Existing law requires an individual taxable under the Personal Income Tax Law to make a return to the Franchise Tax Board stating specifically the items of the individuals gross income from all sources and the deductions and credits allowable, as prescribed.

This bill would require the Franchise Tax Board to include a checkbox on resident income returns for purposes of allowing individuals to provide written consent for Donate Life California to enroll the individual in a specified organ and tissue donor registry and for the Franchise Tax Board to share the individuals information, as described. The bill would require the Franchise Tax Board to enter into a memorandum of understanding with the Donate Life California Organ and Tissue Donor Registry for purposes of mutually agreeing on the language to be used on the returns.

Existing law makes it a misdemeanor for the Franchise Tax Board or any member thereof, or any of specified individuals who in the course of their employment or duty has or had access to returns, reports, or documents required to be filed under specified law, to disclose or make known in any manner information as to the amount of income or any particulars set forth or disclosed in those returns, reports, or documents.

Commencing January 1, 2026, this bill would require the Franchise Tax Board to annually send, notwithstanding the above-described prohibition, specified information to Donate Life California with respect to an individual who provides written consent to enroll in the registry and share their information with Donate Life California. The bill would require Donate Life California to only use that information to administer the registry and to add individuals consenting to enrollment within 30 days of receiving their information from the Franchise Tax Board. The bill would require the Franchise Tax Board and Donate Life California to enter into a data sharing agreement, as specified, by January 1, 2025.

Existing law requires an individual taxable under the Personal Income Tax Law to make a return to the Franchise Tax Board stating specifically the items of the individuals gross income from all sources and the deductions and credits allowable, as prescribed.

This bill would require the Franchise Tax Board to include a checkbox on resident income returns for purposes of allowing individuals to provide written consent for Donate Life California to enroll the individual in a specified organ and tissue donor registry and for the Franchise Tax Board to share the individuals information, as described. The bill would require the Franchise Tax Board to enter into a memorandum of understanding with the Donate Life California Organ and Tissue Donor Registry for purposes of mutually agreeing on the language to be used on the returns.

Existing law makes it a misdemeanor for the Franchise Tax Board or any member thereof, or any of specified individuals who in the course of their employment or duty has or had access to returns, reports, or documents required to be filed under specified law, to disclose or make known in any manner information as to the amount of income or any particulars set forth or disclosed in those returns, reports, or documents.

Commencing January 1, 2026, this bill would require the Franchise Tax Board to annually send, notwithstanding the above-described prohibition, specified information to Donate Life California with respect to an individual who provides written consent to enroll in the registry and share their information with Donate Life California. The bill would require Donate Life California to only use that information to administer the registry and to add individuals consenting to enrollment within 30 days of receiving their information from the Franchise Tax Board. The bill would require the Franchise Tax Board and Donate Life California to enter into a data sharing agreement, as specified, by January 1, 2025.

Existing law requires an individual taxable under the Personal Income Tax Law to make a return to the Franchise Tax Board stating specifically the items of the individuals gross income from all sources and the deductions and credits allowable, as prescribed.

This bill would require the Franchise Tax Board to include a checkbox on resident income returns for purposes of allowing taxpayers individuals to provide written consent for Donate Life California to enroll the taxpayer individual in a specified organ and tissue donor registry and for the Franchise Tax Board to share the taxpayers individuals information, as described. The bill would require the Franchise Tax Board to enter into a memorandum of understanding with the Donate Life California Organ and Tissue Donor Registry for purposes of mutually agreeing on the language to be used on the returns.

Existing law makes it a misdemeanor for the Franchise Tax Board or any member thereof, or any of specified individuals who in the course of their employment or duty has or had access to returns, reports, or documents required to be filed under specified law, to disclose or make known in any manner information as to the amount of income or any particulars set forth or disclosed in those returns, reports, or documents.

Commencing January 1, 2026, this bill would require the Franchise Tax Board to annually send, notwithstanding the above-described prohibition, specified taxpayer information to Donate Life California with respect to a taxpayer an individual who provides written consent to enroll in the registry and share their information with Donate Life California. The bill would require Donate Life California to only use that information to administer the registry and to add individuals consenting to enrollment within 30 days of receiving their information from the Franchise Tax Board. The bill would require the Franchise Tax Board and Donate Life California to enter into a data sharing agreement, as specified, by January 1, 2025.

Existing law requires an individual taxable under the Personal Income Tax Law to make a return to the Franchise Tax Board stating specifically the items of the individuals gross income from all sources and the deductions and credits allowable, as prescribed.

