Amended in Senate April 7, 2014

Senate Bill No. 1378

Introduced by Senator begin delete Huff end delete begin insert Morrell end insert

February 21, 2014

An act to begin delete amend Section 900 of the Insurance Code, relating to insurance. end delete begin insert add Section 17052.7 to the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. end insert

LEGISLATIVE COUNSEL’S DIGEST

SB 1378, as amended, begin delete Huff end delete   begin insert Morrell end insert . begin delete Insurance: annual statements. end delete begin insert Personal income tax: credits: charitable contributions. end insert

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The Personal Income Tax Law allows various credits against the tax imposed by that law.

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This bill would allow a credit against that tax for each taxable year beginning on or after January 1, 2014, in an amount equal to the amount donated to a qualified charitable organization, as defined, not to exceed a specified amount per taxable year. This bill would require the Franchise Tax Board to certify that the organization is a qualified charitable organization and post a list of the certified qualified charitable organizations on its Internet Web site.

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This bill would take effect immediately as a tax levy.

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Existing law requires every insurer, each year on or before the first day of March, to make and file with the Insurance Commissioner in the number, form, and by the methods prescribed by the commissioner, statements exhibiting its condition and affairs as of the previous December 31.

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This bill would make technical, nonsubstantive changes to that provision.

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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 Section 17052.7 is added to the end insert begin insert Revenue and
Taxation Code end insert begin insert , to read: end insert

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begin insert 17052.7. end insert   

(a) (1) For taxable years beginning on or after
January 1, 2014, there shall be allowed as a credit against the
“net tax,” as defined by Section 17039, an amount equal to the
amount donated by the taxpayer during the taxable year to a
qualified charitable organization, subject to paragraph (2).

(2) In the case of a single individual, a head of household, or
a married individual making a separate return, a credit allowed
under this section shall not exceed two hundred fifty dollars ($250).
In the case of a surviving spouse, as defined in Section 17046, or
a married couple making a joint return, a credit allowed under
this section shall not exceed five hundred dollars ($500).

(b) For purposes of this section, a “qualified charitable
organization” means an organization that meets all of the following
requirements:

(1) Is an organization that is exempt from federal income taxes
as an organization described in Section 501(c)(3) of the Internal
Revenue Code or is a designated community action agency that
receives community services block grant moneys pursuant to
Section 9901 of Title 42 of the United States Code.

(2) Spends at least 50 percent of its budget on services to
individuals in California who either receive CalWORKS benefits,
are low- income individuals whose household income is less than
150 percent of the poverty guidelines updated periodically in the
Federal Register by the United States Department of Health and
Human Services under the authority of Section 9902(2) of Title 42
of the United States Code, or are chronically ill or physically
disabled children.

(3) Demonstrates that the organization plans to continue to
spend at least 50 percent of its budget on services to those persons
described in paragraph (2).

(4) Applies to, and receives from, the Franchise Tax Board
certification that the organization meets all of the requirements
of paragraphs (1) to (3), inclusive.

(c) The Franchise Tax Board shall post on its Internet Web site
the names of the qualified charitable organizations.

(d) The Franchise Tax Board may prescribe rules, guidelines,
or procedures necessary or appropriate to carry out the purposes
of this section, including any guidelines regarding the certification
of qualified charitable organizations pursuant to this section.

(e) In the case where the credit allowed by this section exceeds
the “net tax,” the excess may be carried over to reduce the “net
tax” in the following year, and succeeding four years if necessary,
until the credit is exhausted.

(f) A credit allowed by this section shall be in lieu of any
charitable deduction otherwise allowed by this part.

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begin insert SEC. 2. end insert   

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This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.

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SECTION 1.  

Section 900 of the Insurance Code is amended
to read:

900.  

(a) Each year, on or before the first day of March, every
insurer doing business in this state shall make and file with the
commissioner, in the number, form, and by the methods prescribed
by the commissioner, statements exhibiting its condition and affairs
as of the previous December 31. If the first day of March falls on
a day other than a business day, the filing is due to the
commissioner by the first business day preceding the first day of
March.

(b) Each year, on or before the following dates, every insurer
doing business in this state shall make and file with the
commissioner, in the number, form, and methods prescribed by
the commissioner, statements exhibiting its condition and affairs
for the period beginning on January 1 of the current calendar year
through the end of each quarter of the current year as described
below. These quarterly filings shall cover the period of time
beginning January 1 of the current year through and including the
last day of the quarter for which the report is being made. The first
quarter filing shall be filed with the commissioner on or before
May 15 of every year. The second quarter filing shall be filed with
the commissioner on or before August 15 of every year. The third
quarter filing shall be filed with the commissioner on or before
November 15 of every year. If any of these dates fall on a day
other than a business day, then the filing is due to the commissioner
by the first business day preceding that date.

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