BILL NUMBER: SB 355 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY AUGUST 4, 2014
AMENDED IN ASSEMBLY JULY 2, 2014
AMENDED IN ASSEMBLY MAY 27, 2014
AMENDED IN SENATE MAY 13, 2013
AMENDED IN SENATE MAY 7, 2013
AMENDED IN SENATE APRIL 25, 2013
AMENDED IN SENATE APRIL 15, 2013
INTRODUCED BY Senator Beall
FEBRUARY 20, 2013
An act to amend Sections 37006, 37011, 37012, 37013,
37014, 37032, 37034, 37035, and 37036 of the Public Resources Code,
and to amend Sections 17053.30 and 23630 of the Revenue and
Taxation Code, relating to conservation, and making an
appropriation therefor. taxation, to take effect
immediately, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
SB 355, as amended, Beall. Conservation: tax credits:
grant in lieu of tax credits. Income taxes: credit:
conservation.
The Natural Heritage Preservation Tax Credit Act of 2000 requires
the Wildlife Conservation Board to implement a program under which
property, as defined, may be contributed to the state, any local
government, as defined, or to any nonprofit organization designated
by a local government, based on specified criteria, in order to
provide for the protection of wildlife habitat, open space, and
agricultural lands.
The Personal Income Tax Law and the Corporation Tax Law allow a
credit against the taxes imposed by those laws in the amount equal to
55% of the fair market value of any qualified contribution, defined
as a contribution of property that has been approved for
acceptance by the Wildlife Conservation Board, made,
that is made no later than June 30, 2015, during
the taxable year pursuant to the Natural Heritage Preservation Tax
Credit Act of 2000, as provided. Those laws allow the credit to be
carried over for 8 years if necessary.
The Natural Heritage Preservation Tax Credit Act of 2000
establishes the Natural Heritage Preservation Tax Credit
Reimbursement Account in the General Fund to receive bond fund moneys
from a local government or a department that is authorized to expend
the moneys to acquire property by donation under the act. Existing
law requires moneys in the account to be transferred to the General
Fund for reimbursement of tax credits claimed under the act.
This bill would extend the period for when a qualified
contribution is made for which a tax credit would be allowed to June
30, 2020. This bill would also extend the carryover period to 15
years for a qualified contribution made on or after January 1,
2015 .
This bill would also allow, in lieu of those tax credits, a donor
of a qualified contribution made on or after January 1, 2015, and
not later than June 30, 2020, to make an irrevocable election to
receive a grant, as specified. This bill would require a department
or local government authorized to expend bond fund moneys to acquire
property by donation to transfer amounts necessary to make the grants
in lieu of the tax credits to the Natural Heritage Preservation Tax
Credit Reimbursement Account. This bill would, upon receipt of funds
in the Natural Heritage Preservation Tax Credit Reimbursement Account
that are attributable to those grant amounts, continuously
appropriate those funds to the Controller for transfer to the board
to make the payment of those grants. This bill would exempt from
gross income of a taxpayer any grant in lieu of the tax credit.
This bill would take effect immediately as a tax levy.
Vote: majority. Appropriation: yes no
. Fiscal committee: yes. State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 37006 of the Public
Resources Code is amended to read:
37006. (a) Under the program, upon approval by the board, a donor
may contribute qualified property to a donee and receive a tax
credit for a portion of the value of the property, as provided in
Sections 17053.30 and 23630 of the Revenue and Taxation Code.
(b) (1) In lieu of a tax credit under Section 17053.30 or Section
23630 of the Revenue and Taxation Code, a donor of a qualified
contribution made on or after January 1, 2015, and not later than
June 30, 2020, may elect to receive a grant under this subdivision.
The election shall be irrevocable and shall be reflected in the
application of the donor submitted pursuant to Section 37011.
(2) The board shall, subject to the requirements of this
subdivision and as permitted by available funds pursuant to Chapter 7
(commencing with Section 37030), provide a grant to the donor of the
qualified contribution.
(3) The amount of the grant under this subdivision shall be an
amount equal to 55 percent of the fair market value of any
contribution of property, as defined in Section 37002, that has been
approved for acceptance by the board pursuant to this division.
