Bill Text: CA AB2100 | 2009-2010 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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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

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BILL NUMBER: AB 2100	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 25, 2010

INTRODUCED BY   Assembly Member Coto

                        FEBRUARY 18, 2010

    An act to amend Sections 17276, 17276.9, 17276.10, 23101,
24416, 24416.9, 24416.10, 25120, and 25135 of, to repeal Sections
23663 and 25128.5 of, and to repeal and amend Section 25136 of, the
Revenue and Taxation Code, relating to taxation, to take effect
immediately, tax levy.   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.  Income taxation: deductions:
net operating loss carrybacks: credits: eligible assignees: single
sales factor.   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 at the
rate of one cent ($0.01) per teaspoon of added 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. 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
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 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.  
   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.  
   The Personal Income Tax Law and the Corporation Tax Law allow
various deductions in computing the income that is subject to the
taxes imposed by those laws. Existing law allows a deduction for
specified net operating losses, including allowing net operating loss
carrybacks attributable to taxable years beginning on or after
January 1, 2011.  
   This bill would disallow the use of net operating loss carrybacks
by individual and corporate taxpayers.  
   The Corporation Tax Law authorize various credits against the
taxes imposed by that law. Existing law provides, for taxable years
beginning on or after July 1, 2008, that any credit that is an
eligible credit, as defined, may be assigned to any eligible
assignees, as defined, that may be used by that eligible assignee for
taxable years beginning on or after January 1, 2010. 

   This bill would repeal these provisions authorizing the
assignation of credits and the use of those credits by eligible
assignees.  
   The Corporation Tax Law imposes taxes measured by income and, in
the case of a business with income derived from or attributable to
sources both within and without this state, apportions the income
between this state and other states and foreign countries in
accordance with a specified 4-factor formula based on the property,
payroll, and sales within and without this state, except that in the
case of an apportioning trade or business that derives more than 50%
of its gross business receipts from conducting one or more qualified
business activities, as defined, business income is apportioned in
accordance with a specified 3-factor formula. Existing law, for
taxable years beginning on or after January 1, 2011, allows a
taxpayer to have that income apportioned in accordance with a single
sales factor formula, except as provided.  
   This bill would repeal the provisions that allow a taxpayer to
have income apportioned in accordance with a single sale factor
formula.  
   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. 
   Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program:  no   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 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
physical inactivity, obesity, and overweight costs 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 calories than they did in 1977. One hundred twenty of
these calories can be attributed to sugar sweetened beverages. 

   (e) 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.    Pa   rt 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) "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) "Bottled sweetened beverage" means a sweetened beverage
contained in a beverage container.
   (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.
   (f) "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) "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) "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) "Nonalcoholic beverage" means all beverages not subject to tax
under Part 14 (commencing with Section 32001).
   (j) (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.
   (k) "Sale" means the transfer of title or possession for
consideration in any manner or by any means whatever.
   (l) "Simple syrup" means a mixture of sugar and water.
   (m) (1) "Sweetened beverage" means any sweetened nonalcoholic
beverage sold for human consumption 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.
   (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) "Syrup" means the liquid mixture of ingredients used in
making, or mixing, 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) "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).
   32603.  There is exempt from the tax 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.  The board shall administer and collect the tax 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 imposed by this part and references to "feepayer"
shall include a person required to pay the tax imposed by this part.
   32605.  Each person required to pay the tax shall prepare and file
with the board a return 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.
   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
sweetener, the total amount of bottled sweetened beverage drinks
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.    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.  All matter omitted in this
version of the bill appears in the bill as introduced in the Assembly
February 18, 2010. (JR11)