Amended IN Assembly April 21, 2025 CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Assembly Bill No. 1253Introduced by Assembly Member SchultzFebruary 21, 2025 An act to amend Section 19170.3 of the Business and Professions Code, relating to professions and vocations. An act to amend Section 70 of the Revenue and Taxation Code, relating to taxation.LEGISLATIVE COUNSEL'S DIGESTAB 1253, as amended, Schultz. Home Furnishings and Thermal Insulation Act: insulation manufacturing license fee. Property taxation: newly constructed property: reconstruction of damaged or destroyed property.The California Constitution generally limits ad valorem taxes on real property to 1% of the full cash value of that property. For purposes of this limitation, full cash value is defined as the assessors valuation of real property as shown on the 197576 tax bill under full cash value or, thereafter, the appraised value of that real property when purchased, newly constructed, or a change in ownership has occurred. Existing law defines newly constructed and new construction to mean any addition to real property since the last lien date and any alteration of land or of any improvement since the last lien date that constitutes a major rehabilitation thereof or that converts the property to a different use. Existing law, where real property has been damaged or destroyed by misfortune or calamity, excludes from the definition of newly constructed and new construction any timely reconstruction of the real property, or portion thereof, where the property after reconstruction is substantially equivalent to the property prior to damage or destruction. This bill would authorize an assessor, in the case where state or local government action mandates a suspension or modification of rebuild development standards, to align the assessment of substantial equivalence with the requirements and criteria set forth by the government for reconstruction of property damaged by the 2025 fire disasters in Palisades, Eaton, Hurst, Lidia, Sunset, or Woodley, as provided. Existing law, the Home Furnishings and Thermal Insulation Act, requires the Bureau of Household Goods and Services to exercise specified licensing, regulatory, and disciplinary functions with regard to retailers, wholesalers, importers, manufacturers, renovators, and suppliers of upholstered furniture, bedding, and filling materials sold in California, as specified. Existing law authorizes the bureau to, among other things, fix the annual fee for an insulation manufacturing license in an amount that is not less than $1,850 but not more than $2,500.This bill would, instead, set the maximum amount of the fee to be fixed by the bureau at $2,600.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 70 of the Revenue and Taxation Code is amended to read:70. (a) Newly constructed and new construction means:(1) Any addition to real property, whether land or improvements, including fixtures, since the last lien date; and(2) Any alteration of land or of any improvement, including fixtures, since the last lien date that constitutes a major rehabilitation thereof or that converts the property to a different use.(b) Any rehabilitation, renovation, or modernization that converts an improvement or fixture to the substantial equivalent of a new improvement or fixture is a major rehabilitation of that improvement or fixture.(c) (1) Notwithstanding subdivisions (a) and (b), where real property has been damaged or destroyed by misfortune or calamity, newly constructed and new construction does not mean any timely reconstruction of the real property, or portion thereof, where the property after reconstruction is substantially equivalent to the property prior to damage or destruction. Any reconstruction of real property, or portion thereof, that is not substantially equivalent to the damaged or destroyed property, shall be deemed to be new construction and only that portion that exceeds substantially equivalent reconstruction shall have a new base year value determined pursuant to Section 110.1.(2) In the case where state or local government action mandates a suspension or modification of rebuild development standards, the assessor may align the assessment of substantial equivalence with the requirements and criteria set forth by the government for reconstruction, provided that these standards are designed to expedite the rebuilding of property damaged by the 2025 fire disasters in Palisades, Eaton, Hurst, Lidia, Sunset, or Woodley, as proclaimed by the Governor. (d) (1) Notwithstanding subdivisions (a) and (b), where a tank must be improved, upgraded, or replaced to comply with federal, state, and local regulations on underground storage tanks, newly constructed and new construction does not mean the improvement, upgrade, or replacement of a tank to meet compliance standards, and the improvement, upgrade, or replacement shall be considered to have been performed for the purpose of normal maintenance and repair.(2) Notwithstanding subdivisions (a) and (b), where a structure, or any portion thereof, was reconstructed, as a consequence of completing work on an underground storage tank to comply with federal, state, and local regulations on these tanks, timely reconstruction of the structure shall be considered to have been performed for the purpose of normal maintenance and repair where the structure, or portion thereof, after reconstruction is substantially equivalent to the prior structure in size, utility, and function.SECTION 1.Section 19170.3 of the Business and Professions Code is amended to read:19170.3.The annual fee for an insulation manufacturing license shall be fixed by the bureau in an amount not less than one thousand eight hundred fifty dollars ($1,850) but not more than two thousand six hundred dollars ($2,600).
