BILL NUMBER: AB 2430 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MARCH 18, 2016
INTRODUCED BY Assembly Member Beth Gaines
FEBRUARY 19, 2016
An act to amend Section 17003 add and
repeal Article 7.5 (commencing with Section 18781) of Chapter 3 of
Part 10.2 of Division 2 of the Revenue and Taxation Code,
relating to taxation.
LEGISLATIVE COUNSEL'S DIGEST
AB 2430, as amended, Beth Gaines. Personal income taxes.
Voluntary contributions: Juvenile Diabetes Research
Fund.
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.
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.
The Personal Income Tax Law imposes taxes on income and provides a
definition of the Franchise Tax Board for purposes of that law.
This bill would make a nonsubstantive change to that definition.
Vote: majority. Appropriation: no. Fiscal committee: no
yes . State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Article 7.5 (commencing with Section
18781) is added to Chapter 3 of Part 10.2 of Division 2 of the
Revenue and Taxation Code , to read:
Article 7.5. Juvenile Diabetes Research Fund
18781. (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).
18782. 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.
18783. 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.
18784. (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.
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.