Scott Wiener's Bills

← All bills

SB 834 · 2021-22

Allows reporting tax-exempt groups that engage in insurrection

Official subject Tax-exempt status: insurrection.

Vetoed Vetoed Sept. 22, 2022

Plain-language summary

Allows the Attorney General to find that a tax-exempt organization engaged in, or incited, acts such as treason, insurrection, or seditious conspiracy under federal law. The Attorney General must notify the Franchise Tax Board of the finding. The bill restates the board's existing power to revoke that organization's tax-exempt status.

How these summaries are written

Official summary · Legislative Counsel's Digest

Describes the final version (Enrolled, Aug. 25, 2022).

Read the official summary (3 paragraphs)

The Corporation Tax Law, in modified conformity with federal law, provides an exemption from the taxes imposed by those laws for specified organizations. Existing law provides that tax-exempt status, under certain circumstances, may be suspended or revoked.

Existing federal law defines various crimes against the established republican form of government, including treason, insurrection, and seditious conspiracy, as provided.

This bill would authorize the Attorney General to make a finding that a tax-exempt organization has actively engaged in, or incited the active engagement in, acts or conspiracies defined as criminal under specified federal law, and likely to produce imminent violation of that federal law. The bill would require the Attorney General to notify the Franchise Tax Board of such a finding, and would state the existing authority of the Franchise Tax Board to revoke the tax-exempt status of the organization found to be in violation.

Official title

An act to add Section 23703.6 to the Revenue and Taxation Code, relating to taxation.

Veto message · Sept. 22, 2022

The Governor's message, verbatim.

To the Members of the California State Assembly:

I am returning Senate Bill 834 without my signature.

This bill allows the Franchise Tax Board to revoke the tax-exempt status of a nonprofit, charitable organization if the California Attorney General determines the organization has engaged in treason, insurrection, conspiracy, government overthrow, or mutiny by members of the military.

Without question, extremist groups that participate in anti-government acts such as those that took place during the insurrection on January 6, 2021 should be renounced and investigated for their participation. However, these are issues that should be evaluated through the judicial system with due process and a right to a hearing.

For these reasons, I am returning SB 834 without my signature.

Sincerely,

Gavin Newsom

Timeline

  1. Jan. 5, 2022 Introduced
  2. May 23, 2022 Passed Senate 28 yes, 0 no
  3. Aug. 22, 2022 Passed Assembly 59 yes, 2 no
  4. Aug. 30, 2022 Enrolled and sent to the Governor
  5. Sept. 22, 2022 Vetoed by the Governor
Full official history (35 actions)
  1. Jan. 5, 2022 Introduced: Introduced. Read first time. To Com. on RLS. for assignment. To print.
  2. Jan. 6, 2022 From printer. May be acted upon on or after February 5.
  3. Jan. 19, 2022 Referred to Com. on RLS.
  4. March 9, 2022 From committee with author's amendments. Read second time and amended. Re-referred to Com. on RLS.
  5. March 17, 2022 Re-referred to Coms. on GOV. & F. and PUB. S.
  6. April 5, 2022 Set for hearing April 21.
  7. April 6, 2022 From committee with author's amendments. Read second time and amended. Re-referred to Com. on GOV. & F.
  8. April 8, 2022 Set for hearing April 26 in PUB. S. pending receipt.
  9. April 13, 2022 April 21 hearing postponed by committee.
  10. April 14, 2022 Set for hearing April 20.
  11. April 18, 2022 From committee with author's amendments. Read second time and amended. Re-referred to Com. on GOV. & F.
  12. April 20, 2022 From committee: Do pass and re-refer to Com. on PUB. S. (Ayes 4. Noes 0. Page 3459.) (April 20). Re-referred to Com. on PUB. S.
  13. April 27, 2022 From committee: Do pass and re-refer to Com. on APPR. (Ayes 4. Noes 0. Page 3518.) (April 26). Re-referred to Com. on APPR.
  14. April 29, 2022 Set for hearing May 9.
  15. May 2, 2022 From committee with author's amendments. Read second time and amended. Re-referred to Com. on APPR.
  16. May 9, 2022 May 9 hearing: Placed on APPR suspense file.
  17. May 13, 2022 Set for hearing May 19.
  18. May 19, 2022 From committee: Do pass. (Ayes 5. Noes 2. Page 3770.) (May 19).
  19. May 19, 2022 Read second time. Ordered to third reading.
  20. May 23, 2022 Passed Senate: Read third time. Passed. (Ayes 28. Noes 0. Page 3833.) Ordered to the Assembly.
  21. May 24, 2022 In Assembly. Read first time. Held at Desk.
  22. May 27, 2022 Referred to Coms. on REV. & TAX. and PUB. S.
  23. June 14, 2022 Coauthors revised.
  24. June 14, 2022 From committee: Do pass and re-refer to Com. on PUB. S. (Ayes 7. Noes 0.) (June 13). Re-referred to Com. on PUB. S.
  25. June 29, 2022 From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 5. Noes 0.) (June 28).
  26. June 30, 2022 Read second time and amended. Re-referred to Com. on APPR.
  27. Aug. 3, 2022 August 3 set for first hearing. Placed on suspense file.
  28. Aug. 11, 2022 From committee: Do pass. (Ayes 12. Noes 0.) (August 11).
  29. Aug. 15, 2022 Read second time. Ordered to third reading.
  30. Aug. 22, 2022 Passed Assembly: Read third time. Passed. (Ayes 59. Noes 2. Page 6006.) Ordered to the Senate.
  31. Aug. 22, 2022 In Senate. Concurrence in Assembly amendments pending.
  32. Aug. 23, 2022 Assembly amendments concurred in. (Ayes 31. Noes 0. Page 5009.) Ordered to engrossing and enrolling.
  33. Aug. 30, 2022 Enrolled and sent to the Governor: Enrolled and presented to the Governor at 3 p.m.
  34. Sept. 22, 2022 Vetoed by the Governor: Vetoed by the Governor.
  35. Sept. 22, 2022 In Senate. Consideration of Governor's veto pending.