Bill Text: CA AB545 | 2021-2022 | Regular Session | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: University of California: major tax expenditures: research.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Engrossed - Dead) 2021-08-26 - In committee: Held under submission. [AB545 Detail]
Download: California-2021-AB545-Introduced.html
Bill Title: University of California: major tax expenditures: research.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Engrossed - Dead) 2021-08-26 - In committee: Held under submission. [AB545 Detail]
Download: California-2021-AB545-Introduced.html
CALIFORNIA LEGISLATURE—
2021–2022 REGULAR SESSION
Assembly Bill
No. 545
| Introduced by Assembly Member Quirk |
February 10, 2021 |
An act to add Section 42 to the Revenue and Taxation Code, relating to taxation.
LEGISLATIVE COUNSEL'S DIGEST
AB 545, as introduced, Quirk.
University of California: tax expenditures: research.
Existing law imposes various taxes, including income taxes and sales and use taxes, and allows specified tax expenditures, as defined, including credits, deductions, exclusions, and exemptions in computing those taxes. Existing law establishes the University of California, and provides for its administration, and the provision of instruction at its various campuses, by the Regents of the University of California.
This bill would request the Regents of the University of California perform a comprehensive assessment of major tax expenditures to study, among other things, the legislative intent, the beneficiaries, the number of effected returns or business entities, the cost to the General Fund, the effectiveness of such tax expenditures, and options to modify the tax expenditures to improve their
effectiveness or reduce their cost. This bill would request the Regents of the University of California provide a report to the Legislature by January 1, 2024. This bill would require the Senate Committee on Governance and Finance and the Assembly Committee on Revenue and Taxation, upon receipt of the report from the university, to hold a joint public hearing on the report by August 15, 2024, of the second year of the legislative session.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NOBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 42 is added to the Revenue and Taxation Code, to read:42.
(a) (1) The Legislature requests that the Regents of the University of California, through a new or existing research center, perform a comprehensive assessment of major tax expenditures, as that term is defined in Section 41, consistent with the terms of this section.(2) This section shall apply to the University of California only to the extent that the Regents of the University of California, by resolution, make any of these provisions applicable to the university.
(b) By July 1, 2023, the center identified pursuant to subdivision (a) shall present a comprehensive, peer-reviewed assessment of major tax expenditures to the Legislature pursuant to subdivision
(e).
(c) Notwithstanding Section 19542, or any other law, the Franchise Tax Board and the California Department of Tax and Fee Administration shall provide taxpayer information to the University of California to the extent the university needs access to such information to perform the research authorized by this section. Any individually identifiable information submitted pursuant to this subdivision that is provided to the university shall be compiled in an aggregate or anonymized manner to preserve confidentiality.
(d) The scope of the comprehensive assessment shall include, but is not limited to, the following, to the extent possible and reasonably related to the major tax expenditure:
(1) A description of the legislative intent for each tax expenditure, if the act adding or amending
the expenditure contains legislative findings and declarations of that intent or that legislative intent is otherwise expressed or specified by that act.
(2) A brief description of the beneficiaries of the tax expenditure.
(3) The number of returns filed or business entities affected, as applicable, for the most recent tax year for which full year data is available.
(4) A listing of any comparable federal tax benefit.
(5) A description of any recent prior tax expenditure evaluation or compilation of information completed by any state agency.
(6) Total loss to the General Fund dollars as a result of tax expenditures allowed to taxpayers.
(7) The economic, social, environmental, or any other impact of the tax expenditure to the State of California using metrics that the University of California deems appropriate for the tax expenditure.
(8) Options for modifying the tax expenditure to improve its effectiveness or to reduce its costs to the General Fund.
(e) By January 1, 2024, University of California shall provide a report to the Legislature that compiles all of its recommendations regarding major tax expenditures. The University of California shall also submit the report to the Senate Committee on Budget and Fiscal Review, the Senate Committee on Governance and Finance, the Assembly Committee on Budget, and the Assembly Committee on Revenue and Taxation. The report to the Legislature shall be submitted in compliance with Section 9795 of the Government Code.
(f) Upon receipt of the report required by subdivision (e), the Senate Committee on Governance and Finance and the Assembly Committee on Revenue and Taxation shall hold a joint public hearing on the report by August 15 of the second year of the legislative session.
