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SB-440 Personal income taxes: voluntary contributions: California Breast Cancer Research Voluntary Tax Contribution Fund and California Cancer Research Voluntary Tax Contribution Fund.(2017-2018)

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Date Published: 06/28/2017 09:00 PM
SB440:v97#DOCUMENT

Amended  IN  Assembly  June 28, 2017
Amended  IN  Assembly  June 12, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Senate Bill No. 440


Introduced by Senator Hertzberg
(Coauthors: Senators Atkins, Bates, Bradford, Dodd, Fuller, Galgiani, Glazer, and Wilk)
(Principal coauthor: Assembly Member Baker)
(Coauthors: Assembly Members Travis Allen, Dababneh, Gallagher, Cristina Garcia, Gipson, Gloria, Grayson, Maienschein, McCarty, Salas, Steinorth, and Waldron)

February 15, 2017


An act to amend Sections 18793, 18794, 18795, 18796, 18861, 18862, 18863, and 18864 of the Revenue and Taxation Code, relating to taxation, and making an appropriation therefor.


LEGISLATIVE COUNSEL'S DIGEST


SB 440, as amended, Hertzberg. Personal income taxes: voluntary contributions: California Breast Cancer Research Voluntary Tax Contribution Fund and California Cancer Research Voluntary Tax Contribution Fund.
Existing law allows individuals, until January 1, 2018, to designate on their personal income tax return that a specified amount in excess of their tax liability be contributed to the California Breast Cancer Research Fund, which is subject to appropriation by the Legislature, to be allocated to the Franchise Tax Board, the Controller, and the University of California for purposes of carrying out these provisions.
Existing law also allows individuals, until January 1, 2018, to designate on their tax returns that a specified amount in excess of their tax liability be contributed to the California Cancer Research Fund, which is subject to appropriation by the Legislature, to be allocated to the Franchise Tax Board, the Controller, and the University of California for purposes of carrying out these provisions. Existing law requires that each of these funds equal or exceed a minimum contribution amount, which initially was $250,000 and which was required to be and has been adjusted for inflation.
Existing law provides that when extending the operation of these voluntary tax contribution funds the words “voluntary tax contribution” be included in the name of the fund, that the administering agency comply with specified Internet Web site reporting requirements, that the fund provisions remain in effect only until January 1 of the 7th calendar year following the first appearance of the voluntary tax contribution on the personal income tax return, that the required calendar year minimum contribution amount for the fund to continue appearing on the return is $250,000, and that the contributions be continuously appropriated from the fund to the administering entity.
This bill would extend the operation of each fund’s provisions to January 1, 2025, and would conform to the above provisions by renaming the funds as the California Breast Cancer Research Voluntary Tax Contribution Fund and the California Cancer Research Voluntary Tax Contribution Fund, respectively, by continuously appropriating those funds to the Franchise Tax Board, the Controller, and the University of California for purposes of carrying out each fund’s provisions, and by requiring each fund to equal or exceed an unadjusted $250,000 minimum contribution amount to continue appearing on the return. By continuously appropriating these funds, the bill would make an appropriation. The bill would also provide that the Legislature requests the University of California and the Regents of the University of California, respectively, post on their Internet Web sites the process for awarding money, the amount of money spent on administration, and an itemization of how program funds were awarded, including, but not limited to, information regarding recipients of funds.
Vote: MAJORITY   Appropriation: YES   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 Section 18793 of the Revenue and Taxation Code is amended to read:

18793.
 (a) Any individual may designate on the tax return that a contribution in excess of the tax liability, if any, be made to the California Breast Cancer Research Voluntary Tax Contribution Fund, which is established by Section 18794. This 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 the joint return.
(c) A designation shall be made for any taxable year on the individual original return for that taxable year, and once made shall be irrevocable. In the event that 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.
(d) The Franchise Tax Board shall revise the forms of the return to include a space labeled the “California Breast Cancer Research Voluntary Tax Contribution Fund” to allow for the designation permitted. The forms 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 research relating to the cure, screening, and treatment of breast cancer.
(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).

SEC. 2.

 Section 18794 of the Revenue and Taxation Code is amended to read:

18794.
 There is in the State Treasury the California Breast Cancer Research Voluntary Tax Contribution Fund to receive contributions made pursuant to Section 18793. 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 which taxpayers have designated pursuant to Section 18793 to be transferred to the California Breast Cancer Research Voluntary Tax Contribution Fund. The Controller shall transfer from the Personal Income Tax Fund to the California Breast Cancer Research Voluntary Tax Contribution Fund an amount not in excess of the sum of the amounts designated by individuals pursuant to Section 18793 for payment into that fund.

