Amended in Senate March 28, 2016

Senate Bill No. 1416

Introduced by Senator Stone

February 19, 2016

An act begin insert to add Article 4 (commencing with Section 18735) to Chapter 3 of Part 10.2 of Division 2 of the Revenue and Taxation Code, end insert relating to the Salton Sea.

LEGISLATIVE COUNSEL’S DIGEST

SB 1416, as amended, Stone. begin delete Salton Sea restoration. end delete begin insert Personal income taxes: voluntary contribution: the Salton Sea. end insert

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Existing law allows an individual taxpayer to contribute amounts in excess of his or her personal income tax liability for the support of specified funds.

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This bill would allow an individual to designate on his or her tax return that a specified amount in excess of his or her tax liability be transferred to the Revive the Salton Sea Fund, which would be created by this bill. The bill would require the Franchise Tax Board to revise the tax return form to include a space for the designation of contributions to the fund and to include specified information, including the purposes for which the contribution would be used.

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This bill would require money contributed to the fund, upon appropriation by the Legislature, to be allocated to the Franchise Tax Board and the Controller for reimbursement of costs, as provided, and to the nonprofit corporation Revive the Salon Sea to fund or supplement funding of the state, county, and local agencies and projects identified as necessary for the restoration and maintenance of the Salton Sea and to develop a mechanism to provide ongoing public awareness, as specified.

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The Salton Sea Restoration Act requires the Secretary of the Natural Resources Agency, in consultation and coordination with the Salton Sea Authority, to lead Salton Sea restoration efforts. The act authorizes the authority to lead a feasibility study, in coordination and under contract with the secretary, as prescribed. The act requires the secretary to seek input from the authority with regard to specified components of restoration of the Salton Sea.

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This bill would state the intent of the Legislature to enact legislation to clean up the Salton Sea.

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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:

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begin insert SECTION 1. end insert   

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begin insert Article 4 (commencing with Section 18735) 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 4. end insert   Revive the Salton Sea Fund

 

begin insert 18735. end insert   

(a) An individual may designate on the tax return that
a contribution in excess of the tax liability, if any, be made to the
Revive the Salton Sea Fund established by Section 18736. That
designation shall be used as a voluntary contribution on the tax
return.

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

(c) A designation under subdivision (a) shall be made for a
taxable year on the original 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) The Franchise Tax Board shall revise the form of the return
to include a space labeled “Revive the Salton Sea 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 fund all of the following:

(1) Programs to create statewide public awareness and
grassroots support for the restoration of the Salton Sea.

(2) Programs to engage the public through promotion and
education about the Salton Sea.

(3) Current and future projects identified as necessary for
restoration and maintenance of the Salton Sea, including projects
identified by the Salton Sea Authority.

(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 18736. end insert   

There is hereby established in the State Treasury the
Revive the Salton Sea Fund to receive contributions made pursuant
to Section 18735. 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 18735 to be transferred to
the Revive the Salton Sea Fund. The Controller shall transfer from
the Personal Income Tax Fund to the Revive the Salton Sea Fund
an amount not in excess of the sum of the amounts designated by
individuals pursuant to Section 18735 for payment into that fund.

begin insert 18737. end insert   

(a) All money transferred to the Revive the Salton Sea
Fund, upon appropriation by the Legislature, shall be allocated
as follows:

(1) 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.

(2) (A) The remaining moneys shall be distributed to Revive
the Salton Sea, a California corporation that is duly incorporated
in the state, in active status, as described on the business search
page of the Secretary of State’s Internet Web site, and is exempt
from federal income taxation as an organization described in
Section 501(c)(3) of the Internal Revenue Code, to be used to fund
or supplement funding of state, county, and local agencies and
projects identified as necessary for the restoration and maintenance
of the Salton Sea, including projects identified by the Salton Sea
Authority.

(B) Up to 5 percent of the funds allocated to the Revive the
Salton Sea Fund shall be used for the development of a mechanism
to provide ongoing public awareness through activities that will
promote the charitable tax deduction for the fund and seek
continued contributions. These activities may include convening
a philanthropic roundtable, developing literature for use by city,
county, or local agencies and programs, and whatever other
activities are deemed necessary and appropriate to promote the
fund.

(b) No money in the Revive the Salton Sea Fund shall be used
to supplant state General Fund money for any purpose.

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SECTION 1.  

It is the intent of the Legislature to enact
legislation to clean up the Salton Sea.

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