		-	(b) ~~Notwithstanding~~ any ~~other law, any assistance~~ or ~~relief authorized by, and provided to an individual by a utility applicant under, the California Arrearage Payment Program (CAPP) established pursuant to this article~~ shall not be ~~taken into account as income, and shall not be taken into account as resources for a period of 12 months from receipt, for purposes of determining the eligibility of that individual~~ or any ~~other individual for benefits or assistance or the amount or extent of benefits or assistance under~~ any state or ~~local program not covered~~ in ~~subdivision (a).~~ With ~~respect~~ to a state or ~~local program,~~ ~~this subdivision shall only be implemented~~ to ~~the extent that it does not conflict with federal law relating to that program, and that any required federal approval~~ or ~~waiver is first obtained for that program~~.
	98	+	(b) No A person who is a ward or dependent child of the juvenile court who is detained in or committed to any state hospital or other state facility shall not be permitted to come or remain in contact with any adult person who has been committed to any state hospital or other state facility as a mentally disordered sex offender under the provisions of Article 1 (commencing with Section 6300) of Chapter 2 of Part 2 of Division 6, or with any adult person who has been charged in an accusatory pleading with the commission of any sex offense for which registration of the convicted offender is required under Section 290 of the Penal Code and who has been committed to any state hospital or other state facility pursuant to Section 1026 or 1370 of the Penal Code.
178	99
179		-	~~SEC. 3.~~ Section ~~116773.5 is added to the Health and Safety Code~~, ~~to read:116773.5. (a) Notwithstanding any~~ other ~~law~~, ~~any assistance~~ or ~~relief authorized by,~~ ~~and provided~~ by a community water system or a wastewater treatment provider to an individual pursuant to, this chapter shall be treated in the same manner as the federal earned income refund for the purpose of determining the individuals eligibility to receive benefits under Division 9 (commencing with Section 10000) of the ~~Welfare~~ and ~~Institutions Code,~~ excluding benefits under Chapter 7 (commencing with Section 14000) of Part 3 of Division 9 of the Welfare and Institutions Code, or amounts of those benefits. (b) Notwithstanding any other law, any assistance or relief authorized by, and provided by a community water system or a wastewater treatment provider to an individual pursuant to, this chapter shall not be taken into account as income, and shall not be taken into account as resources for a period of 12 months from receipt, for purposes of determining the eligibility of that individual, or any other individual, for benefits or assistance or the amount or extent of benefits or assistance under any state or local program not covered in subdivision (a). With respect to a state or local program, this subdivision shall only be implemented to the extent that it does not conflict with federal law relating to that program, and that any required federal approval or waiver is first obtained for that program.
	100	+	(c) As used in this section, contact does not include participation in supervised group therapy or other supervised treatment activities, participation in work furlough programs, or participation in hospital recreational activities which are directly supervised by employees of the hospital, so long as living arrangements are strictly segregated and all precautions are taken to prevent unauthorized associations.
180	101
181		-	SEC. 3. Section 116773.5 is added to the Health and Safety Code, to read:
	102	+	(d) This section shall be operative January 1, 1998.
	103	+
	104	+	SEC. 3. Section 208.5 of the Welfare and Institutions Code is amended to read:208.5. (a) Notwithstanding any other law, any person whose case originated in juvenile court shall remain, if the person is held in secure detention, in a county juvenile facility until the person attains 25 years of age, except as provided in subdivisions (b) and (c) of this section and paragraph (4) of subdivision (a) of Section 731. A person whose case originated in juvenile court but who was sentenced in criminal court shall not serve their sentence in a juvenile facility, but if not otherwise excluded, may remain in the juvenile facility until transferred to serve their sentence in an adult facility. This section is not intended to authorize confinement in a juvenile facility where authority would not otherwise exist.(b) The probation department may petition the court to house a person who is 19 years of age or older in an adult facility, including a jail or other facility established for the purpose of confinement of adults.(c) Upon receipt of a petition to house a person who is 19 years of age or older in an adult facility, the court shall hold a hearing. There shall be a rebuttable presumption that the person will be retained in a juvenile facility. At the hearing, the court shall determine whether the person will be moved to an adult facility, and make written findings of its decision based on the totality of the following criteria:(1) The impact of being held in an adult facility on the physical and mental health and well-being of the person.(2) The benefits of continued programming at the juvenile facility and whether required education and other services called for in any juvenile court disposition or otherwise required by law or court order can be provided in the adult facility.(3) The capacity of the adult facility to separate younger and older people as needed and to provide them with safe and age-appropriate housing and program opportunities.(4) The capacity of the juvenile facility to provide needed separation of older from younger people given the youth currently housed in the facility.(5) Evidence demonstrating that the juvenile facility is unable to currently manage the persons needs without posing a significant danger to staff or other youth in the facility.(d) If a person who is 18 19 to 24 years of age, inclusive, is removed from a juvenile facility pursuant to this section, upon the motion of any party and a showing of changed circumstances, the court shall consider the criteria in subdivision (c) and determine whether the person should be housed at a juvenile facility.(e) A person who is 19 years of age or older and who has been committed to a county juvenile facility or a facility of a contracted entity shall remain in the facility and shall not be subject to a petition for transfer to an adult facility. This section is not intended to authorize or extend confinement in a juvenile facility where authority would not otherwise exist.
	105	+
	106	+	SEC. 3. Section 208.5 of the Welfare and Institutions Code is amended to read:
182	107
183	108		### SEC. 3.
184	109
185		-	~~116773~~.5. (a) Notwithstanding any other law, any ~~assistance or relief authorized by~~, and ~~provided by~~ a ~~community water system or~~ a ~~wastewater treatment provider to an individual pursuant to~~, ~~this chapter shall be treated~~ in the ~~same manner as~~ the ~~federal earned income refund~~ for the purpose of ~~determining~~ the ~~individuals eligibility~~ to ~~receive benefits under Division 9 (commencing~~ ~~with Section 10000)~~ of the ~~Welfare~~ and ~~Institutions Code,~~ ~~excluding benefits under Chapter 7 (commencing with Section 14000) of Part 3 of Division 9~~ of the ~~Welfare~~ and ~~Institutions Code,~~ or ~~amounts~~ of ~~those benefits~~. (b) ~~Notwithstanding~~ any ~~other law~~, ~~any assistance~~ or ~~relief authorized by,~~ and ~~provided by~~ a ~~community water system~~ or a ~~wastewater treatment provider to an individual pursuant to, this chapter~~ shall ~~not be taken into account as income,~~ and shall not be taken into account as resources for a period of 12 months from receipt, for purposes of determining the eligibility of that individual, or any other individual, for benefits or assistance or the amount or extent of benefits or assistance under any state or local program not covered in subdivision (a). With respect to a ~~state~~ or ~~local program,~~ ~~this subdivision shall only be implemented to the extent that it does~~ not ~~conflict with federal law relating to that program, and that any required federal approval or waiver is first obtained for that program~~.
	110	+	208.5. (a) Notwithstanding any other law, any person whose case originated in juvenile court shall remain, if the person is held in secure detention, in a county juvenile facility until the person attains 25 years of age, except as provided in subdivisions (b) and (c) of this section and paragraph (4) of subdivision (a) of Section 731. A person whose case originated in juvenile court but who was sentenced in criminal court shall not serve their sentence in a juvenile facility, but if not otherwise excluded, may remain in the juvenile facility until transferred to serve their sentence in an adult facility. This section is not intended to authorize confinement in a juvenile facility where authority would not otherwise exist.(b) The probation department may petition the court to house a person who is 19 years of age or older in an adult facility, including a jail or other facility established for the purpose of confinement of adults.(c) Upon receipt of a petition to house a person who is 19 years of age or older in an adult facility, the court shall hold a hearing. There shall be a rebuttable presumption that the person will be retained in a juvenile facility. At the hearing, the court shall determine whether the person will be moved to an adult facility, and make written findings of its decision based on the totality of the following criteria:(1) The impact of being held in an adult facility on the physical and mental health and well-being of the person.(2) The benefits of continued programming at the juvenile facility and whether required education and other services called for in any juvenile court disposition or otherwise required by law or court order can be provided in the adult facility.(3) The capacity of the adult facility to separate younger and older people as needed and to provide them with safe and age-appropriate housing and program opportunities.(4) The capacity of the juvenile facility to provide needed separation of older from younger people given the youth currently housed in the facility.(5) Evidence demonstrating that the juvenile facility is unable to currently manage the persons needs without posing a significant danger to staff or other youth in the facility.(d) If a person who is 18 19 to 24 years of age, inclusive, is removed from a juvenile facility pursuant to this section, upon the motion of any party and a showing of changed circumstances, the court shall consider the criteria in subdivision (c) and determine whether the person should be housed at a juvenile facility.(e) A person who is 19 years of age or older and who has been committed to a county juvenile facility or a facility of a contracted entity shall remain in the facility and shall not be subject to a petition for transfer to an adult facility. This section is not intended to authorize or extend confinement in a juvenile facility where authority would not otherwise exist.
186	111
187		-	~~116773~~.5. (a) Notwithstanding any other law, any ~~assistance or relief authorized by~~, and ~~provided by~~ a ~~community water system or~~ a ~~wastewater treatment provider to an individual pursuant to~~, ~~this chapter shall be treated~~ in the ~~same manner as~~ the ~~federal earned income refund~~ for the purpose of ~~determining~~ the ~~individuals eligibility~~ to ~~receive benefits under Division 9 (commencing~~ ~~with Section 10000)~~ of the ~~Welfare~~ and ~~Institutions Code,~~ ~~excluding benefits under Chapter 7 (commencing with Section 14000) of Part 3 of Division 9~~ of the ~~Welfare~~ and ~~Institutions Code,~~ or ~~amounts~~ of ~~those benefits~~. (b) ~~Notwithstanding~~ any ~~other law~~, ~~any assistance~~ or ~~relief authorized by,~~ and ~~provided by~~ a ~~community water system~~ or a ~~wastewater treatment provider to an individual pursuant to, this chapter~~ shall ~~not be taken into account as income,~~ and shall not be taken into account as resources for a period of 12 months from receipt, for purposes of determining the eligibility of that individual, or any other individual, for benefits or assistance or the amount or extent of benefits or assistance under any state or local program not covered in subdivision (a). With respect to a ~~state~~ or ~~local program,~~ ~~this subdivision shall only be implemented to the extent that it does~~ not ~~conflict with federal law relating to that program, and that any required federal approval or waiver is first obtained for that program~~.
	112	+	208.5. (a) Notwithstanding any other law, any person whose case originated in juvenile court shall remain, if the person is held in secure detention, in a county juvenile facility until the person attains 25 years of age, except as provided in subdivisions (b) and (c) of this section and paragraph (4) of subdivision (a) of Section 731. A person whose case originated in juvenile court but who was sentenced in criminal court shall not serve their sentence in a juvenile facility, but if not otherwise excluded, may remain in the juvenile facility until transferred to serve their sentence in an adult facility. This section is not intended to authorize confinement in a juvenile facility where authority would not otherwise exist.(b) The probation department may petition the court to house a person who is 19 years of age or older in an adult facility, including a jail or other facility established for the purpose of confinement of adults.(c) Upon receipt of a petition to house a person who is 19 years of age or older in an adult facility, the court shall hold a hearing. There shall be a rebuttable presumption that the person will be retained in a juvenile facility. At the hearing, the court shall determine whether the person will be moved to an adult facility, and make written findings of its decision based on the totality of the following criteria:(1) The impact of being held in an adult facility on the physical and mental health and well-being of the person.(2) The benefits of continued programming at the juvenile facility and whether required education and other services called for in any juvenile court disposition or otherwise required by law or court order can be provided in the adult facility.(3) The capacity of the adult facility to separate younger and older people as needed and to provide them with safe and age-appropriate housing and program opportunities.(4) The capacity of the juvenile facility to provide needed separation of older from younger people given the youth currently housed in the facility.(5) Evidence demonstrating that the juvenile facility is unable to currently manage the persons needs without posing a significant danger to staff or other youth in the facility.(d) If a person who is 18 19 to 24 years of age, inclusive, is removed from a juvenile facility pursuant to this section, upon the motion of any party and a showing of changed circumstances, the court shall consider the criteria in subdivision (c) and determine whether the person should be housed at a juvenile facility.(e) A person who is 19 years of age or older and who has been committed to a county juvenile facility or a facility of a contracted entity shall remain in the facility and shall not be subject to a petition for transfer to an adult facility. This section is not intended to authorize or extend confinement in a juvenile facility where authority would not otherwise exist.
188	113
189		-	~~116773~~.5. (a) Notwithstanding any other law, any ~~assistance or relief authorized by~~, and ~~provided by~~ a ~~community water system or~~ a ~~wastewater treatment provider to an individual pursuant to~~, ~~this chapter shall be treated~~ in the ~~same manner as~~ the ~~federal earned income refund~~ for the purpose of ~~determining~~ the ~~individuals eligibility~~ to ~~receive benefits under Division 9 (commencing~~ ~~with Section 10000)~~ of the ~~Welfare~~ and ~~Institutions Code,~~ ~~excluding benefits under Chapter 7 (commencing with Section 14000) of Part 3 of Division 9~~ of the ~~Welfare~~ and ~~Institutions Code,~~ or ~~amounts~~ of ~~those benefits~~. (b) ~~Notwithstanding~~ any ~~other law~~, ~~any assistance~~ or ~~relief authorized by,~~ and ~~provided by~~ a ~~community water system~~ or a ~~wastewater treatment provider to an individual pursuant to, this chapter~~ shall ~~not be taken into account as income,~~ and shall not be taken into account as resources for a period of 12 months from receipt, for purposes of determining the eligibility of that individual, or any other individual, for benefits or assistance or the amount or extent of benefits or assistance under any state or local program not covered in subdivision (a). With respect to a ~~state~~ or ~~local program,~~ ~~this subdivision shall only be implemented to the extent that it does~~ not ~~conflict with federal law relating to that program, and that any required federal approval or waiver is first obtained for that program~~.
	114	+	208.5. (a) Notwithstanding any other law, any person whose case originated in juvenile court shall remain, if the person is held in secure detention, in a county juvenile facility until the person attains 25 years of age, except as provided in subdivisions (b) and (c) of this section and paragraph (4) of subdivision (a) of Section 731. A person whose case originated in juvenile court but who was sentenced in criminal court shall not serve their sentence in a juvenile facility, but if not otherwise excluded, may remain in the juvenile facility until transferred to serve their sentence in an adult facility. This section is not intended to authorize confinement in a juvenile facility where authority would not otherwise exist.(b) The probation department may petition the court to house a person who is 19 years of age or older in an adult facility, including a jail or other facility established for the purpose of confinement of adults.(c) Upon receipt of a petition to house a person who is 19 years of age or older in an adult facility, the court shall hold a hearing. There shall be a rebuttable presumption that the person will be retained in a juvenile facility. At the hearing, the court shall determine whether the person will be moved to an adult facility, and make written findings of its decision based on the totality of the following criteria:(1) The impact of being held in an adult facility on the physical and mental health and well-being of the person.(2) The benefits of continued programming at the juvenile facility and whether required education and other services called for in any juvenile court disposition or otherwise required by law or court order can be provided in the adult facility.(3) The capacity of the adult facility to separate younger and older people as needed and to provide them with safe and age-appropriate housing and program opportunities.(4) The capacity of the juvenile facility to provide needed separation of older from younger people given the youth currently housed in the facility.(5) Evidence demonstrating that the juvenile facility is unable to currently manage the persons needs without posing a significant danger to staff or other youth in the facility.(d) If a person who is 18 19 to 24 years of age, inclusive, is removed from a juvenile facility pursuant to this section, upon the motion of any party and a showing of changed circumstances, the court shall consider the criteria in subdivision (c) and determine whether the person should be housed at a juvenile facility.(e) A person who is 19 years of age or older and who has been committed to a county juvenile facility or a facility of a contracted entity shall remain in the facility and shall not be subject to a petition for transfer to an adult facility. This section is not intended to authorize or extend confinement in a juvenile facility where authority would not otherwise exist.
190	115
191	116
192	117
193		-	~~116773~~.5. (a) Notwithstanding any other law, any ~~assistance or relief authorized by~~, and ~~provided by~~ a ~~community water system or~~ a ~~wastewater treatment provider to an individual pursuant to~~, ~~this chapter shall be treated~~ in the ~~same manner as the federal earned income refund for the purpose of determining the individuals eligibility~~ to ~~receive benefits under Division 9 (commencing~~ ~~with~~ Section ~~10000) of the Welfare and Institutions Code,~~ ~~excluding benefits under Chapter 7 (commencing~~ ~~with Section 14000) of Part 3 of Division 9 of the Welfare and Institutions Code, or amounts of those benefits~~.
	118	+	208.5. (a) Notwithstanding any other law, any person whose case originated in juvenile court shall remain, if the person is held in secure detention, in a county juvenile facility until the person attains 25 years of age, except as provided in subdivisions (b) and (c) of this section and paragraph (4) of subdivision (a) of Section 731. A person whose case originated in juvenile court but who was sentenced in criminal court shall not serve their sentence in a juvenile facility, but if not otherwise excluded, may remain in the juvenile facility until transferred to serve their sentence in an adult facility. This section is not intended to authorize confinement in a juvenile facility where authority would not otherwise exist.
194	119
195		-	(b) ~~Notwithstanding any~~ other law, any assistance or relief authorized by, and provided by a community water system or a wastewater treatment provider to an individual pursuant to, this chapter shall not be taken into account as income, and shall not be taken into account as resources for ~~a period~~ of ~~12 months from receipt, for purposes~~ of determining the eligibility of that individual, or any other individual, for benefits or assistance or the amount or extent of benefits or assistance under any state or local program not covered in subdivision (a). With respect to a state or local program, this subdivision shall only be implemented to the extent that it does not conflict with federal law relating to that program, and that any required federal approval or waiver is first obtained for that program.
	120	+	(b) The probation department may petition the court to house a person who is 19 years of age or older in an adult facility, including a jail or other facility established for the purpose of confinement of adults.
196	121
197		-	~~SEC. 4.~~ ~~Section 6902.5~~ of ~~the Revenue and Taxation Code is amended~~ to ~~read:6902.5. (a) For the purposes of this section:(1) Qualified taxpayer means~~ a person who is ~~a qualified taxpayer within~~ the ~~meaning~~ of paragraph (17) of subdivision (b) of Section 17053.85, 17053.95, 23685, or 23695, or paragraph (19) of subdivision (b) of Section 17053.98 or 23698.(2) Affiliate means a qualified taxpayers affiliated corporation that has been assigned any portion of the credit amount by the qualified taxpayer pursuant to subdivision (c) of Section 23685, subdivision (c) of Section 23695, or subdivision (c) of Section 23698.(3) Credit amount means an amount equal to the tax credit amount that would otherwise be allowed to a qualified taxpayer pursuant to Section 17053.85, 17053.95, 17053.98, 23685, 23695, or 23698, but for the election made pursuant to this section.(4) Production period means the production period as defined in paragraph (12) of subdivision (b) of Section 17053.85, 17053.95, 23685, or 23695 or in paragraph (14) of subdivision (b) of Section 17053.98 or 23698.(5) (A) Qualified sales and use taxes means any state sales and use taxes imposed by Part 1 (commencing with Section 6001), on the operative date of the act adding this section.(B) Notwithstanding subparagraph (A), qualified sales and use taxes does not mean taxes imposed by Section 6051.2, 6051.5, 6201.2, 6201.5, Part 1.5 (commencing with Section 7200), Part 1.6 (commencing with Section 7251), or Section 35 of Article XIII of the California Constitution.(b) (1) A qualified taxpayer may, in lieu of claiming the credit allowed by Section 17053.85, 17053.95, 17053.98, 23685, 23695, or 23698, make an irrevocable election to apply the credit amount against qualified sales and use taxes imposed on the qualified taxpayer in accordance with this section.(2) An affiliate may, in lieu of claiming the assigned portion of the credit allowed by Section 23685, 23695, or 23698, make an irrevocable election to apply the assigned portion of the credit amount against qualified sales and use taxes imposed on the affiliate in accordance with this section.(c) (1) A qualified taxpayer or affiliate shall submit to the California Department of Tax and Fee Administration an irrevocable election, in a form as prescribed by the California Department of Tax and Fee Administration, which shall include, but not be limited to, the following information:(A) Representation that the claimant is a qualified taxpayer or an affiliate.(B) Statement of the dates on which the production period began and ended.(C) The credit amount, and if an affiliate, the portion of the credit amount assigned to it and documentation supporting the assignment of that portion of the credit amount.(D) The amount of qualified sales and use taxes the claimant remitted to the California Department of Tax and Fee Administration during the period commencing on the first day of the calendar quarter commencing immediately before the beginning of the production period, and ending on the date the claimant was required to file its most recent sales and use tax return with the California Department of Tax and Fee Administration.(E) A copy of the credit certificate issued pursuant to subparagraph (C) of paragraph (2) of subdivision (g) of Section 17053.85 or 23685 or subparagraph (D) of paragraph (3) of subdivision (g) of Section 17053.95, 17053.98, 23695, or 23698.(2) The election shall be filed on or before the date on which the qualified taxpayer or affiliate would first be allowed to claim a credit pursuant to Section 17053.85, 17053.95, 17053.98, 23685, 23695, or 23698 on its tax return.(3) (A) For those amounts for which an irrevocable election is made in lieu of tax credits allowed pursuant to Section 17053.85, 17053.95, 17053.98, 23685, 23695, or 23698 that would otherwise be allowed for any taxable year beginning on or after January 1, 2020, and before January 1, 2023, 2022, subdivision (d) and paragraph (1) of subdivision (e) shall only apply to those in-lieu credit amounts that do not exceed five million dollars ($5,000,000) for that taxable year.(B) For those amounts for which an irrevocable election is made in lieu of tax credits allowed pursuant to Section 17053.85, 17053.95, 17053.98, 23685, 23695, or 23698 that would otherwise be allowed for any taxable year beginning on or after January 1, 2020, and before January 1, 2023, 2022, that are in excess of five million dollars ($5,000,000) for that taxable year, subdivision (f) shall apply.(d) (1) The claimant may elect to obtain a refund of qualified sales and use taxes paid during the period described in subparagraph (D) of paragraph (1) of subdivision (c). If the claimant elects to obtain a refund of qualified sales and use taxes, the claimant shall file a claim for refund with the irrevocable election described in subdivision (c). The refund amount shall not exceed, for a qualified taxpayer, the credit amount, or for an affiliate, the portion of the credit amount assigned to it.(2) No interest shall be paid on any amount refunded or credited pursuant to paragraph (1).(e) (1) If the claimant does not elect to obtain a refund or in the case where the credit amount, or assigned portion, exceeds the amount of its claim for refund for the qualified sales and use taxes, the claimant may, for the reporting periods in the five years following the last reporting period as described in subparagraph (D) of paragraph (1) of subdivision (c), offset any remaining credit amount, or assigned portion, against the qualified sales and use taxes imposed during those reporting periods.(2) Notwithstanding paragraph (1), the total amount of refunds or credit offsets claimed under subdivision (d) and paragraph (1) of this subdivision in lieu of tax credits allowed pursuant to Section 17053.85, 17053.95, 17053.98, 23685, 23695, or 23698 that would otherwise be allowed for a taxable year beginning on or after January 1, 2020, and before January 1, 2023, 2022, shall not exceed five million dollars ($5,000,000).(f) Notwithstanding subdivision (d) and paragraph (1) of subdivision (e), for those amounts for which an irrevocable election is made in lieu of tax credits allowed pursuant to Section 17053.85, 17053.95, 17053.98, 23685, 23695, or 23698 that would otherwise be allowed for any taxable year beginning on or after January 1, 2020, and before January 1, 2023, 2022, that are in excess of five million dollars ($5,000,000) for that taxable year, the claimant may offset that excess credit amount, or assigned portion, against the qualified sales and use taxes imposed during the reporting periods in the five years both of the following ~~and including the reporting period beginning on and after January 1, 2024. shall apply~~:(1) The claimant may elect to obtain a refund of the qualified sales and use taxes paid or offset that excess credit amount, or assigned portion against the qualified sales and use taxes imposed, during the reporting periods that occur during the 2021 calendar year. The total amount of refunds or credit offsets claimed under this paragraph, subdivision (d), and paragraph (1) of subdivision (e) shall not exceed five million dollars ($5,000,000) in the 2021 calendar year for each claimant.(2) If the claimant has not exhausted the excess credit amount, or assigned portion, as provided by paragraph (1), the claimant may offset the remaining excess credit amount, or assigned portion, against the qualified sales and use taxes imposed during the reporting periods in the five years following and including the reporting period beginning on and after January 1, 2022.(g) Section 6961 shall apply to any refund, or part thereof, that is erroneously made and any credit, or part thereof, that is erroneously allowed pursuant to this section.(h) The California Department of Tax and Fee Administration shall provide an annual listing to the Franchise Tax Board, in a form and manner agreed upon by the California Department of Tax and Fee Administration and the Franchise Tax Board, of the qualified taxpayers, or affiliates that have been assigned a portion of the credit allowed under Section 23685 pursuant to subdivision (c) of Section 23685, Section 23695 pursuant to subdivision (c) of Section 23695, or Section 23698 pursuant to subdivision (c) of Section 23698, who, during the year, have made an irrevocable election pursuant to this section and the credit amount, or portion of the credit amount, claimed by each qualified taxpayer or affiliate.(i) The California Department of Tax and Fee Administration may prescribe rules and regulations for the administration of this section.(j) The amendments made to this section by the act adding this subdivision shall not apply to irrevocable elections made before the operative date of the act adding this subdivision.(k) The amendments made to this section by the act adding this subdivision shall apply to irrevocable elections made on and after June 29, 2020.
	122	+	(c) Upon receipt of a petition to house a person who is 19 years of age or older in an adult facility, the court shall hold a hearing. There shall be a rebuttable presumption that the person will be retained in a juvenile facility. At the hearing, the court shall determine whether the person will be moved to an adult facility, and make written findings of its decision based on the totality of the following criteria:
198	123
199		-	SEC. 4. Section 6902.5 of the Revenue and Taxation Code is amended to read:
	124	+	(1) The impact of being held in an adult facility on the physical and mental health and well-being of the person.
	125	+
	126	+	(2) The benefits of continued programming at the juvenile facility and whether required education and other services called for in any juvenile court disposition or otherwise required by law or court order can be provided in the adult facility.
	127	+
	128	+	(3) The capacity of the adult facility to separate younger and older people as needed and to provide them with safe and age-appropriate housing and program opportunities.
	129	+
	130	+	(4) The capacity of the juvenile facility to provide needed separation of older from younger people given the youth currently housed in the facility.
	131	+
	132	+	(5) Evidence demonstrating that the juvenile facility is unable to currently manage the persons needs without posing a significant danger to staff or other youth in the facility.
	133	+
	134	+	(d) If a person who is 18 19 to 24 years of age, inclusive, is removed from a juvenile facility pursuant to this section, upon the motion of any party and a showing of changed circumstances, the court shall consider the criteria in subdivision (c) and determine whether the person should be housed at a juvenile facility.
	135	+
	136	+	(e) A person who is 19 years of age or older and who has been committed to a county juvenile facility or a facility of a contracted entity shall remain in the facility and shall not be subject to a petition for transfer to an adult facility. This section is not intended to authorize or extend confinement in a juvenile facility where authority would not otherwise exist.
	137	+
	138	+	SEC. 4. Section 607 of the Welfare and Institutions Code, as added by Section 24 of Chapter 337 of the Statutes of 2020, is amended to read:607. (a) The court may retain jurisdiction over a person who is found to be a ward or dependent child of the juvenile court until the ward or dependent child attains 21 years of age, except as provided in subdivisions (b), (c), and (d). (d), and (e).(b) The court may retain jurisdiction over a person who is found to be a person described in Section 602 by reason of the commission of an offense listed in subdivision (b) of Section 707, until that person attains 23 years of age, subject to the provisions of subdivision (c).(c) The court may retain jurisdiction over a person who is found to be a person described in Section 602 by reason of the commission of an offense listed in subdivision (b) of Section 707 until that person attains 25 years of age if the person, at the time of adjudication of a crime or crimes, would, in criminal court, have faced an aggregate sentence of seven years or more.(d) The court shall not discharge a person from its jurisdiction who has been committed to the Department of Corrections and Rehabilitation, Division of Juvenile Justice while the person remains under the jurisdiction of the Department of Corrections and Rehabilitation, Division of Juvenile Justice, including periods of extended control ordered pursuant to Section 1800.(e) The court may retain jurisdiction over a person described in Section 602 by reason of the commission of an offense listed in subdivision (b) of Section 707, who has been confined in a state hospital or other appropriate public or private mental health facility pursuant to Section 702.3 until that person attains 25 years of age, unless the court that committed the person finds, after notice and hearing, that the persons sanity has been restored.(f) The court may retain jurisdiction over a person while that person is the subject of a warrant for arrest issued pursuant to Section 663.(g) Notwithstanding subdivisions (b) and (d), (b), (c), and (e), a person who is committed by the juvenile court to the Department of Corrections and Rehabilitation, Division of Juvenile Justice on or after July 1, 2012, but before July 1, 2018, and who is found to be a person described in Section 602 by reason of the commission of an offense listed in subdivision (b) of Section 707 shall be discharged upon the expiration of a two-year period of control, or when the person attains 23 years of age, whichever occurs later, unless an order for further detention has been made by the committing court pursuant to Article 6 (commencing with Section 1800) of Chapter 1 of Division 2.5. This subdivision does not apply to a person who is committed to the Department of Corrections and Rehabilitation, Division of Juvenile Justice, or to a person who is confined in a state hospital or other appropriate public or private mental health facility, by a court prior to July 1, 2012, pursuant to subdivisions (b) and (d). (b), (c), and (e).(h) (1) Notwithstanding subdivision (f), (g), a person who is committed by the juvenile court to the Department of Corrections and Rehabilitation, Division of Juvenile Facilities, Justice, on or after July 1, 2018, and who is found to be a person described in Section 602 by reason of the commission of an offense listed in subdivision (c) of Section 290.008 of the Penal Code or subdivision (b) of Section 707 of this code, shall be discharged upon the expiration of a two-year period of control, or when the person attains 23 years of age, whichever occurs later, unless an order for further detention has been made by the committing court pursuant to Article 6 (commencing with Section 1800) of Chapter 1 of Division 2.5.(2) A person who, at the time of adjudication of a crime or crimes, would, in criminal court, have faced an aggregate sentence of seven years or more, shall be discharged upon the expiration of a two-year period of control, or when the person attains 25 years of age, whichever occurs later, unless an order for further detention has been made by the committing court pursuant to Article 6 (commencing with Section 1800) of Chapter 1 of Division 2.5.(3) This subdivision does not apply to a person who is committed to the Department of Corrections and Rehabilitation, Division of Juvenile Facilities, Justice, or to a person who is confined in a state hospital or other appropriate public or private mental health facility, by a court prior to July 1, 2018, as described in subdivision (f). (g).(i) The amendments to this section made by Chapter 342 of the Statutes of 2012 apply retroactively.(j) This section does not change the period of juvenile court jurisdiction for a person committed to the Division of Juvenile Facilities Justice prior to July 1, 2018.(k) This section shall become operative July 1, 2021.
	139	+
	140	+	SEC. 4. Section 607 of the Welfare and Institutions Code, as added by Section 24 of Chapter 337 of the Statutes of 2020, is amended to read:
200	141
201	142		### SEC. 4.
202	143
203		-	~~6902.5~~. (a) ~~For~~ the ~~purposes of this section:(1) Qualified taxpayer means~~ a person who is a ~~qualified taxpayer within~~ the ~~meaning~~ of ~~paragraph~~ (17) of subdivision (b) of Section ~~17053.85~~, ~~17053.95~~, ~~23685, or 23695,~~ ~~or paragraph~~ (19) of subdivision (b) of Section ~~17053.98~~ or ~~23698~~.(2) ~~Affiliate means~~ a ~~qualified taxpayers affiliated corporation that~~ has been ~~assigned any portion~~ of the ~~credit amount~~ by the ~~qualified taxpayer~~ pursuant to subdivision (c) of Section ~~23685, subdivision (c)~~ of ~~Section 23695,~~ or subdivision (c) of Section 23698.(3) Credit amount means an amount equal to the tax credit amount that would otherwise be allowed to a qualified taxpayer pursuant to Section 17053.85, 17053.95, 17053.98, 23685, 23695, or 23698, but for the election made pursuant to this section.(4) Production period means the production period as defined in paragraph (12) of subdivision (b) of Section ~~17053.85~~, ~~17053.95, 23685~~, or ~~23695 or in paragraph (14)~~ of ~~subdivision (b) of Section 17053.98 or 23698.(5) (A) Qualified sales and use taxes means any state sales and use taxes imposed~~ by ~~Part 1 (commencing with Section 6001), on~~ the operative date of the act adding this section.(B) Notwithstanding subparagraph (A), qualified sales and use taxes does not mean taxes imposed by Section 6051.2, 6051.5, 6201.2, 6201.5, Part 1.5 (commencing with Section 7200), Part 1.6 (commencing with Section ~~7251~~)~~, or Section 35~~ of ~~Article XIII~~ of ~~the California Constitution~~.(b) (1) A qualified taxpayer may, in lieu of claiming the credit allowed by Section 17053.85, 17053.95, 17053.98, 23685, 23695, or 23698, make an irrevocable election to apply the credit amount against qualified sales and use taxes imposed on the qualified taxpayer in accordance with this section.(2) ~~An affiliate may~~, in ~~lieu~~ of ~~claiming~~ the ~~assigned portion~~ of ~~the credit allowed by Section 23685, 23695~~, or ~~23698~~, ~~make~~ an ~~irrevocable election~~ to ~~apply the assigned portion~~ of ~~the credit amount against qualified sales and use taxes imposed on the affiliate in accordance with~~ this ~~section.(c) (1)~~ A ~~qualified taxpayer or affiliate shall submit~~ to the ~~California~~ Department of ~~Tax~~ and ~~Fee Administration an irrevocable election~~, in a ~~form as prescribed~~ by ~~the California Department of Tax and Fee Administration, which shall include, but not be limited to, the following information:(A) Representation that the claimant is~~ a ~~qualified taxpayer or an affiliate.(B) Statement of the dates on which the production period began and ended.(C) The credit amount, and if an affiliate, the portion of the credit amount assigned~~ to it and documentation supporting the assignment of that portion of the credit amount.(D) The amount of qualified sales and use taxes the claimant remitted to the California Department of Tax and Fee Administration during the period commencing on the first day of the calendar quarter commencing immediately before the beginning of the production period, and ending on the date the claimant was required to file its most recent sales and use tax return with the California Department of Tax and Fee Administration.(E) A copy of the credit certificate issued pursuant to subparagraph (C) of paragraph (2) of subdivision (g) of Section 17053.85 or 23685 or subparagraph (D) of paragraph (3) of subdivision (g) of Section 17053.95, 17053.98, 23695, or 23698.(2) The election shall be filed on or before the date on which the qualified taxpayer or affiliate would first be allowed to claim a credit pursuant to Section 17053.85, 17053.95, 17053.98, 23685, 23695, or 23698 on its tax return.(3) (A) For those amounts for which an irrevocable election is made in lieu of tax credits allowed pursuant to Section 17053.85, 17053.95, 17053.98, 23685, 23695, or 23698 that would otherwise be allowed for any taxable year beginning on or after January 1, ~~2020~~, and before January 1, 2023, 2022, subdivision (d) and paragraph (1) of subdivision (e) shall only apply to those in-lieu credit amounts that do not exceed five million dollars ($5,000,000) for that taxable year.(B) For those amounts for which an irrevocable election is made in lieu of tax credits allowed pursuant to Section 17053.85, 17053.95, 17053.98, 23685, 23695, or 23698 that would otherwise be allowed for any taxable year beginning on or after January 1, 2020, and before January 1, 2023, 2022, that are in excess of five million dollars ($5,000,000) for that taxable year, subdivision (f) shall apply.(d) (1) The claimant may elect to obtain a refund of qualified sales and use taxes paid during the period described in subparagraph (D) of paragraph (1) of subdivision (c). If the claimant elects to obtain a refund of qualified sales and use taxes, the claimant shall file a claim for refund with the irrevocable election described in subdivision (c). ~~The refund amount shall not exceed, for a qualified taxpayer, the credit amount, or for an affiliate, the portion of the credit amount assigned to it.~~(~~2) No interest shall be paid on any amount refunded or credited pursuant to paragraph (1~~).(e) (1) If the claimant does not elect to obtain a refund or in the case where the credit amount, or assigned portion, exceeds the amount of its claim for refund for the qualified sales and use taxes, the claimant may, for the reporting periods in the five years following the last reporting period as described in subparagraph (D) of paragraph (1) of subdivision (c), offset any remaining credit amount, or assigned portion, against the qualified sales and use taxes imposed during those reporting periods.(2) Notwithstanding paragraph (1), the total amount of refunds or credit offsets claimed under subdivision (d) and paragraph (1) of this subdivision in lieu of tax credits allowed pursuant to Section 17053.85, 17053.95, 17053.98, 23685, 23695, or 23698 that would otherwise be allowed for a taxable year beginning on or after January 1, 2020, and before January 1, 2023, 2022, shall not exceed five million dollars ($5,000,000).(f) Notwithstanding subdivision (d) and paragraph (1) of subdivision (e), for those amounts for which an irrevocable election is made in lieu of tax credits allowed pursuant to Section 17053.85, 17053.95, 17053.98, 23685, 23695, or 23698 that would otherwise be allowed for any taxable year beginning on or after January 1, 2020, and before January 1, 2023, 2022, that are in excess of five million dollars ($5,000,000) for that taxable year, the claimant may offset that excess credit amount, or assigned portion, against the qualified sales and use taxes imposed during the reporting periods in the five years both of the following and including the reporting period beginning on and after January 1, 2024. shall apply:(1) The claimant may elect to obtain a refund of the qualified sales and use taxes paid or offset that excess credit amount, or assigned portion against the qualified sales and use taxes imposed, during the reporting periods that occur during the 2021 calendar year. The total amount of refunds or credit offsets claimed under this paragraph, subdivision (d), and paragraph (1) of subdivision (e) shall not exceed five million dollars ($5,000,000) in the 2021 calendar year for each claimant.(2) If the claimant has not exhausted the excess credit amount, or assigned portion, as provided by paragraph (1), the claimant may offset the remaining excess credit amount, or assigned portion, against the qualified sales and use taxes imposed during the reporting periods in the five years following and including the reporting period beginning on and after January 1, 2022.(g) Section 6961 shall apply to any refund, or part thereof, that is erroneously made and any credit, or part thereof, that is erroneously allowed pursuant to this section.(h) The California Department of Tax and Fee Administration shall provide an annual listing to the Franchise Tax Board, in a form and manner agreed upon by the California Department of Tax and Fee Administration and the Franchise Tax Board, of the qualified taxpayers, or affiliates that have been assigned a portion of the credit allowed under Section 23685 pursuant to subdivision (c) of Section 23685, Section 23695 pursuant to subdivision (c) of Section 23695, or Section 23698 pursuant to subdivision (c) of Section 23698, who, during the year, have made an irrevocable election pursuant to this section ~~and the credit amount, or portion~~ of the ~~credit amount, claimed by each qualified taxpayer or affiliate.(i) The California Department~~ of ~~Tax and Fee Administration may prescribe rules and regulations for the administration of this section~~.(j) The ~~amendments made~~ to this section ~~by the act adding this subdivision~~ shall ~~not apply to irrevocable elections made before the~~ operative ~~date of the act adding this subdivision.(k) The amendments made to this section by the act adding this subdivision shall apply to irrevocable elections made on and after June 29~~, ~~2020~~.
	144	+	607. (a) The court may retain jurisdiction over a person who is found to be a ward or dependent child of the juvenile court until the ward or dependent child attains 21 years of age, except as provided in subdivisions (b), (c), and (d). (d), and (e).(b) The court may retain jurisdiction over a person who is found to be a person described in Section 602 by reason of the commission of an offense listed in subdivision (b) of Section 707, until that person attains 23 years of age, subject to the provisions of subdivision (c).(c) The court may retain jurisdiction over a person who is found to be a person described in Section 602 by reason of the commission of an offense listed in subdivision (b) of Section 707 until that person attains 25 years of age if the person, at the time of adjudication of a crime or crimes, would, in criminal court, have faced an aggregate sentence of seven years or more.(d) The court shall not discharge a person from its jurisdiction who has been committed to the Department of Corrections and Rehabilitation, Division of Juvenile Justice while the person remains under the jurisdiction of the Department of Corrections and Rehabilitation, Division of Juvenile Justice, including periods of extended control ordered pursuant to Section 1800.(e) The court may retain jurisdiction over a person described in Section 602 by reason of the commission of an offense listed in subdivision (b) of Section 707, who has been confined in a state hospital or other appropriate public or private mental health facility pursuant to Section 702.3 until that person attains 25 years of age, unless the court that committed the person finds, after notice and hearing, that the persons sanity has been restored.(f) The court may retain jurisdiction over a person while that person is the subject of a warrant for arrest issued pursuant to Section 663.(g) Notwithstanding subdivisions (b) and (d), (b), (c), and (e), a person who is committed by the juvenile court to the Department of Corrections and Rehabilitation, Division of Juvenile Justice on or after July 1, 2012, but before July 1, 2018, and who is found to be a person described in Section 602 by reason of the commission of an offense listed in subdivision (b) of Section 707 shall be discharged upon the expiration of a two-year period of control, or when the person attains 23 years of age, whichever occurs later, unless an order for further detention has been made by the committing court pursuant to Article 6 (commencing with Section 1800) of Chapter 1 of Division 2.5. This subdivision does not apply to a person who is committed to the Department of Corrections and Rehabilitation, Division of Juvenile Justice, or to a person who is confined in a state hospital or other appropriate public or private mental health facility, by a court prior to July 1, 2012, pursuant to subdivisions (b) and (d). (b), (c), and (e).(h) (1) Notwithstanding subdivision (f), (g), a person who is committed by the juvenile court to the Department of Corrections and Rehabilitation, Division of Juvenile Facilities, Justice, on or after July 1, 2018, and who is found to be a person described in Section 602 by reason of the commission of an offense listed in subdivision (c) of Section 290.008 of the Penal Code or subdivision (b) of Section 707 of this code, shall be discharged upon the expiration of a two-year period of control, or when the person attains 23 years of age, whichever occurs later, unless an order for further detention has been made by the committing court pursuant to Article 6 (commencing with Section 1800) of Chapter 1 of Division 2.5.(2) A person who, at the time of adjudication of a crime or crimes, would, in criminal court, have faced an aggregate sentence of seven years or more, shall be discharged upon the expiration of a two-year period of control, or when the person attains 25 years of age, whichever occurs later, unless an order for further detention has been made by the committing court pursuant to Article 6 (commencing with Section 1800) of Chapter 1 of Division 2.5.(3) This subdivision does not apply to a person who is committed to the Department of Corrections and Rehabilitation, Division of Juvenile Facilities, Justice, or to a person who is confined in a state hospital or other appropriate public or private mental health facility, by a court prior to July 1, 2018, as described in subdivision (f). (g).(i) The amendments to this section made by Chapter 342 of the Statutes of 2012 apply retroactively.(j) This section does not change the period of juvenile court jurisdiction for a person committed to the Division of Juvenile Facilities Justice prior to July 1, 2018.(k) This section shall become operative July 1, 2021.
204	145
205		-	~~6902.5~~. (a) ~~For~~ the ~~purposes of this section:(1) Qualified taxpayer means~~ a person who is a ~~qualified taxpayer within~~ the ~~meaning~~ of ~~paragraph~~ (17) of subdivision (b) of Section ~~17053.85~~, ~~17053.95~~, ~~23685, or 23695,~~ ~~or paragraph~~ (19) of subdivision (b) of Section ~~17053.98~~ or ~~23698~~.(2) ~~Affiliate means~~ a ~~qualified taxpayers affiliated corporation that~~ has been ~~assigned any portion~~ of the ~~credit amount~~ by the ~~qualified taxpayer~~ pursuant to subdivision (c) of Section ~~23685, subdivision (c)~~ of ~~Section 23695,~~ or subdivision (c) of Section 23698.(3) Credit amount means an amount equal to the tax credit amount that would otherwise be allowed to a qualified taxpayer pursuant to Section 17053.85, 17053.95, 17053.98, 23685, 23695, or 23698, but for the election made pursuant to this section.(4) Production period means the production period as defined in paragraph (12) of subdivision (b) of Section ~~17053.85~~, ~~17053.95, 23685~~, or ~~23695 or in paragraph (14)~~ of ~~subdivision (b) of Section 17053.98 or 23698.(5) (A) Qualified sales and use taxes means any state sales and use taxes imposed~~ by ~~Part 1 (commencing with Section 6001), on~~ the operative date of the act adding this section.(B) Notwithstanding subparagraph (A), qualified sales and use taxes does not mean taxes imposed by Section 6051.2, 6051.5, 6201.2, 6201.5, Part 1.5 (commencing with Section 7200), Part 1.6 (commencing with Section ~~7251~~)~~, or Section 35~~ of ~~Article XIII~~ of ~~the California Constitution~~.(b) (1) A qualified taxpayer may, in lieu of claiming the credit allowed by Section 17053.85, 17053.95, 17053.98, 23685, 23695, or 23698, make an irrevocable election to apply the credit amount against qualified sales and use taxes imposed on the qualified taxpayer in accordance with this section.(2) ~~An affiliate may~~, in ~~lieu~~ of ~~claiming~~ the ~~assigned portion~~ of ~~the credit allowed by Section 23685, 23695~~, or ~~23698~~, ~~make~~ an ~~irrevocable election~~ to ~~apply the assigned portion~~ of ~~the credit amount against qualified sales and use taxes imposed on the affiliate in accordance with~~ this ~~section.(c) (1)~~ A ~~qualified taxpayer or affiliate shall submit~~ to the ~~California~~ Department of ~~Tax~~ and ~~Fee Administration an irrevocable election~~, in a ~~form as prescribed~~ by ~~the California Department of Tax and Fee Administration, which shall include, but not be limited to, the following information:(A) Representation that the claimant is~~ a ~~qualified taxpayer or an affiliate.(B) Statement of the dates on which the production period began and ended.(C) The credit amount, and if an affiliate, the portion of the credit amount assigned~~ to it and documentation supporting the assignment of that portion of the credit amount.(D) The amount of qualified sales and use taxes the claimant remitted to the California Department of Tax and Fee Administration during the period commencing on the first day of the calendar quarter commencing immediately before the beginning of the production period, and ending on the date the claimant was required to file its most recent sales and use tax return with the California Department of Tax and Fee Administration.(E) A copy of the credit certificate issued pursuant to subparagraph (C) of paragraph (2) of subdivision (g) of Section 17053.85 or 23685 or subparagraph (D) of paragraph (3) of subdivision (g) of Section 17053.95, 17053.98, 23695, or 23698.(2) The election shall be filed on or before the date on which the qualified taxpayer or affiliate would first be allowed to claim a credit pursuant to Section 17053.85, 17053.95, 17053.98, 23685, 23695, or 23698 on its tax return.(3) (A) For those amounts for which an irrevocable election is made in lieu of tax credits allowed pursuant to Section 17053.85, 17053.95, 17053.98, 23685, 23695, or 23698 that would otherwise be allowed for any taxable year beginning on or after January 1, ~~2020~~, and before January 1, 2023, 2022, subdivision (d) and paragraph (1) of subdivision (e) shall only apply to those in-lieu credit amounts that do not exceed five million dollars ($5,000,000) for that taxable year.(B) For those amounts for which an irrevocable election is made in lieu of tax credits allowed pursuant to Section 17053.85, 17053.95, 17053.98, 23685, 23695, or 23698 that would otherwise be allowed for any taxable year beginning on or after January 1, 2020, and before January 1, 2023, 2022, that are in excess of five million dollars ($5,000,000) for that taxable year, subdivision (f) shall apply.(d) (1) The claimant may elect to obtain a refund of qualified sales and use taxes paid during the period described in subparagraph (D) of paragraph (1) of subdivision (c). If the claimant elects to obtain a refund of qualified sales and use taxes, the claimant shall file a claim for refund with the irrevocable election described in subdivision (c). ~~The refund amount shall not exceed, for a qualified taxpayer, the credit amount, or for an affiliate, the portion of the credit amount assigned to it.~~(~~2) No interest shall be paid on any amount refunded or credited pursuant to paragraph (1~~).(e) (1) If the claimant does not elect to obtain a refund or in the case where the credit amount, or assigned portion, exceeds the amount of its claim for refund for the qualified sales and use taxes, the claimant may, for the reporting periods in the five years following the last reporting period as described in subparagraph (D) of paragraph (1) of subdivision (c), offset any remaining credit amount, or assigned portion, against the qualified sales and use taxes imposed during those reporting periods.(2) Notwithstanding paragraph (1), the total amount of refunds or credit offsets claimed under subdivision (d) and paragraph (1) of this subdivision in lieu of tax credits allowed pursuant to Section 17053.85, 17053.95, 17053.98, 23685, 23695, or 23698 that would otherwise be allowed for a taxable year beginning on or after January 1, 2020, and before January 1, 2023, 2022, shall not exceed five million dollars ($5,000,000).(f) Notwithstanding subdivision (d) and paragraph (1) of subdivision (e), for those amounts for which an irrevocable election is made in lieu of tax credits allowed pursuant to Section 17053.85, 17053.95, 17053.98, 23685, 23695, or 23698 that would otherwise be allowed for any taxable year beginning on or after January 1, 2020, and before January 1, 2023, 2022, that are in excess of five million dollars ($5,000,000) for that taxable year, the claimant may offset that excess credit amount, or assigned portion, against the qualified sales and use taxes imposed during the reporting periods in the five years both of the following and including the reporting period beginning on and after January 1, 2024. shall apply:(1) The claimant may elect to obtain a refund of the qualified sales and use taxes paid or offset that excess credit amount, or assigned portion against the qualified sales and use taxes imposed, during the reporting periods that occur during the 2021 calendar year. The total amount of refunds or credit offsets claimed under this paragraph, subdivision (d), and paragraph (1) of subdivision (e) shall not exceed five million dollars ($5,000,000) in the 2021 calendar year for each claimant.(2) If the claimant has not exhausted the excess credit amount, or assigned portion, as provided by paragraph (1), the claimant may offset the remaining excess credit amount, or assigned portion, against the qualified sales and use taxes imposed during the reporting periods in the five years following and including the reporting period beginning on and after January 1, 2022.(g) Section 6961 shall apply to any refund, or part thereof, that is erroneously made and any credit, or part thereof, that is erroneously allowed pursuant to this section.(h) The California Department of Tax and Fee Administration shall provide an annual listing to the Franchise Tax Board, in a form and manner agreed upon by the California Department of Tax and Fee Administration and the Franchise Tax Board, of the qualified taxpayers, or affiliates that have been assigned a portion of the credit allowed under Section 23685 pursuant to subdivision (c) of Section 23685, Section 23695 pursuant to subdivision (c) of Section 23695, or Section 23698 pursuant to subdivision (c) of Section 23698, who, during the year, have made an irrevocable election pursuant to this section ~~and the credit amount, or portion~~ of the ~~credit amount, claimed by each qualified taxpayer or affiliate.(i) The California Department~~ of ~~Tax and Fee Administration may prescribe rules and regulations for the administration of this section~~.(j) The ~~amendments made~~ to this section ~~by the act adding this subdivision~~ shall ~~not apply to irrevocable elections made before the~~ operative ~~date of the act adding this subdivision.(k) The amendments made to this section by the act adding this subdivision shall apply to irrevocable elections made on and after June 29~~, ~~2020~~.
	146	+	607. (a) The court may retain jurisdiction over a person who is found to be a ward or dependent child of the juvenile court until the ward or dependent child attains 21 years of age, except as provided in subdivisions (b), (c), and (d). (d), and (e).(b) The court may retain jurisdiction over a person who is found to be a person described in Section 602 by reason of the commission of an offense listed in subdivision (b) of Section 707, until that person attains 23 years of age, subject to the provisions of subdivision (c).(c) The court may retain jurisdiction over a person who is found to be a person described in Section 602 by reason of the commission of an offense listed in subdivision (b) of Section 707 until that person attains 25 years of age if the person, at the time of adjudication of a crime or crimes, would, in criminal court, have faced an aggregate sentence of seven years or more.(d) The court shall not discharge a person from its jurisdiction who has been committed to the Department of Corrections and Rehabilitation, Division of Juvenile Justice while the person remains under the jurisdiction of the Department of Corrections and Rehabilitation, Division of Juvenile Justice, including periods of extended control ordered pursuant to Section 1800.(e) The court may retain jurisdiction over a person described in Section 602 by reason of the commission of an offense listed in subdivision (b) of Section 707, who has been confined in a state hospital or other appropriate public or private mental health facility pursuant to Section 702.3 until that person attains 25 years of age, unless the court that committed the person finds, after notice and hearing, that the persons sanity has been restored.(f) The court may retain jurisdiction over a person while that person is the subject of a warrant for arrest issued pursuant to Section 663.(g) Notwithstanding subdivisions (b) and (d), (b), (c), and (e), a person who is committed by the juvenile court to the Department of Corrections and Rehabilitation, Division of Juvenile Justice on or after July 1, 2012, but before July 1, 2018, and who is found to be a person described in Section 602 by reason of the commission of an offense listed in subdivision (b) of Section 707 shall be discharged upon the expiration of a two-year period of control, or when the person attains 23 years of age, whichever occurs later, unless an order for further detention has been made by the committing court pursuant to Article 6 (commencing with Section 1800) of Chapter 1 of Division 2.5. This subdivision does not apply to a person who is committed to the Department of Corrections and Rehabilitation, Division of Juvenile Justice, or to a person who is confined in a state hospital or other appropriate public or private mental health facility, by a court prior to July 1, 2012, pursuant to subdivisions (b) and (d). (b), (c), and (e).(h) (1) Notwithstanding subdivision (f), (g), a person who is committed by the juvenile court to the Department of Corrections and Rehabilitation, Division of Juvenile Facilities, Justice, on or after July 1, 2018, and who is found to be a person described in Section 602 by reason of the commission of an offense listed in subdivision (c) of Section 290.008 of the Penal Code or subdivision (b) of Section 707 of this code, shall be discharged upon the expiration of a two-year period of control, or when the person attains 23 years of age, whichever occurs later, unless an order for further detention has been made by the committing court pursuant to Article 6 (commencing with Section 1800) of Chapter 1 of Division 2.5.(2) A person who, at the time of adjudication of a crime or crimes, would, in criminal court, have faced an aggregate sentence of seven years or more, shall be discharged upon the expiration of a two-year period of control, or when the person attains 25 years of age, whichever occurs later, unless an order for further detention has been made by the committing court pursuant to Article 6 (commencing with Section 1800) of Chapter 1 of Division 2.5.(3) This subdivision does not apply to a person who is committed to the Department of Corrections and Rehabilitation, Division of Juvenile Facilities, Justice, or to a person who is confined in a state hospital or other appropriate public or private mental health facility, by a court prior to July 1, 2018, as described in subdivision (f). (g).(i) The amendments to this section made by Chapter 342 of the Statutes of 2012 apply retroactively.(j) This section does not change the period of juvenile court jurisdiction for a person committed to the Division of Juvenile Facilities Justice prior to July 1, 2018.(k) This section shall become operative July 1, 2021.
206	147
207		-	~~6902.5~~. (a) ~~For~~ the ~~purposes of this section:(1) Qualified taxpayer means~~ a person who is a ~~qualified taxpayer within~~ the ~~meaning~~ of ~~paragraph~~ (17) of subdivision (b) of Section ~~17053.85~~, ~~17053.95~~, ~~23685, or 23695,~~ ~~or paragraph~~ (19) of subdivision (b) of Section ~~17053.98~~ or ~~23698~~.(2) ~~Affiliate means~~ a ~~qualified taxpayers affiliated corporation that~~ has been ~~assigned any portion~~ of the ~~credit amount~~ by the ~~qualified taxpayer~~ pursuant to subdivision (c) of Section ~~23685, subdivision (c)~~ of ~~Section 23695,~~ or subdivision (c) of Section 23698.(3) Credit amount means an amount equal to the tax credit amount that would otherwise be allowed to a qualified taxpayer pursuant to Section 17053.85, 17053.95, 17053.98, 23685, 23695, or 23698, but for the election made pursuant to this section.(4) Production period means the production period as defined in paragraph (12) of subdivision (b) of Section ~~17053.85~~, ~~17053.95, 23685~~, or ~~23695 or in paragraph (14)~~ of ~~subdivision (b) of Section 17053.98 or 23698.(5) (A) Qualified sales and use taxes means any state sales and use taxes imposed~~ by ~~Part 1 (commencing with Section 6001), on~~ the operative date of the act adding this section.(B) Notwithstanding subparagraph (A), qualified sales and use taxes does not mean taxes imposed by Section 6051.2, 6051.5, 6201.2, 6201.5, Part 1.5 (commencing with Section 7200), Part 1.6 (commencing with Section ~~7251~~)~~, or Section 35~~ of ~~Article XIII~~ of ~~the California Constitution~~.(b) (1) A qualified taxpayer may, in lieu of claiming the credit allowed by Section 17053.85, 17053.95, 17053.98, 23685, 23695, or 23698, make an irrevocable election to apply the credit amount against qualified sales and use taxes imposed on the qualified taxpayer in accordance with this section.(2) ~~An affiliate may~~, in ~~lieu~~ of ~~claiming~~ the ~~assigned portion~~ of ~~the credit allowed by Section 23685, 23695~~, or ~~23698~~, ~~make~~ an ~~irrevocable election~~ to ~~apply the assigned portion~~ of ~~the credit amount against qualified sales and use taxes imposed on the affiliate in accordance with~~ this ~~section.(c) (1)~~ A ~~qualified taxpayer or affiliate shall submit~~ to the ~~California~~ Department of ~~Tax~~ and ~~Fee Administration an irrevocable election~~, in a ~~form as prescribed~~ by ~~the California Department of Tax and Fee Administration, which shall include, but not be limited to, the following information:(A) Representation that the claimant is~~ a ~~qualified taxpayer or an affiliate.(B) Statement of the dates on which the production period began and ended.(C) The credit amount, and if an affiliate, the portion of the credit amount assigned~~ to it and documentation supporting the assignment of that portion of the credit amount.(D) The amount of qualified sales and use taxes the claimant remitted to the California Department of Tax and Fee Administration during the period commencing on the first day of the calendar quarter commencing immediately before the beginning of the production period, and ending on the date the claimant was required to file its most recent sales and use tax return with the California Department of Tax and Fee Administration.(E) A copy of the credit certificate issued pursuant to subparagraph (C) of paragraph (2) of subdivision (g) of Section 17053.85 or 23685 or subparagraph (D) of paragraph (3) of subdivision (g) of Section 17053.95, 17053.98, 23695, or 23698.(2) The election shall be filed on or before the date on which the qualified taxpayer or affiliate would first be allowed to claim a credit pursuant to Section 17053.85, 17053.95, 17053.98, 23685, 23695, or 23698 on its tax return.(3) (A) For those amounts for which an irrevocable election is made in lieu of tax credits allowed pursuant to Section 17053.85, 17053.95, 17053.98, 23685, 23695, or 23698 that would otherwise be allowed for any taxable year beginning on or after January 1, ~~2020~~, and before January 1, 2023, 2022, subdivision (d) and paragraph (1) of subdivision (e) shall only apply to those in-lieu credit amounts that do not exceed five million dollars ($5,000,000) for that taxable year.(B) For those amounts for which an irrevocable election is made in lieu of tax credits allowed pursuant to Section 17053.85, 17053.95, 17053.98, 23685, 23695, or 23698 that would otherwise be allowed for any taxable year beginning on or after January 1, 2020, and before January 1, 2023, 2022, that are in excess of five million dollars ($5,000,000) for that taxable year, subdivision (f) shall apply.(d) (1) The claimant may elect to obtain a refund of qualified sales and use taxes paid during the period described in subparagraph (D) of paragraph (1) of subdivision (c). If the claimant elects to obtain a refund of qualified sales and use taxes, the claimant shall file a claim for refund with the irrevocable election described in subdivision (c). ~~The refund amount shall not exceed, for a qualified taxpayer, the credit amount, or for an affiliate, the portion of the credit amount assigned to it.~~(~~2) No interest shall be paid on any amount refunded or credited pursuant to paragraph (1~~).(e) (1) If the claimant does not elect to obtain a refund or in the case where the credit amount, or assigned portion, exceeds the amount of its claim for refund for the qualified sales and use taxes, the claimant may, for the reporting periods in the five years following the last reporting period as described in subparagraph (D) of paragraph (1) of subdivision (c), offset any remaining credit amount, or assigned portion, against the qualified sales and use taxes imposed during those reporting periods.(2) Notwithstanding paragraph (1), the total amount of refunds or credit offsets claimed under subdivision (d) and paragraph (1) of this subdivision in lieu of tax credits allowed pursuant to Section 17053.85, 17053.95, 17053.98, 23685, 23695, or 23698 that would otherwise be allowed for a taxable year beginning on or after January 1, 2020, and before January 1, 2023, 2022, shall not exceed five million dollars ($5,000,000).(f) Notwithstanding subdivision (d) and paragraph (1) of subdivision (e), for those amounts for which an irrevocable election is made in lieu of tax credits allowed pursuant to Section 17053.85, 17053.95, 17053.98, 23685, 23695, or 23698 that would otherwise be allowed for any taxable year beginning on or after January 1, 2020, and before January 1, 2023, 2022, that are in excess of five million dollars ($5,000,000) for that taxable year, the claimant may offset that excess credit amount, or assigned portion, against the qualified sales and use taxes imposed during the reporting periods in the five years both of the following and including the reporting period beginning on and after January 1, 2024. shall apply:(1) The claimant may elect to obtain a refund of the qualified sales and use taxes paid or offset that excess credit amount, or assigned portion against the qualified sales and use taxes imposed, during the reporting periods that occur during the 2021 calendar year. The total amount of refunds or credit offsets claimed under this paragraph, subdivision (d), and paragraph (1) of subdivision (e) shall not exceed five million dollars ($5,000,000) in the 2021 calendar year for each claimant.(2) If the claimant has not exhausted the excess credit amount, or assigned portion, as provided by paragraph (1), the claimant may offset the remaining excess credit amount, or assigned portion, against the qualified sales and use taxes imposed during the reporting periods in the five years following and including the reporting period beginning on and after January 1, 2022.(g) Section 6961 shall apply to any refund, or part thereof, that is erroneously made and any credit, or part thereof, that is erroneously allowed pursuant to this section.(h) The California Department of Tax and Fee Administration shall provide an annual listing to the Franchise Tax Board, in a form and manner agreed upon by the California Department of Tax and Fee Administration and the Franchise Tax Board, of the qualified taxpayers, or affiliates that have been assigned a portion of the credit allowed under Section 23685 pursuant to subdivision (c) of Section 23685, Section 23695 pursuant to subdivision (c) of Section 23695, or Section 23698 pursuant to subdivision (c) of Section 23698, who, during the year, have made an irrevocable election pursuant to this section ~~and the credit amount, or portion~~ of the ~~credit amount, claimed by each qualified taxpayer or affiliate.(i) The California Department~~ of ~~Tax and Fee Administration may prescribe rules and regulations for the administration of this section~~.(j) The ~~amendments made~~ to this section ~~by the act adding this subdivision~~ shall ~~not apply to irrevocable elections made before the~~ operative ~~date of the act adding this subdivision.(k) The amendments made to this section by the act adding this subdivision shall apply to irrevocable elections made on and after June 29~~, ~~2020~~.
	148	+	607. (a) The court may retain jurisdiction over a person who is found to be a ward or dependent child of the juvenile court until the ward or dependent child attains 21 years of age, except as provided in subdivisions (b), (c), and (d). (d), and (e).(b) The court may retain jurisdiction over a person who is found to be a person described in Section 602 by reason of the commission of an offense listed in subdivision (b) of Section 707, until that person attains 23 years of age, subject to the provisions of subdivision (c).(c) The court may retain jurisdiction over a person who is found to be a person described in Section 602 by reason of the commission of an offense listed in subdivision (b) of Section 707 until that person attains 25 years of age if the person, at the time of adjudication of a crime or crimes, would, in criminal court, have faced an aggregate sentence of seven years or more.(d) The court shall not discharge a person from its jurisdiction who has been committed to the Department of Corrections and Rehabilitation, Division of Juvenile Justice while the person remains under the jurisdiction of the Department of Corrections and Rehabilitation, Division of Juvenile Justice, including periods of extended control ordered pursuant to Section 1800.(e) The court may retain jurisdiction over a person described in Section 602 by reason of the commission of an offense listed in subdivision (b) of Section 707, who has been confined in a state hospital or other appropriate public or private mental health facility pursuant to Section 702.3 until that person attains 25 years of age, unless the court that committed the person finds, after notice and hearing, that the persons sanity has been restored.(f) The court may retain jurisdiction over a person while that person is the subject of a warrant for arrest issued pursuant to Section 663.(g) Notwithstanding subdivisions (b) and (d), (b), (c), and (e), a person who is committed by the juvenile court to the Department of Corrections and Rehabilitation, Division of Juvenile Justice on or after July 1, 2012, but before July 1, 2018, and who is found to be a person described in Section 602 by reason of the commission of an offense listed in subdivision (b) of Section 707 shall be discharged upon the expiration of a two-year period of control, or when the person attains 23 years of age, whichever occurs later, unless an order for further detention has been made by the committing court pursuant to Article 6 (commencing with Section 1800) of Chapter 1 of Division 2.5. This subdivision does not apply to a person who is committed to the Department of Corrections and Rehabilitation, Division of Juvenile Justice, or to a person who is confined in a state hospital or other appropriate public or private mental health facility, by a court prior to July 1, 2012, pursuant to subdivisions (b) and (d). (b), (c), and (e).(h) (1) Notwithstanding subdivision (f), (g), a person who is committed by the juvenile court to the Department of Corrections and Rehabilitation, Division of Juvenile Facilities, Justice, on or after July 1, 2018, and who is found to be a person described in Section 602 by reason of the commission of an offense listed in subdivision (c) of Section 290.008 of the Penal Code or subdivision (b) of Section 707 of this code, shall be discharged upon the expiration of a two-year period of control, or when the person attains 23 years of age, whichever occurs later, unless an order for further detention has been made by the committing court pursuant to Article 6 (commencing with Section 1800) of Chapter 1 of Division 2.5.(2) A person who, at the time of adjudication of a crime or crimes, would, in criminal court, have faced an aggregate sentence of seven years or more, shall be discharged upon the expiration of a two-year period of control, or when the person attains 25 years of age, whichever occurs later, unless an order for further detention has been made by the committing court pursuant to Article 6 (commencing with Section 1800) of Chapter 1 of Division 2.5.(3) This subdivision does not apply to a person who is committed to the Department of Corrections and Rehabilitation, Division of Juvenile Facilities, Justice, or to a person who is confined in a state hospital or other appropriate public or private mental health facility, by a court prior to July 1, 2018, as described in subdivision (f). (g).(i) The amendments to this section made by Chapter 342 of the Statutes of 2012 apply retroactively.(j) This section does not change the period of juvenile court jurisdiction for a person committed to the Division of Juvenile Facilities Justice prior to July 1, 2018.(k) This section shall become operative July 1, 2021.
208	149
209	150
210	151
211		-	~~6902.5~~. (a) ~~For~~ the ~~purposes~~ of ~~this section:~~
	152	+	607. (a) The court may retain jurisdiction over a person who is found to be a ward or dependent child of the juvenile court until the ward or dependent child attains 21 years of age, except as provided in subdivisions (b), (c), and (d). (d), and (e).
212	153
213		-	(1) ~~Qualified taxpayer means~~ a person who is a ~~qualified taxpayer within~~ the ~~meaning~~ of ~~paragraph (17) of~~ subdivision (b) of Section ~~17053.85~~, ~~17053.95~~, ~~23685, or 23695,~~ ~~or paragraph (19)~~ of subdivision (b) ~~of Section 17053~~.~~98 or 23698.~~
	154	+	(b) The court may retain jurisdiction over a person who is found to be a person described in Section 602 by reason of the commission of an offense listed in subdivision (b) of Section 707, until that person attains 23 years of age, subject to the provisions of subdivision (c).
214	155
215		-	(2) ~~Affiliate means~~ a ~~qualified taxpayers affiliated corporation that has been assigned any portion~~ of the ~~credit amount by the qualified taxpayer pursuant to~~ subdivision (c) of Section ~~23685, subdivision (c)~~ of ~~Section 23695~~, or ~~subdivision (c)~~ of ~~Section 23698~~.
