Connect with us

California Politics

Senator Wiener’s No Tax Exemption for Insurrection Act, passes Senate

Senate Bill SB 834 strips state tax-exempt status from organizations that engage in or incite insurrection

Published

on

Screenshot/California Legislative TV

SACRAMENTO – Senator Scott Wiener (D-San Francisco)’s Senate Bill 834, the No Tax Exemption for Insurrection Act, passed the Senate by a vote of 28-0 Monday. It will now head to the Assembly for policy committee hearings. 

SB 834 is a first-in-the-nation bill that will revoke the California tax-exempt status of nonprofit organizations that participate in or incite efforts to overthrow the United States government or any state government. Nonprofit organizations have used the “Big Lie” – the fraudulent notion that the 2020 election was stolen – to fundraise for and funnel money to extremist and anti-democratic initiatives like the January 6 insurrection.

Tax-exempt status is a privilege, not a right, and organizations that engage in or incite insurrection or conspiracy to commit insurrection – both of which are illegal – should not be given this special status to help them fundraise. Moreover, non-California nonprofits should not be able to register to raise money in California if they are engaging in or inciting insurrection. 

“On January 6, 2021, the peaceful transfer of power in our democracy was threatened,” said Wiener. “And for the first time since the Civil War, people died as a result. We cannot and will not let organizations that aid and abet insurrection – that break the law by trying to overthrow the U.S. government – operate with tax-exempt status. The people of California should not be subsidizing insurrection.” 

The January 6, 2021 insurrection took place, when pro-Trump extremists – in response to the false narrative that the Democrats “stole” the 2020 election and incited by then-President Donald Trump – breached the United States Capitol. Five people were killed as a result of this insurrection, and hundreds were injured.

Vice President Pence and Speaker Pelosi were specific targets of this violent attack on the nation’s democracy. Many nonprofits that supported the insurrection and continue to perpetuate lies about the 2020 election in hopes of overturning the results still operate with tax-exempt status, both at the federal and state level. 

SB 834 clarifies the Franchise Tax Board’s authority to revoke the California tax-exempt status of a nonprofit organization if the California Attorney General determines that the nonprofit has actively engaged in, or incited: treason, misprision of treason, insurrection, seditious conspiracy, advocating overthrow of the government or the government of any State, or advocating mutiny by members of the military or naval forces of the United States (1.)

Under SB 834, if the Attorney General finds that a nonprofit organization has incited, or actively engaged in actions that are directed to or likely to imminently violate one or more of these crimes, they will notify the FTB, which then will have the ability to revoke the nonprofit’s tax-exempt status. 

For out-of-state nonprofits that engage in or incite insurrection, they will be prohibited from registering to raise money in California. 

The United States Supreme Court has ruled that the purpose of charitable organizations claiming tax-exempt status “may not be illegal or contrary to public policy.” Trying to overturn elections and violently attacking our legislators fits the bill. SB 834 will ensure that these organizations no longer claim this financial advantage. 

Tax-exempt nonprofits are not required to pay corporate income taxes and may be exempt from other taxes as well. Additionally, donations to many nonprofits are deductible from income taxes, and private foundations and donor-advised funds can only donate to tax-exempt nonprofits. Private foundations and donor-advised funds represent a major funding source for many nonprofits. 

Authoritarian and anti-democratic organizations have increasingly used the “Big Lie” to fundraise, and this narrative has driven millions of dollars in tax-exempt donations. And many new organizations have cropped up in the past year, hoping to ride the coattails of the insurrection and cash in.

These include California nonprofits and nonprofits registered in other states that fundraise in California. These organizations, which are fundamentally undermining our democracy and cheering for the destruction of free and fair elections in America, should not be allowed to operate with advantages like tax-exempt status. 

For example, the leader of the “Oath Keepers,” a national militia movement, was charged with seditious conspiracy. While the Oath Keepers does not have California tax-exempt status, it has an “educational foundation” with federal exempt status and tax-exempt branches in several states. In the words of one expert, “It can only be presumed that [funds contributed to the Oath Keepers], which [donors were] able to deduct from their federal taxes, went to transporting and lodging members of the group slated to participate in the ensuing riots.” (2.) These organizations should not be allowed, under any circumstances, to use tax write-offs to help fund illegal activities. 

There is precedent for making this distinction in California’s tax code. Under federal and California law, for instance, if a nonprofit organization supports terrorism, its tax-exempt status is suspended. The nonprofit organizations that support insurrection should receive the same treatment. 

Citations:

1. USC §§ 2381-2385, 2387

2. “Dollars against Democracy: Domestic Terrorist Financing in the Aftermath of Insurrection,” Virtual Hearing before the Subcommittee on National Security, International Development and Monetary Policy of the Committee on Financial Services, U.S. House of Representatives, Feb 25, 2021. 

