Bill Text: CA AB2430 | 2015-2016 | Regular Session | Chaptered
Bill Title: Voluntary contributions: Type 1 Diabetes Research Fund.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2016-09-22 - Chaptered by Secretary of State - Chapter 468, Statutes of 2016. [AB2430 Detail]
Download: California-2015-AB2430-Chaptered.html
BILL NUMBER: AB 2430 CHAPTERED
BILL TEXT
CHAPTER 468
FILED WITH SECRETARY OF STATE SEPTEMBER 22, 2016
APPROVED BY GOVERNOR SEPTEMBER 22, 2016
PASSED THE SENATE AUGUST 17, 2016
PASSED THE ASSEMBLY MAY 23, 2016
AMENDED IN ASSEMBLY APRIL 27, 2016
AMENDED IN ASSEMBLY APRIL 13, 2016
AMENDED IN ASSEMBLY MARCH 18, 2016
INTRODUCED BY Assembly Member Beth Gaines
FEBRUARY 19, 2016
An act to add and repeal Article 7.5 (commencing with Section
18781) of Chapter 3 of Part 10.2 of Division 2 of the Revenue and
Taxation Code, relating to taxation.
LEGISLATIVE COUNSEL'S DIGEST
AB 2430, Beth Gaines. Voluntary contributions: Type 1 Diabetes
Research Fund.
Under existing law, taxpayers are allowed to contribute amounts in
excess of their personal income tax liability for the support of
various funds. Existing law also contains administrative provisions
that are generally applicable to voluntary contributions.
This bill would allow a taxpayer to designate an amount in excess
of personal income tax liability to be deposited to the Type 1
Diabetes Research Fund, which the bill would create. The bill would
require moneys transferred to the Type 1 Diabetes Research Fund, upon
appropriation by the Legislature, to be allocated to the Franchise
Tax Board and the Controller, as provided, and to the University of
California for distribution of grants to authorized diabetes research
organizations, as defined, for the purpose of type 1 diabetes
research, as provided.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Article 7.5 (commencing with Section 18781) is added to
Chapter 3 of Part 10.2 of Division 2 of the Revenue and Taxation
Code, to read:
Article 7.5. Type 1 Diabetes Research Fund
18781. (a) Any individual may designate on the tax return that a
contribution in excess of the tax liability, if any, be made to the
Type 1 Diabetes Research Fund established by Section 18782.
(b) The contribution shall be in full dollar amounts and may be
made individually by each signatory on the joint return.
(c) A designation under subdivision (a) shall be made for any
taxable year on the original return for that taxable year, and once
made shall be irrevocable. If payments and credits reported on the
return, together with any other credits associated with the
individual's account, do not exceed the individual's tax liability,
the return shall be treated as though no designation has been made.
(d) (1) The Franchise Tax Board shall revise the form of the
return to include a space labeled "Type 1 Diabetes Research Fund" to
allow for the designation permitted under subdivision (a). 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 to conduct the activities of an
authorized diabetes research organization.
(2) Notwithstanding any other law, a voluntary contribution
designation for the Type 1 Diabetes Research Fund shall not be added
on the tax return until another voluntary contribution designation is
removed or space is available, whichever occurs first.
(e) 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).
18781.5. For purposes of this article:
(a) An "authorized diabetes research organization" means either:
(1) A university, located within the state, with a research
program.
(2) A nonprofit charitable organization exempt from federal income
tax as an organization described in Section 501(c)(3) of the
Internal Revenue Code that engages in research.
(b) "Research" shall include, but not be limited to, expenditures
to develop and advance the understanding, techniques, and modalities
effective in the cure, screening, and treatment of type 1 diabetes.
18782. There is hereby established in the State Treasury the Type
1 Diabetes Research Fund to receive contributions made pursuant to
Section 18781. 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 18781 to be transferred to the Type 1
Diabetes Research Fund. The Controller shall transfer from the
Personal Income Tax Fund to the Type 1 Diabetes Research Fund an
amount not in excess of the sum of the amounts designated by
individuals pursuant to Section 18781 for payment into that fund.
18783. All moneys transferred to the Type 1 Diabetes Research
Fund pursuant to Section 18782, 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) (1) To the University of California for distribution of grants
to authorized diabetes research organizations for the purposes of
conducting research on type 1 diabetes. The University of California
may use up to 5 percent of the moneys allocated to it for
administrative costs.
(2) An authorized diabetes research organization that receives a
grant pursuant to this section may use up to 5 percent of the grant
moneys for administrative costs.
18784. (a) Except as otherwise provided in paragraph (2) of
subdivision (b), this article shall remain in effect only until
January 1 of the fifth taxable year following the first appearance of
the Type 1 Diabetes Research Fund on the personal income tax return,
and is repealed as of December 1 of that year.
(b) (1) By September 1 of the second calendar year and each
subsequent calendar year that the Type 1 Diabetes Research Fund
appears on the tax return, the Franchise Tax Board shall do both of
the following:
(A) Determine the minimum contribution amount required to be
received during the next calendar year for the fund to appear on the
tax return for the taxable year that includes that next calendar
year.
(B) Determine whether the amount of contributions estimated to be
received during the calendar year will equal or exceed the minimum
contribution amount determined by the Franchise Tax Board for the
calendar year pursuant to subparagraph (A). The Franchise Tax Board
shall estimate the amount of contributions to be received by using
the actual amounts received and an estimate of the contributions that
will be received by the end of that calendar year.
(2) If the Franchise Tax Board determines that the amount of the
contributions estimated to be received during a calendar year will
not at least equal the minimum contribution amount for the calendar
year, this article shall be inoperative with respect to taxable years
beginning on or after January 1 of that calendar year and shall be
repealed on December 1 of that year.
(3) For purposes of this section, the minimum contribution amount
for a calendar year means two hundred fifty thousand dollars
($250,000) for the second calendar year after the first appearance of
the Type 1 Diabetes Research Fund on the personal income tax return
or the minimum contribution amount as adjusted pursuant to
subdivision (c).
(c) For each calendar year, beginning with the third calendar year
after the first appearance of the Type 1 Diabetes Research Fund on
the personal income tax return, the Franchise Tax Board shall adjust,
on or before September 1 of that calendar year, the minimum
contribution amount specified in subdivision (b) as follows:
(1) The minimum contribution amount for the calendar year shall be
an amount equal to the product of the minimum contribution amount
for the prior calendar year multiplied by the inflation factor
adjustment as specified in subparagraph (A) of 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 for all items received on or before
August 1 of the calendar year pursuant to paragraph (1) of
subdivision (h) of Section 17041.
