Assembly BillVetoedRevenue and Taxation
AB 760: Income taxes: exclusions: 2026 Garden Grove chemical leak.
What AB 760 does, verified October 5, 2026
This bill amends the civil code to allow mobilehome parks to rent out mobilehomes directly to tenants in emergency situations. Mobilehome parks in cities or counties under a state of emergency due to a disaster or housing damage can directly rent out mobilehomes to tenants for a limited emergency period, not exceeding 36 months. This exemption applies to the duration of a tenancy where the tenant is using the mobilehome as their personal and actual residence. The exemption is intended to address a statewide concern, rather than a local issue, and applies to all cities, including charter cities.
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Last action: Vetoed by Governor. (2026-09-27)Alert me
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| Sep. 27, 2026 | Vetoed by Governor. |
| Sep. 14, 2026 | Enrolled and presented to the Governor at 1:30 p.m. |
| Aug. 31, 2026 | Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 78. Noes 0. Page 6975.). |
| Aug. 27, 2026 | From committee: That the Senate amendments be concurred in. (Ayes 7. Noes 0.) (August 27). |
| Aug. 26, 2026 | Joint Rule 62(a), file notice suspended. (Page 6563.) |
Latest bill textEnrolled version, September 4, 2026 · 1,156 words
| Enrolled September 04, 2026 |
| Passed IN Senate August 24, 2026 |
| Passed IN Assembly August 31, 2026 |
| Amended IN Senate August 18, 2026 |
| Amended IN Senate August 13, 2026 |
| Amended IN Senate June 25, 2026 |
| Amended IN Senate June 11, 2026 |
| Amended IN Assembly May 08, 2025 |
CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION
Assembly Bill
No. 760
| Introduced by Assembly Member Ta (Principal coauthor: Senator Strickland) (Coauthors: Assembly Members Chen, Davies, Dixon, Quirk-Silva, and Sanchez) (Coauthors: Senators Choi and Umberg) |
February 18, 2025 |
An act to add and repeal Sections 17138.9 and 24309.8 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
AB 760, Ta. Income taxes: exclusions: 2026 Garden Grove chemical leak.
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 provide various exclusions from gross income.
This bill would, for taxable years beginning on or after January 1, 2027, and before January 1, 2032, provide an exclusion from gross income for any qualified taxpayer, as defined, for amounts received for costs and losses associated with the 2026 Garden Grove chemical leak, as provided.
Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals that 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.
The people of the State of California do enact as follows:
SECTION 1.
(a) The Legislature finds and declares all of the following:(1) In 2026, a chemical leak at an aerospace facility led the Cities of Garden Grove, Stanton, and Westminster to evacuate due to the potential for a catastrophic explosion.
(2) The growing severity of the chemical leak resulted in a gubernatorial proclamation of a state of emergency and a presidential emergency declaration.
(3) The 2026 Garden Grove chemical leak resulted in the evacuation of more than 50,000 residents and caused significant disruption, displacement, economic loss, and personal hardship to residents and businesses throughout the County of Orange.
(4) The California Attorney General has authorized class action lawsuits as a result of the 2026 Garden Grove chemical leak.
(b) It is the intent of the Legislature in enacting Sections 17138.9 and 24309.8 of the Revenue and Taxation Code to ensure that persons receiving settlement payments arising from the 2026 Garden Grove chemical leak retain the maximum practical benefit of those payments for recovery and restoration purposes.
SEC. 2.
Section 17138.9 is added to the Revenue and Taxation Code, to read:17138.9.
(a) For taxable years beginning on or after January 1, 2027, and before January 1, 2032, gross income does not include any qualified amount received by a qualified taxpayer.(b) For purposes of this section:
(1) “2026 Garden Grove chemical leak” means the chemical leak event that began on May 21, 2026, at an aerospace manufacturing facility in the City of Garden Grove.
(2) “Qualified amount” means any amount received in settlement by a qualified taxpayer from a settlement entity in connection with the 2026 Garden Grove chemical leak.
(3) “Qualified taxpayer” means any of the following:
(A) Any taxpayer who owned real property located in the County of Orange during the 2026 Garden Grove chemical leak who paid or incurred expenses and received amounts from a settlement entity arising out of the 2026 Garden Grove chemical leak.
(B) Any taxpayer who resided within the County of Orange during the 2026 Garden Grove chemical leak who paid or incurred expenses and received amounts from a settlement entity arising out of the 2026 Garden Grove chemical leak.
(C) Any taxpayer who had a place of business within the County of Orange during the 2026 Garden Grove chemical leak who paid or incurred expenses and received amounts from a settlement entity arising out of the 2026 Garden Grove chemical leak.
(4) “Settlement entity” means an entity making a settlement payment of a qualified amount to a qualified taxpayer.
(c) The settlement entity shall provide, upon request by the Franchise Tax Board, documentation of the settlement payments in the form and manner requested by the Franchise Tax Board.
(d) (1) For the purpose of complying with Section 41 regarding the exclusion provided by this section and Section 24309.8, the Legislature finds and declares that the specific goal of the tax exclusion is to provide essential relief to individuals who have suffered injury, loss, inconvenience, and expense due to a near-catastrophic environmental disaster precipitated by the 2026 Garden Grove chemical leak.
(2) (A) By November 1, 2029, the Franchise Tax Board shall deliver to the Legislature a written report, in accordance with Section 9795 of the Government Code, that states the aggregate dollar amount of payments received in settlement by qualified taxpayers from a settlement entity arising out of the 2026 Garden Grove chemical leak.
(B) The disclosure requirements of this paragraph shall be treated as an exception to Section 19542.
(e) This section shall remain operative until December 1, 2032, and as of that date is repealed.
SEC. 3.
Section 24309.8 is added to the Revenue and Taxation Code, to read:24309.8.
(a) For taxable years beginning on or after January 1, 2027, and before January 1, 2032, gross income does not include any qualified amount received by a qualified taxpayer.(b) For purposes of this section:
(1) “2026 Garden Grove chemical leak” means the chemical leak event that began on May 21, 2026, at an aerospace manufacturing facility in the City of Garden Grove.
(2) “Qualified amount” means any amount received in settlement by a qualified taxpayer from a settlement entity in connection with the 2026 Garden Grove chemical leak.
(3) “Qualified taxpayer” means any of the following:
(A) Any taxpayer who owned real property located in the County of Orange during the 2026 Garden Grove chemical leak who paid or incurred expenses and received amounts from a settlement entity arising out of the 2026 Garden Grove chemical leak.
(B) Any taxpayer who had a place of business within the County of Orange during the 2026 Garden Grove chemical leak who paid or incurred expenses and received amounts from a settlement entity arising out of the 2026 Garden Grove chemical leak.
(4) “Settlement entity” means an entity making a settlement payment of a qualified amount to a qualified taxpayer.
(c) The settlement entity shall provide, upon request by the Franchise Tax Board, documentation of the settlement payments in the form and manner requested by the Franchise Tax Board.
(d) This section shall remain operative only until December 1, 2032, and as of that date is repealed.
SEC. 4.
This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.Text of AB 760 as enrolled, from the official record. Connect Plus keeps every version and highlights what changed.Compare versions