This bill would require the Franchise Tax Board to revise the California include a checkbox on resident income tax return to include a check box for an individual taxpayer who self-prepares the taxpayers return to elect to be an organ donor with Donate Life California, followed by spaces for the taxpayer to provide certain identifying information, including the taxpayers name and the last four digits of the taxpayers social security number. The returns for purposes of allowing taxpayers to provide written consent for Donate Life California to enroll the taxpayer in a specified organ and tissue donor registry and for the Franchise Tax Board to share the taxpayers information, as described. The bill would require the Franchise Tax Board to enter into a memorandum of understanding with the Donate Life California Organ and Tissue Donor Registry for purposes of mutually agreeing on the language to be used on the returns.

Commencing January 1, 2026, this bill would require the Franchise Tax Board to annually send that send, notwithstanding the above-described prohibition, specified taxpayer information to Donate Life California with respect to an individual a taxpayer who has elected to be an organ donor. provides written consent to enroll in the registry and share their information with Donate Life California. The bill would require Donate Life California to only use that information to administer the registry and to add individuals consenting to enrollment within 30 days of receiving their information from the Franchise Tax Board. The bill would require the Franchise Tax Board and Donate Life California to enter into a data sharing agreement, as specified, by January 1, 2025.

Existing law requires an individual taxable under the Personal Income Tax Law to make a return to the Franchise Tax Board stating specifically the items of the individuals gross income from all sources and the deductions and credits allowable, as prescribed.

This bill would require the Franchise Tax Board to revise the California resident income tax return to include a check box for an individual taxpayer who self-prepares the taxpayers return to elect to be an organ donor with Donate Life California, followed by spaces for the taxpayer to provide certain identifying information, including the taxpayers name and the last four digits of the taxpayers social security number. The bill would require the Franchise Tax Board to annually send that information to Donate Life California with respect to an individual taxpayer who has elected to be an organ donor.

CONCURRENCE IN SENATE AMENDMENTS

CSA1 Bill Id:AB 1268

Author:(Irwin)

As Amended Ver:May 30, 2023

Majority vote

SUMMARY

Requires, for taxable years beginning January 1, 2025, the Franchise Tax Board (FTB) to include checkboxes on the resident income tax return allowing a taxpayer to provide written consent for Donate Life California (DLC) to enroll the taxpayer in the organization’s organ and tissue donor registry.

Senate Amendments

Replace references to "taxpayer" with "individual" and provide for two checkboxes on the return form in order to account for individuals filing joint returns.

COMMENTS

1. History of organ and tissue donor registry: DLC is the state-authorized nonprofit organization responsible for managing the organ, eye, and tissue donor registry in California. DLC represents the four federally designated organ recovery organizations in the state of California and is charged with educating the community about the need and importance for people to register their donation wishes. Since 2006, DLC has partnered with the DMV to help register Californians for the Registry through the inclusion of a question on the applications for a driver's license or identification card. This partnership has built the largest organ and tissue donor registry in the country, with over 18.5 million registered donors. Over 98% of these donors signed up at the DMV.
2. How organ donations save lives: One tissue donor – someone who can donate bone, tendons, cartilage, connective tissue, skin, corneas, sclera, and heart valves and vessels — can impact the lives of as many as 75 people. Although almost 170 million people are registered to be donors nationwide, only three in 1,000 people die in a way that allows for deceased organ donation. Organs are allocated according to medical need, blood and tissue type, height and weight. Celebrity status and wealth are not considered. It is against federal law to sell organs and tissues. Before organ and tissue donation can be considered, two doctors not involved in organ and tissue donation must declare a patient brain dead and there is no cost to the donor or their family.

According to the Author

The author has provided the following statement in support of this bill:

Organ and tissue transplants are a miracle of modern science that save thousands of lives each year. In California, approximately 22,000 individuals are currently on the transplant waiting list and have no alternative treatment options.  The vast majority of enrollments to the donation registry have come through a partnership with the DMV, which allows applicants for driver's licenses and ID cards to provide Donate Life California with their consent to be added to the registry.  Unfortunately, California still lags behind the national average in terms of registered donors.  With younger generations becoming less likely to apply for a driver's license, AB 1268 will provide an additional opportunity for individuals to sign-up for the registry through their state personal income tax return filed with FTB. This bill is modeled after the existing DMV program and ensures that taxpayer information shared by FTB with Donate Life California is protected and used appropriately.