	156	+	(c) The court may retain jurisdiction over a person who is found to be a person described in Section 602 by reason of the commission of an offense listed in subdivision (b) of Section 707 until that person attains 25 years of age if the person, at the time of adjudication of a crime or crimes, would, in criminal court, have faced an aggregate sentence of seven years or more.
216	157
217		-	(3) ~~Credit amount means an amount equal~~ to the ~~tax credit amount that would otherwise be allowed to a qualified taxpayer~~ pursuant to Section ~~17053~~.~~85, 17053.95, 17053.98, 23685, 23695, or 23698, but for the election made pursuant to this section.~~
	158	+	(d) The court shall not discharge a person from its jurisdiction who has been committed to the Department of Corrections and Rehabilitation, Division of Juvenile Justice while the person remains under the jurisdiction of the Department of Corrections and Rehabilitation, Division of Juvenile Justice, including periods of extended control ordered pursuant to Section 1800.
218	159
219		-	(4) ~~Production period means~~ the ~~production period as defined~~ in ~~paragraph (12)~~ of subdivision (b) of Section ~~17053.85~~, ~~17053.95, 23685,~~ or ~~23695~~ or ~~in paragraph (14)~~ of ~~subdivision (b) of Section 17053~~.~~98 or 23698.~~
	160	+	(e) The court may retain jurisdiction over a person described in Section 602 by reason of the commission of an offense listed in subdivision (b) of Section 707, who has been confined in a state hospital or other appropriate public or private mental health facility pursuant to Section 702.3 until that person attains 25 years of age, unless the court that committed the person finds, after notice and hearing, that the persons sanity has been restored.
220	161
221		-	(5) (A~~) Qualified sales and use taxes means any state sales and use taxes imposed by Part 1 (commencing with~~ Section ~~6001), on the operative date of the act adding this section~~.
	162	+	(f) The court may retain jurisdiction over a person while that person is the subject of a warrant for arrest issued pursuant to Section 663.
222	163
223		-	(B) ~~Notwithstanding subparagraph~~ (A), ~~qualified sales~~ and ~~use taxes does not mean taxes imposed~~ by ~~Section 6051.2~~, ~~6051.5~~, ~~6201.2~~, ~~6201.5~~, ~~Part 1.5 (commencing~~ ~~with~~ Section ~~7200~~), ~~Part 1.~~6 (commencing with Section ~~7251~~), or ~~Section 35 of Article XIII of the California Constitution~~.
	164	+	(g) Notwithstanding subdivisions (b) and (d), (b), (c), and (e), a person who is committed by the juvenile court to the Department of Corrections and Rehabilitation, Division of Juvenile Justice on or after July 1, 2012, but before July 1, 2018, and who is found to be a person described in Section 602 by reason of the commission of an offense listed in subdivision (b) of Section 707 shall be discharged upon the expiration of a two-year period of control, or when the person attains 23 years of age, whichever occurs later, unless an order for further detention has been made by the committing court pursuant to Article 6 (commencing with Section 1800) of Chapter 1 of Division 2.5. This subdivision does not apply to a person who is committed to the Department of Corrections and Rehabilitation, Division of Juvenile Justice, or to a person who is confined in a state hospital or other appropriate public or private mental health facility, by a court prior to July 1, 2012, pursuant to subdivisions (b) and (d). (b), (c), and (e).
224	165
225		-	(b) (1) A ~~qualified taxpayer may~~, in ~~lieu~~ of ~~claiming~~ the ~~credit allowed by~~ Section ~~17053.85~~, ~~17053.95, 17053.98, 23685,~~ ~~23695~~, or ~~23698~~, ~~make~~ an ~~irrevocable election~~ to ~~apply the credit amount against qualified sales and use taxes imposed on the qualified taxpayer in accordance~~ with ~~this section~~.
	166	+	(h) (1) Notwithstanding subdivision (f), (g), a person who is committed by the juvenile court to the Department of Corrections and Rehabilitation, Division of Juvenile Facilities, Justice, on or after July 1, 2018, and who is found to be a person described in Section 602 by reason of the commission of an offense listed in subdivision (c) of Section 290.008 of the Penal Code or subdivision (b) of Section 707 of this code, shall be discharged upon the expiration of a two-year period of control, or when the person attains 23 years of age, whichever occurs later, unless an order for further detention has been made by the committing court pursuant to Article 6 (commencing with Section 1800) of Chapter 1 of Division 2.5.
226	167
227		-	(2) ~~An affiliate may~~, in ~~lieu~~ of ~~claiming~~ the ~~assigned portion~~ of ~~the credit allowed by Section 23685, 23695~~, or ~~23698~~, ~~make~~ an ~~irrevocable election~~ to ~~apply the assigned portion~~ of ~~the credit amount against qualified sales and use taxes imposed on the affiliate in accordance with this section~~.
	168	+	(2) A person who, at the time of adjudication of a crime or crimes, would, in criminal court, have faced an aggregate sentence of seven years or more, shall be discharged upon the expiration of a two-year period of control, or when the person attains 25 years of age, whichever occurs later, unless an order for further detention has been made by the committing court pursuant to Article 6 (commencing with Section 1800) of Chapter 1 of Division 2.5.
228	169
229		-	(c) ~~(1)~~ A ~~qualified taxpayer or affiliate shall submit~~ to the ~~California~~ Department of ~~Tax~~ and ~~Fee Administration an irrevocable election~~, in a ~~form~~ as ~~prescribed by the California Department of Tax and Fee Administration, which shall include, but not be limited to, the following information:~~
	170	+	(3) This subdivision does not apply to a person who is committed to the Department of Corrections and Rehabilitation, Division of Juvenile Facilities, Justice, or to a person who is confined in a state hospital or other appropriate public or private mental health facility, by a court prior to July 1, 2018, as described in subdivision (f). (g).
230	171
231		-	(A) ~~Representation that~~ the ~~claimant is a qualified taxpayer or an affiliate~~.
	172	+	(i) The amendments to this section made by Chapter 342 of the Statutes of 2012 apply retroactively.
232	173
233		-	(B) ~~Statement~~ of ~~the dates on which~~ the ~~production period began and ended~~.
	174	+	(j) This section does not change the period of juvenile court jurisdiction for a person committed to the Division of Juvenile Facilities Justice prior to July 1, 2018.
234	175
235		-	(C) ~~The credit amount~~, ~~and if an affiliate, the portion of the credit amount assigned to it and documentation supporting the assignment of that portion of the credit amount~~.
	176	+	(k) This section shall become operative July 1, 2021.
236	177
237		-	(D) The ~~amount~~ of ~~qualified sales~~ and ~~use taxes~~ the ~~claimant remitted~~ to the ~~California Department~~ of ~~Tax and Fee Administration during~~ the ~~period commencing~~ on ~~the first day~~ of ~~the calendar quarter commencing immediately before the beginning of the production period~~, ~~and ending on the date the claimant was required to file its most recent sales and use tax return with the California Department of Tax and Fee Administration~~.
	178	+	SEC. 5. Section 704 of the Welfare and Institutions Code is amended to read:704. (a) If the court has determined that a minor is a person described by Section 602, or if the court has determined that a minor is a person described by Section 601 and a supplemental petition for commitment of such the minor to the Youth Authority Division of Juvenile Justice has been filed pursuant to Section 777, and such the minor is otherwise eligible for commitment to the Youth Authority, Division of Juvenile Justice, the court, if it concludes that a disposition of the case in the best interest of the minor requires such observation and diagnosis as can be made at a diagnostic and treatment center of the Youth Authority, Division of Juvenile Justice, may continue the hearing and order that such the minor be placed temporarily in such a center for a period not to exceed 90 days, with the further provision in such order that the Director of the Youth Authority Division of Juvenile Justice report to the court its diagnosis and recommendations concerning the minor within the 90-day period.(b) The Director of Youth Authority the Division of Juvenile Justice shall, within the 90 days, cause the minor to be observed and examined and shall forward to the court his the diagnosis and recommendation concerning such the minors future care, supervision, and treatment.(c) The Youth Authority Division of Juvenile Justice shall accept such that person if there is in effect a contract made pursuant to Section 1752.1 and if it believes that the person can be materially benefited by such diagnostic and treatment services, and if the Director of the Youth Authority Division of Juvenile Justice certifies that staff and institutions are available. No such person shall A person shall not be transported to any facility under the jurisdiction of the Youth Authority Division of Juvenile Justice until the director has notified the referring court of the place to which said person is to be transported and the time at which he the person can be received.(d) The probation officer of the county in which an order is made placing a minor in a diagnostic and treatment center pursuant to this section, or any other peace officer designated by the court, shall execute the order placing such the minor in the center or returning him the minor therefrom to the court. The expense of such the probation officer or other peace officer incurred in executing such the order is a charge upon the county in which the court is situated.(e) This section shall become inoperative on July 1, 2021, and, as of January 1, 2022, is repealed.
238	179
239		-	(E) A copy of the credit certificate issued pursuant to subparagraph (C) of paragraph (2) of subdivision (g) of Section 17053.85 or 23685 or subparagraph (D) of paragraph (3) of subdivision (g) of Section 17053.95, 17053.98, 23695, or 23698.
240		-
241		-	(2) The election shall be filed on or before the date on which the qualified taxpayer or affiliate would first be allowed to claim a credit pursuant to Section 17053.85, 17053.95, 17053.98, 23685, 23695, or 23698 on its tax return.
242		-
243		-	(3) (A) For those amounts for which an irrevocable election is made in lieu of tax credits allowed pursuant to Section 17053.85, 17053.95, 17053.98, 23685, 23695, or 23698 that would otherwise be allowed for any taxable year beginning on or after January 1, 2020, and before January 1, 2023, 2022, subdivision (d) and paragraph (1) of subdivision (e) shall only apply to those in-lieu credit amounts that do not exceed five million dollars ($5,000,000) for that taxable year.
244		-
245		-	(B) For those amounts for which an irrevocable election is made in lieu of tax credits allowed pursuant to Section 17053.85, 17053.95, 17053.98, 23685, 23695, or 23698 that would otherwise be allowed for any taxable year beginning on or after January 1, 2020, and before January 1, 2023, 2022, that are in excess of five million dollars ($5,000,000) for that taxable year, subdivision (f) shall apply.
246		-
247		-	(d) (1) The claimant may elect to obtain a refund of qualified sales and use taxes paid during the period described in subparagraph (D) of paragraph (1) of subdivision (c). If the claimant elects to obtain a refund of qualified sales and use taxes, the claimant shall file a claim for refund with the irrevocable election described in subdivision (c). The refund amount shall not exceed, for a qualified taxpayer, the credit amount, or for an affiliate, the portion of the credit amount assigned to it.
248		-
249		-	(2) No interest shall be paid on any amount refunded or credited pursuant to paragraph (1).
250		-
251		-	(e) (1) If the claimant does not elect to obtain a refund or in the case where the credit amount, or assigned portion, exceeds the amount of its claim for refund for the qualified sales and use taxes, the claimant may, for the reporting periods in the five years following the last reporting period as described in subparagraph (D) of paragraph (1) of subdivision (c), offset any remaining credit amount, or assigned portion, against the qualified sales and use taxes imposed during those reporting periods.
252		-
253		-	(2) Notwithstanding paragraph (1), the total amount of refunds or credit offsets claimed under subdivision (d) and paragraph (1) of this subdivision in lieu of tax credits allowed pursuant to Section 17053.85, 17053.95, 17053.98, 23685, 23695, or 23698 that would otherwise be allowed for a taxable year beginning on or after January 1, 2020, and before January 1, 2023, 2022, shall not exceed five million dollars ($5,000,000).
254		-
255		-	(f) Notwithstanding subdivision (d) and paragraph (1) of subdivision (e), for those amounts for which an irrevocable election is made in lieu of tax credits allowed pursuant to Section 17053.85, 17053.95, 17053.98, 23685, 23695, or 23698 that would otherwise be allowed for any taxable year beginning on or after January 1, 2020, and before January 1, 2023, 2022, that are in excess of five million dollars ($5,000,000) for that taxable year, the claimant may offset that excess credit amount, or assigned portion, against the qualified sales and use taxes imposed during the reporting periods in the five years both of the following and including the reporting period beginning on and after January 1, 2024. shall apply:
256		-
257		-	(1) The claimant may elect to obtain a refund of the qualified sales and use taxes paid or offset that excess credit amount, or assigned portion against the qualified sales and use taxes imposed, during the reporting periods that occur during the 2021 calendar year. The total amount of refunds or credit offsets claimed under this paragraph, subdivision (d), and paragraph (1) of subdivision (e) shall not exceed five million dollars ($5,000,000) in the 2021 calendar year for each claimant.
258		-
259		-	(2) If the claimant has not exhausted the excess credit amount, or assigned portion, as provided by paragraph (1), the claimant may offset the remaining excess credit amount, or assigned portion, against the qualified sales and use taxes imposed during the reporting periods in the five years following and including the reporting period beginning on and after January 1, 2022.
260		-
261		-	(g) Section 6961 shall apply to any refund, or part thereof, that is erroneously made and any credit, or part thereof, that is erroneously allowed pursuant to this section.
262		-
263		-	(h) The California Department of Tax and Fee Administration shall provide an annual listing to the Franchise Tax Board, in a form and manner agreed upon by the California Department of Tax and Fee Administration and the Franchise Tax Board, of the qualified taxpayers, or affiliates that have been assigned a portion of the credit allowed under Section 23685 pursuant to subdivision (c) of Section 23685, Section 23695 pursuant to subdivision (c) of Section 23695, or Section 23698 pursuant to subdivision (c) of Section 23698, who, during the year, have made an irrevocable election pursuant to this section and the credit amount, or portion of the credit amount, claimed by each qualified taxpayer or affiliate.
264		-
265		-	(i) The California Department of Tax and Fee Administration may prescribe rules and regulations for the administration of this section.
266		-
267		-	(j) The amendments made to this section by the act adding this subdivision shall not apply to irrevocable elections made before the operative date of the act adding this subdivision.
268		-
269		-	(k) The amendments made to this section by the act adding this subdivision shall apply to irrevocable elections made on and after June 29, 2020.
270		-
271		-	SEC. 5. Section 12209 of the Revenue and Taxation Code is amended to read:12209. (a) Notwithstanding Sections 12207 and 12208 to the contrary, for the years 2020, 2021, 2020 and 2022, 2021, the total amount of all credits otherwise allowable under Sections 12207 and 12208, including any credit amount allowed to be carried over pursuant to those sections or subdivision (c), shall not reduce the tax, as described by Section 12201, by more than five million dollars ($5,000,000) for a given year.(b) (1) The amount of any credit otherwise allowable for a year under Section 12207 that is not allowed due to the application of this section shall remain a credit carryover amount under Section 12207.(2) The carryover period for any credit allowable under Section 12207 that is not allowed due to the application of this section shall be increased by the number of years the credit or any portion thereof was not allowed.(c) The amount of any credit otherwise allowable for a year under Section 12208 that was not allowed due to the application of this section may be carried over to reduce the tax, as described by Section 12201, for the following year, and succeeding years if necessary, until the credit amount or any portion thereof that was not allowed due to the application of this section is exhausted. However, any credit amount under Section 12208 that is allowed to be carried over pursuant to this subdivision is also subject to the limitation in subdivision (a).(d) The limitation under subdivision (a) shall not apply to the credit allowed by Section 12206 (relating to credit for low-income housing).
272		-
273		-	SEC. 5. Section 12209 of the Revenue and Taxation Code is amended to read:
	180	+	SEC. 5. Section 704 of the Welfare and Institutions Code is amended to read:
274	181
275	182		### SEC. 5.
276	183
277		-	~~12209~~. (a) ~~Notwithstanding Sections 12207 and 12208 to~~ the ~~contrary, for the years 2020,~~ 2021, 2020 and 2022, 2021, the total amount of all credits otherwise allowable under Sections 12207 and 12208, including any credit amount allowed to be carried over pursuant to those sections or subdivision (c), shall not reduce the tax, as described by Section ~~12201~~, by ~~more than five million dollars ($5~~,~~000~~,~~000)~~ for a ~~given year~~.(b) ~~(1)~~ The ~~amount~~ of ~~any credit otherwise allowable for a year under Section 12207 that is not allowed due~~ to the ~~application~~ of this section shall remain a credit carryover amount under Section 12207.(2) The carryover period for any credit allowable under Section 12207 that is not allowed due to the application of this section shall be increased by the number of years the credit or any portion thereof was not allowed.(c) The amount of any credit otherwise allowable for a year under Section 12208 that was not allowed due to the application of this section may be carried over to reduce the tax, as ~~described by Section 12201~~, ~~for the following year~~, ~~and succeeding years if necessary, until the credit amount or any portion thereof that was not allowed due to the application of this section~~ is ~~exhausted~~. However, any credit amount under Section 12208 that is allowed to be carried over pursuant to this subdivision is also subject to the limitation in subdivision (a).(d) The limitation under subdivision (a) shall not apply to the credit allowed by Section 12206 (relating to credit for low-income housing).
	184	+	704. (a) If the court has determined that a minor is a person described by Section 602, or if the court has determined that a minor is a person described by Section 601 and a supplemental petition for commitment of such the minor to the Youth Authority Division of Juvenile Justice has been filed pursuant to Section 777, and such the minor is otherwise eligible for commitment to the Youth Authority, Division of Juvenile Justice, the court, if it concludes that a disposition of the case in the best interest of the minor requires such observation and diagnosis as can be made at a diagnostic and treatment center of the Youth Authority, Division of Juvenile Justice, may continue the hearing and order that such the minor be placed temporarily in such a center for a period not to exceed 90 days, with the further provision in such order that the Director of the Youth Authority Division of Juvenile Justice report to the court its diagnosis and recommendations concerning the minor within the 90-day period.(b) The Director of Youth Authority the Division of Juvenile Justice shall, within the 90 days, cause the minor to be observed and examined and shall forward to the court his the diagnosis and recommendation concerning such the minors future care, supervision, and treatment.(c) The Youth Authority Division of Juvenile Justice shall accept such that person if there is in effect a contract made pursuant to Section 1752.1 and if it believes that the person can be materially benefited by such diagnostic and treatment services, and if the Director of the Youth Authority Division of Juvenile Justice certifies that staff and institutions are available. No such person shall A person shall not be transported to any facility under the jurisdiction of the Youth Authority Division of Juvenile Justice until the director has notified the referring court of the place to which said person is to be transported and the time at which he the person can be received.(d) The probation officer of the county in which an order is made placing a minor in a diagnostic and treatment center pursuant to this section, or any other peace officer designated by the court, shall execute the order placing such the minor in the center or returning him the minor therefrom to the court. The expense of such the probation officer or other peace officer incurred in executing such the order is a charge upon the county in which the court is situated.(e) This section shall become inoperative on July 1, 2021, and, as of January 1, 2022, is repealed.
278	185
279		-	~~12209~~. (a) ~~Notwithstanding Sections 12207 and 12208 to~~ the ~~contrary, for the years 2020,~~ 2021, 2020 and 2022, 2021, the total amount of all credits otherwise allowable under Sections 12207 and 12208, including any credit amount allowed to be carried over pursuant to those sections or subdivision (c), shall not reduce the tax, as described by Section ~~12201~~, by ~~more than five million dollars ($5~~,~~000~~,~~000)~~ for a ~~given year~~.(b) ~~(1)~~ The ~~amount~~ of ~~any credit otherwise allowable for a year under Section 12207 that is not allowed due~~ to the ~~application~~ of this section shall remain a credit carryover amount under Section 12207.(2) The carryover period for any credit allowable under Section 12207 that is not allowed due to the application of this section shall be increased by the number of years the credit or any portion thereof was not allowed.(c) The amount of any credit otherwise allowable for a year under Section 12208 that was not allowed due to the application of this section may be carried over to reduce the tax, as ~~described by Section 12201~~, ~~for the following year~~, ~~and succeeding years if necessary, until the credit amount or any portion thereof that was not allowed due to the application of this section~~ is ~~exhausted~~. However, any credit amount under Section 12208 that is allowed to be carried over pursuant to this subdivision is also subject to the limitation in subdivision (a).(d) The limitation under subdivision (a) shall not apply to the credit allowed by Section 12206 (relating to credit for low-income housing).
	186	+	704. (a) If the court has determined that a minor is a person described by Section 602, or if the court has determined that a minor is a person described by Section 601 and a supplemental petition for commitment of such the minor to the Youth Authority Division of Juvenile Justice has been filed pursuant to Section 777, and such the minor is otherwise eligible for commitment to the Youth Authority, Division of Juvenile Justice, the court, if it concludes that a disposition of the case in the best interest of the minor requires such observation and diagnosis as can be made at a diagnostic and treatment center of the Youth Authority, Division of Juvenile Justice, may continue the hearing and order that such the minor be placed temporarily in such a center for a period not to exceed 90 days, with the further provision in such order that the Director of the Youth Authority Division of Juvenile Justice report to the court its diagnosis and recommendations concerning the minor within the 90-day period.(b) The Director of Youth Authority the Division of Juvenile Justice shall, within the 90 days, cause the minor to be observed and examined and shall forward to the court his the diagnosis and recommendation concerning such the minors future care, supervision, and treatment.(c) The Youth Authority Division of Juvenile Justice shall accept such that person if there is in effect a contract made pursuant to Section 1752.1 and if it believes that the person can be materially benefited by such diagnostic and treatment services, and if the Director of the Youth Authority Division of Juvenile Justice certifies that staff and institutions are available. No such person shall A person shall not be transported to any facility under the jurisdiction of the Youth Authority Division of Juvenile Justice until the director has notified the referring court of the place to which said person is to be transported and the time at which he the person can be received.(d) The probation officer of the county in which an order is made placing a minor in a diagnostic and treatment center pursuant to this section, or any other peace officer designated by the court, shall execute the order placing such the minor in the center or returning him the minor therefrom to the court. The expense of such the probation officer or other peace officer incurred in executing such the order is a charge upon the county in which the court is situated.(e) This section shall become inoperative on July 1, 2021, and, as of January 1, 2022, is repealed.
280	187
281		-	~~12209~~. (a) ~~Notwithstanding Sections 12207 and 12208 to~~ the ~~contrary, for the years 2020,~~ 2021, 2020 and 2022, 2021, the total amount of all credits otherwise allowable under Sections 12207 and 12208, including any credit amount allowed to be carried over pursuant to those sections or subdivision (c), shall not reduce the tax, as described by Section ~~12201~~, by ~~more than five million dollars ($5~~,~~000~~,~~000)~~ for a ~~given year~~.(b) ~~(1)~~ The ~~amount~~ of ~~any credit otherwise allowable for a year under Section 12207 that is not allowed due~~ to the ~~application~~ of this section shall remain a credit carryover amount under Section 12207.(2) The carryover period for any credit allowable under Section 12207 that is not allowed due to the application of this section shall be increased by the number of years the credit or any portion thereof was not allowed.(c) The amount of any credit otherwise allowable for a year under Section 12208 that was not allowed due to the application of this section may be carried over to reduce the tax, as ~~described by Section 12201~~, ~~for the following year~~, ~~and succeeding years if necessary, until the credit amount or any portion thereof that was not allowed due to the application of this section~~ is ~~exhausted~~. However, any credit amount under Section 12208 that is allowed to be carried over pursuant to this subdivision is also subject to the limitation in subdivision (a).(d) The limitation under subdivision (a) shall not apply to the credit allowed by Section 12206 (relating to credit for low-income housing).
	188	+	704. (a) If the court has determined that a minor is a person described by Section 602, or if the court has determined that a minor is a person described by Section 601 and a supplemental petition for commitment of such the minor to the Youth Authority Division of Juvenile Justice has been filed pursuant to Section 777, and such the minor is otherwise eligible for commitment to the Youth Authority, Division of Juvenile Justice, the court, if it concludes that a disposition of the case in the best interest of the minor requires such observation and diagnosis as can be made at a diagnostic and treatment center of the Youth Authority, Division of Juvenile Justice, may continue the hearing and order that such the minor be placed temporarily in such a center for a period not to exceed 90 days, with the further provision in such order that the Director of the Youth Authority Division of Juvenile Justice report to the court its diagnosis and recommendations concerning the minor within the 90-day period.(b) The Director of Youth Authority the Division of Juvenile Justice shall, within the 90 days, cause the minor to be observed and examined and shall forward to the court his the diagnosis and recommendation concerning such the minors future care, supervision, and treatment.(c) The Youth Authority Division of Juvenile Justice shall accept such that person if there is in effect a contract made pursuant to Section 1752.1 and if it believes that the person can be materially benefited by such diagnostic and treatment services, and if the Director of the Youth Authority Division of Juvenile Justice certifies that staff and institutions are available. No such person shall A person shall not be transported to any facility under the jurisdiction of the Youth Authority Division of Juvenile Justice until the director has notified the referring court of the place to which said person is to be transported and the time at which he the person can be received.(d) The probation officer of the county in which an order is made placing a minor in a diagnostic and treatment center pursuant to this section, or any other peace officer designated by the court, shall execute the order placing such the minor in the center or returning him the minor therefrom to the court. The expense of such the probation officer or other peace officer incurred in executing such the order is a charge upon the county in which the court is situated.(e) This section shall become inoperative on July 1, 2021, and, as of January 1, 2022, is repealed.
282	189
283	190
284	191
285		-	~~12209~~. (a) ~~Notwithstanding Sections 12207 and 12208 to~~ the ~~contrary, for the years 2020,~~ 2021, 2020 and 2022, 2021, the total amount of all credits otherwise allowable under Sections 12207 and 12208, including any credit amount allowed to be carried over pursuant to those sections or subdivision (c), shall not reduce the tax, as described by Section ~~12201~~, by ~~more than five million dollars ($5~~,~~000~~,~~000)~~ for a ~~given year~~.
	192	+	704. (a) If the court has determined that a minor is a person described by Section 602, or if the court has determined that a minor is a person described by Section 601 and a supplemental petition for commitment of such the minor to the Youth Authority Division of Juvenile Justice has been filed pursuant to Section 777, and such the minor is otherwise eligible for commitment to the Youth Authority, Division of Juvenile Justice, the court, if it concludes that a disposition of the case in the best interest of the minor requires such observation and diagnosis as can be made at a diagnostic and treatment center of the Youth Authority, Division of Juvenile Justice, may continue the hearing and order that such the minor be placed temporarily in such a center for a period not to exceed 90 days, with the further provision in such order that the Director of the Youth Authority Division of Juvenile Justice report to the court its diagnosis and recommendations concerning the minor within the 90-day period.
286	193
287		-	(b) ~~(1)~~ The ~~amount~~ of ~~any credit otherwise allowable for a year under Section 12207 that is not allowed due~~ to the ~~application of this section shall remain a credit carryover amount under Section 12207~~.
	194	+	(b) The Director of Youth Authority the Division of Juvenile Justice shall, within the 90 days, cause the minor to be observed and examined and shall forward to the court his the diagnosis and recommendation concerning such the minors future care, supervision, and treatment.
288	195
289		-	(2) The ~~carryover period for~~ any ~~credit allowable~~ under ~~Section 12207 that~~ is ~~not allowed due to~~ the ~~application of this section shall~~ be ~~increased by the number of years the credit or any portion thereof was not allowed~~.
	196	+	(c) The Youth Authority Division of Juvenile Justice shall accept such that person if there is in effect a contract made pursuant to Section 1752.1 and if it believes that the person can be materially benefited by such diagnostic and treatment services, and if the Director of the Youth Authority Division of Juvenile Justice certifies that staff and institutions are available. No such person shall A person shall not be transported to any facility under the jurisdiction of the Youth Authority Division of Juvenile Justice until the director has notified the referring court of the place to which said person is to be transported and the time at which he the person can be received.
290	197
291		-	(c) The ~~amount~~ of ~~any credit otherwise allowable for~~ a ~~year under Section 12208 that was not allowed due to the application of this section may be carried over to reduce the tax, as described by Section 12201, for the following year,~~ and succeeding years if necessary, until the credit amount or any portion thereof that was not allowed due to the application of this section is exhausted. However, any credit amount under Section 12208 that is allowed to be carried over pursuant to this ~~subdivision is also subject~~ to the ~~limitation~~ in ~~subdivision (~~a).
	198	+	(d) The probation officer of the county in which an order is made placing a minor in a diagnostic and treatment center pursuant to this section, or any other peace officer designated by the court, shall execute the order placing such the minor in the center or returning him the minor therefrom to the court. The expense of such the probation officer or other peace officer incurred in executing such the order is a charge upon the county in which the court is situated.
292	199
293		-	(d) ~~The limitation under subdivision (a)~~ shall ~~not apply to the credit allowed by Section 12206 (relating~~ ~~to credit for low-income housing)~~.
	200	+	(e) This section shall become inoperative on July 1, 2021, and, as of January 1, 2022, is repealed.
294	201
295		-	SEC. 6. Section ~~17039~~ of the ~~Revenue~~ and ~~Taxation~~ Code is amended to read:~~17039~~. (a) ~~Notwithstanding any provision in this part~~ to the ~~contrary,~~ for the ~~purposes~~ of ~~computing tax credits~~, the ~~term net tax means~~ the ~~tax imposed under either Section 17041 or 17048 plus~~ the ~~tax imposed under Section 17504 (relating~~ ~~to lump-sum distributions) less the credits allowed by Section 17054 (relating to personal exemption credits) and any amount imposed under paragraph (1)~~ of ~~subdivision (d) and paragraph (1) of subdivision (e) of Section 17560. Notwithstanding the preceding sentence, the net tax~~ shall not ~~be less than~~ the ~~tax imposed under Section 17504 (relating~~ to the ~~separate tax on lump-sum~~ ~~distributions)~~, ~~if any.~~ ~~Credits~~ shall be ~~allowed against net tax~~ in the ~~following order:~~(1) ~~Credits that do~~ not contain carryover or refundable provisions, except those described in paragraphs (4) and (5).(2) Credits that contain carryover provisions but do not contain refundable provisions, except for those that are allowed to reduce net tax below the tentative minimum tax, as defined by Section 17062.(3) Credits that contain both carryover and refundable provisions.(4) The minimum tax credit allowed by Section 17063 (relating to the ~~alternative minimum tax)~~.(5) ~~Credits (A) For taxable years beginning~~ on ~~or after January~~ 1, ~~2002~~, and ~~before~~ January 1, 2022, credits that are allowed to reduce net tax below the tentative minimum tax, as defined by Section 17062.(B) For taxable years beginning on or after January 1, 2022, credits that are allowed to reduce net tax below the tentative minimum tax, as defined by Section 17062, except the credit described in paragraph (7).(6) Credits for taxes paid to other states allowed by Chapter 12 (commencing with Section 18001).(7) For taxable years beginning on or after January 1, 2022, the credit allowed by Section 17052.10 (relating to the elective tax under the Small Business Relief Act).(7)(8) Credits that contain refundable provisions but do not contain carryover provisions.The order within each paragraph shall be determined by the Franchise Tax Board.(b) Notwithstanding the provisions of Sections 17061 (relating to refunds pursuant to the Unemployment Insurance Code) and 19002 (relating to tax withholding), the credits provided in those sections shall be allowed in the order provided in paragraph (6) of subdivision (a).(c) (1) Notwithstanding any other provision of this part, no tax credit shall reduce the tax imposed under Section 17041 or 17048 plus the tax imposed under Section 17504 (relating to the separate tax on lump-sum distributions) below the tentative minimum tax, as defined by Section 17062, except the following credits:(A) The credit allowed by former Section 17052.2 (relating to teacher retention tax credit). credit, repealed ~~on August 24, 2007)~~.(B) The credit allowed by former Section 17052.4 (relating to solar energy). energy, repealed on December 1, 1989).(C) The credit allowed by former Section 17052.5 (relating to solar energy, repealed on January 1, 1987).(D) The credit allowed by former Section 17052.5 (relating to solar energy, repealed on December 1, 1994).(E) The credit allowed by Section 17052.12 (relating to research expenses).(F) The credit allowed by former Section 17052.13 (relating to sales and use tax credit). credit, repealed on January 1, 1997).(G) The credit allowed by former Section 17052.15 (relating to Los Angeles Revitalization Zone sales tax credit). credit, repealed on December 1, 1998).(H) The credit allowed by Section 17052.25 (relating to the adoption costs credit).(I) The credit allowed by Section 17053.5 (relating to the renters credit).(J) The credit allowed by former Section 17053.8 (relating to enterprise zone hiring credit). credit, repealed on October 3, 1997).(K) The credit allowed by former Section 17053.10 (relating to Los Angeles Revitalization Zone hiring credit). credit, repealed on December 1, 1998).(L) The credit allowed by former Section 17053.11 (relating to program area hiring credit). credit, repealed on January 1, 1997).(M) For each taxable year beginning on or after January 1, 1994, the credit allowed by former Section 17053.17 (relating to Los Angeles Revitalization Zone hiring credit). credit, repealed on December 1, 1998).(N) The credit allowed by former Section 17053.33 (relating to targeted tax area sales or use tax credit). credit, repealed on December 1, 2015).(O) The credit allowed by former Section 17053.34 (relating to targeted tax area hiring credit). credit, repealed on December 1, 2019).(P) The credit allowed by former Section 17053.49 (relating to qualified property). property, repealed on January 1, 2004).(Q) The credit allowed by former Section 17053.70 (relating to enterprise zone sales or use tax credit). credit, repealed on December 1, 2015).(R) The credit allowed by former Section 17053.74 (relating to enterprise zone hiring credit). credit, repealed on December 1, 2019).(S) The credit allowed by Section 17054 (relating to credits for personal exemption).(T) The credit allowed by Section 17054.5 (relating to the credits for a qualified joint custody head of household and a qualified taxpayer with a dependent parent).(U) The credit allowed by Section 17054.7 (relating to the credit for a senior head of household).(V) The credit allowed by former Section 17057 (relating to clinical testing expenses). expenses, repealed on December 1, 1993).(W) The credit allowed by Section 17058 (relating to low-income housing).(X) For taxable years beginning on or after January 1, 2014, the credit allowed by Section 17059.2 (relating to GO-Biz California Competes Credit).(Y) The credit allowed by Section 17061 (relating to refunds pursuant to the Unemployment Insurance Code).(Z) Credits for taxes paid to other states allowed by Chapter 12 (commencing with Section 18001).(AA) The credit allowed by Section 19002 (relating to tax withholding).(AB) For taxable years beginning on or after January 1, 2014, the credit allowed by former Section 17053.86 (relating to the College Access Tax Credit Fund). Fund, repealed on December 1, 2017).(AC) For taxable years beginning on or after January 1, 2017, the credit allowed by Section 17053.87 (relating to the College Access Tax Credit Fund).(AD) For taxable years beginning on or after January 1, 2021, the credit allowed by Section 17052.10 (relating to the elective tax under the Small Business Relief Act).(2) Any credit that is partially or totally denied under paragraph (1) shall be allowed to be carried over and applied to the net tax in succeeding taxable years, if the provisions relating to that credit include a provision to allow a carryover when that credit exceeds the net tax.(d) Unless otherwise provided, any remaining carryover of a credit allowed by a section that has been repealed or made inoperative shall continue to be allowed to be carried over under the provisions of that section as it read immediately before being repealed or becoming inoperative.(e) (1) Unless otherwise provided, if two or more taxpayers (other than spouses) share in costs that would be eligible for a tax credit allowed under this part, each taxpayer shall be eligible to receive the tax credit in proportion to his or her the taxpayers respective share of the costs paid or incurred.(2) In the case of a partnership, the credit shall be allocated among the partners pursuant to a written partnership agreement in accordance with Section 704 of the Internal Revenue Code, relating to partners distributive share.(3) In the case of spouses who file separate returns, the credit may be taken by either or equally divided between them.(f) Unless otherwise provided, in the case of a partnership, any credit allowed by this part shall be computed at the partnership level, and any limitation on the expenses qualifying for the credit or limitation upon the amount of the credit shall be applied to the partnership and to each partner.(g) (1) With respect to any taxpayer that directly or indirectly owns an interest in a business entity that is disregarded for tax purposes pursuant to Section 23038 and any regulations thereunder, the amount of any credit or credit carryforward allowable for any taxable year attributable to the disregarded business entity shall be limited in accordance with paragraphs (2) and (3).(2) The amount of any credit otherwise allowed under this part, including any credit carryover from prior years, that may be applied to reduce the taxpayers net tax, as defined in subdivision (a), for the taxable year shall be limited to an amount equal to the excess of the taxpayers regular tax (as defined in Section 17062), determined by including income attributable to the disregarded business entity that generated the credit or credit carryover, over the taxpayers regular tax (as defined in Section 17062), determined by excluding the income attributable to that disregarded business entity. A credit shall not be allowed if the taxpayers regular tax (as defined in Section 17062), determined by including the income attributable to the disregarded business entity, is less than the taxpayers regular tax (as defined in Section 17062), determined by excluding the income attributable to the disregarded business entity.(3) If the amount of a credit allowed pursuant to the section establishing the credit exceeds the amount allowable under this subdivision in any taxable year, the excess amount may be carried over to subsequent taxable years pursuant to subdivisions (c) and (d).(h) (1) Unless otherwise specifically provided, in the case of a taxpayer that is a partner or shareholder of an eligible pass-thru entity described in paragraph (2), any credit passed through to the taxpayer in the taxpayers first taxable year beginning on or after the date the credit is no longer operative may be claimed by the taxpayer in that taxable year, notwithstanding the repeal of the statute authorizing the credit before the close of that taxable year.(2) For purposes of this subdivision, eligible pass-thru entity means any partnership or S corporation that files its return on a fiscal year basis pursuant to Section 18566, and that is entitled to a credit pursuant to this part for the taxable year that begins during the last year the credit is operative.(3) This subdivision applies to credits that become inoperative on or after the operative date of the act adding this subdivision. January 1, 2002.(i) The amendments made to this section by the act adding this subdivision shall apply as follows:(1) The amendments to subdivisions (a), (e), and (h) shall be operative for taxable years beginning on or after January 1, 2022.(2) The amendments to subdivision (c) shall be operative for taxable years beginning on or after January 1, 2021.
	202	+	SEC. 6. Section 707.2 of the Welfare and Institutions Code is amended to read:707.2. (a) Prior to sentence and after considering a recommendation on the issue which shall be made by the probation department, the court of criminal jurisdiction may remand the minor to the custody of the Department of the Youth Authority Division of Juvenile Justice for a period not to exceed 90 days for the purpose of evaluation and report concerning his or her the minors amenability to training and treatment offered by the Department of the Youth Authority. Division of Juvenile Justice. If the court decides not to remand the minor to the custody of the Department of the Youth Authority, Division of Juvenile Justice, the court shall make a finding on the record that the amenability evaluation is not necessary. However, a court of criminal jurisdiction shall not sentence any minor who was under the age of 16 years 16 years of age when he or she the minor committed any criminal offense to the state prison unless he or she the minor has first been remanded to the custody of the Department of the Youth Authority Division of Juvenile Justice for evaluation and report pursuant to this section.The need to protect society, the nature and seriousness of the offense, the interests of justice, and the needs of the minor shall be the primary considerations in the courts determination of the appropriate disposition for the minor.(b) This section shall not apply where commitment to the Department of the Youth Authority Division of Juvenile Justice is prohibited pursuant to Section 1732.6.(c) This section shall become inoperative on July 1, 2021, and, as of January 1, 2022, is repealed.
296	203
297		-	SEC. 6. Section ~~17039~~ of the ~~Revenue~~ and ~~Taxation~~ Code is amended to read:
	204	+	SEC. 6. Section 707.2 of the Welfare and Institutions Code is amended to read:
298	205
299	206		### SEC. 6.
300	207
301		-	~~17039~~. (a) ~~Notwithstanding any provision in this part~~ to the ~~contrary,~~ for the ~~purposes~~ of ~~computing tax credits~~, the ~~term net tax means~~ the ~~tax imposed under either Section 17041 or 17048 plus~~ the ~~tax imposed under Section 17504 (relating~~ ~~to lump-sum distributions) less the credits allowed by Section 17054 (relating to personal exemption credits) and any amount imposed under paragraph (1)~~ of ~~subdivision (d) and paragraph (1) of subdivision (e) of Section 17560. Notwithstanding the preceding sentence, the net tax~~ shall not ~~be less than~~ the ~~tax imposed under Section 17504 (relating~~ to the ~~separate tax on lump-sum~~ ~~distributions)~~, ~~if any.~~ ~~Credits~~ shall be ~~allowed against net tax~~ in the ~~following order:~~(1) ~~Credits that do~~ not contain carryover or refundable provisions, except those described in paragraphs (4) and (5).(2) Credits that contain carryover provisions but do not contain refundable provisions, except for those that are allowed to reduce net tax below the tentative minimum tax, as defined by Section 17062.(3) Credits that contain both carryover and refundable provisions.(4) The minimum tax credit allowed by Section 17063 (relating to the ~~alternative minimum tax)~~.(5) ~~Credits (A) For taxable years beginning~~ on ~~or after January~~ 1, ~~2002~~, and ~~before~~ January 1, 2022, credits that are allowed to reduce net tax below the tentative minimum tax, as defined by Section 17062.(B) For taxable years beginning on or after January 1, 2022, credits that are allowed to reduce net tax below the tentative minimum tax, as defined by Section 17062, except the credit described in paragraph (7).(6) Credits for taxes paid to other states allowed by Chapter 12 (commencing with Section 18001).(7) For taxable years beginning on or after January 1, 2022, the credit allowed by Section 17052.10 (relating to the elective tax under the Small Business Relief Act).(7)(8) Credits that contain refundable provisions but do not contain carryover provisions.The order within each paragraph shall be determined by the Franchise Tax Board.(b) Notwithstanding the provisions of Sections 17061 (relating to refunds pursuant to the Unemployment Insurance Code) and 19002 (relating to tax withholding), the credits provided in those sections shall be allowed in the order provided in paragraph (6) of subdivision (a).(c) (1) Notwithstanding any other provision of this part, no tax credit shall reduce the tax imposed under Section 17041 or 17048 plus the tax imposed under Section 17504 (relating to the separate tax on lump-sum distributions) below the tentative minimum tax, as defined by Section 17062, except the following credits:(A) The credit allowed by former Section 17052.2 (relating to teacher retention tax credit). credit, repealed ~~on August 24, 2007)~~.(B) The credit allowed by former Section 17052.4 (relating to solar energy). energy, repealed on December 1, 1989).(C) The credit allowed by former Section 17052.5 (relating to solar energy, repealed on January 1, 1987).(D) The credit allowed by former Section 17052.5 (relating to solar energy, repealed on December 1, 1994).(E) The credit allowed by Section 17052.12 (relating to research expenses).(F) The credit allowed by former Section 17052.13 (relating to sales and use tax credit). credit, repealed on January 1, 1997).(G) The credit allowed by former Section 17052.15 (relating to Los Angeles Revitalization Zone sales tax credit). credit, repealed on December 1, 1998).(H) The credit allowed by Section 17052.25 (relating to the adoption costs credit).(I) The credit allowed by Section 17053.5 (relating to the renters credit).(J) The credit allowed by former Section 17053.8 (relating to enterprise zone hiring credit). credit, repealed on October 3, 1997).(K) The credit allowed by former Section 17053.10 (relating to Los Angeles Revitalization Zone hiring credit). credit, repealed on December 1, 1998).(L) The credit allowed by former Section 17053.11 (relating to program area hiring credit). credit, repealed on January 1, 1997).(M) For each taxable year beginning on or after January 1, 1994, the credit allowed by former Section 17053.17 (relating to Los Angeles Revitalization Zone hiring credit). credit, repealed on December 1, 1998).(N) The credit allowed by former Section 17053.33 (relating to targeted tax area sales or use tax credit). credit, repealed on December 1, 2015).(O) The credit allowed by former Section 17053.34 (relating to targeted tax area hiring credit). credit, repealed on December 1, 2019).(P) The credit allowed by former Section 17053.49 (relating to qualified property). property, repealed on January 1, 2004).(Q) The credit allowed by former Section 17053.70 (relating to enterprise zone sales or use tax credit). credit, repealed on December 1, 2015).(R) The credit allowed by former Section 17053.74 (relating to enterprise zone hiring credit). credit, repealed on December 1, 2019).(S) The credit allowed by Section 17054 (relating to credits for personal exemption).(T) The credit allowed by Section 17054.5 (relating to the credits for a qualified joint custody head of household and a qualified taxpayer with a dependent parent).(U) The credit allowed by Section 17054.7 (relating to the credit for a senior head of household).(V) The credit allowed by former Section 17057 (relating to clinical testing expenses). expenses, repealed on December 1, 1993).(W) The credit allowed by Section 17058 (relating to low-income housing).(X) For taxable years beginning on or after January 1, 2014, the credit allowed by Section 17059.2 (relating to GO-Biz California Competes Credit).(Y) The credit allowed by Section 17061 (relating to refunds pursuant to the Unemployment Insurance Code).(Z) Credits for taxes paid to other states allowed by Chapter 12 (commencing with Section 18001).(AA) The credit allowed by Section 19002 (relating to tax withholding).(AB) For taxable years beginning on or after January 1, 2014, the credit allowed by former Section 17053.86 (relating to the College Access Tax Credit Fund). Fund, repealed on December 1, 2017).(AC) For taxable years beginning on or after January 1, 2017, the credit allowed by Section 17053.87 (relating to the College Access Tax Credit Fund).(AD) For taxable years beginning on or after January 1, 2021, the credit allowed by Section 17052.10 (relating to the elective tax under the Small Business Relief Act).(2) Any credit that is partially or totally denied under paragraph (1) shall be allowed to be carried over and applied to the net tax in succeeding taxable years, if the provisions relating to that credit include a provision to allow a carryover when that credit exceeds the net tax.(d) Unless otherwise provided, any remaining carryover of a credit allowed by a section that has been repealed or made inoperative shall continue to be allowed to be carried over under the provisions of that section as it read immediately before being repealed or becoming inoperative.(e) (1) Unless otherwise provided, if two or more taxpayers (other than spouses) share in costs that would be eligible for a tax credit allowed under this part, each taxpayer shall be eligible to receive the tax credit in proportion to his or her the taxpayers respective share of the costs paid or incurred.(2) In the case of a partnership, the credit shall be allocated among the partners pursuant to a written partnership agreement in accordance with Section 704 of the Internal Revenue Code, relating to partners distributive share.(3) In the case of spouses who file separate returns, the credit may be taken by either or equally divided between them.(f) Unless otherwise provided, in the case of a partnership, any credit allowed by this part shall be computed at the partnership level, and any limitation on the expenses qualifying for the credit or limitation upon the amount of the credit shall be applied to the partnership and to each partner.(g) (1) With respect to any taxpayer that directly or indirectly owns an interest in a business entity that is disregarded for tax purposes pursuant to Section 23038 and any regulations thereunder, the amount of any credit or credit carryforward allowable for any taxable year attributable to the disregarded business entity shall be limited in accordance with paragraphs (2) and (3).(2) The amount of any credit otherwise allowed under this part, including any credit carryover from prior years, that may be applied to reduce the taxpayers net tax, as defined in subdivision (a), for the taxable year shall be limited to an amount equal to the excess of the taxpayers regular tax (as defined in Section 17062), determined by including income attributable to the disregarded business entity that generated the credit or credit carryover, over the taxpayers regular tax (as defined in Section 17062), determined by excluding the income attributable to that disregarded business entity. A credit shall not be allowed if the taxpayers regular tax (as defined in Section 17062), determined by including the income attributable to the disregarded business entity, is less than the taxpayers regular tax (as defined in Section 17062), determined by excluding the income attributable to the disregarded business entity.(3) If the amount of a credit allowed pursuant to the section establishing the credit exceeds the amount allowable under this subdivision in any taxable year, the excess amount may be carried over to subsequent taxable years pursuant to subdivisions (c) and (d).(h) (1) Unless otherwise specifically provided, in the case of a taxpayer that is a partner or shareholder of an eligible pass-thru entity described in paragraph (2), any credit passed through to the taxpayer in the taxpayers first taxable year beginning on or after the date the credit is no longer operative may be claimed by the taxpayer in that taxable year, notwithstanding the repeal of the statute authorizing the credit before the close of that taxable year.(2) For purposes of this subdivision, eligible pass-thru entity means any partnership or S corporation that files its return on a fiscal year basis pursuant to Section 18566, and that is entitled to a credit pursuant to this part for the taxable year that begins during the last year the credit is operative.(3) This subdivision applies to credits that become inoperative on or after the operative date of the act adding this subdivision. January 1, 2002.(i) The amendments made to this section by the act adding this subdivision shall apply as follows:(1) The amendments to subdivisions (a), (e), and (h) shall be operative for taxable years beginning on or after January 1, 2022.(2) The amendments to subdivision (c) shall be operative for taxable years beginning on or after January 1, 2021.
	208	+	707.2. (a) Prior to sentence and after considering a recommendation on the issue which shall be made by the probation department, the court of criminal jurisdiction may remand the minor to the custody of the Department of the Youth Authority Division of Juvenile Justice for a period not to exceed 90 days for the purpose of evaluation and report concerning his or her the minors amenability to training and treatment offered by the Department of the Youth Authority. Division of Juvenile Justice. If the court decides not to remand the minor to the custody of the Department of the Youth Authority, Division of Juvenile Justice, the court shall make a finding on the record that the amenability evaluation is not necessary. However, a court of criminal jurisdiction shall not sentence any minor who was under the age of 16 years 16 years of age when he or she the minor committed any criminal offense to the state prison unless he or she the minor has first been remanded to the custody of the Department of the Youth Authority Division of Juvenile Justice for evaluation and report pursuant to this section.The need to protect society, the nature and seriousness of the offense, the interests of justice, and the needs of the minor shall be the primary considerations in the courts determination of the appropriate disposition for the minor.(b) This section shall not apply where commitment to the Department of the Youth Authority Division of Juvenile Justice is prohibited pursuant to Section 1732.6.(c) This section shall become inoperative on July 1, 2021, and, as of January 1, 2022, is repealed.
302	209
303		-	~~17039~~. (a) ~~Notwithstanding any provision in this part~~ to the ~~contrary,~~ for the ~~purposes~~ of ~~computing tax credits~~, the ~~term net tax means~~ the ~~tax imposed under either Section 17041 or 17048 plus~~ the ~~tax imposed under Section 17504 (relating~~ ~~to lump-sum distributions) less the credits allowed by Section 17054 (relating to personal exemption credits) and any amount imposed under paragraph (1)~~ of ~~subdivision (d) and paragraph (1) of subdivision (e) of Section 17560. Notwithstanding the preceding sentence, the net tax~~ shall not ~~be less than~~ the ~~tax imposed under Section 17504 (relating~~ to the ~~separate tax on lump-sum~~ ~~distributions)~~, ~~if any.~~ ~~Credits~~ shall be ~~allowed against net tax~~ in the ~~following order:~~(1) ~~Credits that do~~ not contain carryover or refundable provisions, except those described in paragraphs (4) and (5).(2) Credits that contain carryover provisions but do not contain refundable provisions, except for those that are allowed to reduce net tax below the tentative minimum tax, as defined by Section 17062.(3) Credits that contain both carryover and refundable provisions.(4) The minimum tax credit allowed by Section 17063 (relating to the ~~alternative minimum tax)~~.(5) ~~Credits (A) For taxable years beginning~~ on ~~or after January~~ 1, ~~2002~~, and ~~before~~ January 1, 2022, credits that are allowed to reduce net tax below the tentative minimum tax, as defined by Section 17062.(B) For taxable years beginning on or after January 1, 2022, credits that are allowed to reduce net tax below the tentative minimum tax, as defined by Section 17062, except the credit described in paragraph (7).(6) Credits for taxes paid to other states allowed by Chapter 12 (commencing with Section 18001).(7) For taxable years beginning on or after January 1, 2022, the credit allowed by Section 17052.10 (relating to the elective tax under the Small Business Relief Act).(7)(8) Credits that contain refundable provisions but do not contain carryover provisions.The order within each paragraph shall be determined by the Franchise Tax Board.(b) Notwithstanding the provisions of Sections 17061 (relating to refunds pursuant to the Unemployment Insurance Code) and 19002 (relating to tax withholding), the credits provided in those sections shall be allowed in the order provided in paragraph (6) of subdivision (a).(c) (1) Notwithstanding any other provision of this part, no tax credit shall reduce the tax imposed under Section 17041 or 17048 plus the tax imposed under Section 17504 (relating to the separate tax on lump-sum distributions) below the tentative minimum tax, as defined by Section 17062, except the following credits:(A) The credit allowed by former Section 17052.2 (relating to teacher retention tax credit). credit, repealed ~~on August 24, 2007)~~.(B) The credit allowed by former Section 17052.4 (relating to solar energy). energy, repealed on December 1, 1989).(C) The credit allowed by former Section 17052.5 (relating to solar energy, repealed on January 1, 1987).(D) The credit allowed by former Section 17052.5 (relating to solar energy, repealed on December 1, 1994).(E) The credit allowed by Section 17052.12 (relating to research expenses).(F) The credit allowed by former Section 17052.13 (relating to sales and use tax credit). credit, repealed on January 1, 1997).(G) The credit allowed by former Section 17052.15 (relating to Los Angeles Revitalization Zone sales tax credit). credit, repealed on December 1, 1998).(H) The credit allowed by Section 17052.25 (relating to the adoption costs credit).(I) The credit allowed by Section 17053.5 (relating to the renters credit).(J) The credit allowed by former Section 17053.8 (relating to enterprise zone hiring credit). credit, repealed on October 3, 1997).(K) The credit allowed by former Section 17053.10 (relating to Los Angeles Revitalization Zone hiring credit). credit, repealed on December 1, 1998).(L) The credit allowed by former Section 17053.11 (relating to program area hiring credit). credit, repealed on January 1, 1997).(M) For each taxable year beginning on or after January 1, 1994, the credit allowed by former Section 17053.17 (relating to Los Angeles Revitalization Zone hiring credit). credit, repealed on December 1, 1998).(N) The credit allowed by former Section 17053.33 (relating to targeted tax area sales or use tax credit). credit, repealed on December 1, 2015).(O) The credit allowed by former Section 17053.34 (relating to targeted tax area hiring credit). credit, repealed on December 1, 2019).(P) The credit allowed by former Section 17053.49 (relating to qualified property). property, repealed on January 1, 2004).(Q) The credit allowed by former Section 17053.70 (relating to enterprise zone sales or use tax credit). credit, repealed on December 1, 2015).(R) The credit allowed by former Section 17053.74 (relating to enterprise zone hiring credit). credit, repealed on December 1, 2019).(S) The credit allowed by Section 17054 (relating to credits for personal exemption).(T) The credit allowed by Section 17054.5 (relating to the credits for a qualified joint custody head of household and a qualified taxpayer with a dependent parent).(U) The credit allowed by Section 17054.7 (relating to the credit for a senior head of household).(V) The credit allowed by former Section 17057 (relating to clinical testing expenses). expenses, repealed on December 1, 1993).(W) The credit allowed by Section 17058 (relating to low-income housing).(X) For taxable years beginning on or after January 1, 2014, the credit allowed by Section 17059.2 (relating to GO-Biz California Competes Credit).(Y) The credit allowed by Section 17061 (relating to refunds pursuant to the Unemployment Insurance Code).(Z) Credits for taxes paid to other states allowed by Chapter 12 (commencing with Section 18001).(AA) The credit allowed by Section 19002 (relating to tax withholding).(AB) For taxable years beginning on or after January 1, 2014, the credit allowed by former Section 17053.86 (relating to the College Access Tax Credit Fund). Fund, repealed on December 1, 2017).(AC) For taxable years beginning on or after January 1, 2017, the credit allowed by Section 17053.87 (relating to the College Access Tax Credit Fund).(AD) For taxable years beginning on or after January 1, 2021, the credit allowed by Section 17052.10 (relating to the elective tax under the Small Business Relief Act).(2) Any credit that is partially or totally denied under paragraph (1) shall be allowed to be carried over and applied to the net tax in succeeding taxable years, if the provisions relating to that credit include a provision to allow a carryover when that credit exceeds the net tax.(d) Unless otherwise provided, any remaining carryover of a credit allowed by a section that has been repealed or made inoperative shall continue to be allowed to be carried over under the provisions of that section as it read immediately before being repealed or becoming inoperative.(e) (1) Unless otherwise provided, if two or more taxpayers (other than spouses) share in costs that would be eligible for a tax credit allowed under this part, each taxpayer shall be eligible to receive the tax credit in proportion to his or her the taxpayers respective share of the costs paid or incurred.(2) In the case of a partnership, the credit shall be allocated among the partners pursuant to a written partnership agreement in accordance with Section 704 of the Internal Revenue Code, relating to partners distributive share.(3) In the case of spouses who file separate returns, the credit may be taken by either or equally divided between them.(f) Unless otherwise provided, in the case of a partnership, any credit allowed by this part shall be computed at the partnership level, and any limitation on the expenses qualifying for the credit or limitation upon the amount of the credit shall be applied to the partnership and to each partner.(g) (1) With respect to any taxpayer that directly or indirectly owns an interest in a business entity that is disregarded for tax purposes pursuant to Section 23038 and any regulations thereunder, the amount of any credit or credit carryforward allowable for any taxable year attributable to the disregarded business entity shall be limited in accordance with paragraphs (2) and (3).(2) The amount of any credit otherwise allowed under this part, including any credit carryover from prior years, that may be applied to reduce the taxpayers net tax, as defined in subdivision (a), for the taxable year shall be limited to an amount equal to the excess of the taxpayers regular tax (as defined in Section 17062), determined by including income attributable to the disregarded business entity that generated the credit or credit carryover, over the taxpayers regular tax (as defined in Section 17062), determined by excluding the income attributable to that disregarded business entity. A credit shall not be allowed if the taxpayers regular tax (as defined in Section 17062), determined by including the income attributable to the disregarded business entity, is less than the taxpayers regular tax (as defined in Section 17062), determined by excluding the income attributable to the disregarded business entity.(3) If the amount of a credit allowed pursuant to the section establishing the credit exceeds the amount allowable under this subdivision in any taxable year, the excess amount may be carried over to subsequent taxable years pursuant to subdivisions (c) and (d).(h) (1) Unless otherwise specifically provided, in the case of a taxpayer that is a partner or shareholder of an eligible pass-thru entity described in paragraph (2), any credit passed through to the taxpayer in the taxpayers first taxable year beginning on or after the date the credit is no longer operative may be claimed by the taxpayer in that taxable year, notwithstanding the repeal of the statute authorizing the credit before the close of that taxable year.(2) For purposes of this subdivision, eligible pass-thru entity means any partnership or S corporation that files its return on a fiscal year basis pursuant to Section 18566, and that is entitled to a credit pursuant to this part for the taxable year that begins during the last year the credit is operative.(3) This subdivision applies to credits that become inoperative on or after the operative date of the act adding this subdivision. January 1, 2002.(i) The amendments made to this section by the act adding this subdivision shall apply as follows:(1) The amendments to subdivisions (a), (e), and (h) shall be operative for taxable years beginning on or after January 1, 2022.(2) The amendments to subdivision (c) shall be operative for taxable years beginning on or after January 1, 2021.
	210	+	707.2. (a) Prior to sentence and after considering a recommendation on the issue which shall be made by the probation department, the court of criminal jurisdiction may remand the minor to the custody of the Department of the Youth Authority Division of Juvenile Justice for a period not to exceed 90 days for the purpose of evaluation and report concerning his or her the minors amenability to training and treatment offered by the Department of the Youth Authority. Division of Juvenile Justice. If the court decides not to remand the minor to the custody of the Department of the Youth Authority, Division of Juvenile Justice, the court shall make a finding on the record that the amenability evaluation is not necessary. However, a court of criminal jurisdiction shall not sentence any minor who was under the age of 16 years 16 years of age when he or she the minor committed any criminal offense to the state prison unless he or she the minor has first been remanded to the custody of the Department of the Youth Authority Division of Juvenile Justice for evaluation and report pursuant to this section.The need to protect society, the nature and seriousness of the offense, the interests of justice, and the needs of the minor shall be the primary considerations in the courts determination of the appropriate disposition for the minor.(b) This section shall not apply where commitment to the Department of the Youth Authority Division of Juvenile Justice is prohibited pursuant to Section 1732.6.(c) This section shall become inoperative on July 1, 2021, and, as of January 1, 2022, is repealed.
304	211
305		-	~~17039~~. (a) ~~Notwithstanding any provision in this part~~ to the ~~contrary,~~ for the ~~purposes~~ of ~~computing tax credits~~, the ~~term net tax means~~ the ~~tax imposed under either Section 17041 or 17048 plus~~ the ~~tax imposed under Section 17504 (relating~~ ~~to lump-sum distributions) less the credits allowed by Section 17054 (relating to personal exemption credits) and any amount imposed under paragraph (1)~~ of ~~subdivision (d) and paragraph (1) of subdivision (e) of Section 17560. Notwithstanding the preceding sentence, the net tax~~ shall not ~~be less than~~ the ~~tax imposed under Section 17504 (relating~~ to the ~~separate tax on lump-sum~~ ~~distributions)~~, ~~if any.~~ ~~Credits~~ shall be ~~allowed against net tax~~ in the ~~following order:~~(1) ~~Credits that do~~ not contain carryover or refundable provisions, except those described in paragraphs (4) and (5).(2) Credits that contain carryover provisions but do not contain refundable provisions, except for those that are allowed to reduce net tax below the tentative minimum tax, as defined by Section 17062.(3) Credits that contain both carryover and refundable provisions.(4) The minimum tax credit allowed by Section 17063 (relating to the ~~alternative minimum tax)~~.(5) ~~Credits (A) For taxable years beginning~~ on ~~or after January~~ 1, ~~2002~~, and ~~before~~ January 1, 2022, credits that are allowed to reduce net tax below the tentative minimum tax, as defined by Section 17062.(B) For taxable years beginning on or after January 1, 2022, credits that are allowed to reduce net tax below the tentative minimum tax, as defined by Section 17062, except the credit described in paragraph (7).(6) Credits for taxes paid to other states allowed by Chapter 12 (commencing with Section 18001).(7) For taxable years beginning on or after January 1, 2022, the credit allowed by Section 17052.10 (relating to the elective tax under the Small Business Relief Act).(7)(8) Credits that contain refundable provisions but do not contain carryover provisions.The order within each paragraph shall be determined by the Franchise Tax Board.(b) Notwithstanding the provisions of Sections 17061 (relating to refunds pursuant to the Unemployment Insurance Code) and 19002 (relating to tax withholding), the credits provided in those sections shall be allowed in the order provided in paragraph (6) of subdivision (a).(c) (1) Notwithstanding any other provision of this part, no tax credit shall reduce the tax imposed under Section 17041 or 17048 plus the tax imposed under Section 17504 (relating to the separate tax on lump-sum distributions) below the tentative minimum tax, as defined by Section 17062, except the following credits:(A) The credit allowed by former Section 17052.2 (relating to teacher retention tax credit). credit, repealed ~~on August 24, 2007)~~.(B) The credit allowed by former Section 17052.4 (relating to solar energy). energy, repealed on December 1, 1989).(C) The credit allowed by former Section 17052.5 (relating to solar energy, repealed on January 1, 1987).(D) The credit allowed by former Section 17052.5 (relating to solar energy, repealed on December 1, 1994).(E) The credit allowed by Section 17052.12 (relating to research expenses).(F) The credit allowed by former Section 17052.13 (relating to sales and use tax credit). credit, repealed on January 1, 1997).(G) The credit allowed by former Section 17052.15 (relating to Los Angeles Revitalization Zone sales tax credit). credit, repealed on December 1, 1998).(H) The credit allowed by Section 17052.25 (relating to the adoption costs credit).(I) The credit allowed by Section 17053.5 (relating to the renters credit).(J) The credit allowed by former Section 17053.8 (relating to enterprise zone hiring credit). credit, repealed on October 3, 1997).(K) The credit allowed by former Section 17053.10 (relating to Los Angeles Revitalization Zone hiring credit). credit, repealed on December 1, 1998).(L) The credit allowed by former Section 17053.11 (relating to program area hiring credit). credit, repealed on January 1, 1997).(M) For each taxable year beginning on or after January 1, 1994, the credit allowed by former Section 17053.17 (relating to Los Angeles Revitalization Zone hiring credit). credit, repealed on December 1, 1998).(N) The credit allowed by former Section 17053.33 (relating to targeted tax area sales or use tax credit). credit, repealed on December 1, 2015).(O) The credit allowed by former Section 17053.34 (relating to targeted tax area hiring credit). credit, repealed on December 1, 2019).(P) The credit allowed by former Section 17053.49 (relating to qualified property). property, repealed on January 1, 2004).(Q) The credit allowed by former Section 17053.70 (relating to enterprise zone sales or use tax credit). credit, repealed on December 1, 2015).(R) The credit allowed by former Section 17053.74 (relating to enterprise zone hiring credit). credit, repealed on December 1, 2019).(S) The credit allowed by Section 17054 (relating to credits for personal exemption).(T) The credit allowed by Section 17054.5 (relating to the credits for a qualified joint custody head of household and a qualified taxpayer with a dependent parent).(U) The credit allowed by Section 17054.7 (relating to the credit for a senior head of household).(V) The credit allowed by former Section 17057 (relating to clinical testing expenses). expenses, repealed on December 1, 1993).(W) The credit allowed by Section 17058 (relating to low-income housing).(X) For taxable years beginning on or after January 1, 2014, the credit allowed by Section 17059.2 (relating to GO-Biz California Competes Credit).(Y) The credit allowed by Section 17061 (relating to refunds pursuant to the Unemployment Insurance Code).(Z) Credits for taxes paid to other states allowed by Chapter 12 (commencing with Section 18001).(AA) The credit allowed by Section 19002 (relating to tax withholding).(AB) For taxable years beginning on or after January 1, 2014, the credit allowed by former Section 17053.86 (relating to the College Access Tax Credit Fund). Fund, repealed on December 1, 2017).(AC) For taxable years beginning on or after January 1, 2017, the credit allowed by Section 17053.87 (relating to the College Access Tax Credit Fund).(AD) For taxable years beginning on or after January 1, 2021, the credit allowed by Section 17052.10 (relating to the elective tax under the Small Business Relief Act).(2) Any credit that is partially or totally denied under paragraph (1) shall be allowed to be carried over and applied to the net tax in succeeding taxable years, if the provisions relating to that credit include a provision to allow a carryover when that credit exceeds the net tax.(d) Unless otherwise provided, any remaining carryover of a credit allowed by a section that has been repealed or made inoperative shall continue to be allowed to be carried over under the provisions of that section as it read immediately before being repealed or becoming inoperative.(e) (1) Unless otherwise provided, if two or more taxpayers (other than spouses) share in costs that would be eligible for a tax credit allowed under this part, each taxpayer shall be eligible to receive the tax credit in proportion to his or her the taxpayers respective share of the costs paid or incurred.(2) In the case of a partnership, the credit shall be allocated among the partners pursuant to a written partnership agreement in accordance with Section 704 of the Internal Revenue Code, relating to partners distributive share.(3) In the case of spouses who file separate returns, the credit may be taken by either or equally divided between them.(f) Unless otherwise provided, in the case of a partnership, any credit allowed by this part shall be computed at the partnership level, and any limitation on the expenses qualifying for the credit or limitation upon the amount of the credit shall be applied to the partnership and to each partner.(g) (1) With respect to any taxpayer that directly or indirectly owns an interest in a business entity that is disregarded for tax purposes pursuant to Section 23038 and any regulations thereunder, the amount of any credit or credit carryforward allowable for any taxable year attributable to the disregarded business entity shall be limited in accordance with paragraphs (2) and (3).(2) The amount of any credit otherwise allowed under this part, including any credit carryover from prior years, that may be applied to reduce the taxpayers net tax, as defined in subdivision (a), for the taxable year shall be limited to an amount equal to the excess of the taxpayers regular tax (as defined in Section 17062), determined by including income attributable to the disregarded business entity that generated the credit or credit carryover, over the taxpayers regular tax (as defined in Section 17062), determined by excluding the income attributable to that disregarded business entity. A credit shall not be allowed if the taxpayers regular tax (as defined in Section 17062), determined by including the income attributable to the disregarded business entity, is less than the taxpayers regular tax (as defined in Section 17062), determined by excluding the income attributable to the disregarded business entity.(3) If the amount of a credit allowed pursuant to the section establishing the credit exceeds the amount allowable under this subdivision in any taxable year, the excess amount may be carried over to subsequent taxable years pursuant to subdivisions (c) and (d).(h) (1) Unless otherwise specifically provided, in the case of a taxpayer that is a partner or shareholder of an eligible pass-thru entity described in paragraph (2), any credit passed through to the taxpayer in the taxpayers first taxable year beginning on or after the date the credit is no longer operative may be claimed by the taxpayer in that taxable year, notwithstanding the repeal of the statute authorizing the credit before the close of that taxable year.(2) For purposes of this subdivision, eligible pass-thru entity means any partnership or S corporation that files its return on a fiscal year basis pursuant to Section 18566, and that is entitled to a credit pursuant to this part for the taxable year that begins during the last year the credit is operative.(3) This subdivision applies to credits that become inoperative on or after the operative date of the act adding this subdivision. January 1, 2002.(i) The amendments made to this section by the act adding this subdivision shall apply as follows:(1) The amendments to subdivisions (a), (e), and (h) shall be operative for taxable years beginning on or after January 1, 2022.(2) The amendments to subdivision (c) shall be operative for taxable years beginning on or after January 1, 2021.
