Bill Text: CA SB782 | 2013-2014 | Regular Session | Amended
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Income taxes: voluntary contributions: California Sexual
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Passed) 2014-09-16 - Chaptered by Secretary of State. Chapter 366, Statutes of 2014. [SB782 Detail]
Download: California-2013-SB782-Amended.html
Bill Title: Income taxes: voluntary contributions: California Sexual
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Passed) 2014-09-16 - Chaptered by Secretary of State. Chapter 366, Statutes of 2014. [SB782 Detail]
Download: California-2013-SB782-Amended.html
BILL NUMBER: SB 782 AMENDED
BILL TEXT
AMENDED IN SENATE JANUARY 6, 2014
AMENDED IN SENATE MAY 7, 2013
INTRODUCED BY Senator DeSaulnier
FEBRUARY 22, 2013
An act to add and repeal Chapter 20 (commencing with
Section 26300) to Division 20 of the Health and Safety Code, to amend
Section 13836 of the Penal Code, and to add and repeal Part 14.7
(commencing with Section 34001) to Division 2 of the Revenue and
Taxation Code, relating to sexual assaults. An act to
add and repeal Article 13.51 (commencing with Section 18846) of
Chapter 3 of Part 10.2 of Division 2 of the Revenue and Taxation
Code, relating to taxation.
LEGISLATIVE COUNSEL'S DIGEST
SB 782, as amended, DeSaulnier. Sexual assault treatment
and prevention: sexually oriented business tax. Income
taxes: voluntary contributions: California Sexual Violence Victim
Services Fund.
The Personal Income Tax Law authorizes an individual to contribute
amounts in excess of his or her tax liability for the support of
specified funds.
This bill would additionally allow an individual to designate on
his or her tax return that a specified amount in excess of his or her
tax liability be transferred to the California Sexual Violence
Victim Services Fund, which would be created by this bill. The bill
would prohibit a voluntary contribution designation for the
California Sexual Violence Victim Services Fund from being added on
the tax return until another voluntary contribution designation is
removed.
The bill would require moneys in the California Sexual Violence
Victim Services Fund, upon appropriation by the Legislature, to be
allocated to the Franchise Tax Board and the Controller for
reimbursement of costs, as provided, and the balance to the EpiCenter
of the Safe and Active Communities Branch of the State Department of
Public Health for allocation to the California Coalition Against
Sexual Assault (CALCASA), for the award of grants to support CALCASA
rape crisis center programs for victims of rape and sexual assault.
The bill would provide that these provisions would remain in
effect only until January 1 of the 5th taxable year following the
first appearance of the California Sexual Violence Victim Services
Fund on the tax return, but would further provide for an earlier
repeal if the Franchise Tax Board determines that the amount of
contributions estimated to be received during a calendar year will
not equal or exceed the minimum contribution amount, as defined, for
that calendar year, in which case these provisions would be repealed
on December 1 of that year.
Existing law imposes various taxes, including taxes on the
privilege of engaging in certain activities. The Fee Collection
Procedures Law, the violation of which is a crime, provides
procedures for the collection of certain fees and surcharges.
This bill would, until January 1, 2024, impose a tax on persons
operating a sexually oriented business, as defined, at the rate of
$10 per visit by a customer to the business inclusive of admission
and reentry. The tax would be administered by the State Board of
Equalization and would be collected pursuant to the procedures set
forth in the Fee Collection Procedures Law. The bill would create the
Sexual Assault Treatment and Prevention Fund, and would require that
all revenues, less refunds and the costs of the administration of
the tax, derived from the tax be transferred to the fund. This bill
would provide that moneys in the fund, upon appropriation by the
Legislature, be used by the Office of Emergency Services for
specified purposes related to the treatment and prevention of sexual
assault. This bill would prohibit the Office of Emergency Services
from allocating any funds until an appellate court has determined
that the tax on persons operating a sexually oriented business is not
unconstitutional.
Because this bill would expand application of the Fee Collection
Procedures Law, the violation of which is a crime, it would impose a
state-mandated local program.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
This bill would become operative on the first day of the first
calendar quarter commencing more than 90 days after the effective
date of this bill.
This bill would include a change in state statute that would
result in a taxpayer paying a higher tax within the meaning of
Section 3 of Article XIII A of the California Constitution, and thus
would require for passage the approval of 2/3 of the membership of
each house of the Legislature.
Vote: 2/3 majority . Appropriation:
no. Fiscal committee: yes. State-mandated local program: yes
no .
