AB-27 • 2026

Personal Income Tax Law: Corporation Tax Law: Chiquita Canyon elevated temperature landfill event: exclusions.

Budget Education Taxes

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Schiavo
Last action: 2025-08-13
Official status: In committee: Set, first hearing. Hearing canceled at the request of author.
Effective date: Not listed

Plain English Breakdown

The bill summary and digest do not provide specific details about expanding eligibility for social programs or reimbursement of local agency costs.

Exclusions from Taxes and Social Programs for Chiquita Canyon Landfill Event

This law excludes certain payments related to the Chiquita Canyon elevated temperature landfill event from personal income tax and corporation tax, and prevents these payments from being counted as income or resources when determining eligibility for social programs.

What This Bill Does

Provides an exclusion from gross income for amounts received on or after March 1, 2024, as compensation for specified costs and losses related to the Chiquita Canyon elevated temperature landfill event in Los Angeles County.
Requires additional information about new tax expenditures related to this bill.
Prohibits any payment amount received by a taxpayer from being considered income or resources when determining eligibility or benefit amounts for means-tested programs like CalWORKs, CalFresh, and Medi-Cal.

Who It Names or Affects

Taxpayers who receive compensation related to the Chiquita Canyon landfill event.
People applying for or receiving social services such as CalWORKs, CalFresh, and Medi-Cal.
Local agencies administering social programs.

Terms To Know

Gross Income: Total income from all sources before any deductions are made.
Tax Expenditure: A reduction in tax revenue due to a provision that excludes certain types of income or provides tax credits and other benefits.

Limits and Unknowns

The bill's effects on social program eligibility depend on federal law.
It is unclear how many people will be affected by the exclusion from gross income.

Bill History

2025-08-13 California Legislative Information
In committee: Set, first hearing. Hearing canceled at the request of author.
2025-07-08 California Legislative Information
From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 5. Noes 0.) (July 7). Re-referred to Com. on APPR.
2025-07-02 California Legislative Information
Re-referred to Com. on HUMAN S.
2025-06-25 California Legislative Information
From committee: Do pass and re-refer to Com. on RLS. (Ayes 5. Noes 0.) (June 25). Re-referred to Com. on RLS.
2025-06-19 California Legislative Information
From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on REV. & TAX.
2025-06-11 California Legislative Information
Referred to Com. on REV. & TAX.
2025-05-29 California Legislative Information
In Senate. Read first time. To Com. on RLS. for assignment.
2025-05-29 California Legislative Information
Read third time. Passed. Ordered to the Senate. (Ayes 71. Noes 0. Page 1774.)
2025-05-27 California Legislative Information
Read second time. Ordered to third reading.
2025-05-23 California Legislative Information
From committee: Do pass. (Ayes 14. Noes 0.) (May 23).
2025-05-21 California Legislative Information
Joint Rule 62(a), file notice suspended. (Page 1627.)
2025-05-21 California Legislative Information
In committee: Set, first hearing. Referred to APPR. suspense file.
2025-05-14 California Legislative Information
In committee: Hearing postponed by committee.
2025-05-06 California Legislative Information
From committee: Do pass and re-refer to Com. on APPR. (Ayes 7. Noes 0.) (May 5). Re-referred to Com. on APPR.
2025-03-10 California Legislative Information
In committee: Set, first hearing. Referred to REV. & TAX. suspense file.
2025-03-04 California Legislative Information
Re-referred to Com. on REV. & TAX.
2025-03-03 California Legislative Information
From committee chair, with author's amendments: Amend, and re-refer to Com. on REV. & TAX. Read second time and amended.
2025-02-03 California Legislative Information
Referred to Com. on REV. & TAX.
2024-12-03 California Legislative Information
From printer. May be heard in committee January 2.
2024-12-02 California Legislative Information
Read first time. To print.

Official Summary Text

AB 27, as amended, Schiavo.
Personal Income Tax Law: Corporation Tax Law: Chiquita Canyon elevated temperature landfill event: exclusions.
The
(1)
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, except as specifically excluded, and provides various exclusions from gross income.
This bill, for taxable years beginning on or after January 1, 2024, and before January 1, 2029, would provide
an exclusion from gross income for amounts received, on or after March 1, 2024, as compensation for specified costs and losses related to the Chiquita Canyon elevated temperature landfill event in the County of Los Angeles, as provided.
Existing law requires a bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives the tax expenditure will achieve, detailed performance indicators, and data collection requirements.
This bill would include additional information required for any bill authorizing a new tax expenditure.
This bill would take effect immediately as a tax levy.
(2) Existing law establishes various means-tested public social services programs administered by counties to provide eligible recipients with certain benefits, including, but not limited to, cash assistance under the California Work Opportunity and Responsibility to Kids (CalWORKs) program, nutrition assistance under the CalFresh program, and health care services under the Medi-Cal program.
Existing law requires the State Department of Social Services, subject to an appropriation in the annual Budget Act, to administer the California Guaranteed Income Pilot Program to provide grants to eligible entities for the purpose of administering pilot programs and projects that provide a guaranteed income to participants. Existing law defines an eligible entity, for purposes of the program, as a nonprofit organization, as specified, or a city, county, or city and county.
This bill would, to the extent permitted by federal law, prohibit any Chiquita Canyon elevated temperature landfill event payment amount received by a taxpayer from being considered income or resources when determining eligibility or benefit amounts for any means-tested program or guaranteed income payments, as defined. To the extent that the bill would expand eligibility for programs administered by counties, the bill would impose a state-mandated local program.
(3) This bill would make legislative findings and declarations related to a gift of public funds.
(4) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would
provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

Current Bill Text

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