State to Issue Golden State Stimulus II Payments
Included as part of California’s annual state budget, a second round of stimulus payments, known as Golden State Stimulus (GSS) II, has been authorized. Senate Bill 139 (Committee on Budget & Fiscal Review), [Chapter 71, Statutes of 2021], provides $8 billion in tax rebate payments for low and middle-income Californians adversely impacted by COVID-19.
As with the first round of GSS payments, CBA’s advocacy team has continued to work closely with state entities in an effort to make these payments identifiable for financial institutions. The Franchise Tax Board (FTB) has furnished estimated distribution dates and the expected payment volume for each of these distributions. As noted in the distribution schedule, GSS II payments will begin in late August, with approximately 60 percent of GSS II payments issued by ACH and 40 percent delivered by paper warrant.
A new Notice to Financial Institutions has been prepared by the FTB specific to GSS II payments. This notice identifies the unique indicators that will appear in ACH payments and provides details regarding the issuance of paper warrants. Unique identifiers included in the ACH payments for GSS II will be distinct from the unique identifiers for GSS I. In addition, existing paper warrant stock used for GSS I (using the paper warrant range series of 60-69 – the first two digits preceding the warrant number) will be used for the first three GSS II paper warrant distributions (October 1, October 15 and 29). New warrant stock, which will include an exclusive, dedicated warrant range series of 80-85 will be used thereafter. The new warrant stock will be a special color (purple/lavender) as a means to distinguish GSS II from other state issued payments.
Relative to paper warrants the FTB is continuing the process developed for GSS I, as described in the Notice to Financial Institutions and included immediately below:
“GSS II warrants will include a notation of ‘GOLDEN STATE STIMULUS II’ printed under the Identification No.
“To obtain the range of valid GSS II warrant numbers, issue dates, and sample of the warrant identification information including the routing number, please contact FTBGSSTIMULUS@ftb.ca.gov. Those that have previously signed up to receive GSSP information will automatically receive the GSS II data.”
Following enactment of GSS I earlier this year, CBA’s advocacy team worked collaboratively with lawmakers on follow-up legislation, Assembly Bill 88 (Committee on Budget), [Chapter 12, Statutes of 2021], exempting GSS payments from garnishment and providing a safe-harbor for financial institutions consistent with industry efforts at the federal level. These same provisions will apply to GSS II payments.
Please let us know if you have any questions. We will provide additional updates as new information develops.