(4) The board shall make payment of any grant under this
subdivision during the 60-day period beginning on the latter of
either of the following:
(A) The date of the application for the grant.
(B) The date the qualified contribution was made.
(c) The board shall adopt guidelines or regulations to implement
the program, including procedures for applications submitted pursuant
to Chapter 4 (commencing with Section 37010), for the grant in lieu
of the tax credit, and for the evaluation of properties proposed to
be contributed pursuant to the program. Chapter 3.5 (commencing with
Section 11340) of Part 1 of Division 3 of Title 2 of the Government
Code does not apply to the guidelines or regulations adopted pursuant
to this section.
SEC. 2. Section 37011 of the Public Resources
Code is amended to read:
37011. At a minimum, each application shall contain all of the
following:
(a) The identification of the donor and donee.
(b) A description of the property, including documentation of how
the property meets the criteria and qualifies for acceptance under
the program.
(c) A property appraisal meeting the requirements of Section 170
of Title 26 of the United States Code, setting forth the fair market
value of the property.
(d) (1) A certification by the donor that the donor received no
other valuable consideration for the donation of property.
(2) A certification by the donor that the contribution was not,
and is not, required to satisfy a condition imposed upon the donor by
any lease, permit, license, certificate, or other entitlement for
use issued by one or more public agencies, including, but not limited
to, the mitigation of significant effects on the environment of a
project pursuant to an approved environmental impact report or
mitigated negative declaration required pursuant to the California
Environmental Quality Act (Division 13 (commencing with Section
21000)).
(e) A certification by the donor that the application discloses
any known or suspected environmental conditions associated with the
property.
(f) Any election of the donor, irrevocable if made, to receive a
grant under Section 37006 in lieu of the tax credits under Sections
17053.30 and 23630 of the Revenue and Taxation Code.
SEC. 3. Section 37012 of the Public Resources
Code is amended to read:
37012. (a) Each donee shall evaluate applications submitted to it
and prepare a plan for the board that sets forth the donee's
priorities for acquisition of property that qualifies under the
program. Consistent with the criteria established for the program,
each donee may use its own priority lists and procedures in
determining which properties or types of properties shall be given
priority.
(b) Each donee or the board may request that the applicant supply
further information reasonably necessary to allow the donee or the
board to evaluate the proposed donation.
(c) The department may accept contributions of money from any
taxpayer to pay or reimburse the costs of appraisal, escrow, title,
and other transaction costs associated with the contribution of any
particular property or set of properties, including any environmental
assessments required by the department, and the costs of preparing
any necessary management plan for the property or set of properties.
(d) Prior to acquiring an easement or other interest in land
pursuant to this division, a public hearing shall be held by the
donee, if the donee is a public agency, or by the board if the donee
is a designated nonprofit organization, in the local community.
Notice shall be given by the donee or the board to the county board
of supervisors of the affected county, adjacent landowners, affected
water districts, local municipalities, and other interested parties,
as determined by the donee or the board.
(e) When submitting a donation of qualified property to the board
for final approval, the donee shall provide the board with the fair
market value of the property proposed for acceptance, based on
appraisals that have been reviewed and approved by the Department of
General Services.
(f) The donee shall notify the board of any irrevocable election
made by the donor to receive a grant under Section 37006 in lieu of
the tax credits under Sections 17053.30 and 23630 of the Revenue and
Taxation Code.
SEC. 4. Section 37013 of the Public Resources
Code is amended to read:
37013. The board shall provide a list to the Joint Legislative
Budget Committee and the Franchise Tax Board, in the form and manner
determined by the Franchise Tax Board, of the names, taxpayer
identification numbers, including taxpayer identification numbers of
each partner or shareholder, as applicable, a legal description of
the donated property, and the total amount of the tax credit or grant
in lieu of the tax credit approved for each donation.
