Amended in Assembly March 18, 2016

California Legislature—2015–16 Regular Session

Assembly Bill No. 2430

Introduced by Assembly Member Beth Gaines

February 19, 2016

An act to begin delete amend Section 17003 end delete begin insert add and repeal Article 7.5 (commencing with Section 18781) of Chapter 3 of Part 10.2 of Division 2 end insert of the Revenue and Taxation Code, relating to taxation.

LEGISLATIVE COUNSEL’S DIGEST

AB 2430, as amended, Beth Gaines. begin delete Personal income taxes. end delete begin insert Voluntary contributions: Juvenile Diabetes Research Fund. end insert

begin insert

Under existing law, taxpayers are allowed to contribute amounts in excess of their personal income tax liability for the support of various funds. Existing law also contains administrative provisions that are generally applicable to voluntary contributions.

end insert begin insert

This bill would allow a taxpayer to designate an amount in excess of personal income tax liability to be deposited to the Juvenile Diabetes Research Fund, which the bill would create. The bill would require moneys transferred to the Juvenile Diabetes Research Fund, upon appropriation by the Legislature, to be allocated to the Franchise Tax Board and the Controller, as provided, and to the Juvenile Diabetes Research Fund for the purpose of fighting type 1 diabetes, as provided.

end insert begin delete

The Personal Income Tax Law imposes taxes on income and provides a definition of the Franchise Tax Board for purposes of that law.

end delete begin delete

This bill would make a nonsubstantive change to that definition.

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Vote: majority. Appropriation: no. Fiscal committee:  begin delete no end delete begin insert yes end insert . State-mandated local program: no.

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

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Article 7.5 (commencing with Section 18781) is
added to Chapter 3 of Part 10.2 of Division 2 of the end insert begin insert Revenue and
Taxation Code end insert begin insert , to read: end insert

begin insert

 

Article begin insert 7.5. end insert   Juvenile Diabetes Research Fund

 

begin insert 18781. end insert   

(a) Any individual may designate on the tax return that
a contribution in excess of the tax liability, if any, be made to the
Juvenile Diabetes Research Fund established by Section 18782 to
be used by the Juvenile Diabetes Research Fund.

(b) The contribution shall be in full dollar amounts and may be
made individually by each signatory on the joint return.

(c) A designation under subdivision (a) shall be made for any
taxable year on the initial return for that taxable year, and once
made shall be irrevocable. If payments and credits reported on
the return, together with any other credits associated with the
individual’s account, do not exceed the individual’s tax liability,
the return shall be treated as though no designation has been
made.

(d) (1) The Franchise Tax Board shall revise the form of the
return to include a space labeled “Juvenile Diabetes Research
Fund” to allow for the designation permitted under subdivision
(a). The form shall also include in the instructions information
that the contribution may be in the amount of one dollar ($1) or
more and that the contribution shall be used to conduct the
activities of the Juvenile Diabetes Research Fund.

(2) Notwithstanding any other law, a voluntary contribution
designation for the Juvenile Diabetes Research Fund shall not be
added on the tax return until another voluntary contribution
designation is removed or space is available, whichever occurs
first.

(e) A deduction shall be allowed under Article 6 (commencing
with Section 17201) of Chapter 3 of Part 10 for any contribution
made pursuant to subdivision (a).

begin insert 18782. end insert   

There is hereby established in the State Treasury the
Juvenile Diabetes Research Fund to receive contributions made
pursuant to Section 18781. The Franchise Tax Board shall notify
the Controller of both the amount of money paid by taxpayers in
excess of their tax liability and the amount of refund money that
taxpayers have designated pursuant to Section 18781 to be
transferred to the Juvenile Diabetes Research Fund. The Controller
shall transfer from the Personal Income Tax Fund to the Juvenile
Diabetes Research Fund an amount not in excess of the sum of the
amounts designated by individuals pursuant to Section 18781 for
payment into that fund.

begin insert 18783. end insert   

All moneys transferred to the Juvenile Diabetes
Research Fund pursuant to Section 18782, upon appropriation by
the Legislature, shall be allocated as follows:

(a) To the Franchise Tax Board and the Controller for
reimbursement of all costs incurred by the Franchise Tax Board
and the Controller in connection with their duties under this article.

(b) The balance for the purpose of fighting type 1 diabetes.

begin insert 18784. end insert   

(a) Except as otherwise provided in paragraph (2) of
subdivision (b), this article shall remain in effect only until January
1 of the fifth taxable year following the first appearance of the
Juvenile Diabetes Research Fund on the personal income tax
return, and is repealed as of December 1 of that year.

(b) (1)   By September 1 of the second calendar year and each
subsequent calendar year that the Juvenile Diabetes Research
Fund appears on the tax return, the Franchise Tax Board shall do
both 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) 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 shall be inoperative with respect to
taxable years beginning on or after January 1 of that calendar
year and shall be repealed on December 1 of that 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 Juvenile Diabetes Research Fund on the
personal income tax return or the minimum contribution amount
as adjusted pursuant to subdivision (c).

(c) For each calendar year, beginning with the third calendar
year after the first appearance of the Juvenile Diabetes 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 for all items 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.

end insert

begin delete

SECTION 1.  

Section 17003 of the Revenue and Taxation Code
is amended to read:

17003.  

“Franchise Tax Board” means the Franchise Tax Board
described in Part 10 (commencing with Section 15700) of Division
3 of Title 2 of the Government Code. “Board” means the State
Board of Equalization.

end delete