Arguments in Support

In support of this bill, DLC notes, in part:

DLC's statutorily-authorized relationship with the DMV has allowed individuals the ability and convenience of signing up for the organ and tissue donor registry on the DL-44 since 2006.  To date, over 18.5 million individuals have expressed their intent to donate with the Registry, with over 98% of those coming through the doors of the DMV. While this growth of the Registry has been successful, by population California is still below the national average for registered donors at only 49%, compared to the 54% national average. The Registry continues to be of vital importance as over 104,000 individuals across the country are waiting for lifesaving transplants, and 17 individuals die each day without a transplant. AB 1268 provides additional opportunities to sign Californians up to be life-saving organ and tissue donors.

Arguments in Opposition

None on file.

FISCAL COMMENTS

According to the Assembly Appropriations Committee:

Minor and absorbable costs to FTB to revise the relevant tax return forms and enter into an MOU with DLC.

DLC currently works with the Department of Motor Vehicles (DMV) to enroll license applicants in the organization's organ and tissue donor registry. The language used on DMV's applications takes up almost half a page of the form, and the agreed upon language with FTB will likely be similar. However, FTB notes its impacted Form 540 and Form 540NR are currently five pages, but printed double-sided, so adding an extra page to the form to accommodate the new language will not result in significant costs. FTB notes its impacted Form 540 2EZ currently has enough extra space to accommodate the language without adding a new page. Additionally, 90% of personal income tax forms are filed electronically.

VOTES:

ASM REVENUE AND TAXATION: 10-0-1

YES: Irwin, Wallis, Bains, Grayson, Pacheco, Petrie-Norris, Luz Rivas, Ta, Valencia, Zbur

ABS, ABST OR NV: Jim Patterson

ASM APPROPRIATIONS: 16-0-0

YES: Holden, Megan Dahle, Bryan, Calderon, Wendy Carrillo, Dixon, Mike Fong, Hart, Lowenthal, Mathis, Papan, Pellerin, Robert Rivas, Sanchez, Weber, Wilson

ASSEMBLY FLOOR: 75-0-5

YES: Addis, Aguiar-Curry, Alanis, Alvarez, Arambula, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Juan Carrillo, Wendy Carrillo, Cervantes, Chen, Connolly, Megan Dahle, Davies, Dixon, Essayli, Mike Fong, Vince Fong, Friedman, Gabriel, Gallagher, Garcia, Gipson, Grayson, Haney, Hart, Holden, Hoover, Irwin, Jackson, Jones-Sawyer, Kalra, Lackey, Lee, Low, Lowenthal, Maienschein, Mathis, McCarty, Stephanie Nguyen, Ortega, Pacheco, Papan, Jim Patterson, Joe Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Reyes, Luz Rivas, Robert Rivas, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Soria, Ta, Ting, Valencia, Villapudua, Waldron, Ward, Weber, Wilson, Wood, Zbur, Rendon

ABS, ABST OR NV: Flora, McKinnor, Muratsuchi, Wallis, Wicks

SENATE FLOOR: 39-0-1

YES: Allen, Alvarado-Gil, Archuleta, Ashby, Atkins, Becker, Blakespear, Bradford, Caballero, Cortese, Dahle, Dodd, Durazo, Eggman, Glazer, Gonzalez, Grove, Hurtado, Jones, Laird, Limón, McGuire, Menjivar, Min, Newman, Nguyen, Niello, Ochoa Bogh, Portantino, Roth, Rubio, Seyarto, Skinner, Smallwood-Cuevas, Stern, Umberg, Wahab, Wiener, Wilk

ABS, ABST OR NV: Padilla

UPDATED

VERSION: May 30, 2023

CONSULTANT: Wesley Whitaker / REV. & TAX. / (916) 319-2098 FN: 0001740

 THIRD READING  

Bill No: AB 1268

Author: Irwin (D)

Amended: 5/30/23 in Senate

Vote: 21

SENATE GOVERNANCE & FIN. COMMITTEE: 8-0, 6/14/23

AYES: Caballero, Seyarto, Blakespear, Dahle, Durazo, Glazer, Skinner, Wiener

SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8

ASSEMBLY FLOOR: 75-0, 5/4/23 (Consent) - See last page for vote

SUBJECT: Franchise Tax Board: returns: organ donor elections and data sharing

SOURCE: Donate Life California

DIGEST:

This bill requires the Franchise Tax Board (FTB) to allow people to enroll in the state’s organ donor and tissue registry by checking a box on the state income tax form.

ANALYSIS:

Existing law:

1. Requires an individual taxable under the Personal Income Tax Law to make a return to the FTB stating specifically the items of the individual’s gross income from all sources and the deductions and credits allowable, as prescribed.
2. Makes it a misdemeanor for the FTB or any member thereof, or any of specified individuals who in the course of their employment or duty has or had access to returns, reports, or documents required to be filed under specified law, to disclose or make known in any manner information as to the amount of income or any particulars set forth or disclosed in those returns, reports, or documents.

