BILL NUMBER: AB 515 AMENDED
BILL TEXT
AMENDED IN SENATE JULY 8, 2015
AMENDED IN ASSEMBLY MAY 4, 2015
AMENDED IN ASSEMBLY APRIL 20, 2015
AMENDED IN ASSEMBLY APRIL 7, 2015
AMENDED IN ASSEMBLY MARCH 26, 2015
INTRODUCED BY Assembly Member Eggman
( Principal coauthors:
Assembly Members Cooper and Salas )
(Coauthors: Assembly Members Brough, Chávez, Dodd, Eduardo
Garcia, and Olsen)
( Coauthor: Senator
Galgiani Coauthors: Senators
Galgiani, Hertzberg, and Lara )
FEBRUARY 23, 2015
An act to amend Sections 17053.88 and 23688 of the Revenue and
Taxation Code, and to amend Section 18995 of, and to amend the
heading of Chapter 14.5 (commencing with Section 18995) of Part 6 of
Division 9 of, the Welfare and Institutions Code, relating to food
banks.
LEGISLATIVE COUNSEL'S DIGEST
AB 515, as amended, Eggman. Income taxes: credits: food bank
donations.
(1) The Personal Income Tax Law and the Corporation Tax Law allow
various credits against the taxes imposed by those laws, including,
for taxable years beginning on or after January 1, 2012, and before
January 1, 2017, a credit for qualified taxpayers, defined as the
person responsible for planting a crop, managing the crop, and
harvesting the crop from the land, in an amount equal to 10% of the
cost that would otherwise be included in, or required to be included
in, inventory costs, as specified under federal law, with respect to
the donation of fresh fruits or fresh vegetables to food banks
located in California.
This bill, under both laws, would expand the credit to apply to
the donation of qualified donation items, defined as raw agricultural
products or processed foods. The bill would expand the definition of
qualified taxpayer to also include the person responsible for
growing or raising a qualified donation item, or harvesting, packing,
or processing a qualified donation item. The bill would modify the
credit amount to instead equal 15% of the qualified value, as
defined, of the qualified donation items. The bill would extend the
operation of the credit to taxable years before January 1,
2021. 2021, and would require it to be claimed on a
timely filed original return . The bill
would make various conforming changes and would also make a
nonsubstantive change to the personal income tax provision.
(2) Existing law requires the State Department of Social Services
to establish and administer the State Emergency Food Assistance
Program (SEFAP), to provide food and funding for the provision of
emergency food to food banks, as provided. Existing law creates the
State Emergency Food Assistance Program Account and, upon
appropriation by the Legislature, would allocate the moneys in the
account to SEFAP and require that those moneys be used for the
purchase, storage, and transportation of food grown or produced in
California and for the department's administrative costs.
This bill would rename the State Emergency Food Assistance Program
(SEFAP) as the CalFood Program and would rename the State Emergency
Food Assistance Program Account as the CalFood Account. The bill
would make other conforming changes in this regard.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 17053.88 of the Revenue and Taxation Code is
amended to read:
17053.88. (a) In the case of a qualified taxpayer that donates to
a food bank any qualified donation items that are accepted by that
food bank located in California under Chapter 5 (commencing with
Section 58501) of Part 1 of Division 21 of the Food and Agricultural
Code, for taxable years beginning on or after January 1, 2012, and
before January 1, 2021, there shall be allowed, without regard to the
taxpayer's method of accounting, as a credit against the "net tax"
(as defined by Section 17039), an amount equal to 15 percent of the
qualified value of the qualified donation items, but in no event
shall this amount be less than the amount that would otherwise be
available under this section as added by Chapter 503 of the Statutes
of 2011.
(b) For purposes of this section, the following definitions shall
apply:
(1) "Qualified donation item" means fresh fruits or fresh
vegetables and the following raw agricultural products or processed
foods:
(A) All of the following:
(i) "Fruits, nuts, or vegetables" as defined in Section 42510 of
the Food and Agricultural Code.
(ii) "Meat food product" as defined in Section 18665 of the Food
and Agricultural Code.
(iii) "Poultry" as defined in Section 18675 of the Food and
Agricultural Code.
(iv) "Eggs" as defined in Section 75027 of the Food and
Agricultural Code.
(v) "Fish" as defined in Section 58609 of the Food and
Agricultural Code.
(B) All of the following food as defined in Section 109935 of the
Health and Safety Code:
(i) Rice.
(ii) Beans.
(iii) Fruit, nuts, and vegetables in canned, frozen, dried,
dehydrated, and 100 percent juice forms.
