BILL NUMBER: AB 160	CHAPTERED  09/03/99

	CHAPTER   315
	FILED WITH SECRETARY OF STATE   SEPTEMBER 3, 1999
	APPROVED BY GOVERNOR   SEPTEMBER 2, 1999
	PASSED THE SENATE   AUGUST 24, 1999
	PASSED THE ASSEMBLY   MAY 20, 1999

INTRODUCED BY   Assembly Member Alquist

                        JANUARY 15, 1999

   An act to amend Section 18766 of the Revenue and Taxation Code,
relating to taxation.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 160, Alquist.  Personal income taxes:  contributions:
Alzheimer's disease.
   The Personal Income Tax Law allows taxpayers, until January 1,
2000, to contribute amounts in excess of their tax liability for the
support of the California Alzheimer's Disease and Related Research
Fund.  Existing law provides that if these provisions are continued
indefinitely they, nevertheless, would be repealed in any calendar
year in which the Franchise Tax Board estimates that the minimum
contribution amount will be less than a prescribed amount as annually
adjusted.
   This bill would extend the operation of those contribution
provisions to January 1, 2005.  This bill would also, for taxable
years beginning in 2000, repeal those contribution provisions in any
calendar year in which the Franchise Tax Board estimates that the
minimum contribution amount will be less than the prescribed amount
as annually adjusted.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 18766 of the Revenue and Taxation Code is
amended to read:
   18766.  (a) This article shall remain in effect only until January
1, 2005, and as of that date is repealed, unless a later enacted
statute, which is enacted before January 1, 2005, deletes that date.

   (b) If, in any calendar year, the Franchise Tax Board estimates by
September 1 that contributions described in this article made on
returns filed in that calendar year will be less than two hundred
fifty thousand dollars ($250,000) for taxable years beginning in
2000, or the adjusted amount specified in subdivision (c) for
subsequent taxable years, as may be applicable, then this article is
repealed with respect to taxable years beginning on and after January
1 of that calendar year.  The Franchise Tax Board shall estimate the
annual contribution amount by September 1 of each year using the
actual amounts known to be contributed and an estimate of the
remaining year's contributions.
   (c) For each calendar year, beginning with calendar year 1992, the
Franchise Tax Board shall adjust, on or before September 1 of that
calendar year, the minimum estimated 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 prior September 1 multiplied by the
inflation factor adjustment as specified in 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 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.