Amended IN Assembly April 21, 2025 CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Assembly Bill No. 1253Introduced by Assembly Member SchultzFebruary 21, 2025 An act to amend Section 19170.3 of the Business and Professions Code, relating to professions and vocations. An act to amend Section 70 of the Revenue and Taxation Code, relating to taxation.LEGISLATIVE COUNSEL'S DIGESTAB 1253, as amended, Schultz. Home Furnishings and Thermal Insulation Act: insulation manufacturing license fee. Property taxation: newly constructed property: reconstruction of damaged or destroyed property.The California Constitution generally limits ad valorem taxes on real property to 1% of the full cash value of that property. For purposes of this limitation, full cash value is defined as the assessors valuation of real property as shown on the 197576 tax bill under full cash value or, thereafter, the appraised value of that real property when purchased, newly constructed, or a change in ownership has occurred. Existing law defines newly constructed and new construction to mean any addition to real property since the last lien date and any alteration of land or of any improvement since the last lien date that constitutes a major rehabilitation thereof or that converts the property to a different use. Existing law, where real property has been damaged or destroyed by misfortune or calamity, excludes from the definition of newly constructed and new construction any timely reconstruction of the real property, or portion thereof, where the property after reconstruction is substantially equivalent to the property prior to damage or destruction. This bill would authorize an assessor, in the case where state or local government action mandates a suspension or modification of rebuild development standards, to align the assessment of substantial equivalence with the requirements and criteria set forth by the government for reconstruction of property damaged by the 2025 fire disasters in Palisades, Eaton, Hurst, Lidia, Sunset, or Woodley, as provided. Existing law, the Home Furnishings and Thermal Insulation Act, requires the Bureau of Household Goods and Services to exercise specified licensing, regulatory, and disciplinary functions with regard to retailers, wholesalers, importers, manufacturers, renovators, and suppliers of upholstered furniture, bedding, and filling materials sold in California, as specified. Existing law authorizes the bureau to, among other things, fix the annual fee for an insulation manufacturing license in an amount that is not less than $1,850 but not more than $2,500.This bill would, instead, set the maximum amount of the fee to be fixed by the bureau at $2,600.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO
Amended IN Assembly April 21, 2025
Amended IN Assembly April 21, 2025
CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION
Assembly Bill
No. 1253
Introduced by Assembly Member SchultzFebruary 21, 2025
Introduced by Assembly Member Schultz
February 21, 2025
An act to amend Section 19170.3 of the Business and Professions Code, relating to professions and vocations. An act to amend Section 70 of the Revenue and Taxation Code, relating to taxation.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
AB 1253, as amended, Schultz. Home Furnishings and Thermal Insulation Act: insulation manufacturing license fee. Property taxation: newly constructed property: reconstruction of damaged or destroyed property.
