Bill Text: CA AB2100 | 2009-2010 | Regular Session | Amended
Bill Title: Taxation: sweetened beverages: Pediatric Obesity Fund.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2010-05-13 - Re-referred to Com. on REV. & TAX. [AB2100 Detail]
Download: California-2009-AB2100-Amended.html
BILL NUMBER: AB 2100 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MAY 12, 2010
AMENDED IN ASSEMBLY MARCH 25, 2010
INTRODUCED BY Assembly Member Coto
FEBRUARY 18, 2010
An act to add Part 14.5 (commencing with Section 32600) to
Division 2 of the Revenue and Taxation Code, relating to taxation, to
take effect immediately, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
AB 2100, as amended, Coto. Taxation: sweetened beverages:
Pediatric Obesity Fund.
Existing law imposes various taxes, including taxes on the
privilege of engaging in certain activities. The Fee Collection
Procedures Law, the violation of which is a crime, provides
procedures for the collection of certain fees and surcharges.
This bill would , on and after January 1, 2011,
impose a tax on every distributor, as defined, at the
rate of one cent ($0.01) per teaspoon of added caloric
sweetener in the bottled sweetened beverage or concentrate
upon every person who makes the first sale in this state of bottled
sweetened beverage or concentrate and on every person who uses or
consumes, or places into a vending machine or retail stock, untaxed
bottled sweetened beverage or concentrate, as provided
sold or offered for sale to a retailer in this state, and on a
retailer who sells bottled sweetened beverages or concentrate in this
state to consumers on which the tax has not been paid by a
distributor . This bill would exempt from the tax the
first sale in this state of concentrate to a sweetened beverage
manufacturer, as provided, and any sale, use, or
consumption which in this state of bottled
sweetened beverages or c oncentrate that the state
is prohibited from taxing, as provided. The tax would be administered
by the State Board of Equalization and would be collected pursuant
to the procedures set forth in the Fee Collection Procedures Law.
The bill would require the board to deposit all taxes, penalties,
and interest collected, less refund and administrative costs, in the
Pediatric Obesity Fund, which this bill would create. This bill would
require all moneys in the fund, upon appropriation by the
Legislature, to be allocated to the State Department of
Education for distribution of grants to eligible school districts for
the purpose of employing a school nurse or health educator and
creating a healthful diet and lifestyle plan for the school.
This bill would require the Director of Finance to transfer, an
unspecified amount from the General Fund to the board, to implement
the collection of the taxes imposed by this act, and would require
that amount to be repaid by the board with interest from the taxes
collected.
Because this bill would expand the application of the Fee
Collection Procedures Law, the violation of which is a crime, it
would impose a state-mandated local program.
This bill would make legislative findings and declarations
relating to the consumption of sweetened beverages and obesity.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
This bill would result in a change in state taxes for the purpose
of increasing state revenues within the meaning of Section 3 of
Article XIII A of the California Constitution, and thus would
require for passage the approval of 2/3 of the membership of each
house of the Legislature.
This bill would take effect immediately as a tax levy, but its
operative date would depend on its effective date.
Vote: 2/3. Appropriation: no yes .
Fiscal committee: yes. State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares all of the
following:
(a) Over 64 percent of adults in the United States are overweight
and 17 percent of children and adolescents ages 2 to 19, inclusive,
are overweight. Overweight Being overweight
is a significant risk factor for the development of diabetes.
Twenty-three percent of children and adults have diabetes and rates
continue to explode.
(b) Currently, over 5.6 million adults in California, which equals
21.2 percent, are obese and an additional half million adolescents,
which equals 14.2 percent, are overweight or obese. The
costs of It is estimated that physical
inactivity, obesity, and overweight costs
being overweight cost California residents over $28 billion per
year.
(c) An average 12-ounce serving of soda contains 10 teaspoons of
sugar, whereas the United States Department of Agriculture recommends
that a person eating a 2,200-calorie diet should consume no more
than 12 teaspoons of refined sugar per day.
(d) There is an overwhelming link between obesity and the
consumption of sweetened beverages. The average American consumes 278
additional more calories than they did
in 1977. One hundred twenty of these calories can be attributed to
sugar sweetened beverages.
