CA AB 657

Title: Mental Health Services Funding Act.
Author: Corey A. Jackson

Summary
AB 657, as amended, Jackson. Mental Health Services Funding Act. Existing state sales and use tax laws impose a tax on retailers measured by the gross receipts from the sale of tangible personal property sold at retail in this state of, or on the storage, use, or other consumption in this state of, tangible personal property purchased from a retailer for storage, use, or other consumption in this state. The Sales and Use Tax Law provides various exemptions from those taxes, including an exemption for the sale of, or the storage, use, or consumption of, food products for human consumption. Existing law defines “food products” to mean, among other things, sugar and sugar products, candy, gum, confectionery, and cocoa and cocoa products.Existing law establishes the Mental Health Services Fund under the administration of the state and continuously appropriates money in the fund for certain purposes, including programs and other related activities as designated by the Children’s Mental Health Services Act, which establishes an interagency system of care for children with serious emotional and behavioral disturbances that provides comprehensive, coordinated care, as specified.This bill would enact the Mental Health Services Funding Act that would require a distributor to pay a tax upon the distributor’s distributions of candy, as defined, at the rate of $0.05 for each untaxed candy distributed. The bill would define “distribution” to mean the sale, except a retail sale, of untaxed candy in this state. The bill would require all revenues, interest, and penalties, less refunds, collected from the candy tax to be deposited into the Candy Tax Fund, a continuously appropriated fund created by the bill, and would require all amounts in the fund to be distributed to the Mental Health Services Fund. By creating a continuously appropriated fund and allocating additional moneys to a continuously appropriated fund, this bill would make an appropriation.This bill would provide for the administration and collection of the tax described above pursuant to procedures set forth in the Fee Collection Procedures Law. By expanding the application of the Fee Collection Procedures Law, the violation of which is a crime, this bill would impose a state-mandated local program.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 no reimbursement is required by this act for a specified reason.

Status
In committee: Set, first hearing. Hearing canceled at the request of author.

Bill Documents
CA AB 657 - 01/03/24 - Amended Assembly
01/03/24 - CA AB 657 (01/03/24 - Amended Assembly)