The California Constitution generally limits ad valorem taxes on real property to 1% of the full cash value of that property. For purposes of this limitation, full cash value is defined as the assessors valuation of real property as shown on the 197576 tax bill under full cash value or, thereafter, the appraised value of that real property when purchased, newly constructed, or a change in ownership has occurred. Existing law defines newly constructed and new construction to mean any addition to real property since the last lien date and any alteration of land or of any improvement since the last lien date that constitutes a major rehabilitation thereof or that converts the property to a different use. Existing law, where real property has been damaged or destroyed by misfortune or calamity, excludes from the definition of newly constructed and new construction any timely reconstruction of the real property, or portion thereof, where the property after reconstruction is substantially equivalent to the property prior to damage or destruction. This bill would authorize an assessor, in the case where state or local government action mandates a suspension or modification of rebuild development standards, to align the assessment of substantial equivalence with the requirements and criteria set forth by the government for reconstruction of property damaged by the 2025 fire disasters in Palisades, Eaton, Hurst, Lidia, Sunset, or Woodley, as provided. Existing law, the Home Furnishings and Thermal Insulation Act, requires the Bureau of Household Goods and Services to exercise specified licensing, regulatory, and disciplinary functions with regard to retailers, wholesalers, importers, manufacturers, renovators, and suppliers of upholstered furniture, bedding, and filling materials sold in California, as specified. Existing law authorizes the bureau to, among other things, fix the annual fee for an insulation manufacturing license in an amount that is not less than $1,850 but not more than $2,500.This bill would, instead, set the maximum amount of the fee to be fixed by the bureau at $2,600.
The California Constitution generally limits ad valorem taxes on real property to 1% of the full cash value of that property. For purposes of this limitation, full cash value is defined as the assessors valuation of real property as shown on the 197576 tax bill under full cash value or, thereafter, the appraised value of that real property when purchased, newly constructed, or a change in ownership has occurred. Existing law defines newly constructed and new construction to mean any addition to real property since the last lien date and any alteration of land or of any improvement since the last lien date that constitutes a major rehabilitation thereof or that converts the property to a different use. Existing law, where real property has been damaged or destroyed by misfortune or calamity, excludes from the definition of newly constructed and new construction any timely reconstruction of the real property, or portion thereof, where the property after reconstruction is substantially equivalent to the property prior to damage or destruction.
This bill would authorize an assessor, in the case where state or local government action mandates a suspension or modification of rebuild development standards, to align the assessment of substantial equivalence with the requirements and criteria set forth by the government for reconstruction of property damaged by the 2025 fire disasters in Palisades, Eaton, Hurst, Lidia, Sunset, or Woodley, as provided.
Existing law, the Home Furnishings and Thermal Insulation Act, requires the Bureau of Household Goods and Services to exercise specified licensing, regulatory, and disciplinary functions with regard to retailers, wholesalers, importers, manufacturers, renovators, and suppliers of upholstered furniture, bedding, and filling materials sold in California, as specified. Existing law authorizes the bureau to, among other things, fix the annual fee for an insulation manufacturing license in an amount that is not less than $1,850 but not more than $2,500.
This bill would, instead, set the maximum amount of the fee to be fixed by the bureau at $2,600.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. Section 70 of the Revenue and Taxation Code is amended to read:70. (a) Newly constructed and new construction means:(1) Any addition to real property, whether land or improvements, including fixtures, since the last lien date; and(2) Any alteration of land or of any improvement, including fixtures, since the last lien date that constitutes a major rehabilitation thereof or that converts the property to a different use.(b) Any rehabilitation, renovation, or modernization that converts an improvement or fixture to the substantial equivalent of a new improvement or fixture is a major rehabilitation of that improvement or fixture.(c) (1) Notwithstanding subdivisions (a) and (b), where real property has been damaged or destroyed by misfortune or calamity, newly constructed and new construction does not mean any timely reconstruction of the real property, or portion thereof, where the property after reconstruction is substantially equivalent to the property prior to damage or destruction. Any reconstruction of real property, or portion thereof, that is not substantially equivalent to the damaged or destroyed property, shall be deemed to be new construction and only that portion that exceeds substantially equivalent reconstruction shall have a new base year value determined pursuant to Section 110.1.(2) In the case where state or local government action mandates a suspension or modification of rebuild development standards, the assessor may align the assessment of substantial equivalence with the requirements and criteria set forth by the government for reconstruction, provided that these standards are designed to expedite the rebuilding of property damaged by the 2025 fire disasters in Palisades, Eaton, Hurst, Lidia, Sunset, or Woodley, as proclaimed by the Governor. (d) (1) Notwithstanding subdivisions (a) and (b), where a tank must be improved, upgraded, or replaced to comply with federal, state, and local regulations on underground storage tanks, newly constructed and new construction does not mean the improvement, upgrade, or replacement of a tank to meet compliance standards, and the improvement, upgrade, or replacement shall be considered to have been performed for the purpose of normal maintenance and repair.(2) Notwithstanding subdivisions (a) and (b), where a structure, or any portion thereof, was reconstructed, as a consequence of completing work on an underground storage tank to comply with federal, state, and local regulations on these tanks, timely reconstruction of the structure shall be considered to have been performed for the purpose of normal maintenance and repair where the structure, or portion thereof, after reconstruction is substantially equivalent to the prior structure in size, utility, and function.SECTION 1.Section 19170.3 of the Business and Professions Code is amended to read:19170.3.The annual fee for an insulation manufacturing license shall be fixed by the bureau in an amount not less than one thousand eight hundred fifty dollars ($1,850) but not more than two thousand six hundred dollars ($2,600).