	212	+	707.2. (a) Prior to sentence and after considering a recommendation on the issue which shall be made by the probation department, the court of criminal jurisdiction may remand the minor to the custody of the Department of the Youth Authority Division of Juvenile Justice for a period not to exceed 90 days for the purpose of evaluation and report concerning his or her the minors amenability to training and treatment offered by the Department of the Youth Authority. Division of Juvenile Justice. If the court decides not to remand the minor to the custody of the Department of the Youth Authority, Division of Juvenile Justice, the court shall make a finding on the record that the amenability evaluation is not necessary. However, a court of criminal jurisdiction shall not sentence any minor who was under the age of 16 years 16 years of age when he or she the minor committed any criminal offense to the state prison unless he or she the minor has first been remanded to the custody of the Department of the Youth Authority Division of Juvenile Justice for evaluation and report pursuant to this section.The need to protect society, the nature and seriousness of the offense, the interests of justice, and the needs of the minor shall be the primary considerations in the courts determination of the appropriate disposition for the minor.(b) This section shall not apply where commitment to the Department of the Youth Authority Division of Juvenile Justice is prohibited pursuant to Section 1732.6.(c) This section shall become inoperative on July 1, 2021, and, as of January 1, 2022, is repealed.
306	213
307	214
308	215
309		-	~~17039~~. (a) ~~Notwithstanding any provision in this part~~ to the ~~contrary,~~ for the ~~purposes~~ of ~~computing tax credits~~, the ~~term net tax means~~ the ~~tax imposed under either Section 17041 or 17048 plus~~ the ~~tax imposed under Section 17504 (relating~~ ~~to lump-sum distributions) less the credits allowed by Section 17054 (relating to personal exemption credits) and any amount imposed under paragraph (1)~~ of ~~subdivision (d) and paragraph (1) of subdivision (e) of Section 17560. Notwithstanding the preceding sentence, the net tax~~ shall not ~~be less than~~ the ~~tax imposed under Section 17504 (relating~~ to the ~~separate tax on lump-sum~~ ~~distributions), if any. Credits shall be allowed against net tax in~~ the ~~following order:~~
	216	+	707.2. (a) Prior to sentence and after considering a recommendation on the issue which shall be made by the probation department, the court of criminal jurisdiction may remand the minor to the custody of the Department of the Youth Authority Division of Juvenile Justice for a period not to exceed 90 days for the purpose of evaluation and report concerning his or her the minors amenability to training and treatment offered by the Department of the Youth Authority. Division of Juvenile Justice. If the court decides not to remand the minor to the custody of the Department of the Youth Authority, Division of Juvenile Justice, the court shall make a finding on the record that the amenability evaluation is not necessary. However, a court of criminal jurisdiction shall not sentence any minor who was under the age of 16 years 16 years of age when he or she the minor committed any criminal offense to the state prison unless he or she the minor has first been remanded to the custody of the Department of the Youth Authority Division of Juvenile Justice for evaluation and report pursuant to this section.
310	217
311		-	~~(1) Credits that do not contain carryover or refundable provisions~~, ~~except those described~~ in ~~paragraphs (4) and (5)~~.
	218	+	The need to protect society, the nature and seriousness of the offense, the interests of justice, and the needs of the minor shall be the primary considerations in the courts determination of the appropriate disposition for the minor.
312	219
313		-	(2) ~~Credits that contain carryover provisions but do~~ not ~~contain refundable provisions, except for those that are allowed~~ to ~~reduce net tax below~~ the ~~tentative minimum tax,~~ ~~as defined by~~ Section ~~17062~~.
	220	+	(b) This section shall not apply where commitment to the Department of the Youth Authority Division of Juvenile Justice is prohibited pursuant to Section 1732.6.
314	221
315		-	(3) ~~Credits that contain both carryover~~ and ~~refundable provisions~~.
	222	+	(c) This section shall become inoperative on July 1, 2021, and, as of January 1, 2022, is repealed.
316	223
317		-	(4) ~~The minimum tax credit allowed~~ by Section ~~17063 (relating to the alternative minimum tax).~~
	224	+	SEC. 7. Section 726 of the Welfare and Institutions Code is amended to read:726. (a) In all cases in which a minor is adjudged a ward or dependent child of the court, the court may limit the control to be exercised over the ward or dependent child by any parent or guardian and shall, in its order, clearly and specifically set forth all those limitations, but no ward or dependent child shall be taken from the physical custody of a parent or guardian, unless upon the hearing the court finds one of the following facts:(1) That the parent or guardian is incapable of providing or has failed or neglected to provide proper maintenance, training, and education for the minor.(2) That the minor has been tried on probation while in custody and has failed to reform.(3) That the welfare of the minor requires that custody be taken from the minors parent or guardian.(b) Whenever the court specifically limits the right of the parent or guardian to make educational or developmental services decisions for the minor, the court shall at the same time appoint a responsible adult to make educational or developmental services decisions for the child until one of the following occurs:(1) The minor reaches 18 years of age, unless the child chooses not to make educational or developmental services decisions for himself or herself, themselves, or is deemed by the court to be incompetent.(2) Another responsible adult is appointed to make educational or developmental services decisions for the minor pursuant to this section.(3) The right of the parent or guardian to make educational or developmental services decisions for the minor is fully restored.(4) A successor guardian or conservator is appointed.(5) The child is placed into a planned permanent living arrangement pursuant to paragraph (5) or (6) of subdivision (b) of Section 727.3, at which time, for educational decisionmaking, the foster parent, relative caretaker, or nonrelative extended family member, as defined in Section 362.7, has the right to represent the child in educational matters pursuant to Section 56055 of the Education Code, and for decisions relating to developmental services, unless the court specifies otherwise, the foster parent, relative caregiver, or nonrelative extended family member of the planned permanent living arrangement has the right to represent the child in matters related to developmental services.(c) An individual who would have a conflict of interest in representing the child, as specified under federal regulations, may not be appointed to make educational decisions. The limitations applicable to conflicts of interest for educational rights holders shall also apply to authorized representatives for developmental services decisions pursuant to subdivision (b) of Section 4701.6. For purposes of this section, an individual who would have a conflict of interest means a person having any interests that might restrict or bias his or her their ability to make educational or developmental services decisions, including, but not limited to, those conflicts of interest prohibited by Section 1126 of the Government Code, and the receipt of compensation or attorneys fees for the provision of services pursuant to this section. A foster parent may not be deemed to have a conflict of interest solely because he or she the foster parent receives compensation for the provision of services pursuant to this section.(1) If the court limits the parents educational rights pursuant to subdivision (a), the court shall determine whether there is a responsible adult who is a relative, nonrelative extended family member, or other adult known to the child and who is available and willing to serve as the childs educational representative before appointing an educational representative or surrogate who is not known to the child.If the court cannot identify a responsible adult who is known to the child and available to make educational decisions for the child and paragraphs (1) to (5), inclusive, of subdivision (b) do not apply, and the child has either been referred to the local educational agency for special education and related services or has a valid individualized education program, the court shall refer the child to the local educational agency for appointment of a surrogate parent pursuant to Section 7579.5 of the Government Code.(2) All educational and school placement decisions shall seek to ensure that the child is in the least restrictive educational programs and has access to the academic resources, services, and extracurricular and enrichment activities that are available to all pupils. In all instances, educational and school placement decisions shall be based on the best interests of the child. If an educational representative or surrogate is appointed for the child, the representative or surrogate shall meet with the child, shall investigate the childs educational needs and whether those needs are being met, and shall, before each review hearing held under Article 10 (commencing with Section 360), provide information and recommendations concerning the childs educational needs to the childs social worker, make written recommendations to the court, or attend the hearing and participate in those portions of the hearing that concern the childs education.(3) Nothing in this section in any way removes the obligation to appoint surrogate parents for students with disabilities who are without parental representation in special education procedures as required by state and federal law, including Section 1415(b)(2) of Title 20 of the United States Code, Section 56050 of the Education Code, Section 7579.5 of the Government Code, and Rule 5.650 of the California Rules of Court.If the court appoints a developmental services decisionmaker pursuant to this section, he or she they shall have the authority to access the childs information and records pursuant to subdivision (u) of Section 4514 and subdivision (y) of Section 5328, and to act on the childs behalf for the purposes of the individual program plan process pursuant to Sections 4646, 4646.5, and 4648 and the fair hearing process pursuant to Chapter 7 (commencing with Section 4700) of Division 4.5, and as set forth in the court order.(d) (1) If the minor is removed from the physical custody of his or her the minors parent or guardian as the result of an order of wardship made pursuant to Section 602, the order shall specify that the minor may not be held in physical confinement for a period in excess of the maximum middle term of imprisonment which could be imposed upon an adult convicted of the offense or offenses which brought or continued the minor under the jurisdiction of the juvenile court.(2) As used in this section and in Section 731, maximum term of imprisonment means the longest middle of the three time periods set forth in paragraph (3) of subdivision (a) of Section 1170 of the Penal Code, but without the need to follow the provisions of subdivision (b) of Section 1170 of the Penal Code or to consider time for good behavior or participation pursuant to Sections 2930, 2931, and 2932 of the Penal Code, plus enhancements which must be proven if pled.(3) If the court elects to aggregate the period of physical confinement on multiple counts or multiple petitions, including previously sustained petitions adjudging the minor a ward within Section 602, the maximum term of imprisonment shall be the aggregate term of imprisonment specified in subdivision (a) of Section 1170.1 of the Penal Code, which includes any additional term imposed pursuant to Section 667, 667.5, 667.6, or 12022.1 of the Penal Code, and Section 11370.2 of the Health and Safety Code.(4) If the charged offense is a misdemeanor or a felony not included within the scope of Section 1170 of the Penal Code, the maximum term of imprisonment is the longest middle term of imprisonment prescribed by law.(5) Physical confinement means placement in a juvenile hall, ranch, camp, forestry camp or secure juvenile home pursuant to Section 730, or in any institution operated by the Department of Corrections and Rehabilitation, Division of Juvenile Justice.(6) This section does not limit the power of the court to retain jurisdiction over a minor and to make appropriate orders pursuant to Section 727 for the period permitted by Section 607.
318	225
319		-	~~(5) Credits (A) For taxable years beginning on or after January 1, 2002,~~ and ~~before January 1,~~ ~~2022, credits that are allowed~~ to ~~reduce net tax below the tentative minimum tax, as defined by Section 17062.~~
	226	+	SEC. 7. Section 726 of the Welfare and Institutions Code is amended to read:
320	227
321		-	(B) For taxable years beginning on or after January 1, 2022, credits that are allowed to reduce net tax below the tentative minimum tax, as defined by Section 17062, except the credit described in paragraph (7).
	228	+	### SEC. 7.
322	229
323		-	(6) ~~Credits~~ for ~~taxes paid to~~ other states ~~allowed~~ by ~~Chapter 12 (commencing with Section 18001).~~
	230	+	726. (a) In all cases in which a minor is adjudged a ward or dependent child of the court, the court may limit the control to be exercised over the ward or dependent child by any parent or guardian and shall, in its order, clearly and specifically set forth all those limitations, but no ward or dependent child shall be taken from the physical custody of a parent or guardian, unless upon the hearing the court finds one of the following facts:(1) That the parent or guardian is incapable of providing or has failed or neglected to provide proper maintenance, training, and education for the minor.(2) That the minor has been tried on probation while in custody and has failed to reform.(3) That the welfare of the minor requires that custody be taken from the minors parent or guardian.(b) Whenever the court specifically limits the right of the parent or guardian to make educational or developmental services decisions for the minor, the court shall at the same time appoint a responsible adult to make educational or developmental services decisions for the child until one of the following occurs:(1) The minor reaches 18 years of age, unless the child chooses not to make educational or developmental services decisions for himself or herself, themselves, or is deemed by the court to be incompetent.(2) Another responsible adult is appointed to make educational or developmental services decisions for the minor pursuant to this section.(3) The right of the parent or guardian to make educational or developmental services decisions for the minor is fully restored.(4) A successor guardian or conservator is appointed.(5) The child is placed into a planned permanent living arrangement pursuant to paragraph (5) or (6) of subdivision (b) of Section 727.3, at which time, for educational decisionmaking, the foster parent, relative caretaker, or nonrelative extended family member, as defined in Section 362.7, has the right to represent the child in educational matters pursuant to Section 56055 of the Education Code, and for decisions relating to developmental services, unless the court specifies otherwise, the foster parent, relative caregiver, or nonrelative extended family member of the planned permanent living arrangement has the right to represent the child in matters related to developmental services.(c) An individual who would have a conflict of interest in representing the child, as specified under federal regulations, may not be appointed to make educational decisions. The limitations applicable to conflicts of interest for educational rights holders shall also apply to authorized representatives for developmental services decisions pursuant to subdivision (b) of Section 4701.6. For purposes of this section, an individual who would have a conflict of interest means a person having any interests that might restrict or bias his or her their ability to make educational or developmental services decisions, including, but not limited to, those conflicts of interest prohibited by Section 1126 of the Government Code, and the receipt of compensation or attorneys fees for the provision of services pursuant to this section. A foster parent may not be deemed to have a conflict of interest solely because he or she the foster parent receives compensation for the provision of services pursuant to this section.(1) If the court limits the parents educational rights pursuant to subdivision (a), the court shall determine whether there is a responsible adult who is a relative, nonrelative extended family member, or other adult known to the child and who is available and willing to serve as the childs educational representative before appointing an educational representative or surrogate who is not known to the child.If the court cannot identify a responsible adult who is known to the child and available to make educational decisions for the child and paragraphs (1) to (5), inclusive, of subdivision (b) do not apply, and the child has either been referred to the local educational agency for special education and related services or has a valid individualized education program, the court shall refer the child to the local educational agency for appointment of a surrogate parent pursuant to Section 7579.5 of the Government Code.(2) All educational and school placement decisions shall seek to ensure that the child is in the least restrictive educational programs and has access to the academic resources, services, and extracurricular and enrichment activities that are available to all pupils. In all instances, educational and school placement decisions shall be based on the best interests of the child. If an educational representative or surrogate is appointed for the child, the representative or surrogate shall meet with the child, shall investigate the childs educational needs and whether those needs are being met, and shall, before each review hearing held under Article 10 (commencing with Section 360), provide information and recommendations concerning the childs educational needs to the childs social worker, make written recommendations to the court, or attend the hearing and participate in those portions of the hearing that concern the childs education.(3) Nothing in this section in any way removes the obligation to appoint surrogate parents for students with disabilities who are without parental representation in special education procedures as required by state and federal law, including Section 1415(b)(2) of Title 20 of the United States Code, Section 56050 of the Education Code, Section 7579.5 of the Government Code, and Rule 5.650 of the California Rules of Court.If the court appoints a developmental services decisionmaker pursuant to this section, he or she they shall have the authority to access the childs information and records pursuant to subdivision (u) of Section 4514 and subdivision (y) of Section 5328, and to act on the childs behalf for the purposes of the individual program plan process pursuant to Sections 4646, 4646.5, and 4648 and the fair hearing process pursuant to Chapter 7 (commencing with Section 4700) of Division 4.5, and as set forth in the court order.(d) (1) If the minor is removed from the physical custody of his or her the minors parent or guardian as the result of an order of wardship made pursuant to Section 602, the order shall specify that the minor may not be held in physical confinement for a period in excess of the maximum middle term of imprisonment which could be imposed upon an adult convicted of the offense or offenses which brought or continued the minor under the jurisdiction of the juvenile court.(2) As used in this section and in Section 731, maximum term of imprisonment means the longest middle of the three time periods set forth in paragraph (3) of subdivision (a) of Section 1170 of the Penal Code, but without the need to follow the provisions of subdivision (b) of Section 1170 of the Penal Code or to consider time for good behavior or participation pursuant to Sections 2930, 2931, and 2932 of the Penal Code, plus enhancements which must be proven if pled.(3) If the court elects to aggregate the period of physical confinement on multiple counts or multiple petitions, including previously sustained petitions adjudging the minor a ward within Section 602, the maximum term of imprisonment shall be the aggregate term of imprisonment specified in subdivision (a) of Section 1170.1 of the Penal Code, which includes any additional term imposed pursuant to Section 667, 667.5, 667.6, or 12022.1 of the Penal Code, and Section 11370.2 of the Health and Safety Code.(4) If the charged offense is a misdemeanor or a felony not included within the scope of Section 1170 of the Penal Code, the maximum term of imprisonment is the longest middle term of imprisonment prescribed by law.(5) Physical confinement means placement in a juvenile hall, ranch, camp, forestry camp or secure juvenile home pursuant to Section 730, or in any institution operated by the Department of Corrections and Rehabilitation, Division of Juvenile Justice.(6) This section does not limit the power of the court to retain jurisdiction over a minor and to make appropriate orders pursuant to Section 727 for the period permitted by Section 607.
324	231
325		-	(7) For ~~taxable years beginning~~ on ~~or after January~~ 1~~, 2022, the credit allowed~~ by ~~Section 17052.10 (relating to the elective tax under the Small Business Relief Act).~~
	232	+	726. (a) In all cases in which a minor is adjudged a ward or dependent child of the court, the court may limit the control to be exercised over the ward or dependent child by any parent or guardian and shall, in its order, clearly and specifically set forth all those limitations, but no ward or dependent child shall be taken from the physical custody of a parent or guardian, unless upon the hearing the court finds one of the following facts:(1) That the parent or guardian is incapable of providing or has failed or neglected to provide proper maintenance, training, and education for the minor.(2) That the minor has been tried on probation while in custody and has failed to reform.(3) That the welfare of the minor requires that custody be taken from the minors parent or guardian.(b) Whenever the court specifically limits the right of the parent or guardian to make educational or developmental services decisions for the minor, the court shall at the same time appoint a responsible adult to make educational or developmental services decisions for the child until one of the following occurs:(1) The minor reaches 18 years of age, unless the child chooses not to make educational or developmental services decisions for himself or herself, themselves, or is deemed by the court to be incompetent.(2) Another responsible adult is appointed to make educational or developmental services decisions for the minor pursuant to this section.(3) The right of the parent or guardian to make educational or developmental services decisions for the minor is fully restored.(4) A successor guardian or conservator is appointed.(5) The child is placed into a planned permanent living arrangement pursuant to paragraph (5) or (6) of subdivision (b) of Section 727.3, at which time, for educational decisionmaking, the foster parent, relative caretaker, or nonrelative extended family member, as defined in Section 362.7, has the right to represent the child in educational matters pursuant to Section 56055 of the Education Code, and for decisions relating to developmental services, unless the court specifies otherwise, the foster parent, relative caregiver, or nonrelative extended family member of the planned permanent living arrangement has the right to represent the child in matters related to developmental services.(c) An individual who would have a conflict of interest in representing the child, as specified under federal regulations, may not be appointed to make educational decisions. The limitations applicable to conflicts of interest for educational rights holders shall also apply to authorized representatives for developmental services decisions pursuant to subdivision (b) of Section 4701.6. For purposes of this section, an individual who would have a conflict of interest means a person having any interests that might restrict or bias his or her their ability to make educational or developmental services decisions, including, but not limited to, those conflicts of interest prohibited by Section 1126 of the Government Code, and the receipt of compensation or attorneys fees for the provision of services pursuant to this section. A foster parent may not be deemed to have a conflict of interest solely because he or she the foster parent receives compensation for the provision of services pursuant to this section.(1) If the court limits the parents educational rights pursuant to subdivision (a), the court shall determine whether there is a responsible adult who is a relative, nonrelative extended family member, or other adult known to the child and who is available and willing to serve as the childs educational representative before appointing an educational representative or surrogate who is not known to the child.If the court cannot identify a responsible adult who is known to the child and available to make educational decisions for the child and paragraphs (1) to (5), inclusive, of subdivision (b) do not apply, and the child has either been referred to the local educational agency for special education and related services or has a valid individualized education program, the court shall refer the child to the local educational agency for appointment of a surrogate parent pursuant to Section 7579.5 of the Government Code.(2) All educational and school placement decisions shall seek to ensure that the child is in the least restrictive educational programs and has access to the academic resources, services, and extracurricular and enrichment activities that are available to all pupils. In all instances, educational and school placement decisions shall be based on the best interests of the child. If an educational representative or surrogate is appointed for the child, the representative or surrogate shall meet with the child, shall investigate the childs educational needs and whether those needs are being met, and shall, before each review hearing held under Article 10 (commencing with Section 360), provide information and recommendations concerning the childs educational needs to the childs social worker, make written recommendations to the court, or attend the hearing and participate in those portions of the hearing that concern the childs education.(3) Nothing in this section in any way removes the obligation to appoint surrogate parents for students with disabilities who are without parental representation in special education procedures as required by state and federal law, including Section 1415(b)(2) of Title 20 of the United States Code, Section 56050 of the Education Code, Section 7579.5 of the Government Code, and Rule 5.650 of the California Rules of Court.If the court appoints a developmental services decisionmaker pursuant to this section, he or she they shall have the authority to access the childs information and records pursuant to subdivision (u) of Section 4514 and subdivision (y) of Section 5328, and to act on the childs behalf for the purposes of the individual program plan process pursuant to Sections 4646, 4646.5, and 4648 and the fair hearing process pursuant to Chapter 7 (commencing with Section 4700) of Division 4.5, and as set forth in the court order.(d) (1) If the minor is removed from the physical custody of his or her the minors parent or guardian as the result of an order of wardship made pursuant to Section 602, the order shall specify that the minor may not be held in physical confinement for a period in excess of the maximum middle term of imprisonment which could be imposed upon an adult convicted of the offense or offenses which brought or continued the minor under the jurisdiction of the juvenile court.(2) As used in this section and in Section 731, maximum term of imprisonment means the longest middle of the three time periods set forth in paragraph (3) of subdivision (a) of Section 1170 of the Penal Code, but without the need to follow the provisions of subdivision (b) of Section 1170 of the Penal Code or to consider time for good behavior or participation pursuant to Sections 2930, 2931, and 2932 of the Penal Code, plus enhancements which must be proven if pled.(3) If the court elects to aggregate the period of physical confinement on multiple counts or multiple petitions, including previously sustained petitions adjudging the minor a ward within Section 602, the maximum term of imprisonment shall be the aggregate term of imprisonment specified in subdivision (a) of Section 1170.1 of the Penal Code, which includes any additional term imposed pursuant to Section 667, 667.5, 667.6, or 12022.1 of the Penal Code, and Section 11370.2 of the Health and Safety Code.(4) If the charged offense is a misdemeanor or a felony not included within the scope of Section 1170 of the Penal Code, the maximum term of imprisonment is the longest middle term of imprisonment prescribed by law.(5) Physical confinement means placement in a juvenile hall, ranch, camp, forestry camp or secure juvenile home pursuant to Section 730, or in any institution operated by the Department of Corrections and Rehabilitation, Division of Juvenile Justice.(6) This section does not limit the power of the court to retain jurisdiction over a minor and to make appropriate orders pursuant to Section 727 for the period permitted by Section 607.
326	233
327		-	(7)
	234	+	726. (a) In all cases in which a minor is adjudged a ward or dependent child of the court, the court may limit the control to be exercised over the ward or dependent child by any parent or guardian and shall, in its order, clearly and specifically set forth all those limitations, but no ward or dependent child shall be taken from the physical custody of a parent or guardian, unless upon the hearing the court finds one of the following facts:(1) That the parent or guardian is incapable of providing or has failed or neglected to provide proper maintenance, training, and education for the minor.(2) That the minor has been tried on probation while in custody and has failed to reform.(3) That the welfare of the minor requires that custody be taken from the minors parent or guardian.(b) Whenever the court specifically limits the right of the parent or guardian to make educational or developmental services decisions for the minor, the court shall at the same time appoint a responsible adult to make educational or developmental services decisions for the child until one of the following occurs:(1) The minor reaches 18 years of age, unless the child chooses not to make educational or developmental services decisions for himself or herself, themselves, or is deemed by the court to be incompetent.(2) Another responsible adult is appointed to make educational or developmental services decisions for the minor pursuant to this section.(3) The right of the parent or guardian to make educational or developmental services decisions for the minor is fully restored.(4) A successor guardian or conservator is appointed.(5) The child is placed into a planned permanent living arrangement pursuant to paragraph (5) or (6) of subdivision (b) of Section 727.3, at which time, for educational decisionmaking, the foster parent, relative caretaker, or nonrelative extended family member, as defined in Section 362.7, has the right to represent the child in educational matters pursuant to Section 56055 of the Education Code, and for decisions relating to developmental services, unless the court specifies otherwise, the foster parent, relative caregiver, or nonrelative extended family member of the planned permanent living arrangement has the right to represent the child in matters related to developmental services.(c) An individual who would have a conflict of interest in representing the child, as specified under federal regulations, may not be appointed to make educational decisions. The limitations applicable to conflicts of interest for educational rights holders shall also apply to authorized representatives for developmental services decisions pursuant to subdivision (b) of Section 4701.6. For purposes of this section, an individual who would have a conflict of interest means a person having any interests that might restrict or bias his or her their ability to make educational or developmental services decisions, including, but not limited to, those conflicts of interest prohibited by Section 1126 of the Government Code, and the receipt of compensation or attorneys fees for the provision of services pursuant to this section. A foster parent may not be deemed to have a conflict of interest solely because he or she the foster parent receives compensation for the provision of services pursuant to this section.(1) If the court limits the parents educational rights pursuant to subdivision (a), the court shall determine whether there is a responsible adult who is a relative, nonrelative extended family member, or other adult known to the child and who is available and willing to serve as the childs educational representative before appointing an educational representative or surrogate who is not known to the child.If the court cannot identify a responsible adult who is known to the child and available to make educational decisions for the child and paragraphs (1) to (5), inclusive, of subdivision (b) do not apply, and the child has either been referred to the local educational agency for special education and related services or has a valid individualized education program, the court shall refer the child to the local educational agency for appointment of a surrogate parent pursuant to Section 7579.5 of the Government Code.(2) All educational and school placement decisions shall seek to ensure that the child is in the least restrictive educational programs and has access to the academic resources, services, and extracurricular and enrichment activities that are available to all pupils. In all instances, educational and school placement decisions shall be based on the best interests of the child. If an educational representative or surrogate is appointed for the child, the representative or surrogate shall meet with the child, shall investigate the childs educational needs and whether those needs are being met, and shall, before each review hearing held under Article 10 (commencing with Section 360), provide information and recommendations concerning the childs educational needs to the childs social worker, make written recommendations to the court, or attend the hearing and participate in those portions of the hearing that concern the childs education.(3) Nothing in this section in any way removes the obligation to appoint surrogate parents for students with disabilities who are without parental representation in special education procedures as required by state and federal law, including Section 1415(b)(2) of Title 20 of the United States Code, Section 56050 of the Education Code, Section 7579.5 of the Government Code, and Rule 5.650 of the California Rules of Court.If the court appoints a developmental services decisionmaker pursuant to this section, he or she they shall have the authority to access the childs information and records pursuant to subdivision (u) of Section 4514 and subdivision (y) of Section 5328, and to act on the childs behalf for the purposes of the individual program plan process pursuant to Sections 4646, 4646.5, and 4648 and the fair hearing process pursuant to Chapter 7 (commencing with Section 4700) of Division 4.5, and as set forth in the court order.(d) (1) If the minor is removed from the physical custody of his or her the minors parent or guardian as the result of an order of wardship made pursuant to Section 602, the order shall specify that the minor may not be held in physical confinement for a period in excess of the maximum middle term of imprisonment which could be imposed upon an adult convicted of the offense or offenses which brought or continued the minor under the jurisdiction of the juvenile court.(2) As used in this section and in Section 731, maximum term of imprisonment means the longest middle of the three time periods set forth in paragraph (3) of subdivision (a) of Section 1170 of the Penal Code, but without the need to follow the provisions of subdivision (b) of Section 1170 of the Penal Code or to consider time for good behavior or participation pursuant to Sections 2930, 2931, and 2932 of the Penal Code, plus enhancements which must be proven if pled.(3) If the court elects to aggregate the period of physical confinement on multiple counts or multiple petitions, including previously sustained petitions adjudging the minor a ward within Section 602, the maximum term of imprisonment shall be the aggregate term of imprisonment specified in subdivision (a) of Section 1170.1 of the Penal Code, which includes any additional term imposed pursuant to Section 667, 667.5, 667.6, or 12022.1 of the Penal Code, and Section 11370.2 of the Health and Safety Code.(4) If the charged offense is a misdemeanor or a felony not included within the scope of Section 1170 of the Penal Code, the maximum term of imprisonment is the longest middle term of imprisonment prescribed by law.(5) Physical confinement means placement in a juvenile hall, ranch, camp, forestry camp or secure juvenile home pursuant to Section 730, or in any institution operated by the Department of Corrections and Rehabilitation, Division of Juvenile Justice.(6) This section does not limit the power of the court to retain jurisdiction over a minor and to make appropriate orders pursuant to Section 727 for the period permitted by Section 607.
328	235
329	236
330	237
331		-	(8) ~~Credits that contain refundable provisions~~ but ~~do not contain carryover provisions.~~
	238	+	726. (a) In all cases in which a minor is adjudged a ward or dependent child of the court, the court may limit the control to be exercised over the ward or dependent child by any parent or guardian and shall, in its order, clearly and specifically set forth all those limitations, but no ward or dependent child shall be taken from the physical custody of a parent or guardian, unless upon the hearing the court finds one of the following facts:
332	239
333		-	~~The order within each paragraph shall be determined by~~ the ~~Franchise Tax Board~~.
	240	+	(1) That the parent or guardian is incapable of providing or has failed or neglected to provide proper maintenance, training, and education for the minor.
334	241
335		-	(b) ~~Notwithstanding~~ the ~~provisions of Sections 17061 (relating~~ to refunds pursuant to the Unemployment Insurance Code) and 19002 (relating to tax withholding), the credits provided in those sections shall be allowed in the order provided in paragraph (6) of subdivision (a).
	242	+	(2) That the minor has been tried on probation while in custody and has failed to reform.
336	243
337		-	(c) ~~(1) Notwithstanding any other provision~~ of ~~this part,~~ ~~no tax credit shall reduce~~ the ~~tax imposed under Section 17041~~ or ~~17048 plus the tax imposed under Section 17504 (relating to the separate tax on lump-sum distributions) below the tentative minimum tax, as defined by Section 17062, except the following credits:~~
	244	+	(3) That the welfare of the minor requires that custody be taken from the minors parent or guardian.
338	245
339		-	(A) The ~~credit allowed by former Section 17052.2 (relating~~ to ~~teacher retention tax credit). credit~~, ~~repealed on August 24,~~ ~~2007).~~
	246	+	(b) Whenever the court specifically limits the right of the parent or guardian to make educational or developmental services decisions for the minor, the court shall at the same time appoint a responsible adult to make educational or developmental services decisions for the child until one of the following occurs:
340	247
341		-	(B) The ~~credit allowed~~ by ~~former Section 17052.4 (relating~~ to ~~solar energy)~~. ~~energy, repealed on December 1, 1989).~~
	248	+	(1) The minor reaches 18 years of age, unless the child chooses not to make educational or developmental services decisions for himself or herself, themselves, or is deemed by the court to be incompetent.
342	249
343		-	(C) The ~~credit allowed by former Section 17052.5 (relating~~ to ~~solar energy, repealed on January 1, 1987)~~.
	250	+	(2) Another responsible adult is appointed to make educational or developmental services decisions for the minor pursuant to this section.
344	251
345		-	(D) The ~~credit allowed by former Section 17052.5 (relating~~ to ~~solar energy,~~ ~~repealed on December 1,~~ ~~1994)~~.
	252	+	(3) The right of the parent or guardian to make educational or developmental services decisions for the minor is fully restored.
346	253
347		-	(E) ~~The credit allowed by Section 17052~~.~~12 (relating to research expenses).~~
	254	+	(4) A successor guardian or conservator is appointed.
348	255
349		-	(F) The ~~credit allowed by former~~ Section ~~17052~~.~~13 (~~relating to ~~sales and use tax credit). credit~~, ~~repealed on January 1~~, ~~1997)~~.
	256	+	(5) The child is placed into a planned permanent living arrangement pursuant to paragraph (5) or (6) of subdivision (b) of Section 727.3, at which time, for educational decisionmaking, the foster parent, relative caretaker, or nonrelative extended family member, as defined in Section 362.7, has the right to represent the child in educational matters pursuant to Section 56055 of the Education Code, and for decisions relating to developmental services, unless the court specifies otherwise, the foster parent, relative caregiver, or nonrelative extended family member of the planned permanent living arrangement has the right to represent the child in matters related to developmental services.
350	257
351		-	(G) The ~~credit allowed~~ by ~~former~~ Section ~~17052.15 (relating~~ to ~~Los Angeles Revitalization Zone sales tax credit)~~. ~~credit, repealed on December 1,~~ ~~1998)~~.
	258	+	(c) An individual who would have a conflict of interest in representing the child, as specified under federal regulations, may not be appointed to make educational decisions. The limitations applicable to conflicts of interest for educational rights holders shall also apply to authorized representatives for developmental services decisions pursuant to subdivision (b) of Section 4701.6. For purposes of this section, an individual who would have a conflict of interest means a person having any interests that might restrict or bias his or her their ability to make educational or developmental services decisions, including, but not limited to, those conflicts of interest prohibited by Section 1126 of the Government Code, and the receipt of compensation or attorneys fees for the provision of services pursuant to this section. A foster parent may not be deemed to have a conflict of interest solely because he or she the foster parent receives compensation for the provision of services pursuant to this section.
352	259
353		-	(H) The ~~credit allowed by Section 17052.25~~ (~~relating~~ to the ~~adoption costs credit)~~.
	260	+	(1) If the court limits the parents educational rights pursuant to subdivision (a), the court shall determine whether there is a responsible adult who is a relative, nonrelative extended family member, or other adult known to the child and who is available and willing to serve as the childs educational representative before appointing an educational representative or surrogate who is not known to the child.
354	261
355		-	~~(I)~~ The ~~credit allowed by Section 17053.5 (relating~~ to the ~~renters credit~~).
	262	+	If the court cannot identify a responsible adult who is known to the child and available to make educational decisions for the child and paragraphs (1) to (5), inclusive, of subdivision (b) do not apply, and the child has either been referred to the local educational agency for special education and related services or has a valid individualized education program, the court shall refer the child to the local educational agency for appointment of a surrogate parent pursuant to Section 7579.5 of the Government Code.
356	263
357		-	(J) The ~~credit allowed by former~~ Section ~~17053.8 (relating~~ to ~~enterprise zone hiring credit). credit~~, ~~repealed on October 3~~, ~~1997)~~.
	264	+	(2) All educational and school placement decisions shall seek to ensure that the child is in the least restrictive educational programs and has access to the academic resources, services, and extracurricular and enrichment activities that are available to all pupils. In all instances, educational and school placement decisions shall be based on the best interests of the child. If an educational representative or surrogate is appointed for the child, the representative or surrogate shall meet with the child, shall investigate the childs educational needs and whether those needs are being met, and shall, before each review hearing held under Article 10 (commencing with Section 360), provide information and recommendations concerning the childs educational needs to the childs social worker, make written recommendations to the court, or attend the hearing and participate in those portions of the hearing that concern the childs education.
358	265
359		-	(K) The ~~credit allowed~~ by ~~former~~ Section ~~17053.10 (relating~~ ~~to Los Angeles Revitalization Zone hiring credit). credit~~, ~~repealed on December 1~~, ~~1998)~~.
	266	+	(3) Nothing in this section in any way removes the obligation to appoint surrogate parents for students with disabilities who are without parental representation in special education procedures as required by state and federal law, including Section 1415(b)(2) of Title 20 of the United States Code, Section 56050 of the Education Code, Section 7579.5 of the Government Code, and Rule 5.650 of the California Rules of Court.
360	267
361		-	~~(L)~~ The ~~credit allowed by former~~ Section ~~17053.11~~ (~~relating~~ to ~~program area hiring credit). credit, repealed~~ on ~~January 1~~, ~~1997~~).
	268	+	If the court appoints a developmental services decisionmaker pursuant to this section, he or she they shall have the authority to access the childs information and records pursuant to subdivision (u) of Section 4514 and subdivision (y) of Section 5328, and to act on the childs behalf for the purposes of the individual program plan process pursuant to Sections 4646, 4646.5, and 4648 and the fair hearing process pursuant to Chapter 7 (commencing with Section 4700) of Division 4.5, and as set forth in the court order.
362	269
363		-	(M) ~~For each taxable year beginning on~~ or ~~after January 1,~~ ~~1994~~, the ~~credit allowed by former Section 17053~~.~~17 (relating to Los Angeles Revitalization Zone hiring credit). credit, repealed on December 1, 1998).~~
	270	+	(d) (1) If the minor is removed from the physical custody of his or her the minors parent or guardian as the result of an order of wardship made pursuant to Section 602, the order shall specify that the minor may not be held in physical confinement for a period in excess of the maximum middle term of imprisonment which could be imposed upon an adult convicted of the offense or offenses which brought or continued the minor under the jurisdiction of the juvenile court.
364	271
365		-	(N) The ~~credit allowed by former~~ Section ~~17053.33 (relating~~ to ~~targeted tax area sales~~ or ~~use tax credit). credit~~, ~~repealed on December 1~~, ~~2015)~~.
	272	+	(2) As used in this section and in Section 731, maximum term of imprisonment means the longest middle of the three time periods set forth in paragraph (3) of subdivision (a) of Section 1170 of the Penal Code, but without the need to follow the provisions of subdivision (b) of Section 1170 of the Penal Code or to consider time for good behavior or participation pursuant to Sections 2930, 2931, and 2932 of the Penal Code, plus enhancements which must be proven if pled.
366	273
367		-	(O) The ~~credit allowed by former~~ Section ~~17053.34~~ (~~relating~~ to ~~targeted tax area hiring credit). credit~~, ~~repealed on December 1~~, ~~2019)~~.
	274	+	(3) If the court elects to aggregate the period of physical confinement on multiple counts or multiple petitions, including previously sustained petitions adjudging the minor a ward within Section 602, the maximum term of imprisonment shall be the aggregate term of imprisonment specified in subdivision (a) of Section 1170.1 of the Penal Code, which includes any additional term imposed pursuant to Section 667, 667.5, 667.6, or 12022.1 of the Penal Code, and Section 11370.2 of the Health and Safety Code.
368	275
369		-	(P) The ~~credit allowed~~ by ~~former Section 17053~~.~~49 (relating to qualified property). property, repealed on January 1, 2004).~~
	276	+	(4) If the charged offense is a misdemeanor or a felony not included within the scope of Section 1170 of the Penal Code, the maximum term of imprisonment is the longest middle term of imprisonment prescribed by law.
370	277
371		-	(Q) The ~~credit allowed by former Section 17053.70 (relating to enterprise zone sales or use tax credit). credit~~, ~~repealed on December 1, 2015)~~.
	278	+	(5) Physical confinement means placement in a juvenile hall, ranch, camp, forestry camp or secure juvenile home pursuant to Section 730, or in any institution operated by the Department of Corrections and Rehabilitation, Division of Juvenile Justice.
372	279
373		-	(R) The ~~credit allowed~~ by ~~former~~ Section ~~17053~~.~~74 (relating to enterprise zone hiring credit). credit, repealed on December 1, 2019).~~
	280	+	(6) This section does not limit the power of the court to retain jurisdiction over a minor and to make appropriate orders pursuant to Section 727 for the period permitted by Section 607.
374	281
375		-	~~(S)~~ The ~~credit allowed~~ by Section ~~17054 (relating~~ to ~~credits~~ for ~~personal exemption~~).
	282	+	SEC. 8. Section 731 is added to the Welfare and Institutions Code, to read:731. (a) If a minor is adjudged a ward of the court on the grounds that the minor is a person described by Section 602, the court may commit the ward to the Department of Corrections and Rehabilitation, Division of Juvenile Justice if the ward has committed an offense described in subdivision (b) of Section 707 or subdivision (c) of Section 290.008 of the Penal Code, and has been the subject of a motion filed to transfer the ward to the jurisdiction of the criminal court as provided in subdivision (c) of Section 736.5 and is not otherwise ineligible for commitment to the division under Section 733.(b) A ward committed to the Division of Juvenile Justice shall not be confined in excess of the term of confinement set by the committing court. The court shall set a maximum term based upon the facts and circumstances of the matter or matters that brought or continued the ward under the jurisdiction of the court and as deemed appropriate to achieve rehabilitation. The court shall not commit a ward to the Division of Juvenile Justice for a period that exceeds the middle term of imprisonment that could be imposed upon an adult convicted of the same offense. This subdivision does not limit the power of the Board of Juvenile Hearings to discharge a ward committed to the Division of Juvenile Justice pursuant to Sections 1719 and 1769. Upon discharge, the committing court may retain jurisdiction of the ward pursuant to Section 607.1 and establish the conditions of supervision pursuant to subdivision (b) of Section 1766.(c) This section shall become operative on July 1, 2021, and shall remain in effect until the final closure of the Division of Juvenile Justice.
376	283
377		-	~~(T) The credit allowed by~~ Section ~~17054.5 (relating~~ to the ~~credits for a qualified joint custody head of household~~ and ~~a qualified taxpayer with a dependent parent).~~
	284	+	SEC. 8. Section 731 is added to the Welfare and Institutions Code, to read:
378	285
379		-	~~(U) The credit allowed by Section 17054~~.~~7 (relating to the credit for a senior head of household).~~
	286	+	### SEC. 8.
380	287
381		-	(V) The ~~credit allowed~~ by ~~former~~ Section ~~17057~~ (~~relating~~ to ~~clinical testing expenses~~). ~~expenses~~, ~~repealed~~ on ~~December~~ 1, ~~1993)~~.
	288	+	731. (a) If a minor is adjudged a ward of the court on the grounds that the minor is a person described by Section 602, the court may commit the ward to the Department of Corrections and Rehabilitation, Division of Juvenile Justice if the ward has committed an offense described in subdivision (b) of Section 707 or subdivision (c) of Section 290.008 of the Penal Code, and has been the subject of a motion filed to transfer the ward to the jurisdiction of the criminal court as provided in subdivision (c) of Section 736.5 and is not otherwise ineligible for commitment to the division under Section 733.(b) A ward committed to the Division of Juvenile Justice shall not be confined in excess of the term of confinement set by the committing court. The court shall set a maximum term based upon the facts and circumstances of the matter or matters that brought or continued the ward under the jurisdiction of the court and as deemed appropriate to achieve rehabilitation. The court shall not commit a ward to the Division of Juvenile Justice for a period that exceeds the middle term of imprisonment that could be imposed upon an adult convicted of the same offense. This subdivision does not limit the power of the Board of Juvenile Hearings to discharge a ward committed to the Division of Juvenile Justice pursuant to Sections 1719 and 1769. Upon discharge, the committing court may retain jurisdiction of the ward pursuant to Section 607.1 and establish the conditions of supervision pursuant to subdivision (b) of Section 1766.(c) This section shall become operative on July 1, 2021, and shall remain in effect until the final closure of the Division of Juvenile Justice.
382	289
383		-	(W) The ~~credit allowed~~ by Section ~~17058 (relating~~ to ~~low-income housing~~).
	290	+	731. (a) If a minor is adjudged a ward of the court on the grounds that the minor is a person described by Section 602, the court may commit the ward to the Department of Corrections and Rehabilitation, Division of Juvenile Justice if the ward has committed an offense described in subdivision (b) of Section 707 or subdivision (c) of Section 290.008 of the Penal Code, and has been the subject of a motion filed to transfer the ward to the jurisdiction of the criminal court as provided in subdivision (c) of Section 736.5 and is not otherwise ineligible for commitment to the division under Section 733.(b) A ward committed to the Division of Juvenile Justice shall not be confined in excess of the term of confinement set by the committing court. The court shall set a maximum term based upon the facts and circumstances of the matter or matters that brought or continued the ward under the jurisdiction of the court and as deemed appropriate to achieve rehabilitation. The court shall not commit a ward to the Division of Juvenile Justice for a period that exceeds the middle term of imprisonment that could be imposed upon an adult convicted of the same offense. This subdivision does not limit the power of the Board of Juvenile Hearings to discharge a ward committed to the Division of Juvenile Justice pursuant to Sections 1719 and 1769. Upon discharge, the committing court may retain jurisdiction of the ward pursuant to Section 607.1 and establish the conditions of supervision pursuant to subdivision (b) of Section 1766.(c) This section shall become operative on July 1, 2021, and shall remain in effect until the final closure of the Division of Juvenile Justice.
384	291
385		-	(X) For taxable years beginning on or after January 1, 2014, the credit allowed by Section 17059.2 (relating to GO-Biz California Competes Credit).
386		-
387		-	(Y) The credit allowed by Section 17061 (relating to refunds pursuant to the Unemployment Insurance Code).
388		-
389		-	(Z) Credits for taxes paid to other states allowed by Chapter 12 (commencing with Section 18001).
390		-
391		-	(AA) The credit allowed by Section 19002 (relating to tax withholding).
392		-
393		-	(AB) For taxable years beginning on or after January 1, 2014, the credit allowed by former Section 17053.86 (relating to the College Access Tax Credit Fund). Fund, repealed on December 1, 2017).
394		-
395		-	(AC) For taxable years beginning on or after January 1, 2017, the credit allowed by Section 17053.87 (relating to the College Access Tax Credit Fund).
396		-
397		-	(AD) For taxable years beginning on or after January 1, 2021, the credit allowed by Section 17052.10 (relating to the elective tax under the Small Business Relief Act).
398		-
399		-	(2) Any credit that is partially or totally denied under paragraph (1) shall be allowed to be carried over and applied to the net tax in succeeding taxable years, if the provisions relating to that credit include a provision to allow a carryover when that credit exceeds the net tax.
400		-
401		-	(d) Unless otherwise provided, any remaining carryover of a credit allowed by a section that has been repealed or made inoperative shall continue to be allowed to be carried over under the provisions of that section as it read immediately before being repealed or becoming inoperative.
402		-
403		-	(e) (1) Unless otherwise provided, if two or more taxpayers (other than spouses) share in costs that would be eligible for a tax credit allowed under this part, each taxpayer shall be eligible to receive the tax credit in proportion to his or her the taxpayers respective share of the costs paid or incurred.
404		-
405		-	(2) In the case of a partnership, the credit shall be allocated among the partners pursuant to a written partnership agreement in accordance with Section 704 of the Internal Revenue Code, relating to partners distributive share.
406		-
407		-	(3) In the case of spouses who file separate returns, the credit may be taken by either or equally divided between them.
408		-
409		-	(f) Unless otherwise provided, in the case of a partnership, any credit allowed by this part shall be computed at the partnership level, and any limitation on the expenses qualifying for the credit or limitation upon the amount of the credit shall be applied to the partnership and to each partner.
410		-
411		-	(g) (1) With respect to any taxpayer that directly or indirectly owns an interest in a business entity that is disregarded for tax purposes pursuant to Section 23038 and any regulations thereunder, the amount of any credit or credit carryforward allowable for any taxable year attributable to the disregarded business entity shall be limited in accordance with paragraphs (2) and (3).
412		-
413		-	(2) The amount of any credit otherwise allowed under this part, including any credit carryover from prior years, that may be applied to reduce the taxpayers net tax, as defined in subdivision (a), for the taxable year shall be limited to an amount equal to the excess of the taxpayers regular tax (as defined in Section 17062), determined by including income attributable to the disregarded business entity that generated the credit or credit carryover, over the taxpayers regular tax (as defined in Section 17062), determined by excluding the income attributable to that disregarded business entity. A credit shall not be allowed if the taxpayers regular tax (as defined in Section 17062), determined by including the income attributable to the disregarded business entity, is less than the taxpayers regular tax (as defined in Section 17062), determined by excluding the income attributable to the disregarded business entity.
414		-
415		-	(3) If the amount of a credit allowed pursuant to the section establishing the credit exceeds the amount allowable under this subdivision in any taxable year, the excess amount may be carried over to subsequent taxable years pursuant to subdivisions (c) and (d).
416		-
417		-	(h) (1) Unless otherwise specifically provided, in the case of a taxpayer that is a partner or shareholder of an eligible pass-thru entity described in paragraph (2), any credit passed through to the taxpayer in the taxpayers first taxable year beginning on or after the date the credit is no longer operative may be claimed by the taxpayer in that taxable year, notwithstanding the repeal of the statute authorizing the credit before the close of that taxable year.
418		-
419		-	(2) For purposes of this subdivision, eligible pass-thru entity means any partnership or S corporation that files its return on a fiscal year basis pursuant to Section 18566, and that is entitled to a credit pursuant to this part for the taxable year that begins during the last year the credit is operative.
420		-
421		-	(3) This subdivision applies to credits that become inoperative on or after the operative date of the act adding this subdivision. January 1, 2002.
422		-
423		-	(i) The amendments made to this section by the act adding this subdivision shall apply as follows:
424		-
425		-	(1) The amendments to subdivisions (a), (e), and (h) shall be operative for taxable years beginning on or after January 1, 2022.
426		-
427		-	(2) The amendments to subdivision (c) shall be operative for taxable years beginning on or after January 1, 2021.
428		-
429		-	SEC. 7. Section 17039.3 of the Revenue and Taxation Code is amended to read:17039.3. (a) Notwithstanding any provision of this part or Part 10.2 (commencing with Section 18401) to the contrary, for taxpayers not required to be included in a combined report under Section 25101 or 25110, or taxpayers not authorized to be included in a combined report under Section 25101.15, for each taxable year beginning on or after January 1, 2020, and before January 1, 2023, 2022, the total of all business credits otherwise allowable under any provision of Chapter 2 (commencing with Section 17041), including the carryover of any business credit under a former provision of that chapter, for the taxable year shall not reduce the net tax, as defined in Section 17039, by more than five million dollars ($5,000,000).(b) Notwithstanding any provision of this part or Part 10.2 (commencing with Section 18401) to the contrary, for taxpayers required to be included in a combined report under Section 25101 or 25110, or taxpayers authorized to be included in a combined report under Section 25101.15, for each taxable year beginning on or after January 1, 2020, and before January 1, 2023, 2022, the total of all business credits otherwise allowable under any provision of Chapter 2 (commencing with Section 17041), including the carryover of any business credit under a former provision of that chapter, by all members of the combined report shall not reduce the aggregate amount of tax, as defined in Section 23036, of all members of the combined report by more than five million dollars ($5,000,000).(c) For purposes of this section, business credit means a credit allowable under any provision of Chapter 2 (commencing with Section 17041) other than the following credits:(1) The credit allowed by Section 17052 (relating to credit for earned income).(2) The credit allowed by Section 17052.1 (relating to credit for young child).(3) The credit allowed by Section 17052.6 (relating to credit for household and dependent care).(4) The credit allowed by Section 17052.25 (relating to credit for adoption costs).(5) The credit allowed by Section 17053.5 (relating to renters tax credit).(6) The credit allowed by Section 17054 (relating to credit for personal exemption).(7) The credit allowed by Section 17054.5 (relating to credit for qualified joint custody head of household and a qualified taxpayer with a dependent parent).(8) The credit allowed by Section 17054.7 (relating to credit for qualified senior head of household).(9) The credit allowed by Section 17058 (relating to credit for low-income housing).(10) The credit allowed by Section 17061 (relating to refunds pursuant to the Unemployment Insurance Code).(d) Any amounts included in an election pursuant to Section 6902.5, relating to an irrevocable election to apply credit amounts under Section 17053.85, 17053.95, 17053.98, 23685, 23695, or 23698 against qualified sales and use tax, as defined in Section 6902.5, are not included in the five-million-dollar ($5,000,000) limitation set forth in subdivision (a) or (b).(e) The amount of any credit otherwise allowable for the taxable year under Section 17039 that is not allowed due to application of this section shall remain a credit carryover amount under this part.(f) The carryover period for any credit that is not allowed due to the application of this section shall be increased by the number of taxable years the credit or any portion thereof was not allowed.(g) Notwithstanding anything to the contrary in this part or Part 10.2 (commencing with Section 18401), the credits listed in subdivision (c) shall be applied after any business credits, as limited by subdivision (a) or (b), are applied.(h) Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code does not apply to any standard, criterion, procedure, determination, rule, notice, or guideline established or issued by the Franchise Tax Board pursuant to this section.(i) The amendments made to this section by the act adding this subdivision shall be operative for taxable years beginning on or after January 1, 2022.
430		-
431		-	SEC. 7. Section 17039.3 of the Revenue and Taxation Code is amended to read:
432		-
433		-	### SEC. 7.
434		-
435		-	17039.3. (a) Notwithstanding any provision of this part or Part 10.2 (commencing with Section 18401) to the contrary, for taxpayers not required to be included in a combined report under Section 25101 or 25110, or taxpayers not authorized to be included in a combined report under Section 25101.15, for each taxable year beginning on or after January 1, 2020, and before January 1, 2023, 2022, the total of all business credits otherwise allowable under any provision of Chapter 2 (commencing with Section 17041), including the carryover of any business credit under a former provision of that chapter, for the taxable year shall not reduce the net tax, as defined in Section 17039, by more than five million dollars ($5,000,000).(b) Notwithstanding any provision of this part or Part 10.2 (commencing with Section 18401) to the contrary, for taxpayers required to be included in a combined report under Section 25101 or 25110, or taxpayers authorized to be included in a combined report under Section 25101.15, for each taxable year beginning on or after January 1, 2020, and before January 1, 2023, 2022, the total of all business credits otherwise allowable under any provision of Chapter 2 (commencing with Section 17041), including the carryover of any business credit under a former provision of that chapter, by all members of the combined report shall not reduce the aggregate amount of tax, as defined in Section 23036, of all members of the combined report by more than five million dollars ($5,000,000).(c) For purposes of this section, business credit means a credit allowable under any provision of Chapter 2 (commencing with Section 17041) other than the following credits:(1) The credit allowed by Section 17052 (relating to credit for earned income).(2) The credit allowed by Section 17052.1 (relating to credit for young child).(3) The credit allowed by Section 17052.6 (relating to credit for household and dependent care).(4) The credit allowed by Section 17052.25 (relating to credit for adoption costs).(5) The credit allowed by Section 17053.5 (relating to renters tax credit).(6) The credit allowed by Section 17054 (relating to credit for personal exemption).(7) The credit allowed by Section 17054.5 (relating to credit for qualified joint custody head of household and a qualified taxpayer with a dependent parent).(8) The credit allowed by Section 17054.7 (relating to credit for qualified senior head of household).(9) The credit allowed by Section 17058 (relating to credit for low-income housing).(10) The credit allowed by Section 17061 (relating to refunds pursuant to the Unemployment Insurance Code).(d) Any amounts included in an election pursuant to Section 6902.5, relating to an irrevocable election to apply credit amounts under Section 17053.85, 17053.95, 17053.98, 23685, 23695, or 23698 against qualified sales and use tax, as defined in Section 6902.5, are not included in the five-million-dollar ($5,000,000) limitation set forth in subdivision (a) or (b).(e) The amount of any credit otherwise allowable for the taxable year under Section 17039 that is not allowed due to application of this section shall remain a credit carryover amount under this part.(f) The carryover period for any credit that is not allowed due to the application of this section shall be increased by the number of taxable years the credit or any portion thereof was not allowed.(g) Notwithstanding anything to the contrary in this part or Part 10.2 (commencing with Section 18401), the credits listed in subdivision (c) shall be applied after any business credits, as limited by subdivision (a) or (b), are applied.(h) Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code does not apply to any standard, criterion, procedure, determination, rule, notice, or guideline established or issued by the Franchise Tax Board pursuant to this section.(i) The amendments made to this section by the act adding this subdivision shall be operative for taxable years beginning on or after January 1, 2022.
436		-
437		-	17039.3. (a) Notwithstanding any provision of this part or Part 10.2 (commencing with Section 18401) to the contrary, for taxpayers not required to be included in a combined report under Section 25101 or 25110, or taxpayers not authorized to be included in a combined report under Section 25101.15, for each taxable year beginning on or after January 1, 2020, and before January 1, 2023, 2022, the total of all business credits otherwise allowable under any provision of Chapter 2 (commencing with Section 17041), including the carryover of any business credit under a former provision of that chapter, for the taxable year shall not reduce the net tax, as defined in Section 17039, by more than five million dollars ($5,000,000).(b) Notwithstanding any provision of this part or Part 10.2 (commencing with Section 18401) to the contrary, for taxpayers required to be included in a combined report under Section 25101 or 25110, or taxpayers authorized to be included in a combined report under Section 25101.15, for each taxable year beginning on or after January 1, 2020, and before January 1, 2023, 2022, the total of all business credits otherwise allowable under any provision of Chapter 2 (commencing with Section 17041), including the carryover of any business credit under a former provision of that chapter, by all members of the combined report shall not reduce the aggregate amount of tax, as defined in Section 23036, of all members of the combined report by more than five million dollars ($5,000,000).(c) For purposes of this section, business credit means a credit allowable under any provision of Chapter 2 (commencing with Section 17041) other than the following credits:(1) The credit allowed by Section 17052 (relating to credit for earned income).(2) The credit allowed by Section 17052.1 (relating to credit for young child).(3) The credit allowed by Section 17052.6 (relating to credit for household and dependent care).(4) The credit allowed by Section 17052.25 (relating to credit for adoption costs).(5) The credit allowed by Section 17053.5 (relating to renters tax credit).(6) The credit allowed by Section 17054 (relating to credit for personal exemption).(7) The credit allowed by Section 17054.5 (relating to credit for qualified joint custody head of household and a qualified taxpayer with a dependent parent).(8) The credit allowed by Section 17054.7 (relating to credit for qualified senior head of household).(9) The credit allowed by Section 17058 (relating to credit for low-income housing).(10) The credit allowed by Section 17061 (relating to refunds pursuant to the Unemployment Insurance Code).(d) Any amounts included in an election pursuant to Section 6902.5, relating to an irrevocable election to apply credit amounts under Section 17053.85, 17053.95, 17053.98, 23685, 23695, or 23698 against qualified sales and use tax, as defined in Section 6902.5, are not included in the five-million-dollar ($5,000,000) limitation set forth in subdivision (a) or (b).(e) The amount of any credit otherwise allowable for the taxable year under Section 17039 that is not allowed due to application of this section shall remain a credit carryover amount under this part.(f) The carryover period for any credit that is not allowed due to the application of this section shall be increased by the number of taxable years the credit or any portion thereof was not allowed.(g) Notwithstanding anything to the contrary in this part or Part 10.2 (commencing with Section 18401), the credits listed in subdivision (c) shall be applied after any business credits, as limited by subdivision (a) or (b), are applied.(h) Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code does not apply to any standard, criterion, procedure, determination, rule, notice, or guideline established or issued by the Franchise Tax Board pursuant to this section.(i) The amendments made to this section by the act adding this subdivision shall be operative for taxable years beginning on or after January 1, 2022.
438		-
439		-	17039.3. (a) Notwithstanding any provision of this part or Part 10.2 (commencing with Section 18401) to the contrary, for taxpayers not required to be included in a combined report under Section 25101 or 25110, or taxpayers not authorized to be included in a combined report under Section 25101.15, for each taxable year beginning on or after January 1, 2020, and before January 1, 2023, 2022, the total of all business credits otherwise allowable under any provision of Chapter 2 (commencing with Section 17041), including the carryover of any business credit under a former provision of that chapter, for the taxable year shall not reduce the net tax, as defined in Section 17039, by more than five million dollars ($5,000,000).(b) Notwithstanding any provision of this part or Part 10.2 (commencing with Section 18401) to the contrary, for taxpayers required to be included in a combined report under Section 25101 or 25110, or taxpayers authorized to be included in a combined report under Section 25101.15, for each taxable year beginning on or after January 1, 2020, and before January 1, 2023, 2022, the total of all business credits otherwise allowable under any provision of Chapter 2 (commencing with Section 17041), including the carryover of any business credit under a former provision of that chapter, by all members of the combined report shall not reduce the aggregate amount of tax, as defined in Section 23036, of all members of the combined report by more than five million dollars ($5,000,000).(c) For purposes of this section, business credit means a credit allowable under any provision of Chapter 2 (commencing with Section 17041) other than the following credits:(1) The credit allowed by Section 17052 (relating to credit for earned income).(2) The credit allowed by Section 17052.1 (relating to credit for young child).(3) The credit allowed by Section 17052.6 (relating to credit for household and dependent care).(4) The credit allowed by Section 17052.25 (relating to credit for adoption costs).(5) The credit allowed by Section 17053.5 (relating to renters tax credit).(6) The credit allowed by Section 17054 (relating to credit for personal exemption).(7) The credit allowed by Section 17054.5 (relating to credit for qualified joint custody head of household and a qualified taxpayer with a dependent parent).(8) The credit allowed by Section 17054.7 (relating to credit for qualified senior head of household).(9) The credit allowed by Section 17058 (relating to credit for low-income housing).(10) The credit allowed by Section 17061 (relating to refunds pursuant to the Unemployment Insurance Code).(d) Any amounts included in an election pursuant to Section 6902.5, relating to an irrevocable election to apply credit amounts under Section 17053.85, 17053.95, 17053.98, 23685, 23695, or 23698 against qualified sales and use tax, as defined in Section 6902.5, are not included in the five-million-dollar ($5,000,000) limitation set forth in subdivision (a) or (b).(e) The amount of any credit otherwise allowable for the taxable year under Section 17039 that is not allowed due to application of this section shall remain a credit carryover amount under this part.(f) The carryover period for any credit that is not allowed due to the application of this section shall be increased by the number of taxable years the credit or any portion thereof was not allowed.(g) Notwithstanding anything to the contrary in this part or Part 10.2 (commencing with Section 18401), the credits listed in subdivision (c) shall be applied after any business credits, as limited by subdivision (a) or (b), are applied.(h) Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code does not apply to any standard, criterion, procedure, determination, rule, notice, or guideline established or issued by the Franchise Tax Board pursuant to this section.(i) The amendments made to this section by the act adding this subdivision shall be operative for taxable years beginning on or after January 1, 2022.
	292	+	731. (a) If a minor is adjudged a ward of the court on the grounds that the minor is a person described by Section 602, the court may commit the ward to the Department of Corrections and Rehabilitation, Division of Juvenile Justice if the ward has committed an offense described in subdivision (b) of Section 707 or subdivision (c) of Section 290.008 of the Penal Code, and has been the subject of a motion filed to transfer the ward to the jurisdiction of the criminal court as provided in subdivision (c) of Section 736.5 and is not otherwise ineligible for commitment to the division under Section 733.(b) A ward committed to the Division of Juvenile Justice shall not be confined in excess of the term of confinement set by the committing court. The court shall set a maximum term based upon the facts and circumstances of the matter or matters that brought or continued the ward under the jurisdiction of the court and as deemed appropriate to achieve rehabilitation. The court shall not commit a ward to the Division of Juvenile Justice for a period that exceeds the middle term of imprisonment that could be imposed upon an adult convicted of the same offense. This subdivision does not limit the power of the Board of Juvenile Hearings to discharge a ward committed to the Division of Juvenile Justice pursuant to Sections 1719 and 1769. Upon discharge, the committing court may retain jurisdiction of the ward pursuant to Section 607.1 and establish the conditions of supervision pursuant to subdivision (b) of Section 1766.(c) This section shall become operative on July 1, 2021, and shall remain in effect until the final closure of the Division of Juvenile Justice.
440	293
441	294
442	295
443		-	~~17039.3~~. (a) ~~Notwithstanding any provision~~ of ~~this part or Part 10.2 (commencing~~ ~~with~~ Section ~~18401)~~ to the ~~contrary~~, for ~~taxpayers not required~~ to ~~be included in a combined report~~ under Section ~~25101 or 25110, or taxpayers not authorized to be included in a combined report under Section 25101~~.15, for each taxable year beginning on or after January 1, 2020, and before January 1, 2023, 2022, the total of all business credits otherwise allowable under any provision of Chapter 2 (commencing with Section 17041), including the carryover of any business credit under a former provision of that chapter, for the taxable year shall not reduce the net tax, as defined in Section 17039, by more than five million dollars ($5,000,000).
	296	+	731. (a) If a minor is adjudged a ward of the court on the grounds that the minor is a person described by Section 602, the court may commit the ward to the Department of Corrections and Rehabilitation, Division of Juvenile Justice if the ward has committed an offense described in subdivision (b) of Section 707 or subdivision (c) of Section 290.008 of the Penal Code, and has been the subject of a motion filed to transfer the ward to the jurisdiction of the criminal court as provided in subdivision (c) of Section 736.5 and is not otherwise ineligible for commitment to the division under Section 733.
444	297
445		-	(b) ~~Notwithstanding any provision of this part or Part 10.2 (commencing with Section 18401)~~ to the ~~contrary, for taxpayers required to~~ be ~~included~~ in a combined report under Section 25101 or 25110, or taxpayers authorized to be included in a combined report under Section 25101.15, for each taxable year beginning on or after January 1, 2020, and before January 1, 2023, 2022, the total of all business credits otherwise allowable under any provision of Chapter 2 (commencing with Section 17041), including the carryover of any business credit under a former provision of that chapter, by all members of the ~~combined report~~ shall not ~~reduce~~ the ~~aggregate amount~~ of ~~tax, as defined in Section 23036,~~ of ~~all members~~ of the ~~combined report by more than five million dollars~~ (~~$5,000,000~~).
	298	+	(b) A ward committed to the Division of Juvenile Justice shall not be confined in excess of the term of confinement set by the committing court. The court shall set a maximum term based upon the facts and circumstances of the matter or matters that brought or continued the ward under the jurisdiction of the court and as deemed appropriate to achieve rehabilitation. The court shall not commit a ward to the Division of Juvenile Justice for a period that exceeds the middle term of imprisonment that could be imposed upon an adult convicted of the same offense. This subdivision does not limit the power of the Board of Juvenile Hearings to discharge a ward committed to the Division of Juvenile Justice pursuant to Sections 1719 and 1769. Upon discharge, the committing court may retain jurisdiction of the ward pursuant to Section 607.1 and establish the conditions of supervision pursuant to subdivision (b) of Section 1766.
446	299
447		-	(c) ~~For purposes~~ of ~~this section, business credit means a credit allowable under any provision~~ of ~~Chapter 2 (commencing with Section 17041) other than the following credits:~~
	300	+	(c) This section shall become operative on July 1, 2021, and shall remain in effect until the final closure of the Division of Juvenile Justice.
448	301
449		-	(1) The ~~credit allowed~~ by Section ~~17052 (relating~~ to ~~credit~~ for ~~earned income~~).
	302	+	SEC. 9. Section 733.1 of the Welfare and Institutions Code is amended to read:733.1. (a) Notwithstanding any other law, except as otherwise provided in this section, a ward of the juvenile court shall not be committed to the Department of Corrections and Rehabilitation, Division of Juvenile Justice on or after July 1, 2021.(b) A court may commit a ward to the Department of Corrections and Rehabilitation, Division of Juvenile Justice as authorized in subdivision (c) of Section 736.5.(c) Effective July 1, 2021, a person adjudged a ward of the court pursuant to Section 602, shall not be committed to the Department of Corrections and Rehabilitation, Division of Juvenile Justice, as long as allocations required by Section 1991 are authorized in statute and disbursed by September 1, 2021, and September 1 annually thereafter. To the extent that the allocations required by Section 1991 are not authorized in statute and disbursed annually thereafter, it is the intent of this section that wards adjudged wards of the court pursuant to Section 602 for an offense described in subdivision (b) of Section 707 of this code or subdivision (c) of Section 290.008 of the Penal Code may be committed to a state-funded facility pursuant to Sections 731, 733, and 734. the Division of Juvenile Justice or, upon the final closure of the Division of Juvenile Justice, another state-funded facility, if the ward could have been committed to the Division of Juvenile Justice pursuant to Section 731, as that section read on January 1, 2021, and Sections 733, 734, and 736.5. For the purpose of determining the states compliance with this subdivision, the presumption shall be that the state is meeting its commitment in Section 1991 if that section is not materially changed from the law in effect on the operative date of this section.