Senators Josh Becker (D-Peninsula), Dave Min (D-Irvine), Josh Newman (D-Fullerton), Anthony Portantino (D-La Cañada Flintridge), Tom Umberg (D-Orange County), and Bob Hertzberg (D-Van Nuys) are co-authors of this bill. Assemblymembers Buffy Wicks (D-Oakland), Phil Ting (D-San Francisco), Cristina Garcia (D-Bell Gardens) and Marc Berman (D-Menlo Park) are also co-authors of SB 836. Assemblymember Kevin Mullin (D-San Mateo) is principal co-author.

Continue Reading
Advertisement

California Politics

Abortion rights: California Constitutional Amendment heads to ballot

The state is expanding efforts to protect women seeking abortions or reproductive care as well as anyone assisting those women

Published

on

Capitol building in Sacramento (Office of the Governor)

SACRAMENTO – In November, California voters will have an opportunity to amend the state’s constitution to include the right to an abortion and today, Governor Gavin Newsom signed an executive order to further protect women coming to California from other states.

“California will not back down from the fight to protect abortion rights as more than half the states in this country, enabled by the Supreme Court, ban or severely restrict access,” said Newsom. “We are ensuring Californians will have the opportunity this November to enshrine the right to choose in our state constitution. And we’re not waiting until November to take action, today’s executive order ensures that the state will not hand over patients who come here to receive care and will not extradite doctors who provide care to out-of-state patients here. In California, women will remain protected.”  

The order signed today prevents any information, including medical records and patient data, from being shared by state agencies or departments in response to inquiries or investigations brought by other states or individuals within those states looking to restrict access. The state is expanding efforts to protect women seeking abortions or reproductive care as well as anyone assisting those women.

SCA 10 was passed by the California State Assembly today and now heads to the November ballot.  

Within hours of the U.S. Supreme Court’s decision to overturn Roe v. Wade last Friday, Governor Newsom signed legislation to help protect patients and providers in California from civil liability for providing, aiding, or receiving abortion care in the state. In addition, Governor Newsom and the governors of Oregon and Washington launched a new Multi-State Commitment to defend access to reproductive health care and protect patients and providers.  

The budget agreement announced yesterday includes more than $200 million in additional funding for reproductive health care services. Governor Newsom recently signed legislation eliminating copays for abortion care services and has signed into law a legislative package to further strengthen access and protect patients and providers.  

Continue Reading

California Politics

Newsom, Senate & Assembly leaders announce budget agreement

23 million Californians will benefit from direct payments of up to $1,050 & additional funds to help people pay rent & utility bills

Published

on

Governor Newsom with some of the state's leadership Friday (Office of the Governor)

SACRAMENTO – California Governor Gavin Newsom, Senate President pro Tempore Toni G. Atkins (D-San Diego) and Assembly Speaker Anthony Rendon (D-Lakewood) announced they had were able to reach an agreement on the framework for the 2022-23 state budget.

In a statement released Sunday evening, the state’s leadership said:

“California’s budget addresses the state’s most pressing needs, and prioritizes getting dollars back into the pockets of millions of Californians who are grappling with global inflation and rising prices of everything from gas to groceries.

“The centerpiece of the agreement, a $17 billion inflation relief package, will offer tax refunds to millions of working Californians. Twenty-three million Californians will benefit from direct payments of up to $1,050. The package will also include a suspension of the state sales tax on diesel, and additional funds to help people pay their rent and utility bills.

“In addition, California is doubling down in our response to the climate crisis – securing additional power-generating capacity for the summer, accelerating our clean energy future, expanding our ability to prepare for and respond to severe wildfires, extreme heat, and the continuing drought conditions that lie ahead.

“This budget builds on our unprecedented commitment to transform the resources available in our state, from a $47 billion multi-year infrastructure and transportation package to education and health care, showing the nation what a true pro-life agenda looks like. With these new investments, California will become the first state to achieve universal access to health care coverage.

Newsom and his legislative counterparts also highlighted that in the wake of Friday’s stunning U.S. Supreme Court decision, California is reaffirming its commitment to defending reproductive rights, providing more than $200 million in additional funding for reproductive health care services. The state will also be investing in key programs that help California families, from funding for homeownership programs and billions of dollars in additional ongoing funding for education, to universal preschool, children’s mental health, and free school meals.

“In the face of growing economic uncertainty, this budget invests in California’s values while further filling the state’s budget reserves and building in triggers for future state spending to ensure budget stability for years to come,” the statement read.

Yesterday the governor and the leadership agreed to the framework to offset the high cost of gas prices and the hit inflation has created on the wallets of taxpayers, particularly those who least able to bear the added cost burden. Under the budget compromise most California taxpayers would get hundreds of dollars in cash to help offset the high price of fuel and other goods.