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. Section 70 of the Revenue and Taxation Code is amended to read:70. (a) Newly constructed and new construction means:(1) Any addition to real property, whether land or improvements, including fixtures, since the last lien date; and(2) Any alteration of land or of any improvement, including fixtures, since the last lien date that constitutes a major rehabilitation thereof or that converts the property to a different use.(b) Any rehabilitation, renovation, or modernization that converts an improvement or fixture to the substantial equivalent of a new improvement or fixture is a major rehabilitation of that improvement or fixture.(c) (1) Notwithstanding subdivisions (a) and (b), where real property has been damaged or destroyed by misfortune or calamity, newly constructed and new construction does not mean any timely reconstruction of the real property, or portion thereof, where the property after reconstruction is substantially equivalent to the property prior to damage or destruction. Any reconstruction of real property, or portion thereof, that is not substantially equivalent to the damaged or destroyed property, shall be deemed to be new construction and only that portion that exceeds substantially equivalent reconstruction shall have a new base year value determined pursuant to Section 110.1.(2) In the case where state or local government action mandates a suspension or modification of rebuild development standards, the assessor may align the assessment of substantial equivalence with the requirements and criteria set forth by the government for reconstruction, provided that these standards are designed to expedite the rebuilding of property damaged by the 2025 fire disasters in Palisades, Eaton, Hurst, Lidia, Sunset, or Woodley, as proclaimed by the Governor. (d) (1) Notwithstanding subdivisions (a) and (b), where a tank must be improved, upgraded, or replaced to comply with federal, state, and local regulations on underground storage tanks, newly constructed and new construction does not mean the improvement, upgrade, or replacement of a tank to meet compliance standards, and the improvement, upgrade, or replacement shall be considered to have been performed for the purpose of normal maintenance and repair.(2) Notwithstanding subdivisions (a) and (b), where a structure, or any portion thereof, was reconstructed, as a consequence of completing work on an underground storage tank to comply with federal, state, and local regulations on these tanks, timely reconstruction of the structure shall be considered to have been performed for the purpose of normal maintenance and repair where the structure, or portion thereof, after reconstruction is substantially equivalent to the prior structure in size, utility, and function.
SECTION 1. Section 70 of the Revenue and Taxation Code is amended to read:
