California Senate Bill SB1152 Latest Draft

 BILL NUMBER: SB 1152AMENDED BILL TEXT AMENDED IN SENATE APRIL 5, 2010 INTRODUCED BY Senator Kehoe FEBRUARY 18, 2010 An act to  amend Section 17006   add and repeal Article 17.5 (commencing with Section 18887) of Chapter 3 of Part 10.2 of Division 2  of the Revenue and Taxation Code, relating to taxation. LEGISLATIVE COUNSEL'S DIGEST SB 1152, as amended, Kehoe. Income taxes:  fiduciary.   voluntary contributions: blood banks.   Existing law contains various provisions relating to the administration of personal income taxes allowing individual taxpayers to contribute amounts in excess of their tax liability for the support of specified funds.   This bill would allow taxpayers to designate on their tax returns that a specified amount in excess of their tax liability be transferred to the California Blood Banks Designated Area Emergency Operation Centers Fund, which would be created by this bill.   This bill would provide that all money contributed to the fund pursuant to these provisions is subject to appropriation by the Legislature, as specified.   This bill would provide that these voluntary contribution provisions are repealed on January 1, 2015, or for the taxable year beginning on or after January 1 of the calendar year in which the Franchise Tax Board estimates, by September 1, that the contributions made on returns filed in that calendar year will be less than a specified minimum contribution amount, whichever occurs first.   The Personal Income Tax Law defines "fiduciary" as a guardian, trustee, executor, administrator, receiver, conservator, or any person, acting in any fiduciary capacity, as prescribed.   This bill would make technical, nonsubstantive changes to this provision.  Vote: majority. Appropriation: no. Fiscal committee:  no   yes  . State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:  SECTION 1.   Article 17.5 (commencing with Section 18887) is added to Chapter 3 of Part 10.2 of Division 2 of the   Revenue and Taxation Code   , to read:   Article 17.5. California Blood Banks Designated Area Emergency Operation Centers Fund 18887. The Legislature finds and declares that blood banks that are designated as Area Emergency Operation Centers by the California Emergency Management Agency are responsible for supplying blood to over 430 hospitals statewide. 18887.1. (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 Blood Banks Designated Area Emergency Operation Centers Fund, which is established by Section 18887.2. (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 initial return for that taxable year, and once made shall be irrevocable. In the event that payment 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) When another voluntary contribution designation is removed from the tax return, the Franchise Tax Board shall revise the forms of the return to include a space labeled the "California Blood Banks Designated Area Emergency Operation Centers 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 provide for the operation of blood banks designated as Area Emergency Operation Centers. (e) It is the intent of the Legislature that the California Blood Banks Designated Area Emergency Operation Centers Fund be placed on the tax return as soon as space is available. (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). 18887.2. There is hereby established in the State Treasury the California Blood Banks Designated Area Emergency Operation Centers Fund to receive contributions made pursuant to Section 18887.1. 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 18887.1 to be transferred to the California Blood Banks Designated Area Emergency Operation Centers Fund. The Controller shall transfer from the Personal Income Tax Fund to the California Blood Banks Designated Area Emergency Operation Centers Fund an amount not in excess of the sum of the amounts designated by individuals pursuant to Section 18887.1 for payment into that fund. 18887.3. All money transferred to the California Blood Banks Designated Area Emergency Operation Centers Fund, upon appropriation by the Legislature, shall be allocated as follows: (a) To the Franchise Tax Board and the Controller only for reimbursement of all costs incurred by the Franchise Tax Board and the Controller in connection with their duties under this article. (b) (1) To the California Emergency Management Agency, for allocation to blood banks that are designated as Area Emergency Operation Centers. (2) All money transferred to a blood bank pursuant to paragraph (1) shall be used by the blood bank for its operating costs. 18887.4. (a) Unless repealed earlier pursuant to subdivision (b), this article shall remain in effect only until January 1, 2015, and as of that date is repealed, unless a later enacted statute, which is enacted before January 1, 2015, deletes or extends that date. (b) (1) By September 1 of the first calendar year that the California Blood Banks Designated Area Emergency Operation Centers Fund appears on the tax return, and by September 1 of each subsequent calendar year, 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 the next calendar year. (B) 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 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 repealed with respect to taxable years beginning on or after January 1 of that calendar year. (3) For purposes of this section, "minimum contribution amount" for a calendar year means two hundred fifty thousand dollars ($250,000) for the second calendar year that the California Blood Banks Designated Area Emergency Operation Centers Fund appears on the tax return, or the minimum contribution amount adjusted pursuant to subdivision (c). (c) For each calendar year beginning with the third calendar year that the California Blood Banks Designated Area Emergency Operation Centers Fund appears on the 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 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 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.   Section 17006 of the Revenue and Taxation Code is amended to read: 17006. "Fiduciary" means a guardian, trustee, executor, administrator, receiver, conservator, or any person, whether individual or corporate, acting in a fiduciary capacity for a person, estate or trust.