(e) Children who frequently or excessively consume beverages high
in sugar are at increased risk for dental caries.
(f) Untreated dental caries can lead to pain, infection, tooth
loss and, in severe cases, even death. They can slow normal growth
and development by restricting nutritional intake. Children who are
missing teeth may have chewing problems that limit their food choices
and result in nutritionally inadequate diets.
(e)
(g) Adam Smith, in 1776, declared "Sugar, rum and
tobacco are commodities which are nowhere necessities of life, which
are become objects of almost universal consumption, and which are
therefore extremely proper subjects of taxation."
SEC. 2. Part 14.5 (commencing with Section 32600) is added to
Division 2 of the Revenue and Taxation Code, to read:
PART 14.5. SWEETENED BEVERAGE TAX LAW
32600. This part shall be known and may be cited as the Sweetened
Beverage Tax Law.
32601. For purposes of this part:
(a) "Added sweetener" means any additive that enhances the
sweetness of a beverage, including, but not limited to, added sugar,
but does not include the natural sugar or sugars that are contained
within the fruit juice that is a component of the beverage.
(b)
(a) "Beverage container" means any closed or sealed
glass, metal, paper, plastic, or any other type of container
regardless of the size or shape of the container.
(c)
(b) "Bottled sweetened beverage" means a sweetened
beverage contained in a beverage container.
(c) "Caloric sweetener" means any caloric substance suitable for
human consumption that humans perceive as sweet and includes, without
limitation, sucrose, fructose, including high fructose corn
sweetener, glucose, other sugars, and fruit juice concentrates.
"Caloric sweetener" excludes noncaloric sweeteners. "Caloric" means a
substance that adds calories to the diet of a person who consumes
that substance.
(d) "Concentrate" means a sweetened beverage syrup, simple syrup,
powder, or base product for mixing, compounding, or making sweetened
beverages.
(e) "Concentrate manufacturer" means any person that manufactures
concentrate for sale to distributors, dealers, consumers, or others
in this state.
(e) "Consumer" means a person who purchases a bottled sweetened
beverage or concentrate for consumption and not for resale.
(f) "Distributor" means any person, including a manufacturer and
wholesale dealer, who receives, stores, manufactures, bottles, or
distributes bottled sweetened beverages or concentrate to retailers
doing business in the state, whether or not that person also sells
these products to consumers.
(f)
(g) "Milk" means natural liquid milk, regardless of
animal source or butterfat content, natural milk concentrate, whether
or not reconstituted, regardless of animal source or butterfat
content, or dehydrated natural milk, whether or not reconstituted.
(g)
(h) "Natural fruit juice" means the original liquid
resulting from the pressing of fruit, the liquid resulting from the
reconstitution of natural fruit juice concentrate, or the liquid
resulting from the restoration of water to dehydrated natural fruit
juice.
(h)
(i) "Natural vegetable juice" means the original liquid
resulting from the pressing of vegetables, the liquid resulting from
the reconstitution of natural vegetable juice concentrate, or the
liquid resulting from the restoration of water to dehydrated natural
vegetable juice.
(i)
(j) "Nonalcoholic beverage" means all beverages not
subject to tax under Part 14 (commencing with Section 32001).
(k) "Noncaloric sweetener" means any noncaloric substance suitable
for human consumption that humans perceive as sweet and includes,
without limitation, aspartame, saccharin, stevia, and sucralose.
"Noncaloric" means a substance that does not add calories to the diet
of a person who consumes the substance.
(l) "Person" means an individual, trust, firm, joint stock
company, business concern, corporation, including, but not limited
to, a government corporation, partnership, limited liability company,
and association. "Person" also includes any city, county, city and
county, district, commission, the state, or any department, agency,
or political subdivision thereof, any interstate body, and the United
States and its agencies and instrumentalities to the extent
permitted by law.
(j)
(m) (1) "Powder" or "base product" means a mixture of
ingredients in other than liquid form, used in making, mixing, or
compounding sweetened beverages by mixing this product with water,
ice, syrup, or simple syrup, fruits, vegetables, fruit juice,
vegetable juice, or any other product suitable to make a sweetened
beverage.