SEC. 5. Section 37014 of the Public Resources
Code is amended to read:
37014. Assets received by a donee pursuant to this division shall
not be deemed transfers pursuant to Chapter 9 (commencing with
Section 2780) of Division 3 of the Fish and Game Code. Funds from the
Habitat Conservation Fund, the Environmental Enhancement and
Mitigation Program Fund created pursuant to Section 164.56 of the
Streets and Highways Code, the State Parks and Recreation Fund, and
the Wildlife Restoration Fund, may not be used to fund the tax credit
or grant in lieu of the tax credit authorized pursuant to this
division.
SEC. 6. Section 37032 of the Public Resources
Code is amended to read:
37032. (a) If a department or local government identifies
property that may be acquired pursuant to this division and
determines that the acquisition would comply with the purpose of a
bond provision listed in subdivision (c) and any applicable
guidelines developed for that bond provision by the administering
agency, and all of the requirements of this division are met and the
department or local government acquires the property pursuant to this
division, the department or local government may expend funds from
the bond provision that have been appropriated, allocated, or awarded
to it, to acquire the property using the tax credit or grant in lieu
of the tax credit provided by this division.
(b) The applicable bond provisions from which a department or
local government may use bond funds to acquire property using the tax
credit or grant in lieu of the tax credit provided by this division
do not include grants of bond funds distributed through a competitive
process.
(c) The applicable bond provisions from which a department or
local government may expend bond funds pursuant to subdivision (a)
are the following:
(1) Section 5096.615.
(2) Subdivision (a) or (b), or paragraph (1) of subdivision (c),
of Section 5096.650.
(3) Funds under paragraph (2) of subdivision (c) of Section
5096.650 that are to be expended pursuant to paragraph (6) of
subdivision (b) of Section 31220.
(4) Section 79541 of the Water Code.
(5) Section 79542 of the Water Code.
(6) Section 79544 of the Water Code.
(7) Subdivision (e) or (f) of Section 79550 of the Water Code.
(8) Section 79565 of the Water Code.
(9) Section 79568 of the Water Code.
(10) Section 79570 of the Water Code.
(11) Section 79572 of the Water Code.
(12) Other bond funds, if the bond act specifies that its funds
may be used for the purposes of this division.
SEC. 7. Section 37034 of the Public Resources
Code is amended to read:
37034. (a) (1) If a department determines that property is
available for acquisition by donation, and that the acquisition of
the property would comply with the requirements of an applicable bond
provision specified in subdivision (c) of Section 37032 and any
applicable guidelines developed for that bond provision by the
administering agency, and the department believes the acquisition of
the property would comply with the requirements of this division, the
department may request the prospective donor of the property to
submit an application pursuant to Section 37010. If the prospective
donor agrees to submit that application, the department may apply for
approval of the donation pursuant to the requirements of this
division.
(2) If a local government determines that property is available
for acquisition by donation, and that the acquisition of the property
would comply with the requirements of an applicable bond provision
specified in subdivision (c) of Section 37032 and any applicable
guidelines developed for that bond provision by the administering
agency, and the local government believes that the acquisition of the
property would comply with the requirements of this division, the
local government may request the department that allocated to it the
relevant bond funds to determine whether it agrees with the local
government's determinations and beliefs made pursuant to this
paragraph. If the department agrees with the local government and
gives its approval for the acquisition with bond funds that it has
allocated to the local government, the local government may request
the prospective donor of the property to submit an application
pursuant to Section 37010. If the prospective donor agrees to submit
the application, the local government may apply for approval of the
donation pursuant to the requirements of this division.
(3) In addition to the requirements of Section 37011, the
application shall include, and shall not be accepted if it does not
include, a signed authorization by the donor, in a form and manner
mutually agreeable to the board and the Franchise Tax Board, for the
disclosure of the information necessary to make the payment as
required by subdivision (b). For purposes of subdivision (b) of
Section 1798.24 of the Civil Code, the signed authorization shall be
the donor's voluntary consent to the disclosure of the information.
(b) (1) If the board gives approval, the department or local
government may acquire the property pursuant to this division.