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Article 13.51 (commencing with Section
18846) is added to Chapter 3 of Part 10.2 of Division 2 of the
Revenue and Taxation Code , to read:
Article 13.51. California Sexual Violence Victim Services Fund
18846. (a) An individual may designate on the tax return that a
contribution in excess of the tax liability, if any, be made to the
California Sexual Violence Victim Services Fund established by
Section 18846.1. That designation is to be used as a voluntary
contribution on the tax return.
(b) The contributions shall be in full dollar amounts and may be
made individually by each signatory on a joint return.
(c) A designation under subdivision (a) shall be made for a
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 liability, the
return shall be treated as though no designation has been made. If a
designee is not specified, the contribution shall be transferred to
the General Fund after reimbursement of the direct actual costs of
the Franchise Tax Board for the collection and administration of
funds under this article.
(d) If an individual designates a contribution to more than one
account or fund listed on the tax return, and the amount available is
insufficient to satisfy the total amount designated, the
contribution shall be allocated among the designees on a pro rata
basis.
(e) The Franchise Tax Board shall revise the form of the return to
include a space labeled "California Sexual Violence Victim Services
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 further the services that
California's rape crisis centers provide for victims of rape or
sexual assault.
(f) Notwithstanding any other law, a voluntary contribution
designation for the California Sexual Violence Victim Services Fund
shall not be added on the tax return until another voluntary
contribution designation is removed.
(g) 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).
18846.1. There is hereby established in the State Treasury the
California Sexual Violence Victim Services Fund to receive
contributions made pursuant to Section 18846. 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 18846 to be
transferred to the California Sexual Violence Victim Services Fund.
The Controller shall transfer from the Personal Income Tax Fund to
the California Sexual Violence Victim Services Fund an amount not in
excess of the sum of the amounts designated by individuals pursuant
to Section 18846 for payment into that fund.
18846.2. All moneys transferred to the California Sexual Violence
Victim Services Fund, 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) To the EpiCenter of the Safe and Active Communities Branch of
the State Department of Public Health for allocation to the
California Coalition Against Sexual Assault (CALCASA) for the award
of grants to support CALCASA rape crisis center programs for victims
of rape and sexual assault. The EpiCenter of the Safe and Active
Communities Branch of the State Department of Public Health shall not
use these funds for its administrative costs.
18846.3. (a) Except as otherwise provided in subdivision (b),
this article shall remain in effect only until January 1 of the fifth
taxable year following the first appearance of the California Sexual
Violence Victim Services 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 California Sexual Violence Victim
Services Fund appears on the tax return, the Franchise Tax Board
shall do all 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) Provide written notification to the EpiCenter of the Safe and
Active Communities Branch of the State Department of Public Health of
the amount determined in subparagraph (A).
(C) 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 California Sexual Violence Victim Services 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 California Sexual Violence Victim
Services 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.
(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.
SECTION 1. The Legislature finds and declares
all of the following:
(a) It is the intent of the Legislature that an award of a grant
to an organization pursuant to this act shall not result in a
reduction in moneys appropriated by the Legislature to that
organization. The taxes imposed by this measure are intended to
ameliorate the negative secondary effects associated with the
combination of sexually oriented businesses and alcohol so as to
promote the health, safety, and welfare of the citizens of
California.
(b) Sexually oriented businesses that serve alcohol or that are
located near liquor-serving businesses pose larger and qualitatively
different ambient public safety hazards. Governments rely on this
consistent finding of the empirical secondary effect literature as a
rationale for limiting nudity in liquor-serving businesses.
(c) Accordingly, the consumption of alcohol on the premises of a
sexually oriented business contributes to the need for
community-based services to respond to victims of all forms of sexual
exploitation, including sexual harassment, trafficking, and sexual
assault.
(d) Rape crisis centers and other victim service providers play a
unique role in responding to assault, sexual abuse, trafficking, and
domestic violence. They also work to prevent crimes such as these
through the creation of public awareness and prevention that empowers
and restores persons who have been sexually violated.
(e) This act is not intended to directly or indirectly impose
limitations or restrictions on live nude dancing, nor is it the
intent of this act to restrict or deny access by adults to live nude
dancing performances that may be protected by the First Amendment to
the United States Constitution or by the California Constitution.
(f) This act shall be known and may be cited as the Sexual Assault
Victims Equity (SAVE) Act.
SEC. 2. Chapter 20 (commencing with Section
26300) is added to Division 20 of the Health and Safety Code, to
read:
CHAPTER 20. SEXUAL ASSAULT TREATMENT AND PREVENTION
26300. (a) The Office of Emergency Services shall use funds
transferred from the Sexual Assault Treatment and Prevention Fund.