(2) "Powder" or "base product" does not include any of the
following:
(A) Any product sold in powder or other nonliquid mixture form
that is solely used in preparing coffee or tea.
(B) Any product sold in powder form for consumption by infants and
which is commonly referred to as "infant formula."
(C) Any product sold in powder form for use for weight reduction.
(D) Any product containing milk or milk products.
(E) Any frozen concentrate or freeze-dried concentrate to which
only water is added to produce a sweetened beverage containing more
than 10 percent natural fruit juice or more than 10 percent natural
vegetable juice.
(F) Any powder or other base product that is sold and used for the
purpose of an individual consumer mixing a sweetened beverage.
(n) "Retailer" means any person who sells in this state bottled
sweetened beverages or concentrate to consumers whether or not that
person is also a distributor as defined in this section.
(k)
(o) "Sale" means the transfer of title or possession
for consideration in any manner or by any means whatever.
(l)
(p) "Simple syrup" means a mixture of sugar and water.
(m)
(q) (1) "Sweetened beverage" means any
sweetened nonalcoholic beverage sold for human consumption
that contains any added caloric sweetener including, but
not limited to, the following: soda water, ginger ale, root beer, all
beverages commonly referred to as cola, lime, lemon, lemon-lime, and
other flavored beverages, including any fruit or vegetable beverage
containing 10 percent or less natural fruit juice or natural
vegetable juice, and all other drinks and beverages commonly referred
to as "soda," "soda pop," and "soft drinks."
(2) "Sweetened beverage" does not include any of the following:
(A) Any nonalcoholic beverage sweetened entirely with
artificial sweeteners that do not add calories to the beverage.
noncaloric sweeteners.
(B) Any product sold in liquid form for consumption by infants,
which is commonly referred to as "infant formula."
(C) Any product sold in liquid form for use for weight reduction.
(D) Water, to which no natural sweeteners have been added.
(E) Any product containing milk or milk products.
(n) "Sweetened beverage manufacturer" means any person who
bottles, cans, or otherwise fills a bottled sweetened beverage.
(o)
(r) "Syrup" means the liquid mixture of ingredients
used in making, or mixing, mixing, or
compounding sweetened beverages by mixing the syrup with water,
simple syrup, ice, fruits, vegetables, fruit juice, vegetable juice,
or any other product suitable to make a sweetened beverage.
(p)
(s) "Teaspoon" means 4.2 grams.
32602. (a) A tax is hereby imposed at the rate of one cent
($0.01) per teaspoon of added sweetener in a bottled sweetened
beverage on every person who does the following:
(1) Makes the first sale in this state of a bottled sweetened
beverage.
(2) Uses or consumes an untaxed bottled sweetened beverage in this
state.
(3) Places in this state an untaxed bottled sweetened beverage in
a vending machine or in retail stock for the purpose of selling the
bottled sweetened beverage to consumers.
(b) A tax is hereby imposed at the rate of one cent ($0.01) per
teaspoon of added sweetener in the concentrate on every person who
does the following:
(1) Makes the first sale in this state of concentrate.
(2) Uses or consumes untaxed concentrate in this state.
(3) Places in this state untaxed concentrate in a vending machine
or retail stock for the purpose of selling a sweetened beverage to
consumers.
(c) There is exempt from the tax imposed under subdivision (b),
the sale of untaxed concentrate to a sweetened beverage manufacturer,
whose sale of the concentrate or the bottled sweetened concentrate
is subject to tax under subdivision (a) or (b).
32602. (a) There is hereby imposed a tax on every distributor at
the rate of one cent ($0.01) per teaspoon of added caloric sweetener
in a bottled sweetened beverage or concentrate sold or offered for
sale to a retailer in this state.
(b) A retailer who sells bottled sweetened beverages or
concentrate in this state to a consumer, on which the tax imposed by
this section has not been paid by a distributor, is liable for the
tax imposed in subdivision (a) at the time of sale to a consumer.
