AB 2430, as amended, Beth Gaines. Voluntary contributions: Type 1 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 Type 1 Diabetes Research Fund, which the bill would create. The bill would require moneys transferred to the Type 1 Diabetes Research Fund, upon appropriation by the Legislature, to be allocated to the Franchise Tax Board and the Controller, as provided, and tobegin delete anend deletebegin insert the University of
California for distribution of grants toend insert authorized diabetes researchbegin delete organization,end deletebegin insert organizations,end insert as defined, for the purpose of type 1 diabetes research, as provided.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Article 7.5 (commencing with Section 18781) is
2added to Chapter 3 of Part 10.2 of Division 2 of the Revenue and
3Taxation Code, to read:
4
(a) Any individual may designate on the tax return that
8a contribution in excess of the tax liability, if any, be made to the
9Type 1 Diabetes Research Fund established by Section 18782.
10(b) The contribution shall be in full dollar amounts and may be
11made individually by each signatory on the joint return.
12(c) A designation under subdivision (a) shall be made for any
13taxable year on the original return for that taxable year, and once
14made shall be irrevocable. If payments and credits reported on the
15return, together with any other credits associated with the
16individual’s
account, do not exceed the individual’s tax liability,
17the return shall be treated as though no designation has been made.
18(d) (1) The Franchise Tax Board shall revise the form of the
19return to include a spacebegin delete labeled“Typeend deletebegin insert labeled “Typeend insert 1 Diabetes
20Research Fund” to allow for the designation permitted under
21subdivision (a). The form shall also include in the instructions
22information that the contribution may be in the amount of one
23dollar ($1) or more and that the contribution shall be used to
24conduct the activities of an authorized diabetes research
25organization.
26(2) Notwithstanding any other law, a voluntary contribution
27designation for the Type 1 Diabetes Research Fund shall not be
28added on the tax return until another voluntary contribution
29designation is removed or space is available, whichever occurs
30first.
31(e) A deduction shall be allowed under Article 6 (commencing
32with Section 17201) of Chapter 3 of Part 10 for any contribution
33made pursuant to subdivision (a).
For purposes of this article:
35(a) An “authorized diabetes research organization” means either:
P3 1(1) A university, located within the state, with a research
2program.
3(2) A nonprofit charitable organization exempt from federal
4income tax as an organization described in Section 501(c)(3) of
5the Internal Revenue Code that engages in research.
6(b) “Research” shall include, but not be limited to, expenditures
7to develop and advance the understanding, techniques, and
8modalities effective in the cure,
screening, and treatment of type
91 diabetes.
There is hereby established in the State Treasury the
11Type 1 Diabetes Research Fund to receive contributions made
12pursuant to Section 18781. The Franchise Tax Board shall notify
13the Controller of both the amount of money paid by taxpayers in
14excess of their tax liability and the amount of refund money that
15taxpayers have designated pursuant to Section 18781 to be
16transferred to the Type 1 Diabetes Research Fund. The Controller
17shall transfer from the Personal Income Tax Fund to the Type 1
18Diabetes Research Fund an amount not in excess of the sum of the
19amounts designated by individuals pursuant to Section 18781 for
20payment into that fund.
All moneys transferred to the Type 1 Diabetes Research
22Fund pursuant to Section 18782, upon appropriation by the
23Legislature, shall be allocated as follows:
24(a) To the Franchise Tax Board and the Controller for
25reimbursement of all costs incurred by the Franchise Tax Board
26and the Controller in connection with their duties under this article.
27(b) The balance
to an authorized diabetes research organization
28for the purpose of type 1 diabetes research. The authorized diabetes
29research organization may use up to 5 percent of the moneys
30allocated to it for administering and promoting the research.
31
(b) (1) To the University of California for distribution of grants
32to authorized diabetes research organizations for the purposes of
33conducting research on type 1 diabetes. The University of
34California may use up to 5 percent of the moneys allocated to it
35for administrative costs.
36
(2) An authorized diabetes research organization that receives
37a grant pursuant to this section may use up to 5 percent of the
38grant moneys for administrative costs.
(a) Except as otherwise provided in paragraph (2) of
40subdivision (b), this article shall remain in effect only until January
P4 11 of the fifth taxable year following the first appearance of the
2Type 1 Diabetes Research Fund on the personal income tax return,
3and is repealed as of December 1 of that year.
4(b) (1) By September 1 of the second calendar year and each
5subsequent calendar year that the Type 1 Diabetes Research Fund
6appears on the tax return, the Franchise Tax Board shall do both
7of the following:
8(A) Determine the minimum contribution amount required
to
9be received during the next calendar year for the fund to appear
10on the tax return for the taxable year that includes that next calendar
11year.
12(B) Determine whether the amount of contributions estimated
13to be received during the calendar year will equal or exceed the
14minimum contribution amount determined by the Franchise Tax
15Board for the calendar year pursuant to subparagraph (A). The
16Franchise Tax Board shall estimate the amount of contributions
17to be received by using the actual amounts received and an estimate
18of the contributions that will be received by the end of that calendar
19year.
20(2) If the Franchise Tax Board determines that the amount of
21the contributions estimated to be received during a calendar year
22will not at
least equal the minimum contribution amount for the
23calendar year, this article shall be inoperative with respect to
24taxable years beginning on or after January 1 of that calendar year
25and shall be repealed on December 1 of that year.
26(3) For purposes of this section, the minimum contribution
27amount for a calendar year means two hundred fifty thousand
28dollars ($250,000) for the second calendar year after the first
29appearance of the Type 1 Diabetes Research Fund on the personal
30income tax return or the minimum contribution amount as adjusted
31pursuant to subdivision (c).
32(c) For each calendar year, beginning with the third calendar
33year after the first appearance of the Type 1 Diabetes Research
34Fund on the personal income tax return, the
Franchise Tax Board
35shall adjust, on or before September 1 of that calendar year, the
36minimum contribution amount specified in subdivision (b) as
37follows:
38(1) The minimum contribution amount for the calendar year
39shall be an amount equal to the product of the minimum
40contribution amount for the prior calendar year multiplied by the
P5 1inflation factor adjustment as specified in subparagraph (A) of
2paragraph (2) of subdivision (h) of Section 17041, rounded off to
3the nearest dollar.
4(2) The inflation factor adjustment used for the calendar year
5shall be based on the figures for the percentage change in the
6California Consumer Price Index for all items received on or before
7August 1 of the calendar year pursuant to paragraph (1)
of
8subdivision (h) of Section 17041.
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