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AB-1318 • 2026

Public social services: tax-exempt nonprofit organizations.

Public social services: tax-exempt nonprofit organizations.

Taxes
Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor
Bonta
Last action
Official status
Chaptered
Effective date
Not listed

Plain English Breakdown

The official text states the bill takes effect immediately as an urgency statute but does not provide a specific calendar date for enactment in the provided summary.

Expanding Tax-Exempt Status Rules for Social Service Grants

This law allows nonprofit organizations with state tax-exempt status to qualify for certain social service grants and contracts, in addition to those already eligible under federal rules.

What This Bill Does

  • Changes the definition of a qualified nonprofit organization to include groups that meet California's state tax-exempt requirements.
  • States that references to federal tax law for grant eligibility also count as references to the Corporation Tax Law.
  • Applies these new rules to grants and contracts managed by the State Department of Social Services.

Who It Names or Affects

  • Nonprofit organizations seeking eligibility for state or local social service funding.
  • The California State Department of Social Services, which administers refugee, immigrant, and asylee programs.
  • Counties and entities that receive grants to provide legal services or rapid response assistance to immigrants.

Terms To Know

Corporation Tax Law
California state law that sets tax rules for organizations, including exemptions for certain nonprofits.
Qualified nonprofit organization
A group defined by the bill as eligible to receive specific government grants or contracts based on its federal or state tax status.

Limits and Unknowns

  • The law only applies where existing rules already reference federal tax law for grant eligibility.
  • Funding availability depends on whether money is appropriated (approved) by the state legislature.
  • The bill does not change which specific services are provided, only who can receive funding to provide them.

Bill History

  1. California Legislative Information

    Chaptered

Official Summary Text

Public social services: tax-exempt nonprofit organizations.