20250SB__062492CHP INTRODUCED 2025-02-20 AMENDED_SENATE 2025-03-27 AMENDED_SENATE 2025-05-23 AMENDED_ASSEMBLY 2025-06-10 AMENDED_ASSEMBLY 2025-07-03 AMENDED_ASSEMBLY 2025-08-25 PASSED_ASSEMBLY 2025-09-02 PASSED_SENATE 2025-09-11 ENROLLED 2025-09-16 CHAPTERED 2025-10-01 APPROVED 2025-10-01 FILED 2025-10-01 2025 SB CHP CHP 0 Introduced by Senator Caballero (Coauthors: Senators Ashby, Cortese, Wahab, and Weber Pierson) (Coauthors: Assembly Members Bryan and Quirk-Silva) LEAD_AUTHOR SENATE Caballero COAUTHOR SENATE Ashby COAUTHOR SENATE Cortese COAUTHOR SENATE Wahab COAUTHOR SENATE Weber Pierson COAUTHOR ASSEMBLY Bryan COAUTHOR ASSEMBLY Quirk-Silva

An act to add

Section 10618.7 to the Welfare and Institutions Code, relating to public social services. public social services Nonminor dependents: tax guidance. Existing law establishes the Independent Living Program (ILP), that, among its purposes, provides training in daily living skills, budgeting, locating and maintaining housing, and career planning for foster youth up to years of age. Existing federal law authorizes a state, under certain circumstances, to expand eligibility for the ILP to former foster youth who have not attained years of age.

Existing law requires the State Department of Social Services, with the approval of the federal government, to amend the foster care state plan to permit all eligible children to be served by the ILP up to years of age. The Personal Income Tax Law allows a refundable foster youth tax credit for taxable years beginning on or after January 1, 2022, to a qualified taxpayer in a specified amount multiplied by the earned income tax credit adjustment factor, as provided.

This bill, the Foster Outreach and Support for Tax Education Readiness (FOSTER) Act, would require, by no later than July 30, 2026, the department to issue guidance to county welfare departments and juvenile probation departments with information to support best practices for nonminor dependents to file state and federal income tax returns and to access the foster youth tax credit. The bill would require the guidance to be updated as needed and reissued no less than every years.

The bill would specify the information to be included in the guidance issued, including, but not limited to, the eligibility requirements for the foster youth tax credit and the maximum credit available, outreach strategies to increase awareness among nonminor dependents and former foster youth about the foster youth tax credit, and resources from the Internal Revenue Service website for identifying local Volunteer Income Tax Assistance providers.

The bill would require county welfare departments and juvenile probation departments to annually send by mail to every nonminor dependent information about filing state and federal income tax returns and, among other things, the foster youth tax credit and information about local Volunteer Income Tax Assistance sites, as specified. By increasing the duties of county welfare departments and juvenile probation departments, 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. MAJORITY NO YES YES NO NO NO NO NO NO NO The people of the State of California do enact as follows:

SECTION

Section 10618.7 is added to the Welfare and Institutions Code , to read: 10618.7. (

a) This

section shall be known, and may be cited, as the Foster Outreach and Support for Tax Education Readiness (FOSTER) Act. (b)

(1) By no later than July 30, 2026, the department shall issue guidance to county welfare departments and juvenile probation departments with information to support best practices for encouraging nonminor dependents to file state and federal income tax returns and to access the state foster youth tax credit, as described in

Section 17052.2 of the Revenue and Taxation Code.

(2) This guidance shall be updated as needed and reissued no less than every two years thereafter.

(3) The guidance issued pursuant to this subdivision shall include, but not be limited to, all of the following: (

A) The eligibility requirements for the foster youth tax credit and the maximum foster youth tax credit available pursuant to

Section 17502.2 of the Revenue and Taxation Code. (

B) An advisement of the county responsibilities described in subdivision (c). (

C) Outreach strategies to increase awareness among nonminor dependents and former foster youth about the foster youth tax credit. (

D) Resources from the Internal Revenue Service internet website for identifying local Volunteer Income Tax Assistance providers. (

E) Any promising strategies developed by individual counties to communicate with the eligible population about resources available to assist them with tax filing, including county-hosted workshops for foster youth to educate and assist them with filing their taxes, in partnership with a local Volunteer Income Tax Assistance internet website by the Internal Revenue Service or community-based organizations. (

F) Identification of resources available through nonprofit organizations for improving knowledge about the foster youth tax credit. (

G) Identification of resources available through other state agencies to aid with communication or disseminating the information described in subparagraph (

A) and subparagraphs (

C) to (F), inclusive. (c)

(1) The county welfare department and juvenile probation department shall annually send by mail to every nonminor dependent information about filing state and federal income tax returns and the foster youth tax credit.

(2) The mailing pursuant to this subdivision shall occur between November and January 31, inclusive, of each year.

(3) The mailing pursuant to this subdivision shall include, but not be limited to, all of the following information: (

A) Eligibility requirements for the foster youth tax credit pursuant to subdivision (

c) of

Section 17052.2 of the Revenue and Taxation Code. (

B) The maximum amount of the foster youth tax credit for the forthcoming tax season pursuant to paragraph (2) of subdivision (

a) of

Section 17052.2 of the Revenue and Taxation Code. (

C) An advisement that the nonminor dependent may be eligible for other tax credits, including, but not limited to, state and federal earned income tax credits, the federal Child Tax Credit and state Young Child Tax Credit, the federal Child and Dependent Care Credit and state Child and Dependent Care Expenses Credit, the federal American Opportunity Tax Credit, the federal Lifetime Learning Credit, and the state Renters’ Credit. (

D) The location of and how to set up an appointment with or otherwise receive services from local Volunteer Income Tax Assistance internet websites certified by the Internal Revenue Service within the county where the nonminor dependent resides, or, if none are available, those located in nearby counties, and any workshops, as described in subparagraph (

E) of paragraph (3) of subdivision (b). (

E) Resources to assist the nonminor dependent with self-filing federal and state tax returns at no cost.

SEC. 2. To the extent that this act has an overall effect of increasing the costs already borne by a local agency for programs or levels of service mandated by the Realignment Legislation within the meaning of

Section of

Article XIII of the California Constitution, it shall apply to local agencies only to the extent that the state provides annual funding for the cost increase. Any new program or higher level of service provided by a local agency pursuant to this act above the level for which funding has been provided shall not require a subvention of funds by the state or otherwise be subject to

Section of

Article XIII B of the California Constitution.