Bill Text: CA AB2430 | 2015-2016 | Regular Session | Amended

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

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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-Amended.html

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BILL NUMBER: AB 2430	AMENDED
	BILL TEXT

	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, as amended, Beth Gaines.  Voluntary contributions:
 Juvenile   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 
Juvenile   Type 1  Diabetes Research Fund, which
the bill would create. The bill would require moneys transferred to
the  Juvenile   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 Juvenile Diabetes Research Fund for the purpose of fighting type
1 diabetes,   an authorized   diabetes research
organization, as defined, for the purpose of type 1 diabetes
research,  as provided.
   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 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.   Juvenile   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
 Juvenile   Type 1  Diabetes Research Fund
established by Section  18782 to be used by the Juvenile
Diabetes Research Fund.   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 initial   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  "Juvenile  
"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  the Juvenile Diabetes Research
Fund.   an authorized   diabetes research
organization. 
   (2) Notwithstanding any other law, a voluntary contribution
designation for the  Juvenile   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
 Juvenile   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  Juvenile 
 Type 1  Diabetes Research Fund. The Controller shall
transfer from the Personal Income Tax Fund to the  Juvenile
  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  Juvenile 
 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) The balance  for the purpose of fighting type 1
diabetes.   to an authorized diabetes research
organization for the purpose of type 1 diabetes research. The
authorized diabetes research organization may use up to 5 percent of
the moneys allocated to it for administering and promoting the
research. 
   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  Juvenile   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  Juvenile  
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  Juvenile   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  Juvenile  
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  estimated  contribution amount
for the calendar year shall be an amount equal to the product of the
minimum  estimated  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. 
   (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.