BILL NUMBER: AB 658 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY JANUARY 4, 2010
INTRODUCED BY Assembly Member Hayashi
FEBRUARY 25, 2009
An act to amend Section 41999 of the Health and Safety
Code, relating to air quality. An act to add and
repeal Article 14.5 (commencing with Section 18856) of Chapter 3 of
Part 10.2 of Division 2 of the Revenue and T axation Code,
relating to taxation.
LEGISLATIVE COUNSEL'S DIGEST
AB 658, as amended, Hayashi. Air quality: dry cleaning:
grants. Taxpayer contributions: California Police
Activities League (CALPAL) Fund.
Provisions relating to the administration of personal income taxes
allow individual taxpayers to contribute amounts in excess of their
tax liability for the support of specified funds.
This bill would allow taxpayers to designate on their tax returns
that a specified amount in excess of their tax liability be
transferred to the California Police Activities League (CALPAL) Fund,
which would be created by this bill. However, the bill would provide
that a voluntary contribution designation for this fund may not be
added on the tax return until another voluntary contribution
designation is removed from that return.
This bill would require that all moneys contributed to the fund
pursuant to these provisions, upon appropriation by the Legislature,
be allocated to the Franchise Tax Board, the Controller, and to the
Treasurer for allocation to the CALPAL, as provided.
This bill would provide that these voluntary contribution
provisions are repealed on January 1 of the 5th taxable year
following the taxable year the fund first appears on the tax return.
The bill would further provide that these provisions are repealed for
taxable years beginning on or after January 1 of the calendar year
in which the Franchise Tax Board estimates by September 1 that the
contributions made on returns filed in that calendar year will be
less than $250,000, or an adjusted amount for subsequent taxable
years.
Existing law requires the State Air Resources Board to develop and
establish a grant program that provides incentives for dry cleaners
in the state that utilize perchloroethylene in their operations to
transition to utilizing dry cleaning systems determined by the state
board, in consultation with the Office of Environmental Health Hazard
Assessment, the State Water Resources Control Board, the Department
of Toxic Substances Control, and any other entity the state board
deems appropriate, to be nontoxic and nonsmog-forming. Existing law
requires the state board to make grants available in the amount of
$10,000 to any eligible dry cleaning operation for the purchase of a
professional dry cleaning system that uses a nontoxic and
nonsmog-forming process, as specified.
This bill would increase the amount of each grant to $20,000.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Article 14.5 (commencing with Section
18856) is added to Chapter 3 of Part 10.2 of Division 2 of the
Revenue and Taxation Code, to read:
Article 14.5. California Police Activities League (CALPAL)
Fund
18856. (a) An individual may designate on the tax return that a
contribution in excess of the tax liability, if any, be made to the
California Police Activities League (CALPAL) Fund established by
Section 18856.1. That designation is to 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 shall be made for any taxable year on the
initial return for that taxable year and, once made, is irrevocable.
If payments and credits reported on the return, together with any
other credits associated with the taxpayer's account, do not exceed
the taxpayer's liability, the return shall be treated as though no
designation has been made. If no designee is specified, the
contribution shall be transferred to the General Fund after
reimbursement of the direct actual costs of the Franchise Tax Board
for the collection and administration of funds under this article.
(d) If an individual designates a contribution to more than one
account or fund listed on the tax return, and the amount available is
insufficient to satisfy the total amount designated, the
contribution shall be allocated among the designees on a pro rata
basis.
(e) Upon another voluntary contribution designation being removed,
the Franchise Tax Board shall revise the form of the return to
include a space labeled the "California Police Activities League
(CALPAL) Fund" to allow for the designation permitted. 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 exclusively to maintain the California
Police Activities League (CALPAL) program.
(f) 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).
18856.1. There is hereby created in the State Treasury the
California Police Activities League (CALPAL) Fund to receive
contributions made pursuant to Section 18856. 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 18856 to be
transferred to the CALPAL Fund. The Controller shall transfer from
the Personal Income Tax Fund to the CALPAL Fund an amount not in
excess of the sum of the amounts designated by individuals pursuant
to Section 18856 for payment into that fund.