### SECTION 1.
70. (a) Newly constructed and new construction means:(1) Any addition to real property, whether land or improvements, including fixtures, since the last lien date; and(2) Any alteration of land or of any improvement, including fixtures, since the last lien date that constitutes a major rehabilitation thereof or that converts the property to a different use.(b) Any rehabilitation, renovation, or modernization that converts an improvement or fixture to the substantial equivalent of a new improvement or fixture is a major rehabilitation of that improvement or fixture.(c) (1) Notwithstanding subdivisions (a) and (b), where real property has been damaged or destroyed by misfortune or calamity, newly constructed and new construction does not mean any timely reconstruction of the real property, or portion thereof, where the property after reconstruction is substantially equivalent to the property prior to damage or destruction. Any reconstruction of real property, or portion thereof, that is not substantially equivalent to the damaged or destroyed property, shall be deemed to be new construction and only that portion that exceeds substantially equivalent reconstruction shall have a new base year value determined pursuant to Section 110.1.(2) In the case where state or local government action mandates a suspension or modification of rebuild development standards, the assessor may align the assessment of substantial equivalence with the requirements and criteria set forth by the government for reconstruction, provided that these standards are designed to expedite the rebuilding of property damaged by the 2025 fire disasters in Palisades, Eaton, Hurst, Lidia, Sunset, or Woodley, as proclaimed by the Governor. (d) (1) Notwithstanding subdivisions (a) and (b), where a tank must be improved, upgraded, or replaced to comply with federal, state, and local regulations on underground storage tanks, newly constructed and new construction does not mean the improvement, upgrade, or replacement of a tank to meet compliance standards, and the improvement, upgrade, or replacement shall be considered to have been performed for the purpose of normal maintenance and repair.(2) Notwithstanding subdivisions (a) and (b), where a structure, or any portion thereof, was reconstructed, as a consequence of completing work on an underground storage tank to comply with federal, state, and local regulations on these tanks, timely reconstruction of the structure shall be considered to have been performed for the purpose of normal maintenance and repair where the structure, or portion thereof, after reconstruction is substantially equivalent to the prior structure in size, utility, and function.
70. (a) Newly constructed and new construction means:(1) Any addition to real property, whether land or improvements, including fixtures, since the last lien date; and(2) Any alteration of land or of any improvement, including fixtures, since the last lien date that constitutes a major rehabilitation thereof or that converts the property to a different use.(b) Any rehabilitation, renovation, or modernization that converts an improvement or fixture to the substantial equivalent of a new improvement or fixture is a major rehabilitation of that improvement or fixture.(c) (1) Notwithstanding subdivisions (a) and (b), where real property has been damaged or destroyed by misfortune or calamity, newly constructed and new construction does not mean any timely reconstruction of the real property, or portion thereof, where the property after reconstruction is substantially equivalent to the property prior to damage or destruction. Any reconstruction of real property, or portion thereof, that is not substantially equivalent to the damaged or destroyed property, shall be deemed to be new construction and only that portion that exceeds substantially equivalent reconstruction shall have a new base year value determined pursuant to Section 110.1.(2) In the case where state or local government action mandates a suspension or modification of rebuild development standards, the assessor may align the assessment of substantial equivalence with the requirements and criteria set forth by the government for reconstruction, provided that these standards are designed to expedite the rebuilding of property damaged by the 2025 fire disasters in Palisades, Eaton, Hurst, Lidia, Sunset, or Woodley, as proclaimed by the Governor. (d) (1) Notwithstanding subdivisions (a) and (b), where a tank must be improved, upgraded, or replaced to comply with federal, state, and local regulations on underground storage tanks, newly constructed and new construction does not mean the improvement, upgrade, or replacement of a tank to meet compliance standards, and the improvement, upgrade, or replacement shall be considered to have been performed for the purpose of normal maintenance and repair.(2) Notwithstanding subdivisions (a) and (b), where a structure, or any portion thereof, was reconstructed, as a consequence of completing work on an underground storage tank to comply with federal, state, and local regulations on these tanks, timely reconstruction of the structure shall be considered to have been performed for the purpose of normal maintenance and repair where the structure, or portion thereof, after reconstruction is substantially equivalent to the prior structure in size, utility, and function.
