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AB-2096 Personal income taxes: voluntary contributions: Organ and Tissue Donor Registry Voluntary Tax Contribution Fund.(2017-2018)

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Date Published: 09/07/2018 04:00 AM
AB2096:v94#DOCUMENT

Assembly Bill No. 2096
CHAPTER 276

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

[ Approved by Governor  September 06, 2018. Filed with Secretary of State  September 06, 2018. ]

LEGISLATIVE COUNSEL'S DIGEST


AB 2096, Frazier. Personal income taxes: voluntary contributions: Organ and Tissue Donor Registry Voluntary Tax Contribution 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 would allow a taxpayer to designate an amount in excess of personal income tax liability to be transferred into the Organ and Tissue Donor Registry 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 when another voluntary contribution designation is removed or space becomes available, whichever occurs first. The bill would require the fund to meet an annual minimum contribution amount of $250,000, as specified. The bill would require moneys transferred to the Organ and Tissue Donor Registry Voluntary Tax Contribution Fund to be continuously appropriated and allocated to the Donate Life 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.
The bill would provide that these provisions would remain in effect only until January 1 of the 7th calendar year following the first appearance of the Organ and Tissue Donor Registry Voluntary Tax Contribution Fund on the personal income tax return and would repeal the provisions as of December 1 of that year. The bill would provide for an earlier repeal if the Franchise Tax Board determines that the amount of contributions estimated to be received during the 2nd and later calendar years after its first appearance on a return will not at least equal the minimum contribution amount, in which case these provisions would be repealed on December 1 of that year.
By continuously appropriating these funds, the bill would make an appropriation.
Vote: MAJORITY   Appropriation: YES   Fiscal Committee: YES   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. Organ and Tissue Donor Registry Voluntary Tax Contribution Fund

18907.
 (a) 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 Organ and Tissue Donor Registry 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 a 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 to include a space labeled the “Organ and Tissue Donor Registry 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).
(f) Notwithstanding subdivision (d), a voluntary contribution designation for the Organ and Tissue Donor Registry Voluntary Tax Contribution Fund shall not be added on the tax return until another voluntary contribution designation is removed or space is available, whichever occurs first.

18907.1.
 There is hereby established in the State Treasury the Organ and Tissue Donor Registry 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 Organ and Tissue Donor Registry Voluntary Tax Contribution Fund. The Controller shall transfer from the Personal Income Tax Fund to the Organ and Tissue Donor Registry 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 Organ and Tissue Donor Registry 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 Donate Life 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.

18907.3.
 Donate Life California Organ and Tissue Donor Registrar shall comply with the Internet Web site reporting requirements described in Section 18873.

18907.4.
 (a) Except as otherwise provided in subdivision (b), this article shall remain in effect only until January 1 of the seventh calendar year following the first appearance of the Organ and Tissue Donor Registry Voluntary Tax Contribution 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 Organ and Tissue Donor Registry Voluntary Tax Contribution Fund appears on the tax return, the Franchise Tax Board shall 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 as described in paragraph (3). 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 Organ and Tissue Donor Registry Voluntary Tax Contribution Fund on the personal income tax return and the following calendar years.