BILL NUMBER: SB 1359	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  AUGUST 24, 2012

INTRODUCED BY   Senator Simitian

                        FEBRUARY 24, 2012

   An act to amend  Section 42231 of the Public Resources
Code, relating to solid waste   Sections 18796 and 18864
of the Revenue and Taxation Code, relating to taxation  , and
declaring the urgency thereof, to take effect immediately.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1359, as amended, Simitian.  Solid waste: compost.
  Personal income taxes: contributions: California
Breast Cancer Research Fund: California Cancer Research Fund. 

   Personal Income Tax Law allows taxpayers, until January 1, 2013,
to designate on their tax returns that a specified amount in excess
of their tax liability be contributed to the California Breast Cancer
Research Fund.  
   This bill would extend the operation of those provisions until
January 1, 2018.  
   The Personal Income Tax Law allows taxpayers to designate on their
tax returns that a specified amount in excess of their tax liability
be contributed to the California Cancer Research Fund. Existing law
provides that these provisions are repealed on either January 1 of
the 5th taxable year following the taxable year the fund first
appears on the personal income tax return or on January 1 of an
earlier taxable year, if the Franchise Tax Board estimates that the
annual contribution amount will be less than $250,000, or an adjusted
amount, as specified, for subsequent taxable years.  
   This bill would instead provide that these provisions are repealed
on either January 1, 2018, or on January of an earlier taxable year,
if the Franchise Tax Board estimates that the annual contribution
amount will be less than the amounts described above.  
    The California Integrated Waste Management Act of 1989, which is
administered by the Department of Resources Recycling and Recovery,
defines "compost" for purposes of the act as the product resulting
from the controlled biological decomposition of organic wastes that
are source separated from the municipal solid waste stream or source
separated at a centralized facility and includes vegetable, yard, and
wood wastes that are not hazardous waste. Existing law also defines
"compost" for purposes of certain provisions within the act requiring
the purchase of compost by state agencies in similar a manner except
that it does not include wastes source separated at a centralized
facility and does not specify that wastes include vegetable, yard, or
wood wastes that are not hazardous waste.  
   This bill would revise the definition of compost applicable to
state agency purchases to conform to the definition applicable to the
whole act. 
   This bill would declare that it is to take effect immediately as
an urgency statute.
   Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 18796 of the   Revenue
and Taxation Code   is amended to read: 
   18796.  (a) This article shall remain in effect only until January
1,  2013   2018  , and as of that date is
repealed  , unless a later enacted statute, which is enacted
before January 1, 2013, deletes that date  .
   (b) (1) By September 1, 2006, and by September 1 of each
subsequent calendar year that the California Breast Cancer Research
Fund appears on a tax return, the Franchise Tax Board shall do all of
the following:
   (A) Determine the minimum contribution amount required to be
received during the next calendar year for the fund to appear on the
tax return for the taxable year that includes that next calendar
year.
   (B) Provide written notification to the University of California
of the amount determined in subparagraph (A).
   (C) Determine whether the amount of contributions estimated to be
received during the calendar year will equal or exceed the minimum
contribution amount determined by the Franchise Tax Board for the
calendar year pursuant to subparagraph (A). The Franchise Tax Board
shall estimate the amount of the contributions to be received by
using the actual amounts received and an estimate of the
contributions that will be received by the end of that calendar year.