SEC. 3.

 Section 18795 of the Revenue and Taxation Code is amended to read:

18795.
 (a) Notwithstanding Section 13340 of the Government Code, all money transferred to the California Breast Cancer Research Voluntary Tax Contribution Fund shall be continuously appropriated and allocated as follows:

(a)

(1) 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)

(2) To the University of California for the support of the Breast Cancer Research Program (Article 1 (commencing with Section 104145) of Chapter 2 of Part 1 of Division 103 of the Health and Safety Code) for the purposes stated therein that are related solely to breast cancer research. The University of California may use up to 5 percent of the money allocated to it for administering and promoting the program.
(b) The Legislature requests the University of California to report on its Internet Web site the process for awarding money, the amount of money spent on administration, and an itemization of how program funds were awarded, including, but not limited to, information regarding recipients of funds.

SEC. 4.

 Section 18796 of the Revenue and Taxation Code is amended to read:

18796.
 (a) Except as provided in subdivision (b), this article shall remain in effect only until January 1, 2025, and is repealed on December 1, 2025.
(b) (1) By September 1, 2018, and by September 1 of each subsequent calendar year that the California Breast Cancer Research Voluntary Tax Contribution Fund appears on a 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 for the calendar year pursuant to paragraph (3). The Franchise Tax Board shall estimate the amount of the 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 contributions estimated to be received during a calendar year will not at least equal the minimum contribution amount for the calendar year, this article is inoperative with respect to taxable years beginning on or after January 1 of that calendar year and is repealed on December 1 of that calendar year.
(3) For purposes of this section, the minimum contribution amount for a calendar year means two hundred fifty thousand dollars ($250,000).
(c) Notwithstanding the repeal of this article, any contribution amounts designated pursuant to this article before its repeal shall continue to be transferred and disbursed in accordance with this article as in effect immediately before that repeal.

SEC. 5.

 Section 18861 of the Revenue and Taxation Code is amended to read:

18861.
 (a) Any individual may designate on the tax return that a contribution in excess of the tax liability, if any, be made to the California Cancer Research Voluntary Tax Contribution Fund, pursuant to Section 18862. This 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 any taxable year on the individual original return for that taxable year, and once made shall be irrevocable. In the event that 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.
(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 forms of the return to include a space labeled the “California Cancer Research Voluntary Tax Contribution Fund” to allow for the designation permitted under subdivision (a). The forms 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 research relating to the causes, detection, and prevention of cancer, to expand community-based education on cancer, and to provide prevention and awareness activities for communities that are disproportionately at risk or afflicted by cancer.
(f) 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).

SEC. 6.

 Section 18862 of the Revenue and Taxation Code is amended to read:

18862.
 There is hereby created in the State Treasury the California Cancer Research Voluntary Tax Contribution Fund to receive contributions made pursuant to Section 18861. 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 18861 to be transferred to the California Cancer Research Voluntary Tax Contribution Fund. The Controller shall transfer from the Personal Income Tax Fund to the California Cancer Research Voluntary Tax Contribution Fund an amount not in excess of the sum of the amounts designated by individuals pursuant to Section 18861 for payment into that fund.

SEC. 7.

 Section 18863 of the Revenue and Taxation Code is amended to read:

18863.
 (a) Notwithstanding Section 13340 of the Government Code, all money transferred to the California Cancer Research Voluntary Tax Contribution Fund shall be continuously appropriated and allocated as follows:

(a)

(1) 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)

(2) To the Regents of the University of California for distribution of grants for the purposes of conducting research on the causes and treatments for cancer, expanding community-based education on cancer, and providing culturally sensitive and appropriate prevention and awareness activities targeted toward communities that are disproportionately at risk or afflicted by cancer, and for reimbursement of any costs incurred by the regents for administering the grants authorized pursuant to this section.
(b) The Legislature requests the Regents of the University of California to report on its Internet Web site the process for awarding money, the amount of money spent on administration, and an itemization of how program funds were awarded, including, but not limited to, information regarding recipients of funds.

SEC. 8.

 Section 18864 of the Revenue and Taxation Code is amended to read:

18864.
 (a) Except as otherwise provided in subdivision (b), this article shall remain in effect only until January 1, 2025, and is repealed on December 1, 2025.
(b) (1) By September 1 of the second calendar year and each subsequent calendar year that the California Cancer Research 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 for the calendar year pursuant to 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 is inoperative with respect to taxable years beginning on or after January 1 of that calendar year and is repealed on December 1 of that calendar year.
(3) For purposes of this section, the minimum contribution amount for a calendar year means two hundred fifty thousand dollars ($250,000).
(c) 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.