Funding allocations shall be determined by the Office of Emergency
Services, in collaboration with the State Advisory Committee on
Sexual Assault Victim Services, as stipulated in Section 13836 of the
Penal Code. Except as provided in subdivision (f), funds transferred
from the Sexual Assault Treatment and Prevention Fund shall be used
only for the following purposes:
(1) To award grants for intervention services related to sexual
assault survivors and rape prevention programs provided by rape
crisis centers, as stipulated in Section 13837 of the Penal Code.
(2) To award grants to, and contracts with, a statewide
organization organized and operated as described in Section 501(c)(3)
of the Internal Revenue Code that has the primary purpose of ending
sexual violence in this state, for programs for the intervention and
prevention of sexual violence, outreach programs, training, and
technical assistance to and support of California rape crisis
centers, as stipulated in Section 13837 of Penal Code, and other
organizations funded by the Sexual Assault Treatment and Prevention
Fund to prevent and intervene in sexual violence in underserved
communities. Funds awarded pursuant to this paragraph shall be
administered by the Office of Emergency Services and approved by the
State Advisory Committee on Sexual Assault Victim Services, as
authorized in Section 13836 of the Penal Code.
(3) Civil legal services to sexual assault survivors.
(4) Coordination of sexual assault response teams that provide
multidisciplinary response services to sexual assault survivors.
(5) Culturally and linguistically appropriate intervention
services to sexual assault survivors from underrepresented or
underserved communities.
(6) To award grants to reimburse the payment of adult and
adolescent sexual assault forensic exams.
(7) To award grants to nonprofit organizations to support
intervention and treatment services for victims of sexual
exploitation of human trafficking. Eligible programs for these grants
include, but are not limited to, organizations that provide services
for victims of sexual and domestic violence and work to end and
prevent sexual and domestic violence.
(8) To award grants to nonprofit organizations to support the
intervention and treatment services for victims of sexual assault as
part of dating or domestic violence, including, but not limited to,
sexual assault services programs, as defined in Section 13837 of the
Penal Code, or domestic violence victim service organizations, as
defined in Section 1037.1 of the Evidence Code. Funds awarded
pursuant to this paragraph shall be administered by the Office of
Emergency Services and approved by the State Advisory Committee on
Sexual Assault Victim Services, as stipulated in Section 13836 of the
Penal Code.
(b) Grants awarded pursuant to paragraphs (3) to (8), inclusive,
of subdivision (a) shall be awarded as a result of a competitive
request for proposal process.
(c) No more than 10 percent annually of the funds deposited in the
Sexual Assault Treatment and Prevention Fund may be used for the
administration by the Office of Emergency Services of these grant
programs.
(d) The Office of Emergency Services shall not allocate any funds
under this section until an appellate court has determined that the
tax imposed by Part 14.7 (commencing with Section 34001) of Division
2 of the Revenue and Taxation Code is not unconstitutional. The
Office of Emergency Services may allocate funds immediately after the
determination.
(e) Notwithstanding subdivisions (a) and (b), the Office of
Emergency Services shall not allocate more than 20 percent of moneys
in the Sexual Assault Treatment and Prevention Fund in any calendar
year to one group, organization, corporation, partnership, or other
entity, whether for profit or nonprofit, or individual.
(f) (1) Notwithstanding subdivision (a), two hundred thousand
dollars ($200,000) shall be appropriated biennially by the
Legislature to the Office of Emergency Services from the Sexual
Assault Treatment and Prevention Fund to fund a report created by the
Office of Emergency Services to the Governor and the Legislature
reporting the following:
(A) The deficiencies with respect to research, prevention,
response, victim services, adjudication, and incarceration, related
to sexual assaults at state and local levels.
(B) The effectiveness of appropriations made to fund this chapter
and other legislation related to sexual assault intervention enacted
by the Legislature.
(C) Recommendations for appropriate performance measures that
enable the Governor and the Legislature to assess and respond to the
status of sexual assault prevention in this state.
(2) Notwithstanding Section 10231.5 of the Government Code, a
report, pursuant to paragraph (1), shall be submitted on July 1,
2015, and biennially thereafter.
(3) A report to be submitted pursuant to this subdivision shall be
submitted in compliance with Section 9795 of the Government Code.
(g) This chapter shall remain in effect only until January 1,
2024, and as of that date is repealed.
