Bill Text: CA AB1577 | 2015-2016 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: CalFood Program: CalFood Account.

Spectrum: Slight Partisan Bill (Republican 14-9)

Status: (Passed) 2016-09-21 - Chaptered by Secretary of State - Chapter 400, Statutes of 2016. [AB1577 Detail]

Download: California-2015-AB1577-Amended.html

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BILL NUMBER: AB 1577	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 13, 2016
	AMENDED IN ASSEMBLY  MAY 27, 2016
	AMENDED IN ASSEMBLY  APRIL 27, 2016
	AMENDED IN ASSEMBLY  MARCH 9, 2016
	AMENDED IN ASSEMBLY  FEBRUARY 3, 2016

INTRODUCED BY   Assembly Member Eggman
   (Coauthors: Assembly Members Baker, Brough, Chávez, Dodd,
Gallagher, Cristina Garcia, Eduardo Garcia, Jones-Sawyer, Kim,
Lackey, Maienschein, Mathis, Olsen, Patterson, Salas, Steinorth,
Waldron, and Wilk)
   (Coauthors: Senators Berryhill, Cannella, Galgiani, and
Wieckowski)

                        JANUARY 4, 2016

   An act  to amend Sections 17053.88 and 23688 of the
Revenue and Taxation Code, and  to amend Section 18995 of,
and to amend the heading of Chapter 14.5 (commencing with Section
18995) of Part 6 of Division 9 of, the Welfare and Institutions Code,
relating to food banks.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1577, as amended, Eggman.  Income taxes: credits: food
bank donations.   CalFood Program: CalFood Account.
 
   (1) The Personal Income Tax Law and the Corporation Tax Law allow
various credits against the taxes imposed by those laws, including,
for taxable years beginning on or after January 1, 2012, and before
January 1, 2017, a credit for a qualified taxpayer, defined as a
person responsible for planting a crop, managing the crop, and
harvesting the crop from the land, in an amount equal to 10% of the
cost that would otherwise be included in, or required to be included
in, inventory costs, as specified under federal law, with respect to
the donation of fresh fruits or fresh vegetables to a food bank
located in California.  
   This bill, under both laws, would expand the credit to apply to
the donation of qualified donation items, defined as raw agricultural
products or processed foods. The bill would expand the definition of
a qualified taxpayer to also include a person responsible for
growing or raising a qualified donation item, or harvesting, packing,
or processing a qualified donation item. The bill would modify the
credit amount to instead equal 10% of the qualified value, as
defined, of the qualified donation items, but not less than an amount
that would otherwise be calculated and allowed under existing law.
The bill would extend the operation of the credit to taxable years
before January 1, 2022, and would require it to be claimed on a
timely filed original return. The bill would make various conforming
changes and would also make a nonsubstantive change to the personal
income tax provision. 
    (2)    Existing law requires
the State Department of Social Services to establish and administer
the State Emergency Food Assistance Program (SEFAP), to provide food
and funding for the provision of emergency food to food banks, as
provided. Existing law creates the State Emergency Food Assistance
Program Account and, upon appropriation by the Legislature, would
allocate the moneys in the account to SEFAP and require that those
moneys be used for the purchase, storage, and transportation of food
grown or produced in California and for the department's
administrative costs.
   This bill would rename the State Emergency Food Assistance Program
as the CalFood Program and would rename the State Emergency Food
Assistance Program Account as the CalFood Account. The bill would
make other conforming changes in this regard. 
   (3) Existing law requires any bill authorizing a new personal or
corporation income tax credit to, among other things, contain
specific goals, purposes, and objectives that the tax credit will
achieve, detailed performance indicators, and data collection
requirements.  
   This bill would include that additional information. 
   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.    Section 17053.88 of the Revenue and
Taxation Code is amended to read:
   17053.88.  (a) In the case of a qualified taxpayer that donates to
a food bank any qualified donation items that are accepted by that
food bank located in California under Chapter 5 (commencing with
Section 58501) of Part 1 of Division 21 of the Food and Agricultural
Code, for taxable years beginning on or after January 1, 2012, and
before January 1, 2022, there shall be allowed, without regard to the
taxpayer's method of accounting, as a credit against the "net tax"
(as defined by Section 17039), an amount equal to 10 percent of the
qualified value of the qualified donation items, but in no event
shall this amount be less than the amount that otherwise would have
been calculated and allowed under this section as added by Chapter
503 of the Statutes of 2011.
   (b) For the purposes of this section, the following definitions
shall apply:
   (1) "Qualified donation item" means fresh fruits or fresh
vegetables and the following raw agricultural products or processed
foods:
   (A) All of the following:
   (i) "Fruits, nuts, or vegetables" as defined in Section 42510 of
the Food and Agricultural Code.
   (ii) "Meat food product" as defined in Section 18665 of the Food
and Agricultural Code.
   (iii) "Poultry" as defined in Section 18675 of the Food and
Agricultural Code.
   (iv) "Eggs" as defined in Section 75027 of the Food and
Agricultural Code.
   (v) "Fish" as defined in Section 58609 of the Food and
Agricultural Code.
   (B) All of the following food as defined in Section 109935 of the
Health and Safety Code:
   (i) Rice.
   (ii) Beans.
   (iii) Fruit, nuts, and vegetables in canned, frozen, dried,
dehydrated, and 100-percent juice forms.
   (iv) Any cheese, milk, yogurt, butter, or dehydrated milk meeting
the requirements in Division 15 (commencing with Section 32501) of
the Food and Agricultural Code.
   (v) Infant formula subject to Section 114094.5 of the Health and
Safety Code.
   (vi) Vegetable oil and olive oil.
   (vii) Soup, pasta sauce, and salsa.
   (viii) Bread and pasta.
   (ix) Canned meats and canned seafood.
   (2) "Qualified taxpayer" means the person responsible for planting
a crop, managing the crop, harvesting the crop from land, growing or
raising a qualified donation item, or harvesting, packing, or
processing a qualified donation item.
   (3) "Qualified value" means either of the following:
   (A) The qualified value shall be calculated by using the weighted
average wholesale sale price based on the qualified taxpayer's total
like grade wholesale sales of the donated item sold within the
calendar month of the qualified taxpayer's donation.
   (B) If no wholesale sales of the donated item have occurred in the
calendar month of the qualified taxpayer's donation, the qualified
value shall be equal to the nearest regional wholesale market price
for the calendar month of the donation based upon the same grade
products as published by the United States Department of Agriculture'
s Agricultural Marketing Service, or its successor.
   (c) If the credit allowed by this section is claimed by the
qualified taxpayer, any deduction otherwise allowed under this part
for that amount of the cost paid or incurred by the qualified
taxpayer that is eligible for the credit shall be reduced by the
amount of the credit provided in subdivision (a).
   (d) The donor shall provide to the food bank the qualified value
of the donation items and information regarding the origin of where
the donation items were grown, processed, or both grown and
processed. Upon receipt and acceptance of the donation items, the
food bank shall provide a certificate to the donor. The certificate
shall contain a statement signed and dated by a person authorized by
the food bank that the donation items are accepted under Chapter 5
(commencing with Section 58501) of Part 1 of Division 21 of the Food
and Agricultural Code. The certificate shall also contain the type,
grade, and quantity of items donated, the name of the donor or
donors, the name and address of the food bank, and, as provided by
the donor, the origin of the donated items, and the qualified value
of the donated items, as described in subdivision (a). Upon the
request of the Franchise Tax Board, the qualified taxpayer shall
provide a copy of the certification to the Franchise Tax Board.
   (e) The credit allowed by this section may be claimed only on a
timely filed original return.
   (f) 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 for the six succeeding years if
necessary, until the credit has been exhausted.
   (g) Using the information available to the Franchise Tax Board
from the certificates required under subdivision (d) and subdivision
(d) of Section 23688, the Franchise Tax Board shall report to the
Legislature on or before December 1, 2014, and each December 1
thereafter until the inoperative date specified in paragraph (2) of
subdivision (h), regarding the utilization of the credit authorized
by this section and Section 23688. The Franchise Tax Board shall also
include in the report the estimated value of the qualified donation
items, the origin of the qualified donation items, and the month the
donation was made.
   (h) (1) A report required to be submitted pursuant to subdivision
(g) shall be submitted in compliance with Section 9795 of the
Government Code.
   (2) The requirement for submitting a report imposed under
subdivision (g) is inoperative on January 1, 2021, pursuant to
Section 10231.5 of the Government Code.
   (i) This section is repealed on December 1, 2022. 

