Today's Law As Amended


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SB-323 Taxes: exemptions: prohibited discrimination.(2013-2014)



As Amends the Law Today


SECTION 1.

 Section 6361 of the Revenue and Taxation Code is amended to read:

6361.
 (a) Any organization listed or described in subdivision (b) is a consumer and shall not be considered a retailer within the provisions of this part, of food products, nonalcoholic beverages, or other tangible personal property made or produced by members of the organization provided, however, that the organization’s sales are made on an irregular or intermittent basis, and that the organization’s profits from those sales are used exclusively in furtherance of the purposes of the organization.
(b) For purposes of this section, “organization” includes any of the following:
(1) Any nonprofit organization which meets all of the following conditions:
(A) The organization qualifies for tax-exempt status under Section 501(c) of the Internal Revenue Code.
(B) The organization’s primary purpose is to provide a supervised program of competitive sports for youth, or to promote good citizenship in youth.
(C) The organization does not discriminate on the basis of gender identity,  race, sex, sexual orientation,  nationality, religion,  or religion. religious affiliation. 
(2) (A) Any youth group sponsored by or affiliated with a qualified educational institution, including, but not limited to, any student activity club, athletic group, or musical group.
(B) For purposes of this section, “qualified educational institution” means any of the following:
(i) Any public elementary, secondary, or vocational-technical school providing education for kindergarten, grades 1 to 12, inclusive, and college undergraduate programs, or any part thereof, operated by state or local government.
(ii) Any nonprofit private educational institution providing education for kindergarten, grades 1 to 12, inclusive, and college undergraduate programs, or any part thereof, that meets the requirements of the State Department of Education for a school. “Private educational institution” means any entity providing education which satisfies the requirements of state and local laws pertaining to private educational institutions in effect on January 1, 1990, and which does not discriminate on the basis of gender identity,  race, sex, sexual orientation,  nationality, religion,  or religion. religious affiliation. 
(3) (A) Any of the following organizations that does not discriminate on the basis of gender identity, race, sexual orientation, nationality, religion, or religious affiliation:
(3) (B)  Little League, Bobby Sox, Boy Scouts, Cub Scouts, Girl Scouts, Campfire, Inc., Young Men’s Christian Association, Young Women’s Christian Association, Future Farmers of America, Future Homemakers of America, 4-H Clubs, Distributive Education Clubs of America, Future Business Leaders of America, Vocational Industrial Clubs of America, Collegiate Young Farmers, Boys’ Clubs, Girls’ Clubs, Special Olympics, Inc., American Youth Soccer Organization, California Youth Soccer Association, North, California Youth Soccer Association, South, and Pop Warner football.  
(c) (1)  For purposes of this section, “irregular or intermittent” means associated directly with a particular event, such as fairs, galas, parades, scout-a-ramas, games, and similar activities. That term includes refreshment stands or booths that are utilized at scheduled events of organized leagues, but does not include storefront or mobile retail outlets which ordinarily require local business licenses.
(2) For purposes of this section, an organization discriminates on the basis of gender identity, race, sexual orientation, nationality, religion, or religious affiliation if the organization either has a formal policy of discrimination or refuses to provide to the board written assurance of a formal policy barring discrimination based on a category listed above.
(d) The amendments to this section by the act adding this subdivision shall become operative on the first day of the first calendar quarter commencing more than 90 days after the effective date of this act.

SEC. 2.

 Section 23701.3 is added to the Revenue and Taxation Code, to read:

23701.3.
 (a) Notwithstanding any other law, for each taxable year beginning on or after January 1, 2014, an organization organized and operated for nonprofit purposes in accordance with Section 23701d that is a public charity youth organization that discriminates on the basis of gender identity, race, sexual orientation, nationality, religion, or religious affiliation shall not be exempt from taxes imposed by this part.
(b) For purposes of this section:
(1) A “public charity youth organization” includes, but is not limited to, those organizations listed in subparagraph (A) of paragraph (3) of subdivision (b) of Section 6361.
(2) A public charity youth organization discriminates on the basis of gender identity, race, sexual orientation, nationality, religion, or religious affiliation if the organization either has a formal policy of discrimination or refuses to provide to the Franchise Tax Board written assurance of a formal policy barring discrimination based on a category listed above.
(c) Subdivision (c) of Section 23701d, as that section read on January 1, 2013, or its successor, shall not prevent the Franchise Tax Board from confirming that a public charity youth organization is in compliance with subdivision (a) prior to issuing an acknowledgment that the organization is exempt from the taxes imposed by this part.
(d) If the Franchise Tax Board suspends or revokes the exemption of an organization pursuant to paragraph (3) of subdivision (c) of Section 23701d, or its successor, or subdivision (c), the exemption shall be reinstated only upon compliance with Section 23701, regardless of whether the organization can establish an exemption under paragraph (1) of subdivision (c) of Section 23701d, as that section read on January 1, 2013, or its successor.
SEC. 3.
 This bill would take effect immediately as a tax levy.