450	303
451		-	~~(2)~~ The ~~credit allowed by Section 17052.1 (relating~~ to ~~credit for young child).~~
	304	+	SEC. 9. Section 733.1 of the Welfare and Institutions Code is amended to read:
452	305
453		-	~~(3) The credit allowed by Section 17052~~.~~6 (relating to credit for household and dependent care).~~
	306	+	### SEC. 9.
454	307
455		-	(4) The ~~credit allowed~~ by Section ~~17052~~.~~25 (relating~~ to ~~credit~~ for ~~adoption costs~~).
	308	+	733.1. (a) Notwithstanding any other law, except as otherwise provided in this section, a ward of the juvenile court shall not be committed to the Department of Corrections and Rehabilitation, Division of Juvenile Justice on or after July 1, 2021.(b) A court may commit a ward to the Department of Corrections and Rehabilitation, Division of Juvenile Justice as authorized in subdivision (c) of Section 736.5.(c) Effective July 1, 2021, a person adjudged a ward of the court pursuant to Section 602, shall not be committed to the Department of Corrections and Rehabilitation, Division of Juvenile Justice, as long as allocations required by Section 1991 are authorized in statute and disbursed by September 1, 2021, and September 1 annually thereafter. To the extent that the allocations required by Section 1991 are not authorized in statute and disbursed annually thereafter, it is the intent of this section that wards adjudged wards of the court pursuant to Section 602 for an offense described in subdivision (b) of Section 707 of this code or subdivision (c) of Section 290.008 of the Penal Code may be committed to a state-funded facility pursuant to Sections 731, 733, and 734. the Division of Juvenile Justice or, upon the final closure of the Division of Juvenile Justice, another state-funded facility, if the ward could have been committed to the Division of Juvenile Justice pursuant to Section 731, as that section read on January 1, 2021, and Sections 733, 734, and 736.5. For the purpose of determining the states compliance with this subdivision, the presumption shall be that the state is meeting its commitment in Section 1991 if that section is not materially changed from the law in effect on the operative date of this section.
456	309
457		-	(5) The ~~credit allowed~~ by Section ~~17053~~.~~5 (relating~~ to ~~renters tax credit~~).
	310	+	733.1. (a) Notwithstanding any other law, except as otherwise provided in this section, a ward of the juvenile court shall not be committed to the Department of Corrections and Rehabilitation, Division of Juvenile Justice on or after July 1, 2021.(b) A court may commit a ward to the Department of Corrections and Rehabilitation, Division of Juvenile Justice as authorized in subdivision (c) of Section 736.5.(c) Effective July 1, 2021, a person adjudged a ward of the court pursuant to Section 602, shall not be committed to the Department of Corrections and Rehabilitation, Division of Juvenile Justice, as long as allocations required by Section 1991 are authorized in statute and disbursed by September 1, 2021, and September 1 annually thereafter. To the extent that the allocations required by Section 1991 are not authorized in statute and disbursed annually thereafter, it is the intent of this section that wards adjudged wards of the court pursuant to Section 602 for an offense described in subdivision (b) of Section 707 of this code or subdivision (c) of Section 290.008 of the Penal Code may be committed to a state-funded facility pursuant to Sections 731, 733, and 734. the Division of Juvenile Justice or, upon the final closure of the Division of Juvenile Justice, another state-funded facility, if the ward could have been committed to the Division of Juvenile Justice pursuant to Section 731, as that section read on January 1, 2021, and Sections 733, 734, and 736.5. For the purpose of determining the states compliance with this subdivision, the presumption shall be that the state is meeting its commitment in Section 1991 if that section is not materially changed from the law in effect on the operative date of this section.
458	311
459		-	(6) The credit allowed by Section 17054 (relating to credit for personal exemption).
460		-
461		-	(7) The credit allowed by Section 17054.5 (relating to credit for qualified joint custody head of household and a qualified taxpayer with a dependent parent).
462		-
463		-	(8) The credit allowed by Section 17054.7 (relating to credit for qualified senior head of household).
464		-
465		-	(9) The credit allowed by Section 17058 (relating to credit for low-income housing).
466		-
467		-	(10) The credit allowed by Section 17061 (relating to refunds pursuant to the Unemployment Insurance Code).
468		-
469		-	(d) Any amounts included in an election pursuant to Section 6902.5, relating to an irrevocable election to apply credit amounts under Section 17053.85, 17053.95, 17053.98, 23685, 23695, or 23698 against qualified sales and use tax, as defined in Section 6902.5, are not included in the five-million-dollar ($5,000,000) limitation set forth in subdivision (a) or (b).
470		-
471		-	(e) The amount of any credit otherwise allowable for the taxable year under Section 17039 that is not allowed due to application of this section shall remain a credit carryover amount under this part.
472		-
473		-	(f) The carryover period for any credit that is not allowed due to the application of this section shall be increased by the number of taxable years the credit or any portion thereof was not allowed.
474		-
475		-	(g) Notwithstanding anything to the contrary in this part or Part 10.2 (commencing with Section 18401), the credits listed in subdivision (c) shall be applied after any business credits, as limited by subdivision (a) or (b), are applied.
476		-
477		-	(h) Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code does not apply to any standard, criterion, procedure, determination, rule, notice, or guideline established or issued by the Franchise Tax Board pursuant to this section.
478		-
479		-	(i) The amendments made to this section by the act adding this subdivision shall be operative for taxable years beginning on or after January 1, 2022.
480		-
481		-	SEC. 8. Section 17052.10 of the Revenue and Taxation Code is amended to read:17052.10. (a) For taxable years beginning on or after January 1, 2021, and before January 1, 2026, there shall be allowed to a qualified taxpayer a credit against the net tax, as defined in Section 17039, in an amount equal to the qualified amount.(b) For purposes of this section:(1) Electing qualified entity means a qualified entity, as defined by Section 19902, that has elected to pay the elective tax under Part 10.4 (commencing with Section 19900).(2) Qualified amount means an amount equal to 9.3 percent of the sum of the qualified taxpayers guaranteed payments as defined by Section 707(c) of the Internal Revenue Code, relating to guaranteed payments, and the qualified taxpayers pro rata share or distributive share, as applicable, of income, as determined under this part and Part 11 (commencing with Section 23001), subject to tax under this part included in qualified net income income, as defined in Section 19900, subject to the election made by an electing qualified entity under Part 10.4 (commencing with Section 19900).(3) Qualified taxpayer means: (3)(A)Qualified taxpayer means a(A) A taxpayer, as defined in Section 17004, excluding partnerships, that is a partner, shareholder, or member of an electing qualified entity that consented to have the sum of their guaranteed payments and pro rata share or distributive share of income, as determined under Part 10 (commencing with Section 17001) this part and Part 11 (commencing with Section 23001), subject to tax under this part included in the qualified net income income, as defined in Section 19900, of the electing qualified entity.(B) Qualified taxpayer does not include a business entity that is disregarded for federal tax purposes, as described in Section 23038, or its partners or members.(C) Subparagraph (B) shall not apply to a limited liability company that is disregarded for federal tax purposes, as described in Section 23038, and meets both of the following:(i) Is owned by a taxpayer, as defined in Section 17004, excluding partnerships, that consented to have the sum of their guaranteed payments and pro rata share or distributive share of income, as determined under this part and Part 11 (commencing with Section 23001), subject to tax under this part included in the qualified net income, as defined in Section 19900, of the electing qualified entity.(ii) Is a partner, shareholder, or member of an electing qualified entity.(c) In the case where the credit allowed by this section exceeds the net tax, the excess may be carried over to reduce the net tax in the following taxable year, and succeeding four years, if necessary, until the credit is exhausted.(d) (1) Any disallowance of a credit under this section due to any of the following conditions shall be treated as a mathematical error appearing on the return:(A) Timely payment was not made under subdivision (b) of Section 19904.(B) Payments made for the taxable year exceed the elective tax computed under Part 10.4 (commencing with Section 19900).(C) No election was made or allowed under Part 10.4 (commencing with Section 19900).(2) Any amount of tax resulting from such disallowance may be assessed by the Franchise Tax Board in the same manner as provided by Section 19051.(e) (1) The Franchise Tax Board may adopt regulations that are necessary or appropriate to implement this section.(2) Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code shall not apply to any regulation, rule, guideline, or procedure prescribed by the Franchise Tax Board pursuant to this section.(f) For the purposes of complying with Section 41, the Legislature finds and declares that the goal of this tax credit is to provide tax relief to small businesses facing unprecedented economic hurdles due to COVID-19.(g) The amendments made to this section by the act adding this subdivision shall apply for taxable years beginning on or after January 1, 2021, and before January 1, 2026.(g)(h) This section shall remain in effect only until December 1, 2026, and as of that date is repealed.
482		-
483		-	SEC. 8. Section 17052.10 of the Revenue and Taxation Code is amended to read:
484		-
485		-	### SEC. 8.
486		-
487		-	17052.10. (a) For taxable years beginning on or after January 1, 2021, and before January 1, 2026, there shall be allowed to a qualified taxpayer a credit against the net tax, as defined in Section 17039, in an amount equal to the qualified amount.(b) For purposes of this section:(1) Electing qualified entity means a qualified entity, as defined by Section 19902, that has elected to pay the elective tax under Part 10.4 (commencing with Section 19900).(2) Qualified amount means an amount equal to 9.3 percent of the sum of the qualified taxpayers guaranteed payments as defined by Section 707(c) of the Internal Revenue Code, relating to guaranteed payments, and the qualified taxpayers pro rata share or distributive share, as applicable, of income, as determined under this part and Part 11 (commencing with Section 23001), subject to tax under this part included in qualified net income income, as defined in Section 19900, subject to the election made by an electing qualified entity under Part 10.4 (commencing with Section 19900).(3) Qualified taxpayer means: (3)(A)Qualified taxpayer means a(A) A taxpayer, as defined in Section 17004, excluding partnerships, that is a partner, shareholder, or member of an electing qualified entity that consented to have the sum of their guaranteed payments and pro rata share or distributive share of income, as determined under Part 10 (commencing with Section 17001) this part and Part 11 (commencing with Section 23001), subject to tax under this part included in the qualified net income income, as defined in Section 19900, of the electing qualified entity.(B) Qualified taxpayer does not include a business entity that is disregarded for federal tax purposes, as described in Section 23038, or its partners or members.(C) Subparagraph (B) shall not apply to a limited liability company that is disregarded for federal tax purposes, as described in Section 23038, and meets both of the following:(i) Is owned by a taxpayer, as defined in Section 17004, excluding partnerships, that consented to have the sum of their guaranteed payments and pro rata share or distributive share of income, as determined under this part and Part 11 (commencing with Section 23001), subject to tax under this part included in the qualified net income, as defined in Section 19900, of the electing qualified entity.(ii) Is a partner, shareholder, or member of an electing qualified entity.(c) In the case where the credit allowed by this section exceeds the net tax, the excess may be carried over to reduce the net tax in the following taxable year, and succeeding four years, if necessary, until the credit is exhausted.(d) (1) Any disallowance of a credit under this section due to any of the following conditions shall be treated as a mathematical error appearing on the return:(A) Timely payment was not made under subdivision (b) of Section 19904.(B) Payments made for the taxable year exceed the elective tax computed under Part 10.4 (commencing with Section 19900).(C) No election was made or allowed under Part 10.4 (commencing with Section 19900).(2) Any amount of tax resulting from such disallowance may be assessed by the Franchise Tax Board in the same manner as provided by Section 19051.(e) (1) The Franchise Tax Board may adopt regulations that are necessary or appropriate to implement this section.(2) Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code shall not apply to any regulation, rule, guideline, or procedure prescribed by the Franchise Tax Board pursuant to this section.(f) For the purposes of complying with Section 41, the Legislature finds and declares that the goal of this tax credit is to provide tax relief to small businesses facing unprecedented economic hurdles due to COVID-19.(g) The amendments made to this section by the act adding this subdivision shall apply for taxable years beginning on or after January 1, 2021, and before January 1, 2026.(g)(h) This section shall remain in effect only until December 1, 2026, and as of that date is repealed.
488		-
489		-	17052.10. (a) For taxable years beginning on or after January 1, 2021, and before January 1, 2026, there shall be allowed to a qualified taxpayer a credit against the net tax, as defined in Section 17039, in an amount equal to the qualified amount.(b) For purposes of this section:(1) Electing qualified entity means a qualified entity, as defined by Section 19902, that has elected to pay the elective tax under Part 10.4 (commencing with Section 19900).(2) Qualified amount means an amount equal to 9.3 percent of the sum of the qualified taxpayers guaranteed payments as defined by Section 707(c) of the Internal Revenue Code, relating to guaranteed payments, and the qualified taxpayers pro rata share or distributive share, as applicable, of income, as determined under this part and Part 11 (commencing with Section 23001), subject to tax under this part included in qualified net income income, as defined in Section 19900, subject to the election made by an electing qualified entity under Part 10.4 (commencing with Section 19900).(3) Qualified taxpayer means: (3)(A)Qualified taxpayer means a(A) A taxpayer, as defined in Section 17004, excluding partnerships, that is a partner, shareholder, or member of an electing qualified entity that consented to have the sum of their guaranteed payments and pro rata share or distributive share of income, as determined under Part 10 (commencing with Section 17001) this part and Part 11 (commencing with Section 23001), subject to tax under this part included in the qualified net income income, as defined in Section 19900, of the electing qualified entity.(B) Qualified taxpayer does not include a business entity that is disregarded for federal tax purposes, as described in Section 23038, or its partners or members.(C) Subparagraph (B) shall not apply to a limited liability company that is disregarded for federal tax purposes, as described in Section 23038, and meets both of the following:(i) Is owned by a taxpayer, as defined in Section 17004, excluding partnerships, that consented to have the sum of their guaranteed payments and pro rata share or distributive share of income, as determined under this part and Part 11 (commencing with Section 23001), subject to tax under this part included in the qualified net income, as defined in Section 19900, of the electing qualified entity.(ii) Is a partner, shareholder, or member of an electing qualified entity.(c) In the case where the credit allowed by this section exceeds the net tax, the excess may be carried over to reduce the net tax in the following taxable year, and succeeding four years, if necessary, until the credit is exhausted.(d) (1) Any disallowance of a credit under this section due to any of the following conditions shall be treated as a mathematical error appearing on the return:(A) Timely payment was not made under subdivision (b) of Section 19904.(B) Payments made for the taxable year exceed the elective tax computed under Part 10.4 (commencing with Section 19900).(C) No election was made or allowed under Part 10.4 (commencing with Section 19900).(2) Any amount of tax resulting from such disallowance may be assessed by the Franchise Tax Board in the same manner as provided by Section 19051.(e) (1) The Franchise Tax Board may adopt regulations that are necessary or appropriate to implement this section.(2) Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code shall not apply to any regulation, rule, guideline, or procedure prescribed by the Franchise Tax Board pursuant to this section.(f) For the purposes of complying with Section 41, the Legislature finds and declares that the goal of this tax credit is to provide tax relief to small businesses facing unprecedented economic hurdles due to COVID-19.(g) The amendments made to this section by the act adding this subdivision shall apply for taxable years beginning on or after January 1, 2021, and before January 1, 2026.(g)(h) This section shall remain in effect only until December 1, 2026, and as of that date is repealed.
490		-
491		-	17052.10. (a) For taxable years beginning on or after January 1, 2021, and before January 1, 2026, there shall be allowed to a qualified taxpayer a credit against the net tax, as defined in Section 17039, in an amount equal to the qualified amount.(b) For purposes of this section:(1) Electing qualified entity means a qualified entity, as defined by Section 19902, that has elected to pay the elective tax under Part 10.4 (commencing with Section 19900).(2) Qualified amount means an amount equal to 9.3 percent of the sum of the qualified taxpayers guaranteed payments as defined by Section 707(c) of the Internal Revenue Code, relating to guaranteed payments, and the qualified taxpayers pro rata share or distributive share, as applicable, of income, as determined under this part and Part 11 (commencing with Section 23001), subject to tax under this part included in qualified net income income, as defined in Section 19900, subject to the election made by an electing qualified entity under Part 10.4 (commencing with Section 19900).(3) Qualified taxpayer means: (3)(A)Qualified taxpayer means a(A) A taxpayer, as defined in Section 17004, excluding partnerships, that is a partner, shareholder, or member of an electing qualified entity that consented to have the sum of their guaranteed payments and pro rata share or distributive share of income, as determined under Part 10 (commencing with Section 17001) this part and Part 11 (commencing with Section 23001), subject to tax under this part included in the qualified net income income, as defined in Section 19900, of the electing qualified entity.(B) Qualified taxpayer does not include a business entity that is disregarded for federal tax purposes, as described in Section 23038, or its partners or members.(C) Subparagraph (B) shall not apply to a limited liability company that is disregarded for federal tax purposes, as described in Section 23038, and meets both of the following:(i) Is owned by a taxpayer, as defined in Section 17004, excluding partnerships, that consented to have the sum of their guaranteed payments and pro rata share or distributive share of income, as determined under this part and Part 11 (commencing with Section 23001), subject to tax under this part included in the qualified net income, as defined in Section 19900, of the electing qualified entity.(ii) Is a partner, shareholder, or member of an electing qualified entity.(c) In the case where the credit allowed by this section exceeds the net tax, the excess may be carried over to reduce the net tax in the following taxable year, and succeeding four years, if necessary, until the credit is exhausted.(d) (1) Any disallowance of a credit under this section due to any of the following conditions shall be treated as a mathematical error appearing on the return:(A) Timely payment was not made under subdivision (b) of Section 19904.(B) Payments made for the taxable year exceed the elective tax computed under Part 10.4 (commencing with Section 19900).(C) No election was made or allowed under Part 10.4 (commencing with Section 19900).(2) Any amount of tax resulting from such disallowance may be assessed by the Franchise Tax Board in the same manner as provided by Section 19051.(e) (1) The Franchise Tax Board may adopt regulations that are necessary or appropriate to implement this section.(2) Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code shall not apply to any regulation, rule, guideline, or procedure prescribed by the Franchise Tax Board pursuant to this section.(f) For the purposes of complying with Section 41, the Legislature finds and declares that the goal of this tax credit is to provide tax relief to small businesses facing unprecedented economic hurdles due to COVID-19.(g) The amendments made to this section by the act adding this subdivision shall apply for taxable years beginning on or after January 1, 2021, and before January 1, 2026.(g)(h) This section shall remain in effect only until December 1, 2026, and as of that date is repealed.
	312	+	733.1. (a) Notwithstanding any other law, except as otherwise provided in this section, a ward of the juvenile court shall not be committed to the Department of Corrections and Rehabilitation, Division of Juvenile Justice on or after July 1, 2021.(b) A court may commit a ward to the Department of Corrections and Rehabilitation, Division of Juvenile Justice as authorized in subdivision (c) of Section 736.5.(c) Effective July 1, 2021, a person adjudged a ward of the court pursuant to Section 602, shall not be committed to the Department of Corrections and Rehabilitation, Division of Juvenile Justice, as long as allocations required by Section 1991 are authorized in statute and disbursed by September 1, 2021, and September 1 annually thereafter. To the extent that the allocations required by Section 1991 are not authorized in statute and disbursed annually thereafter, it is the intent of this section that wards adjudged wards of the court pursuant to Section 602 for an offense described in subdivision (b) of Section 707 of this code or subdivision (c) of Section 290.008 of the Penal Code may be committed to a state-funded facility pursuant to Sections 731, 733, and 734. the Division of Juvenile Justice or, upon the final closure of the Division of Juvenile Justice, another state-funded facility, if the ward could have been committed to the Division of Juvenile Justice pursuant to Section 731, as that section read on January 1, 2021, and Sections 733, 734, and 736.5. For the purpose of determining the states compliance with this subdivision, the presumption shall be that the state is meeting its commitment in Section 1991 if that section is not materially changed from the law in effect on the operative date of this section.
492	313
493	314
494	315
495		-	~~17052~~.10. (a) ~~For taxable years beginning~~ on or after ~~January~~ 1, 2021~~, and before January 1, 2026, there shall be allowed to a qualified taxpayer a credit against the net tax, as defined in Section 17039, in an amount equal to the qualified amount~~.
	316	+	733.1. (a) Notwithstanding any other law, except as otherwise provided in this section, a ward of the juvenile court shall not be committed to the Department of Corrections and Rehabilitation, Division of Juvenile Justice on or after July 1, 2021.
496	317
497		-	(b) ~~For purposes~~ of ~~this~~ section:
	318	+	(b) A court may commit a ward to the Department of Corrections and Rehabilitation, Division of Juvenile Justice as authorized in subdivision (c) of Section 736.5.
498	319
499		-	(1) ~~Electing qualified entity means~~ a ~~qualified entity~~, as ~~defined~~ by Section ~~19902~~, that ~~has elected~~ to ~~pay~~ the ~~elective tax under Part 10~~.~~4 (commencing~~ with Section ~~19900)~~.
	320	+	(c) Effective July 1, 2021, a person adjudged a ward of the court pursuant to Section 602, shall not be committed to the Department of Corrections and Rehabilitation, Division of Juvenile Justice, as long as allocations required by Section 1991 are authorized in statute and disbursed by September 1, 2021, and September 1 annually thereafter. To the extent that the allocations required by Section 1991 are not authorized in statute and disbursed annually thereafter, it is the intent of this section that wards adjudged wards of the court pursuant to Section 602 for an offense described in subdivision (b) of Section 707 of this code or subdivision (c) of Section 290.008 of the Penal Code may be committed to a state-funded facility pursuant to Sections 731, 733, and 734. the Division of Juvenile Justice or, upon the final closure of the Division of Juvenile Justice, another state-funded facility, if the ward could have been committed to the Division of Juvenile Justice pursuant to Section 731, as that section read on January 1, 2021, and Sections 733, 734, and 736.5. For the purpose of determining the states compliance with this subdivision, the presumption shall be that the state is meeting its commitment in Section 1991 if that section is not materially changed from the law in effect on the operative date of this section.
500	321
501		-	~~(2) Qualified amount means an amount equal to 9~~.~~3 percent~~ of the ~~sum~~ of the ~~qualified taxpayers guaranteed payments as defined by Section 707(c)~~ of the ~~Internal Revenue Code~~, ~~relating~~ to ~~guaranteed payments,~~ and the ~~qualified taxpayers pro rata share or distributive share~~, as ~~applicable,~~ of ~~income~~, as ~~determined under this part~~ and ~~Part 11~~ (~~commencing with Section 23001~~), ~~subject~~ to ~~tax under this part included in qualified net income income~~, ~~as defined~~ in Section ~~19900~~, ~~subject to the election made by an electing qualified entity under Part 10~~.~~4 (commencing with Section 19900).~~
	322	+	SEC. 10. Section 736.5 of the Welfare and Institutions Code is amended to read:736.5. (a) It is the intent of the Legislature to close the Division of Juvenile Justice within the Department of Corrections and Rehabilitation, through shifting responsibility for all youth adjudged a ward of the court, commencing July 1, 2021, to county governments and providing annual funding for county governments to fulfill this new responsibility.(b) Beginning July 1, 2021, a ward shall not be committed to the Department of Corrections and Rehabilitation, Division of Juvenile Justice, except as described in subdivision (c).(c) Pending the final closure of the Department of Corrections and Rehabilitation, Division of Juvenile Justice, a court may commit a ward who is otherwise eligible to be committed under existing law and in whose case a motion to transfer the minor from juvenile court to a court of criminal jurisdiction was filed. The court shall consider, as an alternative to commitment to the Division of Juvenile Justice, placement in local programs, including those established as a result of the implementation of Chapter 337 of the Statutes of 2020.(d) All wards committed to the Department of Corrections and Rehabilitation, Division of Juvenile Justice prior to July 1, 2021 or pursuant to (c), shall remain within its custody until the ward is discharged, released or otherwise moved pursuant to law. law, or until final closure of the Division of Juvenile Justice.(e) The Division of Juvenile Justice within the Department of Corrections and Rehabilitation shall close on June 30, 2023.(f) The Director of the Division of Juvenile Justice shall develop a plan, by January 1, 2022, for the transfer of jurisdiction of youth remaining at the Division of Juvenile Justice who are unable to discharge or otherwise move pursuant to law prior to final closure on June 30, 2023.(e)It is the intent of the Legislature to establish a separate dispositional track for higher-need youth by March 1, 2021. The framework for consideration shall be the processes laid out in Section 30 of Senate Bill 823 as amended on August 24, 2020.
502	323
503		-	~~(3) Qualified taxpayer means~~:
	324	+	SEC. 10. Section 736.5 of the Welfare and Institutions Code is amended to read:
504	325
505		-	(3)(A)Qualified taxpayer means a
	326	+	### SEC. 10.
	327	+
	328	+	736.5. (a) It is the intent of the Legislature to close the Division of Juvenile Justice within the Department of Corrections and Rehabilitation, through shifting responsibility for all youth adjudged a ward of the court, commencing July 1, 2021, to county governments and providing annual funding for county governments to fulfill this new responsibility.(b) Beginning July 1, 2021, a ward shall not be committed to the Department of Corrections and Rehabilitation, Division of Juvenile Justice, except as described in subdivision (c).(c) Pending the final closure of the Department of Corrections and Rehabilitation, Division of Juvenile Justice, a court may commit a ward who is otherwise eligible to be committed under existing law and in whose case a motion to transfer the minor from juvenile court to a court of criminal jurisdiction was filed. The court shall consider, as an alternative to commitment to the Division of Juvenile Justice, placement in local programs, including those established as a result of the implementation of Chapter 337 of the Statutes of 2020.(d) All wards committed to the Department of Corrections and Rehabilitation, Division of Juvenile Justice prior to July 1, 2021 or pursuant to (c), shall remain within its custody until the ward is discharged, released or otherwise moved pursuant to law. law, or until final closure of the Division of Juvenile Justice.(e) The Division of Juvenile Justice within the Department of Corrections and Rehabilitation shall close on June 30, 2023.(f) The Director of the Division of Juvenile Justice shall develop a plan, by January 1, 2022, for the transfer of jurisdiction of youth remaining at the Division of Juvenile Justice who are unable to discharge or otherwise move pursuant to law prior to final closure on June 30, 2023.(e)It is the intent of the Legislature to establish a separate dispositional track for higher-need youth by March 1, 2021. The framework for consideration shall be the processes laid out in Section 30 of Senate Bill 823 as amended on August 24, 2020.
	329	+
	330	+	736.5. (a) It is the intent of the Legislature to close the Division of Juvenile Justice within the Department of Corrections and Rehabilitation, through shifting responsibility for all youth adjudged a ward of the court, commencing July 1, 2021, to county governments and providing annual funding for county governments to fulfill this new responsibility.(b) Beginning July 1, 2021, a ward shall not be committed to the Department of Corrections and Rehabilitation, Division of Juvenile Justice, except as described in subdivision (c).(c) Pending the final closure of the Department of Corrections and Rehabilitation, Division of Juvenile Justice, a court may commit a ward who is otherwise eligible to be committed under existing law and in whose case a motion to transfer the minor from juvenile court to a court of criminal jurisdiction was filed. The court shall consider, as an alternative to commitment to the Division of Juvenile Justice, placement in local programs, including those established as a result of the implementation of Chapter 337 of the Statutes of 2020.(d) All wards committed to the Department of Corrections and Rehabilitation, Division of Juvenile Justice prior to July 1, 2021 or pursuant to (c), shall remain within its custody until the ward is discharged, released or otherwise moved pursuant to law. law, or until final closure of the Division of Juvenile Justice.(e) The Division of Juvenile Justice within the Department of Corrections and Rehabilitation shall close on June 30, 2023.(f) The Director of the Division of Juvenile Justice shall develop a plan, by January 1, 2022, for the transfer of jurisdiction of youth remaining at the Division of Juvenile Justice who are unable to discharge or otherwise move pursuant to law prior to final closure on June 30, 2023.(e)It is the intent of the Legislature to establish a separate dispositional track for higher-need youth by March 1, 2021. The framework for consideration shall be the processes laid out in Section 30 of Senate Bill 823 as amended on August 24, 2020.
	331	+
	332	+	736.5. (a) It is the intent of the Legislature to close the Division of Juvenile Justice within the Department of Corrections and Rehabilitation, through shifting responsibility for all youth adjudged a ward of the court, commencing July 1, 2021, to county governments and providing annual funding for county governments to fulfill this new responsibility.(b) Beginning July 1, 2021, a ward shall not be committed to the Department of Corrections and Rehabilitation, Division of Juvenile Justice, except as described in subdivision (c).(c) Pending the final closure of the Department of Corrections and Rehabilitation, Division of Juvenile Justice, a court may commit a ward who is otherwise eligible to be committed under existing law and in whose case a motion to transfer the minor from juvenile court to a court of criminal jurisdiction was filed. The court shall consider, as an alternative to commitment to the Division of Juvenile Justice, placement in local programs, including those established as a result of the implementation of Chapter 337 of the Statutes of 2020.(d) All wards committed to the Department of Corrections and Rehabilitation, Division of Juvenile Justice prior to July 1, 2021 or pursuant to (c), shall remain within its custody until the ward is discharged, released or otherwise moved pursuant to law. law, or until final closure of the Division of Juvenile Justice.(e) The Division of Juvenile Justice within the Department of Corrections and Rehabilitation shall close on June 30, 2023.(f) The Director of the Division of Juvenile Justice shall develop a plan, by January 1, 2022, for the transfer of jurisdiction of youth remaining at the Division of Juvenile Justice who are unable to discharge or otherwise move pursuant to law prior to final closure on June 30, 2023.(e)It is the intent of the Legislature to establish a separate dispositional track for higher-need youth by March 1, 2021. The framework for consideration shall be the processes laid out in Section 30 of Senate Bill 823 as amended on August 24, 2020.
506	333
507	334
508	335
509		-	(A) ~~A taxpayer, as defined in Section 17004, excluding partnerships, that~~ is ~~a partner, shareholder, or member of an electing qualified entity that consented to have~~ the sum of their guaranteed payments and pro rata share or distributive share of income, as determined under Part 10 (commencing with Section 17001) this part and Part 11 (commencing with Section 23001), subject to tax under this part included in the qualified net income income, as defined in Section 19900, of the ~~electing qualified entity~~.
	336	+	736.5. (a) It is the intent of the Legislature to close the Division of Juvenile Justice within the Department of Corrections and Rehabilitation, through shifting responsibility for all youth adjudged a ward of the court, commencing July 1, 2021, to county governments and providing annual funding for county governments to fulfill this new responsibility.
510	337
511		-	(B) ~~Qualified taxpayer does~~ not ~~include a business entity that is disregarded for federal tax purposes~~, as described in ~~Section 23038, or its partners or members~~.
	338	+	(b) Beginning July 1, 2021, a ward shall not be committed to the Department of Corrections and Rehabilitation, Division of Juvenile Justice, except as described in subdivision (c).
512	339
513		-	(C) ~~Subparagraph (B) shall not apply~~ to a ~~limited liability company that is disregarded for federal tax purposes~~, as ~~described~~ in ~~Section 23038~~, ~~and meets both~~ of the ~~following:~~
	340	+	(c) Pending the final closure of the Department of Corrections and Rehabilitation, Division of Juvenile Justice, a court may commit a ward who is otherwise eligible to be committed under existing law and in whose case a motion to transfer the minor from juvenile court to a court of criminal jurisdiction was filed. The court shall consider, as an alternative to commitment to the Division of Juvenile Justice, placement in local programs, including those established as a result of the implementation of Chapter 337 of the Statutes of 2020.
514	341
515		-	(i) Is ~~owned by a taxpayer~~, ~~as defined in Section 17004, excluding partnerships, that consented~~ to ~~have the sum of their guaranteed payments and pro rata share~~ or distributive share of income, as determined under this part and Part 11 (commencing with Section 23001), subject to tax under this part included in the qualified net income, as defined in Section 19900, of the ~~electing qualified entity~~.
	342	+	(d) All wards committed to the Department of Corrections and Rehabilitation, Division of Juvenile Justice prior to July 1, 2021 or pursuant to (c), shall remain within its custody until the ward is discharged, released or otherwise moved pursuant to law. law, or until final closure of the Division of Juvenile Justice.
516	343
517		-	(ii) ~~Is a partner, shareholder, or member~~ of ~~an electing qualified entity~~.
	344	+	(e) The Division of Juvenile Justice within the Department of Corrections and Rehabilitation shall close on June 30, 2023.
518	345
519		-	(c) In the ~~case where~~ the ~~credit allowed~~ by ~~this section exceeds~~ the ~~net tax,~~ the ~~excess may be carried over~~ to ~~reduce the net tax in the following taxable year~~, ~~and succeeding four years, if necessary, until the credit is exhausted~~.
	346	+	(f) The Director of the Division of Juvenile Justice shall develop a plan, by January 1, 2022, for the transfer of jurisdiction of youth remaining at the Division of Juvenile Justice who are unable to discharge or otherwise move pursuant to law prior to final closure on June 30, 2023.
520	347
521		-	(d) (1) Any disallowance of a credit under this section due to any of the following conditions shall be treated as a mathematical error appearing on the return:
522		-
523		-	(A) Timely payment was not made under subdivision (b) of Section 19904.
524		-
525		-	(B) Payments made for the taxable year exceed the elective tax computed under Part 10.4 (commencing with Section 19900).
526		-
527		-	(C) No election was made or allowed under Part 10.4 (commencing with Section 19900).
528		-
529		-	(2) Any amount of tax resulting from such disallowance may be assessed by the Franchise Tax Board in the same manner as provided by Section 19051.
530		-
531		-	(e) (1) The Franchise Tax Board may adopt regulations that are necessary or appropriate to implement this section.
532		-
533		-	(2) Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code shall not apply to any regulation, rule, guideline, or procedure prescribed by the Franchise Tax Board pursuant to this section.
534		-
535		-	(f) For the purposes of complying with Section 41, the Legislature finds and declares that the goal of this tax credit is to provide tax relief to small businesses facing unprecedented economic hurdles due to COVID-19.
536		-
537		-	(g) The amendments made to this section by the act adding this subdivision shall apply for taxable years beginning on or after January 1, 2021, and before January 1, 2026.
538		-
539		-	(g)
	348	+	(e)It is the intent of the Legislature to establish a separate dispositional track for higher-need youth by March 1, 2021. The framework for consideration shall be the processes laid out in Section 30 of Senate Bill 823 as amended on August 24, 2020.
540	349
541	350
542	351
543		-	~~(h) This~~ section ~~shall remain~~ in ~~effect only until December 1~~, ~~2026~~, and as of that ~~date~~ is ~~repealed~~.
	352	+	SEC. 11. Section 779.5 is added to the Welfare and Institutions Code, to read:779.5. The court committing a ward to a secure youth treatment facility as provided in Section 875 may thereafter modify or set aside the order of commitment upon the written application of the ward or the probation department and upon a showing of good cause that the county or the commitment facility has failed, or is unable to, provide the ward with treatment, programming, and education that are consistent with the individual rehabilitation plan described in subdivision (d) of Section 875, that the conditions under which the ward is confined are harmful to the ward, or that the juvenile justice goals of rehabilitation and community safety are no longer served by continued confinement of the ward in a secure youth treatment facility. The court shall notice a hearing in which it shall hear any evidence from the ward, the probation department, and any behavioral health or other specialists having information relevant to consideration of the request to modify or set aside the order of commitment. The court shall, at the conclusion of the hearing, make its findings on the record, including findings as to the custodial and supervision status of the ward, based on the evidence presented.
544	353
545		-	SEC. 9. Section ~~17131~~.16 is added to the ~~Revenue~~ and ~~Taxation~~ Code, to read:17131.16. (a) For taxable years beginning on or after January 1, 2021, and before January 1, 2026, gross income does not include a bill credit or credits received by a customer from a community water system or wastewater treatment provider pursuant to the Water and Wastewater System Payments Under the American Rescue Plan Act of 2021 (Chapter 4.7 (commencing with Section 116773) of Part 12 of Division 104 of the Health and Safety Code). (b) This section shall remain in effect only until December 1, 2026, and as of that date is repealed.
	354	+	SEC. 11. Section 779.5 is added to the Welfare and Institutions Code, to read:
546	355
547		-	SEC. 9. ~~Section 17131.16 is added to the Revenue and Taxation Code, to read:~~
	356	+	### SEC. 11.
548	357
549		-	~~### SEC~~. 9.
	358	+	779.5. The court committing a ward to a secure youth treatment facility as provided in Section 875 may thereafter modify or set aside the order of commitment upon the written application of the ward or the probation department and upon a showing of good cause that the county or the commitment facility has failed, or is unable to, provide the ward with treatment, programming, and education that are consistent with the individual rehabilitation plan described in subdivision (d) of Section 875, that the conditions under which the ward is confined are harmful to the ward, or that the juvenile justice goals of rehabilitation and community safety are no longer served by continued confinement of the ward in a secure youth treatment facility. The court shall notice a hearing in which it shall hear any evidence from the ward, the probation department, and any behavioral health or other specialists having information relevant to consideration of the request to modify or set aside the order of commitment. The court shall, at the conclusion of the hearing, make its findings on the record, including findings as to the custodial and supervision status of the ward, based on the evidence presented.
550	359
551		-	~~17131~~.16. (a~~) For taxable years beginning on~~ or ~~after January 1~~, ~~2021~~, and ~~before January 1~~, ~~2026, gross income does not include a bill credit or credits received by a customer from a community water system or wastewater treatment provider pursuant~~ to the ~~Water~~ and ~~Wastewater System Payments Under the American Rescue Plan Act of 2021 (Chapter 4.7 (commencing with Section 116773) of Part 12 of Division 104~~ of the ~~Health and Safety Code)~~. ~~(b) This section~~ shall ~~remain~~ in ~~effect only until December 1~~, ~~2026~~, and as of ~~that date is repealed~~.
	360	+	779.5. The court committing a ward to a secure youth treatment facility as provided in Section 875 may thereafter modify or set aside the order of commitment upon the written application of the ward or the probation department and upon a showing of good cause that the county or the commitment facility has failed, or is unable to, provide the ward with treatment, programming, and education that are consistent with the individual rehabilitation plan described in subdivision (d) of Section 875, that the conditions under which the ward is confined are harmful to the ward, or that the juvenile justice goals of rehabilitation and community safety are no longer served by continued confinement of the ward in a secure youth treatment facility. The court shall notice a hearing in which it shall hear any evidence from the ward, the probation department, and any behavioral health or other specialists having information relevant to consideration of the request to modify or set aside the order of commitment. The court shall, at the conclusion of the hearing, make its findings on the record, including findings as to the custodial and supervision status of the ward, based on the evidence presented.
552	361
553		-	17131.16. (a) For taxable years beginning on or after January 1, 2021, and before January 1, 2026, gross income does not include a bill credit or credits received by a customer from a community water system or wastewater treatment provider pursuant to the Water and Wastewater System Payments Under the American Rescue Plan Act of 2021 (Chapter 4.7 (commencing with Section 116773) of Part 12 of Division 104 of the Health and Safety Code). (b) This section shall remain in effect only until December 1, 2026, and as of that date is repealed.
554		-
555		-	17131.16. (a) For taxable years beginning on or after January 1, 2021, and before January 1, 2026, gross income does not include a bill credit or credits received by a customer from a community water system or wastewater treatment provider pursuant to the Water and Wastewater System Payments Under the American Rescue Plan Act of 2021 (Chapter 4.7 (commencing with Section 116773) of Part 12 of Division 104 of the Health and Safety Code). (b) This section shall remain in effect only until December 1, 2026, and as of that date is repealed.
	362	+	779.5. The court committing a ward to a secure youth treatment facility as provided in Section 875 may thereafter modify or set aside the order of commitment upon the written application of the ward or the probation department and upon a showing of good cause that the county or the commitment facility has failed, or is unable to, provide the ward with treatment, programming, and education that are consistent with the individual rehabilitation plan described in subdivision (d) of Section 875, that the conditions under which the ward is confined are harmful to the ward, or that the juvenile justice goals of rehabilitation and community safety are no longer served by continued confinement of the ward in a secure youth treatment facility. The court shall notice a hearing in which it shall hear any evidence from the ward, the probation department, and any behavioral health or other specialists having information relevant to consideration of the request to modify or set aside the order of commitment. The court shall, at the conclusion of the hearing, make its findings on the record, including findings as to the custodial and supervision status of the ward, based on the evidence presented.
556	363
557	364
558	365
559		-	~~17131~~.16. (a~~) For taxable years beginning on~~ or ~~after January 1~~, ~~2021~~, and ~~before January 1~~, ~~2026, gross income does not include a bill credit or credits received by a customer from a community water system or wastewater treatment provider pursuant~~ to the ~~Water~~ and ~~Wastewater System Payments Under the American Rescue Plan Act of 2021 (Chapter 4.7 (commencing with Section 116773) of Part 12 of Division 104~~ of the ~~Health~~ and ~~Safety Code)~~.
	366	+	779.5. The court committing a ward to a secure youth treatment facility as provided in Section 875 may thereafter modify or set aside the order of commitment upon the written application of the ward or the probation department and upon a showing of good cause that the county or the commitment facility has failed, or is unable to, provide the ward with treatment, programming, and education that are consistent with the individual rehabilitation plan described in subdivision (d) of Section 875, that the conditions under which the ward is confined are harmful to the ward, or that the juvenile justice goals of rehabilitation and community safety are no longer served by continued confinement of the ward in a secure youth treatment facility. The court shall notice a hearing in which it shall hear any evidence from the ward, the probation department, and any behavioral health or other specialists having information relevant to consideration of the request to modify or set aside the order of commitment. The court shall, at the conclusion of the hearing, make its findings on the record, including findings as to the custodial and supervision status of the ward, based on the evidence presented.
560	367
561		-	(b) This section shall remain in ~~effect~~ only ~~until December~~ 1~~, 2026, and~~ as of that date is ~~repealed.~~
	368	+	SEC. 12. Article 23.5 (commencing with Section 875) is added to Chapter 2 of Part 1 of Division 2 of the Welfare and Institutions Code, to read: Article 23.5. Secure Youth Treatment Facilities875. (a) In addition to the types of treatment specified in Sections 727 and 730, commencing July 1, 2021, the court may order that a ward who is 14 years of age or older, be committed to a secure youth treatment facility for a period of confinement described in subdivision (b) if the ward meets the following criteria:(1) The juvenile is adjudicated and found to be a ward of the court based on an offense listed in subdivision (b) of Section 707.(2) The adjudication described in paragraph (1) is the most recent offense for which the juvenile has been adjudicated.(3) The court has made a finding on the record that a less restrictive, alternative disposition for the ward is unsuitable. In determining this, the court shall consider all relevant and material evidence, including the recommendations of counsel, the probation department, and any other agency or individual designated by the court to advise on the appropriate disposition of the case. The court shall additionally make its determination based on all of the following criteria:(A) The severity of the offense or offenses for which the ward has been most recently adjudicated, including the wards role in the offense, the wards behavior, and harm done to victims.(B) The wards previous delinquent history, including the adequacy and success of previous attempts by the juvenile court to rehabilitate the ward.(C) Whether the programming, treatment, and education offered and provided in a secure youth treatment facility is appropriate to meet the treatment and security needs of the ward.(D) Whether the goals of rehabilitation and community safety can be met by assigning the ward to an alternative, less restrictive disposition that is available to the court.(E) The wards age, developmental maturity, mental and emotional health, sexual orientation, gender identity and expression, and any disabilities or special needs affecting the safety or suitability of committing the ward to a term of confinement in a secure youth treatment facility.(b) In making its order of commitment for a ward, the court shall set a baseline term of confinement for the ward that is based on the most serious recent offense for which the ward has been adjudicated. The baseline term of confinement shall represent the time in custody necessary to meet the developmental and treatment needs of the ward and to prepare the ward for discharge to a period of probation supervision in the community. The baseline term of confinement for the ward shall be determined according to offense-based classifications that are approved by the Judicial Council as described in subdivision (h). Pending the development and adoption of offense-based classifications by the Judicial Council, the court shall set a baseline term of confinement for the ward utilizing the discharge consideration date guidelines applied by the Department of Corrections and Rehabilitation, Division of Juvenile Justice prior to its closure and as set forth in Sections 30807 to 30813, inclusive, of Title 9 of the California Code of Regulations. These guidelines shall be used only to determine a baseline confinement time for the ward and shall not be used or relied on to modify the wards confinement time in any manner other than as provided in this section. The court may, pending the adoption of Judicial Council guidelines, modify the initial baseline term with a deviation of plus or minus six months. The baseline term shall also be subject to modification in progress review hearings as described in subdivision (e).(c) In making its order of commitment, the court shall additionally set a maximum term of confinement for the ward in a secure youth treatment facility. The maximum term of confinement shall represent the longest term of confinement in a facility that the ward may serve subject to the following:(1) A ward committed to a secure youth treatment facility under this section shall not be held in secure confinement beyond 23 years of age, or two years from the date of the commitment, whichever occurs later. However, if the ward has been committed to a facility based on adjudication for an offense or offenses for which the ward, if convicted in adult criminal court, would face an aggregate sentence of seven or more years, the maximum period of confinement shall not exceed the ward attaining 25 years of age or two years from the date of the commitment, whichever occurs later.(2) The maximum period of confinement shall not exceed the middle term of imprisonment that can be imposed upon an adult convicted of the same offense or offenses.(d) (1) Within 30 days of making an order of commitment to a secure youth treatment facility, the court shall receive, review, and approve an individual rehabilitation plan that meets the requirements of paragraph (2) for the ward that has been submitted to the court by the probation department and any other agencies or individuals the court deems necessary for the development of the plan. The plan may be developed in consultation with a multidisciplinary team of youth service, mental and behavioral health, education, and other treatment providers who are convened to advise the court for this purpose. The prosecutor and the counsel for the ward may provide input in the development of the rehabilitation plan prior to the courts approval of the plan. The plan may be modified by the court based on all of the information provided.(2) An individual rehabilitation plan shall do all of the following:(A) Identify the wards needs in relation to treatment, education, and development, including any special needs the ward may have in relation to health, mental or emotional health, disabilities, or gender-related or other special needs.(B) Describe the programming, treatment, and education to be provided to the ward in relation to the identified needs during the commitment period.(C) Reflect, and be consistent with, the principles of trauma-informed, evidence-based, and culturally responsive care.(D) The ward and their family shall be given the opportunity to provide input regarding the needs of the ward during the identification process stated in subparagraph (A), and the opinions of the ward and the wards family shall be included in the rehabilitation plan report to the court.(e) (1) The court shall, during the term of commitment, schedule and hold a progress review hearing for the ward not less frequently than once every six months. In the review hearing, the court shall evaluate the wards progress in relation to the rehabilitation plan and shall determine whether the baseline term of confinement is to be modified. The court shall consider the recommendations of counsel, the probation department and any behavioral, educational, or other specialists having information relevant to the wards progress. At the conclusion of the review hearing, the court may order that the ward remain in custody for the remainder of the baseline term or may order that the wards baseline term be modified downward by a reduction of confinement time not to exceed six months. The court may additionally order that the ward be assigned to a less restrictive program, as provided in subdivision (f).(2) The wards confinement time, including time spent in a less restrictive program described in subdivision (f), shall not be extended beyond the baseline confinement term, or beyond a modified baseline term, for disciplinary infractions or other in-custody behaviors. Any infractions or behaviors shall be addressed by alternative means, which may include a system of graduated sanctions for disciplinary infractions adopted by the operator of a secure youth treatment facility and subject to any relevant state standards or regulations that apply to juvenile facilities generally.(3) The court shall, at the conclusion of the baseline confinement term, including any modified baseline term, hold a probation discharge hearing for the ward. For a ward who has been placed in a less restrictive program described in subdivision (f), the probation discharge hearing shall occur at the end of the period, or modified period, of placement that has been ordered by the court. At the discharge hearing, the court shall review the wards progress toward meeting the goals of the individual rehabilitation plan and the recommendations of counsel, the probation department, and any other agencies or individuals having information the court deems necessary. At the conclusion of the hearing, the court shall order that the ward be discharged to a period of probation supervision in the community under conditions approved by the court, unless the court finds that the ward constitutes a substantial risk of imminent harm to others in the community if released from custody. If the court so finds, the ward may be retained in custody in a secure youth treatment facility for up to one additional year of confinement, subject to the review hearing and probation discharge hearing provisions of this subdivision and subject to the maximum confinement provisions of subdivision (c).(4) If the ward is discharged to probation supervision, the court shall determine the reasonable conditions of probation that are suitable to meet the developmental needs and circumstances of the ward and to facilitate the wards successful reentry into the community. The court shall periodically review the wards progress under probation supervision and shall make any additional orders deemed necessary to modify the program of supervision in order to facilitate the provision of services or to otherwise support the wards successful reentry into the community. If the court finds that the ward has failed materially to comply with the reasonable orders of probation imposed by the court, the court may order that the ward be returned to a juvenile facility or to a placement described in subdivision (f) for a period not to exceed either the remainder of the baseline term, including any court-ordered modifications, or six months, whichever is longer, and in any case not to exceed the maximum confinement limits of subdivision (c).(f) (1) Upon a motion from the probation department or the ward, the court may order that the ward be transferred from a secure youth treatment facility to less restrictive program, such as a halfway house, a camp or ranch, or a community residential or nonresidential service program. The purpose of a less restrictive program is to facilitate the safe and successful reintegration of the ward into the community. The court shall consider the transfer request at the next scheduled treatment review hearing or at a separately scheduled hearing. The court shall consider the recommendations of the probation department on the proposed change in placement. Approval of the request for a less restrictive program shall be made only upon the courts determination that the ward has made substantial progress toward the goals of the individual rehabilitation plan described in subdivision (d) and that placement is consistent with the goals of youth rehabilitation and community safety. In making its determination, the court shall consider both of the following factors:(A) The wards overall progress in relation to the rehabilitation plan during the period of confinement in a secure youth treatment facility.(B) The programming and community transition services to be provided, or coordinated by the less restrictive program, including, but not limited to, any educational, vocational, counseling, housing, or other services made available through the program.(2) In any order transferring the ward from a secure youth treatment facility to a less restrictive program, the court may require the ward to observe any conditions of performance or compliance with the program that are reasonable and appropriate in the individual case and that are within the capacity of the ward to perform. The court shall set the length of time the ward is to remain in a less restrictive program, not to exceed the remainder of the baseline or modified baseline term, prior to a probation discharge hearing described in subdivision (e). If, after placement in a less restrictive program, the court determines that the ward has materially failed to comply with the court-ordered conditions of placement in the program, the court may modify the terms and conditions of placement in the program or may order the ward to be returned to a secure youth treatment facility for the remainder of the baseline term, or modified baseline term, and subject to further periodic review hearings, as provided in subdivision (e) and to the maximum confinement provisions of subdivision (c).(g) A secure youth treatment facility, as described in this section, shall meet the following criteria:(1) The facility shall be a secure facility that is operated, utilized, or accessed by the county of commitment to provide appropriate programming, treatment, and education for wards having been adjudicated for the offenses specified in subdivision (a).(2) The facility may be a stand-alone facility, such as a probation camp or other facility operated under contract with the county, or with another county, or may be a unit or portion of an existing county juvenile facility, including a juvenile hall or probation camp, that is configured and programmed to serve the population described in subdivision (a) and is in compliance with the standards described in paragraph (3).(3) The Board of State and Community Corrections shall by July 1, 2023, review existing juvenile facility standards and modify or add standards for the establishment, design, security, programming and education, and staffing of any facility that is utilized or accessed by the court as a secure youth treatment facility under the provisions of this section. The standards shall be developed by the board with the coordination and concurrence of the Office of Youth and Community Restoration established by Section 2200. The standards shall specify how the facility may be used to serve or to separate juveniles, other than juveniles described in subdivision (a) serving baseline confinement terms, who may also be detained in or committed to the facility or to some portion of the facility. Pending the final adoption of these modified standards, a secure youth treatment facility shall comply with applicable minimum standards for juvenile facilities in Title 15 and Title 24 of the California Code of Regulations.(4) A county proposing to establish a secure youth treatment facility for wards described in subdivision (a) shall notify the Board of State and Community Corrections of the operation of the facility and shall submit a description of the facility to the board in a format designated by the board. Commencing July 1, 2022, the Board of State and Community Corrections shall conduct a biennial inspection of each secure youth treatment facility that was used for the confinement of juveniles placed pursuant to subdivision (a) during the preceding calendar year. To the extent new standards are not yet in place, the board shall utilize the standards in existing regulations.(5) In lieu of establishing its own secure youth treatment facility, a county may contract with another county having a secure youth treatment facility to accept commitments of wards described in subdivision (a).(6) A county may establish a secure youth treatment facility to serve as a regional center for commitment of juveniles by one or more other counties on a contract payment basis.(h) (1) By July 1, 2023, the Judicial Council shall develop and adopt a matrix of offense-based classifications to be applied by the juvenile courts in all counties in setting the baseline confinement terms described in subdivision (b). Each classification level or category shall specify a set of offenses within the level or category that is linked to a standard baseline term of years to be assigned to youth, based on their most serious recent adjudicated offense, who are committed to a secure youth treatment facility as provided in this section. The classification matrix may provide for upward or downward deviations from the baseline term and may also provide for a system of positive incentives or credits for time served. In developing the matrix, the Judicial Council shall be advised by a working group of stakeholders, which shall include representatives from prosecution, defense, probation, behavioral health, youth service providers, youth formerly incarcerated in the Division of Juvenile Justice, and youth advocacy and other stakeholders and organizations having relevant expertise or information on dispositions and sentencing of youth in the juvenile justice system. In the development process, the Judicial Council shall also examine and take into account youth sentencing and length-of-stay guidelines or practices adopted by other states or recommended by organizations, academic institutions, or individuals having expertise or having conducted relevant research on dispositions and sentencing of youth in the juvenile justice system.(2) Upon final adoption by the Judicial Council, the matrix of offense-based classifications shall be applied in a standardized manner by juvenile courts in each county in cases where the court is required to set a baseline confinement term under subdivision (b) for wards who are committed to a secure youth treatment facility. The discharge consideration date guidelines of the Division of Juvenile Justice that were applied on an interim basis, as provided in subdivision (b), shall not thereafter be utilized to determine baseline confinement terms for wards who are committed to a secure youth treatment facility under the provisions of this section.(i) A court shall not commit a juvenile to any juvenile facility, including a secure youth treatment facility as defined in this section, for a period that exceeds the middle term of imprisonment that could be imposed upon an adult convicted of the same offense or offenses.875.5. (a) It is the intent of the Legislature to apply Article 6 (commencing with Section 1800) of Chapter 1 of Division 2.5, governing extended detention of persons physically dangerous to the public who are served by the Division of Juvenile Justice, to persons physically dangerous to the public who are committed to a secure treatment facility pursuant to Section 875, pending development of a specific commitment process for realigned persons pursuant to subdivision (b).(b) The Governor and the Legislature shall work with stakeholders, including, but not limited to, the Division of Juvenile Justice, the State Department of State Hospitals, the Chief Probation Officers of California, the California State Association of Counties, advocacy organizations representing youth, and the Judicial Council to develop language by July 1, 2021, to replace the procedures specified in Section 876 with a commitment process that ensures the treatment capacity, legal protections, and court procedures are appropriate to successfully serve persons realigned from the Division of Juvenile Justice to the counties by Senate Bill 823 (Chapter 337, Statutes of 2020).(c) It is the intent of the Legislature to enact legislation that would, effective July 1, 2022, extend detention of persons physically dangerous to the public who are in a secure youth treatment facility pursuant to the commitment process developed in subdivision (b).876. (a) If a probation department determines that the discharge of a person confined in a secure youth treatment facility from the control of the court at the time required by Section 875 would be physically dangerous to the public because of the persons mental or physical condition, disorder, or other problem that causes the person to have serious difficulty controlling their dangerous behavior, the department shall request the prosecuting attorney to petition the committing court for an order directing that the person remain subject to the control of the department beyond that time. The petition shall be filed at least 90 days before the time of discharge otherwise required. The petition shall be accompanied by a written statement of the facts upon which the department bases its opinion that discharge at the time stated would be physically dangerous to the public, but the petition may not be dismissed and an order may not be denied merely because of technical defects in the application.(b) The prosecuting attorney shall promptly notify the probation department of a decision not to file a petition.(c) If a petition is filed with the court and, upon review, the court determines that the petition, on its face, supports a finding of probable cause, the court shall order that a hearing be held.The court shall provide notification of the hearing to the person whose liberty is involved and, if the person is a minor, the minors parent or guardian, if the minors parent or guardian can be reached, and, if not, the court shall appoint a person to act in the place of the parent or guardian and shall afford the person an opportunity to appear at the hearing with the aid of counsel and the right to cross-examine experts or other witnesses upon whose information, opinion, or testimony the petition is based. The court shall inform the person named in the petition of their right of process to compel attendance of relevant witnesses and the production of relevant evidence. When the person is unable to provide their own counsel, the court shall appoint counsel to represent them. The probable cause hearing shall be held within 10 calendar days after the date the order is issued pursuant to this subdivision unless the person named in the petition waives this time.(d) At the probable cause hearing, the court shall receive evidence and determine whether there is probable cause to believe that discharge of the person would be physically dangerous to the public because of the persons mental or physical condition, disorder, or other problem that causes the person to have serious difficulty controlling dangerous behavior. If the court determines there is not probable cause, the court shall dismiss the petition and the person shall be discharged from the control of a secure youth treatment facility at the time required by Section 875, as applicable. If the court determines there is probable cause, the court shall order that a trial be conducted to determine whether the person is physically dangerous to the public because of their mental or physical condition, disorder, or other problem.(e) If a trial is ordered, the trial shall be by jury unless the right to a jury trial is personally waived by the person, after the person has been fully advised of the constitutional rights being waived, and by the prosecuting attorney, in which case trial shall be by the court. If the jury is not waived, the court shall cause a jury to be summoned and to be in attendance at a date stated, not less than 4 days nor more than 30 days from the date of the order for trial, unless the person named in the petition waives time. The court shall submit to the jury, or, at a court trial, the court shall answer, the following question: Is the person physically dangerous to the public because of a mental or physical condition, disorder, or other problem that causes the person to have serious difficulty controlling their dangerous behavior? The courts previous order entered pursuant to this section shall not be read to the jury, nor alluded to in the trial. The person shall be entitled to all rights guaranteed under the federal and state constitutions in criminal proceedings. A unanimous jury verdict shall be required in any jury trial. As to either a court or a jury trial, the standard of proof shall be that of proof beyond a reasonable doubt.(f) If an order for continued detention is made pursuant to this section, the control of the department over the person shall continue, subject to the provisions of this article, but, unless the person is previously discharged as provided in Section 875, the department shall, within two years after the date of that order in the case of persons committed by the juvenile court, or within two years after the date of that order in the case of persons committed after conviction in criminal proceedings, file a new application for continued detention in accordance with the provisions of this section if continued detention is deemed necessary. These applications may be repeated at intervals as often as in the opinion of the department may be necessary for the protection of the public, except that the court shall have the power, in order to protect other persons in the custody of probation to refer the person for evaluation for civil commitment or to transfer the custody of any person over 25 years of age to the county adult probation authorities for placement in an appropriate institution. Each person shall be discharged from the control of the probation department at the termination of the period stated in this section unless the probation department has filed a new application and the court has made a new order for continued detention as provided above in this section.(g) An order of the committing court made pursuant to this section is appealable by the person whose liberty is involved in the same manner as a judgment in a criminal case. The appellate court may affirm the order of the lower court, or modify it, or reverse it and order the appellant to be discharged. Pending appeal, the appellant shall remain under the control of the probation department.
562	369
563		-	SEC. 10. Section 17131.17 is added to the Revenue and Taxation Code, to read:17131.17. (a) For taxable years beginning on or after January 1, 2021, and before January 1, 2026, gross income does not include a bill credit or credits received by a customer from a utility applicant under the California Arrearage Payment Program (CAPP), pursuant to the California Arrearage Payment Program Under the American Rescue Plan Act of 2021 (Article 12 (commencing with Section ~~16429.5~~) of Chapter 2 of Part 2 of Division ~~4 of Title~~ 2 of the ~~Government Code).(b) This section shall remain in effect only until December 1, 2026,~~ and ~~as of that date is repealed.~~
	370	+	SEC. 12. Article 23.5 (commencing with Section 875) is added to Chapter 2 of Part 1 of Division 2 of the Welfare and Institutions Code, to read:
564	371
565		-	SEC. 10. ~~Section 17131.17 is added to the Revenue and Taxation Code, to read:~~
	372	+	### SEC. 12.
566	373
567		-	~~### SEC.~~ 10.