Through the process outlined in this section, the department shall
reimburse the General Fund for the tax credit claimed pursuant to
this chapter under Section 17053.30 or 23630 of the Revenue and
Taxation Code or fund the grant in lieu of those tax credits by
transferring bond funds identified under subdivision (c) of Section
37032 to the Natural Heritage Preservation Tax Credit Reimbursement
Account, on the basis of information provided to the department under
Section 37040 regarding credit claimed for a qualified contribution
under Section 17053.30 or 23630 of the Revenue and Taxation Code in
that tax year or information provided to the department on the
application pursuant to subdivision (f) of Section 37011 regarding
the irrevocable election of the donor to receive a grant in lieu of
the tax credit.
(2) If a local government applies directly to the board for
acceptance of a qualified donation, the board may provide conditional
approval for the local government to acquire the property pursuant
to this division. Through the process outlined in this section, the
local government shall reimburse the General Fund for the tax credit
claimed pursuant to this chapter under Section 17053.30 or 23630 of
the Revenue and Taxation Code or to make the grant in lieu of those
tax credits by transferring funds in the full amount of the approved
tax credit or grant to the board for deposit into the Natural
Heritage Preservation Tax Credit Reimbursement Account.
(3) (A) Upon approval by the board, and prior to the time the
department, local government, or designated nonprofit organization
receives the property, the department shall encumber bond funds
identified under subdivision (c) of Section 37032 in an amount
necessary to pay for the tax credit as provided in Section 17053.30
or 23630, as applicable, of the Revenue and Taxation Code or to make
the grant in lieu of the tax credit.
(B) If a local government applies directly to the board for
acceptance of a qualified donation, and the board provides
conditional approval of the qualified donation, the local government
shall have 60 days to transfer to the board the full amount of funds
necessary to reimburse the General Fund or to make the grant in lieu
of the tax credit. Upon receipt of the funds necessary to reimburse
the General Fund or to make the grant in lieu of the tax credit, the
board shall provide the donor and the local government with a notice
of final approval of the tax credit or grant in lieu of the tax
credit. A tax credit or grant in lieu of the tax credit is not
approved until such time as the donor and local government receive a
final notification from the board that sufficient funds have been
received to reimburse the General Fund for the loss of revenue
associated with the tax credit or to make the grant in lieu of the
tax credit.
(C) The acquisition agreement or any other document that clearly
delineates the commitment pursuant to this division shall be the only
documentation required for the department to encumber the bond funds
as required by this paragraph.
(D) Except as prohibited by the relevant bond act, notwithstanding
Section 13340 of the Government Code or any other provision of law,
the encumbrance shall be available without regard to fiscal years to
allow payments to the Natural Heritage Preservation Tax Credit
Reimbursement Account for the tax credit due the donor of the
property under Section 17053.30 or 23630, as applicable, of the
Revenue and Taxation Code or to make any grants in lieu of those tax
credits.
(4) The Franchise Tax Board shall provide the board information
pursuant to subdivision (a) of Section 19560 of the Revenue and
Taxation Code on tax credits claimed. The information shall include
the tax year for which the credit was claimed. The board shall
provide the information required by Section 37040 to the relevant
department. Upon notification that a qualified tax credit has been
claimed, the department, pursuant to paragraph (1), shall transfer
bond funds in the amount of the tax credit for that tax year to the
Natural Heritage Preservation Tax Credit Reimbursement Account within
60 days of receipt of the notification. The department shall notify
the board of this transfer.
(5) The board shall forward the information it receives pursuant
to paragraph (4) to the Controller and the Department of Finance,
which shall use the information for the purpose of attributing the
budgetary impact of the credit and bond fund transfer to the
appropriate tax and fiscal year.
SEC. 8. Section 37035 of the Public Resources
Code is amended to read:
37035. (a) (1) If a department determines that a designated
nonprofit organization, in lieu of the department, should accept
property that the department applies to acquire pursuant to paragraph
(1) of subdivision (a) of Section 37034, and determines that the
acceptance by the designated nonprofit organization would comply with
the purpose of the applicable bond provision specified in
subdivision (c) of Section 37032, the department may, upon that
determination and upon making the determinations and having the
belief required by paragraph (1) of subdivision (a) of Section 37034,
apply to acquire the property for that designated nonprofit
organization pursuant to this division. The department shall not make
that application until the prospective donor agrees to submit an
application pursuant to Section 37010 and paragraph (3) of
subdivision (a) of Section 37034 and the designated nonprofit
organization agrees to accept the property if it is acquired pursuant
to this division.
