Amended in Assembly April 18, 2013

California Legislature—2013–14 Regular Session

Assembly BillNo. 394


Introduced by Assembly Members Yamada and Grove

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(Principal coauthors: Assembly Members Achadjian, Allen, Ammiano, Bonilla, Buchanan, Chesbro, Beth Gaines, Garcia, Hagman, Harkey, Nestande, Olsen, Quirk-Silva, Rendon, Ting, Wagner, Wilk, and Williams)

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(Coauthors: Senators Fuller, Hill, and Knight)

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February 15, 2013


An act to amend Section 18766 of the Revenue and Taxation Code, relating to personal income tax.

LEGISLATIVE COUNSEL’S DIGEST

AB 394, as amended, Yamada. Personal income tax: voluntary contributions: Alzheimer’s disease.

The Personal Income Tax Law allows taxpayers, until January 1, 2015, to contribute amounts in excess of their tax liability for the support of the California Alzheimer’s Disease and Related Disorders Research Fund, unless earlier repealed for failure to meet annual minimum contribution amounts.

This bill wouldbegin delete extend the date, January 1,end delete 2015, tobegin insert make these provisions effective for taxable years beginning beforeend insert January 1, 2020.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1

SECTION 1.  

Section 18766 of the Revenue and Taxation Code
2 is amended to read:

3

18766.  

(a) Except as otherwise provided in paragraph (2) of
4subdivision (b), this article shall remain in effect onlybegin delete untilend deletebegin insert for
5taxable years beginning before end insert
January 1, 2020, and as of
6December 1 of that year is repealed .

7(b) (1) By September 1, 2006, and by September 1 of each
8subsequent calendar year that the California Alzheimer’s Disease
9and Related Disorders Research Fund appears on a tax return, the
10Franchise Tax Board shall do all of the following:

11(A) Determine the minimum contribution amount required to
12be received during the next calendar year for the fund to appear
13on the tax return for the taxable year that includes that next calendar
14year.

15(B) Provide written notification to the Secretary of California
16Health and Human Services of the amount determined in
17subparagraph (A).

18(C) Determine whether the amount of contributions estimated
19to be received during the calendar year will equal or exceed the
20minimum contributions amount determined by the Franchise Tax
21Board for the calendar year pursuant to subparagraph (A). The
22Franchise Tax Board shall estimate the amount of contributions
23to be received by using the actual amounts received and an estimate
24of the contributions that will be received by the end of that calendar
25year.

26(2) If the Franchise Tax Board determines that the amount of
27contributions estimated to be received during a calendar year will
28not at least equal the minimum contribution amount for the calendar
29year, this article shall be inoperative with respect to taxable years
30beginning on or after January 1 of that calendar year and shall be
31repealed on December 1 of that year.

32(3) For purposes of this section, the minimum contribution
33amount for a calendar year means two hundred fifty thousand
34dollars ($250,000) for the 2000 calendar year or the minimum
35contribution amount as adjusted pursuant to subdivision (c).

36(c) For each calendar year, beginning with calendar year 2001,
37the Franchise Tax Board shall adjust, on or before September 1 of
P3    1that calendar year, the minimum contribution amount specified in
2subdivision (b) as follows:

3(1) The minimum contribution amount for the calendar year
4shall be an amount equal to the product of the minimum
5contribution amount for the prior calendar year multiplied by the
6inflation factor adjustment as specified in paragraph (2) of
7subdivision (h) of Section 17041, rounded off to the nearest dollar.

8(2) The inflation factor adjustment used for the calendar year
9shall be based on the figures for the percentage change in the
10California Consumer Price Index received on or before August 1
11of the calendar year pursuant to paragraph (1) of subdivision (h)
12of Section 17041.

13(d) Notwithstanding the repeal of this article, any contribution
14amounts designated pursuant to this article prior to its repeal shall
15continue to be transferred and disbursed in accordance with this
16article as in effect immediately prior to that repeal.



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