Bill Commons

CA AB 232

dead

Natural disasters: catastrophe savings accounts: personal income tax.

California · 2025-2026 Regular Session · lower

Quick answers

Did CA AB 232 pass?

No. CA AB 232 did not pass — it was defeated or died in the legislative process (2026-02-02). Latest recorded action (2026-02-02): From committee: Filed with the Chief Clerk pursuant to Joint Rule 56.

What is CA AB 232 about?

The Personal Income Tax Law, in modified conformity with federal income tax laws, allows various deductions from gross income in calculating adjusted gross income. This bill, for taxable years beginning on or after January 1, 2026, and before January 1, 2031, would allow a deduction from adjusted gross income for amounts contributed by a qualified taxpayer, as defined, to a catastrophe savings account, in accordance with specified provisions. The bill would define "catastrophe savings account" to mean a regular savings account or money market account with a financial institution that, among other requirements, is established to pay for the qualified catastrophe expenses, as defined, of a qualified taxpayer establishing the account, as provided. The bill would subject a qualified taxpayer to a specified penalty if they use a distribution from a catastrophe savings account to cover an expense other than a qualified catastrophe expense. The Personal Income Tax Law, in conformity with federal income tax law, generally defines "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, 2026, and before January 1, 2031, would provide an exclusion from gross income for interest earned by a catastrophe savings account until December 1, 2030. Existing law requires any bill authorizing a new tax expenditure, as defined, to include tax credits, deductions, exclusions, or exemptions, to contain, among other things, specific goals, purposes, and objectives that the tax credit will achieve, detailed performance indicators, and data collection requirements. This bill would include findings and reporting requirements in compliance with this requirement. This bill would take effect immediately as a tax levy.

Who sponsors CA AB 232?

Calderon is the primary sponsor of CA AB 232, joined by 2 cosponsors.

Description

The Personal Income Tax Law, in modified conformity with federal income tax laws, allows various deductions from gross income in calculating adjusted gross income. This bill, for taxable years beginning on or after January 1, 2026, and before January 1, 2031, would allow a deduction from adjusted gross income for amounts contributed by a qualified taxpayer, as defined, to a catastrophe savings account, in accordance with specified provisions. The bill would define "catastrophe savings account" to mean a regular savings account or money market account with a financial institution that, among other requirements, is established to pay for the qualified catastrophe expenses, as defined, of a qualified taxpayer establishing the account, as provided. The bill would subject a qualified taxpayer to a specified penalty if they use a distribution from a catastrophe savings account to cover an expense other than a qualified catastrophe expense. The Personal Income Tax Law, in conformity with federal income tax law, generally defines "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, 2026, and before January 1, 2031, would provide an exclusion from gross income for interest earned by a catastrophe savings account until December 1, 2030. Existing law requires any bill authorizing a new tax expenditure, as defined, to include tax credits, deductions, exclusions, or exemptions, to contain, among other things, specific goals, purposes, and objectives that the tax credit will achieve, detailed performance indicators, and data collection requirements. This bill would include findings and reporting requirements in compliance with this requirement. This bill would take effect immediately as a tax levy.

Introduced
2025-04-11
Latest action
2026-02-02 — From committee: Filed with the Chief Clerk pursuant to Joint Rule 56.
Bill type
bill
Last updated

Subjects

Sponsors

  • Calderonauthor
  • Gipsonauthor
  • Valenciacoauthor

Committees

Not provided by source.

Action timeline

  1. 2025-01-13

    Read first time. To print.

    reading-1

  2. 2025-01-14

    From printer. May be heard in committee February 13.

  3. 2025-02-10

    Referred to Coms. on B. & F. and REV. & TAX.

    referral-committee

  4. 2025-03-03

    Coauthors revised.

  5. 2025-03-03

    From committee: Do pass and re-refer to Com. on REV. & TAX. (Ayes 8. Noes 0.) (March 3). Re-referred to Com. on REV. & TAX.

    committee-passage,committee-passage-favorable,referral-committee

  6. 2025-04-11

    From committee chair, with author's amendments: Amend, and re-refer to Com. on REV. & TAX. Read second time and amended.

    amendment-introduction,amendment-passage,committee-passage,reading-1,reading-2,referral-committee

  7. 2025-04-21

    Re-referred to Com. on REV. & TAX.

    referral-committee

  8. 2025-04-21

    In committee: Set, first hearing. Referred to suspense file.

    referral-committee

  9. 2025-05-06

    From committee: Do pass and re-refer to Com. on APPR. (Ayes 7. Noes 0.) (May 5). Re-referred to Com. on APPR.

    committee-passage,committee-passage-favorable,referral-committee

  10. 2025-05-14

    In committee: Hearing postponed by committee.

  11. 2025-05-21

    In committee: Set, first hearing. Referred to APPR. suspense file.

    referral-committee

  12. 2025-05-21

    Joint Rule 62(a), file notice suspended. (Page 1627.)

  13. 2025-05-23

    In committee: Held under submission.

  14. 2026-01-31

    Died pursuant to Art. IV, Sec. 10(c) of the Constitution.

    failure

  15. 2026-02-02

    From committee: Filed with the Chief Clerk pursuant to Joint Rule 56.

    committee-passage,failure

Versions

Documents

Votes

  • Do pass and be re-referred to the Committee on [Revenue and Taxation]

    2025-03-03 · pass · 8-0

    Member-level votes (9)
    • Fong: yes
    • Valencia: yes
    • Michelle Rodriguez: yes
    • Soria: yes
    • Krell: yes
    • Blanca Rubio: yes
    • Dixon: yes
    • Chen: yes
    • Schiavo: other
  • Do pass and be re-referred to the Committee on [Appropriations]

    2025-05-05 · pass · 7-0

    Member-level votes (7)
    • McKinnor: yes
    • Ta: yes
    • Gipson: yes
    • Garcia: yes
    • Carrillo: yes
    • Quirk-Silva: yes
    • DeMaio: yes

Related bills

No related bills recorded for this bill.

Official source

Attribution

Data from openstates_bulk_csv, retrieved 2026-07-24T01:34:27.960412Z

Inspect retained evidence for changes recorded after evidence tracking began:

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