	374	+	Article 23.5. Secure Youth Treatment Facilities875. (a) In addition to the types of treatment specified in Sections 727 and 730, commencing July 1, 2021, the court may order that a ward who is 14 years of age or older, be committed to a secure youth treatment facility for a period of confinement described in subdivision (b) if the ward meets the following criteria:(1) The juvenile is adjudicated and found to be a ward of the court based on an offense listed in subdivision (b) of Section 707.(2) The adjudication described in paragraph (1) is the most recent offense for which the juvenile has been adjudicated.(3) The court has made a finding on the record that a less restrictive, alternative disposition for the ward is unsuitable. In determining this, the court shall consider all relevant and material evidence, including the recommendations of counsel, the probation department, and any other agency or individual designated by the court to advise on the appropriate disposition of the case. The court shall additionally make its determination based on all of the following criteria:(A) The severity of the offense or offenses for which the ward has been most recently adjudicated, including the wards role in the offense, the wards behavior, and harm done to victims.(B) The wards previous delinquent history, including the adequacy and success of previous attempts by the juvenile court to rehabilitate the ward.(C) Whether the programming, treatment, and education offered and provided in a secure youth treatment facility is appropriate to meet the treatment and security needs of the ward.(D) Whether the goals of rehabilitation and community safety can be met by assigning the ward to an alternative, less restrictive disposition that is available to the court.(E) The wards age, developmental maturity, mental and emotional health, sexual orientation, gender identity and expression, and any disabilities or special needs affecting the safety or suitability of committing the ward to a term of confinement in a secure youth treatment facility.(b) In making its order of commitment for a ward, the court shall set a baseline term of confinement for the ward that is based on the most serious recent offense for which the ward has been adjudicated. The baseline term of confinement shall represent the time in custody necessary to meet the developmental and treatment needs of the ward and to prepare the ward for discharge to a period of probation supervision in the community. The baseline term of confinement for the ward shall be determined according to offense-based classifications that are approved by the Judicial Council as described in subdivision (h). Pending the development and adoption of offense-based classifications by the Judicial Council, the court shall set a baseline term of confinement for the ward utilizing the discharge consideration date guidelines applied by the Department of Corrections and Rehabilitation, Division of Juvenile Justice prior to its closure and as set forth in Sections 30807 to 30813, inclusive, of Title 9 of the California Code of Regulations. These guidelines shall be used only to determine a baseline confinement time for the ward and shall not be used or relied on to modify the wards confinement time in any manner other than as provided in this section. The court may, pending the adoption of Judicial Council guidelines, modify the initial baseline term with a deviation of plus or minus six months. The baseline term shall also be subject to modification in progress review hearings as described in subdivision (e).(c) In making its order of commitment, the court shall additionally set a maximum term of confinement for the ward in a secure youth treatment facility. The maximum term of confinement shall represent the longest term of confinement in a facility that the ward may serve subject to the following:(1) A ward committed to a secure youth treatment facility under this section shall not be held in secure confinement beyond 23 years of age, or two years from the date of the commitment, whichever occurs later. However, if the ward has been committed to a facility based on adjudication for an offense or offenses for which the ward, if convicted in adult criminal court, would face an aggregate sentence of seven or more years, the maximum period of confinement shall not exceed the ward attaining 25 years of age or two years from the date of the commitment, whichever occurs later.(2) The maximum period of confinement shall not exceed the middle term of imprisonment that can be imposed upon an adult convicted of the same offense or offenses.(d) (1) Within 30 days of making an order of commitment to a secure youth treatment facility, the court shall receive, review, and approve an individual rehabilitation plan that meets the requirements of paragraph (2) for the ward that has been submitted to the court by the probation department and any other agencies or individuals the court deems necessary for the development of the plan. The plan may be developed in consultation with a multidisciplinary team of youth service, mental and behavioral health, education, and other treatment providers who are convened to advise the court for this purpose. The prosecutor and the counsel for the ward may provide input in the development of the rehabilitation plan prior to the courts approval of the plan. The plan may be modified by the court based on all of the information provided.(2) An individual rehabilitation plan shall do all of the following:(A) Identify the wards needs in relation to treatment, education, and development, including any special needs the ward may have in relation to health, mental or emotional health, disabilities, or gender-related or other special needs.(B) Describe the programming, treatment, and education to be provided to the ward in relation to the identified needs during the commitment period.(C) Reflect, and be consistent with, the principles of trauma-informed, evidence-based, and culturally responsive care.(D) The ward and their family shall be given the opportunity to provide input regarding the needs of the ward during the identification process stated in subparagraph (A), and the opinions of the ward and the wards family shall be included in the rehabilitation plan report to the court.(e) (1) The court shall, during the term of commitment, schedule and hold a progress review hearing for the ward not less frequently than once every six months. In the review hearing, the court shall evaluate the wards progress in relation to the rehabilitation plan and shall determine whether the baseline term of confinement is to be modified. The court shall consider the recommendations of counsel, the probation department and any behavioral, educational, or other specialists having information relevant to the wards progress. At the conclusion of the review hearing, the court may order that the ward remain in custody for the remainder of the baseline term or may order that the wards baseline term be modified downward by a reduction of confinement time not to exceed six months. The court may additionally order that the ward be assigned to a less restrictive program, as provided in subdivision (f).(2) The wards confinement time, including time spent in a less restrictive program described in subdivision (f), shall not be extended beyond the baseline confinement term, or beyond a modified baseline term, for disciplinary infractions or other in-custody behaviors. Any infractions or behaviors shall be addressed by alternative means, which may include a system of graduated sanctions for disciplinary infractions adopted by the operator of a secure youth treatment facility and subject to any relevant state standards or regulations that apply to juvenile facilities generally.(3) The court shall, at the conclusion of the baseline confinement term, including any modified baseline term, hold a probation discharge hearing for the ward. For a ward who has been placed in a less restrictive program described in subdivision (f), the probation discharge hearing shall occur at the end of the period, or modified period, of placement that has been ordered by the court. At the discharge hearing, the court shall review the wards progress toward meeting the goals of the individual rehabilitation plan and the recommendations of counsel, the probation department, and any other agencies or individuals having information the court deems necessary. At the conclusion of the hearing, the court shall order that the ward be discharged to a period of probation supervision in the community under conditions approved by the court, unless the court finds that the ward constitutes a substantial risk of imminent harm to others in the community if released from custody. If the court so finds, the ward may be retained in custody in a secure youth treatment facility for up to one additional year of confinement, subject to the review hearing and probation discharge hearing provisions of this subdivision and subject to the maximum confinement provisions of subdivision (c).(4) If the ward is discharged to probation supervision, the court shall determine the reasonable conditions of probation that are suitable to meet the developmental needs and circumstances of the ward and to facilitate the wards successful reentry into the community. The court shall periodically review the wards progress under probation supervision and shall make any additional orders deemed necessary to modify the program of supervision in order to facilitate the provision of services or to otherwise support the wards successful reentry into the community. If the court finds that the ward has failed materially to comply with the reasonable orders of probation imposed by the court, the court may order that the ward be returned to a juvenile facility or to a placement described in subdivision (f) for a period not to exceed either the remainder of the baseline term, including any court-ordered modifications, or six months, whichever is longer, and in any case not to exceed the maximum confinement limits of subdivision (c).(f) (1) Upon a motion from the probation department or the ward, the court may order that the ward be transferred from a secure youth treatment facility to less restrictive program, such as a halfway house, a camp or ranch, or a community residential or nonresidential service program. The purpose of a less restrictive program is to facilitate the safe and successful reintegration of the ward into the community. The court shall consider the transfer request at the next scheduled treatment review hearing or at a separately scheduled hearing. The court shall consider the recommendations of the probation department on the proposed change in placement. Approval of the request for a less restrictive program shall be made only upon the courts determination that the ward has made substantial progress toward the goals of the individual rehabilitation plan described in subdivision (d) and that placement is consistent with the goals of youth rehabilitation and community safety. In making its determination, the court shall consider both of the following factors:(A) The wards overall progress in relation to the rehabilitation plan during the period of confinement in a secure youth treatment facility.(B) The programming and community transition services to be provided, or coordinated by the less restrictive program, including, but not limited to, any educational, vocational, counseling, housing, or other services made available through the program.(2) In any order transferring the ward from a secure youth treatment facility to a less restrictive program, the court may require the ward to observe any conditions of performance or compliance with the program that are reasonable and appropriate in the individual case and that are within the capacity of the ward to perform. The court shall set the length of time the ward is to remain in a less restrictive program, not to exceed the remainder of the baseline or modified baseline term, prior to a probation discharge hearing described in subdivision (e). If, after placement in a less restrictive program, the court determines that the ward has materially failed to comply with the court-ordered conditions of placement in the program, the court may modify the terms and conditions of placement in the program or may order the ward to be returned to a secure youth treatment facility for the remainder of the baseline term, or modified baseline term, and subject to further periodic review hearings, as provided in subdivision (e) and to the maximum confinement provisions of subdivision (c).(g) A secure youth treatment facility, as described in this section, shall meet the following criteria:(1) The facility shall be a secure facility that is operated, utilized, or accessed by the county of commitment to provide appropriate programming, treatment, and education for wards having been adjudicated for the offenses specified in subdivision (a).(2) The facility may be a stand-alone facility, such as a probation camp or other facility operated under contract with the county, or with another county, or may be a unit or portion of an existing county juvenile facility, including a juvenile hall or probation camp, that is configured and programmed to serve the population described in subdivision (a) and is in compliance with the standards described in paragraph (3).(3) The Board of State and Community Corrections shall by July 1, 2023, review existing juvenile facility standards and modify or add standards for the establishment, design, security, programming and education, and staffing of any facility that is utilized or accessed by the court as a secure youth treatment facility under the provisions of this section. The standards shall be developed by the board with the coordination and concurrence of the Office of Youth and Community Restoration established by Section 2200. The standards shall specify how the facility may be used to serve or to separate juveniles, other than juveniles described in subdivision (a) serving baseline confinement terms, who may also be detained in or committed to the facility or to some portion of the facility. Pending the final adoption of these modified standards, a secure youth treatment facility shall comply with applicable minimum standards for juvenile facilities in Title 15 and Title 24 of the California Code of Regulations.(4) A county proposing to establish a secure youth treatment facility for wards described in subdivision (a) shall notify the Board of State and Community Corrections of the operation of the facility and shall submit a description of the facility to the board in a format designated by the board. Commencing July 1, 2022, the Board of State and Community Corrections shall conduct a biennial inspection of each secure youth treatment facility that was used for the confinement of juveniles placed pursuant to subdivision (a) during the preceding calendar year. To the extent new standards are not yet in place, the board shall utilize the standards in existing regulations.(5) In lieu of establishing its own secure youth treatment facility, a county may contract with another county having a secure youth treatment facility to accept commitments of wards described in subdivision (a).(6) A county may establish a secure youth treatment facility to serve as a regional center for commitment of juveniles by one or more other counties on a contract payment basis.(h) (1) By July 1, 2023, the Judicial Council shall develop and adopt a matrix of offense-based classifications to be applied by the juvenile courts in all counties in setting the baseline confinement terms described in subdivision (b). Each classification level or category shall specify a set of offenses within the level or category that is linked to a standard baseline term of years to be assigned to youth, based on their most serious recent adjudicated offense, who are committed to a secure youth treatment facility as provided in this section. The classification matrix may provide for upward or downward deviations from the baseline term and may also provide for a system of positive incentives or credits for time served. In developing the matrix, the Judicial Council shall be advised by a working group of stakeholders, which shall include representatives from prosecution, defense, probation, behavioral health, youth service providers, youth formerly incarcerated in the Division of Juvenile Justice, and youth advocacy and other stakeholders and organizations having relevant expertise or information on dispositions and sentencing of youth in the juvenile justice system. In the development process, the Judicial Council shall also examine and take into account youth sentencing and length-of-stay guidelines or practices adopted by other states or recommended by organizations, academic institutions, or individuals having expertise or having conducted relevant research on dispositions and sentencing of youth in the juvenile justice system.(2) Upon final adoption by the Judicial Council, the matrix of offense-based classifications shall be applied in a standardized manner by juvenile courts in each county in cases where the court is required to set a baseline confinement term under subdivision (b) for wards who are committed to a secure youth treatment facility. The discharge consideration date guidelines of the Division of Juvenile Justice that were applied on an interim basis, as provided in subdivision (b), shall not thereafter be utilized to determine baseline confinement terms for wards who are committed to a secure youth treatment facility under the provisions of this section.(i) A court shall not commit a juvenile to any juvenile facility, including a secure youth treatment facility as defined in this section, for a period that exceeds the middle term of imprisonment that could be imposed upon an adult convicted of the same offense or offenses.875.5. (a) It is the intent of the Legislature to apply Article 6 (commencing with Section 1800) of Chapter 1 of Division 2.5, governing extended detention of persons physically dangerous to the public who are served by the Division of Juvenile Justice, to persons physically dangerous to the public who are committed to a secure treatment facility pursuant to Section 875, pending development of a specific commitment process for realigned persons pursuant to subdivision (b).(b) The Governor and the Legislature shall work with stakeholders, including, but not limited to, the Division of Juvenile Justice, the State Department of State Hospitals, the Chief Probation Officers of California, the California State Association of Counties, advocacy organizations representing youth, and the Judicial Council to develop language by July 1, 2021, to replace the procedures specified in Section 876 with a commitment process that ensures the treatment capacity, legal protections, and court procedures are appropriate to successfully serve persons realigned from the Division of Juvenile Justice to the counties by Senate Bill 823 (Chapter 337, Statutes of 2020).(c) It is the intent of the Legislature to enact legislation that would, effective July 1, 2022, extend detention of persons physically dangerous to the public who are in a secure youth treatment facility pursuant to the commitment process developed in subdivision (b).876. (a) If a probation department determines that the discharge of a person confined in a secure youth treatment facility from the control of the court at the time required by Section 875 would be physically dangerous to the public because of the persons mental or physical condition, disorder, or other problem that causes the person to have serious difficulty controlling their dangerous behavior, the department shall request the prosecuting attorney to petition the committing court for an order directing that the person remain subject to the control of the department beyond that time. The petition shall be filed at least 90 days before the time of discharge otherwise required. The petition shall be accompanied by a written statement of the facts upon which the department bases its opinion that discharge at the time stated would be physically dangerous to the public, but the petition may not be dismissed and an order may not be denied merely because of technical defects in the application.(b) The prosecuting attorney shall promptly notify the probation department of a decision not to file a petition.(c) If a petition is filed with the court and, upon review, the court determines that the petition, on its face, supports a finding of probable cause, the court shall order that a hearing be held.The court shall provide notification of the hearing to the person whose liberty is involved and, if the person is a minor, the minors parent or guardian, if the minors parent or guardian can be reached, and, if not, the court shall appoint a person to act in the place of the parent or guardian and shall afford the person an opportunity to appear at the hearing with the aid of counsel and the right to cross-examine experts or other witnesses upon whose information, opinion, or testimony the petition is based. The court shall inform the person named in the petition of their right of process to compel attendance of relevant witnesses and the production of relevant evidence. When the person is unable to provide their own counsel, the court shall appoint counsel to represent them. The probable cause hearing shall be held within 10 calendar days after the date the order is issued pursuant to this subdivision unless the person named in the petition waives this time.(d) At the probable cause hearing, the court shall receive evidence and determine whether there is probable cause to believe that discharge of the person would be physically dangerous to the public because of the persons mental or physical condition, disorder, or other problem that causes the person to have serious difficulty controlling dangerous behavior. If the court determines there is not probable cause, the court shall dismiss the petition and the person shall be discharged from the control of a secure youth treatment facility at the time required by Section 875, as applicable. If the court determines there is probable cause, the court shall order that a trial be conducted to determine whether the person is physically dangerous to the public because of their mental or physical condition, disorder, or other problem.(e) If a trial is ordered, the trial shall be by jury unless the right to a jury trial is personally waived by the person, after the person has been fully advised of the constitutional rights being waived, and by the prosecuting attorney, in which case trial shall be by the court. If the jury is not waived, the court shall cause a jury to be summoned and to be in attendance at a date stated, not less than 4 days nor more than 30 days from the date of the order for trial, unless the person named in the petition waives time. The court shall submit to the jury, or, at a court trial, the court shall answer, the following question: Is the person physically dangerous to the public because of a mental or physical condition, disorder, or other problem that causes the person to have serious difficulty controlling their dangerous behavior? The courts previous order entered pursuant to this section shall not be read to the jury, nor alluded to in the trial. The person shall be entitled to all rights guaranteed under the federal and state constitutions in criminal proceedings. A unanimous jury verdict shall be required in any jury trial. As to either a court or a jury trial, the standard of proof shall be that of proof beyond a reasonable doubt.(f) If an order for continued detention is made pursuant to this section, the control of the department over the person shall continue, subject to the provisions of this article, but, unless the person is previously discharged as provided in Section 875, the department shall, within two years after the date of that order in the case of persons committed by the juvenile court, or within two years after the date of that order in the case of persons committed after conviction in criminal proceedings, file a new application for continued detention in accordance with the provisions of this section if continued detention is deemed necessary. These applications may be repeated at intervals as often as in the opinion of the department may be necessary for the protection of the public, except that the court shall have the power, in order to protect other persons in the custody of probation to refer the person for evaluation for civil commitment or to transfer the custody of any person over 25 years of age to the county adult probation authorities for placement in an appropriate institution. Each person shall be discharged from the control of the probation department at the termination of the period stated in this section unless the probation department has filed a new application and the court has made a new order for continued detention as provided above in this section.(g) An order of the committing court made pursuant to this section is appealable by the person whose liberty is involved in the same manner as a judgment in a criminal case. The appellate court may affirm the order of the lower court, or modify it, or reverse it and order the appellant to be discharged. Pending appeal, the appellant shall remain under the control of the probation department.
568	375
569		-	~~17131.17~~. (a) For taxable years beginning on or after January 1, 2021, and before January 1, 2026, gross income does not include a bill credit or credits received by a customer from a utility applicant under the California Arrearage Payment Program (CAPP), pursuant to the California Arrearage Payment Program Under the American Rescue Plan Act of 2021 (Article 12 (commencing with Section 16429.5) of Chapter 2 of Part 2 of Division 4 of Title 2 of the Government Code).(b) This section shall remain in ~~effect~~ only ~~until December~~ 1~~, 2026, and~~ as of that date is ~~repealed.~~
	376	+	Article 23.5. Secure Youth Treatment Facilities875. (a) In addition to the types of treatment specified in Sections 727 and 730, commencing July 1, 2021, the court may order that a ward who is 14 years of age or older, be committed to a secure youth treatment facility for a period of confinement described in subdivision (b) if the ward meets the following criteria:(1) The juvenile is adjudicated and found to be a ward of the court based on an offense listed in subdivision (b) of Section 707.(2) The adjudication described in paragraph (1) is the most recent offense for which the juvenile has been adjudicated.(3) The court has made a finding on the record that a less restrictive, alternative disposition for the ward is unsuitable. In determining this, the court shall consider all relevant and material evidence, including the recommendations of counsel, the probation department, and any other agency or individual designated by the court to advise on the appropriate disposition of the case. The court shall additionally make its determination based on all of the following criteria:(A) The severity of the offense or offenses for which the ward has been most recently adjudicated, including the wards role in the offense, the wards behavior, and harm done to victims.(B) The wards previous delinquent history, including the adequacy and success of previous attempts by the juvenile court to rehabilitate the ward.(C) Whether the programming, treatment, and education offered and provided in a secure youth treatment facility is appropriate to meet the treatment and security needs of the ward.(D) Whether the goals of rehabilitation and community safety can be met by assigning the ward to an alternative, less restrictive disposition that is available to the court.(E) The wards age, developmental maturity, mental and emotional health, sexual orientation, gender identity and expression, and any disabilities or special needs affecting the safety or suitability of committing the ward to a term of confinement in a secure youth treatment facility.(b) In making its order of commitment for a ward, the court shall set a baseline term of confinement for the ward that is based on the most serious recent offense for which the ward has been adjudicated. The baseline term of confinement shall represent the time in custody necessary to meet the developmental and treatment needs of the ward and to prepare the ward for discharge to a period of probation supervision in the community. The baseline term of confinement for the ward shall be determined according to offense-based classifications that are approved by the Judicial Council as described in subdivision (h). Pending the development and adoption of offense-based classifications by the Judicial Council, the court shall set a baseline term of confinement for the ward utilizing the discharge consideration date guidelines applied by the Department of Corrections and Rehabilitation, Division of Juvenile Justice prior to its closure and as set forth in Sections 30807 to 30813, inclusive, of Title 9 of the California Code of Regulations. These guidelines shall be used only to determine a baseline confinement time for the ward and shall not be used or relied on to modify the wards confinement time in any manner other than as provided in this section. The court may, pending the adoption of Judicial Council guidelines, modify the initial baseline term with a deviation of plus or minus six months. The baseline term shall also be subject to modification in progress review hearings as described in subdivision (e).(c) In making its order of commitment, the court shall additionally set a maximum term of confinement for the ward in a secure youth treatment facility. The maximum term of confinement shall represent the longest term of confinement in a facility that the ward may serve subject to the following:(1) A ward committed to a secure youth treatment facility under this section shall not be held in secure confinement beyond 23 years of age, or two years from the date of the commitment, whichever occurs later. However, if the ward has been committed to a facility based on adjudication for an offense or offenses for which the ward, if convicted in adult criminal court, would face an aggregate sentence of seven or more years, the maximum period of confinement shall not exceed the ward attaining 25 years of age or two years from the date of the commitment, whichever occurs later.(2) The maximum period of confinement shall not exceed the middle term of imprisonment that can be imposed upon an adult convicted of the same offense or offenses.(d) (1) Within 30 days of making an order of commitment to a secure youth treatment facility, the court shall receive, review, and approve an individual rehabilitation plan that meets the requirements of paragraph (2) for the ward that has been submitted to the court by the probation department and any other agencies or individuals the court deems necessary for the development of the plan. The plan may be developed in consultation with a multidisciplinary team of youth service, mental and behavioral health, education, and other treatment providers who are convened to advise the court for this purpose. The prosecutor and the counsel for the ward may provide input in the development of the rehabilitation plan prior to the courts approval of the plan. The plan may be modified by the court based on all of the information provided.(2) An individual rehabilitation plan shall do all of the following:(A) Identify the wards needs in relation to treatment, education, and development, including any special needs the ward may have in relation to health, mental or emotional health, disabilities, or gender-related or other special needs.(B) Describe the programming, treatment, and education to be provided to the ward in relation to the identified needs during the commitment period.(C) Reflect, and be consistent with, the principles of trauma-informed, evidence-based, and culturally responsive care.(D) The ward and their family shall be given the opportunity to provide input regarding the needs of the ward during the identification process stated in subparagraph (A), and the opinions of the ward and the wards family shall be included in the rehabilitation plan report to the court.(e) (1) The court shall, during the term of commitment, schedule and hold a progress review hearing for the ward not less frequently than once every six months. In the review hearing, the court shall evaluate the wards progress in relation to the rehabilitation plan and shall determine whether the baseline term of confinement is to be modified. The court shall consider the recommendations of counsel, the probation department and any behavioral, educational, or other specialists having information relevant to the wards progress. At the conclusion of the review hearing, the court may order that the ward remain in custody for the remainder of the baseline term or may order that the wards baseline term be modified downward by a reduction of confinement time not to exceed six months. The court may additionally order that the ward be assigned to a less restrictive program, as provided in subdivision (f).(2) The wards confinement time, including time spent in a less restrictive program described in subdivision (f), shall not be extended beyond the baseline confinement term, or beyond a modified baseline term, for disciplinary infractions or other in-custody behaviors. Any infractions or behaviors shall be addressed by alternative means, which may include a system of graduated sanctions for disciplinary infractions adopted by the operator of a secure youth treatment facility and subject to any relevant state standards or regulations that apply to juvenile facilities generally.(3) The court shall, at the conclusion of the baseline confinement term, including any modified baseline term, hold a probation discharge hearing for the ward. For a ward who has been placed in a less restrictive program described in subdivision (f), the probation discharge hearing shall occur at the end of the period, or modified period, of placement that has been ordered by the court. At the discharge hearing, the court shall review the wards progress toward meeting the goals of the individual rehabilitation plan and the recommendations of counsel, the probation department, and any other agencies or individuals having information the court deems necessary. At the conclusion of the hearing, the court shall order that the ward be discharged to a period of probation supervision in the community under conditions approved by the court, unless the court finds that the ward constitutes a substantial risk of imminent harm to others in the community if released from custody. If the court so finds, the ward may be retained in custody in a secure youth treatment facility for up to one additional year of confinement, subject to the review hearing and probation discharge hearing provisions of this subdivision and subject to the maximum confinement provisions of subdivision (c).(4) If the ward is discharged to probation supervision, the court shall determine the reasonable conditions of probation that are suitable to meet the developmental needs and circumstances of the ward and to facilitate the wards successful reentry into the community. The court shall periodically review the wards progress under probation supervision and shall make any additional orders deemed necessary to modify the program of supervision in order to facilitate the provision of services or to otherwise support the wards successful reentry into the community. If the court finds that the ward has failed materially to comply with the reasonable orders of probation imposed by the court, the court may order that the ward be returned to a juvenile facility or to a placement described in subdivision (f) for a period not to exceed either the remainder of the baseline term, including any court-ordered modifications, or six months, whichever is longer, and in any case not to exceed the maximum confinement limits of subdivision (c).(f) (1) Upon a motion from the probation department or the ward, the court may order that the ward be transferred from a secure youth treatment facility to less restrictive program, such as a halfway house, a camp or ranch, or a community residential or nonresidential service program. The purpose of a less restrictive program is to facilitate the safe and successful reintegration of the ward into the community. The court shall consider the transfer request at the next scheduled treatment review hearing or at a separately scheduled hearing. The court shall consider the recommendations of the probation department on the proposed change in placement. Approval of the request for a less restrictive program shall be made only upon the courts determination that the ward has made substantial progress toward the goals of the individual rehabilitation plan described in subdivision (d) and that placement is consistent with the goals of youth rehabilitation and community safety. In making its determination, the court shall consider both of the following factors:(A) The wards overall progress in relation to the rehabilitation plan during the period of confinement in a secure youth treatment facility.(B) The programming and community transition services to be provided, or coordinated by the less restrictive program, including, but not limited to, any educational, vocational, counseling, housing, or other services made available through the program.(2) In any order transferring the ward from a secure youth treatment facility to a less restrictive program, the court may require the ward to observe any conditions of performance or compliance with the program that are reasonable and appropriate in the individual case and that are within the capacity of the ward to perform. The court shall set the length of time the ward is to remain in a less restrictive program, not to exceed the remainder of the baseline or modified baseline term, prior to a probation discharge hearing described in subdivision (e). If, after placement in a less restrictive program, the court determines that the ward has materially failed to comply with the court-ordered conditions of placement in the program, the court may modify the terms and conditions of placement in the program or may order the ward to be returned to a secure youth treatment facility for the remainder of the baseline term, or modified baseline term, and subject to further periodic review hearings, as provided in subdivision (e) and to the maximum confinement provisions of subdivision (c).(g) A secure youth treatment facility, as described in this section, shall meet the following criteria:(1) The facility shall be a secure facility that is operated, utilized, or accessed by the county of commitment to provide appropriate programming, treatment, and education for wards having been adjudicated for the offenses specified in subdivision (a).(2) The facility may be a stand-alone facility, such as a probation camp or other facility operated under contract with the county, or with another county, or may be a unit or portion of an existing county juvenile facility, including a juvenile hall or probation camp, that is configured and programmed to serve the population described in subdivision (a) and is in compliance with the standards described in paragraph (3).(3) The Board of State and Community Corrections shall by July 1, 2023, review existing juvenile facility standards and modify or add standards for the establishment, design, security, programming and education, and staffing of any facility that is utilized or accessed by the court as a secure youth treatment facility under the provisions of this section. The standards shall be developed by the board with the coordination and concurrence of the Office of Youth and Community Restoration established by Section 2200. The standards shall specify how the facility may be used to serve or to separate juveniles, other than juveniles described in subdivision (a) serving baseline confinement terms, who may also be detained in or committed to the facility or to some portion of the facility. Pending the final adoption of these modified standards, a secure youth treatment facility shall comply with applicable minimum standards for juvenile facilities in Title 15 and Title 24 of the California Code of Regulations.(4) A county proposing to establish a secure youth treatment facility for wards described in subdivision (a) shall notify the Board of State and Community Corrections of the operation of the facility and shall submit a description of the facility to the board in a format designated by the board. Commencing July 1, 2022, the Board of State and Community Corrections shall conduct a biennial inspection of each secure youth treatment facility that was used for the confinement of juveniles placed pursuant to subdivision (a) during the preceding calendar year. To the extent new standards are not yet in place, the board shall utilize the standards in existing regulations.(5) In lieu of establishing its own secure youth treatment facility, a county may contract with another county having a secure youth treatment facility to accept commitments of wards described in subdivision (a).(6) A county may establish a secure youth treatment facility to serve as a regional center for commitment of juveniles by one or more other counties on a contract payment basis.(h) (1) By July 1, 2023, the Judicial Council shall develop and adopt a matrix of offense-based classifications to be applied by the juvenile courts in all counties in setting the baseline confinement terms described in subdivision (b). Each classification level or category shall specify a set of offenses within the level or category that is linked to a standard baseline term of years to be assigned to youth, based on their most serious recent adjudicated offense, who are committed to a secure youth treatment facility as provided in this section. The classification matrix may provide for upward or downward deviations from the baseline term and may also provide for a system of positive incentives or credits for time served. In developing the matrix, the Judicial Council shall be advised by a working group of stakeholders, which shall include representatives from prosecution, defense, probation, behavioral health, youth service providers, youth formerly incarcerated in the Division of Juvenile Justice, and youth advocacy and other stakeholders and organizations having relevant expertise or information on dispositions and sentencing of youth in the juvenile justice system. In the development process, the Judicial Council shall also examine and take into account youth sentencing and length-of-stay guidelines or practices adopted by other states or recommended by organizations, academic institutions, or individuals having expertise or having conducted relevant research on dispositions and sentencing of youth in the juvenile justice system.(2) Upon final adoption by the Judicial Council, the matrix of offense-based classifications shall be applied in a standardized manner by juvenile courts in each county in cases where the court is required to set a baseline confinement term under subdivision (b) for wards who are committed to a secure youth treatment facility. The discharge consideration date guidelines of the Division of Juvenile Justice that were applied on an interim basis, as provided in subdivision (b), shall not thereafter be utilized to determine baseline confinement terms for wards who are committed to a secure youth treatment facility under the provisions of this section.(i) A court shall not commit a juvenile to any juvenile facility, including a secure youth treatment facility as defined in this section, for a period that exceeds the middle term of imprisonment that could be imposed upon an adult convicted of the same offense or offenses.875.5. (a) It is the intent of the Legislature to apply Article 6 (commencing with Section 1800) of Chapter 1 of Division 2.5, governing extended detention of persons physically dangerous to the public who are served by the Division of Juvenile Justice, to persons physically dangerous to the public who are committed to a secure treatment facility pursuant to Section 875, pending development of a specific commitment process for realigned persons pursuant to subdivision (b).(b) The Governor and the Legislature shall work with stakeholders, including, but not limited to, the Division of Juvenile Justice, the State Department of State Hospitals, the Chief Probation Officers of California, the California State Association of Counties, advocacy organizations representing youth, and the Judicial Council to develop language by July 1, 2021, to replace the procedures specified in Section 876 with a commitment process that ensures the treatment capacity, legal protections, and court procedures are appropriate to successfully serve persons realigned from the Division of Juvenile Justice to the counties by Senate Bill 823 (Chapter 337, Statutes of 2020).(c) It is the intent of the Legislature to enact legislation that would, effective July 1, 2022, extend detention of persons physically dangerous to the public who are in a secure youth treatment facility pursuant to the commitment process developed in subdivision (b).876. (a) If a probation department determines that the discharge of a person confined in a secure youth treatment facility from the control of the court at the time required by Section 875 would be physically dangerous to the public because of the persons mental or physical condition, disorder, or other problem that causes the person to have serious difficulty controlling their dangerous behavior, the department shall request the prosecuting attorney to petition the committing court for an order directing that the person remain subject to the control of the department beyond that time. The petition shall be filed at least 90 days before the time of discharge otherwise required. The petition shall be accompanied by a written statement of the facts upon which the department bases its opinion that discharge at the time stated would be physically dangerous to the public, but the petition may not be dismissed and an order may not be denied merely because of technical defects in the application.(b) The prosecuting attorney shall promptly notify the probation department of a decision not to file a petition.(c) If a petition is filed with the court and, upon review, the court determines that the petition, on its face, supports a finding of probable cause, the court shall order that a hearing be held.The court shall provide notification of the hearing to the person whose liberty is involved and, if the person is a minor, the minors parent or guardian, if the minors parent or guardian can be reached, and, if not, the court shall appoint a person to act in the place of the parent or guardian and shall afford the person an opportunity to appear at the hearing with the aid of counsel and the right to cross-examine experts or other witnesses upon whose information, opinion, or testimony the petition is based. The court shall inform the person named in the petition of their right of process to compel attendance of relevant witnesses and the production of relevant evidence. When the person is unable to provide their own counsel, the court shall appoint counsel to represent them. The probable cause hearing shall be held within 10 calendar days after the date the order is issued pursuant to this subdivision unless the person named in the petition waives this time.(d) At the probable cause hearing, the court shall receive evidence and determine whether there is probable cause to believe that discharge of the person would be physically dangerous to the public because of the persons mental or physical condition, disorder, or other problem that causes the person to have serious difficulty controlling dangerous behavior. If the court determines there is not probable cause, the court shall dismiss the petition and the person shall be discharged from the control of a secure youth treatment facility at the time required by Section 875, as applicable. If the court determines there is probable cause, the court shall order that a trial be conducted to determine whether the person is physically dangerous to the public because of their mental or physical condition, disorder, or other problem.(e) If a trial is ordered, the trial shall be by jury unless the right to a jury trial is personally waived by the person, after the person has been fully advised of the constitutional rights being waived, and by the prosecuting attorney, in which case trial shall be by the court. If the jury is not waived, the court shall cause a jury to be summoned and to be in attendance at a date stated, not less than 4 days nor more than 30 days from the date of the order for trial, unless the person named in the petition waives time. The court shall submit to the jury, or, at a court trial, the court shall answer, the following question: Is the person physically dangerous to the public because of a mental or physical condition, disorder, or other problem that causes the person to have serious difficulty controlling their dangerous behavior? The courts previous order entered pursuant to this section shall not be read to the jury, nor alluded to in the trial. The person shall be entitled to all rights guaranteed under the federal and state constitutions in criminal proceedings. A unanimous jury verdict shall be required in any jury trial. As to either a court or a jury trial, the standard of proof shall be that of proof beyond a reasonable doubt.(f) If an order for continued detention is made pursuant to this section, the control of the department over the person shall continue, subject to the provisions of this article, but, unless the person is previously discharged as provided in Section 875, the department shall, within two years after the date of that order in the case of persons committed by the juvenile court, or within two years after the date of that order in the case of persons committed after conviction in criminal proceedings, file a new application for continued detention in accordance with the provisions of this section if continued detention is deemed necessary. These applications may be repeated at intervals as often as in the opinion of the department may be necessary for the protection of the public, except that the court shall have the power, in order to protect other persons in the custody of probation to refer the person for evaluation for civil commitment or to transfer the custody of any person over 25 years of age to the county adult probation authorities for placement in an appropriate institution. Each person shall be discharged from the control of the probation department at the termination of the period stated in this section unless the probation department has filed a new application and the court has made a new order for continued detention as provided above in this section.(g) An order of the committing court made pursuant to this section is appealable by the person whose liberty is involved in the same manner as a judgment in a criminal case. The appellate court may affirm the order of the lower court, or modify it, or reverse it and order the appellant to be discharged. Pending appeal, the appellant shall remain under the control of the probation department.
570	377
571		-	~~17131~~.17. (a) For taxable years beginning on or after January 1, 2021, and before January 1, 2026, gross income does not include a bill credit or credits received by a customer from a utility applicant under the California Arrearage Payment Program (CAPP), pursuant to the California Arrearage Payment Program Under the American Rescue Plan Act of 2021 (Article 12 (commencing with Section 16429.5) of Chapter 2 of Part 2 of Division 4 of Title 2 of the Government Code).(b) This section shall remain in effect only until December 1, 2026, and as of that date is repealed.
	378	+	Article 23.5. Secure Youth Treatment Facilities
572	379
573		-	17131.17. (a) For taxable years beginning on or after January 1, 2021, and before January 1, 2026, gross income does not include a bill credit or credits received by a customer from a utility applicant under the California Arrearage Payment Program (CAPP), pursuant to the California Arrearage Payment Program Under the American Rescue Plan Act of 2021 (Article 12 (commencing with Section 16429.5) of Chapter 2 of Part 2 of Division 4 of Title 2 of the Government Code).(b) This section shall remain in effect only until December 1, 2026, and as of that date is repealed.
	380	+	Article 23.5. Secure Youth Treatment Facilities
	381	+
	382	+	875. (a) In addition to the types of treatment specified in Sections 727 and 730, commencing July 1, 2021, the court may order that a ward who is 14 years of age or older, be committed to a secure youth treatment facility for a period of confinement described in subdivision (b) if the ward meets the following criteria:(1) The juvenile is adjudicated and found to be a ward of the court based on an offense listed in subdivision (b) of Section 707.(2) The adjudication described in paragraph (1) is the most recent offense for which the juvenile has been adjudicated.(3) The court has made a finding on the record that a less restrictive, alternative disposition for the ward is unsuitable. In determining this, the court shall consider all relevant and material evidence, including the recommendations of counsel, the probation department, and any other agency or individual designated by the court to advise on the appropriate disposition of the case. The court shall additionally make its determination based on all of the following criteria:(A) The severity of the offense or offenses for which the ward has been most recently adjudicated, including the wards role in the offense, the wards behavior, and harm done to victims.(B) The wards previous delinquent history, including the adequacy and success of previous attempts by the juvenile court to rehabilitate the ward.(C) Whether the programming, treatment, and education offered and provided in a secure youth treatment facility is appropriate to meet the treatment and security needs of the ward.(D) Whether the goals of rehabilitation and community safety can be met by assigning the ward to an alternative, less restrictive disposition that is available to the court.(E) The wards age, developmental maturity, mental and emotional health, sexual orientation, gender identity and expression, and any disabilities or special needs affecting the safety or suitability of committing the ward to a term of confinement in a secure youth treatment facility.(b) In making its order of commitment for a ward, the court shall set a baseline term of confinement for the ward that is based on the most serious recent offense for which the ward has been adjudicated. The baseline term of confinement shall represent the time in custody necessary to meet the developmental and treatment needs of the ward and to prepare the ward for discharge to a period of probation supervision in the community. The baseline term of confinement for the ward shall be determined according to offense-based classifications that are approved by the Judicial Council as described in subdivision (h). Pending the development and adoption of offense-based classifications by the Judicial Council, the court shall set a baseline term of confinement for the ward utilizing the discharge consideration date guidelines applied by the Department of Corrections and Rehabilitation, Division of Juvenile Justice prior to its closure and as set forth in Sections 30807 to 30813, inclusive, of Title 9 of the California Code of Regulations. These guidelines shall be used only to determine a baseline confinement time for the ward and shall not be used or relied on to modify the wards confinement time in any manner other than as provided in this section. The court may, pending the adoption of Judicial Council guidelines, modify the initial baseline term with a deviation of plus or minus six months. The baseline term shall also be subject to modification in progress review hearings as described in subdivision (e).(c) In making its order of commitment, the court shall additionally set a maximum term of confinement for the ward in a secure youth treatment facility. The maximum term of confinement shall represent the longest term of confinement in a facility that the ward may serve subject to the following:(1) A ward committed to a secure youth treatment facility under this section shall not be held in secure confinement beyond 23 years of age, or two years from the date of the commitment, whichever occurs later. However, if the ward has been committed to a facility based on adjudication for an offense or offenses for which the ward, if convicted in adult criminal court, would face an aggregate sentence of seven or more years, the maximum period of confinement shall not exceed the ward attaining 25 years of age or two years from the date of the commitment, whichever occurs later.(2) The maximum period of confinement shall not exceed the middle term of imprisonment that can be imposed upon an adult convicted of the same offense or offenses.(d) (1) Within 30 days of making an order of commitment to a secure youth treatment facility, the court shall receive, review, and approve an individual rehabilitation plan that meets the requirements of paragraph (2) for the ward that has been submitted to the court by the probation department and any other agencies or individuals the court deems necessary for the development of the plan. The plan may be developed in consultation with a multidisciplinary team of youth service, mental and behavioral health, education, and other treatment providers who are convened to advise the court for this purpose. The prosecutor and the counsel for the ward may provide input in the development of the rehabilitation plan prior to the courts approval of the plan. The plan may be modified by the court based on all of the information provided.(2) An individual rehabilitation plan shall do all of the following:(A) Identify the wards needs in relation to treatment, education, and development, including any special needs the ward may have in relation to health, mental or emotional health, disabilities, or gender-related or other special needs.(B) Describe the programming, treatment, and education to be provided to the ward in relation to the identified needs during the commitment period.(C) Reflect, and be consistent with, the principles of trauma-informed, evidence-based, and culturally responsive care.(D) The ward and their family shall be given the opportunity to provide input regarding the needs of the ward during the identification process stated in subparagraph (A), and the opinions of the ward and the wards family shall be included in the rehabilitation plan report to the court.(e) (1) The court shall, during the term of commitment, schedule and hold a progress review hearing for the ward not less frequently than once every six months. In the review hearing, the court shall evaluate the wards progress in relation to the rehabilitation plan and shall determine whether the baseline term of confinement is to be modified. The court shall consider the recommendations of counsel, the probation department and any behavioral, educational, or other specialists having information relevant to the wards progress. At the conclusion of the review hearing, the court may order that the ward remain in custody for the remainder of the baseline term or may order that the wards baseline term be modified downward by a reduction of confinement time not to exceed six months. The court may additionally order that the ward be assigned to a less restrictive program, as provided in subdivision (f).(2) The wards confinement time, including time spent in a less restrictive program described in subdivision (f), shall not be extended beyond the baseline confinement term, or beyond a modified baseline term, for disciplinary infractions or other in-custody behaviors. Any infractions or behaviors shall be addressed by alternative means, which may include a system of graduated sanctions for disciplinary infractions adopted by the operator of a secure youth treatment facility and subject to any relevant state standards or regulations that apply to juvenile facilities generally.(3) The court shall, at the conclusion of the baseline confinement term, including any modified baseline term, hold a probation discharge hearing for the ward. For a ward who has been placed in a less restrictive program described in subdivision (f), the probation discharge hearing shall occur at the end of the period, or modified period, of placement that has been ordered by the court. At the discharge hearing, the court shall review the wards progress toward meeting the goals of the individual rehabilitation plan and the recommendations of counsel, the probation department, and any other agencies or individuals having information the court deems necessary. At the conclusion of the hearing, the court shall order that the ward be discharged to a period of probation supervision in the community under conditions approved by the court, unless the court finds that the ward constitutes a substantial risk of imminent harm to others in the community if released from custody. If the court so finds, the ward may be retained in custody in a secure youth treatment facility for up to one additional year of confinement, subject to the review hearing and probation discharge hearing provisions of this subdivision and subject to the maximum confinement provisions of subdivision (c).(4) If the ward is discharged to probation supervision, the court shall determine the reasonable conditions of probation that are suitable to meet the developmental needs and circumstances of the ward and to facilitate the wards successful reentry into the community. The court shall periodically review the wards progress under probation supervision and shall make any additional orders deemed necessary to modify the program of supervision in order to facilitate the provision of services or to otherwise support the wards successful reentry into the community. If the court finds that the ward has failed materially to comply with the reasonable orders of probation imposed by the court, the court may order that the ward be returned to a juvenile facility or to a placement described in subdivision (f) for a period not to exceed either the remainder of the baseline term, including any court-ordered modifications, or six months, whichever is longer, and in any case not to exceed the maximum confinement limits of subdivision (c).(f) (1) Upon a motion from the probation department or the ward, the court may order that the ward be transferred from a secure youth treatment facility to less restrictive program, such as a halfway house, a camp or ranch, or a community residential or nonresidential service program. The purpose of a less restrictive program is to facilitate the safe and successful reintegration of the ward into the community. The court shall consider the transfer request at the next scheduled treatment review hearing or at a separately scheduled hearing. The court shall consider the recommendations of the probation department on the proposed change in placement. Approval of the request for a less restrictive program shall be made only upon the courts determination that the ward has made substantial progress toward the goals of the individual rehabilitation plan described in subdivision (d) and that placement is consistent with the goals of youth rehabilitation and community safety. In making its determination, the court shall consider both of the following factors:(A) The wards overall progress in relation to the rehabilitation plan during the period of confinement in a secure youth treatment facility.(B) The programming and community transition services to be provided, or coordinated by the less restrictive program, including, but not limited to, any educational, vocational, counseling, housing, or other services made available through the program.(2) In any order transferring the ward from a secure youth treatment facility to a less restrictive program, the court may require the ward to observe any conditions of performance or compliance with the program that are reasonable and appropriate in the individual case and that are within the capacity of the ward to perform. The court shall set the length of time the ward is to remain in a less restrictive program, not to exceed the remainder of the baseline or modified baseline term, prior to a probation discharge hearing described in subdivision (e). If, after placement in a less restrictive program, the court determines that the ward has materially failed to comply with the court-ordered conditions of placement in the program, the court may modify the terms and conditions of placement in the program or may order the ward to be returned to a secure youth treatment facility for the remainder of the baseline term, or modified baseline term, and subject to further periodic review hearings, as provided in subdivision (e) and to the maximum confinement provisions of subdivision (c).(g) A secure youth treatment facility, as described in this section, shall meet the following criteria:(1) The facility shall be a secure facility that is operated, utilized, or accessed by the county of commitment to provide appropriate programming, treatment, and education for wards having been adjudicated for the offenses specified in subdivision (a).(2) The facility may be a stand-alone facility, such as a probation camp or other facility operated under contract with the county, or with another county, or may be a unit or portion of an existing county juvenile facility, including a juvenile hall or probation camp, that is configured and programmed to serve the population described in subdivision (a) and is in compliance with the standards described in paragraph (3).(3) The Board of State and Community Corrections shall by July 1, 2023, review existing juvenile facility standards and modify or add standards for the establishment, design, security, programming and education, and staffing of any facility that is utilized or accessed by the court as a secure youth treatment facility under the provisions of this section. The standards shall be developed by the board with the coordination and concurrence of the Office of Youth and Community Restoration established by Section 2200. The standards shall specify how the facility may be used to serve or to separate juveniles, other than juveniles described in subdivision (a) serving baseline confinement terms, who may also be detained in or committed to the facility or to some portion of the facility. Pending the final adoption of these modified standards, a secure youth treatment facility shall comply with applicable minimum standards for juvenile facilities in Title 15 and Title 24 of the California Code of Regulations.(4) A county proposing to establish a secure youth treatment facility for wards described in subdivision (a) shall notify the Board of State and Community Corrections of the operation of the facility and shall submit a description of the facility to the board in a format designated by the board. Commencing July 1, 2022, the Board of State and Community Corrections shall conduct a biennial inspection of each secure youth treatment facility that was used for the confinement of juveniles placed pursuant to subdivision (a) during the preceding calendar year. To the extent new standards are not yet in place, the board shall utilize the standards in existing regulations.(5) In lieu of establishing its own secure youth treatment facility, a county may contract with another county having a secure youth treatment facility to accept commitments of wards described in subdivision (a).(6) A county may establish a secure youth treatment facility to serve as a regional center for commitment of juveniles by one or more other counties on a contract payment basis.(h) (1) By July 1, 2023, the Judicial Council shall develop and adopt a matrix of offense-based classifications to be applied by the juvenile courts in all counties in setting the baseline confinement terms described in subdivision (b). Each classification level or category shall specify a set of offenses within the level or category that is linked to a standard baseline term of years to be assigned to youth, based on their most serious recent adjudicated offense, who are committed to a secure youth treatment facility as provided in this section. The classification matrix may provide for upward or downward deviations from the baseline term and may also provide for a system of positive incentives or credits for time served. In developing the matrix, the Judicial Council shall be advised by a working group of stakeholders, which shall include representatives from prosecution, defense, probation, behavioral health, youth service providers, youth formerly incarcerated in the Division of Juvenile Justice, and youth advocacy and other stakeholders and organizations having relevant expertise or information on dispositions and sentencing of youth in the juvenile justice system. In the development process, the Judicial Council shall also examine and take into account youth sentencing and length-of-stay guidelines or practices adopted by other states or recommended by organizations, academic institutions, or individuals having expertise or having conducted relevant research on dispositions and sentencing of youth in the juvenile justice system.(2) Upon final adoption by the Judicial Council, the matrix of offense-based classifications shall be applied in a standardized manner by juvenile courts in each county in cases where the court is required to set a baseline confinement term under subdivision (b) for wards who are committed to a secure youth treatment facility. The discharge consideration date guidelines of the Division of Juvenile Justice that were applied on an interim basis, as provided in subdivision (b), shall not thereafter be utilized to determine baseline confinement terms for wards who are committed to a secure youth treatment facility under the provisions of this section.(i) A court shall not commit a juvenile to any juvenile facility, including a secure youth treatment facility as defined in this section, for a period that exceeds the middle term of imprisonment that could be imposed upon an adult convicted of the same offense or offenses.
574	383
575	384
576	385
577		-	~~17131.17~~. (a) ~~For taxable years beginning on or after January~~ 1, 2021, ~~and before January 1,~~ ~~2026, gross income does not include~~ a ~~bill credit~~ or ~~credits received by~~ a ~~customer from~~ a ~~utility applicant under~~ the ~~California Arrearage Payment Program (CAPP), pursuant to~~ the ~~California Arrearage Payment Program Under the American Rescue Plan Act of 2021 (Article 12 (commencing with Section 16429.5) of Chapter 2 of Part 2 of Division 4 of Title 2 of the Government Code).~~
	386	+	875. (a) In addition to the types of treatment specified in Sections 727 and 730, commencing July 1, 2021, the court may order that a ward who is 14 years of age or older, be committed to a secure youth treatment facility for a period of confinement described in subdivision (b) if the ward meets the following criteria:
578	387
579		-	(b) ~~This~~ section ~~shall remain in effect only until December 1, 2026, and as of that date is repealed~~.
	388	+	(1) The juvenile is adjudicated and found to be a ward of the court based on an offense listed in subdivision (b) of Section 707.
580	389
581		-	SEC. 11. Section 17158.2 is added to the Revenue and Taxation Code, to read:17158.2. (a) For taxable years beginning on or after January 1, 2020, gross income does not include any amount awarded as a restaurant revitalization grant pursuant to Section 9009c of Title 15 of the United States Code.(b) (1) Notwithstanding Section 17280, for taxable years beginning on or after January 1, 2020, paragraph (2) ~~of Section 9673 of~~ the American Rescue Plan Act of 2021 (Public Law 117-2) shall apply, except as provided.(2) Paragraph (2) of Section 9673 of the American Rescue Plan Act of 2021 (Public Law 117-2) is modified by substituting the phrase provided by paragraph (1) ~~with provided by this section.(c)~~ The ~~Administrative Procedure Act (Chapter~~ ~~3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of~~ the ~~Government Code)~~ ~~shall not apply to any standard, criterion, procedure, determination, rule, notice, guideline, or any other guidance established or issued by the Franchise Tax Board pursuant to this section~~.~~(d) This section shall be operative for taxable years beginning on or after January 1, 2020.~~
	390	+	(2) The adjudication described in paragraph (1) is the most recent offense for which the juvenile has been adjudicated.
582	391
583		-	~~SEC. 11.~~ ~~Section 17158.2~~ is ~~added~~ to the ~~Revenue and Taxation Code,~~ ~~to read~~:
	392	+	(3) The court has made a finding on the record that a less restrictive, alternative disposition for the ward is unsuitable. In determining this, the court shall consider all relevant and material evidence, including the recommendations of counsel, the probation department, and any other agency or individual designated by the court to advise on the appropriate disposition of the case. The court shall additionally make its determination based on all of the following criteria:
584	393
585		-	~~### SEC~~. ~~11.~~
	394	+	(A) The severity of the offense or offenses for which the ward has been most recently adjudicated, including the wards role in the offense, the wards behavior, and harm done to victims.
586	395
587		-	17158.2. (a) For taxable years beginning on or after January 1, 2020, gross income does not include any amount awarded as a restaurant revitalization grant pursuant to Section 9009c of Title 15 of the United States Code.(b) ~~(1) Notwithstanding Section 17280~~, ~~for taxable years beginning on or after January 1, 2020, paragraph (2)~~ of Section 9673 of the American Rescue Plan Act of 2021 (Public Law 117-2) shall apply, except as provided.(2) Paragraph (2) of Section 9673 of the American Rescue Plan Act of 2021 (Public Law 117-2) is modified by substituting the phrase provided by paragraph (1) with provided by this section.(c) The Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) shall not apply to any standard, criterion, procedure, determination, rule, notice, guideline, or any other guidance established or issued by the ~~Franchise Tax Board pursuant~~ to ~~this section~~.~~(d) This section shall be operative for taxable years beginning on or after January 1, 2020.~~
	396	+	(B) The wards previous delinquent history, including the adequacy and success of previous attempts by the juvenile court to rehabilitate the ward.
588	397
589		-	~~17158.2.~~ (a) ~~For taxable years beginning on or after January 1~~, ~~2020~~, ~~gross income does not include any amount awarded as~~ a ~~restaurant revitalization grant pursuant~~ to ~~Section 9009c of Title 15~~ of the ~~United States Code~~.(b) (1) Notwithstanding Section 17280, for taxable years beginning on or after January 1, 2020, paragraph (2) of Section 9673 of the American Rescue Plan Act of 2021 (Public Law 117-2) shall apply, except as provided.(2) Paragraph (2) of Section 9673 of the American Rescue Plan Act of 2021 (Public Law 117-2) is modified by substituting the phrase provided by paragraph (1) with provided by this section.(c) The Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) shall not apply to any standard, criterion, procedure, determination, rule, notice, guideline, or any other guidance established or issued by the Franchise Tax Board pursuant to this section.(d) This section shall be operative for taxable years beginning on or after January 1, 2020.
	398	+	(C) Whether the programming, treatment, and education offered and provided in a secure youth treatment facility is appropriate to meet the treatment and security needs of the ward.
590	399
591		-	17158.2. (a) For taxable years beginning on or after January 1, 2020, gross income does not include any amount awarded as a restaurant revitalization grant pursuant to Section 9009c of Title 15 of the United States Code.(b) (1) Notwithstanding Section 17280, for taxable years beginning on or after January 1, 2020, paragraph (2) of Section 9673 of the American Rescue Plan Act of 2021 (Public Law 117-2) shall apply, except as provided.(2) Paragraph (2) of Section 9673 of the American Rescue Plan Act of 2021 (Public Law 117-2) is modified by substituting the phrase provided by paragraph (1) with provided by this section.(c) The Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) shall not apply to any standard, criterion, procedure, determination, rule, notice, guideline, or any other guidance established or issued by the Franchise Tax Board pursuant to this section.(d) This section shall be operative for taxable years beginning on or after January 1, 2020.
	400	+	(D) Whether the goals of rehabilitation and community safety can be met by assigning the ward to an alternative, less restrictive disposition that is available to the court.
	401	+
	402	+	(E) The wards age, developmental maturity, mental and emotional health, sexual orientation, gender identity and expression, and any disabilities or special needs affecting the safety or suitability of committing the ward to a term of confinement in a secure youth treatment facility.
	403	+
	404	+	(b) In making its order of commitment for a ward, the court shall set a baseline term of confinement for the ward that is based on the most serious recent offense for which the ward has been adjudicated. The baseline term of confinement shall represent the time in custody necessary to meet the developmental and treatment needs of the ward and to prepare the ward for discharge to a period of probation supervision in the community. The baseline term of confinement for the ward shall be determined according to offense-based classifications that are approved by the Judicial Council as described in subdivision (h). Pending the development and adoption of offense-based classifications by the Judicial Council, the court shall set a baseline term of confinement for the ward utilizing the discharge consideration date guidelines applied by the Department of Corrections and Rehabilitation, Division of Juvenile Justice prior to its closure and as set forth in Sections 30807 to 30813, inclusive, of Title 9 of the California Code of Regulations. These guidelines shall be used only to determine a baseline confinement time for the ward and shall not be used or relied on to modify the wards confinement time in any manner other than as provided in this section. The court may, pending the adoption of Judicial Council guidelines, modify the initial baseline term with a deviation of plus or minus six months. The baseline term shall also be subject to modification in progress review hearings as described in subdivision (e).
	405	+
	406	+	(c) In making its order of commitment, the court shall additionally set a maximum term of confinement for the ward in a secure youth treatment facility. The maximum term of confinement shall represent the longest term of confinement in a facility that the ward may serve subject to the following:
	407	+
	408	+	(1) A ward committed to a secure youth treatment facility under this section shall not be held in secure confinement beyond 23 years of age, or two years from the date of the commitment, whichever occurs later. However, if the ward has been committed to a facility based on adjudication for an offense or offenses for which the ward, if convicted in adult criminal court, would face an aggregate sentence of seven or more years, the maximum period of confinement shall not exceed the ward attaining 25 years of age or two years from the date of the commitment, whichever occurs later.
	409	+
	410	+	(2) The maximum period of confinement shall not exceed the middle term of imprisonment that can be imposed upon an adult convicted of the same offense or offenses.
	411	+
	412	+	(d) (1) Within 30 days of making an order of commitment to a secure youth treatment facility, the court shall receive, review, and approve an individual rehabilitation plan that meets the requirements of paragraph (2) for the ward that has been submitted to the court by the probation department and any other agencies or individuals the court deems necessary for the development of the plan. The plan may be developed in consultation with a multidisciplinary team of youth service, mental and behavioral health, education, and other treatment providers who are convened to advise the court for this purpose. The prosecutor and the counsel for the ward may provide input in the development of the rehabilitation plan prior to the courts approval of the plan. The plan may be modified by the court based on all of the information provided.
	413	+
	414	+	(2) An individual rehabilitation plan shall do all of the following:
	415	+
	416	+	(A) Identify the wards needs in relation to treatment, education, and development, including any special needs the ward may have in relation to health, mental or emotional health, disabilities, or gender-related or other special needs.
	417	+
	418	+	(B) Describe the programming, treatment, and education to be provided to the ward in relation to the identified needs during the commitment period.
	419	+
	420	+	(C) Reflect, and be consistent with, the principles of trauma-informed, evidence-based, and culturally responsive care.
	421	+
	422	+	(D) The ward and their family shall be given the opportunity to provide input regarding the needs of the ward during the identification process stated in subparagraph (A), and the opinions of the ward and the wards family shall be included in the rehabilitation plan report to the court.
	423	+
	424	+	(e) (1) The court shall, during the term of commitment, schedule and hold a progress review hearing for the ward not less frequently than once every six months. In the review hearing, the court shall evaluate the wards progress in relation to the rehabilitation plan and shall determine whether the baseline term of confinement is to be modified. The court shall consider the recommendations of counsel, the probation department and any behavioral, educational, or other specialists having information relevant to the wards progress. At the conclusion of the review hearing, the court may order that the ward remain in custody for the remainder of the baseline term or may order that the wards baseline term be modified downward by a reduction of confinement time not to exceed six months. The court may additionally order that the ward be assigned to a less restrictive program, as provided in subdivision (f).
	425	+
	426	+	(2) The wards confinement time, including time spent in a less restrictive program described in subdivision (f), shall not be extended beyond the baseline confinement term, or beyond a modified baseline term, for disciplinary infractions or other in-custody behaviors. Any infractions or behaviors shall be addressed by alternative means, which may include a system of graduated sanctions for disciplinary infractions adopted by the operator of a secure youth treatment facility and subject to any relevant state standards or regulations that apply to juvenile facilities generally.
	427	+
	428	+	(3) The court shall, at the conclusion of the baseline confinement term, including any modified baseline term, hold a probation discharge hearing for the ward. For a ward who has been placed in a less restrictive program described in subdivision (f), the probation discharge hearing shall occur at the end of the period, or modified period, of placement that has been ordered by the court. At the discharge hearing, the court shall review the wards progress toward meeting the goals of the individual rehabilitation plan and the recommendations of counsel, the probation department, and any other agencies or individuals having information the court deems necessary. At the conclusion of the hearing, the court shall order that the ward be discharged to a period of probation supervision in the community under conditions approved by the court, unless the court finds that the ward constitutes a substantial risk of imminent harm to others in the community if released from custody. If the court so finds, the ward may be retained in custody in a secure youth treatment facility for up to one additional year of confinement, subject to the review hearing and probation discharge hearing provisions of this subdivision and subject to the maximum confinement provisions of subdivision (c).
	429	+
	430	+	(4) If the ward is discharged to probation supervision, the court shall determine the reasonable conditions of probation that are suitable to meet the developmental needs and circumstances of the ward and to facilitate the wards successful reentry into the community. The court shall periodically review the wards progress under probation supervision and shall make any additional orders deemed necessary to modify the program of supervision in order to facilitate the provision of services or to otherwise support the wards successful reentry into the community. If the court finds that the ward has failed materially to comply with the reasonable orders of probation imposed by the court, the court may order that the ward be returned to a juvenile facility or to a placement described in subdivision (f) for a period not to exceed either the remainder of the baseline term, including any court-ordered modifications, or six months, whichever is longer, and in any case not to exceed the maximum confinement limits of subdivision (c).
	431	+
	432	+	(f) (1) Upon a motion from the probation department or the ward, the court may order that the ward be transferred from a secure youth treatment facility to less restrictive program, such as a halfway house, a camp or ranch, or a community residential or nonresidential service program. The purpose of a less restrictive program is to facilitate the safe and successful reintegration of the ward into the community. The court shall consider the transfer request at the next scheduled treatment review hearing or at a separately scheduled hearing. The court shall consider the recommendations of the probation department on the proposed change in placement. Approval of the request for a less restrictive program shall be made only upon the courts determination that the ward has made substantial progress toward the goals of the individual rehabilitation plan described in subdivision (d) and that placement is consistent with the goals of youth rehabilitation and community safety. In making its determination, the court shall consider both of the following factors:
	433	+
	434	+	(A) The wards overall progress in relation to the rehabilitation plan during the period of confinement in a secure youth treatment facility.
	435	+
	436	+	(B) The programming and community transition services to be provided, or coordinated by the less restrictive program, including, but not limited to, any educational, vocational, counseling, housing, or other services made available through the program.
	437	+
	438	+	(2) In any order transferring the ward from a secure youth treatment facility to a less restrictive program, the court may require the ward to observe any conditions of performance or compliance with the program that are reasonable and appropriate in the individual case and that are within the capacity of the ward to perform. The court shall set the length of time the ward is to remain in a less restrictive program, not to exceed the remainder of the baseline or modified baseline term, prior to a probation discharge hearing described in subdivision (e). If, after placement in a less restrictive program, the court determines that the ward has materially failed to comply with the court-ordered conditions of placement in the program, the court may modify the terms and conditions of placement in the program or may order the ward to be returned to a secure youth treatment facility for the remainder of the baseline term, or modified baseline term, and subject to further periodic review hearings, as provided in subdivision (e) and to the maximum confinement provisions of subdivision (c).
	439	+
	440	+	(g) A secure youth treatment facility, as described in this section, shall meet the following criteria:
	441	+
	442	+	(1) The facility shall be a secure facility that is operated, utilized, or accessed by the county of commitment to provide appropriate programming, treatment, and education for wards having been adjudicated for the offenses specified in subdivision (a).
	443	+
	444	+	(2) The facility may be a stand-alone facility, such as a probation camp or other facility operated under contract with the county, or with another county, or may be a unit or portion of an existing county juvenile facility, including a juvenile hall or probation camp, that is configured and programmed to serve the population described in subdivision (a) and is in compliance with the standards described in paragraph (3).
	445	+
	446	+	(3) The Board of State and Community Corrections shall by July 1, 2023, review existing juvenile facility standards and modify or add standards for the establishment, design, security, programming and education, and staffing of any facility that is utilized or accessed by the court as a secure youth treatment facility under the provisions of this section. The standards shall be developed by the board with the coordination and concurrence of the Office of Youth and Community Restoration established by Section 2200. The standards shall specify how the facility may be used to serve or to separate juveniles, other than juveniles described in subdivision (a) serving baseline confinement terms, who may also be detained in or committed to the facility or to some portion of the facility. Pending the final adoption of these modified standards, a secure youth treatment facility shall comply with applicable minimum standards for juvenile facilities in Title 15 and Title 24 of the California Code of Regulations.
	447	+
	448	+	(4) A county proposing to establish a secure youth treatment facility for wards described in subdivision (a) shall notify the Board of State and Community Corrections of the operation of the facility and shall submit a description of the facility to the board in a format designated by the board. Commencing July 1, 2022, the Board of State and Community Corrections shall conduct a biennial inspection of each secure youth treatment facility that was used for the confinement of juveniles placed pursuant to subdivision (a) during the preceding calendar year. To the extent new standards are not yet in place, the board shall utilize the standards in existing regulations.
	449	+
	450	+	(5) In lieu of establishing its own secure youth treatment facility, a county may contract with another county having a secure youth treatment facility to accept commitments of wards described in subdivision (a).
	451	+
	452	+	(6) A county may establish a secure youth treatment facility to serve as a regional center for commitment of juveniles by one or more other counties on a contract payment basis.
	453	+
	454	+	(h) (1) By July 1, 2023, the Judicial Council shall develop and adopt a matrix of offense-based classifications to be applied by the juvenile courts in all counties in setting the baseline confinement terms described in subdivision (b). Each classification level or category shall specify a set of offenses within the level or category that is linked to a standard baseline term of years to be assigned to youth, based on their most serious recent adjudicated offense, who are committed to a secure youth treatment facility as provided in this section. The classification matrix may provide for upward or downward deviations from the baseline term and may also provide for a system of positive incentives or credits for time served. In developing the matrix, the Judicial Council shall be advised by a working group of stakeholders, which shall include representatives from prosecution, defense, probation, behavioral health, youth service providers, youth formerly incarcerated in the Division of Juvenile Justice, and youth advocacy and other stakeholders and organizations having relevant expertise or information on dispositions and sentencing of youth in the juvenile justice system. In the development process, the Judicial Council shall also examine and take into account youth sentencing and length-of-stay guidelines or practices adopted by other states or recommended by organizations, academic institutions, or individuals having expertise or having conducted relevant research on dispositions and sentencing of youth in the juvenile justice system.
	455	+
	456	+	(2) Upon final adoption by the Judicial Council, the matrix of offense-based classifications shall be applied in a standardized manner by juvenile courts in each county in cases where the court is required to set a baseline confinement term under subdivision (b) for wards who are committed to a secure youth treatment facility. The discharge consideration date guidelines of the Division of Juvenile Justice that were applied on an interim basis, as provided in subdivision (b), shall not thereafter be utilized to determine baseline confinement terms for wards who are committed to a secure youth treatment facility under the provisions of this section.
	457	+
	458	+	(i) A court shall not commit a juvenile to any juvenile facility, including a secure youth treatment facility as defined in this section, for a period that exceeds the middle term of imprisonment that could be imposed upon an adult convicted of the same offense or offenses.
	459	+
	460	+	875.5. (a) It is the intent of the Legislature to apply Article 6 (commencing with Section 1800) of Chapter 1 of Division 2.5, governing extended detention of persons physically dangerous to the public who are served by the Division of Juvenile Justice, to persons physically dangerous to the public who are committed to a secure treatment facility pursuant to Section 875, pending development of a specific commitment process for realigned persons pursuant to subdivision (b).(b) The Governor and the Legislature shall work with stakeholders, including, but not limited to, the Division of Juvenile Justice, the State Department of State Hospitals, the Chief Probation Officers of California, the California State Association of Counties, advocacy organizations representing youth, and the Judicial Council to develop language by July 1, 2021, to replace the procedures specified in Section 876 with a commitment process that ensures the treatment capacity, legal protections, and court procedures are appropriate to successfully serve persons realigned from the Division of Juvenile Justice to the counties by Senate Bill 823 (Chapter 337, Statutes of 2020).(c) It is the intent of the Legislature to enact legislation that would, effective July 1, 2022, extend detention of persons physically dangerous to the public who are in a secure youth treatment facility pursuant to the commitment process developed in subdivision (b).
592	461
593	462
594	463
595		-	~~17158~~.2. (a) ~~For taxable years beginning on or after January~~ 1, ~~2020~~, ~~gross income does not include any amount awarded as~~ a ~~restaurant revitalization grant~~ pursuant to Section ~~9009c~~ of ~~Title 15 of the United States Code~~.
	464	+	875.5. (a) It is the intent of the Legislature to apply Article 6 (commencing with Section 1800) of Chapter 1 of Division 2.5, governing extended detention of persons physically dangerous to the public who are served by the Division of Juvenile Justice, to persons physically dangerous to the public who are committed to a secure treatment facility pursuant to Section 875, pending development of a specific commitment process for realigned persons pursuant to subdivision (b).
596	465
597		-	(b) ~~(1) Notwithstanding Section 17280~~, ~~for taxable years beginning on or after January~~ 1, ~~2020~~, ~~paragraph (2)~~ of ~~Section 9673~~ of ~~the American Rescue Plan Act of 2021 (Public Law 117-2~~) ~~shall apply, except as provided~~.
	466	+	(b) The Governor and the Legislature shall work with stakeholders, including, but not limited to, the Division of Juvenile Justice, the State Department of State Hospitals, the Chief Probation Officers of California, the California State Association of Counties, advocacy organizations representing youth, and the Judicial Council to develop language by July 1, 2021, to replace the procedures specified in Section 876 with a commitment process that ensures the treatment capacity, legal protections, and court procedures are appropriate to successfully serve persons realigned from the Division of Juvenile Justice to the counties by Senate Bill 823 (Chapter 337, Statutes of 2020).
598	467
599		-	(2) ~~Paragraph (2) of Section 9673~~ of the ~~American Rescue Plan Act~~ of ~~2021 (Public~~ ~~Law 117-2) is modified by substituting~~ the ~~phrase provided by paragraph~~ (1) ~~with provided by this section~~.
	468	+	(c) It is the intent of the Legislature to enact legislation that would, effective July 1, 2022, extend detention of persons physically dangerous to the public who are in a secure youth treatment facility pursuant to the commitment process developed in subdivision (b).
600	469
601		-	(c) The Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) shall not apply to any standard, criterion, procedure, determination, rule, notice, guideline, or any other guidance established or issued by the Franchise Tax Board pursuant to this section.
602		-
603		-	(d) This section shall be operative for taxable years beginning on or after January 1, 2020.
604		-
605		-	SEC. 12. Section 17158.3 is added to the Revenue and Taxation Code, to read:17158.3. (a) For taxable years beginning on or after January 1, 2019, gross income does not include any amount awarded as a shuttered venue operator grant pursuant to Section 9009a of Title 15 of the United States Code.(b) (1) Notwithstanding Section 17280, for taxable years beginning on or after January 1, 2019, subsection (d) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall apply, except as provided.(2) Subsection (d) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) is modified by substituting the phrase For purposes of the Internal Revenue Code of 1986 with For purposes of this part.(3) Paragraphs (2) and (3) of subsection (d) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall not apply to an ineligible entity.(c) For purposes of this section:(1) Ineligible entity means a taxpayer that either:(A) Is a publicly-traded company.(B) Does not meet the reduction from the gross receipts requirements of Section 636(a)(37)(A)(iv)(bb) of Title 15 of the United States Code, as added by Section 311 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260).(2) Publicly-traded company means a publicly-traded entity as described in Section 342 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260).(d) This section shall be operative for taxable years beginning on or after January 1, 2019.
606		-
607		-	SEC. 12. Section 17158.3 is added to the Revenue and Taxation Code, to read:
608		-
609		-	### SEC. 12.
610		-
611		-	17158.3. (a) For taxable years beginning on or after January 1, 2019, gross income does not include any amount awarded as a shuttered venue operator grant pursuant to Section 9009a of Title 15 of the United States Code.(b) (1) Notwithstanding Section 17280, for taxable years beginning on or after January 1, 2019, subsection (d) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall apply, except as provided.(2) Subsection (d) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) is modified by substituting the phrase For purposes of the Internal Revenue Code of 1986 with For purposes of this part.(3) Paragraphs (2) and (3) of subsection (d) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall not apply to an ineligible entity.(c) For purposes of this section:(1) Ineligible entity means a taxpayer that either:(A) Is a publicly-traded company.(B) Does not meet the reduction from the gross receipts requirements of Section 636(a)(37)(A)(iv)(bb) of Title 15 of the United States Code, as added by Section 311 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260).(2) Publicly-traded company means a publicly-traded entity as described in Section 342 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260).(d) This section shall be operative for taxable years beginning on or after January 1, 2019.
612		-
613		-	17158.3. (a) For taxable years beginning on or after January 1, 2019, gross income does not include any amount awarded as a shuttered venue operator grant pursuant to Section 9009a of Title 15 of the United States Code.(b) (1) Notwithstanding Section 17280, for taxable years beginning on or after January 1, 2019, subsection (d) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall apply, except as provided.(2) Subsection (d) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) is modified by substituting the phrase For purposes of the Internal Revenue Code of 1986 with For purposes of this part.(3) Paragraphs (2) and (3) of subsection (d) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall not apply to an ineligible entity.(c) For purposes of this section:(1) Ineligible entity means a taxpayer that either:(A) Is a publicly-traded company.(B) Does not meet the reduction from the gross receipts requirements of Section 636(a)(37)(A)(iv)(bb) of Title 15 of the United States Code, as added by Section 311 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260).(2) Publicly-traded company means a publicly-traded entity as described in Section 342 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260).(d) This section shall be operative for taxable years beginning on or after January 1, 2019.
614		-
615		-	17158.3. (a) For taxable years beginning on or after January 1, 2019, gross income does not include any amount awarded as a shuttered venue operator grant pursuant to Section 9009a of Title 15 of the United States Code.(b) (1) Notwithstanding Section 17280, for taxable years beginning on or after January 1, 2019, subsection (d) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall apply, except as provided.(2) Subsection (d) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) is modified by substituting the phrase For purposes of the Internal Revenue Code of 1986 with For purposes of this part.(3) Paragraphs (2) and (3) of subsection (d) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall not apply to an ineligible entity.(c) For purposes of this section:(1) Ineligible entity means a taxpayer that either:(A) Is a publicly-traded company.(B) Does not meet the reduction from the gross receipts requirements of Section 636(a)(37)(A)(iv)(bb) of Title 15 of the United States Code, as added by Section 311 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260).(2) Publicly-traded company means a publicly-traded entity as described in Section 342 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260).(d) This section shall be operative for taxable years beginning on or after January 1, 2019.