SEC. 3. Section 13836 of the Penal Code is
amended to read:
13836. The office shall establish the State Advisory Committee on
Sexual Assault Victim Services which shall develop a course of
training for district attorneys in the investigation and prosecution
of sexual assault cases, child sexual exploitation cases, and child
sexual abuse cases and shall approve grants awarded pursuant to
Section 13837 and Chapter 20 (commencing with Section 26300) of
Division 20 of the Health and Safety Code. The courses shall include
training in the unique emotional trauma experienced by victims of
these crimes.
It is the intent of the Legislature in the enactment of this
chapter to encourage the establishment of sex crime prosecution
units, which shall include, but not be limited to, child sexual
exploitation and child sexual abuse cases, in district attorneys'
offices throughout the state.
SEC. 4. Part 14.7 (commencing with Section
34001) is added to Division 2 of the Revenue and Taxation Code, to
read:
PART 14.7. SEXUALLY ORIENTED BUSINESS TAX
34001. For purposes of this part, the following definitions
apply:
(a) "Nude" means clothed in a manner that leaves uncovered or
visible through less than fully opaque clothing, any portion of the
genitals or, in the case of a female, any portion of the breasts
below the top of the areola of the breasts.
(b) "Sexually oriented business" means a nightclub, bar,
restaurant, or similar commercial enterprise that does both of the
following:
(1) Provides for an audience of two or more individuals live nude
entertainment or live nude performances where the nudity is a
function of everyday business operations and where nudity is a
planned and intentional part of the entertainment or performance.
(2) Authorizes on-premises consumption of alcoholic beverages,
regardless of whether the consumption of alcoholic beverages is under
a license or permit issued under the Alcoholic Beverage Control Act.
34002. The tax imposed by this part shall be in addition to any
other taxes imposed by law.
34003. For the privilege of operating a sexually oriented
business, a tax is hereby imposed upon all persons who operate a
sexually oriented business at the rate of ten dollars ($10) per visit
by a customer to the business inclusive of admission and reentry.
34004. A person who operates a sexually oriented business shall
record daily in the manner required by the board the number of
customers admitted to the business.
34005. A person who operates a sexually oriented business may not
require the tax imposed by this part to be reimbursed by an employee
or independent contractor of the sexually oriented business, but may
require the tax to be reimbursed by the customer whose entry the tax
is imposed upon, in a manner prescribed by the board.
34006. (a) The taxes imposed by this part shall be due and
payable to the board on or before the last day of the month following
each calendar quarter.
(b) (1) On or before the last day of the month following each
calendar quarter, a return for the preceding quarterly period shall
be filed with the board using electronic media.
(2) The board may prescribe those forms and reporting requirements
as are necessary to implement the tax, including, but not limited
to, information regarding the number of entries to the business and
the amount of tax due.
34006.5. Every person required to pay the tax imposed under this
part shall register with the board. Every application for
registration shall be made upon a form prescribed by the board and
shall set forth the name under which the applicant transacts or
intends to transact business, the location of the applicant's place
or places of business, and such other information as the board may
require. An application for an account shall be authenticated in a
form or pursuant to methods as may be prescribed by the board.
34007. The board shall administer and collect the tax imposed by
this part pursuant to the Fee Collection Procedures Law (Part 30
(commencing with Section 55001)). For purposes of this part, the
references in the Fee Collection Procedures Law to "fee" shall
include the tax imposed by this part and references to "feepayer"
shall include a person required to pay the tax imposed by this part.
34008. The board shall enforce the provisions of this part and
may prescribe, adopt, and enforce rules and regulations relating to
the administration and enforcement of this part. The board may
prescribe the extent to which any ruling or regulation shall be
applied without retroactive effect.
34009. (a) The board shall transmit all payments, less refunds
and the board's costs of administration, to the Treasurer to be
deposited in the State Treasury to the credit of the Sexual Assault
Treatment and Prevention Fund, which is hereby created.
(b) Moneys in the Sexual Assault Treatment and Prevention Fund
shall, upon appropriation by the Legislature, be transferred as
specified in Section 26300 of the Health and Safety Code.
34010. This part shall remain in effect only until January 1,
2024, and as of that date is repealed.
SEC. 5. No reimbursement is required by this
act pursuant to Section 6 of Article XIII B of the California
Constitution because the only costs that may be incurred by a local
agency or school district will be incurred because this act creates a
new crime or infraction, eliminates a crime or infraction, or
changes the penalty for a crime or infraction, within the meaning of
Section 17556 of the Government Code, or changes the definition of a
crime within the meaning of Section 6 of Article XIII B of the
California Constitution.
SEC. 6. The provisions of this act shall become
operative on the first day of the first calendar quarter commencing
more than 90 days after the effective date of this act.