Continue Reading

California Politics

Delayed repeal of loitering law targeting sex workers sent to Newsom

SB 357 repeals “loitering with intent to engage in prostitution” law, which results in harassment of transwomen & women of color sex workers

Published

on

Sex workers under arrest by the LASD (Photo Credit: County of Los Angeles)

SACRAMENTO – Senator Scott Wiener (D-San Francisco) sent Senate Bill 357, the Safer Streets for All Act, to Governor Gavin Newsom’s desk for his action Monday. The Legislature passed SB 357 last year, but Senator Wiener held the bill at the Senate desk, delaying its transmittal to the Governor.

Governor Newsom will have 12 days to sign the bill after it is processed by the Senate. SB 357 repeals a provision of California law criminalizing “loitering with the intent to engage in prostitution.” This criminal provision — arrests for which are based on an officer’s subjective perception of whether a person is “acting like” or “looks like” they intend to engage in sex work — results in the disproportionate criminalization of trans, Black and Brown women, and perpetuates violence toward sex workers.

SB 357 is sponsored by a large coalition made up of former and current sex workers, LGTBQ groups like Equality California and Transgender Gender-variant and Intersex Justice Project (TGIJP), and civil rights groups like the ACLU. The Coalition to Abolish Slavery and Trafficking (CAST LA) is supporting the legislation.

SB 357 does not decriminalize soliciting or engaging in sex work. Rather, it simply eliminates an loitering offense that leads to harmful treatment of people for simply “appearing” to be a sex worker.

This crime is so subjective and inherently profiling that it allows a police officer to arrest someone purely based on how they are dressed, whether they’re wearing high heels and certain kinds of make-up, how they’re wearing their hair, and the like. This criminal provision is inherently discriminatory and targets people not for any action but simply based on how they look. People who engage in sex work deserve to be treated with dignity and respect.

Criminalizing sex work does not make sex workers or communities safer. Most criminal penalties for sex workers, loitering laws included, do nothing to stop sex crimes against sex workers and human trafficking. In fact, loitering laws make it harder to identify trafficking victims; trafficking victims are often afraid to come forward in fear of being arrested or incarcerated. 

In February of 2021, a similar piece of legislation to repeal this type of loitering ban became law in New York. SB 357 is part of the movement to end discrimination against and violence toward sex workers, especially the most targeted communities — trans, Black, and Brown people. SB 357 is co-sponsored by Positive Women’s Network – USA, St. James Infirmary, SWOP LA, Trans [email protected] Coalition, Asian Pacific Islander Legal Outreach, Equality California and ACLU California Action. 

Under current law, it is a crime to loiter in a public place with the “intent” to commit a sex work-related offense. But this law can be broadly interpreted, and thus allows for discriminatory application against the LGBTQ community and people of color. Law enforcement can use a non-exhaustive list of circumstances to subjectively determine if someone “intends” to engage in sex work, including factors such as speaking with other pedestrians, being in an area where sex work has occurred before, wearing revealing clothing, or moving in a certain way.

Because current law regarding loitering is highly subjective and vague, law enforcement officers disproportionately profile and target Black and Brown transgender women by stopping and arresting people for discriminatory and inappropriate reasons. This is how Black and Brown transgender women get arrested and cited for simply walking on the street. It also gives law enforcement the ability to more easily target and arrest sex workers.

People in the LGBTQ, Black, and Brown communities report high rates of police misconduct throughout the United States and are disproportionately affected by police violence. Transgender people who have done street-based sex work are more than twice as likely to report physical assault by police officers and four times as likely to report sexual assault by police.

A Black person is 3.5 times more likely to be shot by police than a white person. These statistics are a daily reality that transgender, Black and Brown people face and lead to mistrust of law enforcement.

SB 357 will repeal a discriminatory law that makes it a crime to loiter with the intent to engage in sex work, given that it fails to prevent street-based sex work and disproportionately results in the criminalization of transgender people and communities of color.

“This Pride Month, as we see a surge in violence against and harassment of the LGTBQ community, it is more important than ever to get rid of a law that targets our community,” said Wiener. “Current law essentially allows law enforcement to target and arrest people if they are wearing tight clothes or a lot of make-up. Many of those impacted by this law are Black and Brown trans women. Pride isn’t just about rainbow flags and parades. It’s about protecting the most marginalized in our community. I urge Governor Newsom to sign SB 357.”

“SB 357 repeals a Jim Crow law that criminalized Black and trans people in public spaces,” said Fatima Shabazz of the DecrimSexWorkCA Coalition.

“We hope that the Safer Streets for All Act will help people understand how policing does not create public safety, and will immediately deprive police of one tool they use to harass and oppress folks based on race and gender,” said Ashley Madness of SWOP LA and the DecrimSexWorkCA Coalition.

“Ahora nosotros nos sentimos libre de caminar en la calle sin miedo que la policia nos vaya a arrestar,” (Now we can walk free on the streets without fear of the police arresting us,”) said Lisseth Sánchez of St. James Infirmary and the DecrimSexWorkCA

Continue Reading
Advertisement
Advertisement

Follow Us @LosAngelesBlade

Sign Up for Blade eBlasts

Popular