	470	+	876. (a) If a probation department determines that the discharge of a person confined in a secure youth treatment facility from the control of the court at the time required by Section 875 would be physically dangerous to the public because of the persons mental or physical condition, disorder, or other problem that causes the person to have serious difficulty controlling their dangerous behavior, the department shall request the prosecuting attorney to petition the committing court for an order directing that the person remain subject to the control of the department beyond that time. The petition shall be filed at least 90 days before the time of discharge otherwise required. The petition shall be accompanied by a written statement of the facts upon which the department bases its opinion that discharge at the time stated would be physically dangerous to the public, but the petition may not be dismissed and an order may not be denied merely because of technical defects in the application.(b) The prosecuting attorney shall promptly notify the probation department of a decision not to file a petition.(c) If a petition is filed with the court and, upon review, the court determines that the petition, on its face, supports a finding of probable cause, the court shall order that a hearing be held.The court shall provide notification of the hearing to the person whose liberty is involved and, if the person is a minor, the minors parent or guardian, if the minors parent or guardian can be reached, and, if not, the court shall appoint a person to act in the place of the parent or guardian and shall afford the person an opportunity to appear at the hearing with the aid of counsel and the right to cross-examine experts or other witnesses upon whose information, opinion, or testimony the petition is based. The court shall inform the person named in the petition of their right of process to compel attendance of relevant witnesses and the production of relevant evidence. When the person is unable to provide their own counsel, the court shall appoint counsel to represent them. The probable cause hearing shall be held within 10 calendar days after the date the order is issued pursuant to this subdivision unless the person named in the petition waives this time.(d) At the probable cause hearing, the court shall receive evidence and determine whether there is probable cause to believe that discharge of the person would be physically dangerous to the public because of the persons mental or physical condition, disorder, or other problem that causes the person to have serious difficulty controlling dangerous behavior. If the court determines there is not probable cause, the court shall dismiss the petition and the person shall be discharged from the control of a secure youth treatment facility at the time required by Section 875, as applicable. If the court determines there is probable cause, the court shall order that a trial be conducted to determine whether the person is physically dangerous to the public because of their mental or physical condition, disorder, or other problem.(e) If a trial is ordered, the trial shall be by jury unless the right to a jury trial is personally waived by the person, after the person has been fully advised of the constitutional rights being waived, and by the prosecuting attorney, in which case trial shall be by the court. If the jury is not waived, the court shall cause a jury to be summoned and to be in attendance at a date stated, not less than 4 days nor more than 30 days from the date of the order for trial, unless the person named in the petition waives time. The court shall submit to the jury, or, at a court trial, the court shall answer, the following question: Is the person physically dangerous to the public because of a mental or physical condition, disorder, or other problem that causes the person to have serious difficulty controlling their dangerous behavior? The courts previous order entered pursuant to this section shall not be read to the jury, nor alluded to in the trial. The person shall be entitled to all rights guaranteed under the federal and state constitutions in criminal proceedings. A unanimous jury verdict shall be required in any jury trial. As to either a court or a jury trial, the standard of proof shall be that of proof beyond a reasonable doubt.(f) If an order for continued detention is made pursuant to this section, the control of the department over the person shall continue, subject to the provisions of this article, but, unless the person is previously discharged as provided in Section 875, the department shall, within two years after the date of that order in the case of persons committed by the juvenile court, or within two years after the date of that order in the case of persons committed after conviction in criminal proceedings, file a new application for continued detention in accordance with the provisions of this section if continued detention is deemed necessary. These applications may be repeated at intervals as often as in the opinion of the department may be necessary for the protection of the public, except that the court shall have the power, in order to protect other persons in the custody of probation to refer the person for evaluation for civil commitment or to transfer the custody of any person over 25 years of age to the county adult probation authorities for placement in an appropriate institution. Each person shall be discharged from the control of the probation department at the termination of the period stated in this section unless the probation department has filed a new application and the court has made a new order for continued detention as provided above in this section.(g) An order of the committing court made pursuant to this section is appealable by the person whose liberty is involved in the same manner as a judgment in a criminal case. The appellate court may affirm the order of the lower court, or modify it, or reverse it and order the appellant to be discharged. Pending appeal, the appellant shall remain under the control of the probation department.
616	471
617	472
618	473
619		-	~~17158.3~~. (a) ~~For taxable years beginning on or after January 1, 2019, gross income does not include any amount awarded as~~ a ~~shuttered venue operator grant pursuant to Section 9009a~~ of ~~Title 15~~ of the ~~United States Code~~.
	474	+	876. (a) If a probation department determines that the discharge of a person confined in a secure youth treatment facility from the control of the court at the time required by Section 875 would be physically dangerous to the public because of the persons mental or physical condition, disorder, or other problem that causes the person to have serious difficulty controlling their dangerous behavior, the department shall request the prosecuting attorney to petition the committing court for an order directing that the person remain subject to the control of the department beyond that time. The petition shall be filed at least 90 days before the time of discharge otherwise required. The petition shall be accompanied by a written statement of the facts upon which the department bases its opinion that discharge at the time stated would be physically dangerous to the public, but the petition may not be dismissed and an order may not be denied merely because of technical defects in the application.
620	475
621		-	(b) ~~(1) Notwithstanding Section 17280,~~ ~~for taxable years beginning on or after January 1, 2019, subsection (d)~~ of ~~Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall apply, except as provided~~.
	476	+	(b) The prosecuting attorney shall promptly notify the probation department of a decision not to file a petition.
622	477
623		-	(2) ~~Subsection (d)~~ of ~~Section 278 of Division N~~ of the ~~Consolidated Appropriations Act,~~ ~~2021 (Public~~ ~~Law 116-260)~~ is ~~modified by substituting~~ the ~~phrase For purposes~~ of the ~~Internal Revenue Code~~ of ~~1986 with For purposes~~ of this ~~part~~.
	478	+	(c) If a petition is filed with the court and, upon review, the court determines that the petition, on its face, supports a finding of probable cause, the court shall order that a hearing be held.The court shall provide notification of the hearing to the person whose liberty is involved and, if the person is a minor, the minors parent or guardian, if the minors parent or guardian can be reached, and, if not, the court shall appoint a person to act in the place of the parent or guardian and shall afford the person an opportunity to appear at the hearing with the aid of counsel and the right to cross-examine experts or other witnesses upon whose information, opinion, or testimony the petition is based. The court shall inform the person named in the petition of their right of process to compel attendance of relevant witnesses and the production of relevant evidence. When the person is unable to provide their own counsel, the court shall appoint counsel to represent them. The probable cause hearing shall be held within 10 calendar days after the date the order is issued pursuant to this subdivision unless the person named in the petition waives this time.
624	479
625		-	~~(3) Paragraphs (2) and (3) of subsection~~ (d) ~~of Section 278 of Division N~~ of the ~~Consolidated Appropriations Act~~, ~~2021 (Public~~ ~~Law 116-260)~~ shall ~~not apply~~ to ~~an ineligible entity~~.
	480	+	(d) At the probable cause hearing, the court shall receive evidence and determine whether there is probable cause to believe that discharge of the person would be physically dangerous to the public because of the persons mental or physical condition, disorder, or other problem that causes the person to have serious difficulty controlling dangerous behavior. If the court determines there is not probable cause, the court shall dismiss the petition and the person shall be discharged from the control of a secure youth treatment facility at the time required by Section 875, as applicable. If the court determines there is probable cause, the court shall order that a trial be conducted to determine whether the person is physically dangerous to the public because of their mental or physical condition, disorder, or other problem.
626	481
627		-	(c) For ~~purposes~~ of this section:
	482	+	(e) If a trial is ordered, the trial shall be by jury unless the right to a jury trial is personally waived by the person, after the person has been fully advised of the constitutional rights being waived, and by the prosecuting attorney, in which case trial shall be by the court. If the jury is not waived, the court shall cause a jury to be summoned and to be in attendance at a date stated, not less than 4 days nor more than 30 days from the date of the order for trial, unless the person named in the petition waives time. The court shall submit to the jury, or, at a court trial, the court shall answer, the following question: Is the person physically dangerous to the public because of a mental or physical condition, disorder, or other problem that causes the person to have serious difficulty controlling their dangerous behavior? The courts previous order entered pursuant to this section shall not be read to the jury, nor alluded to in the trial. The person shall be entitled to all rights guaranteed under the federal and state constitutions in criminal proceedings. A unanimous jury verdict shall be required in any jury trial. As to either a court or a jury trial, the standard of proof shall be that of proof beyond a reasonable doubt.
628	483
629		-	(1) ~~Ineligible entity means~~ a ~~taxpayer~~ that ~~either:~~
	484	+	(f) If an order for continued detention is made pursuant to this section, the control of the department over the person shall continue, subject to the provisions of this article, but, unless the person is previously discharged as provided in Section 875, the department shall, within two years after the date of that order in the case of persons committed by the juvenile court, or within two years after the date of that order in the case of persons committed after conviction in criminal proceedings, file a new application for continued detention in accordance with the provisions of this section if continued detention is deemed necessary. These applications may be repeated at intervals as often as in the opinion of the department may be necessary for the protection of the public, except that the court shall have the power, in order to protect other persons in the custody of probation to refer the person for evaluation for civil commitment or to transfer the custody of any person over 25 years of age to the county adult probation authorities for placement in an appropriate institution. Each person shall be discharged from the control of the probation department at the termination of the period stated in this section unless the probation department has filed a new application and the court has made a new order for continued detention as provided above in this section.
630	485
631		-	(A) Is a ~~publicly-traded company~~.
	486	+	(g) An order of the committing court made pursuant to this section is appealable by the person whose liberty is involved in the same manner as a judgment in a criminal case. The appellate court may affirm the order of the lower court, or modify it, or reverse it and order the appellant to be discharged. Pending appeal, the appellant shall remain under the control of the probation department.
632	487
633		-	(B) ~~Does not meet the reduction from the gross receipts requirements~~ of Section ~~636~~(~~a)(37)(A)(iv)(bb~~) of ~~Title 15~~ of the ~~United States~~ Code, ~~as added by~~ Section ~~311 of Division N~~ of the ~~Consolidated Appropriations Act~~, 2021 (~~Public~~ Law ~~116-260~~).
	488	+	SEC. 13. Section 1731.5 of the Welfare and Institutions Code is amended to read:1731.5. (a) After certification to the Governor as provided in this article, a court may may, until July 1, 2021, commit to the Division of Juvenile Justice any person who meets all of the following:(1) Is convicted of an offense described in subdivision (b) of Section 707 or subdivision (c) of Section 290.008 of the Penal Code.(2) Is found to be less than 21 years of age at the time of apprehension.(3) Is not sentenced to death, imprisonment for life, with or without the possibility of parole, whether or not pursuant to Section 190 of the Penal Code, imprisonment for 90 days or less, or the payment of a fine, or after having been directed to pay a fine, defaults in the payment thereof, and is subject to imprisonment for more than 90 days under the judgment.(4) Is not granted probation, or was granted probation and that probation is revoked and terminated.(b) The Division of Juvenile Justice shall accept a person committed to it prior to July 1,2021, pursuant to this article if it believes that the person can be materially benefited by its reformatory and educational discipline, and if it has adequate facilities to provide that care.(c) A person under 18 years of age who is not committed to the division pursuant to this section may be transferred to the division by the Secretary of the Department of Corrections and Rehabilitation with the approval of the Director of the Division of Juvenile Justice. In sentencing a person under 18 years of age, the court may may, until July 1, 2021, order that the person be transferred to the custody of the Division of Juvenile Justice pursuant to this subdivision. If the court makes this order and the division fails to accept custody of the person, the person shall be returned to court for resentencing. The transfer shall be solely for the purposes of housing the inmate, allowing participation in the programs available at the institution by the inmate, and allowing division parole supervision of the inmate, who, in all other aspects shall be deemed to be committed to the Department of Corrections and Rehabilitation and shall remain subject to the jurisdiction of the Secretary of the Department of Corrections and Rehabilitation and the Board of Parole Hearings. Notwithstanding subdivision (b) of Section 2900 of the Penal Code, the secretary, with the concurrence of the director, may designate a facility under the jurisdiction of the director as a place of reception for a person described in this subdivision. The director has the same powers with respect to an inmate transferred pursuant to this subdivision as if the inmate had been committed or transferred to the Division of Juvenile Justice either under the Arnold-Kennick Juvenile Court Law or subdivision (a). The duration of the transfer shall extend until any of the following occurs:(1) The director orders the inmate returned to the Department of Corrections and Rehabilitation.(2) The inmate is ordered discharged by the Board of Parole Hearings.(3) The inmate reaches 18 years of age. However, if the inmates period of incarceration would be completed on or before the inmates 25th birthday, the director may continue to house the inmate until the period of incarceration is completed. completed or until final closure of the Division of Juvenile Justice.(d) The amendments to subdivision (c), as that subdivision reads on July 1, 2018, made by the act adding this subdivision, apply retroactively.
634	489
635		-	(2) Publicly-traded company means a publicly-traded entity as described in Section 342 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260).
636		-
637		-	(d) This section shall be operative for taxable years beginning on or after January 1, 2019.
638		-
639		-	SEC. 13. Section 17276.23 of the Revenue and Taxation Code is amended to read:17276.23. (a) Notwithstanding Sections 17276, 17276.1, 17276.4, 17276.7, and 17276.22, former Sections 17276.2, 17276.5, 17276.6, and 17276.20, and Section 172 of the Internal Revenue Code, a net operating loss deduction shall not be allowed for any taxable year beginning on or after January 1, 2020, and before January 1, 2023. 2022.(b) For any net operating loss or carryover of a net operating loss for which a deduction is denied by subdivision (a), the carryover period under Section 172 of the Internal Revenue Code shall be extended as follows:(1) By one year, for losses incurred in taxable years beginning on or after January 1, 2021, and before January 1, 2022.(2) By two years, for losses incurred in taxable years beginning on or after January 1, 2020, and before January 1, 2021.(3) By three years, for losses incurred in taxable years beginning before January 1, 2020.(c) This section shall not apply as follows:(1) For a taxable year beginning on or after January 1, 2020, and before January 1, 2023, 2022, this section shall not apply to a taxpayer with a net business income of less than one million dollars ($1,000,000) for the taxable year.(2) For a taxable year beginning on or after January 1, 2020, and before January 1, 2023, 2022, this section shall not apply to a taxpayer with a modified adjusted gross income of less than one million dollars ($1,000,000) for the taxable year.(d) For purposes of this section:(1) Business income means any of the following:(A) Income from a trade or business, whether conducted by the taxpayer or by a passthrough entity owned directly or indirectly by the taxpayer.(B) Income from rental activity.(C) Income attributable to a farming business.(2) Modified adjusted gross income means the amount described in paragraph (2) of subdivision (h) of Section 17024.5, determined without regard to the deduction allowed under Section 172 of the Internal Revenue Code, relating to net operating loss deduction.(3) Passthrough entity means a partnership or an S corporation.(e) The amendments made to this section by the act adding this subdivision shall be operative for taxable years beginning on or after January 1, 2022.
640		-
641		-	SEC. 13. Section 17276.23 of the Revenue and Taxation Code is amended to read:
	490	+	SEC. 13. Section 1731.5 of the Welfare and Institutions Code is amended to read:
642	491
643	492		### SEC. 13.
644	493
645		-	~~17276~~.23. (a) ~~Notwithstanding Sections 17276, 17276.1, 17276.4, 17276.7, and 17276.22, former Sections 17276.2, 17276.5, 17276.6, and 17276.20, and Section 172 of~~ the ~~Internal Revenue Code~~, a ~~net operating loss deduction shall not be allowed for any taxable year beginning on or after January 1~~, 2020, and before January 1, 2023. 2022.(b) For any net operating loss or carryover of a net operating loss for which a deduction is denied by subdivision (a), the carryover period under Section 172 of the Internal Revenue Code shall be extended as follows:(1) By one year, for losses incurred in taxable years beginning on or after January 1, 2021, ~~and before January~~ 1~~, 2022~~.(2) ~~By two~~ years, for ~~losses incurred in taxable years beginning on~~ or after ~~January 1~~, ~~2020~~, and ~~before January~~ 1, 2021.~~(3)~~ By ~~three years~~, ~~for losses incurred~~ in ~~taxable years beginning before January 1,~~ ~~2020~~.(c) ~~This~~ section ~~shall not apply~~ as ~~follows:(1)~~ For a ~~taxable year beginning on~~ or ~~after January 1,~~ ~~2020, and before January 1,~~ ~~2023, 2022,~~ ~~this section~~ shall not apply to a taxpayer with a net business income of less than one million dollars ($1,000,000) for the taxable year.(2) For a taxable year beginning on or after January 1, 2020, and before January 1, 2023, 2022, this section shall not apply to a taxpayer with a modified adjusted gross income of less than one million dollars ($1,000,000) for the taxable year.(d) For purposes of this section:(1) Business income means any of the following:(A) ~~Income from a trade or business,~~ ~~whether conducted~~ by the ~~taxpayer~~ or ~~by a passthrough entity owned directly~~ or indirectly by the taxpayer.(B) Income from rental activity.(C) Income attributable to a farming business.(2) Modified adjusted gross income means the amount described in paragraph (2) of subdivision (h) of Section 17024.5, determined without regard to the deduction allowed under Section 172 of the ~~Internal Revenue Code,~~ ~~relating to net operating loss deduction~~.(~~3) Passthrough entity means a partnership or an S corporation.(e~~) The amendments ~~made~~ to ~~this section~~ by the act adding this subdivision ~~shall be operative for taxable years beginning on or after January 1~~, ~~2022~~.
	494	+	1731.5. (a) After certification to the Governor as provided in this article, a court may may, until July 1, 2021, commit to the Division of Juvenile Justice any person who meets all of the following:(1) Is convicted of an offense described in subdivision (b) of Section 707 or subdivision (c) of Section 290.008 of the Penal Code.(2) Is found to be less than 21 years of age at the time of apprehension.(3) Is not sentenced to death, imprisonment for life, with or without the possibility of parole, whether or not pursuant to Section 190 of the Penal Code, imprisonment for 90 days or less, or the payment of a fine, or after having been directed to pay a fine, defaults in the payment thereof, and is subject to imprisonment for more than 90 days under the judgment.(4) Is not granted probation, or was granted probation and that probation is revoked and terminated.(b) The Division of Juvenile Justice shall accept a person committed to it prior to July 1,2021, pursuant to this article if it believes that the person can be materially benefited by its reformatory and educational discipline, and if it has adequate facilities to provide that care.(c) A person under 18 years of age who is not committed to the division pursuant to this section may be transferred to the division by the Secretary of the Department of Corrections and Rehabilitation with the approval of the Director of the Division of Juvenile Justice. In sentencing a person under 18 years of age, the court may may, until July 1, 2021, order that the person be transferred to the custody of the Division of Juvenile Justice pursuant to this subdivision. If the court makes this order and the division fails to accept custody of the person, the person shall be returned to court for resentencing. The transfer shall be solely for the purposes of housing the inmate, allowing participation in the programs available at the institution by the inmate, and allowing division parole supervision of the inmate, who, in all other aspects shall be deemed to be committed to the Department of Corrections and Rehabilitation and shall remain subject to the jurisdiction of the Secretary of the Department of Corrections and Rehabilitation and the Board of Parole Hearings. Notwithstanding subdivision (b) of Section 2900 of the Penal Code, the secretary, with the concurrence of the director, may designate a facility under the jurisdiction of the director as a place of reception for a person described in this subdivision. The director has the same powers with respect to an inmate transferred pursuant to this subdivision as if the inmate had been committed or transferred to the Division of Juvenile Justice either under the Arnold-Kennick Juvenile Court Law or subdivision (a). The duration of the transfer shall extend until any of the following occurs:(1) The director orders the inmate returned to the Department of Corrections and Rehabilitation.(2) The inmate is ordered discharged by the Board of Parole Hearings.(3) The inmate reaches 18 years of age. However, if the inmates period of incarceration would be completed on or before the inmates 25th birthday, the director may continue to house the inmate until the period of incarceration is completed. completed or until final closure of the Division of Juvenile Justice.(d) The amendments to subdivision (c), as that subdivision reads on July 1, 2018, made by the act adding this subdivision, apply retroactively.
646	495
647		-	~~17276~~.23. (a) ~~Notwithstanding Sections 17276, 17276.1, 17276.4, 17276.7, and 17276.22, former Sections 17276.2, 17276.5, 17276.6, and 17276.20, and Section 172 of~~ the ~~Internal Revenue Code~~, a ~~net operating loss deduction shall not be allowed for any taxable year beginning on or after January 1~~, 2020, and before January 1, 2023. 2022.(b) For any net operating loss or carryover of a net operating loss for which a deduction is denied by subdivision (a), the carryover period under Section 172 of the Internal Revenue Code shall be extended as follows:(1) By one year, for losses incurred in taxable years beginning on or after January 1, 2021, ~~and before January~~ 1~~, 2022~~.(2) ~~By two~~ years, for ~~losses incurred in taxable years beginning on~~ or after ~~January 1~~, ~~2020~~, and ~~before January~~ 1, 2021.~~(3)~~ By ~~three years~~, ~~for losses incurred~~ in ~~taxable years beginning before January 1,~~ ~~2020~~.(c) ~~This~~ section ~~shall not apply~~ as ~~follows:(1)~~ For a ~~taxable year beginning on~~ or ~~after January 1,~~ ~~2020, and before January 1,~~ ~~2023, 2022,~~ ~~this section~~ shall not apply to a taxpayer with a net business income of less than one million dollars ($1,000,000) for the taxable year.(2) For a taxable year beginning on or after January 1, 2020, and before January 1, 2023, 2022, this section shall not apply to a taxpayer with a modified adjusted gross income of less than one million dollars ($1,000,000) for the taxable year.(d) For purposes of this section:(1) Business income means any of the following:(A) ~~Income from a trade or business,~~ ~~whether conducted~~ by the ~~taxpayer~~ or ~~by a passthrough entity owned directly~~ or indirectly by the taxpayer.(B) Income from rental activity.(C) Income attributable to a farming business.(2) Modified adjusted gross income means the amount described in paragraph (2) of subdivision (h) of Section 17024.5, determined without regard to the deduction allowed under Section 172 of the ~~Internal Revenue Code,~~ ~~relating to net operating loss deduction~~.(~~3) Passthrough entity means a partnership or an S corporation.(e~~) The amendments ~~made~~ to ~~this section~~ by the act adding this subdivision ~~shall be operative for taxable years beginning on or after January 1~~, ~~2022~~.
	496	+	1731.5. (a) After certification to the Governor as provided in this article, a court may may, until July 1, 2021, commit to the Division of Juvenile Justice any person who meets all of the following:(1) Is convicted of an offense described in subdivision (b) of Section 707 or subdivision (c) of Section 290.008 of the Penal Code.(2) Is found to be less than 21 years of age at the time of apprehension.(3) Is not sentenced to death, imprisonment for life, with or without the possibility of parole, whether or not pursuant to Section 190 of the Penal Code, imprisonment for 90 days or less, or the payment of a fine, or after having been directed to pay a fine, defaults in the payment thereof, and is subject to imprisonment for more than 90 days under the judgment.(4) Is not granted probation, or was granted probation and that probation is revoked and terminated.(b) The Division of Juvenile Justice shall accept a person committed to it prior to July 1,2021, pursuant to this article if it believes that the person can be materially benefited by its reformatory and educational discipline, and if it has adequate facilities to provide that care.(c) A person under 18 years of age who is not committed to the division pursuant to this section may be transferred to the division by the Secretary of the Department of Corrections and Rehabilitation with the approval of the Director of the Division of Juvenile Justice. In sentencing a person under 18 years of age, the court may may, until July 1, 2021, order that the person be transferred to the custody of the Division of Juvenile Justice pursuant to this subdivision. If the court makes this order and the division fails to accept custody of the person, the person shall be returned to court for resentencing. The transfer shall be solely for the purposes of housing the inmate, allowing participation in the programs available at the institution by the inmate, and allowing division parole supervision of the inmate, who, in all other aspects shall be deemed to be committed to the Department of Corrections and Rehabilitation and shall remain subject to the jurisdiction of the Secretary of the Department of Corrections and Rehabilitation and the Board of Parole Hearings. Notwithstanding subdivision (b) of Section 2900 of the Penal Code, the secretary, with the concurrence of the director, may designate a facility under the jurisdiction of the director as a place of reception for a person described in this subdivision. The director has the same powers with respect to an inmate transferred pursuant to this subdivision as if the inmate had been committed or transferred to the Division of Juvenile Justice either under the Arnold-Kennick Juvenile Court Law or subdivision (a). The duration of the transfer shall extend until any of the following occurs:(1) The director orders the inmate returned to the Department of Corrections and Rehabilitation.(2) The inmate is ordered discharged by the Board of Parole Hearings.(3) The inmate reaches 18 years of age. However, if the inmates period of incarceration would be completed on or before the inmates 25th birthday, the director may continue to house the inmate until the period of incarceration is completed. completed or until final closure of the Division of Juvenile Justice.(d) The amendments to subdivision (c), as that subdivision reads on July 1, 2018, made by the act adding this subdivision, apply retroactively.
648	497
649		-	~~17276~~.23. (a) ~~Notwithstanding Sections 17276, 17276.1, 17276.4, 17276.7, and 17276.22, former Sections 17276.2, 17276.5, 17276.6, and 17276.20, and Section 172 of~~ the ~~Internal Revenue Code~~, a ~~net operating loss deduction shall not be allowed for any taxable year beginning on or after January 1~~, 2020, and before January 1, 2023. 2022.(b) For any net operating loss or carryover of a net operating loss for which a deduction is denied by subdivision (a), the carryover period under Section 172 of the Internal Revenue Code shall be extended as follows:(1) By one year, for losses incurred in taxable years beginning on or after January 1, 2021, ~~and before January~~ 1~~, 2022~~.(2) ~~By two~~ years, for ~~losses incurred in taxable years beginning on~~ or after ~~January 1~~, ~~2020~~, and ~~before January~~ 1, 2021.~~(3)~~ By ~~three years~~, ~~for losses incurred~~ in ~~taxable years beginning before January 1,~~ ~~2020~~.(c) ~~This~~ section ~~shall not apply~~ as ~~follows:(1)~~ For a ~~taxable year beginning on~~ or ~~after January 1,~~ ~~2020, and before January 1,~~ ~~2023, 2022,~~ ~~this section~~ shall not apply to a taxpayer with a net business income of less than one million dollars ($1,000,000) for the taxable year.(2) For a taxable year beginning on or after January 1, 2020, and before January 1, 2023, 2022, this section shall not apply to a taxpayer with a modified adjusted gross income of less than one million dollars ($1,000,000) for the taxable year.(d) For purposes of this section:(1) Business income means any of the following:(A) ~~Income from a trade or business,~~ ~~whether conducted~~ by the ~~taxpayer~~ or ~~by a passthrough entity owned directly~~ or indirectly by the taxpayer.(B) Income from rental activity.(C) Income attributable to a farming business.(2) Modified adjusted gross income means the amount described in paragraph (2) of subdivision (h) of Section 17024.5, determined without regard to the deduction allowed under Section 172 of the ~~Internal Revenue Code,~~ ~~relating to net operating loss deduction~~.(~~3) Passthrough entity means a partnership or an S corporation.(e~~) The amendments ~~made~~ to ~~this section~~ by the act adding this subdivision ~~shall be operative for taxable years beginning on or after January 1~~, ~~2022~~.
	498	+	1731.5. (a) After certification to the Governor as provided in this article, a court may may, until July 1, 2021, commit to the Division of Juvenile Justice any person who meets all of the following:(1) Is convicted of an offense described in subdivision (b) of Section 707 or subdivision (c) of Section 290.008 of the Penal Code.(2) Is found to be less than 21 years of age at the time of apprehension.(3) Is not sentenced to death, imprisonment for life, with or without the possibility of parole, whether or not pursuant to Section 190 of the Penal Code, imprisonment for 90 days or less, or the payment of a fine, or after having been directed to pay a fine, defaults in the payment thereof, and is subject to imprisonment for more than 90 days under the judgment.(4) Is not granted probation, or was granted probation and that probation is revoked and terminated.(b) The Division of Juvenile Justice shall accept a person committed to it prior to July 1,2021, pursuant to this article if it believes that the person can be materially benefited by its reformatory and educational discipline, and if it has adequate facilities to provide that care.(c) A person under 18 years of age who is not committed to the division pursuant to this section may be transferred to the division by the Secretary of the Department of Corrections and Rehabilitation with the approval of the Director of the Division of Juvenile Justice. In sentencing a person under 18 years of age, the court may may, until July 1, 2021, order that the person be transferred to the custody of the Division of Juvenile Justice pursuant to this subdivision. If the court makes this order and the division fails to accept custody of the person, the person shall be returned to court for resentencing. The transfer shall be solely for the purposes of housing the inmate, allowing participation in the programs available at the institution by the inmate, and allowing division parole supervision of the inmate, who, in all other aspects shall be deemed to be committed to the Department of Corrections and Rehabilitation and shall remain subject to the jurisdiction of the Secretary of the Department of Corrections and Rehabilitation and the Board of Parole Hearings. Notwithstanding subdivision (b) of Section 2900 of the Penal Code, the secretary, with the concurrence of the director, may designate a facility under the jurisdiction of the director as a place of reception for a person described in this subdivision. The director has the same powers with respect to an inmate transferred pursuant to this subdivision as if the inmate had been committed or transferred to the Division of Juvenile Justice either under the Arnold-Kennick Juvenile Court Law or subdivision (a). The duration of the transfer shall extend until any of the following occurs:(1) The director orders the inmate returned to the Department of Corrections and Rehabilitation.(2) The inmate is ordered discharged by the Board of Parole Hearings.(3) The inmate reaches 18 years of age. However, if the inmates period of incarceration would be completed on or before the inmates 25th birthday, the director may continue to house the inmate until the period of incarceration is completed. completed or until final closure of the Division of Juvenile Justice.(d) The amendments to subdivision (c), as that subdivision reads on July 1, 2018, made by the act adding this subdivision, apply retroactively.
650	499
651	500
652	501
653		-	~~17276~~.23. (a) ~~Notwithstanding Sections 17276~~, ~~17276.~~1, ~~17276.4~~, ~~17276.7, and 17276.22, former Sections 17276.2, 17276.5, 17276.6, and 17276.20, and Section 172~~ of the ~~Internal Revenue Code, a net operating loss deduction shall not be allowed for any taxable year beginning on or after January 1, 2020, and before January 1, 2023. 2022.~~
	502	+	1731.5. (a) After certification to the Governor as provided in this article, a court may may, until July 1, 2021, commit to the Division of Juvenile Justice any person who meets all of the following:
654	503
655		-	(b) ~~For any net operating loss~~ or ~~carryover of a net operating loss for which a deduction is denied by~~ subdivision (a)~~, the carryover period under~~ Section ~~172~~ of the ~~Internal Revenue~~ Code ~~shall be extended as follows:~~
	504	+	(1) Is convicted of an offense described in subdivision (b) of Section 707 or subdivision (c) of Section 290.008 of the Penal Code.
656	505
657		-	(1) ~~By one year,~~ ~~for losses incurred in taxable~~ years ~~beginning on or after January 1,~~ ~~2021, and before January 1, 2022~~.
	506	+	(2) Is found to be less than 21 years of age at the time of apprehension.
658	507
659		-	(2) ~~By two years~~, for ~~losses incurred in taxable years beginning on~~ or after ~~January 1~~, ~~2020~~, and ~~before January 1,~~ ~~2021~~.
	508	+	(3) Is not sentenced to death, imprisonment for life, with or without the possibility of parole, whether or not pursuant to Section 190 of the Penal Code, imprisonment for 90 days or less, or the payment of a fine, or after having been directed to pay a fine, defaults in the payment thereof, and is subject to imprisonment for more than 90 days under the judgment.
660	509
661		-	(3) ~~By three years~~, ~~for losses incurred in taxable years beginning before January 1,~~ ~~2020~~.
	510	+	(4) Is not granted probation, or was granted probation and that probation is revoked and terminated.
662	511
663		-	(c) This ~~section shall not apply as follows:~~
	512	+	(b) The Division of Juvenile Justice shall accept a person committed to it prior to July 1,2021, pursuant to this article if it believes that the person can be materially benefited by its reformatory and educational discipline, and if it has adequate facilities to provide that care.
664	513
665		-	(1) For a ~~taxable year beginning on~~ or ~~after January 1,~~ ~~2020, and before January 1,~~ ~~2023, 2022,~~ ~~this section~~ shall ~~not apply to a taxpayer with a net business income~~ of ~~less than one million dollars ($1,000,000) for~~ the ~~taxable year.~~
	514	+	(c) A person under 18 years of age who is not committed to the division pursuant to this section may be transferred to the division by the Secretary of the Department of Corrections and Rehabilitation with the approval of the Director of the Division of Juvenile Justice. In sentencing a person under 18 years of age, the court may may, until July 1, 2021, order that the person be transferred to the custody of the Division of Juvenile Justice pursuant to this subdivision. If the court makes this order and the division fails to accept custody of the person, the person shall be returned to court for resentencing. The transfer shall be solely for the purposes of housing the inmate, allowing participation in the programs available at the institution by the inmate, and allowing division parole supervision of the inmate, who, in all other aspects shall be deemed to be committed to the Department of Corrections and Rehabilitation and shall remain subject to the jurisdiction of the Secretary of the Department of Corrections and Rehabilitation and the Board of Parole Hearings. Notwithstanding subdivision (b) of Section 2900 of the Penal Code, the secretary, with the concurrence of the director, may designate a facility under the jurisdiction of the director as a place of reception for a person described in this subdivision. The director has the same powers with respect to an inmate transferred pursuant to this subdivision as if the inmate had been committed or transferred to the Division of Juvenile Justice either under the Arnold-Kennick Juvenile Court Law or subdivision (a). The duration of the transfer shall extend until any of the following occurs:
666	515
667		-	(2) ~~For a taxable year beginning on or after January 1,~~ ~~2020,~~ and ~~before January 1, 2023, 2022, this section shall not apply to a taxpayer with a modified adjusted gross income of less than one million dollars ($1,000,000) for the taxable year~~.
	516	+	(1) The director orders the inmate returned to the Department of Corrections and Rehabilitation.
668	517
669		-	(d) ~~For purposes~~ of ~~this section:~~
	518	+	(2) The inmate is ordered discharged by the Board of Parole Hearings.
670	519
671		-	(1) ~~Business income means any~~ of the ~~following:~~
	520	+	(3) The inmate reaches 18 years of age. However, if the inmates period of incarceration would be completed on or before the inmates 25th birthday, the director may continue to house the inmate until the period of incarceration is completed. completed or until final closure of the Division of Juvenile Justice.
672	521
673		-	(A) ~~Income from a trade or business~~, ~~whether conducted~~ by the ~~taxpayer or by a passthrough entity owned directly or indirectly by the taxpayer~~.
	522	+	(d) The amendments to subdivision (c), as that subdivision reads on July 1, 2018, made by the act adding this subdivision, apply retroactively.
674	523
675		-	(B) ~~Income from rental activity~~.
	524	+	SEC. 14. Section 1731.6 of the Welfare and Institutions Code is amended to read:1731.6. (a) In any county in which there is in effect a contract made pursuant to Section 1752.1, if a court has determined that a person comes within the provisions of Section 1731.5 and concludes that a proper disposition of the case requires such observation and diagnosis as can be made at a diagnostic and treatment center of the Youth Authority, Division of Juvenile Justice, the court may continue the hearing and and, until July 1, 2021, order that such the person be placed temporarily in such a center for a period not to exceed 90 days, with the further provision in such order that the Director of the Youth Authority Division of Juvenile Justice report to the court its diagnosis and recommendations concerning the person within the 90-day period.(b) The Director of the Youth Authority Division of Juvenile Justice shall, within the 90 days, cause the person to be observed and examined and shall forward to the court his the diagnosis and recommendation concerning such the persons future care, supervision, and treatment.(c) The Youth Authority Division of Juvenile Justice shall accept such that person if it believes that the person can be materially benefited by such diagnostic and treatment services and if the Director of the Youth Authority Division of Juvenile Justice certifies that staff and institutions are available. No such A person shall not be transported to any facility under the jurisdiction of the Youth Authority Division of Juvenile Justice until the director has notified the referring court of the place to which such the person is to be transported and the time at which he the person can be received.(d) Notwithstanding the provisions of subdivision (c), the Youth Authority Division of Juvenile Justice shall accept without cost to the county any persons remanded pursuant to Section 707.2.(e) The sheriff of the county in which an order is made placing a person in a diagnostic and treatment center pursuant to this section, or any other peace officer designated by the court, shall execute the order placing such the person in the center or returning him them therefrom to the court. The expense of such the sheriff or other peace officer incurred in executing such that order is a charge upon the county in which the court is situated.
676	525
677		-	(C) Income attributable to a farming business.
678		-
679		-	(2) Modified adjusted gross income means the amount described in paragraph (2) of subdivision (h) of Section 17024.5, determined without regard to the deduction allowed under Section 172 of the Internal Revenue Code, relating to net operating loss deduction.
680		-
681		-	(3) Passthrough entity means a partnership or an S corporation.
682		-
683		-	(e) The amendments made to this section by the act adding this subdivision shall be operative for taxable years beginning on or after January 1, 2022.
684		-
685		-	SEC. 14. Section 19900 of the Revenue and Taxation Code is amended to read:19900. (a) (1) For taxable years beginning on or after January 1, 2021, and before January 1, 2026, a qualified entity doing business in this state, as defined in Section 23101, and that is required to file a return under Section 18633, 18633.5, or subdivision (a) of Section 18601, may elect to annually pay an elective tax according to or measured by its qualified net income, defined in paragraph (2), computed at the rate of 9.3 percent for the taxable year for which the election is made.(2) For purposes of this section, the qualified net income of a qualified entity means the sum of the pro rata share or distributive share of income income, and any guaranteed payments, as described by Section 707(c) of the Internal Revenue Code, relating to guaranteed payments, subject to tax under Part 10 (commencing with Section 17001) for the taxable year of each qualified taxpayer, as defined in Section 17052.10.(b) (1) The elective tax authorized by this part shall be in addition to, and not in place of, any other tax or fee required to be paid under Part 10 (commencing with Section 17001) or Part 11 (commencing with Section 23001).(2) The elective tax described in this part shall be assessed and collected under Part 10.2 (commencing with Section 18401).(3) Unless the context otherwise requires, the definitions set forth in this part and those in Part 10 (commencing with Section 17001), Part 10.2 (commencing with Section 18401), or Part 11 (commencing with Section 23001) shall apply.(c) (1) The qualified entity may include in its qualified net income the pro rata share or distributive share of the income of any of its partners, shareholders, or members upon their consent. A partner, shareholder, or member that does not consent does not prevent the qualified entity from making an election to pay the elective tax.(2) All partners, shareholders, and members of the qualified entity shall be bound by the election made under this part for the taxable year.(d) The election shall be irrevocable and shall be made on an original, timely filed return required under Part 10.2 (commencing with Section 18401) for the taxable year of the election in the form and manner as prescribed by the Franchise Tax Board.(e) The amendments made to this section by the act adding this subdivision shall apply for taxable years beginning on or after January 1, 2021, and before January 1, 2026.
686		-
687		-	SEC. 14. Section 19900 of the Revenue and Taxation Code is amended to read:
	526	+	SEC. 14. Section 1731.6 of the Welfare and Institutions Code is amended to read:
688	527
689	528		### SEC. 14.
690	529
691		-	~~19900~~. (a) (1~~) For taxable years beginning on or after January~~ 1, 2021, ~~and before January 1,~~ ~~2026,~~ a ~~qualified entity doing business~~ in ~~this state, as defined in Section 23101, and~~ that is required to file a return under Section 18633, 18633.5, or subdivision (a) of Section 18601, may elect to annually pay an elective tax according to or measured by its qualified net income, defined in paragraph (2), computed at the ~~rate of 9.3 percent for the taxable year for which the election is made.(2) For purposes of this section, the qualified net income of a qualified entity means the sum~~ of the ~~pro rata share or distributive share~~ of ~~income income,~~ and ~~any guaranteed payments,~~ ~~as described by Section 707~~(c) of the ~~Internal Revenue Code~~, ~~relating to guaranteed payments, subject to tax under Part 10 (commencing with Section 17001) for~~ the ~~taxable year of each qualified taxpayer~~, ~~as defined in Section 17052.10.(b) (1)~~ The ~~elective tax authorized by this part shall be in addition to, and not in place of, any other tax or fee required~~ to be ~~paid under Part 10 (commencing~~ ~~with Section 17001) or Part 11 (commencing with Section 23001).(2)~~ The ~~elective tax described in this part shall be assessed~~ and ~~collected under Part 10.2 (commencing with Section 18401).(3) Unless~~ the ~~context otherwise requires~~, ~~the definitions set forth in this part~~ and ~~those in Part 10 (commencing with Section 17001), Part 10.2 (commencing with Section 18401), or Part 11 (commencing with Section 23001) shall apply~~.(c) ~~(1)~~ The ~~qualified entity may include in its qualified net income~~ the ~~pro rata share or distributive share~~ of the ~~income~~ of ~~any of its partners,~~ ~~shareholders, or members upon their consent.~~ A ~~partner, shareholder, or member that does~~ not ~~consent does not prevent~~ the ~~qualified entity from making an election to pay the elective tax.(2) All partners, shareholders, and members~~ of the ~~qualified entity shall~~ be ~~bound by~~ the ~~election made under this part for~~ the ~~taxable year~~.(d) The ~~election~~ shall ~~be irrevocable and shall be made on an original,~~ ~~timely filed return required under Part 10.2 (commencing with~~ Section ~~18401) for the taxable year of the election in the form and manner as prescribed by the Franchise Tax Board~~.(e) The ~~amendments~~ made to this section by the ~~act adding this subdivision~~ shall ~~apply for taxable years beginning on~~ or ~~after January 1,~~ ~~2021, and before January 1,~~ ~~2026~~.
	530	+	1731.6. (a) In any county in which there is in effect a contract made pursuant to Section 1752.1, if a court has determined that a person comes within the provisions of Section 1731.5 and concludes that a proper disposition of the case requires such observation and diagnosis as can be made at a diagnostic and treatment center of the Youth Authority, Division of Juvenile Justice, the court may continue the hearing and and, until July 1, 2021, order that such the person be placed temporarily in such a center for a period not to exceed 90 days, with the further provision in such order that the Director of the Youth Authority Division of Juvenile Justice report to the court its diagnosis and recommendations concerning the person within the 90-day period.(b) The Director of the Youth Authority Division of Juvenile Justice shall, within the 90 days, cause the person to be observed and examined and shall forward to the court his the diagnosis and recommendation concerning such the persons future care, supervision, and treatment.(c) The Youth Authority Division of Juvenile Justice shall accept such that person if it believes that the person can be materially benefited by such diagnostic and treatment services and if the Director of the Youth Authority Division of Juvenile Justice certifies that staff and institutions are available. No such A person shall not be transported to any facility under the jurisdiction of the Youth Authority Division of Juvenile Justice until the director has notified the referring court of the place to which such the person is to be transported and the time at which he the person can be received.(d) Notwithstanding the provisions of subdivision (c), the Youth Authority Division of Juvenile Justice shall accept without cost to the county any persons remanded pursuant to Section 707.2.(e) The sheriff of the county in which an order is made placing a person in a diagnostic and treatment center pursuant to this section, or any other peace officer designated by the court, shall execute the order placing such the person in the center or returning him them therefrom to the court. The expense of such the sheriff or other peace officer incurred in executing such that order is a charge upon the county in which the court is situated.
692	531
693		-	~~19900~~. (a) (1~~) For taxable years beginning on or after January~~ 1, 2021, ~~and before January 1,~~ ~~2026,~~ a ~~qualified entity doing business~~ in ~~this state, as defined in Section 23101, and~~ that is required to file a return under Section 18633, 18633.5, or subdivision (a) of Section 18601, may elect to annually pay an elective tax according to or measured by its qualified net income, defined in paragraph (2), computed at the ~~rate of 9.3 percent for the taxable year for which the election is made.(2) For purposes of this section, the qualified net income of a qualified entity means the sum~~ of the ~~pro rata share or distributive share~~ of ~~income income,~~ and ~~any guaranteed payments,~~ ~~as described by Section 707~~(c) of the ~~Internal Revenue Code~~, ~~relating to guaranteed payments, subject to tax under Part 10 (commencing with Section 17001) for~~ the ~~taxable year of each qualified taxpayer~~, ~~as defined in Section 17052.10.(b) (1)~~ The ~~elective tax authorized by this part shall be in addition to, and not in place of, any other tax or fee required~~ to be ~~paid under Part 10 (commencing~~ ~~with Section 17001) or Part 11 (commencing with Section 23001).(2)~~ The ~~elective tax described in this part shall be assessed~~ and ~~collected under Part 10.2 (commencing with Section 18401).(3) Unless~~ the ~~context otherwise requires~~, ~~the definitions set forth in this part~~ and ~~those in Part 10 (commencing with Section 17001), Part 10.2 (commencing with Section 18401), or Part 11 (commencing with Section 23001) shall apply~~.(c) ~~(1)~~ The ~~qualified entity may include in its qualified net income~~ the ~~pro rata share or distributive share~~ of the ~~income~~ of ~~any of its partners,~~ ~~shareholders, or members upon their consent.~~ A ~~partner, shareholder, or member that does~~ not ~~consent does not prevent~~ the ~~qualified entity from making an election to pay the elective tax.(2) All partners, shareholders, and members~~ of the ~~qualified entity shall~~ be ~~bound by~~ the ~~election made under this part for~~ the ~~taxable year~~.(d) The ~~election~~ shall ~~be irrevocable and shall be made on an original,~~ ~~timely filed return required under Part 10.2 (commencing with~~ Section ~~18401) for the taxable year of the election in the form and manner as prescribed by the Franchise Tax Board~~.(e) The ~~amendments~~ made to this section by the ~~act adding this subdivision~~ shall ~~apply for taxable years beginning on~~ or ~~after January 1,~~ ~~2021, and before January 1,~~ ~~2026~~.
	532	+	1731.6. (a) In any county in which there is in effect a contract made pursuant to Section 1752.1, if a court has determined that a person comes within the provisions of Section 1731.5 and concludes that a proper disposition of the case requires such observation and diagnosis as can be made at a diagnostic and treatment center of the Youth Authority, Division of Juvenile Justice, the court may continue the hearing and and, until July 1, 2021, order that such the person be placed temporarily in such a center for a period not to exceed 90 days, with the further provision in such order that the Director of the Youth Authority Division of Juvenile Justice report to the court its diagnosis and recommendations concerning the person within the 90-day period.(b) The Director of the Youth Authority Division of Juvenile Justice shall, within the 90 days, cause the person to be observed and examined and shall forward to the court his the diagnosis and recommendation concerning such the persons future care, supervision, and treatment.(c) The Youth Authority Division of Juvenile Justice shall accept such that person if it believes that the person can be materially benefited by such diagnostic and treatment services and if the Director of the Youth Authority Division of Juvenile Justice certifies that staff and institutions are available. No such A person shall not be transported to any facility under the jurisdiction of the Youth Authority Division of Juvenile Justice until the director has notified the referring court of the place to which such the person is to be transported and the time at which he the person can be received.(d) Notwithstanding the provisions of subdivision (c), the Youth Authority Division of Juvenile Justice shall accept without cost to the county any persons remanded pursuant to Section 707.2.(e) The sheriff of the county in which an order is made placing a person in a diagnostic and treatment center pursuant to this section, or any other peace officer designated by the court, shall execute the order placing such the person in the center or returning him them therefrom to the court. The expense of such the sheriff or other peace officer incurred in executing such that order is a charge upon the county in which the court is situated.
694	533
695		-	~~19900~~. (a) (1~~) For taxable years beginning on or after January~~ 1, 2021, ~~and before January 1,~~ ~~2026,~~ a ~~qualified entity doing business~~ in ~~this state, as defined in Section 23101, and~~ that is required to file a return under Section 18633, 18633.5, or subdivision (a) of Section 18601, may elect to annually pay an elective tax according to or measured by its qualified net income, defined in paragraph (2), computed at the ~~rate of 9.3 percent for the taxable year for which the election is made.(2) For purposes of this section, the qualified net income of a qualified entity means the sum~~ of the ~~pro rata share or distributive share~~ of ~~income income,~~ and ~~any guaranteed payments,~~ ~~as described by Section 707~~(c) of the ~~Internal Revenue Code~~, ~~relating to guaranteed payments, subject to tax under Part 10 (commencing with Section 17001) for~~ the ~~taxable year of each qualified taxpayer~~, ~~as defined in Section 17052.10.(b) (1)~~ The ~~elective tax authorized by this part shall be in addition to, and not in place of, any other tax or fee required~~ to be ~~paid under Part 10 (commencing~~ ~~with Section 17001) or Part 11 (commencing with Section 23001).(2)~~ The ~~elective tax described in this part shall be assessed~~ and ~~collected under Part 10.2 (commencing with Section 18401).(3) Unless~~ the ~~context otherwise requires~~, ~~the definitions set forth in this part~~ and ~~those in Part 10 (commencing with Section 17001), Part 10.2 (commencing with Section 18401), or Part 11 (commencing with Section 23001) shall apply~~.(c) ~~(1)~~ The ~~qualified entity may include in its qualified net income~~ the ~~pro rata share or distributive share~~ of the ~~income~~ of ~~any of its partners,~~ ~~shareholders, or members upon their consent.~~ A ~~partner, shareholder, or member that does~~ not ~~consent does not prevent~~ the ~~qualified entity from making an election to pay the elective tax.(2) All partners, shareholders, and members~~ of the ~~qualified entity shall~~ be ~~bound by~~ the ~~election made under this part for~~ the ~~taxable year~~.(d) The ~~election~~ shall ~~be irrevocable and shall be made on an original,~~ ~~timely filed return required under Part 10.2 (commencing with~~ Section ~~18401) for the taxable year of the election in the form and manner as prescribed by the Franchise Tax Board~~.(e) The ~~amendments~~ made to this section by the ~~act adding this subdivision~~ shall ~~apply for taxable years beginning on~~ or ~~after January 1,~~ ~~2021, and before January 1,~~ ~~2026~~.
	534	+	1731.6. (a) In any county in which there is in effect a contract made pursuant to Section 1752.1, if a court has determined that a person comes within the provisions of Section 1731.5 and concludes that a proper disposition of the case requires such observation and diagnosis as can be made at a diagnostic and treatment center of the Youth Authority, Division of Juvenile Justice, the court may continue the hearing and and, until July 1, 2021, order that such the person be placed temporarily in such a center for a period not to exceed 90 days, with the further provision in such order that the Director of the Youth Authority Division of Juvenile Justice report to the court its diagnosis and recommendations concerning the person within the 90-day period.(b) The Director of the Youth Authority Division of Juvenile Justice shall, within the 90 days, cause the person to be observed and examined and shall forward to the court his the diagnosis and recommendation concerning such the persons future care, supervision, and treatment.(c) The Youth Authority Division of Juvenile Justice shall accept such that person if it believes that the person can be materially benefited by such diagnostic and treatment services and if the Director of the Youth Authority Division of Juvenile Justice certifies that staff and institutions are available. No such A person shall not be transported to any facility under the jurisdiction of the Youth Authority Division of Juvenile Justice until the director has notified the referring court of the place to which such the person is to be transported and the time at which he the person can be received.(d) Notwithstanding the provisions of subdivision (c), the Youth Authority Division of Juvenile Justice shall accept without cost to the county any persons remanded pursuant to Section 707.2.(e) The sheriff of the county in which an order is made placing a person in a diagnostic and treatment center pursuant to this section, or any other peace officer designated by the court, shall execute the order placing such the person in the center or returning him them therefrom to the court. The expense of such the sheriff or other peace officer incurred in executing such that order is a charge upon the county in which the court is situated.
696	535
697	536
698	537
699		-	~~19900~~. (a) (1~~) For taxable years beginning on or after January~~ 1, 2021, ~~and before January 1,~~ ~~2026,~~ a ~~qualified entity doing business~~ in ~~this state,~~ ~~as defined in Section 23101,~~ and that is required to file a return under Section 18633, 18633.5, or subdivision (a) of Section 18601, may elect to annually pay an elective tax according to or measured by its qualified net income, defined in paragraph (2), computed at the ~~rate of 9.3 percent for~~ the ~~taxable year for which the election is made~~.
	538	+	1731.6. (a) In any county in which there is in effect a contract made pursuant to Section 1752.1, if a court has determined that a person comes within the provisions of Section 1731.5 and concludes that a proper disposition of the case requires such observation and diagnosis as can be made at a diagnostic and treatment center of the Youth Authority, Division of Juvenile Justice, the court may continue the hearing and and, until July 1, 2021, order that such the person be placed temporarily in such a center for a period not to exceed 90 days, with the further provision in such order that the Director of the Youth Authority Division of Juvenile Justice report to the court its diagnosis and recommendations concerning the person within the 90-day period.
700	539
701		-	(2) ~~For purposes of this section,~~ the ~~qualified net income of a qualified entity means the sum~~ of the ~~pro rata share or distributive share~~ of ~~income income~~, and any guaranteed payments, as described by Section 707(c) of the Internal Revenue Code, relating to guaranteed payments, subject to tax under Part 10 (commencing with Section 17001) for the taxable year of each qualified taxpayer, as defined in Section 17052.~~10.~~
	540	+	(b) The Director of the Youth Authority Division of Juvenile Justice shall, within the 90 days, cause the person to be observed and examined and shall forward to the court his the diagnosis and recommendation concerning such the persons future care, supervision, and treatment.
702	541
703		-	(~~b) (1~~) The ~~elective tax authorized~~ by ~~this part~~ shall be ~~in addition~~ to~~, and not in~~ place ~~of, any other tax or fee required~~ to be ~~paid under Part 10 (commencing~~ ~~with Section 17001)~~ ~~or Part 11 (commencing with Section 23001)~~.
	542	+	(c) The Youth Authority Division of Juvenile Justice shall accept such that person if it believes that the person can be materially benefited by such diagnostic and treatment services and if the Director of the Youth Authority Division of Juvenile Justice certifies that staff and institutions are available. No such A person shall not be transported to any facility under the jurisdiction of the Youth Authority Division of Juvenile Justice until the director has notified the referring court of the place to which such the person is to be transported and the time at which he the person can be received.
704	543
705		-	(2) The ~~elective tax described in this part~~ shall ~~be assessed and collected under Part 10.2 (commencing~~ ~~with~~ Section ~~18401)~~.
	544	+	(d) Notwithstanding the provisions of subdivision (c), the Youth Authority Division of Juvenile Justice shall accept without cost to the county any persons remanded pursuant to Section 707.2.
706	545
707		-	(3) ~~Unless~~ the ~~context otherwise requires,~~ the ~~definitions set forth~~ in ~~this part~~ and ~~those in Part 10 (commencing with~~ Section ~~17001), Part 10.2 (commencing with Section 18401)~~, or ~~Part 11 (commencing~~ ~~with Section 23001)~~ shall ~~apply~~.
	546	+	(e) The sheriff of the county in which an order is made placing a person in a diagnostic and treatment center pursuant to this section, or any other peace officer designated by the court, shall execute the order placing such the person in the center or returning him them therefrom to the court. The expense of such the sheriff or other peace officer incurred in executing such that order is a charge upon the county in which the court is situated.
708	547
709		-	(c) (1) The ~~qualified entity may~~ include ~~in its qualified net income the pro rata share or distributive share~~ of the ~~income~~ of ~~any~~ of ~~its partners~~, ~~shareholders~~, or ~~members upon their consent~~. A ~~partner~~, ~~shareholder~~, or ~~member that does not consent does not prevent~~ the ~~qualified entity~~ from ~~making~~ an ~~election~~ to ~~pay~~ the ~~elective tax~~.
	548	+	SEC. 15. Section 1731.7 of the Welfare and Institutions Code, as amended by Section 42 of Chapter 29 of the Statutes of 2020, is amended to read:1731.7. (a) The Department of Corrections and Rehabilitation, Division of Juvenile Justice, shall establish and operate a seven-year pilot program for transition-aged youth. Commencing on or after January 1, 2019, the program shall divert a limited number of transition-aged youth from adult prison to a juvenile facility in order to provide developmentally appropriate, rehabilitative programming designed for transition-aged youth with the goal of improving their outcomes and reducing recidivism.(b) The department may develop criteria for placement in this program, initially targeting youth sentenced by a superior court who committed an offense described in subdivision (b) of Section 707 prior to 18 years of age. Youth with a period of incarceration that cannot be completed on or before their 25th birthday are ineligible for placement in the transition-aged youth program. The department may consider the availability of program credit earning opportunities that lower the total length of time a youth serves in determining eligibility.(c) Notwithstanding any other law, following sentencing, an individual who is 18 years of age or older at the time of sentencing and who has been convicted of an offense described in subdivision (b) of Section 707 that occurred prior to 18 years of age shall remain in local detention pending a determination of acceptance or rejection by the Division of Juvenile Justice. The Division of Juvenile Justice shall notify the local detention authority upon determination of acceptance or rejection of an individual pursuant to this subdivision.(d) An eligible person may be transferred to the Division of Juvenile Justice by the Secretary of the Department of Corrections and Rehabilitation with the approval of the Director of the Division of Juvenile Justice. Notwithstanding subdivision (b) of Section 2900 of the Penal Code, the secretary, with the concurrence of the director, may designate a facility under the jurisdiction of the Division of Juvenile Justice as a place of reception for a person described in this section.(e) The duration of the transfer shall extend until either of the following occurs:(1) The director orders the youth returned to the Department of Corrections and Rehabilitation.(2) The youths period of incarceration is completed.(f) The Division of Juvenile Justice shall produce and submit a report to the Legislature on January 1, 2020, and each January 1 thereafter, to assess the program. At a minimum, the report shall include all of the following:(1) Criteria used to determine placement in the program.(2) Guidelines for satisfactory completion of the program.(3) Demographic data of eligible and selected participants, including, but not limited to, county of conviction, race, gender, sexual orientation, and gender identity and expression.(4) Disciplinary infractions incurred by participants.(5) Good conduct, milestone completion, rehabilitative achievement, and educational merit credits earned in custody.(6) Quantitative and qualitative measures of progress in programming.(7) Rates of attrition of program participants.(g) The Division of Juvenile Justice shall contract with one or more independent universities or outside research organizations to evaluate the effects of participation in the program established by this section. This evaluation shall include, at a minimum, an evaluation of cost-effectiveness, recidivism data, consistency with evidence-based principles, and program fidelity. If sufficient data is available, the evaluation may also compare participant outcomes with a like group of similarly situated transition aged youth retained in the counties or incarcerated in adult institutions.(h) The Division of Juvenile Justice shall promulgate regulations to implement this section.(i) Effective July 1, 2020, the pilot program operated pursuant to this section shall be suspended. Any pilot program participants who were diverted from an adult prison pursuant to this section and who were housed at the Division of Juvenile Justice prior to January 1, 2020, may remain at the Division of Juvenile Justice pursuant to subdivision (e).
710	549
711		-	(2) All partners, shareholders, and members of the qualified entity shall be bound by the election made under this part for the taxable year.
712		-
713		-	(d) The election shall be irrevocable and shall be made on an original, timely filed return required under Part 10.2 (commencing with Section 18401) for the taxable year of the election in the form and manner as prescribed by the Franchise Tax Board.
714		-
715		-	(e) The amendments made to this section by the act adding this subdivision shall apply for taxable years beginning on or after January 1, 2021, and before January 1, 2026.
716		-
717		-	SEC. 15. Section 19902 of the Revenue and Taxation Code is amended to read:19902. (a) For purposes of this part, qualified entity means an entity that meets both of the following requirements for the taxable year:(1) The entity is taxed as a partnership or S corporation.(2) The entitys partners, shareholders, or members in that taxable year are exclusively corporations, as defined in Section 23038, or taxpayers as defined in Section 17004, excluding partnerships. 17004.(b) Qualified entity shall not include any of the following:(1) Publicly traded partnerships, as defined in Section 7704 of the Internal Revenue Code, as it read on January 1, 2021, as modified by Section 17008.5.(2) An entity that is permitted or required to be in a combined reporting group, as defined in paragraph (3) of subdivision (b) of Section 25106.5 of Title 18 of the California Code of Regulations.(c) The amendments made to this section by the act adding this subdivision shall apply for taxable years beginning on or after January 1, 2021, and before January 1, 2026.
718		-
719		-	SEC. 15. Section 19902 of the Revenue and Taxation Code is amended to read:
	550	+	SEC. 15. Section 1731.7 of the Welfare and Institutions Code, as amended by Section 42 of Chapter 29 of the Statutes of 2020, is amended to read:
720	551
721	552		### SEC. 15.
722	553
723		-	~~19902~~. (a) ~~For purposes~~ of ~~this part~~, ~~qualified entity means an entity that meets both~~ of ~~the following requirements~~ for the taxable year:(1) The entity is taxed as a partnership or S corporation.(2) The entitys partners, shareholders, or members in that taxable year are exclusively corporations, as defined in Section 23038, or taxpayers as defined in Section 17004, excluding partnerships. 17004.(b) Qualified entity shall not include any of the following:(1) Publicly traded partnerships, as defined in Section 7704 of the Internal Revenue Code, as it read on January 1, 2021, as modified by Section 17008.5.(2) An entity that is permitted or required to be in a combined reporting group, as defined in paragraph (3) of subdivision (b) of Section 25106.5 of Title 18 of the California Code of Regulations.(c) The amendments made to this section by the act adding this subdivision shall apply for taxable years beginning on or after January 1, ~~2021~~, and before January 1, ~~2026~~.
	554	+	1731.7. (a) The Department of Corrections and Rehabilitation, Division of Juvenile Justice, shall establish and operate a seven-year pilot program for transition-aged youth. Commencing on or after January 1, 2019, the program shall divert a limited number of transition-aged youth from adult prison to a juvenile facility in order to provide developmentally appropriate, rehabilitative programming designed for transition-aged youth with the goal of improving their outcomes and reducing recidivism.(b) The department may develop criteria for placement in this program, initially targeting youth sentenced by a superior court who committed an offense described in subdivision (b) of Section 707 prior to 18 years of age. Youth with a period of incarceration that cannot be completed on or before their 25th birthday are ineligible for placement in the transition-aged youth program. The department may consider the availability of program credit earning opportunities that lower the total length of time a youth serves in determining eligibility.(c) Notwithstanding any other law, following sentencing, an individual who is 18 years of age or older at the time of sentencing and who has been convicted of an offense described in subdivision (b) of Section 707 that occurred prior to 18 years of age shall remain in local detention pending a determination of acceptance or rejection by the Division of Juvenile Justice. The Division of Juvenile Justice shall notify the local detention authority upon determination of acceptance or rejection of an individual pursuant to this subdivision.(d) An eligible person may be transferred to the Division of Juvenile Justice by the Secretary of the Department of Corrections and Rehabilitation with the approval of the Director of the Division of Juvenile Justice. Notwithstanding subdivision (b) of Section 2900 of the Penal Code, the secretary, with the concurrence of the director, may designate a facility under the jurisdiction of the Division of Juvenile Justice as a place of reception for a person described in this section.(e) The duration of the transfer shall extend until either of the following occurs:(1) The director orders the youth returned to the Department of Corrections and Rehabilitation.(2) The youths period of incarceration is completed.(f) The Division of Juvenile Justice shall produce and submit a report to the Legislature on January 1, 2020, and each January 1 thereafter, to assess the program. At a minimum, the report shall include all of the following:(1) Criteria used to determine placement in the program.(2) Guidelines for satisfactory completion of the program.(3) Demographic data of eligible and selected participants, including, but not limited to, county of conviction, race, gender, sexual orientation, and gender identity and expression.(4) Disciplinary infractions incurred by participants.(5) Good conduct, milestone completion, rehabilitative achievement, and educational merit credits earned in custody.(6) Quantitative and qualitative measures of progress in programming.(7) Rates of attrition of program participants.(g) The Division of Juvenile Justice shall contract with one or more independent universities or outside research organizations to evaluate the effects of participation in the program established by this section. This evaluation shall include, at a minimum, an evaluation of cost-effectiveness, recidivism data, consistency with evidence-based principles, and program fidelity. If sufficient data is available, the evaluation may also compare participant outcomes with a like group of similarly situated transition aged youth retained in the counties or incarcerated in adult institutions.(h) The Division of Juvenile Justice shall promulgate regulations to implement this section.(i) Effective July 1, 2020, the pilot program operated pursuant to this section shall be suspended. Any pilot program participants who were diverted from an adult prison pursuant to this section and who were housed at the Division of Juvenile Justice prior to January 1, 2020, may remain at the Division of Juvenile Justice pursuant to subdivision (e).
724	555
725		-	~~19902~~. (a) ~~For purposes~~ of ~~this part~~, ~~qualified entity means an entity that meets both~~ of ~~the following requirements~~ for the taxable year:(1) The entity is taxed as a partnership or S corporation.(2) The entitys partners, shareholders, or members in that taxable year are exclusively corporations, as defined in Section 23038, or taxpayers as defined in Section 17004, excluding partnerships. 17004.(b) Qualified entity shall not include any of the following:(1) Publicly traded partnerships, as defined in Section 7704 of the Internal Revenue Code, as it read on January 1, 2021, as modified by Section 17008.5.(2) An entity that is permitted or required to be in a combined reporting group, as defined in paragraph (3) of subdivision (b) of Section 25106.5 of Title 18 of the California Code of Regulations.(c) The amendments made to this section by the act adding this subdivision shall apply for taxable years beginning on or after January 1, ~~2021~~, and before January 1, ~~2026~~.
	556	+	1731.7. (a) The Department of Corrections and Rehabilitation, Division of Juvenile Justice, shall establish and operate a seven-year pilot program for transition-aged youth. Commencing on or after January 1, 2019, the program shall divert a limited number of transition-aged youth from adult prison to a juvenile facility in order to provide developmentally appropriate, rehabilitative programming designed for transition-aged youth with the goal of improving their outcomes and reducing recidivism.(b) The department may develop criteria for placement in this program, initially targeting youth sentenced by a superior court who committed an offense described in subdivision (b) of Section 707 prior to 18 years of age. Youth with a period of incarceration that cannot be completed on or before their 25th birthday are ineligible for placement in the transition-aged youth program. The department may consider the availability of program credit earning opportunities that lower the total length of time a youth serves in determining eligibility.(c) Notwithstanding any other law, following sentencing, an individual who is 18 years of age or older at the time of sentencing and who has been convicted of an offense described in subdivision (b) of Section 707 that occurred prior to 18 years of age shall remain in local detention pending a determination of acceptance or rejection by the Division of Juvenile Justice. The Division of Juvenile Justice shall notify the local detention authority upon determination of acceptance or rejection of an individual pursuant to this subdivision.(d) An eligible person may be transferred to the Division of Juvenile Justice by the Secretary of the Department of Corrections and Rehabilitation with the approval of the Director of the Division of Juvenile Justice. Notwithstanding subdivision (b) of Section 2900 of the Penal Code, the secretary, with the concurrence of the director, may designate a facility under the jurisdiction of the Division of Juvenile Justice as a place of reception for a person described in this section.(e) The duration of the transfer shall extend until either of the following occurs:(1) The director orders the youth returned to the Department of Corrections and Rehabilitation.(2) The youths period of incarceration is completed.(f) The Division of Juvenile Justice shall produce and submit a report to the Legislature on January 1, 2020, and each January 1 thereafter, to assess the program. At a minimum, the report shall include all of the following:(1) Criteria used to determine placement in the program.(2) Guidelines for satisfactory completion of the program.(3) Demographic data of eligible and selected participants, including, but not limited to, county of conviction, race, gender, sexual orientation, and gender identity and expression.(4) Disciplinary infractions incurred by participants.(5) Good conduct, milestone completion, rehabilitative achievement, and educational merit credits earned in custody.(6) Quantitative and qualitative measures of progress in programming.(7) Rates of attrition of program participants.(g) The Division of Juvenile Justice shall contract with one or more independent universities or outside research organizations to evaluate the effects of participation in the program established by this section. This evaluation shall include, at a minimum, an evaluation of cost-effectiveness, recidivism data, consistency with evidence-based principles, and program fidelity. If sufficient data is available, the evaluation may also compare participant outcomes with a like group of similarly situated transition aged youth retained in the counties or incarcerated in adult institutions.(h) The Division of Juvenile Justice shall promulgate regulations to implement this section.(i) Effective July 1, 2020, the pilot program operated pursuant to this section shall be suspended. Any pilot program participants who were diverted from an adult prison pursuant to this section and who were housed at the Division of Juvenile Justice prior to January 1, 2020, may remain at the Division of Juvenile Justice pursuant to subdivision (e).
726	557
727		-	~~19902~~. (a) ~~For purposes~~ of ~~this part~~, ~~qualified entity means an entity that meets both~~ of ~~the following requirements~~ for the taxable year:(1) The entity is taxed as a partnership or S corporation.(2) The entitys partners, shareholders, or members in that taxable year are exclusively corporations, as defined in Section 23038, or taxpayers as defined in Section 17004, excluding partnerships. 17004.(b) Qualified entity shall not include any of the following:(1) Publicly traded partnerships, as defined in Section 7704 of the Internal Revenue Code, as it read on January 1, 2021, as modified by Section 17008.5.(2) An entity that is permitted or required to be in a combined reporting group, as defined in paragraph (3) of subdivision (b) of Section 25106.5 of Title 18 of the California Code of Regulations.(c) The amendments made to this section by the act adding this subdivision shall apply for taxable years beginning on or after January 1, ~~2021~~, and before January 1, ~~2026~~.