(2) If a local government determines that a designated nonprofit
organization, in lieu of the local government, should accept property
that the local government applies to acquire pursuant to paragraph
(2) of subdivision (a) of Section 37034, and determines that the
acceptance by the designated nonprofit organization would comply with
the purpose of the applicable bond provision specified in
subdivision (c) of Section 37032, the local government may, upon that
determination and making the determinations and having the belief
required by paragraph (2) of subdivision (a) of Section 37034,
request the department that allocated to it the relevant bond funds
to determine whether it agrees with the local government's
determinations made pursuant to this paragraph. If the department
agrees with the local government, gives its approval for the
designated nonprofit organization's acceptance of the property, and
gives its approval pursuant to paragraph (2) of subdivision (a) of
Section 37034, the local government may apply to acquire the property
for that designated nonprofit organization pursuant to this
division. The local government shall not make that application until
the prospective donor agrees to submit an application pursuant to
Section 37010 and paragraph (3) of subdivision (a) of Section 37034
and the designated nonprofit organization agrees to accept the
property if it is acquired pursuant to this division.
(b) If a department or local government applies for a designated
nonprofit organization to acquire property, pursuant to subdivision
(a), the department and donor, and the local government, if
applicable, shall comply with all requirements of this division that
apply to the department and donor, and to the local government, if
applicable, when the department or local government otherwise applies
to acquire property pursuant to this division.
(c) If a local government applies for a designated nonprofit
organization to acquire and accept donated property, the local
government shall comply with all requirements of this division that
apply to the local government transferring funds to the board
necessary to reimburse the General Fund or to make the grant in lieu
of the tax credits under Sections 17053.30 and 23630 of the Revenue
and Taxation Code.
SEC. 9. Section 37036 of the Public Resources
Code is amended to read:
37036. (a) The Natural Heritage Preservation Tax Credit
Reimbursement Account is established in the General Fund to receive
moneys paid pursuant to this chapter.
(b) Moneys in the Natural Heritage Preservation Tax Credit
Reimbursement Account shall be used only to reimburse the General
Fund or to make the grant in lieu of the tax credits as determined by
the departments pursuant to paragraph (1) of subdivision (b) of
Section 37034.
(c) Subject to subdivision (d), upon receipt of funds in the
Natural Heritage Preservation Tax Credit Reimbursement Account and
notification to the Legislature, the Controller shall transfer,
within 60 days of the notification, the balance of the Natural
Heritage Preservation Tax Credit Reimbursement Account to the General
Fund.
(d) Notwithstanding Section 13340 of the Government Code, there is
hereby continuously appropriated to the Controller, those funds in
the Natural Heritage Preservation Tax Credit Reimbursement Account
that are attributable to amounts to be made as grants in lieu of the
tax credits under Sections 17053.30 and 23630 of the Revenue and
Taxation Code, for transfer by the Controller to the board within the
period described in paragraph (4) of subdivision (b) of Section
37006, to make the payments of the grants in lieu of those tax
credits.
(e) The moneys in the Natural Heritage Preservation Tax Credit
Reimbursement Account may not be loaned to another fund and may not
accrue interest.
SEC. 10. SECTION 1 .
Section 17053.30 of the Revenue and Taxation Code is amended to read:
17053.30. (a) There shall be allowed as a credit against the "net
tax," as defined in Section 17039, an amount equal to 55 percent of
the fair market value of any qualified contribution made on or after
January 1, 2000, and not later than June 30, 2008, and on or after
January 1, 2010, and not later than June 30, 2020, by the taxpayer
during the taxable year to the state, any local government, or any
designated nonprofit organization, pursuant to Division 28
(commencing with Section 37000) of the Public Resources Code.