(c) Every distributor subject to the tax imposed pursuant to
subdivision (a) shall separately state the amount of tax due to the
board by the distributor on the receipt, invoice, or other form of
accounting of the transaction given to the retailer.
32603. There is exempt from the tax taxes
imposed by this part, the sale, use, or consumption in this
state of bottled sweetened beverage or concentrate where the state is
prohibited from taxing that sale, use, or consumption under the
Constitution or laws of the United States or under the Constitution
of this state.
32604. (a) The board shall administer and
collect the tax taxes imposed by this
part pursuant to the Fee Collection Procedures Law (Part 30
(commencing with Section 55001)). For purposes of this part, the
references in the Fee Collection Procedures Law to "fee" shall
include the tax taxes imposed by this
part and references to "feepayer" shall include a person required to
pay the any tax imposed by this part.
32605. Each person required to pay the tax shall prepare and
(b) (1) The board may prescribe, adopt, and enforce regulations
relating to the administration and enforcement of this part,
including, but not limited to, collections, reporting, refunds, and
appeals.
(2) The board may prescribe, adopt, and enforce any emergency
regulations as necessary to implement this part. Any emergency
regulation prescribed, adopted, or enforced pursuant to this section
shall be adopted in accordance with Chapter 3.5 (commencing with
Section 11340) of Part 1 of Division 3 of Title 2 of the Government
Code, and, for purposes of that chapter, including Section 11349.6 of
the Government Code, the adoption of the regulation is an emergency
and shall be considered by the Office of Administrative Law as
necessary for the immediate preservation of the public peace, health
and safety, and general welfare.
32605. (a) Each person required to pay the tax
imposed under this part shall register with the board. Every
application for registration shall be made upon a form prescribed by
the board and shall set forth the name under which the applicant
transacts or intends to transact business, the location of his or her
place or places of business, and any other information as the board
may require. An application for an account shall be authenticated in
a form or pursuant to a method as may be prescribed by the board.
(b) Each person required to pay
the tax shall prepare and file with the board a return
using electronic media in the form prescribed by the board
containing information as the board deems necessary or appropriate
for the proper administration of this part. The return shall be filed
on or before the last day of the calendar month following the
calendar quarter to which it relates, together with a remittance
payable to the board for the amount of tax due for that period.
Returns shall be authenticated in a form or pursuant to a method as
may be prescribed by the State Board of Equalization.
32606. The board may prescribe those forms and reporting
requirements as are necessary to implement the tax, including, but
not limited to, information regarding the total amount of added
caloric sweetener, the total amount of bottled sweetened
beverage drinks and concentrate sold, and the amount of
tax due.
32607. Every payment on a delinquent tax owed pursuant to this
part shall be applied as follows:
(a) First, to any interest due on the tax.
(b) Second, to any penalty imposed by this part.
(c) Third, the balance, if any, to the tax due.
32608. The board shall, upon appropriation, be reimbursed for
expenses incurred in the administration and collection of the tax
imposed by this part.
32609. (a) There is hereby created a fund in the State Treasury
called the Pediatric Obesity Fund. The Pediatric Obesity Fund shall
consist of all taxes, interest, penalties, and other amounts
collected pursuant to this part, less refunds and reimbursement to
the board for expenses incurred in the administration and collection
of the tax.
(b) All moneys in the Pediatric Obesity Fund shall, upon
appropriation by the Legislature, be allocated to the Department of
Education for distribution of grants to eligible school districts for
the purpose of employing a school nurse or health educator and
creating a healthful diet and lifestyle plan for the school.
SEC. 3. No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.
SEC. 4. (a) The Director of
Finance shall transfer, as a loan, up to ____ dollars ($____) from
the General Fund to the State Board of Equalization, to implement the
collection of the taxes imposed by this act.
(b) Any loan made pursuant to subdivision (a) shall be repaid on
or before ____, with interest at the pooled money investment rate,
from taxes collected pursuant to this act.
SEC. 4. SEC. 5. This act provides
for a tax levy within the meaning of Article IV of the Constitution
and shall go into immediate effect. However, the provisions of this
act shall become operative on January 1, 2011
the first day of the first calendar quarter commencing more than six
months after the effective date of this act .