	558	+	1731.7. (a) The Department of Corrections and Rehabilitation, Division of Juvenile Justice, shall establish and operate a seven-year pilot program for transition-aged youth. Commencing on or after January 1, 2019, the program shall divert a limited number of transition-aged youth from adult prison to a juvenile facility in order to provide developmentally appropriate, rehabilitative programming designed for transition-aged youth with the goal of improving their outcomes and reducing recidivism.(b) The department may develop criteria for placement in this program, initially targeting youth sentenced by a superior court who committed an offense described in subdivision (b) of Section 707 prior to 18 years of age. Youth with a period of incarceration that cannot be completed on or before their 25th birthday are ineligible for placement in the transition-aged youth program. The department may consider the availability of program credit earning opportunities that lower the total length of time a youth serves in determining eligibility.(c) Notwithstanding any other law, following sentencing, an individual who is 18 years of age or older at the time of sentencing and who has been convicted of an offense described in subdivision (b) of Section 707 that occurred prior to 18 years of age shall remain in local detention pending a determination of acceptance or rejection by the Division of Juvenile Justice. The Division of Juvenile Justice shall notify the local detention authority upon determination of acceptance or rejection of an individual pursuant to this subdivision.(d) An eligible person may be transferred to the Division of Juvenile Justice by the Secretary of the Department of Corrections and Rehabilitation with the approval of the Director of the Division of Juvenile Justice. Notwithstanding subdivision (b) of Section 2900 of the Penal Code, the secretary, with the concurrence of the director, may designate a facility under the jurisdiction of the Division of Juvenile Justice as a place of reception for a person described in this section.(e) The duration of the transfer shall extend until either of the following occurs:(1) The director orders the youth returned to the Department of Corrections and Rehabilitation.(2) The youths period of incarceration is completed.(f) The Division of Juvenile Justice shall produce and submit a report to the Legislature on January 1, 2020, and each January 1 thereafter, to assess the program. At a minimum, the report shall include all of the following:(1) Criteria used to determine placement in the program.(2) Guidelines for satisfactory completion of the program.(3) Demographic data of eligible and selected participants, including, but not limited to, county of conviction, race, gender, sexual orientation, and gender identity and expression.(4) Disciplinary infractions incurred by participants.(5) Good conduct, milestone completion, rehabilitative achievement, and educational merit credits earned in custody.(6) Quantitative and qualitative measures of progress in programming.(7) Rates of attrition of program participants.(g) The Division of Juvenile Justice shall contract with one or more independent universities or outside research organizations to evaluate the effects of participation in the program established by this section. This evaluation shall include, at a minimum, an evaluation of cost-effectiveness, recidivism data, consistency with evidence-based principles, and program fidelity. If sufficient data is available, the evaluation may also compare participant outcomes with a like group of similarly situated transition aged youth retained in the counties or incarcerated in adult institutions.(h) The Division of Juvenile Justice shall promulgate regulations to implement this section.(i) Effective July 1, 2020, the pilot program operated pursuant to this section shall be suspended. Any pilot program participants who were diverted from an adult prison pursuant to this section and who were housed at the Division of Juvenile Justice prior to January 1, 2020, may remain at the Division of Juvenile Justice pursuant to subdivision (e).
728	559
729	560
730	561
731		-	~~19902~~. (a) ~~For purposes~~ of ~~this part~~, ~~qualified entity means an entity that meets both~~ of ~~the following requirements~~ for the ~~taxable year:~~
	562	+	1731.7. (a) The Department of Corrections and Rehabilitation, Division of Juvenile Justice, shall establish and operate a seven-year pilot program for transition-aged youth. Commencing on or after January 1, 2019, the program shall divert a limited number of transition-aged youth from adult prison to a juvenile facility in order to provide developmentally appropriate, rehabilitative programming designed for transition-aged youth with the goal of improving their outcomes and reducing recidivism.
732	563
733		-	(1) The ~~entity is taxed as~~ a ~~partnership~~ or ~~S corporation~~.
	564	+	(b) The department may develop criteria for placement in this program, initially targeting youth sentenced by a superior court who committed an offense described in subdivision (b) of Section 707 prior to 18 years of age. Youth with a period of incarceration that cannot be completed on or before their 25th birthday are ineligible for placement in the transition-aged youth program. The department may consider the availability of program credit earning opportunities that lower the total length of time a youth serves in determining eligibility.
734	565
735		-	(2) The ~~entitys partners,~~ ~~shareholders,~~ or ~~members in that taxable year are exclusively corporations,~~ ~~as defined in Section 23038,~~ or ~~taxpayers as defined in Section 17004,~~ ~~excluding partnerships~~. ~~17004.~~
	566	+	(c) Notwithstanding any other law, following sentencing, an individual who is 18 years of age or older at the time of sentencing and who has been convicted of an offense described in subdivision (b) of Section 707 that occurred prior to 18 years of age shall remain in local detention pending a determination of acceptance or rejection by the Division of Juvenile Justice. The Division of Juvenile Justice shall notify the local detention authority upon determination of acceptance or rejection of an individual pursuant to this subdivision.
736	567
737		-	(b) ~~Qualified entity shall not include any~~ of the ~~following:~~
	568	+	(d) An eligible person may be transferred to the Division of Juvenile Justice by the Secretary of the Department of Corrections and Rehabilitation with the approval of the Director of the Division of Juvenile Justice. Notwithstanding subdivision (b) of Section 2900 of the Penal Code, the secretary, with the concurrence of the director, may designate a facility under the jurisdiction of the Division of Juvenile Justice as a place of reception for a person described in this section.
738	569
739		-	(1) ~~Publicly traded partnerships, as defined in Section 7704~~ of the ~~Internal Revenue Code,~~ ~~as it read on January 1, 2021, as modified by Section 17008.5.~~
	570	+	(e) The duration of the transfer shall extend until either of the following occurs:
740	571
741		-	(2) ~~An entity that is permitted or required~~ to ~~be in a combined reporting group, as defined in paragraph (3)~~ of ~~subdivision (b) of Section 25106~~.~~5 of Title 18 of the California Code of Regulations.~~
	572	+	(1) The director orders the youth returned to the Department of Corrections and Rehabilitation.
742	573
743		-	(c) The ~~amendments made to this section by the act adding this subdivision shall apply for taxable years beginning on or after January 1, 2021, and before January 1, 2026~~.
	574	+	(2) The youths period of incarceration is completed.
744	575
745		-	~~SEC. 16.~~ ~~Section 23036.3~~ of ~~the Revenue~~ and ~~Taxation Code is amended to read:23036.3. (a) Notwithstanding any provision of this part or Part 10.2 (commencing with Section 18401)~~ to the contrary, except as provided in subdivision (d), for taxpayers not required to be included in a combined report under Section 25101 or 25110, or taxpayers not authorized to be included in a combined report under Section 25101.15, for each taxable year beginning on ~~or after~~ January 1, 2020, and ~~before~~ January 1, ~~2023, 2022~~, the total of all credits otherwise allowable under any provision of Chapter 3.5 (commencing with Section 23604) including the carryover of any credit under a former provision of that chapter, for the taxable year shall not reduce the tax, as defined in Section 23036, by more than five million dollars ($5,000,000).(b) Notwithstanding any provision of this part or Part 10.2 (commencing with Section 18401) to the contrary, except as provided in subdivision (d), for taxpayers required to be included in a combined report under Section 25101 or 25110, or taxpayers authorized to be included in a combined report under Section 25101.15, for each taxable year beginning on or after January 1, 2020, and before January 1, 2023, 2022, the total of all ~~credits otherwise allowable under any provision of Chapter 3.5 (commencing with Section 23604), including the carryover of any credit under a former provision of that chapter, by all members~~ of the combined report shall not reduce the aggregate amount of tax, as defined in Section 23036, of all members of the combined report by more than five-million-dollars ($5,000,000).(c) Any amounts included in an election pursuant to Section 6902.5, relating to an irrevocable election to apply credit amounts under Section 17053.85, 17053.95, 17053.98, 23685, 23695, or 23698 against qualified sales and use tax, as defined in Section 6902.5, are not included in the five million dollar ($5,000,000) limitation set forth in subdivision (a) or (b).(d) The limitation under subdivision (a) or (b) shall not apply to the credit allowed by Section 23610.5 (relating to credit for low-income housing).(e) The amount of any credit otherwise allowable for the taxable year under Section 23036 that is not allowed due to the application of this section shall remain a credit carryover amount under this part.(f) The carryover period for any credit that is not allowed due to the application of this section shall be increased by the number of taxable years the credit or any portion thereof was not allowed.(g) Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code does not apply to any standard, criterion, procedure, determination, rule, notice, or guideline established or issued by the Franchise Tax Board pursuant to this section.(h) The amendments made to this section by the act adding this subdivision shall be operative for taxable years beginning on or after January 1, 2022.
	576	+	(f) The Division of Juvenile Justice shall produce and submit a report to the Legislature on January 1, 2020, and each January 1 thereafter, to assess the program. At a minimum, the report shall include all of the following:
746	577
747		-	SEC. 16. Section 23036.3 of the Revenue and Taxation Code is amended to read:
	578	+	(1) Criteria used to determine placement in the program.
	579	+
	580	+	(2) Guidelines for satisfactory completion of the program.
	581	+
	582	+	(3) Demographic data of eligible and selected participants, including, but not limited to, county of conviction, race, gender, sexual orientation, and gender identity and expression.
	583	+
	584	+	(4) Disciplinary infractions incurred by participants.
	585	+
	586	+	(5) Good conduct, milestone completion, rehabilitative achievement, and educational merit credits earned in custody.
	587	+
	588	+	(6) Quantitative and qualitative measures of progress in programming.
	589	+
	590	+	(7) Rates of attrition of program participants.
	591	+
	592	+	(g) The Division of Juvenile Justice shall contract with one or more independent universities or outside research organizations to evaluate the effects of participation in the program established by this section. This evaluation shall include, at a minimum, an evaluation of cost-effectiveness, recidivism data, consistency with evidence-based principles, and program fidelity. If sufficient data is available, the evaluation may also compare participant outcomes with a like group of similarly situated transition aged youth retained in the counties or incarcerated in adult institutions.
	593	+
	594	+	(h) The Division of Juvenile Justice shall promulgate regulations to implement this section.
	595	+
	596	+	(i) Effective July 1, 2020, the pilot program operated pursuant to this section shall be suspended. Any pilot program participants who were diverted from an adult prison pursuant to this section and who were housed at the Division of Juvenile Justice prior to January 1, 2020, may remain at the Division of Juvenile Justice pursuant to subdivision (e).
	597	+
	598	+	SEC. 16. Section 1731.7 of the Welfare and Institutions Code, as added by Section 68 of Chapter 25 of the Statutes of 2019, is repealed.1731.7.(a)The Department of Corrections and Rehabilitation shall establish and operate a seven-year pilot program for transition-aged youth. Commencing on or after January 1, 2019, the program shall divert a limited number of transition-aged youth from adult prison to a juvenile facility in order to provide developmentally appropriate, rehabilitative programming designed for transition-aged youth with the goal of improving their outcomes and reducing recidivism.(b)The department may develop criteria for placement in this program, initially targeting youth sentenced by a superior court who committed an offense described in subdivision (b) of Section 707 prior to 18 years of age. Youth with a period of incarceration that cannot be completed on or before their 25th birthday are ineligible for placement in the transition-aged youth program. The department may consider the availability of program credit earning opportunities that lower the total length of time a youth serves in determining eligibility.(c)Notwithstanding any other law, following sentencing, an individual who is 18 years of age or older at the time of sentencing and who has been convicted of an offense described in subdivision (b) of Section 707 that occurred prior to 18 years of age shall remain in local detention pending a determination of acceptance or rejection by the Department of Youth and Community Restoration. The Department of Youth and Community Restoration shall notify the local detention authority upon determination of acceptance or rejection of an individual pursuant to this subdivision.(d)An eligible person may be transferred to the Department of Youth and Community Restoration by the Secretary of the Department of Corrections and Rehabilitation with the approval of the Director of the Department of Youth and Community Restoration. Notwithstanding subdivision (b) of Section 2900 of the Penal Code, the secretary, with the concurrence of the director, may designate a facility under the jurisdiction of the Department of Youth and Community Restoration as a place of reception for a person described in this section.(e)The duration of the transfer shall extend until either of the following occurs:(1)The director orders the youth returned to the Department of Corrections and Rehabilitation.(2)The youths period of incarceration is completed.(f)The Department of Youth and Community Restoration shall produce and submit a report to the Legislature on January 1, 2021, and each January 1 thereafter, to assess the program. At a minimum, the report shall include all of the following:(1)Criteria used to determine placement in the program.(2)Guidelines for satisfactory completion of the program.(3)Demographic data of eligible and selected participants, including, but not limited to, county of conviction, race, gender, sexual orientation, and gender identity and expression.(4)Disciplinary infractions incurred by participants.(5)Good conduct, milestone completion, rehabilitative achievement, and educational merit credits earned in custody.(6)Quantitative and qualitative measures of progress in programming.(7)Rates of attrition of program participants.(g)The Department of Youth and Community Restoration shall contract with one or more independent universities or outside research organizations to evaluate the effects of participation in the program established by this section. This evaluation shall include, at a minimum, an evaluation of cost-effectiveness, recidivism data, consistency with evidence-based principles, and program fidelity. If sufficient data is available, the evaluation may also compare participant outcomes with a like group of similarly situated transition aged youth retained in the counties or incarcerated in adult institutions.(h)The Department of Youth and Community Restoration shall promulgate regulations to implement this section.(i)This section shall become operative July 1, 2020.(j)This section shall become inoperative on June 1, 2026, and, as of January 1, 2027, is repealed.
	599	+
	600	+	SEC. 16. Section 1731.7 of the Welfare and Institutions Code, as added by Section 68 of Chapter 25 of the Statutes of 2019, is repealed.
748	601
749	602		### SEC. 16.
750	603
751		-	23036.3. (a) Notwithstanding any provision of this part or Part 10.2 (commencing with Section 18401) to the contrary, except as provided in subdivision (d), for taxpayers not required to be included in a combined report under Section 25101 or 25110, or taxpayers not authorized to be included in a combined report under Section 25101.15, for each taxable year beginning on or after January 1, 2020, and before January 1, 2023, 2022, the total of all credits otherwise allowable under any provision of Chapter 3.5 (commencing with Section 23604) including the carryover of any credit under a former provision of that chapter, for the taxable year shall not reduce the tax, as defined in Section 23036, by more than five million dollars ($5,000,000).(b) Notwithstanding any provision of this part or Part 10.2 (commencing with Section 18401) to the contrary, except as provided in subdivision (d), for taxpayers required to be included in a combined report under Section 25101 or 25110, or taxpayers authorized to be included in a combined report under Section 25101.15, for each taxable year beginning on or after January 1, 2020, and before January 1, 2023, 2022, the total of all credits otherwise allowable under any provision of Chapter 3.5 (commencing with Section 23604), including the carryover of any credit under a former provision of that chapter, by all members of the combined report shall not reduce the aggregate amount of tax, as defined in Section 23036, of all members of the combined report by more than five-million-dollars ($5,000,000).(c) Any amounts included in an election pursuant to Section 6902.5, relating to an irrevocable election to apply credit amounts under Section 17053.85, 17053.95, 17053.98, 23685, 23695, or 23698 against qualified sales and use tax, as defined in Section 6902.5, are not included in the five million dollar ($5,000,000) limitation set forth in subdivision (a) or (b).(d) The limitation under subdivision (a) or (b) shall not apply to the credit allowed by Section 23610.5 (relating to credit for low-income housing).(e) The amount of any credit otherwise allowable for the taxable year under Section 23036 that is not allowed due to the application of this section shall remain a credit carryover amount under this part.(f) The carryover period for any credit that is not allowed due to the application of this section shall be increased by the number of taxable years the credit or any portion thereof was not allowed.(g) Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code does not apply to any standard, criterion, procedure, determination, rule, notice, or guideline established or issued by the Franchise Tax Board pursuant to this section.(h) The amendments made to this section by the act adding this subdivision shall be operative for taxable years beginning on or after January 1, 2022.
752		-
753		-	23036.3. (a) Notwithstanding any provision of this part or Part 10.2 (commencing with Section 18401) to the contrary, except as provided in subdivision (d), for taxpayers not required to be included in a combined report under Section 25101 or 25110, or taxpayers not authorized to be included in a combined report under Section 25101.15, for each taxable year beginning on or after January 1, 2020, and before January 1, 2023, 2022, the total of all credits otherwise allowable under any provision of Chapter 3.5 (commencing with Section 23604) including the carryover of any credit under a former provision of that chapter, for the taxable year shall not reduce the tax, as defined in Section 23036, by more than five million dollars ($5,000,000).(b) Notwithstanding any provision of this part or Part 10.2 (commencing with Section 18401) to the contrary, except as provided in subdivision (d), for taxpayers required to be included in a combined report under Section 25101 or 25110, or taxpayers authorized to be included in a combined report under Section 25101.15, for each taxable year beginning on or after January 1, 2020, and before January 1, 2023, 2022, the total of all credits otherwise allowable under any provision of Chapter 3.5 (commencing with Section 23604), including the carryover of any credit under a former provision of that chapter, by all members of the combined report shall not reduce the aggregate amount of tax, as defined in Section 23036, of all members of the combined report by more than five-million-dollars ($5,000,000).(c) Any amounts included in an election pursuant to Section 6902.5, relating to an irrevocable election to apply credit amounts under Section 17053.85, 17053.95, 17053.98, 23685, 23695, or 23698 against qualified sales and use tax, as defined in Section 6902.5, are not included in the five million dollar ($5,000,000) limitation set forth in subdivision (a) or (b).(d) The limitation under subdivision (a) or (b) shall not apply to the credit allowed by Section 23610.5 (relating to credit for low-income housing).(e) The amount of any credit otherwise allowable for the taxable year under Section 23036 that is not allowed due to the application of this section shall remain a credit carryover amount under this part.(f) The carryover period for any credit that is not allowed due to the application of this section shall be increased by the number of taxable years the credit or any portion thereof was not allowed.(g) Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code does not apply to any standard, criterion, procedure, determination, rule, notice, or guideline established or issued by the Franchise Tax Board pursuant to this section.(h) The amendments made to this section by the act adding this subdivision shall be operative for taxable years beginning on or after January 1, 2022.
754		-
755		-	23036.3. (a) Notwithstanding any provision of this part or Part 10.2 (commencing with Section 18401) to the contrary, except as provided in subdivision (d), for taxpayers not required to be included in a combined report under Section 25101 or 25110, or taxpayers not authorized to be included in a combined report under Section 25101.15, for each taxable year beginning on or after January 1, 2020, and before January 1, 2023, 2022, the total of all credits otherwise allowable under any provision of Chapter 3.5 (commencing with Section 23604) including the carryover of any credit under a former provision of that chapter, for the taxable year shall not reduce the tax, as defined in Section 23036, by more than five million dollars ($5,000,000).(b) Notwithstanding any provision of this part or Part 10.2 (commencing with Section 18401) to the contrary, except as provided in subdivision (d), for taxpayers required to be included in a combined report under Section 25101 or 25110, or taxpayers authorized to be included in a combined report under Section 25101.15, for each taxable year beginning on or after January 1, 2020, and before January 1, 2023, 2022, the total of all credits otherwise allowable under any provision of Chapter 3.5 (commencing with Section 23604), including the carryover of any credit under a former provision of that chapter, by all members of the combined report shall not reduce the aggregate amount of tax, as defined in Section 23036, of all members of the combined report by more than five-million-dollars ($5,000,000).(c) Any amounts included in an election pursuant to Section 6902.5, relating to an irrevocable election to apply credit amounts under Section 17053.85, 17053.95, 17053.98, 23685, 23695, or 23698 against qualified sales and use tax, as defined in Section 6902.5, are not included in the five million dollar ($5,000,000) limitation set forth in subdivision (a) or (b).(d) The limitation under subdivision (a) or (b) shall not apply to the credit allowed by Section 23610.5 (relating to credit for low-income housing).(e) The amount of any credit otherwise allowable for the taxable year under Section 23036 that is not allowed due to the application of this section shall remain a credit carryover amount under this part.(f) The carryover period for any credit that is not allowed due to the application of this section shall be increased by the number of taxable years the credit or any portion thereof was not allowed.(g) Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code does not apply to any standard, criterion, procedure, determination, rule, notice, or guideline established or issued by the Franchise Tax Board pursuant to this section.(h) The amendments made to this section by the act adding this subdivision shall be operative for taxable years beginning on or after January 1, 2022.
	604	+	1731.7.(a)The Department of Corrections and Rehabilitation shall establish and operate a seven-year pilot program for transition-aged youth. Commencing on or after January 1, 2019, the program shall divert a limited number of transition-aged youth from adult prison to a juvenile facility in order to provide developmentally appropriate, rehabilitative programming designed for transition-aged youth with the goal of improving their outcomes and reducing recidivism.(b)The department may develop criteria for placement in this program, initially targeting youth sentenced by a superior court who committed an offense described in subdivision (b) of Section 707 prior to 18 years of age. Youth with a period of incarceration that cannot be completed on or before their 25th birthday are ineligible for placement in the transition-aged youth program. The department may consider the availability of program credit earning opportunities that lower the total length of time a youth serves in determining eligibility.(c)Notwithstanding any other law, following sentencing, an individual who is 18 years of age or older at the time of sentencing and who has been convicted of an offense described in subdivision (b) of Section 707 that occurred prior to 18 years of age shall remain in local detention pending a determination of acceptance or rejection by the Department of Youth and Community Restoration. The Department of Youth and Community Restoration shall notify the local detention authority upon determination of acceptance or rejection of an individual pursuant to this subdivision.(d)An eligible person may be transferred to the Department of Youth and Community Restoration by the Secretary of the Department of Corrections and Rehabilitation with the approval of the Director of the Department of Youth and Community Restoration. Notwithstanding subdivision (b) of Section 2900 of the Penal Code, the secretary, with the concurrence of the director, may designate a facility under the jurisdiction of the Department of Youth and Community Restoration as a place of reception for a person described in this section.(e)The duration of the transfer shall extend until either of the following occurs:(1)The director orders the youth returned to the Department of Corrections and Rehabilitation.(2)The youths period of incarceration is completed.(f)The Department of Youth and Community Restoration shall produce and submit a report to the Legislature on January 1, 2021, and each January 1 thereafter, to assess the program. At a minimum, the report shall include all of the following:(1)Criteria used to determine placement in the program.(2)Guidelines for satisfactory completion of the program.(3)Demographic data of eligible and selected participants, including, but not limited to, county of conviction, race, gender, sexual orientation, and gender identity and expression.(4)Disciplinary infractions incurred by participants.(5)Good conduct, milestone completion, rehabilitative achievement, and educational merit credits earned in custody.(6)Quantitative and qualitative measures of progress in programming.(7)Rates of attrition of program participants.(g)The Department of Youth and Community Restoration shall contract with one or more independent universities or outside research organizations to evaluate the effects of participation in the program established by this section. This evaluation shall include, at a minimum, an evaluation of cost-effectiveness, recidivism data, consistency with evidence-based principles, and program fidelity. If sufficient data is available, the evaluation may also compare participant outcomes with a like group of similarly situated transition aged youth retained in the counties or incarcerated in adult institutions.(h)The Department of Youth and Community Restoration shall promulgate regulations to implement this section.(i)This section shall become operative July 1, 2020.(j)This section shall become inoperative on June 1, 2026, and, as of January 1, 2027, is repealed.
756	605
757	606
758	607
759		-	~~23036.3.~~ (a) ~~Notwithstanding any provision~~ of ~~this part or Part 10.2 (commencing~~ ~~with Section 18401)~~ ~~to the contrary, except as provided in subdivision (d),~~ for taxpayers not required to be included in a combined report under Section 25101 or 25110, or taxpayers not authorized to be included in a combined report under Section 25101.15, for each taxable year beginning on or after January 1, ~~2020, and before January 1, 2023, 2022~~, the ~~total~~ of ~~all credits otherwise allowable under any provision~~ of ~~Chapter 3~~.5 (commencing with Section 23604) including the carryover of any credit under a former provision of that chapter, for the taxable year shall not reduce the tax, as defined in Section 23036, by more than five million dollars ($5,000,000).
	608	+	(a)The Department of Corrections and Rehabilitation shall establish and operate a seven-year pilot program for transition-aged youth. Commencing on or after January 1, 2019, the program shall divert a limited number of transition-aged youth from adult prison to a juvenile facility in order to provide developmentally appropriate, rehabilitative programming designed for transition-aged youth with the goal of improving their outcomes and reducing recidivism.
760	609
761		-	(b) Notwithstanding any provision of this part or Part 10.2 (commencing with Section 18401) to the contrary, except as provided in subdivision (d), for taxpayers required to be included in a combined report under Section 25101 or 25110, or taxpayers authorized to be included in a combined report under Section 25101.15, for each taxable year beginning on or after January 1, 2020, and before January 1, 2023, 2022, the total of all credits otherwise allowable under any provision of Chapter 3.5 (commencing with Section 23604), including the carryover of any credit under a former provision of that chapter, by all members of the combined report shall not reduce the aggregate amount of tax, as defined in Section 23036, of all members of the combined report by more than five-million-dollars ($5,000,000).
762	610
763		-	(c) Any amounts included in an election pursuant to Section 6902.5, relating to an irrevocable election to apply credit amounts under Section 17053.85, 17053.95, 17053.98, 23685, 23695, or 23698 against qualified sales and use tax, as defined in Section 6902.5, are not included in the five million dollar ($5,000,000) limitation set forth in subdivision (a) or (b).
764	611
765		-	(d) The ~~limitation under~~ subdivision ~~(a) or~~ (b) ~~shall not apply~~ to the credit ~~allowed by Section 23610~~.~~5 (relating to credit for low-income housing).~~
	612	+	(b)The department may develop criteria for placement in this program, initially targeting youth sentenced by a superior court who committed an offense described in subdivision (b) of Section 707 prior to 18 years of age. Youth with a period of incarceration that cannot be completed on or before their 25th birthday are ineligible for placement in the transition-aged youth program. The department may consider the availability of program credit earning opportunities that lower the total length of time a youth serves in determining eligibility.
766	613
767		-	(e) The amount of any credit otherwise allowable for the taxable year under Section 23036 that is not allowed due to the application of this section shall remain a credit carryover amount under this part.
768	614
769		-	(f) The carryover period for any credit that is not allowed due to the application of this section shall be increased by the number of taxable years the credit or any portion thereof was not allowed.
770	615
771		-	(g) ~~Chapter 3.5~~ (~~commencing with Section 11340~~) of ~~Part 1~~ of ~~Division 3~~ of ~~Title 2 of the Government Code does not apply to any standard, criterion, procedure, determination, rule, notice,~~ or ~~guideline established or issued~~ by the ~~Franchise Tax Board~~ pursuant to this ~~section~~.
	616	+	(c)Notwithstanding any other law, following sentencing, an individual who is 18 years of age or older at the time of sentencing and who has been convicted of an offense described in subdivision (b) of Section 707 that occurred prior to 18 years of age shall remain in local detention pending a determination of acceptance or rejection by the Department of Youth and Community Restoration. The Department of Youth and Community Restoration shall notify the local detention authority upon determination of acceptance or rejection of an individual pursuant to this subdivision.
772	617
773		-	(h) The amendments made to this section by the act adding this subdivision shall be operative for taxable years beginning on or after January 1, 2022.
774	618
775		-	SEC. 17. Section 24308.2 is added to the Revenue and Taxation Code, to read:24308.2. (a) For taxable years beginning on or after January 1, 2020, gross income does not include any amount awarded as a restaurant revitalization grant pursuant to Section 9009c of Title 15 of the United States Code.(b) (1) Notwithstanding Section 24425, for taxable years beginning on or after January 1, 2020, paragraph (2) of Section 9673 of the American Rescue Plan Act of 2021 (Public Law 117-2) shall apply, except as provided.(2) Paragraph (2) of Section 9673 of the American Rescue Plan Act of 2021 (Public Law 117-2) is modified by substituting the phrase provided by paragraph (1) with provided by this section.(c) The Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) shall not apply to any standard, criterion, procedure, determination, rule, notice, guideline, or any other guidance established or issued by the Franchise Tax Board pursuant to this section.(d) This section shall be operative for taxable years beginning on or after January 1, 2020.
776	619
777		-	SEC. 17. Section 24308.2 is added to the Revenue and Taxation Code, to read:
	620	+	(d)An eligible person may be transferred to the Department of Youth and Community Restoration by the Secretary of the Department of Corrections and Rehabilitation with the approval of the Director of the Department of Youth and Community Restoration. Notwithstanding subdivision (b) of Section 2900 of the Penal Code, the secretary, with the concurrence of the director, may designate a facility under the jurisdiction of the Department of Youth and Community Restoration as a place of reception for a person described in this section.
	621	+
	622	+
	623	+
	624	+	(e)The duration of the transfer shall extend until either of the following occurs:
	625	+
	626	+
	627	+
	628	+	(1)The director orders the youth returned to the Department of Corrections and Rehabilitation.
	629	+
	630	+
	631	+
	632	+	(2)The youths period of incarceration is completed.
	633	+
	634	+
	635	+
	636	+	(f)The Department of Youth and Community Restoration shall produce and submit a report to the Legislature on January 1, 2021, and each January 1 thereafter, to assess the program. At a minimum, the report shall include all of the following:
	637	+
	638	+
	639	+
	640	+	(1)Criteria used to determine placement in the program.
	641	+
	642	+
	643	+
	644	+	(2)Guidelines for satisfactory completion of the program.
	645	+
	646	+
	647	+
	648	+	(3)Demographic data of eligible and selected participants, including, but not limited to, county of conviction, race, gender, sexual orientation, and gender identity and expression.
	649	+
	650	+
	651	+
	652	+	(4)Disciplinary infractions incurred by participants.
	653	+
	654	+
	655	+
	656	+	(5)Good conduct, milestone completion, rehabilitative achievement, and educational merit credits earned in custody.
	657	+
	658	+
	659	+
	660	+	(6)Quantitative and qualitative measures of progress in programming.
	661	+
	662	+
	663	+
	664	+	(7)Rates of attrition of program participants.
	665	+
	666	+
	667	+
	668	+	(g)The Department of Youth and Community Restoration shall contract with one or more independent universities or outside research organizations to evaluate the effects of participation in the program established by this section. This evaluation shall include, at a minimum, an evaluation of cost-effectiveness, recidivism data, consistency with evidence-based principles, and program fidelity. If sufficient data is available, the evaluation may also compare participant outcomes with a like group of similarly situated transition aged youth retained in the counties or incarcerated in adult institutions.
	669	+
	670	+
	671	+
	672	+	(h)The Department of Youth and Community Restoration shall promulgate regulations to implement this section.
	673	+
	674	+
	675	+
	676	+	(i)This section shall become operative July 1, 2020.
	677	+
	678	+
	679	+
	680	+	(j)This section shall become inoperative on June 1, 2026, and, as of January 1, 2027, is repealed.
	681	+
	682	+
	683	+
	684	+	SEC. 17. Section 1752.1 of the Welfare and Institutions Code is amended to read:1752.1. (a) The director may enter into contracts with the approval of the Director of Finance with any county of this state, upon request of the board of supervisors thereof, wherein the Youth Authority Division of Juvenile Justice agrees to furnish diagnosis and treatment services and temporary detention during a period of study to the county for selected cases of persons eligible for commitment to the Youth Authority. Division of Juvenile Justice. The county shall reimburse the state for the cost of such those services, such the cost to be determined by the Director of the Youth Authority. Division of Juvenile Justice.The Youth Authority(b) The Division of Juvenile Justice shall present to the county, not more frequently than monthly, a claim for the amount due the state under this section which the county shall process and pay pursuant to the provisions of Chapter 4 (commencing with Section 29700) of Division 3 of Title 3 of the Government Code.(c) The Division of Juvenile Justice shall not accept new cases from the counties pursuant to this section on and after July 1, 2021.
	685	+
	686	+	SEC. 17. Section 1752.1 of the Welfare and Institutions Code is amended to read:
778	687
779	688		### SEC. 17.
780	689
781		-	~~24308~~.2. (a) For ~~taxable years beginning on or after January 1~~, ~~2020~~, ~~gross income does~~ not ~~include any~~ amount ~~awarded as a restaurant revitalization grant~~ pursuant to ~~Section 9009c~~ of Title 15 of the United States Code.(b) (1) Notwithstanding Section 24425, for taxable years beginning on or after January 1, 2020, paragraph (2) of Section 9673 of the American Rescue Plan Act of 2021 (Public Law 117-2) shall apply, except as provided.(2) Paragraph (2) of Section 9673 of the American Rescue Plan Act of 2021 (Public Law 117-2) is modified by substituting the phrase provided by paragraph (1) with provided by this section.(c) The Administrative Procedure Act (Chapter ~~3.5~~ (commencing with Section ~~11340~~) ~~of Part 1~~ of Division 3 of Title 2 of the Government Code) shall not ~~apply to any standard, criterion, procedure, determination, rule, notice, guideline, or any other guidance established or issued by~~ the ~~Franchise Tax Board~~ pursuant to this section~~.(d) This section shall be operative for taxable years beginning~~ on or after ~~January~~ 1, ~~2020~~.
	690	+	1752.1. (a) The director may enter into contracts with the approval of the Director of Finance with any county of this state, upon request of the board of supervisors thereof, wherein the Youth Authority Division of Juvenile Justice agrees to furnish diagnosis and treatment services and temporary detention during a period of study to the county for selected cases of persons eligible for commitment to the Youth Authority. Division of Juvenile Justice. The county shall reimburse the state for the cost of such those services, such the cost to be determined by the Director of the Youth Authority. Division of Juvenile Justice.The Youth Authority(b) The Division of Juvenile Justice shall present to the county, not more frequently than monthly, a claim for the amount due the state under this section which the county shall process and pay pursuant to the provisions of Chapter 4 (commencing with Section 29700) of Division 3 of Title 3 of the Government Code.(c) The Division of Juvenile Justice shall not accept new cases from the counties pursuant to this section on and after July 1, 2021.
782	691
783		-	~~24308~~.2. (a) For ~~taxable years beginning on or after January 1~~, ~~2020~~, ~~gross income does~~ not ~~include any~~ amount ~~awarded as a restaurant revitalization grant~~ pursuant to ~~Section 9009c~~ of Title 15 of the United States Code.(b) (1) Notwithstanding Section 24425, for taxable years beginning on or after January 1, 2020, paragraph (2) of Section 9673 of the American Rescue Plan Act of 2021 (Public Law 117-2) shall apply, except as provided.(2) Paragraph (2) of Section 9673 of the American Rescue Plan Act of 2021 (Public Law 117-2) is modified by substituting the phrase provided by paragraph (1) with provided by this section.(c) The Administrative Procedure Act (Chapter ~~3.5~~ (commencing with Section ~~11340~~) ~~of Part 1~~ of Division 3 of Title 2 of the Government Code) shall not ~~apply to any standard, criterion, procedure, determination, rule, notice, guideline, or any other guidance established or issued by~~ the ~~Franchise Tax Board~~ pursuant to this section~~.(d) This section shall be operative for taxable years beginning~~ on or after ~~January~~ 1, ~~2020~~.
	692	+	1752.1. (a) The director may enter into contracts with the approval of the Director of Finance with any county of this state, upon request of the board of supervisors thereof, wherein the Youth Authority Division of Juvenile Justice agrees to furnish diagnosis and treatment services and temporary detention during a period of study to the county for selected cases of persons eligible for commitment to the Youth Authority. Division of Juvenile Justice. The county shall reimburse the state for the cost of such those services, such the cost to be determined by the Director of the Youth Authority. Division of Juvenile Justice.The Youth Authority(b) The Division of Juvenile Justice shall present to the county, not more frequently than monthly, a claim for the amount due the state under this section which the county shall process and pay pursuant to the provisions of Chapter 4 (commencing with Section 29700) of Division 3 of Title 3 of the Government Code.(c) The Division of Juvenile Justice shall not accept new cases from the counties pursuant to this section on and after July 1, 2021.
784	693
785		-	~~24308~~.2. (a) For ~~taxable years beginning on or after January 1~~, ~~2020~~, ~~gross income does~~ not ~~include any~~ amount ~~awarded as a restaurant revitalization grant~~ pursuant to ~~Section 9009c~~ of Title 15 of the United States Code.(b) (1) Notwithstanding Section 24425, for taxable years beginning on or after January 1, 2020, paragraph (2) of Section 9673 of the American Rescue Plan Act of 2021 (Public Law 117-2) shall apply, except as provided.(2) Paragraph (2) of Section 9673 of the American Rescue Plan Act of 2021 (Public Law 117-2) is modified by substituting the phrase provided by paragraph (1) with provided by this section.(c) The Administrative Procedure Act (Chapter ~~3.5~~ (commencing with Section ~~11340~~) ~~of Part 1~~ of Division 3 of Title 2 of the Government Code) shall not ~~apply to any standard, criterion, procedure, determination, rule, notice, guideline, or any other guidance established or issued by~~ the ~~Franchise Tax Board~~ pursuant to this section~~.(d) This section shall be operative for taxable years beginning~~ on or after ~~January~~ 1, ~~2020~~.
	694	+	1752.1. (a) The director may enter into contracts with the approval of the Director of Finance with any county of this state, upon request of the board of supervisors thereof, wherein the Youth Authority Division of Juvenile Justice agrees to furnish diagnosis and treatment services and temporary detention during a period of study to the county for selected cases of persons eligible for commitment to the Youth Authority. Division of Juvenile Justice. The county shall reimburse the state for the cost of such those services, such the cost to be determined by the Director of the Youth Authority. Division of Juvenile Justice.The Youth Authority(b) The Division of Juvenile Justice shall present to the county, not more frequently than monthly, a claim for the amount due the state under this section which the county shall process and pay pursuant to the provisions of Chapter 4 (commencing with Section 29700) of Division 3 of Title 3 of the Government Code.(c) The Division of Juvenile Justice shall not accept new cases from the counties pursuant to this section on and after July 1, 2021.
786	695
787	696
788	697
789		-	~~24308~~.2. (a) ~~For taxable years beginning on or after January 1, 2020, gross income does not include any amount awarded as a restaurant revitalization grant pursuant to Section 9009c of Title 15~~ of the ~~United States Code~~.
	698	+	1752.1. (a) The director may enter into contracts with the approval of the Director of Finance with any county of this state, upon request of the board of supervisors thereof, wherein the Youth Authority Division of Juvenile Justice agrees to furnish diagnosis and treatment services and temporary detention during a period of study to the county for selected cases of persons eligible for commitment to the Youth Authority. Division of Juvenile Justice. The county shall reimburse the state for the cost of such those services, such the cost to be determined by the Director of the Youth Authority. Division of Juvenile Justice.
790	699
791		-	~~(b) (1) Notwithstanding Section 24425, for taxable years beginning on or after January 1, 2020, paragraph (2) of Section 9673 of~~ the ~~American Rescue Plan Act of 2021 (Public Law 117-2) shall apply, except as provided.~~
	700	+	The Youth Authority
792	701
793		-	(2) Paragraph (2) of Section 9673 of the American Rescue Plan Act of 2021 (Public Law 117-2) is modified by substituting the phrase provided by paragraph (1) with provided by this section.
794	702
795		-	(c) The Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) shall not apply to any standard, criterion, procedure, determination, rule, notice, guideline, or any other guidance established or issued by the Franchise Tax Board pursuant to this section.
796	703
797		-	(d) This section shall ~~be operative for taxable years beginning on or after January 1,~~ ~~2020~~.
	704	+	(b) The Division of Juvenile Justice shall present to the county, not more frequently than monthly, a claim for the amount due the state under this section which the county shall process and pay pursuant to the provisions of Chapter 4 (commencing with Section 29700) of Division 3 of Title 3 of the Government Code.
798	705
799		-	~~SEC. 18. Section 24308.3 is added to~~ the ~~Revenue and Taxation Code,~~ ~~to read:24308.3. (a) For taxable years beginning on or after January 1, 2019, gross income does~~ not ~~include any amount awarded as a shuttered venue operator grant~~ pursuant to ~~Section 9009a of Title 15 of the United States Code.(b) (1) Notwithstanding~~ Section ~~24425, for taxable years beginning~~ on or after ~~January~~ 1, ~~2019, subsection (d) of Section 278 of Division N of the Consolidated Appropriations Act,~~ 2021 ~~(Public Law 116-260) shall apply, except as provided~~.(2) Subsection (d) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) is modified by substituting the phrase For purposes of the Internal Revenue Code of 1986 with For purposes of this part.(3) Paragraphs (2) and (3) of subsection (d) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall not apply to an ineligible entity.(c) For purposes of this section:(1) Ineligible entity means a taxpayer that either:(A) Is a publicly-traded company.(B) Does not meet the reduction from the gross receipts requirements of Section 636(a)(37)(A)(iv)(bb) of Title 15 of the United States Code, as added by Section 311 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260).(2) Publicly-traded company means a publicly-traded entity as described in Section 342 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260).(d) This section shall be operative for taxable years beginning on or after January 1, 2019.
	706	+	(c) The Division of Juvenile Justice shall not accept new cases from the counties pursuant to this section on and after July 1, 2021.
800	707
801		-	SEC. 18. Section 24308.3 is added to the Revenue and Taxation Code, to read:
	708	+	SEC. 18. Section 1752.15 of the Welfare and Institutions Code is amended to read:1752.15. (a) The director may enter into contracts, with the approval of the Director of Finance, with any county of this state upon request of the board of supervisors thereof, wherein the Department of the Youth Authority Division of Juvenile Justice agrees to furnish temporary emergency detention facilities and necessary services incident thereto, for persons under the age of 18 years who are in the custody of the county probation officer pursuant to provisions of Chapter 2 (commencing with Section 200) of Part 1 of Division 2. Facilities of the department may be used only on a temporary basis when existing county juvenile facilities are rendered unsafe or inadequate because of a natural or manmade disaster, or when the continued presence of the minor or minors in the county juvenile facilities would, in the opinion of the judge of the juvenile court having jurisdiction over the minor, of the chief probation officer of the county, and of the director, present a significant risk of violence or escape. They may not be used for the detention of a person who is alleged to be or has been adjudged to be a person described by Section 300 or Section 601.Whenever(b) Whenever any person is detained in a California Youth Authority Division of Juvenile Justice facility located in a county other than the county which has contracted for services pursuant to this section, the county shall provide for adequate consultation between the minor and his or her the minors attorney; and, if the minors parent or guardian lacks adequate private means of transportation, and if the minor has been detained in the facility for more than 10 days, the county shall make reasonable efforts to provide for visitation between the minor and his or her the minors parents or guardian.The(c) The county shall reimburse the state for the cost of these services, the cost to be determined by the director. The department shall present to the county, not more than once a month, a claim for the amount due the state under this section which the county shall process and pay pursuant to the provisions of Chapter 4 (commencing with Section 29700) of Division 3 of Title 3 of the Government Code.(d) The Division of Juvenile Justice shall not accept new cases from the counties pursuant to this section on and after July 1, 2021.
	709	+
	710	+	SEC. 18. Section 1752.15 of the Welfare and Institutions Code is amended to read:
802	711
803	712		### SEC. 18.
804	713
805		-	~~24308~~.3. (a) For ~~taxable~~ years ~~beginning on or after January 1,~~ ~~2019, gross income does not include any amount awarded as a shuttered venue operator grant~~ pursuant to Section ~~9009a~~ of Title 15 of the ~~United States~~ Code.(~~b) (1) Notwithstanding Section 24425, for taxable years beginning on or after January 1, 2019, subsection (~~d) ~~of Section 278~~ of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall apply, except as provided.(2) Subsection (d) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) is modified by substituting the phrase For purposes of the Internal Revenue Code of 1986 with For purposes of this part.(3) Paragraphs (2) and (3) of subsection (d) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall not ~~apply to an ineligible entity.(c) For purposes of this section:(1) Ineligible entity means a taxpayer that either:(A) Is a publicly-traded company.(B) Does not meet the reduction~~ from the gross receipts requirements of Section 636(a)(37)(A)(iv)(bb) of Title 15 of the United States Code, as added by Section 311 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260).(2) Publicly-traded company means a publicly-traded entity as described in Section 342 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260).(d) This section ~~shall be operative for taxable years beginning~~ on or after ~~January~~ 1, ~~2019~~.
	714	+	1752.15. (a) The director may enter into contracts, with the approval of the Director of Finance, with any county of this state upon request of the board of supervisors thereof, wherein the Department of the Youth Authority Division of Juvenile Justice agrees to furnish temporary emergency detention facilities and necessary services incident thereto, for persons under the age of 18 years who are in the custody of the county probation officer pursuant to provisions of Chapter 2 (commencing with Section 200) of Part 1 of Division 2. Facilities of the department may be used only on a temporary basis when existing county juvenile facilities are rendered unsafe or inadequate because of a natural or manmade disaster, or when the continued presence of the minor or minors in the county juvenile facilities would, in the opinion of the judge of the juvenile court having jurisdiction over the minor, of the chief probation officer of the county, and of the director, present a significant risk of violence or escape. They may not be used for the detention of a person who is alleged to be or has been adjudged to be a person described by Section 300 or Section 601.Whenever(b) Whenever any person is detained in a California Youth Authority Division of Juvenile Justice facility located in a county other than the county which has contracted for services pursuant to this section, the county shall provide for adequate consultation between the minor and his or her the minors attorney; and, if the minors parent or guardian lacks adequate private means of transportation, and if the minor has been detained in the facility for more than 10 days, the county shall make reasonable efforts to provide for visitation between the minor and his or her the minors parents or guardian.The(c) The county shall reimburse the state for the cost of these services, the cost to be determined by the director. The department shall present to the county, not more than once a month, a claim for the amount due the state under this section which the county shall process and pay pursuant to the provisions of Chapter 4 (commencing with Section 29700) of Division 3 of Title 3 of the Government Code.(d) The Division of Juvenile Justice shall not accept new cases from the counties pursuant to this section on and after July 1, 2021.
806	715
807		-	~~24308~~.3. (a) For ~~taxable~~ years ~~beginning on or after January 1,~~ ~~2019, gross income does not include any amount awarded as a shuttered venue operator grant~~ pursuant to Section ~~9009a~~ of Title 15 of the ~~United States~~ Code.(~~b) (1) Notwithstanding Section 24425, for taxable years beginning on or after January 1, 2019, subsection (~~d) ~~of Section 278~~ of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall apply, except as provided.(2) Subsection (d) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) is modified by substituting the phrase For purposes of the Internal Revenue Code of 1986 with For purposes of this part.(3) Paragraphs (2) and (3) of subsection (d) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall not ~~apply to an ineligible entity.(c) For purposes of this section:(1) Ineligible entity means a taxpayer that either:(A) Is a publicly-traded company.(B) Does not meet the reduction~~ from the gross receipts requirements of Section 636(a)(37)(A)(iv)(bb) of Title 15 of the United States Code, as added by Section 311 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260).(2) Publicly-traded company means a publicly-traded entity as described in Section 342 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260).(d) This section ~~shall be operative for taxable years beginning~~ on or after ~~January~~ 1, ~~2019~~.
	716	+	1752.15. (a) The director may enter into contracts, with the approval of the Director of Finance, with any county of this state upon request of the board of supervisors thereof, wherein the Department of the Youth Authority Division of Juvenile Justice agrees to furnish temporary emergency detention facilities and necessary services incident thereto, for persons under the age of 18 years who are in the custody of the county probation officer pursuant to provisions of Chapter 2 (commencing with Section 200) of Part 1 of Division 2. Facilities of the department may be used only on a temporary basis when existing county juvenile facilities are rendered unsafe or inadequate because of a natural or manmade disaster, or when the continued presence of the minor or minors in the county juvenile facilities would, in the opinion of the judge of the juvenile court having jurisdiction over the minor, of the chief probation officer of the county, and of the director, present a significant risk of violence or escape. They may not be used for the detention of a person who is alleged to be or has been adjudged to be a person described by Section 300 or Section 601.Whenever(b) Whenever any person is detained in a California Youth Authority Division of Juvenile Justice facility located in a county other than the county which has contracted for services pursuant to this section, the county shall provide for adequate consultation between the minor and his or her the minors attorney; and, if the minors parent or guardian lacks adequate private means of transportation, and if the minor has been detained in the facility for more than 10 days, the county shall make reasonable efforts to provide for visitation between the minor and his or her the minors parents or guardian.The(c) The county shall reimburse the state for the cost of these services, the cost to be determined by the director. The department shall present to the county, not more than once a month, a claim for the amount due the state under this section which the county shall process and pay pursuant to the provisions of Chapter 4 (commencing with Section 29700) of Division 3 of Title 3 of the Government Code.(d) The Division of Juvenile Justice shall not accept new cases from the counties pursuant to this section on and after July 1, 2021.
808	717
809		-	~~24308~~.3. (a) For ~~taxable~~ years ~~beginning on or after January 1,~~ ~~2019, gross income does not include any amount awarded as a shuttered venue operator grant~~ pursuant to Section ~~9009a~~ of Title 15 of the ~~United States~~ Code.(~~b) (1) Notwithstanding Section 24425, for taxable years beginning on or after January 1, 2019, subsection (~~d) ~~of Section 278~~ of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall apply, except as provided.(2) Subsection (d) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) is modified by substituting the phrase For purposes of the Internal Revenue Code of 1986 with For purposes of this part.(3) Paragraphs (2) and (3) of subsection (d) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall not ~~apply to an ineligible entity.(c) For purposes of this section:(1) Ineligible entity means a taxpayer that either:(A) Is a publicly-traded company.(B) Does not meet the reduction~~ from the gross receipts requirements of Section 636(a)(37)(A)(iv)(bb) of Title 15 of the United States Code, as added by Section 311 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260).(2) Publicly-traded company means a publicly-traded entity as described in Section 342 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260).(d) This section ~~shall be operative for taxable years beginning~~ on or after ~~January~~ 1, ~~2019~~.
	718	+	1752.15. (a) The director may enter into contracts, with the approval of the Director of Finance, with any county of this state upon request of the board of supervisors thereof, wherein the Department of the Youth Authority Division of Juvenile Justice agrees to furnish temporary emergency detention facilities and necessary services incident thereto, for persons under the age of 18 years who are in the custody of the county probation officer pursuant to provisions of Chapter 2 (commencing with Section 200) of Part 1 of Division 2. Facilities of the department may be used only on a temporary basis when existing county juvenile facilities are rendered unsafe or inadequate because of a natural or manmade disaster, or when the continued presence of the minor or minors in the county juvenile facilities would, in the opinion of the judge of the juvenile court having jurisdiction over the minor, of the chief probation officer of the county, and of the director, present a significant risk of violence or escape. They may not be used for the detention of a person who is alleged to be or has been adjudged to be a person described by Section 300 or Section 601.Whenever(b) Whenever any person is detained in a California Youth Authority Division of Juvenile Justice facility located in a county other than the county which has contracted for services pursuant to this section, the county shall provide for adequate consultation between the minor and his or her the minors attorney; and, if the minors parent or guardian lacks adequate private means of transportation, and if the minor has been detained in the facility for more than 10 days, the county shall make reasonable efforts to provide for visitation between the minor and his or her the minors parents or guardian.The(c) The county shall reimburse the state for the cost of these services, the cost to be determined by the director. The department shall present to the county, not more than once a month, a claim for the amount due the state under this section which the county shall process and pay pursuant to the provisions of Chapter 4 (commencing with Section 29700) of Division 3 of Title 3 of the Government Code.(d) The Division of Juvenile Justice shall not accept new cases from the counties pursuant to this section on and after July 1, 2021.
810	719
811	720
812	721
813		-	~~24308~~.3. (a) For ~~taxable~~ years ~~beginning on or after January 1,~~ ~~2019, gross income does not include any amount awarded as a shuttered venue operator grant~~ pursuant to ~~Section 9009a~~ of ~~Title 15~~ of the ~~United States Code~~.
	722	+	1752.15. (a) The director may enter into contracts, with the approval of the Director of Finance, with any county of this state upon request of the board of supervisors thereof, wherein the Department of the Youth Authority Division of Juvenile Justice agrees to furnish temporary emergency detention facilities and necessary services incident thereto, for persons under the age of 18 years who are in the custody of the county probation officer pursuant to provisions of Chapter 2 (commencing with Section 200) of Part 1 of Division 2. Facilities of the department may be used only on a temporary basis when existing county juvenile facilities are rendered unsafe or inadequate because of a natural or manmade disaster, or when the continued presence of the minor or minors in the county juvenile facilities would, in the opinion of the judge of the juvenile court having jurisdiction over the minor, of the chief probation officer of the county, and of the director, present a significant risk of violence or escape. They may not be used for the detention of a person who is alleged to be or has been adjudged to be a person described by Section 300 or Section 601.
814	723
815		-	(b) (1) Notwithstanding Section 24425, for taxable years beginning on or after January 1, 2019, subsection (d) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall apply, except as provided.
	724	+	Whenever
816	725
817		-	(2) Subsection (d) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) is modified by substituting the phrase For purposes of the Internal Revenue Code of 1986 with For purposes of this part.
818	726
819		-	(3) Paragraphs (2) and (3) of subsection (d) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall not apply to an ineligible entity.
820	727
821		-	(c) For ~~purposes of~~ this section:
	728	+	(b) Whenever any person is detained in a California Youth Authority Division of Juvenile Justice facility located in a county other than the county which has contracted for services pursuant to this section, the county shall provide for adequate consultation between the minor and his or her the minors attorney; and, if the minors parent or guardian lacks adequate private means of transportation, and if the minor has been detained in the facility for more than 10 days, the county shall make reasonable efforts to provide for visitation between the minor and his or her the minors parents or guardian.
822	729
823		-	~~(1) Ineligible entity means a taxpayer that either:~~
	730	+	The
824	731
825		-	(A) Is a publicly-traded company.
826	732
827		-	(B) Does not meet the reduction from the gross receipts requirements of Section 636(a)(37)(A)(iv)(bb) of Title 15 of the United States Code, as added by Section 311 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260).
828	733
829		-	(2) ~~Publicly-traded company means~~ a ~~publicly-traded entity as described in~~ Section ~~342~~ of Division N of the ~~Consolidated Appropriations Act, 2021 (Public Law 116-260)~~.
	734	+	(c) The county shall reimburse the state for the cost of these services, the cost to be determined by the director. The department shall present to the county, not more than once a month, a claim for the amount due the state under this section which the county shall process and pay pursuant to the provisions of Chapter 4 (commencing with Section 29700) of Division 3 of Title 3 of the Government Code.
830	735
831		-	(d) This section ~~shall be operative for taxable years beginning~~ on or after ~~January~~ 1, ~~2019~~.
	736	+	(d) The Division of Juvenile Justice shall not accept new cases from the counties pursuant to this section on and after July 1, 2021.
832	737
833		-	SEC. 19. Section ~~24308~~.4 is ~~added to the Revenue and Taxation Code,~~ to read:~~24308~~.4. (a) For ~~taxable~~ years ~~beginning on~~ or after ~~January~~ 1, 2021, and ~~before~~ January 1, 2026, gross income does not include a bill credit or credits received by a customer from a community water system or wastewater treatment provider pursuant to the Water and Wastewater System Payments Under the American Rescue Plan Act of 2021 (Chapter 4.~~7 (commencing with Section 116773) of Part 12 of Division 104 of the Health and Safety Code). (b) This section shall remain in effect only until December 1, 2026, and as of that date is repealed.~~
	738	+	SEC. 19. Section 1767.35 of the Welfare and Institutions Code is amended to read:1767.35. (a) For a ward discharged from the Division of Juvenile Facilities Justice to the jurisdiction of the committing court, that person may be detained by probation, for the purpose of initiating proceedings to modify the wards conditions of supervision entered pursuant to paragraph (6) of subdivision (b) of Section 1766 if there is probable cause to believe that the ward has violated any of the court-ordered conditions of supervision. Within 15 days of detention, the committing court shall conduct a modification hearing for the ward. Pending the hearing, the ward may be detained by probation. At the hearing authorized by this subdivision, at which the ward shall be entitled to representation by counsel, the court shall consider the alleged violation of conditions of supervision, the risks and needs presented by the ward, and the supervision programs and sanctions that are available for the ward. Modification may include, as a sanction for a finding of a serious violation or a series of repeated violations of the conditions of supervision, an order for the reconfinement of a ward under 18 years of age in a juvenile facility, or for the reconfinement of a ward 18 years of age or older in a juvenile facility as authorized by Section 208.5, or for the reconfinement of a ward 18 years of age or older in a local adult facility as authorized by subdivision (b), or or, until July 1, 2021, the Division of Juvenile Facilities Justice as authorized by subdivision (c). The ward shall be fully informed by the court of the terms, conditions, responsibilities, and sanctions that are relevant to the order that is adopted by the court. The procedure of the supervision modification hearing, including the detention status of the ward in the event continuances are ordered by the court, shall be consistent with the rules, rights, and procedures applicable to delinquency disposition hearings, as described in Article 17 (commencing with Section 675) of Chapter 2 of Part 1 of Division 2.(b) Notwithstanding any other law, subject to Chapter 1.6. (commencing with Section 1980), and consistent with the maximum periods of time set forth in Section 731, in any case in which a person who was committed to and discharged from the Department of Corrections and Rehabilitation, Division of Juvenile Facilities Justice to the jurisdiction of the committing court attains 18 years of age prior to being discharged from the division or during the period of supervision by the committing court, the court may, upon a finding that the ward violated his or her their conditions of supervision and after consideration of the recommendation of the probation officer and pursuant to a hearing conducted according to the provisions of subdivision (a), order that the person be delivered to the custody of the sheriff for a period not to exceed a total of 90 days, as a custodial sanction consistent with the reentry goals and requirements imposed by the court pursuant to paragraph (6) of subdivision (b) of Section 1766. Notwithstanding any other law, the sheriff may allow the person to come into and remain in contact with other adults in the county jail or in any other county correctional facility in which he or she the person is housed.(c) Notwithstanding any other law and subject to Chapter 1.6 (commencing with Section 1980), in any case in which a person who was committed to and discharged from the Department of Corrections and Rehabilitation, Division of Juvenile Facilities, Justice, to the jurisdiction of the committing court, the juvenile court may, upon a finding that the ward violated his or her their conditions of supervision and after consideration of the recommendation of the probation officer and pursuant to a hearing conducted according to the provisions of subdivision (a), order that the person be returned to the custody of the Department of Corrections and Rehabilitation, Division of Juvenile Facilities, Justice, for a specified amount of time no shorter than 90 days and no longer than one year. This return shall be a sanction consistent with the reentry goals and requirements imposed by the court pursuant to paragraph (6) of subdivision (b) of Section 1766. A decision to return a ward to the custody of the Division of Juvenile Facilities Justice can only be made prior to July 1, 2021, and pursuant to the court making the following findings: (1) that appropriate local options and programs have been exhausted, and (2) that the ward has available confinement time that is greater than or equal to the length of the return.(d) Upon ordering a ward to the custody of the Division of Juvenile Facilities, Justice, the court shall send to the Division of Juvenile Facilities Justice a copy of its order along with a copy of the wards probation plans and history while under the supervision of the county.(e)This section shall become operative on January 1, 2013.
834	739
835		-	SEC. 19. Section ~~24308~~.4 is ~~added to the Revenue and Taxation Code,~~ to read:
	740	+	SEC. 19. Section 1767.35 of the Welfare and Institutions Code is amended to read:
836	741
837	742		### SEC. 19.
838	743
839		-	~~24308~~.4. (a) For ~~taxable~~ years ~~beginning on~~ or after ~~January~~ 1, 2021, and ~~before~~ January 1, 2026, gross income does not include a bill credit or credits received by a customer from a community water system or wastewater treatment provider pursuant to the Water and Wastewater System Payments Under the American Rescue Plan Act of 2021 (Chapter 4.~~7 (commencing with Section 116773) of Part 12 of Division 104 of the Health and Safety Code). (b) This section shall remain in effect only until December 1, 2026, and as of that date is repealed.~~
	744	+	1767.35. (a) For a ward discharged from the Division of Juvenile Facilities Justice to the jurisdiction of the committing court, that person may be detained by probation, for the purpose of initiating proceedings to modify the wards conditions of supervision entered pursuant to paragraph (6) of subdivision (b) of Section 1766 if there is probable cause to believe that the ward has violated any of the court-ordered conditions of supervision. Within 15 days of detention, the committing court shall conduct a modification hearing for the ward. Pending the hearing, the ward may be detained by probation. At the hearing authorized by this subdivision, at which the ward shall be entitled to representation by counsel, the court shall consider the alleged violation of conditions of supervision, the risks and needs presented by the ward, and the supervision programs and sanctions that are available for the ward. Modification may include, as a sanction for a finding of a serious violation or a series of repeated violations of the conditions of supervision, an order for the reconfinement of a ward under 18 years of age in a juvenile facility, or for the reconfinement of a ward 18 years of age or older in a juvenile facility as authorized by Section 208.5, or for the reconfinement of a ward 18 years of age or older in a local adult facility as authorized by subdivision (b), or or, until July 1, 2021, the Division of Juvenile Facilities Justice as authorized by subdivision (c). The ward shall be fully informed by the court of the terms, conditions, responsibilities, and sanctions that are relevant to the order that is adopted by the court. The procedure of the supervision modification hearing, including the detention status of the ward in the event continuances are ordered by the court, shall be consistent with the rules, rights, and procedures applicable to delinquency disposition hearings, as described in Article 17 (commencing with Section 675) of Chapter 2 of Part 1 of Division 2.(b) Notwithstanding any other law, subject to Chapter 1.6. (commencing with Section 1980), and consistent with the maximum periods of time set forth in Section 731, in any case in which a person who was committed to and discharged from the Department of Corrections and Rehabilitation, Division of Juvenile Facilities Justice to the jurisdiction of the committing court attains 18 years of age prior to being discharged from the division or during the period of supervision by the committing court, the court may, upon a finding that the ward violated his or her their conditions of supervision and after consideration of the recommendation of the probation officer and pursuant to a hearing conducted according to the provisions of subdivision (a), order that the person be delivered to the custody of the sheriff for a period not to exceed a total of 90 days, as a custodial sanction consistent with the reentry goals and requirements imposed by the court pursuant to paragraph (6) of subdivision (b) of Section 1766. Notwithstanding any other law, the sheriff may allow the person to come into and remain in contact with other adults in the county jail or in any other county correctional facility in which he or she the person is housed.(c) Notwithstanding any other law and subject to Chapter 1.6 (commencing with Section 1980), in any case in which a person who was committed to and discharged from the Department of Corrections and Rehabilitation, Division of Juvenile Facilities, Justice, to the jurisdiction of the committing court, the juvenile court may, upon a finding that the ward violated his or her their conditions of supervision and after consideration of the recommendation of the probation officer and pursuant to a hearing conducted according to the provisions of subdivision (a), order that the person be returned to the custody of the Department of Corrections and Rehabilitation, Division of Juvenile Facilities, Justice, for a specified amount of time no shorter than 90 days and no longer than one year. This return shall be a sanction consistent with the reentry goals and requirements imposed by the court pursuant to paragraph (6) of subdivision (b) of Section 1766. A decision to return a ward to the custody of the Division of Juvenile Facilities Justice can only be made prior to July 1, 2021, and pursuant to the court making the following findings: (1) that appropriate local options and programs have been exhausted, and (2) that the ward has available confinement time that is greater than or equal to the length of the return.(d) Upon ordering a ward to the custody of the Division of Juvenile Facilities, Justice, the court shall send to the Division of Juvenile Facilities Justice a copy of its order along with a copy of the wards probation plans and history while under the supervision of the county.(e)This section shall become operative on January 1, 2013.
840	745
841		-	~~24308~~.4. (a) For ~~taxable~~ years ~~beginning on~~ or after ~~January~~ 1, 2021, and ~~before~~ January 1, 2026, gross income does not include a bill credit or credits received by a customer from a community water system or wastewater treatment provider pursuant to the Water and Wastewater System Payments Under the American Rescue Plan Act of 2021 (Chapter 4.~~7 (commencing with Section 116773) of Part 12 of Division 104 of the Health and Safety Code). (b) This section shall remain in effect only until December 1, 2026, and as of that date is repealed.~~
	746	+	1767.35. (a) For a ward discharged from the Division of Juvenile Facilities Justice to the jurisdiction of the committing court, that person may be detained by probation, for the purpose of initiating proceedings to modify the wards conditions of supervision entered pursuant to paragraph (6) of subdivision (b) of Section 1766 if there is probable cause to believe that the ward has violated any of the court-ordered conditions of supervision. Within 15 days of detention, the committing court shall conduct a modification hearing for the ward. Pending the hearing, the ward may be detained by probation. At the hearing authorized by this subdivision, at which the ward shall be entitled to representation by counsel, the court shall consider the alleged violation of conditions of supervision, the risks and needs presented by the ward, and the supervision programs and sanctions that are available for the ward. Modification may include, as a sanction for a finding of a serious violation or a series of repeated violations of the conditions of supervision, an order for the reconfinement of a ward under 18 years of age in a juvenile facility, or for the reconfinement of a ward 18 years of age or older in a juvenile facility as authorized by Section 208.5, or for the reconfinement of a ward 18 years of age or older in a local adult facility as authorized by subdivision (b), or or, until July 1, 2021, the Division of Juvenile Facilities Justice as authorized by subdivision (c). The ward shall be fully informed by the court of the terms, conditions, responsibilities, and sanctions that are relevant to the order that is adopted by the court. The procedure of the supervision modification hearing, including the detention status of the ward in the event continuances are ordered by the court, shall be consistent with the rules, rights, and procedures applicable to delinquency disposition hearings, as described in Article 17 (commencing with Section 675) of Chapter 2 of Part 1 of Division 2.(b) Notwithstanding any other law, subject to Chapter 1.6. (commencing with Section 1980), and consistent with the maximum periods of time set forth in Section 731, in any case in which a person who was committed to and discharged from the Department of Corrections and Rehabilitation, Division of Juvenile Facilities Justice to the jurisdiction of the committing court attains 18 years of age prior to being discharged from the division or during the period of supervision by the committing court, the court may, upon a finding that the ward violated his or her their conditions of supervision and after consideration of the recommendation of the probation officer and pursuant to a hearing conducted according to the provisions of subdivision (a), order that the person be delivered to the custody of the sheriff for a period not to exceed a total of 90 days, as a custodial sanction consistent with the reentry goals and requirements imposed by the court pursuant to paragraph (6) of subdivision (b) of Section 1766. Notwithstanding any other law, the sheriff may allow the person to come into and remain in contact with other adults in the county jail or in any other county correctional facility in which he or she the person is housed.(c) Notwithstanding any other law and subject to Chapter 1.6 (commencing with Section 1980), in any case in which a person who was committed to and discharged from the Department of Corrections and Rehabilitation, Division of Juvenile Facilities, Justice, to the jurisdiction of the committing court, the juvenile court may, upon a finding that the ward violated his or her their conditions of supervision and after consideration of the recommendation of the probation officer and pursuant to a hearing conducted according to the provisions of subdivision (a), order that the person be returned to the custody of the Department of Corrections and Rehabilitation, Division of Juvenile Facilities, Justice, for a specified amount of time no shorter than 90 days and no longer than one year. This return shall be a sanction consistent with the reentry goals and requirements imposed by the court pursuant to paragraph (6) of subdivision (b) of Section 1766. A decision to return a ward to the custody of the Division of Juvenile Facilities Justice can only be made prior to July 1, 2021, and pursuant to the court making the following findings: (1) that appropriate local options and programs have been exhausted, and (2) that the ward has available confinement time that is greater than or equal to the length of the return.(d) Upon ordering a ward to the custody of the Division of Juvenile Facilities, Justice, the court shall send to the Division of Juvenile Facilities Justice a copy of its order along with a copy of the wards probation plans and history while under the supervision of the county.(e)This section shall become operative on January 1, 2013.