  SEC. 2.    Section 23688 of the Revenue and
Taxation Code is amended to read:
   23688.  (a) In the case of a qualified taxpayer that donates to a
food bank any qualified donation items that are accepted by that food
bank located in California under Chapter 5 (commencing with Section
58501) of Part 1 of Division 21 of the Food and Agricultural Code,
for taxable years beginning on or after January 1, 2012, and before
January 1, 2022, there shall be allowed, without regard to the
taxpayer's method of accounting, as a credit against the "tax" (as
defined by Section 23036), an amount equal to 10 percent of the
qualified value of the qualified donation items, but in no event
shall this amount be less than the amount that otherwise would have
been calculated and allowed under this section as added by Chapter
503 of the Statutes of 2011.
   (b) For the purposes of this section, the following definitions
shall apply:
   (1) "Qualified donation item" means fresh fruits or fresh
vegetables and the following raw agricultural products or processed
foods:
   (A) All of the following:
   (i) "Fruits, nuts, or vegetables" as defined in Section 42510 of
the Food and Agricultural Code.
   (ii) "Meat food product" as defined in Section 18665 of the Food
and Agricultural Code.
   (iii) "Poultry" as defined in Section 18675 of the Food and
Agricultural Code.
   (iv) "Eggs" as defined in Section 75027 of the Food and
Agricultural Code.
   (v) "Fish" as defined in Section 58609 of the Food and
Agricultural Code.
   (B) All of the following food as defined in Section 109935 of the
Health and Safety Code:
   (i) Rice.
   (ii) Beans.
   (iii) Fruit, nuts, and vegetables in canned, frozen, dried,
dehydrated, and 100-percent juice forms.
   (iv) Any cheese, milk, yogurt, butter, or dehydrated milk meeting
the requirements in Division 15 (commencing with Section 32501) of
the Food and Agricultural Code.
   (v) Infant formula subject to Section 114094.5 of the Health and
Safety Code.
   (vi) Vegetable oil and olive oil.
   (vii) Soup, pasta sauce, and salsa.
   (viii) Bread and pasta.
   (ix) Canned meats and canned seafood.
   (2) "Qualified taxpayer" means the person responsible for planting
a crop, managing the crop, harvesting the crop from land, growing or
raising a qualified donation item, or harvesting, packing, or
processing a qualified donation item.
   (3) "Qualified value" means either of the following:
   (A) The qualified value shall be calculated by using the weighted
average wholesale sale price based on the qualified taxpayer's total
like grade wholesale sales of the donated item sold within the
calendar month of the qualified taxpayer's donation.
   (B) If no wholesale sales of the donated item have occurred in the
calendar month of the qualified taxpayer's donation, the qualified
value shall be equal to the nearest regional wholesale market price
for the calendar month of the donation based upon the same grade
products as published by the United States Department of Agriculture'
s Agricultural Marketing Service, or its successor.
   (c) If the credit allowed by this section is claimed by the
qualified taxpayer, any deduction otherwise allowed under this part
for that amount of the cost paid or incurred by the qualified
taxpayer that is eligible for the credit shall be reduced by the
amount of the credit provided in subdivision (a).
   (d) The donor shall provide to the food bank the qualified value
of the donation items and information regarding the origin of where
the donation items were grown, processed, or both grown and
processed. Upon receipt and acceptance of the donation items, the
food bank shall provide a certificate to the donor. The certificate
shall contain a statement signed and dated by a person authorized by
the food bank that the donation items are accepted under Chapter 5
(commencing with Section 58501) of Part 1 of Division 21 of the Food
and Agricultural Code. The certificate shall also contain the type,
grade, and quantity of items donated, the name of the donor or
donors, the name and address of the food bank, and, as provided by
the donor, the origin of the donated items, and the qualified value
of the donated items, as described in subdivision (a). Upon the
request of the Franchise Tax Board, the qualified taxpayer shall
provide a copy of the certification to the Franchise Tax Board.
   (e) The credit allowed by this section may be claimed only on a
timely filed original return.
   (f) In the case where the credit allowed by this section exceeds
the "tax," the excess may be carried over to reduce the "tax" in the
following year, and for the six succeeding years if necessary, until
the credit has been exhausted.
   (g) This section is repealed on December 1, 2022. 
   SEC. 3.   SECTION 1.   The heading of
Chapter 14.5 (commencing with Section 18995) of Part 6 of Division 9
of the Welfare and Institutions Code is amended to read:
      CHAPTER 14.5.  THE CALFOOD PROGRAM


