Friedman’s Bill to Protect Workers Facing Economic Hardship Becomes Law
FOR IMMEDIATE RELEASE: Tuesday, September 15, 2020CONTACT: Blake Dellinger, email@example.com, 818-558-3043
SACRAMENTO – Governor Newsom has signed a measure by Assemblymember Laura Friedman (D-Glendale) to protect Californians faced with economic hardship due to the Covid-19 pandemic. Assembly Bill 276 conforms state tax law to the provision of the federal Coronavirus Aid, Relief, and Economic Security (CARES) Act that removes penalties for those taking a loan from their employer-sponsored defined contribution program.
“During this pandemic, many Californians who are facing unemployment and other hardships are borrowing from their retirement accounts so they can stay afloat,” said Assemblymember Laura Friedman. “This money can be a lifeline for struggling families and every dollar counts. I’m glad that Governor Newsom agrees that they shouldn’t be burdened with penalties under California law.”
Prior to this legislation, The California Personal Income Tax Code did not conform to the CARES Act with respect to the automatic suspension of the 10% penalty for an early distribution from a retirement plan.
AB 276 was sponsored by the California International Alliance of Theatrical Stage Employees Council and the Entertainment Union Coalition.
On the signing of the bill, the Entertainment Union Coalition stated, “We would like to thank Assemblywoman Friedman for her tireless work to gain the passage of AB 276. One of the hallmark benefits of our industry’s strong labor agreements are healthy employer-sponsored defined contribution plans that our members can access to withdraw loans from their personal accounts to pay for mortgages, rent and groceries. AB 276 now ensures that they - and working men and women in similar circumstances throughout the state - will not be hit with a tax penalty for taking out those loans.”
The measure passed the legislature with broad, bipartisan support and went into effect immediately following Governor Newsom’s signature.
Laura Friedman represents the 43rd Assembly District which encompasses the cities of Burbank, Glendale, and La Cañada Flintridge, as well as the communities of La Crescenta and Montrose, and the Los Angeles neighborhoods of Atwater Village, Beachwood Canyon, Los Feliz, East Hollywood, Franklin Hills, and Silver Lake.