(b) For purposes of this section, "qualified contribution" means a
contribution of property, as defined in Section 37002 of the Public
Resources Code, that has been approved for acceptance by the Wildlife
Conservation Board pursuant to Division 28 (commencing with Section
37000) of the Public Resources Code.
(c) In the case of any pass-thru entity, the fair market value of
any qualified contribution approved for acceptance under Division 28
(commencing with Section 37000) of the Public Resources Code shall be
passed through to the partners or shareholders of the pass-thru
entity in accordance with their interest in the pass-thru entity as
of the date of the qualified contribution. For purposes of this
subdivision, the term "pass-thru entity" means any partnership, "S"
corporation, or limited liability company treated as a partnership.
(d) If (1) For a
qualified contribution made on or after January 1, 2000, and before
January 1, 2015, if the credit allowed by this section exceeds
the "net tax," the excess may be carried over to reduce the "net tax"
in the following year, and the succeeding 14
seven years if necessary, until the credit is exhausted.
(2) For a qualified contribution made on or after January 1, 2015,
if the credit allowed by this section exceeds the "net tax," the
excess may be carried over to reduce the "net tax" in the following
year, and the succeeding 14 years if necessary, until the credit is
exhausted.
(e) This credit or a grant under Section 37006 of the
Public Resources Code shall be in lieu of any other credit
or deduction which the taxpayer may otherwise claim pursuant to this
part with respect to the property or any interest therein that is
contributed.
(f) (1) No credit shall be allowed under this section if the
taxpayer has elected to receive a grant under subdivision (b) of
Section 37006 of the Public Resources Code for that qualified
contribution.
(2) Any grant received under Section 37006 of the Public Resources
Code shall not be included in the gross income of a taxpayer.
SEC. 11. SEC. 2. Section 23630 of the Revenue
and Taxation Code is amended to read:
23630. (a) There shall be allowed as a credit against the "tax,"
as defined in Section 23036, an amount equal to 55 percent of the
fair market value of any qualified contribution made on or after
January 1, 2000, and not later than June 30, 2008, and on or after
January 1, 2010, and not later than June 30, 2020, by the taxpayer
during the taxable year to the state, any local government, or any
designated nonprofit organization, pursuant to Division 28
(commencing with Section 37000) of the Public Resources Code.
(b) For purposes of this section, "qualified contribution" means a
contribution of property, as defined in Section 37002 of the Public
Resources Code, that has been approved for acceptance by the Wildlife
Conservation Board pursuant to Division 28 (commencing with Section
37000) of the Public Resources Code.
(c) In the case of any pass-thru entity, the fair market value of
any qualified contribution approved for acceptance under Division 28
(commencing with Section 37000) of the Public Resources Code shall be
passed through to the partners or shareholders of the pass-thru
entity in accordance with their interest in the pass-thru entity as
of the date of the qualified contribution. For purposes of this
subdivision, the term "pass-thru entity" means any partnership or "S"
corporation.
(d) If (1) For a
qualified contribution made on or after January 1, 2000, and before
January 1, 2015, if the credit allowed by this section exceeds
the "tax," the excess may be carried over to reduce the "tax" in the
following year, and the succeeding 14 seven
years if necessary, until the credit is exhausted.
(2) For a qualified contribution made on or after January 1, 2015,
if the credit allowed by this section exceeds the "tax," the excess
may be carried over to reduce the "tax" in the following year, and
the succeeding 14 years if necessary, until the credit is exhausted.
(e) This credit or a grant under Section 37006 of the Public
Resources Code shall be in lieu of any other credit or deduction that
the taxpayer may otherwise claim pursuant to this part with respect
to the property or any interest therein that is contributed.
(f) (1) No credit shall be allowed under this section if a
taxpayer has elected to receive a grant under subdivision (b) of
Section 37006 of the Public Resources Code for that qualified
contribution.
(2) Any grant received under Section 37006 of the Public Resources
Code shall not be included in the gross income of a taxpayer.
SEC. 3. This act provides for a tax levy within
the meaning of Article IV of the Constitution and shall go into
immediate effect.