BILL ANALYSIS Ó
AB 2430
Page 1
ASSEMBLY THIRD READING
AB
2430 (Beth Gaines)
As Amended April 27, 2016
Majority vote
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|Committee |Votes|Ayes |Noes |
| | | | |
| | | | |
| | | | |
|----------------+-----+----------------------+--------------------|
|Revenue & |9-0 |Ridley-Thomas, | |
|Taxation | |Brough, Dababneh, | |
| | |Gipson, Mullin, | |
| | |O'Donnell, Patterson, | |
| | |Quirk, Wagner | |
| | | | |
|----------------+-----+----------------------+--------------------|
|Appropriations |20-0 |Gonzalez, Bigelow, | |
| | |Bloom, Bonilla, | |
| | |Bonta, Calderon, | |
| | |Chang, McCarty, | |
| | |Eggman, Gallagher, | |
| | |Eduardo Garcia, Chau, | |
| | |Holden, Jones, | |
| | |Obernolte, Quirk, | |
| | |Santiago, Wagner, | |
| | |Weber, Wood | |
| | | | |
| | | | |
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AB 2430
Page 2
SUMMARY: Authorizes the addition of the Type 1 Diabetes
Research Fund (Fund) checkoff to the personal income tax (PIT)
return upon the removal of another voluntary contribution fund
(VCF) from the return, or as soon as space is available.
Specifically, this bill:
1)Establishes the Fund in the State Treasury.
2)Requires that all money transferred to the Fund, upon
appropriation by the Legislature, will be allocated as
follows:
a) To the Franchise Tax Board (FTB) and the State
Controller for reimbursement of all costs incurred in
administering the Fund; and,
b) To the University of California (UC) for distribution of
grants to authorized diabetes research organizations. Both
the UC and the authorized research organizations may also
use up to 5% of the grant moneys for administrative cost.
3)Defines an "authorized diabetes research organization" as a
California-based university, with a research program or a
nonprofit charitable organization that engages in research.
4)Defines "research" to include expenditures to develop and
advance the understanding, techniques, and modalities
effective in the cure, screening, and treatment of type 1
diabetes.
AB 2430
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5)Requires the Fund to meet a standard minimum contribution
requirement of $250,000 in its second year. Thereafter, the
minimum contribution amount will be indexed for inflation.
6)Provides for the Fund provisions' automatic sunset on either:
a) January 1 of the fifth taxable year following the Fund's
first appearance on the PIT return; or,
b) January 1 of the calendar year in which the Fund does
not meet minimum contribution amount of $250,000, as
determined by the FTB.
EXISTING LAW:
1)Allows taxpayers to contribute to one or more of 19 VCFs on
the 2015 PIT return.
2)Requires each VCF to meet an annual minimum contribution
amount to remain in effect, except for the California
Firefighters' Memorial Fund, the California Peace Officer
Memorial Foundation Fund, and the California Seniors Special
Fund.
FISCAL EFFECT: According to the Assembly Appropriation
Committee:
1)Minor ongoing General Fund (GF) revenue losses of up to
$15,000 per year resulting from itemized taxpayer deductions.
2)Minor and absorbable administrative costs for the FTB or UC,
the administering agency responsible for the Fund.
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COMMENTS:
1)The Author's Statement. The author has provided the following
statement in support of this bill:
"Diabetes has reached epidemic levels in California. As of
2012, about 1 in 7 adult Californians have diabetes and as
many as 1 in 3 will be diagnosed in the near future. The
total cost for treatment of diabetes in California exceeds
$24.5 billion dollars. This dollar amount includes
hospitalization, outpatient treatment, disability payments,
loss of individual productivity, and more. As the number of
those affected increases, so too will the cost.
"A January 2015 audit, requested by our office, of the
Department of Public Health indicated that 'At a funding level
of 3 cents per capita, California has the lowest per capita
funding for diabetes prevention in the nation.' As California
and its Legislature debates on how to address this shortfall
in diabetes funding, diabetics are seeing their costs
skyrocket on a daily basis.
"Recently, a lot of attention has been given to the study
coming out of [UC Los Angeles] UCLA in March of 2016 on
prediabetes, which generally could result in a diagnosis of
Type 2 diabetes. However, little to no attention is given to
Type 1 diabetes, which used to be referred to as 'juvenile
diabetes' given its high incidence in children.
"In California, there is an estimated 190,000 people diagnosed
as type 1 diabetic. While it certainly seems to be a small
percentage compared to the 8 million+ of the diabetic
population, the costs associated with Type 1 diabetes are
immensely disproportionate. Because Type 1 diabetes is an
AB 2430
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autoimmune disease in which a person's pancreas stops
producing insulin, Type 1 diabetics have to have to carefully
balance insulin doses (either by injections multiple times a
day or continuous infusion through a pump) with eating and
other activities throughout the day and night on a daily
basis. They must also measure their blood-glucose level by
pricking their fingers for blood six or more times a day.
These tools (the pump, the sharps, the blood glucose meters,
the testing strips, etc.) are not cheap and as technology
evolves, they get more expensive.
"AB 2430 seeks to create a voluntary tax contribution
designation on a state income tax deduction form so that
taxpayers can directly donate to the Juvenile Diabetes
Research Foundation (JDRF), who is the leading global
organization funding Type 1 diabetes research. JDRF is the
only global organization with a strategic plan to bring those
living with Type 1 diabetes a continuous flow of life-changing
therapies and, ultimately, a cure for the disease."
2)So many causes, so little space: There are countless worthy
causes that would benefit from the inclusion of a VCF on the
state's income tax returns. At the same time, space on the
returns is limited. Thus, it could be argued that the current
system for adding VCFs to the form is subjective and
essentially rewards organizations that can convince the
Legislature to include their fund on the form.
Analysis Prepared by:
Oksana Jaffe / REV. & TAX. / (916) 319-2098 FN:
0003026
AB 2430
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