18856.2. All moneys transferred to the CALPAL Fund, upon
appropriation by the Legislature, shall be allocated as follows:
(a) 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.
(b) To the Treasurer for allocation to the CALPAL to be used
exclusively to fund programs and services of the CALPAL.
(1) The moneys shall be allocated by the Treasurer each year to
CALPAL chapters established and maintained within the state pursuant
to the formula established by the Franchise Tax Board in accordance
with paragraph (2).
(2) The Franchise Tax Board shall determine a formula that
allocates the moneys, net of reimbursement costs, collected pursuant
to this article among the CALPAL chapters in amounts that are
proportional to the relative total amounts of voluntary contributions
made by taxpayers within each city, county, or city and county where
that CALPAL chapter is located. Any contributions made by a taxpayer
who is located within a city, county, or city and county that does
not have a CALPAL chapter established shall be allocated on a pro
rata basis to all the CALPAL chapters.
18856.3. (a) Except as otherwise provided in subdivision (b),
this article shall remain in effect only until January 1 of the fifth
taxable year following the first appearance of the CALPAL Fund on
the tax return, and as of that date is repealed, unless a later
enacted statute, that is enacted before the applicable date, deletes
or extends that date.
(b) If, in the second calendar year after the first taxable year
the CALPAL Fund appears on the tax return, 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), 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 or 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 contribution.
(c) For each calendar year, beginning with the third calendar year
that the CALPAL Fund appears on the tax return, 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.
SECTION 1. Section 41999 of the Health and
Safety Code is amended to read:
41999. (a) The state board shall develop and establish a grant
program that provides incentives for dry cleaners in the state that
utilize perchloroethylene in their operations to transition to
utilizing dry cleaning systems determined by the state board, in
consultation with the Office of Environmental Health Hazard
Assessment, the State Water Resources Control Board, the Department
of Toxic Substances Control, and any other entity the state board
determines to be appropriate, to be nontoxic and nonsmog-forming.
(b) To be eligible for a grant pursuant to this section,
applicants shall completely replace their perchloroethylene-based dry
cleaning system with a system that the state board, in consultation
with the Office of Environmental Health Hazard Assessment, the State
Water Resources Control Board, the Department of Toxic Substances
Control, and any other entity the state board determines to be
appropriate, has determined to be nontoxic and nonsmog-forming. The
state board shall determine the eligibility of grant recipients.
(c) The state board shall make grants available in the amount of
twenty thousand dollars ($20,000) to any eligible dry cleaning
operation for the purchase of a professional dry cleaning system that
uses a nontoxic and nonsmog-forming process, as determined by the
state board, in consultation with the Office of Environmental Health
Hazard Assessment, the State Water Resources Control Board, the
Department of Toxic Substances Control, and any other entity the
state board determines to be appropriate.
(d) The state board shall ensure that at least 50 percent of the
grant moneys provided pursuant to this section are awarded in a
manner that directly reduces air contaminants or reduces the public
health risk associated with air contaminants in communities with the
most significant exposure to air contaminants or localized air
contaminants, or both, including, but not limited to, communities of
minority populations or low-income populations, or both.
(e) Commencing January 1, 2007, and every three years thereafter,
the state board shall provide a report to the Legislature evaluating
effectiveness of the grant program.
(f) The state board shall establish a demonstration program to
showcase professional nontoxic and nonsmog forming dry cleaning
technologies in the state. The demonstration program shall require 50
percent matching funds to cover the costs of the demonstration
program. Any entity may contribute monies as matching funds,
including, but not limited to, a state or federal agency, an air
pollution control district or air quality management district, a
public utility district, or a nonprofit entity. Not more than 30
percent of the funds deposited annually in the Nontoxic Dry Cleaning
Incentive Trust Fund may be used for the demonstration program.