(iv) Any cheese, milk, yogurt, butter, and dehydrated milk meeting
the requirements in Division 15 (commencing with Section 32501) of
the Food and Agricultural Code.
(v) Infant formula subject to Section 114094.5 of the Health and
Safety Code.
(vi) Vegetable oil and olive oil.
(vii) Soup, pasta sauce, and salsa.
(viii) Bread and pasta.
(ix) Canned meats and canned seafood.
(2) "Qualified taxpayer" means the person responsible for planting
a crop, managing the crop, harvesting the crop from land, growing or
raising a qualified donation item, or harvesting, packing, or
processing a qualified donation item.
(3) "Qualified value" means either of the following:
(A) The qualified value shall be calculated by using the weighted
average wholesale sale price based on the qualified taxpayer's total
wholesale sales of the donated item sold within the calendar month of
the qualified taxpayer's donation.
(B) If no wholesale sales of the donated item have occurred in the
calendar month of the qualified taxpayer's donation, the qualified
value shall be equal to the nearest regional wholesale market price
for the calendar month of the donation based upon the same grade
products as published by the United States Department of Agriculture'
s Agricultural Marketing Service, or its successor.
(c) If the credit allowed by this section is claimed by the
qualified taxpayer, any deduction otherwise allowed under this part
for that amount of the cost paid or incurred by the qualified
taxpayer that is eligible for the credit shall be reduced by the
amount of the credit provided in subdivision (a).
(d) The donor shall provide to the food bank the qualified value
of the donation items and information regarding the origin of where
the donation items were grown, processed, or both grown and
processed. Upon receipt and acceptance of the donation items, the
food bank shall provide a certificate to the donor. The certificate
shall contain a statement signed and dated by a person authorized by
the food bank that the donation items are accepted under Chapter 5
(commencing with Section 58501) of Part 1 of Division 21 of the Food
and Agricultural Code. The certificate shall also contain the type,
grade, and quantity of items donated, the name of the donor or
donors, the name and address of the food bank, and, as provided by
the donor, the origin of the donated items, and the qualified value
of the donated items, as described in subdivision (a). Upon the
request of the Franchise Tax Board, the qualified taxpayer shall
provide a copy of the certification to the Franchise Tax Board.
(e) The credit allowed by this section may be claimed only on a
timely filed original return.
(e)
(f) In the case where 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 for the six
succeeding years if necessary, until the credit has been exhausted.
(f)
(g) Using the information available to the Franchise
Tax Board from the certificates required under subdivision (d) and
subdivision (d) of Section 23688, the Franchise Tax Board shall
report to the Legislature on or before December 1, 2014, and each
December 1 thereafter until the inoperative date specified in
paragraph (2) of subdivision (g), (h),
regarding the utilization of the credit authorized by this section
and Section 23688. The Franchise Tax Board shall also include in the
report the estimated value of the qualified donation items, the
origin of the qualified donation items, and the month the donation
was made.
(g)
(h) (1) A report required to be submitted pursuant to
subdivision (f) (g) shall be submitted
in compliance with Section 9795 of the Government Code.
(2) The requirement for submitting a report imposed under
subdivision (f) (g) is inoperative on
January 1, 2020, pursuant to Section 10231.5 of the Government Code.
(h)
(i) This section shall be repealed on December 1, 2021.
SEC. 2. Section 23688 of the Revenue and Taxation Code is amended
to read:
23688. (a) In the case of a qualified taxpayer that donates to a
food bank any qualified donation items that are accepted by that food
bank located in California under Chapter 5 (commencing with Section
58501) of Part 1 of Division 21 of the Food and Agricultural Code,
for taxable years beginning on or after January 1, 2012, and before
January 1, 2021, there shall be allowed, without regard to the
taxpayer's method of accounting, as a credit against the "tax" (as
defined by Section 23036), an amount equal to 15 percent of the
qualified value of the qualified donation items, but in no event
shall this amount be less than the amount that would otherwise be
available under this section as added by Chapter 503 of the Statutes
of 2011.
(b) For purposes of this section, the following definitions shall
apply:
(1) "Qualified donation item" means fresh fruits or fresh
vegetables and the following raw agricultural products or processed
foods:
(A) All of the following:
(i) "Fruits, nuts, or vegetables" as defined in Section 42510 of
the Food and Agricultural Code.
(ii) "Meat food product" as defined in Section 18665 of the Food
and Agricultural Code.
(iii) "Poultry" as defined in Section 18675 of the Food and
Agricultural Code.
(iv) "Eggs" as defined in Section 75027 of the Food and
Agricultural Code.
(v) "Fish" as defined in Section 58609 of the Food and
Agricultural Code.
