CaliforniaBill would exclude Garden Grove leak settlements from taxable income
If enacted, eligible people and businesses could leave certain 2026 Garden Grove chemical-leak settlement payments out of taxable income for 2027 through 2031.
What it does
If enacted, eligible Orange County residents, property owners, and businesses could exclude related Garden Grove chemical-leak settlement payments from taxable income for 2027 through 2031.
If enacted, eligible businesses and property owners could exclude related Garden Grove chemical-leak settlement payments from taxable income for 2027 through 2031.
The bill would set a relief goal and require a 2029 report on the total settlement payments covered by the proposed tax exclusions.
Argument forExcluding qualifying settlement payments could leave affected Orange County people and businesses with more money for recovery and restoration.
Argument againstEligibility depends on specific location, expense, settlement, and timing rules, so some people affected by the leak might not qualify.
More detail
Qualified individuals could leave certain Garden Grove chemical-leak settlement payments out of their California taxable income. This covers taxpayers who lived in Orange County, owned Orange County real property, or had an Orange County business during the leak, paid or incurred related expenses, and received a related settlement payment. The payment must be received in settlement from a settlement entity and must be connected to the chemical leak that began May 21, 2026, at an aerospace manufacturing facility in Garden Grove. A settlement entity must provide payment records to the Franchise Tax Board if the board requests them. The exclusion would apply to taxable years beginning on or after January 1, 2027, and before January 1, 2032; the provision would be repealed December 1, 2032.
Qualified businesses could leave certain Garden Grove chemical-leak settlement payments out of their California taxable income. This covers taxpayers that owned Orange County real property or had an Orange County place of business during the leak, paid or incurred related expenses, and received a related settlement payment. The payment must be received in settlement from a settlement entity and must be connected to the chemical leak that began May 21, 2026, at an aerospace manufacturing facility in Garden Grove. A settlement entity must provide payment records to the Franchise Tax Board if the board requests them. The exclusion would apply to taxable years beginning on or after January 1, 2027, and before January 1, 2032; the provision would be repealed December 1, 2032.
The bill would state the relief goal for the exclusion and require the Franchise Tax Board to report the total settlement payments received by qualified taxpayers. The report would cover payments received from settlement entities because of the 2026 Garden Grove chemical leak. The Franchise Tax Board would report under the Government Code's report-submission rules. The report's disclosure would be an exception to the usual tax-information confidentiality rule. The Franchise Tax Board would have to deliver the written report by November 1, 2029; the exclusion provisions would be repealed December 1, 2032.
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Where it stands
- Introduced
- Passed Assembly
- Passed Senate
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Sep 27Vetoed by Governor Gavin Newsom.Latest
- Sep 14Enrolled and presented to the Governor at 1:30 p.m.To Governor
- Aug 31Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 78. Noes 0. Page 6975.).Major
- Vote recorded AB 760 Ta Concurrence in Senate Amendments. Result: pass.Lower
- Aug 27From committee: That the Senate amendments be concurred in. (Ayes 7. Noes 0.) (August 27).Minor
- Vote recorded With recommendation: That Senate amendments be concurred in. Result: pass.Lower
- Aug 26Joint Rule 62(a), file notice suspended. (Page 6563.)
- Aug 25Re-referred to Com. on REV. & TAX. pursuant to Assembly Rule 77.2.Minor
- Aug 24In Assembly. Concurrence in Senate amendments pending.
- Vote recorded 3rd Reading AB760 Ta et al. By Umberg. Result: pass.Upper
- Aug 24Read third time. Passed. Ordered to the Assembly. (Ayes 39. Noes 0.).Passed Senate
- Aug 19Read second time. Ordered to third reading.Minor
- Aug 18Read third time and amended. Ordered to second reading.Major
- Aug 17Read second time. Ordered to third reading.Minor
- Aug 13Read second time and amended. Ordered returned to second reading.Major
- Vote recorded Do pass as amended. Result: pass.Upper
- Aug 13From committee: Amend, and do pass as amended. (Ayes 7. Noes 0.) (August 13).Major
- Aug 3In committee: Referred to APPR. suspense file.Minor
- Vote recorded Placed on suspense file. Result: pass.Upper
- Jun 25Read second time and amended. Re-referred to Com. on APPR.Major
- Jun 24From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 4. Noes 0.) (June 24).Major
- Vote recorded Do pass as amended, but first amend, and re-refer to the Committee on [Appropriations]. Result: pass.Upper
- Jun 15Re-referred to Com. on REV. & TAX.Minor
- Jun 12Re-referred to Com. on RLS.Minor
- Jun 12Withdrawn from committee.Major
- Jun 11From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on JUD.Major
- 2025
- Jun 20In committee: Set, second hearing. Hearing canceled at the request of author.
- Jun 13In committee: Set, first hearing. Hearing canceled at the request of author.
- May 28Referred to Com. on JUD.Minor
- May 15In Senate. Read first time. To Com. on RLS. for assignment.Minor
- Vote recorded AB 760 Ta Assembly Third Reading. Result: pass.Lower
- May 15Read third time. Passed. Ordered to the Senate. (Ayes 69. Noes 0. Page 1563.)Passed Assembly
- May 12Read second time. Ordered to third reading.Minor
- May 8Read second time and amended. Ordered returned to second reading.Major
- May 7From committee: Amend, and do pass as amended. (Ayes 11. Noes 0.) (May 7).Major
- Vote recorded Do pass as amended. Result: pass.Lower
- Apr 29In committee: Hearing postponed by committee.
- Mar 17Referred to Com. on H. & C.D.Minor
- Feb 19From printer. May be heard in committee March 21.
- Feb 18Read first time. To print.Introduced
Taxes & BudgetEmergency ManagementTrade