Bill Text: CA SB1416 | 2015-2016 | Regular Session | Chaptered
Bill Title: Voluntary contribution: Revive the Salton Sea Fund.
Spectrum:
Status: (Passed) 2016-08-26 - Chaptered by Secretary of State. Chapter 219, Statutes of 2016. [SB1416 Detail]
Download: California-2015-SB1416-Chaptered.html
BILL NUMBER: SB 1416 CHAPTERED
BILL TEXT
CHAPTER 219
FILED WITH SECRETARY OF STATE AUGUST 26, 2016
APPROVED BY GOVERNOR AUGUST 26, 2016
PASSED THE SENATE AUGUST 16, 2016
PASSED THE ASSEMBLY AUGUST 11, 2016
AMENDED IN ASSEMBLY JUNE 15, 2016
AMENDED IN SENATE MAY 23, 2016
AMENDED IN SENATE APRIL 27, 2016
AMENDED IN SENATE MARCH 28, 2016
INTRODUCED BY Senator Stone
(Coauthors: Assembly Members Eduardo Garcia and Mayes)
FEBRUARY 19, 2016
An act to add and repeal Article 4 (commencing with Section 18735)
of Chapter 3 of Part 10.2 of Division 2 of the Revenue and Taxation
Code, relating to the Salton Sea.
LEGISLATIVE COUNSEL'S DIGEST
SB 1416, Stone. Voluntary contribution: Revive the Salton Sea
Fund.
Existing law authorizes an individual taxpayer to contribute
amounts in excess of his or her personal income tax liability for the
support of specified funds. Existing law also contains
administrative provisions that are generally applicable to voluntary
contributions.
This bill would allow an individual to designate on his or her tax
return that a specified amount in excess of his or her tax liability
be transferred to the Revive the Salton Sea Fund, which would be
created by this bill. The bill would prohibit a voluntary
contribution designation for the Revive the Salton Sea Fund from
being added on the tax return until another voluntary contribution
designation is removed or a space is available and would require,
once the designation is added, specified information to be on the tax
form, including the purposes for which the contribution would be
used.
This bill would require money contributed to the fund, upon
appropriation by the Legislature, to be allocated to the Franchise
Tax Board and the Controller for reimbursement of costs, as provided,
and to the Natural Resources Agency for distribution of competitive
grants to provide funds or supplement funding of the state, county
and local agencies, nonprofit organizations, and projects identified
as necessary for the restoration and maintenance of the Salton Sea
and to develop a mechanism to provide ongoing public awareness, as
specified.
The bill would provide that these provisions would remain in
effect only until January 1 of the 5th taxable year following the
first appearance of the fund on the tax return, but would further
provide for an earlier repeal if the Franchise Tax Board determines
that the amount of contributions estimated to be received during a
calendar year will not equal or exceed the minimum contribution
amount, as defined, for that calendar year, in which case these
provisions would be repealed on December 1 of that year.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Article 4 (commencing with Section 18735) is added to
Chapter 3 of Part 10.2 of Division 2 of the Revenue and Taxation
Code, to read:
Article 4. Revive the Salton Sea Fund
18735. (a) An individual may designate on the tax return that a
contribution in excess of the tax liability, if any, be made to the
Revive the Salton Sea Fund established by Section 18736. That
designation shall 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 a
taxable year on the original return for that taxable year and once
made shall be irrevocable. If payments and credits reported on the
return, together with any other credits associated with the
individual's account, do not exceed the individual's tax liability,
the return shall be treated as though no designation has been made.
(d) (1) The Franchise Tax Board shall revise the form of the
return to include a space labeled "Revive the Salton Sea Fund" to
allow for the designation permitted under subdivision (a). The form
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 fund all of the following:
(A) Programs to create statewide public awareness and grassroots
support for the restoration of the Salton Sea.
(B) Programs to engage the public through promotion and education
about the Salton Sea.
(C) Current and future projects identified as necessary for
restoration and maintenance of the Salton Sea, including projects
identified by the Salton Sea Authority.
(2) Notwithstanding any other law, a voluntary contribution
designation for the Revive the Salton Sea Fund shall not be added on
the tax return until another voluntary contribution designation is
removed or space is available, whichever occurs first.
(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).
18736. There is hereby established in the State Treasury the
Revive the Salton Sea Fund to receive contributions made pursuant to
Section 18735. 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 18735 to be transferred to the Revive
the Salton Sea Fund. The Controller shall transfer from the Personal
Income Tax Fund to the Revive the Salton Sea Fund an amount not in
excess of the sum of the amounts designated by individuals pursuant
to Section 18735 for payment into that fund.
18737. (a) All money transferred to the Revive the Salton Sea
Fund, upon appropriation by the Legislature, shall be allocated as
follows:
(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.
(2) (A) To the Natural Resources Agency for distribution of
competitive grants to provide funds or supplement funding of state,
county and local agencies, nonprofit organizations, and projects
identified as necessary for the restoration and maintenance of the
Salton Sea, including projects identified by the Salton Sea
Authority.
(B) Up to 5 percent of the funds to the Natural Resources Agency
for development of a mechanism to provide ongoing public awareness
through activities that will promote the charitable tax deduction for
the fund and seek continued contributions. These activities may
include convening a philanthropic roundtable, developing literature
for use by city, county, or local agencies and programs, and whatever
other activities are deemed necessary and appropriate to promote the
fund.
(C) Funds allocated pursuant to this paragraph shall not be used
for administrative costs.
(b) Money in the Revive the Salton Sea Fund shall not be used to
supplant state General Fund money for any purpose.
18738. (a) Except as otherwise provided in paragraph (2) of
subdivision (b), this article shall remain in effect only until
January 1 of the fifth taxable year following the first appearance of
the Revive the Salton Sea Fund on the personal income tax return and
is repealed as of December 1 of that year.
(b) (1) By September 1 of the second calendar year and each
subsequent calendar year that the Revive the Salton Sea Fund appears
on the tax return, 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 that next calendar
year.
(B) Provide written notification to the Natural Resources Agency
of the amount determined in subparagraph (A).
(C) 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 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 shall be inoperative with respect to taxable years
beginning on or after January 1 of that calendar year and shall be
repealed on December 1 of that year.
(3) For purposes of this section, the minimum contribution amount
for a calendar year means two hundred fifty thousand dollars
($250,000) for the second calendar year after the first appearance of
the Revive the Salton Sea Fund on the personal income tax return or
the minimum contribution amount as adjusted pursuant to subdivision
(c).
(c) For each calendar year, beginning with the third calendar year
after the first appearance of the Revive the Salton Sea Fund on the
personal income 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 subparagraph (A) of 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 for all items received on or before
August 1 of the calendar year pursuant to paragraph (1) of
subdivision (h) of Section 17041.