   SEC. 4.   SEC. 2.   Section 18995 of the
Welfare and Institutions Code is amended to read:
   18995.  (a) On and after January 1, 2017, the State Emergency Food
Assistance Program (SEFAP), administered by the State Department of
Social Services, shall be renamed as the "CalFood Program." The
CalFood Program shall provide food and funding for the provision of
emergency food to food banks established pursuant to the federal
Emergency Food Assistance Program (7 C.F.R. Parts 250 and 251) whose
ongoing primary function is to facilitate the distribution of food to
low-income households.
   (b) The CalFood Account is hereby established in the Emergency
Food Assistance Program Fund established pursuant to Section 18852 of
the Revenue and Taxation Code, and may receive federal funds and
voluntary donations or contributions.
   (c) Notwithstanding Section 18853 of the Revenue and Taxation
Code, the following shall apply:
   (1) All moneys received by the CalFood Account shall, upon
appropriation by the Legislature, be allocated to the State
Department of Social Services for allocation to the CalFood Program
and, with the exception of those contributions made pursuant to
Section 18851 of the Revenue and Taxation Code and funds received
through Parts 250 and 251 of Title 7 of the Code of Federal
Regulations, shall be used for the purchase, storage, and
transportation of food grown or produced in California. Storage and
transportation expenditures shall not exceed 10 percent of the
CalFood Program fund's annual budget.
   (2) Notwithstanding paragraph (1), funds received by the CalFood
Account shall, upon appropriation by the Legislature, be allocated to
the State Department of Social Services for allocation to the
CalFood Program as described in paragraph (1), and shall, in part, be
used to pay for the department's administrative costs associated
with the administration of the CalFood Program. 
  SEC. 5.    For the purposes of complying with
Section 41 of the Revenue and Taxation Code, with respect to Sections
17053.88 and 23688 of the Revenue and Taxation Code, the Legislature
finds and declares as follows:
   (a) Specific goal, purpose, and objective: increase the variety of
donated raw agricultural products or processed foods.
   (b) Performance indicator: types of qualified items donated.
   (c) Data collection requirements and baseline measurements:
   (1) The baseline measurements include the current types of donated
raw agricultural products or processed foods.
   (2) Data to collect includes the types of raw agricultural
products or processed foods donated after the tax credit is put in
place.