   (2) If the Franchise Tax Board determines that the amount of
contributions estimated to be received during a calendar year will
not at least equal the minimum contribution amount for the calendar
year, this article is repealed with respect to taxable years
beginning on or after January 1 of that calendar year.
   (3) For purposes of this section, the minimum contribution amount
for a calendar year means two hundred fifty thousand dollars
($250,000) for the 1997 calendar year or the minimum contribution
amount adjusted pursuant to subdivision (c).
   (c) For each calendar year, beginning with calendar year 1998, the
Franchise Tax Board shall adjust, on or before September 1 of that
calendar year, the minimum contribution amount specified in
subdivision (b) as follows:
   (1) The minimum contribution amount for the calendar year shall be
an amount equal to the product of the minimum contribution amount
for the prior calendar year multiplied by the inflation factor
adjustment as specified in paragraph (2) of subdivision (h) of
Section 17041, rounded off to the nearest dollar.
   (2) The inflation factor adjustment used for the calendar year
shall be based on the figures for the percentage change in the
California Consumer Price Index that are received on or before August
1 of the calendar year pursuant to paragraph (1) of subdivision (h)
of Section 17041.
   (d) Notwithstanding the repeal of this article, any contribution
amounts designated pursuant to this article prior to its repeal shall
continue to be transferred and disbursed in accordance with this
article as in effect immediately prior to that repeal.
   SEC. 2.    Section 18864 of the   Revenue
and Taxation Code   is amended to read: 
   18864.  (a) Except as otherwise provided in subdivision (b), this
article shall remain in effect only until January 1  of the
fifth taxable year following the first appearance of the California
Cancer Research Fund on the personal income tax return  
, 2018  , and as of that date is repealed  , unless a
later enacted statute, that is enacted before the applicable date,
deletes or extends that date  .
   (b) (1) By September 1 of the second calendar year and each
subsequent calendar year that the California Cancer Research Fund
appears on the tax return, the Franchise Tax Board shall do all of
the following:
   (A) Determine the minimum contribution amount required to be
received during the next calendar year for the fund to appear on the
tax return for the taxable year that includes that next calendar
year.
   (B) Provide written notification to the Regents of the University
of California of the amount determined in subparagraph (A).
   (C) Determine whether the amount of contributions estimated to be
received during the calendar year will equal or exceed the minimum
contribution amount determined by the Franchise Tax Board for the
calendar year pursuant to subparagraph (A). The Franchise Tax Board
shall estimate the amount of contributions to be received by using
the actual amounts received and an estimate of the contributions that
will be received by the end of that calendar year.
   (2) If the Franchise Tax Board determines that the amount of the
contributions estimated to be received during a calendar year will
not at least equal the minimum contribution amount for the calendar
year, this article is repealed with respect to taxable years
beginning on or after January 1 of that calendar year.
   (3) For purposes of this section, the minimum contribution amount
for a calendar year means two hundred fifty thousand dollars
($250,000) for the second calendar year after the first appearance of
the California Cancer Research Fund on the personal income tax
return or the adjusted minimum contribution amount adjusted pursuant
to subdivision (c).
   (c) For each calendar year, beginning with the third calendar year
after the first appearance of the California Cancer Research Fund on
the personal income tax return, the Franchise Tax Board shall
adjust, on or before September 1 of that calendar year, the minimum
contribution amount specified in subdivision (b) as follows:
   (1) The minimum estimated contribution amount for the calendar
year shall be an amount equal to the product of the minimum estimated
contribution amount for the calendar year multiplied by the
inflation factor adjustment as specified in subparagraph (A) of
paragraph (2) of subdivision (h) of Section 17041, rounded off to the
nearest dollar.
   (2) The inflation factor adjustment used for the calendar year
shall be based on the figures for the percentage change in the
California Consumer Price Index received on or before August 1 of the
calendar year pursuant to paragraph (1) of subdivision (h) of
Section 17041.
   (d) Notwithstanding the repeal of this article, any contribution
amounts designated pursuant to this article prior to its repeal shall
continue to be transferred and disbursed in accordance with this
article as in effect immediately prior to that repeal. 
  SECTION 1.    Section 42231 of the Public
Resources Code is amended to read:
   42231.  "Compost" has the same meaning as defined in Section
40116. 
   SEC. 2.   SEC. 3.   This act is an
urgency statute necessary for the immediate preservation of the
public peace, health, or safety within the meaning of Article IV of
the Constitution and shall go into immediate effect. The facts
constituting the necessity are: 
   Due to the need to encourage the use of composting, thereby
protecting the public health and safety and the environment 

    In order to ensure that taxpayers are allowed to continue to
contribute amounts in excess of their tax liability for the support
of cancer research  , it is necessary that this act take effect
immediately.