(B) All of the following food as defined in Section 109935 of the
Health and Safety Code:
(i) Rice.
(ii) Beans.
(iii) Fruit, nuts, and vegetables in canned, frozen, dried,
dehydrated, and 100 percent juice forms.
(iv) Any cheese, milk, yogurt, butter, and dehydrated milk meeting
the requirements in Division 15 (commencing with Section 32501) of
the Food and Agricultural Code.
(v) Infant formula subject to Section 114094.5 of the Health and
Safety Code.
(vi) Vegetable oil and olive oil.
(vii) Soup, pasta sauce, and salsa.
(viii) Bread and pasta.
(ix) Canned meats and canned seafood.
(2) "Qualified taxpayer" means the person responsible for planting
a crop, managing the crop, harvesting the crop from land, growing or
raising a qualified donation item, or harvesting, packing, or
processing a qualified donation item.
(3) "Qualified value" means either of the following:
(A) The qualified value shall be calculated by using the weighted
average wholesale sale price based on the qualified taxpayer's total
wholesale sales of the donated item sold within the calendar month of
the qualified taxpayer's donation.
(B) If no wholesale sales of the donated item have occurred in the
calendar month of the qualified taxpayer's donation, the qualified
value shall be equal to the nearest regional wholesale market price
for the calendar month of the donation based upon the same grade
products as published by the United States Department of Agriculture'
s Agricultural Marketing Service, or its successor.
(c) If the credit allowed by this section is claimed by the
qualified taxpayer, any deduction otherwise allowed under this part
for that amount of the cost paid or incurred by the qualified
taxpayer that is eligible for the credit shall be reduced by the
amount of the credit provided in subdivision (a).
(d) The donor shall provide to the food bank the qualified value
of the donation items and information regarding the origin of where
the donation items were grown, processed, or both grown and
processed. Upon receipt and acceptance of the donation items, the
food bank shall provide a certificate to the donor. The certificate
shall contain a statement signed and dated by a person authorized by
the food bank that the donation items are accepted under Chapter 5
(commencing with Section 58501) of Part 1 of Division 21 of the Food
and Agricultural Code. The certificate shall also contain the type,
grade, and quantity of items donated, the name of the donor or
donors, the name and address of the food bank, and, as provided by
the donor, the origin of the donated items, and the qualified value
of the donated items, as described in subdivision (a). Upon the
request of the Franchise Tax Board, the qualified taxpayer shall
provide a copy of the certification to the Franchise Tax Board.
(e) The credit allowed by this section may be claimed only on a
timely filed original return.
(e)
(f) In the case where the credit allowed by this
section exceeds the "tax," the excess may be carried over to reduce
the "tax" in the following year, and for the six succeeding years if
necessary, until the credit has been exhausted.
(f)
(g) This section shall be repealed on December 1, 2021.
SEC. 3. The heading of Chapter 14.5 (commencing with Section
18995) of Part 6 of Division 9 of the Welfare and Institutions Code
is amended to read:
CHAPTER 14.5. THE CALFOOD PROGRAM
SEC. 4. Section 18995 of the Welfare and Institutions Code is
amended to read:
18995. (a) On and after January 1, 2016, the State Emergency Food
Assistance Program (SEFAP), administered by the State Department of
Social Services, shall be renamed as the "CalFood Program." The
CalFood Program shall provide food and funding for the provision of
emergency food to food banks established pursuant to the federal
Emergency Food Assistance Program (7 C.F.R. Parts 250 and 251) whose
ongoing primary function is to facilitate the distribution of food to
low-income households.
(b) The CalFood Account is hereby established in the Emergency
Food Assistance Program Fund established pursuant to Section 18852 of
the Revenue and Taxation Code, and may receive federal funds and
voluntary donations or contributions.
(c) Notwithstanding Section 18853 of the Revenue and Taxation
Code, the following shall apply:
(1) All moneys received by the CalFood Account shall, upon
appropriation by the Legislature, be allocated to the State
Department of Social Services for allocation to the CalFood Program
and, with the exception of those contributions made pursuant to
Section 18851 of the Revenue and Taxation Code and funds received
through Parts 250 and 251 of Title 7 of the Code of Federal
Regulations, shall be used for the purchase, storage, and
transportation of food grown or produced in California. Storage and
transportation expenditures shall not exceed 10 percent of the
CalFood Program fund's annual budget.
(2) Notwithstanding paragraph (1), funds received by the CalFood
Account shall, upon appropriation by the Legislature, be allocated to
the State Department of Social Services for allocation to the
CalFood Program as described in paragraph (1), and shall, in part, be
used to pay for the department's administrative costs associated
with the administration of the CalFood Program.