70. (a) Newly constructed and new construction means:(1) Any addition to real property, whether land or improvements, including fixtures, since the last lien date; and(2) Any alteration of land or of any improvement, including fixtures, since the last lien date that constitutes a major rehabilitation thereof or that converts the property to a different use.(b) Any rehabilitation, renovation, or modernization that converts an improvement or fixture to the substantial equivalent of a new improvement or fixture is a major rehabilitation of that improvement or fixture.(c) (1) Notwithstanding subdivisions (a) and (b), where real property has been damaged or destroyed by misfortune or calamity, newly constructed and new construction does not mean any timely reconstruction of the real property, or portion thereof, where the property after reconstruction is substantially equivalent to the property prior to damage or destruction. Any reconstruction of real property, or portion thereof, that is not substantially equivalent to the damaged or destroyed property, shall be deemed to be new construction and only that portion that exceeds substantially equivalent reconstruction shall have a new base year value determined pursuant to Section 110.1.(2) In the case where state or local government action mandates a suspension or modification of rebuild development standards, the assessor may align the assessment of substantial equivalence with the requirements and criteria set forth by the government for reconstruction, provided that these standards are designed to expedite the rebuilding of property damaged by the 2025 fire disasters in Palisades, Eaton, Hurst, Lidia, Sunset, or Woodley, as proclaimed by the Governor. (d) (1) Notwithstanding subdivisions (a) and (b), where a tank must be improved, upgraded, or replaced to comply with federal, state, and local regulations on underground storage tanks, newly constructed and new construction does not mean the improvement, upgrade, or replacement of a tank to meet compliance standards, and the improvement, upgrade, or replacement shall be considered to have been performed for the purpose of normal maintenance and repair.(2) Notwithstanding subdivisions (a) and (b), where a structure, or any portion thereof, was reconstructed, as a consequence of completing work on an underground storage tank to comply with federal, state, and local regulations on these tanks, timely reconstruction of the structure shall be considered to have been performed for the purpose of normal maintenance and repair where the structure, or portion thereof, after reconstruction is substantially equivalent to the prior structure in size, utility, and function.
70. (a) Newly constructed and new construction means:
###### 70.
(1) Any addition to real property, whether land or improvements, including fixtures, since the last lien date; and
(2) Any alteration of land or of any improvement, including fixtures, since the last lien date that constitutes a major rehabilitation thereof or that converts the property to a different use.
(b) Any rehabilitation, renovation, or modernization that converts an improvement or fixture to the substantial equivalent of a new improvement or fixture is a major rehabilitation of that improvement or fixture.
(c) (1) Notwithstanding subdivisions (a) and (b), where real property has been damaged or destroyed by misfortune or calamity, newly constructed and new construction does not mean any timely reconstruction of the real property, or portion thereof, where the property after reconstruction is substantially equivalent to the property prior to damage or destruction. Any reconstruction of real property, or portion thereof, that is not substantially equivalent to the damaged or destroyed property, shall be deemed to be new construction and only that portion that exceeds substantially equivalent reconstruction shall have a new base year value determined pursuant to Section 110.1.
(2) In the case where state or local government action mandates a suspension or modification of rebuild development standards, the assessor may align the assessment of substantial equivalence with the requirements and criteria set forth by the government for reconstruction, provided that these standards are designed to expedite the rebuilding of property damaged by the 2025 fire disasters in Palisades, Eaton, Hurst, Lidia, Sunset, or Woodley, as proclaimed by the Governor.
(d) (1) Notwithstanding subdivisions (a) and (b), where a tank must be improved, upgraded, or replaced to comply with federal, state, and local regulations on underground storage tanks, newly constructed and new construction does not mean the improvement, upgrade, or replacement of a tank to meet compliance standards, and the improvement, upgrade, or replacement shall be considered to have been performed for the purpose of normal maintenance and repair.
(2) Notwithstanding subdivisions (a) and (b), where a structure, or any portion thereof, was reconstructed, as a consequence of completing work on an underground storage tank to comply with federal, state, and local regulations on these tanks, timely reconstruction of the structure shall be considered to have been performed for the purpose of normal maintenance and repair where the structure, or portion thereof, after reconstruction is substantially equivalent to the prior structure in size, utility, and function.
The annual fee for an insulation manufacturing license shall be fixed by the bureau in an amount not less than one thousand eight hundred fifty dollars ($1,850) but not more than two thousand six hundred dollars ($2,600).