BILL NUMBER: AB 1799	CHAPTERED
	BILL TEXT

	CHAPTER  370
	FILED WITH SECRETARY OF STATE  AUGUST 30, 2004
	APPROVED BY GOVERNOR  AUGUST 27, 2004
	PASSED THE ASSEMBLY  AUGUST 16, 2004
	PASSED THE SENATE  AUGUST 9, 2004
	AMENDED IN SENATE  JUNE 21, 2004
	AMENDED IN ASSEMBLY  APRIL 12, 2004

INTRODUCED BY   Assembly Members Mullin and Bates
   (Coauthors:  Assembly Members Berg, Bermudez, Daucher, Frommer,
Goldberg, Hancock, Koretz, Laird, La Malfa, Lieber, Liu, Maze,
Nakanishi, Pavley, Runner, Salinas, Steinberg, Strickland, and
Vargas)
   (Coauthors:  Senators Kuehl and Margett)

                        JANUARY 8, 2004

   An act to amend Sections 18761 and 18766 of the Revenue and
Taxation Code, relating to taxation.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1799, Mullin.  Personal income taxes:  contributions:
Alzheimer's disease.
   The Personal Income Tax Law allows taxpayers, until January 1,
2005, to contribute amounts in excess of their tax liability for the
support of the California Alzheimer's Disease and Related Disorders
Research Fund.  Existing law also provides that these contribution
provisions are repealed if in any calendar year, beginning in 2000,
the Franchise Tax Board estimates that the total amount so
contributed will be less than the prescribed amount, as may be
annually adjusted.
   This bill would extend the operation of those contribution
provisions to January 1, 2010.


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


  SECTION 1.  Section 18761 of the Revenue and Taxation Code is
amended to read:
   18761.  The Legislature finds and declares all of the following:
   (a) Alzheimer's disease and related dementia disorders are
devastating health conditions that cause a loss of intellectual
functioning so severe that they interfere with an individual's daily
functioning and eventually result in death.  These conditions affect
10 percent of Californians over the age of 65 years and 50 percent of
Californians who are 85 years of age or older.  They cause serious
financial, social, and emotional hardships on those affected and on
their family caregivers.
   (b) The total annual cost of caring for individuals with Alzheimer'
s disease and other dementia disorders in California is over $10
billion.  These conditions cost California businesses $3.3 billion
annually, most of which is due to the lost productivity of family
caregivers.  Approximately 50 percent of all nursing home admissions
in California are attributable to Alzheimer's disease and related
dementia disorders.
   (c) While scientists have made great strides in understanding
Alzheimer's disease and other causes of dementia, there is no known
prevention or cure at this time.
   (d) It is the intent of the Legislature, in enacting this article,
to establish a systematic program for the conduct of research
regarding the cause, prevention, diagnosis, cure, and treatment of
Alzheimer's disease and related disorders.  The outcome of this
research may have direct effects and consequences on the development
of a comprehensive system that will provide diagnoses and treatment
to victims of those health problems.  This program shall award grants
to eligible physicians, hospitals, laboratories, educational
institutions, and other organizations and persons for the purpose of
enabling those organizations and persons to conduct research.
  SEC. 2.  Section 18766 of the Revenue and Taxation Code is amended
to read:
   18766.  (a) This article shall remain in effect only until January
1, 2010, and as of that date is repealed, unless a later enacted
statute, which is enacted before January 1, 2010, 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.