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AB-2096 Personal income taxes: voluntary contributions: Donate Life California Fund.(2017-2018)

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Date Published: 03/20/2018 09:00 PM
AB2096:v98#DOCUMENT

Amended  IN  Assembly  March 20, 2018

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 2096


Introduced by Assembly Member Frazier

February 07, 2018


An act to amend Section 18873 add Article 25 (commencing with Section 18907) to Chapter 3 of Part 10.2 of Division 2 of the Revenue and Taxation Code, relating to taxation. taxation, and making an appropriation therefor.


LEGISLATIVE COUNSEL'S DIGEST


AB 2096, as amended, Frazier. Personal income taxes: voluntary contributions. contributions: Donate Life California Fund.
Existing law, the Uniform Anatomical Gift Act, establishes the California Organ and Tissue Donor Registrar as a not-for-profit entity to establish and maintain the Donate Life California Organ and Tissue Donor Registry to contain, among other things, information regarding persons who have identified themselves as organ and tissue donors.
Existing law, the Personal Income Tax Law, authorizes an individual to contribute amounts in excess of his or her personal income tax liability for the support of specified funds. Existing law sets forth general administrative provisions applicable to voluntary contributions, which, among other things, repeal funds that fail to meet a minimum contribution amount of $250,000 in a given taxable year.
This bill, notwithstanding those repeal provisions, would indefinitely allow a taxpayer to designate an amount in excess of personal income tax liability to be deposited into the Donate Life California Voluntary Tax Contribution Fund, which the bill would create. The bill would require the Franchise Tax Board to revise the tax return to include a space for this fund. The bill would require moneys transferred to the Donate Life California Voluntary Tax Contribution Fund to be continuously appropriated and allocated to the California Organ and Tissue Donor Registrar, for the purpose of maintaining the Donate Life California Organ and Tissue Donor Registry, and to the Controller and the Franchise Tax Board, as provided. By continuously appropriating these funds, the bill would make an appropriation.

Existing law authorizes taxpayers to contribute amounts in excess of their personal income tax liability for the support of specified funds. Existing law also has administrative provisions generally applicable to a new or extended voluntary contribution that takes effect on or after January 2, 2017, as provided.

This bill would make nonsubstantive changes to that provision.

Vote: MAJORITY   Appropriation: NOYES   Fiscal Committee: NOYES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Article 25 (commencing with Section 18907) is added to Chapter 3 of Part 10.2 of Division 2 of the Revenue and Taxation Code, to read:
Article  25. Donate Life California Voluntary Tax Contribution Fund

18907.
 (a) Notwithstanding subdivision (c) of Section 18873, an individual may designate on the tax return that a contribution in excess of the taxpayer’s personal income tax liability, if any, be made to the Donate Life California Voluntary Tax Contribution Fund, which is established by Section 18907.1 to be used to maintain the Donate Life California Organ and Tissue Donor Registry, authorized pursuant to Section 7150.90 of the Health and Safety Code. That designation is to be used as a voluntary contribution on the tax return.
(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 taxpayer’s account, do not exceed the taxpayer’s tax liability, the return shall be treated as though no designation has been made.
(d) The Franchise Tax Board shall revise the form of the return for taxable years beginning on and after January 1, 2018, to include a space labeled “Donate Life California Voluntary Tax Contribution 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 maintain the Donate Life California Organ and Tissue Donor Registry.
(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).

18907.1.
 There is hereby established in the State Treasury the Donate Life California Voluntary Tax Contribution Fund to receive contributions made pursuant to Section 18907. 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 18907 to be transferred to the Donate Life California Voluntary Tax Contribution Fund. The Controller shall transfer from the Personal Income Tax Fund to the Donate Life California Voluntary Tax Contribution Fund an amount not in excess of the sum of the amounts designated by individuals pursuant to Section 18907 for payment into that fund.

18907.2.
 (a) Notwithstanding Section 13340 of the Government Code, all moneys transferred to the Donate Life California Voluntary Tax Contribution Fund pursuant to Section 18907.1 shall be continuously appropriated and allocated as follows:
(1) To the Controller and the Franchise Tax Board for reimbursement of all costs incurred by the Controller and the Franchise Tax Board in connection with their duties under this article.
(2) The balance to the California Organ and Tissue Donor Registrar, for its ongoing activities to maintain the Donate Life California Organ and Tissue Donor Registry, authorized by Section 7150.90 of the Health and Safety Code.
(b) All moneys allocated pursuant to paragraph (2) of subdivision (a) may be carried over from the year in which they were received and encumbered in any following year.

SECTION 1.Section 18873 of the Revenue and Taxation Code is amended to read:
18873.

Notwithstanding any other law, all of the following requirements shall apply to new voluntary tax contributions, including an extension of an existing voluntary tax contribution:

(a)The words “voluntary tax contribution” shall be included as part of the name of the fund.

(b)(1)The administering agency’s Internet Web site shall report the process for awarding money, the amount of money spent on administration, and an itemization of how program funds were awarded by the agency, including, but not limited to, information regarding recipients of funds.

(2)An “administering agency” means the state agency or other governmental entity, other than the Franchise Tax Board and the Controller, to which funds are allocated to accomplish the purposes of the voluntary tax contribution designation.

(c)(1)Except as otherwise provided in paragraph (2) or where another inoperative or repeal date is provided, the article establishing the voluntary tax contribution shall remain in effect only until January 1 of the seventh calendar year following the first appearance of the contribution on the personal income tax return, and is repealed as of December 1 of that year.

(2)The minimum contribution amount that must be received for the fund to continue appearing on the tax return is two hundred fifty thousand dollars ($250,000) for the second calendar year after the first appearance of the fund on the personal income tax return and each calendar year thereafter.

(d)Contributions made pursuant to the voluntary tax contribution shall be continuously appropriated from the fund to the administering agency to be spent as prescribed in the act in which the voluntary tax contribution is enacted.

(e)This section shall apply only to new voluntary tax contributions, including an extension of any existing voluntary tax contribution, that take effect on or after January 2, 2017.