842	747
843		-	~~24308~~.4. (a) For ~~taxable~~ years ~~beginning on~~ or after ~~January~~ 1, 2021, and ~~before~~ January 1, 2026, gross income does not include a bill credit or credits received by a customer from a community water system or wastewater treatment provider pursuant to the Water and Wastewater System Payments Under the American Rescue Plan Act of 2021 (Chapter 4.~~7 (commencing with Section 116773) of Part 12 of Division 104 of the Health and Safety Code). (b) This section shall remain in effect only until December 1, 2026, and as of that date is repealed.~~
	748	+	1767.35. (a) For a ward discharged from the Division of Juvenile Facilities Justice to the jurisdiction of the committing court, that person may be detained by probation, for the purpose of initiating proceedings to modify the wards conditions of supervision entered pursuant to paragraph (6) of subdivision (b) of Section 1766 if there is probable cause to believe that the ward has violated any of the court-ordered conditions of supervision. Within 15 days of detention, the committing court shall conduct a modification hearing for the ward. Pending the hearing, the ward may be detained by probation. At the hearing authorized by this subdivision, at which the ward shall be entitled to representation by counsel, the court shall consider the alleged violation of conditions of supervision, the risks and needs presented by the ward, and the supervision programs and sanctions that are available for the ward. Modification may include, as a sanction for a finding of a serious violation or a series of repeated violations of the conditions of supervision, an order for the reconfinement of a ward under 18 years of age in a juvenile facility, or for the reconfinement of a ward 18 years of age or older in a juvenile facility as authorized by Section 208.5, or for the reconfinement of a ward 18 years of age or older in a local adult facility as authorized by subdivision (b), or or, until July 1, 2021, the Division of Juvenile Facilities Justice as authorized by subdivision (c). The ward shall be fully informed by the court of the terms, conditions, responsibilities, and sanctions that are relevant to the order that is adopted by the court. The procedure of the supervision modification hearing, including the detention status of the ward in the event continuances are ordered by the court, shall be consistent with the rules, rights, and procedures applicable to delinquency disposition hearings, as described in Article 17 (commencing with Section 675) of Chapter 2 of Part 1 of Division 2.(b) Notwithstanding any other law, subject to Chapter 1.6. (commencing with Section 1980), and consistent with the maximum periods of time set forth in Section 731, in any case in which a person who was committed to and discharged from the Department of Corrections and Rehabilitation, Division of Juvenile Facilities Justice to the jurisdiction of the committing court attains 18 years of age prior to being discharged from the division or during the period of supervision by the committing court, the court may, upon a finding that the ward violated his or her their conditions of supervision and after consideration of the recommendation of the probation officer and pursuant to a hearing conducted according to the provisions of subdivision (a), order that the person be delivered to the custody of the sheriff for a period not to exceed a total of 90 days, as a custodial sanction consistent with the reentry goals and requirements imposed by the court pursuant to paragraph (6) of subdivision (b) of Section 1766. Notwithstanding any other law, the sheriff may allow the person to come into and remain in contact with other adults in the county jail or in any other county correctional facility in which he or she the person is housed.(c) Notwithstanding any other law and subject to Chapter 1.6 (commencing with Section 1980), in any case in which a person who was committed to and discharged from the Department of Corrections and Rehabilitation, Division of Juvenile Facilities, Justice, to the jurisdiction of the committing court, the juvenile court may, upon a finding that the ward violated his or her their conditions of supervision and after consideration of the recommendation of the probation officer and pursuant to a hearing conducted according to the provisions of subdivision (a), order that the person be returned to the custody of the Department of Corrections and Rehabilitation, Division of Juvenile Facilities, Justice, for a specified amount of time no shorter than 90 days and no longer than one year. This return shall be a sanction consistent with the reentry goals and requirements imposed by the court pursuant to paragraph (6) of subdivision (b) of Section 1766. A decision to return a ward to the custody of the Division of Juvenile Facilities Justice can only be made prior to July 1, 2021, and pursuant to the court making the following findings: (1) that appropriate local options and programs have been exhausted, and (2) that the ward has available confinement time that is greater than or equal to the length of the return.(d) Upon ordering a ward to the custody of the Division of Juvenile Facilities, Justice, the court shall send to the Division of Juvenile Facilities Justice a copy of its order along with a copy of the wards probation plans and history while under the supervision of the county.(e)This section shall become operative on January 1, 2013.
844	749
845	750
846	751
847		-	~~24308~~.4. (a) For ~~taxable~~ years ~~beginning on~~ or ~~after January~~ 1, 2021, ~~and before January 1,~~ ~~2026, gross income does not include a bill credit or credits received~~ by ~~a customer from a community water system or wastewater treatment provider pursuant~~ to the ~~Water~~ and ~~Wastewater System Payments Under the American Rescue Plan Act of 2021 (Chapter 4.7~~ (commencing with Section ~~116773~~) of Part 12 of Division ~~104 of the Health and Safety Code)~~.
	752	+	1767.35. (a) For a ward discharged from the Division of Juvenile Facilities Justice to the jurisdiction of the committing court, that person may be detained by probation, for the purpose of initiating proceedings to modify the wards conditions of supervision entered pursuant to paragraph (6) of subdivision (b) of Section 1766 if there is probable cause to believe that the ward has violated any of the court-ordered conditions of supervision. Within 15 days of detention, the committing court shall conduct a modification hearing for the ward. Pending the hearing, the ward may be detained by probation. At the hearing authorized by this subdivision, at which the ward shall be entitled to representation by counsel, the court shall consider the alleged violation of conditions of supervision, the risks and needs presented by the ward, and the supervision programs and sanctions that are available for the ward. Modification may include, as a sanction for a finding of a serious violation or a series of repeated violations of the conditions of supervision, an order for the reconfinement of a ward under 18 years of age in a juvenile facility, or for the reconfinement of a ward 18 years of age or older in a juvenile facility as authorized by Section 208.5, or for the reconfinement of a ward 18 years of age or older in a local adult facility as authorized by subdivision (b), or or, until July 1, 2021, the Division of Juvenile Facilities Justice as authorized by subdivision (c). The ward shall be fully informed by the court of the terms, conditions, responsibilities, and sanctions that are relevant to the order that is adopted by the court. The procedure of the supervision modification hearing, including the detention status of the ward in the event continuances are ordered by the court, shall be consistent with the rules, rights, and procedures applicable to delinquency disposition hearings, as described in Article 17 (commencing with Section 675) of Chapter 2 of Part 1 of Division 2.
848	753
849		-	(b) ~~This~~ section ~~shall~~ remain in ~~effect only until December 1,~~ ~~2026, and as of that date~~ is ~~repealed~~.
	754	+	(b) Notwithstanding any other law, subject to Chapter 1.6. (commencing with Section 1980), and consistent with the maximum periods of time set forth in Section 731, in any case in which a person who was committed to and discharged from the Department of Corrections and Rehabilitation, Division of Juvenile Facilities Justice to the jurisdiction of the committing court attains 18 years of age prior to being discharged from the division or during the period of supervision by the committing court, the court may, upon a finding that the ward violated his or her their conditions of supervision and after consideration of the recommendation of the probation officer and pursuant to a hearing conducted according to the provisions of subdivision (a), order that the person be delivered to the custody of the sheriff for a period not to exceed a total of 90 days, as a custodial sanction consistent with the reentry goals and requirements imposed by the court pursuant to paragraph (6) of subdivision (b) of Section 1766. Notwithstanding any other law, the sheriff may allow the person to come into and remain in contact with other adults in the county jail or in any other county correctional facility in which he or she the person is housed.
850	755
851		-	~~SEC~~. ~~20.~~ Section ~~24308.5 is added~~ to the ~~Revenue~~ and ~~Taxation Code,~~ to ~~read:24308.5.~~ (a) For ~~taxable years beginning on or after January~~ 1, 2021, and ~~before January 1, 2026, gross income does not include a bill credit or credits received by a customer from a utility applicant~~ pursuant to the ~~California Arrearage Payment Program Under~~ the ~~American Rescue Plan Act of 2021~~ (~~Article 12~~ (~~commencing with Section 16429.5~~) ~~of Chapter 2 of Part 2 of Division 4 of Title 2~~ of the ~~Government Code)~~.~~(b) This section shall remain in effect only until December 1, 2026, and as of that date is repealed.~~
	756	+	(c) Notwithstanding any other law and subject to Chapter 1.6 (commencing with Section 1980), in any case in which a person who was committed to and discharged from the Department of Corrections and Rehabilitation, Division of Juvenile Facilities, Justice, to the jurisdiction of the committing court, the juvenile court may, upon a finding that the ward violated his or her their conditions of supervision and after consideration of the recommendation of the probation officer and pursuant to a hearing conducted according to the provisions of subdivision (a), order that the person be returned to the custody of the Department of Corrections and Rehabilitation, Division of Juvenile Facilities, Justice, for a specified amount of time no shorter than 90 days and no longer than one year. This return shall be a sanction consistent with the reentry goals and requirements imposed by the court pursuant to paragraph (6) of subdivision (b) of Section 1766. A decision to return a ward to the custody of the Division of Juvenile Facilities Justice can only be made prior to July 1, 2021, and pursuant to the court making the following findings: (1) that appropriate local options and programs have been exhausted, and (2) that the ward has available confinement time that is greater than or equal to the length of the return.
852	757
853		-	SEC. 20. Section 24308.5 is added to the Revenue and Taxation Code, to read:
	758	+	(d) Upon ordering a ward to the custody of the Division of Juvenile Facilities, Justice, the court shall send to the Division of Juvenile Facilities Justice a copy of its order along with a copy of the wards probation plans and history while under the supervision of the county.
	759	+
	760	+	(e)This section shall become operative on January 1, 2013.
	761	+
	762	+
	763	+
	764	+	SEC. 20. Section 1991 of the Welfare and Institutions Code is amended to read:1991. (a) Commencing with the 2021-22 202122 fiscal year, and annually thereafter, there shall be an allocation to the county for use by the county to provide appropriate rehabilitative housing and supervision services for the population specified in subdivision (b) of Section 1990. In making allocations, the Board of Supervisors shall consider the plan required in Section 1995. Any entity receiving a direct allocation of funding from the Board of Supervisors under this section for any secure residential placement for court ordered detention will be subject to existing regulations. A With the exception of county probation departments, a local public agency that has primary responsibility for prosecuting or making arrests or detentions shall not provide rehabilitative and supervision services for the population specified in subdivision (b) of Section 1990 or receive funding pursuant to this section:(1) For the 2021-22 202122 fiscal year, thirty-nine million nine hundred forty-nine thousand dollars ($39,949,000) shall be appropriated from the General Fund to provide appropriate rehabilitative and supervision services for the population specified in subdivision (b) of Section 1990 based on a projected average daily population of 177.6 wards. The by-county distribution shall be based on 30 percent of the per-county percentage of the average number of wards committed to the Department of Corrections and Rehabilitation, Division of Juvenile Justice, as of December 31, 2018, June 30, 2019, and December 31, 2019, 50 percent of the by-county distribution of juveniles adjudicated for certain violent and serious felony crime categories per 2018 Juvenile Court and Probation Statistical System data, updated annually based on the most recently available data, and 20 percent of the by-county distribution of all individuals between 10 and 17 years of age, inclusive, from the preceding calendar year.(2) For the 2022-23 202223 fiscal year, one hundred eighteen million three hundred thirty-nine thousand dollars ($118,339,000) shall be appropriated from the General Fund to provide appropriate rehabilitative and supervision services for the population specified in subdivision (b) of Section 1990. The by-county distribution is based on the per-county percentage referenced in paragraph (1) of subdivision (a) and a projected average daily population of 526 wards.(3) For the 2023-24 202324 fiscal year, one hundred ninety two million thirty-seven thousand dollars ($192,037,000) shall be appropriated from the General Fund to provide appropriate rehabilitative and supervision services for the population specified in subdivision (b) Section 1990. The by-county distribution is based the per-county percentage referenced in paragraph (1) of subdivision (a) and a projected average daily population of 853.5 wards.(4) For the 2024-25 202425 fiscal year and each year thereafter, two hundred eight million eight hundred thousand dollars ($208,800,000) shall be appropriated from the General Fund to provide appropriate rehabilitative and supervision services for the population specified in subdivision (b) of Section 1990 based on a projected average daily population of 928 wards. The Governor and the Legislature shall work with stakeholders to establish a distribution methodology for the funding in this paragraph by January 10, 2024, and ongoing that improves outcomes for this population.(5) The Department of Finance shall increase to no more than two hundred fifty thousand dollars ($250,000) the award amount for any county whose allocation as calculated pursuant to paragraphs (1), (2), (3), and (4) totals less than two hundred fifty thousand dollars ($250,000). The appropriation in paragraphs (1), (2), (3), and (4) shall be increased by the amount(s) needed to bring each counties allocation to $250,000.(b) Commencing with the 2024-25 202425 fiscal year, the allocations determined by paragraphs (4) and (5) of subdivision (a) and shall be adjusted annually by a rate commensurate with any applicable growth in the Juvenile Justice Growth Special Account in the prior fiscal year. Each year this growth shall become additive to the next years base allocation.(c) By September July 1, 2021, and each September July 1 annually thereafter, the Department of Finance shall allocate the amount calculated in paragraphs (1), (2), (3), (4), and (5) of subdivision (a) from the General Fund and provide a schedule for the allocation of funds among counties to the State Controller. The State Controller shall allocate these funds in monthly installments according to the same schedule for allocations from the Youthful Offender Block Grant Special Account. no later than August 1 each year, consistent with the schedule provided by the Department of Finance.
	765	+
	766	+	SEC. 20. Section 1991 of the Welfare and Institutions Code is amended to read:
854	767
855	768		### SEC. 20.
856	769
857		-	~~24308.5~~. (a) For ~~taxable~~ years ~~beginning~~ on ~~or after~~ January 1, 2021, and ~~before January~~ 1, ~~2026~~, ~~gross income does not include~~ a ~~bill credit or credits received by a customer from a utility applicant pursuant~~ to the ~~California Arrearage Payment Program Under~~ the ~~American Rescue Plan Act~~ of ~~2021 (Article 12 (commencing with Section 16429~~.~~5) of Chapter 2 of Part 2 of Division 4 of Title 2 of the Government Code).(b) This section shall remain in effect only until December 1, 2026, and as of that date is repealed.~~
	770	+	1991. (a) Commencing with the 2021-22 202122 fiscal year, and annually thereafter, there shall be an allocation to the county for use by the county to provide appropriate rehabilitative housing and supervision services for the population specified in subdivision (b) of Section 1990. In making allocations, the Board of Supervisors shall consider the plan required in Section 1995. Any entity receiving a direct allocation of funding from the Board of Supervisors under this section for any secure residential placement for court ordered detention will be subject to existing regulations. A With the exception of county probation departments, a local public agency that has primary responsibility for prosecuting or making arrests or detentions shall not provide rehabilitative and supervision services for the population specified in subdivision (b) of Section 1990 or receive funding pursuant to this section:(1) For the 2021-22 202122 fiscal year, thirty-nine million nine hundred forty-nine thousand dollars ($39,949,000) shall be appropriated from the General Fund to provide appropriate rehabilitative and supervision services for the population specified in subdivision (b) of Section 1990 based on a projected average daily population of 177.6 wards. The by-county distribution shall be based on 30 percent of the per-county percentage of the average number of wards committed to the Department of Corrections and Rehabilitation, Division of Juvenile Justice, as of December 31, 2018, June 30, 2019, and December 31, 2019, 50 percent of the by-county distribution of juveniles adjudicated for certain violent and serious felony crime categories per 2018 Juvenile Court and Probation Statistical System data, updated annually based on the most recently available data, and 20 percent of the by-county distribution of all individuals between 10 and 17 years of age, inclusive, from the preceding calendar year.(2) For the 2022-23 202223 fiscal year, one hundred eighteen million three hundred thirty-nine thousand dollars ($118,339,000) shall be appropriated from the General Fund to provide appropriate rehabilitative and supervision services for the population specified in subdivision (b) of Section 1990. The by-county distribution is based on the per-county percentage referenced in paragraph (1) of subdivision (a) and a projected average daily population of 526 wards.(3) For the 2023-24 202324 fiscal year, one hundred ninety two million thirty-seven thousand dollars ($192,037,000) shall be appropriated from the General Fund to provide appropriate rehabilitative and supervision services for the population specified in subdivision (b) Section 1990. The by-county distribution is based the per-county percentage referenced in paragraph (1) of subdivision (a) and a projected average daily population of 853.5 wards.(4) For the 2024-25 202425 fiscal year and each year thereafter, two hundred eight million eight hundred thousand dollars ($208,800,000) shall be appropriated from the General Fund to provide appropriate rehabilitative and supervision services for the population specified in subdivision (b) of Section 1990 based on a projected average daily population of 928 wards. The Governor and the Legislature shall work with stakeholders to establish a distribution methodology for the funding in this paragraph by January 10, 2024, and ongoing that improves outcomes for this population.(5) The Department of Finance shall increase to no more than two hundred fifty thousand dollars ($250,000) the award amount for any county whose allocation as calculated pursuant to paragraphs (1), (2), (3), and (4) totals less than two hundred fifty thousand dollars ($250,000). The appropriation in paragraphs (1), (2), (3), and (4) shall be increased by the amount(s) needed to bring each counties allocation to $250,000.(b) Commencing with the 2024-25 202425 fiscal year, the allocations determined by paragraphs (4) and (5) of subdivision (a) and shall be adjusted annually by a rate commensurate with any applicable growth in the Juvenile Justice Growth Special Account in the prior fiscal year. Each year this growth shall become additive to the next years base allocation.(c) By September July 1, 2021, and each September July 1 annually thereafter, the Department of Finance shall allocate the amount calculated in paragraphs (1), (2), (3), (4), and (5) of subdivision (a) from the General Fund and provide a schedule for the allocation of funds among counties to the State Controller. The State Controller shall allocate these funds in monthly installments according to the same schedule for allocations from the Youthful Offender Block Grant Special Account. no later than August 1 each year, consistent with the schedule provided by the Department of Finance.
858	771
859		-	~~24308.5~~. (a) For ~~taxable~~ years ~~beginning~~ on ~~or after~~ January 1, 2021, and ~~before January~~ 1, ~~2026~~, ~~gross income does not include~~ a ~~bill credit or credits received by a customer from a utility applicant pursuant~~ to the ~~California Arrearage Payment Program Under~~ the ~~American Rescue Plan Act~~ of ~~2021 (Article 12 (commencing with Section 16429~~.~~5) of Chapter 2 of Part 2 of Division 4 of Title 2 of the Government Code).(b) This section shall remain in effect only until December 1, 2026, and as of that date is repealed.~~
	772	+	1991. (a) Commencing with the 2021-22 202122 fiscal year, and annually thereafter, there shall be an allocation to the county for use by the county to provide appropriate rehabilitative housing and supervision services for the population specified in subdivision (b) of Section 1990. In making allocations, the Board of Supervisors shall consider the plan required in Section 1995. Any entity receiving a direct allocation of funding from the Board of Supervisors under this section for any secure residential placement for court ordered detention will be subject to existing regulations. A With the exception of county probation departments, a local public agency that has primary responsibility for prosecuting or making arrests or detentions shall not provide rehabilitative and supervision services for the population specified in subdivision (b) of Section 1990 or receive funding pursuant to this section:(1) For the 2021-22 202122 fiscal year, thirty-nine million nine hundred forty-nine thousand dollars ($39,949,000) shall be appropriated from the General Fund to provide appropriate rehabilitative and supervision services for the population specified in subdivision (b) of Section 1990 based on a projected average daily population of 177.6 wards. The by-county distribution shall be based on 30 percent of the per-county percentage of the average number of wards committed to the Department of Corrections and Rehabilitation, Division of Juvenile Justice, as of December 31, 2018, June 30, 2019, and December 31, 2019, 50 percent of the by-county distribution of juveniles adjudicated for certain violent and serious felony crime categories per 2018 Juvenile Court and Probation Statistical System data, updated annually based on the most recently available data, and 20 percent of the by-county distribution of all individuals between 10 and 17 years of age, inclusive, from the preceding calendar year.(2) For the 2022-23 202223 fiscal year, one hundred eighteen million three hundred thirty-nine thousand dollars ($118,339,000) shall be appropriated from the General Fund to provide appropriate rehabilitative and supervision services for the population specified in subdivision (b) of Section 1990. The by-county distribution is based on the per-county percentage referenced in paragraph (1) of subdivision (a) and a projected average daily population of 526 wards.(3) For the 2023-24 202324 fiscal year, one hundred ninety two million thirty-seven thousand dollars ($192,037,000) shall be appropriated from the General Fund to provide appropriate rehabilitative and supervision services for the population specified in subdivision (b) Section 1990. The by-county distribution is based the per-county percentage referenced in paragraph (1) of subdivision (a) and a projected average daily population of 853.5 wards.(4) For the 2024-25 202425 fiscal year and each year thereafter, two hundred eight million eight hundred thousand dollars ($208,800,000) shall be appropriated from the General Fund to provide appropriate rehabilitative and supervision services for the population specified in subdivision (b) of Section 1990 based on a projected average daily population of 928 wards. The Governor and the Legislature shall work with stakeholders to establish a distribution methodology for the funding in this paragraph by January 10, 2024, and ongoing that improves outcomes for this population.(5) The Department of Finance shall increase to no more than two hundred fifty thousand dollars ($250,000) the award amount for any county whose allocation as calculated pursuant to paragraphs (1), (2), (3), and (4) totals less than two hundred fifty thousand dollars ($250,000). The appropriation in paragraphs (1), (2), (3), and (4) shall be increased by the amount(s) needed to bring each counties allocation to $250,000.(b) Commencing with the 2024-25 202425 fiscal year, the allocations determined by paragraphs (4) and (5) of subdivision (a) and shall be adjusted annually by a rate commensurate with any applicable growth in the Juvenile Justice Growth Special Account in the prior fiscal year. Each year this growth shall become additive to the next years base allocation.(c) By September July 1, 2021, and each September July 1 annually thereafter, the Department of Finance shall allocate the amount calculated in paragraphs (1), (2), (3), (4), and (5) of subdivision (a) from the General Fund and provide a schedule for the allocation of funds among counties to the State Controller. The State Controller shall allocate these funds in monthly installments according to the same schedule for allocations from the Youthful Offender Block Grant Special Account. no later than August 1 each year, consistent with the schedule provided by the Department of Finance.
860	773
861		-	~~24308.5~~. (a) For ~~taxable~~ years ~~beginning~~ on ~~or after~~ January 1, 2021, and ~~before January~~ 1, ~~2026~~, ~~gross income does not include~~ a ~~bill credit or credits received by a customer from a utility applicant pursuant~~ to the ~~California Arrearage Payment Program Under~~ the ~~American Rescue Plan Act~~ of ~~2021 (Article 12 (commencing with Section 16429~~.~~5) of Chapter 2 of Part 2 of Division 4 of Title 2 of the Government Code).(b) This section shall remain in effect only until December 1, 2026, and as of that date is repealed.~~
	774	+	1991. (a) Commencing with the 2021-22 202122 fiscal year, and annually thereafter, there shall be an allocation to the county for use by the county to provide appropriate rehabilitative housing and supervision services for the population specified in subdivision (b) of Section 1990. In making allocations, the Board of Supervisors shall consider the plan required in Section 1995. Any entity receiving a direct allocation of funding from the Board of Supervisors under this section for any secure residential placement for court ordered detention will be subject to existing regulations. A With the exception of county probation departments, a local public agency that has primary responsibility for prosecuting or making arrests or detentions shall not provide rehabilitative and supervision services for the population specified in subdivision (b) of Section 1990 or receive funding pursuant to this section:(1) For the 2021-22 202122 fiscal year, thirty-nine million nine hundred forty-nine thousand dollars ($39,949,000) shall be appropriated from the General Fund to provide appropriate rehabilitative and supervision services for the population specified in subdivision (b) of Section 1990 based on a projected average daily population of 177.6 wards. The by-county distribution shall be based on 30 percent of the per-county percentage of the average number of wards committed to the Department of Corrections and Rehabilitation, Division of Juvenile Justice, as of December 31, 2018, June 30, 2019, and December 31, 2019, 50 percent of the by-county distribution of juveniles adjudicated for certain violent and serious felony crime categories per 2018 Juvenile Court and Probation Statistical System data, updated annually based on the most recently available data, and 20 percent of the by-county distribution of all individuals between 10 and 17 years of age, inclusive, from the preceding calendar year.(2) For the 2022-23 202223 fiscal year, one hundred eighteen million three hundred thirty-nine thousand dollars ($118,339,000) shall be appropriated from the General Fund to provide appropriate rehabilitative and supervision services for the population specified in subdivision (b) of Section 1990. The by-county distribution is based on the per-county percentage referenced in paragraph (1) of subdivision (a) and a projected average daily population of 526 wards.(3) For the 2023-24 202324 fiscal year, one hundred ninety two million thirty-seven thousand dollars ($192,037,000) shall be appropriated from the General Fund to provide appropriate rehabilitative and supervision services for the population specified in subdivision (b) Section 1990. The by-county distribution is based the per-county percentage referenced in paragraph (1) of subdivision (a) and a projected average daily population of 853.5 wards.(4) For the 2024-25 202425 fiscal year and each year thereafter, two hundred eight million eight hundred thousand dollars ($208,800,000) shall be appropriated from the General Fund to provide appropriate rehabilitative and supervision services for the population specified in subdivision (b) of Section 1990 based on a projected average daily population of 928 wards. The Governor and the Legislature shall work with stakeholders to establish a distribution methodology for the funding in this paragraph by January 10, 2024, and ongoing that improves outcomes for this population.(5) The Department of Finance shall increase to no more than two hundred fifty thousand dollars ($250,000) the award amount for any county whose allocation as calculated pursuant to paragraphs (1), (2), (3), and (4) totals less than two hundred fifty thousand dollars ($250,000). The appropriation in paragraphs (1), (2), (3), and (4) shall be increased by the amount(s) needed to bring each counties allocation to $250,000.(b) Commencing with the 2024-25 202425 fiscal year, the allocations determined by paragraphs (4) and (5) of subdivision (a) and shall be adjusted annually by a rate commensurate with any applicable growth in the Juvenile Justice Growth Special Account in the prior fiscal year. Each year this growth shall become additive to the next years base allocation.(c) By September July 1, 2021, and each September July 1 annually thereafter, the Department of Finance shall allocate the amount calculated in paragraphs (1), (2), (3), (4), and (5) of subdivision (a) from the General Fund and provide a schedule for the allocation of funds among counties to the State Controller. The State Controller shall allocate these funds in monthly installments according to the same schedule for allocations from the Youthful Offender Block Grant Special Account. no later than August 1 each year, consistent with the schedule provided by the Department of Finance.
862	775
863	776
864	777
865		-	~~24308.5~~. (a) ~~For taxable years beginning on or after January 1,~~ 2021, and ~~before January 1~~, ~~2026~~, ~~gross income does~~ not ~~include a bill credit~~ or ~~credits received by a customer from a utility applicant~~ pursuant to ~~the California Arrearage Payment Program Under the American Rescue Plan Act of 2021 (Article 12 (commencing with~~ Section ~~16429.5) of Chapter 2 of Part 2 of Division 4 of Title 2 of the Government Code).~~
	778	+	1991. (a) Commencing with the 2021-22 202122 fiscal year, and annually thereafter, there shall be an allocation to the county for use by the county to provide appropriate rehabilitative housing and supervision services for the population specified in subdivision (b) of Section 1990. In making allocations, the Board of Supervisors shall consider the plan required in Section 1995. Any entity receiving a direct allocation of funding from the Board of Supervisors under this section for any secure residential placement for court ordered detention will be subject to existing regulations. A With the exception of county probation departments, a local public agency that has primary responsibility for prosecuting or making arrests or detentions shall not provide rehabilitative and supervision services for the population specified in subdivision (b) of Section 1990 or receive funding pursuant to this section:
866	779
867		-	(b) ~~This~~ section shall ~~remain in effect only until December 1~~, ~~2026~~, ~~and~~ as of ~~that date is repealed~~.
	780	+	(1) For the 2021-22 202122 fiscal year, thirty-nine million nine hundred forty-nine thousand dollars ($39,949,000) shall be appropriated from the General Fund to provide appropriate rehabilitative and supervision services for the population specified in subdivision (b) of Section 1990 based on a projected average daily population of 177.6 wards. The by-county distribution shall be based on 30 percent of the per-county percentage of the average number of wards committed to the Department of Corrections and Rehabilitation, Division of Juvenile Justice, as of December 31, 2018, June 30, 2019, and December 31, 2019, 50 percent of the by-county distribution of juveniles adjudicated for certain violent and serious felony crime categories per 2018 Juvenile Court and Probation Statistical System data, updated annually based on the most recently available data, and 20 percent of the by-county distribution of all individuals between 10 and 17 years of age, inclusive, from the preceding calendar year.
868	781
869		-	~~SEC. 21. Section 24416.23 of the Revenue and Taxation Code is amended to read:24416.23.~~ (~~a) Notwithstanding Sections 24416, 24416.1, 24416.4, 24416.7, and 24416.22, former Sections 24416.~~2, 24416.5, 24416.6, and 24416.20, and Section 172 of the Internal Revenue Code, a net operating loss deduction shall not be allowed for any taxable year beginning on or after January 1, 2020, and before January 1, 2023. 2022.(b) For ~~any net operating loss or carryover of a net operating loss for which a deduction is denied by subdivision~~ (a)~~, the carryover period under Section 172 of the Internal Revenue Code~~ shall be ~~extended as follows:~~(1) By one year, for losses incurred in taxable years beginning on or after January 1, 2021, and before January 1, 2022.(2) By two years, for losses incurred in taxable years beginning on or after January 1, 2020, and before January 1, 2021.(3) By three years, for losses incurred in taxable years beginning before January 1, 2020.(c) The disallowance of ~~any net operating loss deduction for any taxable year beginning on or after January 1, 2020, and before January 1, 2023, 2022, pursuant to~~ subdivision (a) ~~shall not apply to~~ a ~~taxpayer with income subject to tax under this part~~ of ~~less than one million dollars ($1,000,000) for the taxable year~~.~~(d) The amendments made to this section by the act adding this subdivision shall be operative for taxable years beginning on or after January 1, 2022.~~
	782	+	(2) For the 2022-23 202223 fiscal year, one hundred eighteen million three hundred thirty-nine thousand dollars ($118,339,000) shall be appropriated from the General Fund to provide appropriate rehabilitative and supervision services for the population specified in subdivision (b) of Section 1990. The by-county distribution is based on the per-county percentage referenced in paragraph (1) of subdivision (a) and a projected average daily population of 526 wards.
870	783
871		-	SEC. 21. Section 24416.23 of the Revenue and Taxation Code is amended to read:
	784	+	(3) For the 2023-24 202324 fiscal year, one hundred ninety two million thirty-seven thousand dollars ($192,037,000) shall be appropriated from the General Fund to provide appropriate rehabilitative and supervision services for the population specified in subdivision (b) Section 1990. The by-county distribution is based the per-county percentage referenced in paragraph (1) of subdivision (a) and a projected average daily population of 853.5 wards.
	785	+
	786	+	(4) For the 2024-25 202425 fiscal year and each year thereafter, two hundred eight million eight hundred thousand dollars ($208,800,000) shall be appropriated from the General Fund to provide appropriate rehabilitative and supervision services for the population specified in subdivision (b) of Section 1990 based on a projected average daily population of 928 wards. The Governor and the Legislature shall work with stakeholders to establish a distribution methodology for the funding in this paragraph by January 10, 2024, and ongoing that improves outcomes for this population.
	787	+
	788	+	(5) The Department of Finance shall increase to no more than two hundred fifty thousand dollars ($250,000) the award amount for any county whose allocation as calculated pursuant to paragraphs (1), (2), (3), and (4) totals less than two hundred fifty thousand dollars ($250,000). The appropriation in paragraphs (1), (2), (3), and (4) shall be increased by the amount(s) needed to bring each counties allocation to $250,000.
	789	+
	790	+	(b) Commencing with the 2024-25 202425 fiscal year, the allocations determined by paragraphs (4) and (5) of subdivision (a) and shall be adjusted annually by a rate commensurate with any applicable growth in the Juvenile Justice Growth Special Account in the prior fiscal year. Each year this growth shall become additive to the next years base allocation.
	791	+
	792	+	(c) By September July 1, 2021, and each September July 1 annually thereafter, the Department of Finance shall allocate the amount calculated in paragraphs (1), (2), (3), (4), and (5) of subdivision (a) from the General Fund and provide a schedule for the allocation of funds among counties to the State Controller. The State Controller shall allocate these funds in monthly installments according to the same schedule for allocations from the Youthful Offender Block Grant Special Account. no later than August 1 each year, consistent with the schedule provided by the Department of Finance.
	793	+
	794	+	SEC. 21. Section 2250 of the Welfare and Institutions Code is amended to read:2250. (a) Nine million six hundred thousand dollars ($9,600,000) is hereby appropriated from the General Fund to the Youth Programs and Facilities Grant Program, which shall be administered by the Board of State and Community Corrections, to award one-time grants, to counties for the purpose of providing resources for infrastructure related needs and improvements to assist counties in the development of a local continuum of care.(b) Each entity receiving a grant from the Youth Programs and Facilities Grant Program shall submit a detailed report to the office with the following information:(1) An accounting of expenditures.(2) A description of the physical and system enhancements made.(3) How many regional placement beds were supported with the funding.(4) What proportion of the regional placement beds were contracted to other counties and which counties.(c) A With the exception of county probation departments, a local public agency that has responsibility for making arrests and detaining suspects as its primary responsibility, or which is responsible for prosecutions, is ineligible to apply for this grant.(d) Funds from the Youth Programs and Facilities Grant Program shall not be used by counties to enter into contracts with private entities whose primary business is the custodial confinement of adults or youth in a prison or prison-like setting.(e) (1) The Board of State and Community Corrections shall complete and submit, no later than October 1, 2024, a report to the budget and public safety policy committees of the Legislature describing the expenditures of the Youth Programs and Facilities Grant Program, including, but not limited to, recipients and award amounts, how funding was spent, how many regional placements were supported and a detailed description of the counties that contracted to utilize the regional facility beds. The report shall also be made available to the public on the boards internet website.(2) The report required by paragraph (1) shall be submitted in compliance with Section 9795 of the Government Code.(f) Any costs incurred by the office in connection with the development or administration of the grant program shall be deducted from the amount appropriated before awarding any grants, not to exceed five percent of the amount appropriated.(g) This chapter shall remain in effect only until January 1, 2026, and as of that date is repealed.
	795	+
	796	+	SEC. 21. Section 2250 of the Welfare and Institutions Code is amended to read:
872	797
873	798		### SEC. 21.
874	799
875		-	~~24416.23~~. (a) ~~Notwithstanding Sections 24416~~, ~~24416.1, 24416.4, 24416.7,~~ and ~~24416.22~~, ~~former Sections 24416.2, 24416.5, 24416.6,~~ and ~~24416.20~~, and ~~Section 172~~ of the ~~Internal Revenue Code~~, a ~~net operating loss deduction~~ shall not be ~~allowed for~~ any ~~taxable year beginning on~~ or ~~after~~ January 1, ~~2020~~, and ~~before January 1, 2023. 2022.(b) For any net operating loss or carryover~~ of ~~a net operating loss for which a deduction~~ is denied by subdivision (a), the carryover period under Section 172 of the Internal Revenue Code shall be extended as follows:(1) By one year, for losses incurred in taxable years beginning on or after January 1, 2021, and before January 1, 2022.(2) By two years, for losses incurred in taxable years beginning on or after January 1, 2020, and before January 1, 2021.(3) By three years, for losses incurred in taxable years beginning before January 1, 2020.(c) The disallowance of any net operating loss deduction for any taxable year beginning on or after January 1, 2020, and before January 1, 2023, 2022, pursuant to subdivision (a) shall not apply to a taxpayer with income subject to tax under this part of less than one million dollars ($1,000,000) for the taxable year.(d) The amendments made to this section by the act adding this subdivision shall be operative for taxable years beginning on or after January 1, 2022.
	800	+	2250. (a) Nine million six hundred thousand dollars ($9,600,000) is hereby appropriated from the General Fund to the Youth Programs and Facilities Grant Program, which shall be administered by the Board of State and Community Corrections, to award one-time grants, to counties for the purpose of providing resources for infrastructure related needs and improvements to assist counties in the development of a local continuum of care.(b) Each entity receiving a grant from the Youth Programs and Facilities Grant Program shall submit a detailed report to the office with the following information:(1) An accounting of expenditures.(2) A description of the physical and system enhancements made.(3) How many regional placement beds were supported with the funding.(4) What proportion of the regional placement beds were contracted to other counties and which counties.(c) A With the exception of county probation departments, a local public agency that has responsibility for making arrests and detaining suspects as its primary responsibility, or which is responsible for prosecutions, is ineligible to apply for this grant.(d) Funds from the Youth Programs and Facilities Grant Program shall not be used by counties to enter into contracts with private entities whose primary business is the custodial confinement of adults or youth in a prison or prison-like setting.(e) (1) The Board of State and Community Corrections shall complete and submit, no later than October 1, 2024, a report to the budget and public safety policy committees of the Legislature describing the expenditures of the Youth Programs and Facilities Grant Program, including, but not limited to, recipients and award amounts, how funding was spent, how many regional placements were supported and a detailed description of the counties that contracted to utilize the regional facility beds. The report shall also be made available to the public on the boards internet website.(2) The report required by paragraph (1) shall be submitted in compliance with Section 9795 of the Government Code.(f) Any costs incurred by the office in connection with the development or administration of the grant program shall be deducted from the amount appropriated before awarding any grants, not to exceed five percent of the amount appropriated.(g) This chapter shall remain in effect only until January 1, 2026, and as of that date is repealed.
876	801
877		-	~~24416.23~~. (a) ~~Notwithstanding Sections 24416~~, ~~24416.1, 24416.4, 24416.7,~~ and ~~24416.22~~, ~~former Sections 24416.2, 24416.5, 24416.6,~~ and ~~24416.20~~, and ~~Section 172~~ of the ~~Internal Revenue Code~~, a ~~net operating loss deduction~~ shall not be ~~allowed for~~ any ~~taxable year beginning on~~ or ~~after~~ January 1, ~~2020~~, and ~~before January 1, 2023. 2022.(b) For any net operating loss or carryover~~ of ~~a net operating loss for which a deduction~~ is denied by subdivision (a), the carryover period under Section 172 of the Internal Revenue Code shall be extended as follows:(1) By one year, for losses incurred in taxable years beginning on or after January 1, 2021, and before January 1, 2022.(2) By two years, for losses incurred in taxable years beginning on or after January 1, 2020, and before January 1, 2021.(3) By three years, for losses incurred in taxable years beginning before January 1, 2020.(c) The disallowance of any net operating loss deduction for any taxable year beginning on or after January 1, 2020, and before January 1, 2023, 2022, pursuant to subdivision (a) shall not apply to a taxpayer with income subject to tax under this part of less than one million dollars ($1,000,000) for the taxable year.(d) The amendments made to this section by the act adding this subdivision shall be operative for taxable years beginning on or after January 1, 2022.
	802	+	2250. (a) Nine million six hundred thousand dollars ($9,600,000) is hereby appropriated from the General Fund to the Youth Programs and Facilities Grant Program, which shall be administered by the Board of State and Community Corrections, to award one-time grants, to counties for the purpose of providing resources for infrastructure related needs and improvements to assist counties in the development of a local continuum of care.(b) Each entity receiving a grant from the Youth Programs and Facilities Grant Program shall submit a detailed report to the office with the following information:(1) An accounting of expenditures.(2) A description of the physical and system enhancements made.(3) How many regional placement beds were supported with the funding.(4) What proportion of the regional placement beds were contracted to other counties and which counties.(c) A With the exception of county probation departments, a local public agency that has responsibility for making arrests and detaining suspects as its primary responsibility, or which is responsible for prosecutions, is ineligible to apply for this grant.(d) Funds from the Youth Programs and Facilities Grant Program shall not be used by counties to enter into contracts with private entities whose primary business is the custodial confinement of adults or youth in a prison or prison-like setting.(e) (1) The Board of State and Community Corrections shall complete and submit, no later than October 1, 2024, a report to the budget and public safety policy committees of the Legislature describing the expenditures of the Youth Programs and Facilities Grant Program, including, but not limited to, recipients and award amounts, how funding was spent, how many regional placements were supported and a detailed description of the counties that contracted to utilize the regional facility beds. The report shall also be made available to the public on the boards internet website.(2) The report required by paragraph (1) shall be submitted in compliance with Section 9795 of the Government Code.(f) Any costs incurred by the office in connection with the development or administration of the grant program shall be deducted from the amount appropriated before awarding any grants, not to exceed five percent of the amount appropriated.(g) This chapter shall remain in effect only until January 1, 2026, and as of that date is repealed.
878	803
879		-	~~24416.23~~. (a) ~~Notwithstanding Sections 24416~~, ~~24416.1, 24416.4, 24416.7,~~ and ~~24416.22~~, ~~former Sections 24416.2, 24416.5, 24416.6,~~ and ~~24416.20~~, and ~~Section 172~~ of the ~~Internal Revenue Code~~, a ~~net operating loss deduction~~ shall not be ~~allowed for~~ any ~~taxable year beginning on~~ or ~~after~~ January 1, ~~2020~~, and ~~before January 1, 2023. 2022.(b) For any net operating loss or carryover~~ of ~~a net operating loss for which a deduction~~ is denied by subdivision (a), the carryover period under Section 172 of the Internal Revenue Code shall be extended as follows:(1) By one year, for losses incurred in taxable years beginning on or after January 1, 2021, and before January 1, 2022.(2) By two years, for losses incurred in taxable years beginning on or after January 1, 2020, and before January 1, 2021.(3) By three years, for losses incurred in taxable years beginning before January 1, 2020.(c) The disallowance of any net operating loss deduction for any taxable year beginning on or after January 1, 2020, and before January 1, 2023, 2022, pursuant to subdivision (a) shall not apply to a taxpayer with income subject to tax under this part of less than one million dollars ($1,000,000) for the taxable year.(d) The amendments made to this section by the act adding this subdivision shall be operative for taxable years beginning on or after January 1, 2022.
	804	+	2250. (a) Nine million six hundred thousand dollars ($9,600,000) is hereby appropriated from the General Fund to the Youth Programs and Facilities Grant Program, which shall be administered by the Board of State and Community Corrections, to award one-time grants, to counties for the purpose of providing resources for infrastructure related needs and improvements to assist counties in the development of a local continuum of care.(b) Each entity receiving a grant from the Youth Programs and Facilities Grant Program shall submit a detailed report to the office with the following information:(1) An accounting of expenditures.(2) A description of the physical and system enhancements made.(3) How many regional placement beds were supported with the funding.(4) What proportion of the regional placement beds were contracted to other counties and which counties.(c) A With the exception of county probation departments, a local public agency that has responsibility for making arrests and detaining suspects as its primary responsibility, or which is responsible for prosecutions, is ineligible to apply for this grant.(d) Funds from the Youth Programs and Facilities Grant Program shall not be used by counties to enter into contracts with private entities whose primary business is the custodial confinement of adults or youth in a prison or prison-like setting.(e) (1) The Board of State and Community Corrections shall complete and submit, no later than October 1, 2024, a report to the budget and public safety policy committees of the Legislature describing the expenditures of the Youth Programs and Facilities Grant Program, including, but not limited to, recipients and award amounts, how funding was spent, how many regional placements were supported and a detailed description of the counties that contracted to utilize the regional facility beds. The report shall also be made available to the public on the boards internet website.(2) The report required by paragraph (1) shall be submitted in compliance with Section 9795 of the Government Code.(f) Any costs incurred by the office in connection with the development or administration of the grant program shall be deducted from the amount appropriated before awarding any grants, not to exceed five percent of the amount appropriated.(g) This chapter shall remain in effect only until January 1, 2026, and as of that date is repealed.
880	805
881	806
882	807
883		-	~~24416.23~~. (a) ~~Notwithstanding Sections 24416~~, ~~24416.1, 24416.4, 24416.7,~~ and ~~24416.22~~, ~~former Sections 24416.2, 24416.5, 24416.6,~~ and ~~24416.20~~, and ~~Section 172~~ of ~~the Internal Revenue Code,~~ a ~~net operating loss deduction shall not be allowed for any taxable year beginning on or after January 1, 2020, and before January 1, 2023~~. ~~2022.~~
	808	+	2250. (a) Nine million six hundred thousand dollars ($9,600,000) is hereby appropriated from the General Fund to the Youth Programs and Facilities Grant Program, which shall be administered by the Board of State and Community Corrections, to award one-time grants, to counties for the purpose of providing resources for infrastructure related needs and improvements to assist counties in the development of a local continuum of care.
884	809
885		-	(b) ~~For any net operating loss or carryover of~~ a ~~net operating loss for which~~ a ~~deduction is denied by subdivision (a),~~ the ~~carryover period under Section 172 of~~ the ~~Internal Revenue Code shall be extended as follows~~:
	810	+	(b) Each entity receiving a grant from the Youth Programs and Facilities Grant Program shall submit a detailed report to the office with the following information:
886	811
887		-	(1) ~~By one year,~~ ~~for losses incurred in taxable years beginning on or after January 1, 2021, and before January 1, 2022~~.
	812	+	(1) An accounting of expenditures.
888	813
889		-	(2) ~~By two years,~~ ~~for losses incurred in taxable years beginning on or after January 1, 2020,~~ and ~~before January 1, 2021~~.
	814	+	(2) A description of the physical and system enhancements made.
890	815
891		-	(3) ~~By three years,~~ ~~for losses incurred in taxable years beginning before January 1, 2020~~.
	816	+	(3) How many regional placement beds were supported with the funding.
892	817
893		-	(c) The ~~disallowance of any net operating loss deduction for any taxable year beginning on or after January 1, 2020,~~ and ~~before January 1, 2023, 2022, pursuant to subdivision (a) shall not apply to a taxpayer with income subject to tax under this part of less than one million dollars ($1,000,000) for the taxable year~~.
	818	+	(4) What proportion of the regional placement beds were contracted to other counties and which counties.
894	819
895		-	(d) The ~~amendments made~~ to ~~this section by the act adding~~ this ~~subdivision shall be operative for taxable years beginning on or after January 1, 2022~~.
	820	+	(c) A With the exception of county probation departments, a local public agency that has responsibility for making arrests and detaining suspects as its primary responsibility, or which is responsible for prosecutions, is ineligible to apply for this grant.
896	821
897		-	~~SEC. 22.~~ ~~For~~ the ~~purposes of complying~~ with Section 41 of the Revenue and Taxation Code, with respect to Sections 17158.2, 17158.3, 24308.2, and 24308.3 of the Revenue and Taxation Code, as added by this act (hereafter the deductions, exclusions, tax basis, and other attributes), the Legislature finds and declares all of the following:(a) The specific goal, purpose, and objective that the deductions, exclusions, tax basis, and other attributes will achieve is to provide assistance to shuttered venues and restaurants operating in the state that have been harmed economically by the COVID-19 pandemic.(b) Detailed performance indicators for the Legislature to use in determining whether the deductions, exclusions, tax basis, and other attributes meet the goal, purpose, and objective described in subdivision (a) is the ~~extent to which the businesses that received~~ a ~~shuttered venue operator grant~~ or restaurant revitalization grant and subsequently used the deductions, exclusions, tax basis, and other attributes reflect the industries, regions, and businesses by type of ownership that were most substantially harmed by the COVID-19 pandemic, and whether any particular industries, regions, or businesses by type of ownership in the business community were not able to receive a shuttered venue operator grant or restaurant revitalization grant and the deductions, exclusions, tax basis, and other attributes.(c) The Legislative Analysts Office shall collaborate with the Franchise Tax Board, as well as reviewing other publicly available data, to analyze whether the shuttered venue operator grants and restaurant revitalization grant and the tax benefits of the deductions, exclusions, tax basis, and other attributes were distributed evenly over regions and businesses by type of ownership harmed by the COVID-19 pandemic and report by January 1, 2024, and in compliance with Section 9795 of the Government Code, to the Legislature.(d) The data collection requirements for determining whether the deductions, exclusions, tax basis, and other attributes meet, or fail to meet, the specific goal, purpose, and objective described in subdivision (a) are:(1) To assist the Legislature in determining whether the deductions, exclusions, tax basis, and other attributes meet the specific goal, purpose, and objective described in subdivision (a), and in order to carry out its duties pursuant to subdivision (c), the Legislative Analysts Office may request information from the Franchise Tax Board.(2) (A) The Franchise Tax Board shall provide any available data requested by the Legislative Analysts Office pursuant to this subdivision.(B) The disclosure provisions of this paragraph shall be treated as an exception to Section 19542 under Article 2 (commencing with Section 19542) of Chapter 7 of Part 10.2 of Division 2 of the Revenue and Taxation Code.
	822	+	(d) Funds from the Youth Programs and Facilities Grant Program shall not be used by counties to enter into contracts with private entities whose primary business is the custodial confinement of adults or youth in a prison or prison-like setting.
898	823
899		-	SEC. 22. For the purposes of complying with Section 41 of the Revenue and Taxation Code, with respect to Sections 17158.2, 17158.3, 24308.2, and 24308.3 of the Revenue and Taxation Code, as added by this act (~~hereafter the deductions, exclusions, tax basis, and other attributes), the Legislature finds and declares all of the following:(a~~) The ~~specific goal,~~ ~~purpose,~~ and ~~objective that the deductions, exclusions, tax basis,~~ and other attributes will achieve is to provide assistance to shuttered venues and restaurants operating in the state that have been harmed economically by the COVID-19 pandemic.(b) Detailed performance indicators for the Legislature to use in determining whether the deductions, ~~exclusions, tax basis,~~ and other attributes meet the goal, purpose, and objective described in subdivision (a) is the extent to which the businesses that received a shuttered venue operator grant or restaurant revitalization grant and subsequently used the deductions, exclusions, tax basis, and other attributes reflect the industries, regions, and businesses by type of ownership that were most substantially harmed by the COVID-19 pandemic, and whether any particular industries, regions, or businesses by type of ownership in the business community were not able to receive a shuttered venue operator grant or restaurant revitalization grant and the deductions, exclusions, tax basis, and other attributes.(c) The Legislative Analysts Office shall collaborate with the Franchise Tax Board, as well as reviewing other publicly available data, to analyze whether the shuttered venue operator grants and restaurant revitalization grant and the tax benefits of the deductions, exclusions, tax basis, and other attributes were distributed evenly over regions and businesses by type of ownership harmed by the COVID-19 pandemic and report by January 1, 2024, and ~~in compliance with Section 9795~~ of the ~~Government Code~~, to the ~~Legislature.(d)~~ The data collection requirements for determining whether the deductions, exclusions, tax basis, and other attributes meet, or fail to meet, the specific goal, purpose, and objective described in subdivision (a) are:(1) To assist the Legislature in determining whether the deductions, exclusions, tax basis, and other attributes meet the specific goal, purpose, and objective described in subdivision (a), and in order to carry out its duties pursuant to subdivision (c), the Legislative Analysts Office may request information from the Franchise Tax Board.(2) (A) The Franchise Tax Board shall provide any available data requested by the Legislative Analysts Office pursuant to this subdivision.(B) The disclosure provisions of this paragraph shall be treated as an exception to Section 19542 under Article 2 (commencing with Section 19542) of Chapter 7 of Part 10.2 of Division 2 of the Revenue and Taxation Code.
	824	+	(e) (1) The Board of State and Community Corrections shall complete and submit, no later than October 1, 2024, a report to the budget and public safety policy committees of the Legislature describing the expenditures of the Youth Programs and Facilities Grant Program, including, but not limited to, recipients and award amounts, how funding was spent, how many regional placements were supported and a detailed description of the counties that contracted to utilize the regional facility beds. The report shall also be made available to the public on the boards internet website.
900	825
901		-	SEC. 22. For the purposes of complying with Section 41 of the Revenue and Taxation Code, with respect to Sections 17158.2, 17158.3, 24308.2, and 24308.3 of the Revenue and Taxation Code, as added by this act (hereafter the deductions, exclusions, tax basis, and other attributes), the Legislature finds and declares all of the following:
	826	+	(2) The report required by paragraph (1) shall be submitted in compliance with Section 9795 of the Government Code.
	827	+
	828	+	(f) Any costs incurred by the office in connection with the development or administration of the grant program shall be deducted from the amount appropriated before awarding any grants, not to exceed five percent of the amount appropriated.
	829	+
	830	+	(g) This chapter shall remain in effect only until January 1, 2026, and as of that date is repealed.
	831	+
	832	+	SEC. 22. Fifty thousand dollars ($50,000) is hereby appropriated from the General Fund in the 202122 fiscal year to the Adult Reentry Grant administered by the Board of State and Community Corrections to support rental assistance programs.
	833	+
	834	+	SEC. 22. Fifty thousand dollars ($50,000) is hereby appropriated from the General Fund in the 202122 fiscal year to the Adult Reentry Grant administered by the Board of State and Community Corrections to support rental assistance programs.
	835	+
	836	+	SEC. 22. Fifty thousand dollars ($50,000) is hereby appropriated from the General Fund in the 202122 fiscal year to the Adult Reentry Grant administered by the Board of State and Community Corrections to support rental assistance programs.
902	837
903	838		### SEC. 22.
904	839
905		-	(a) The ~~specific goal,~~ ~~purpose, and objective that~~ the ~~deductions~~, ~~exclusions, tax basis,~~ ~~and other attributes will achieve is~~ to ~~provide assistance to shuttered venues and restaurants operating~~ in the ~~state that have been harmed economically by the COVID-19 pandemic~~.
	840	+	SEC. 23. This act is a bill providing for appropriations related to the Budget Bill within the meaning of subdivision (e) of Section 12 of Article IV of the California Constitution, has been identified as related to the budget in the Budget Bill, and shall take effect immediately.
906	841
907		-	~~(b) Detailed performance indicators~~ for ~~the Legislature~~ to ~~use in determining whether~~ the ~~deductions, exclusions, tax basis, and other attributes meet the goal, purpose, and objective described in~~ subdivision (a) is the ~~extent~~ to ~~which~~ the businesses that received a shuttered venue operator grant or restaurant revitalization grant and subsequently used the deductions, exclusions, tax basis, and other attributes reflect the industries, regions, and businesses by type of ownership that were most substantially harmed by the COVID-19 pandemic, and whether any particular industries, regions, or businesses by type of ownership in the ~~business community were not able to receive a shuttered venue operator grant or restaurant revitalization grant and the deductions, exclusions, tax basis~~, and ~~other attributes~~.
	842	+	SEC. 23. This act is a bill providing for appropriations related to the Budget Bill within the meaning of subdivision (e) of Section 12 of Article IV of the California Constitution, has been identified as related to the budget in the Budget Bill, and shall take effect immediately.
908	843
909		-	(c) The Legislative Analysts Office shall collaborate with the Franchise Tax Board, as well as reviewing other publicly available data, to analyze whether the shuttered venue operator grants and restaurant revitalization grant and the tax benefits of the deductions, exclusions, tax basis, and other attributes were distributed evenly over regions and businesses by type of ownership harmed by the COVID-19 pandemic and report by January 1, 2024, and in compliance with Section 9795 of the Government Code, to the Legislature.
910		-
911		-	(d) The data collection requirements for determining whether the deductions, exclusions, tax basis, and other attributes meet, or fail to meet, the specific goal, purpose, and objective described in subdivision (a) are:
912		-
913		-	(1) To assist the Legislature in determining whether the deductions, exclusions, tax basis, and other attributes meet the specific goal, purpose, and objective described in subdivision (a), and in order to carry out its duties pursuant to subdivision (c), the Legislative Analysts Office may request information from the Franchise Tax Board.
914		-
915		-	(2) (A) The Franchise Tax Board shall provide any available data requested by the Legislative Analysts Office pursuant to this subdivision.
916		-
917		-	(B) The disclosure provisions of this paragraph shall be treated as an exception to Section 19542 under Article 2 (commencing with Section 19542) of Chapter 7 of Part 10.2 of Division 2 of the Revenue and Taxation Code.
918		-
919		-	SEC. 23. (a) For the purposes of complying with Section 41 of the Revenue and Taxation Code, with respect to Sections 17131.16 and 24308.4 of the Revenue and Taxation Code, as added by this act, the Legislature finds and declares that the purpose of the exclusion allowed by Sections 17131.16 and 24308.4 of the Revenue and Taxation Code is to provide financial relief to California businesses and residents, including, in particular, low- and middle-income residents, to alleviate, in part, the adverse impacts of the economic disruptions and hardships resulting from the COVID-19 emergency.(b) (1) For the purpose of this subdivision, act means the Water and Wastewater System Payments Under the American Rescue Plan Act of 2021 (Chapter 4.7 (commencing with Section 116773) of Part 12 of Division 104 of the Health and Safety Code).(2) In order to provide information on the exclusion allowed by Sections 17131.16 and 24308.3 of the Revenue and Taxation Code, the State Water Resources Control Board shall prepare a written report that includes all of the following:(A) The total number of households that received water system bill credits pursuant to this act.(B) The total number of commercial customers that received water system bill credits pursuant to this act.(C) The total number of households that received wastewater system bill credits pursuant to this act.(D) The total number of commercial customers that received wastewater system bill credits pursuant to this act.
920		-
921		-	SEC. 23. (a) For the purposes of complying with Section 41 of the Revenue and Taxation Code, with respect to Sections 17131.16 and 24308.4 of the Revenue and Taxation Code, as added by this act, the Legislature finds and declares that the purpose of the exclusion allowed by Sections 17131.16 and 24308.4 of the Revenue and Taxation Code is to provide financial relief to California businesses and residents, including, in particular, low- and middle-income residents, to alleviate, in part, the adverse impacts of the economic disruptions and hardships resulting from the COVID-19 emergency.(b) (1) For the purpose of this subdivision, act means the Water and Wastewater System Payments Under the American Rescue Plan Act of 2021 (Chapter 4.7 (commencing with Section 116773) of Part 12 of Division 104 of the Health and Safety Code).(2) In order to provide information on the exclusion allowed by Sections 17131.16 and 24308.3 of the Revenue and Taxation Code, the State Water Resources Control Board shall prepare a written report that includes all of the following:(A) The total number of households that received water system bill credits pursuant to this act.(B) The total number of commercial customers that received water system bill credits pursuant to this act.(C) The total number of households that received wastewater system bill credits pursuant to this act.(D) The total number of commercial customers that received wastewater system bill credits pursuant to this act.
922		-
923		-	SEC. 23. (a) For the purposes of complying with Section 41 of the Revenue and Taxation Code, with respect to Sections 17131.16 and 24308.4 of the Revenue and Taxation Code, as added by this act, the Legislature finds and declares that the purpose of the exclusion allowed by Sections 17131.16 and 24308.4 of the Revenue and Taxation Code is to provide financial relief to California businesses and residents, including, in particular, low- and middle-income residents, to alleviate, in part, the adverse impacts of the economic disruptions and hardships resulting from the COVID-19 emergency.
	844	+	SEC. 23. This act is a bill providing for appropriations related to the Budget Bill within the meaning of subdivision (e) of Section 12 of Article IV of the California Constitution, has been identified as related to the budget in the Budget Bill, and shall take effect immediately.
924	845
925	846		### SEC. 23.
926	847
927		-	(b) (1) For the purpose of this subdivision, act means the Water and Wastewater System Payments Under the American Rescue Plan Act of 2021 (Chapter 4.7 (commencing with Section 116773) of Part 12 of Division 104 of the Health and Safety Code).
928	848
929		-	(2) In order to provide information on the exclusion allowed by Sections 17131.16 and 24308.3 of the Revenue and Taxation Code, the State Water Resources Control Board shall prepare a written report that includes all of the following:
930	849
931		-	(A) The total number of households that received water system bill credits pursuant to this act.
932		-
933		-	(B) The total number of commercial customers that received water system bill credits pursuant to this act.
934		-
935		-	(C) The total number of households that received wastewater system bill credits pursuant to this act.
936		-
937		-	(D) The total number of commercial customers that received wastewater system bill credits pursuant to this act.
938		-
939		-	SEC. 24. (a) For the purposes of complying with Section 41 of the Revenue and Taxation Code, with respect to Sections 17131.17 and 24308.5 of the Revenue and Taxation Code, as added by this act, the Legislature finds and declares that the purpose of the exclusion allowed by Sections 17131.17 and 24308.5 of the Revenue and Taxation Code is to provide financial relief to California businesses and residents, including, in particular, low- and middle-income residents, to alleviate, in part, the adverse impacts of the economic disruptions and hardships resulting from the COVID-19 emergency.(b) The reporting by Department of Community Services and Development to the Legislature required by subdivision (j) of Section 16429.5 of the Government Code shall constitute reporting for the purposes of complying with Section 41 of the Revenue and Taxation Code.
940		-
941		-	SEC. 24. (a) For the purposes of complying with Section 41 of the Revenue and Taxation Code, with respect to Sections 17131.17 and 24308.5 of the Revenue and Taxation Code, as added by this act, the Legislature finds and declares that the purpose of the exclusion allowed by Sections 17131.17 and 24308.5 of the Revenue and Taxation Code is to provide financial relief to California businesses and residents, including, in particular, low- and middle-income residents, to alleviate, in part, the adverse impacts of the economic disruptions and hardships resulting from the COVID-19 emergency.(b) The reporting by Department of Community Services and Development to the Legislature required by subdivision (j) of Section 16429.5 of the Government Code shall constitute reporting for the purposes of complying with Section 41 of the Revenue and Taxation Code.
942		-
943		-	SEC. 24. (a) For the purposes of complying with Section 41 of the Revenue and Taxation Code, with respect to Sections 17131.17 and 24308.5 of the Revenue and Taxation Code, as added by this act, the Legislature finds and declares that the purpose of the exclusion allowed by Sections 17131.17 and 24308.5 of the Revenue and Taxation Code is to provide financial relief to California businesses and residents, including, in particular, low- and middle-income residents, to alleviate, in part, the adverse impacts of the economic disruptions and hardships resulting from the COVID-19 emergency.
944		-
945		-	### SEC. 24.
946		-
947		-	(b) The reporting by Department of Community Services and Development to the Legislature required by subdivision (j) of Section 16429.5 of the Government Code shall constitute reporting for the purposes of complying with Section 41 of the Revenue and Taxation Code.
948		-
949		-	SEC. 25. For the purposes of complying with Section 41 of the Revenue and Taxation Code, with respect to Sections 6902.5, 12209, 17039.3, 17276.23, 23036.3, and 24416.23 of the Revenue and Taxation Code, as amended by this act, the Legislature hereby finds and declares that this act merely ends the temporary limitation or suspension of existing tax expenditures one year earlier than currently provided and does not contain additional information related to the goals, purposes, and objectives of those tax expenditures.
950		-
951		-	SEC. 25. For the purposes of complying with Section 41 of the Revenue and Taxation Code, with respect to Sections 6902.5, 12209, 17039.3, 17276.23, 23036.3, and 24416.23 of the Revenue and Taxation Code, as amended by this act, the Legislature hereby finds and declares that this act merely ends the temporary limitation or suspension of existing tax expenditures one year earlier than currently provided and does not contain additional information related to the goals, purposes, and objectives of those tax expenditures.
952		-
953		-	SEC. 25. For the purposes of complying with Section 41 of the Revenue and Taxation Code, with respect to Sections 6902.5, 12209, 17039.3, 17276.23, 23036.3, and 24416.23 of the Revenue and Taxation Code, as amended by this act, the Legislature hereby finds and declares that this act merely ends the temporary limitation or suspension of existing tax expenditures one year earlier than currently provided and does not contain additional information related to the goals, purposes, and objectives of those tax expenditures.
954		-
955		-	### SEC. 25.
956		-
957		-	SEC. 26. For the purposes of complying with Section 41 of the Revenue and Taxation Code, the Legislature finds and declares that the goal of the tax expenditures in Sections 17039 and 17052.10, as amended by this act, is to provide tax relief to small businesses facing unprecedented economic hurdles due to COVID-19.
958		-
959		-	SEC. 26. For the purposes of complying with Section 41 of the Revenue and Taxation Code, the Legislature finds and declares that the goal of the tax expenditures in Sections 17039 and 17052.10, as amended by this act, is to provide tax relief to small businesses facing unprecedented economic hurdles due to COVID-19.
960		-
961		-	SEC. 26. For the purposes of complying with Section 41 of the Revenue and Taxation Code, the Legislature finds and declares that the goal of the tax expenditures in Sections 17039 and 17052.10, as amended by this act, is to provide tax relief to small businesses facing unprecedented economic hurdles due to COVID-19.
962		-
963		-	### SEC. 26.
964		-
965		-	SEC. 27. (a) The Legislature hereby finds and declares that the tax credits authorized by the amendments to Section 6902.5 of the Revenue and Taxation Code made by this bill serve the public purpose of providing equitable treatment to businesses that claim tax credits under Part 1 of the Revenue and Taxation Code as those that claim tax credits under Parts 10 and 11 of the Revenue and Taxation Code and do not constitute a gift of public funds within the meaning of Section 6 of Article XVI of the California Constitution.(b) The Legislature hereby finds and declares that the exclusions and other tax benefits authorized by Sections 17158.2, 17158.3, 24308.2, and 24308.3 of the Revenue and Taxation Code made by this bill serve the public purpose of securing the financial condition of businesses that were economically harmed by the COVID-19 pandemic and do not constitute a gift of public funds within the meaning of Section 6 of Article XVI of the California Constitution.(c) The Legislature hereby finds and declares that moneys appropriated, pursuant to Section 8654.2 of the Government Code, as added by this act, to the California Small Business COVID-19 Relief Grant Program established under Article 8 (commencing with Section 12100.80) of Chapter 1.6 of Part 2 of Division 3 of Title 2 of the Government Code serves the public purpose of preventing revenue decreases, closures, and higher unemployment across the state due to the COVID-19 pandemic, and does not constitute a gift of public funds within the meaning of Section 6 of Article XVI of the California Constitution.
966		-
967		-	SEC. 27. (a) The Legislature hereby finds and declares that the tax credits authorized by the amendments to Section 6902.5 of the Revenue and Taxation Code made by this bill serve the public purpose of providing equitable treatment to businesses that claim tax credits under Part 1 of the Revenue and Taxation Code as those that claim tax credits under Parts 10 and 11 of the Revenue and Taxation Code and do not constitute a gift of public funds within the meaning of Section 6 of Article XVI of the California Constitution.(b) The Legislature hereby finds and declares that the exclusions and other tax benefits authorized by Sections 17158.2, 17158.3, 24308.2, and 24308.3 of the Revenue and Taxation Code made by this bill serve the public purpose of securing the financial condition of businesses that were economically harmed by the COVID-19 pandemic and do not constitute a gift of public funds within the meaning of Section 6 of Article XVI of the California Constitution.(c) The Legislature hereby finds and declares that moneys appropriated, pursuant to Section 8654.2 of the Government Code, as added by this act, to the California Small Business COVID-19 Relief Grant Program established under Article 8 (commencing with Section 12100.80) of Chapter 1.6 of Part 2 of Division 3 of Title 2 of the Government Code serves the public purpose of preventing revenue decreases, closures, and higher unemployment across the state due to the COVID-19 pandemic, and does not constitute a gift of public funds within the meaning of Section 6 of Article XVI of the California Constitution.
968		-
969		-	SEC. 27. (a) The Legislature hereby finds and declares that the tax credits authorized by the amendments to Section 6902.5 of the Revenue and Taxation Code made by this bill serve the public purpose of providing equitable treatment to businesses that claim tax credits under Part 1 of the Revenue and Taxation Code as those that claim tax credits under Parts 10 and 11 of the Revenue and Taxation Code and do not constitute a gift of public funds within the meaning of Section 6 of Article XVI of the California Constitution.
970		-
971		-	### SEC. 27.
972		-
973		-	(b) The Legislature hereby finds and declares that the exclusions and other tax benefits authorized by Sections 17158.2, 17158.3, 24308.2, and 24308.3 of the Revenue and Taxation Code made by this bill serve the public purpose of securing the financial condition of businesses that were economically harmed by the COVID-19 pandemic and do not constitute a gift of public funds within the meaning of Section 6 of Article XVI of the California Constitution.
974		-
975		-	(c) The Legislature hereby finds and declares that moneys appropriated, pursuant to Section 8654.2 of the Government Code, as added by this act, to the California Small Business COVID-19 Relief Grant Program established under Article 8 (commencing with Section 12100.80) of Chapter 1.6 of Part 2 of Division 3 of Title 2 of the Government Code serves the public purpose of preventing revenue decreases, closures, and higher unemployment across the state due to the COVID-19 pandemic, and does not constitute a gift of public funds within the meaning of Section 6 of Article XVI of the California Constitution.
976		-
977		-	SEC. 28. This act is a bill providing for appropriations related to the Budget Bill within the meaning of subdivision (e) of Section 12 of Article IV of the California Constitution, has been identified as related to the budget in the Budget Bill, and shall take effect immediately.
978		-
979		-	SEC. 28. This act is a bill providing for appropriations related to the Budget Bill within the meaning of subdivision (e) of Section 12 of Article IV of the California Constitution, has been identified as related to the budget in the Budget Bill, and shall take effect immediately.
980		-
981		-	SEC. 28. This act is a bill providing for appropriations related to the Budget Bill within the meaning of subdivision (e) of Section 12 of Article IV of the California Constitution, has been identified as related to the budget in the Budget Bill, and shall take effect immediately.
982		-
983		-	### SEC. 28.
	850	+	It is the intent of the Legislature to enact statutory changes relating to the Budget Act of 2021.