This bill:

1. Requires FTB to include a checkbox on the resident income tax return to let individual taxpayers enroll in the Donate Life California Organ and Tissue Donor Registry (Registry) to donate their organs and tissue as of January 1, 2025.
2. Requires FTB to enter into a memorandum of understanding (MOU) with Donate Life California (DLC) to determine how the language that will appear on the tax forms should be written, as well as enter into a data sharing agreement so FTB can electronically send the list of enrollees to DLC beginning January 1, 2026. The data the bill requires the FTB to share with DLC for each enrollee are:
3. Name
4. Address
5. Date of birth
6. Last four digits of their social security number
7. Provides the taxpayer’s written consent to have their information shared with DLC is valid for one year from the date when the taxpayer signed the return.
8. Provides DLC can only use the information it receives from FTB to administer the registry and DLC must add enrollees to the donor registry within 30 days of receiving their information from FTB.

Background

DLC is a private, non-profit entity authorized by the state to operate the Registry. Since 2006, the Department of Motor Vehicles (DMV) has been required to ask people if they would like to become an organ and tissue donor when they apply to get a driver’s license or an identification card. Over 18.5 million Californians have signed up with the Registry with more than 98% of them enrolling at the DMV and the remainder enrolling through the DLC website.

The DMV has entered into a MOU with DLC to both write the language appearing on the DMV’s forms relative to organ donation and to have the DMV electronically transmit the list of enrollees to DLC.

With 18.5 million participants, California’s program is very successful, but on a population basis, the state lags behind the national average participation rate of 54% with only 49% of the state’s eligible residents enrolled in the program.

Part of the reason for the lag may be attributable to the fact that fewer young people are getting their driver’s licenses, meaning they have no reason to interact with the DMV where 98% of the DLC donors sign up with the Registry. A recent Washington Post article found that nationwide in 1997, 43% of 16-year-olds and 62% of 17-year-olds had driver’s licenses. In 2020, those numbers had fallen to 25% and 45%. Aside from the fact that fewer 16-year-olds are getting their driver’s license, because a driver’s license is valid for five years, that means it’s five years from the time when a driver who declined to enroll initially will be asked again by the DMV if they want to become an organ donor.

The FTB is required to provide taxpayers with tax forms that are as simple as possible for them to use and requires it to include a voter registration card with the tax forms sent to California taxpayers.

DLC wants to give Californians additional opportunities to sign up for the Registry given that more than 104,000 people across the country are waiting for lifesaving transplants, and 17 people die each day without a transplant.

Comments

1) Purpose of the bill. According to the author, “Organ and tissue transplants are a miracle of modern science that save thousands of lives each year. In California, approximately 22,000 individuals are currently on the transplant waiting list and have no alternative treatment options. The vast majority of enrollments to the donation registry have come through a partnership with the DMV, which allows applicants for driver's licenses and ID cards to provide Donate Life California with their consent to be added to the registry. Unfortunately, California still lags behind the national average in terms of registered donors. With younger generations becoming less likely to apply for a driver's license, AB 1268 will provide an additional opportunity for individuals to sign-up for the registry through their state personal income tax return filed with FTB. This bill is modeled after the existing DMV program and ensures that taxpayer information shared by FTB with Donate Life California is protected and used appropriately.”

2) The horse may have left the barn, but how far should it be allowed to gallop? Tax forms, like all government forms, are designed to serve a governmental purpose, but this bill proposes to also use the form for the non-governmental – albeit important societal – purpose of allowing people to register as an organ and tissue donor. The tax form already allows people to contribute money to specific non-profit entities and the paper forms mailed to taxpayers include voter registration cards, which may be a governmental purpose but not a tax-related one.

3) How long will the tax forms become? DLC works with DMV to write the language on its forms to enroll driver’s license and identification card applicants in the organization’s organ and tissue donor registry. The language used on DMV’s applications takes up almost half a page of the form, so it is likely the language on the FTB form will be similar in length. FTB notes its impacted Form 540 and Form 540NR are currently five pages, but printed double-sided, so adding an extra page to the form to accommodate the new language will not result in significant costs. FTB notes its impacted Form 540 2EZ currently has enough extra space to accommodate the language without adding a new page.

4) How do Californians file tax returns – and will they see these checkboxes? According to the FTB, in 2022, 20.6 million California personal income tax returns were filed – 1.8 million (8.7%) were filed on paper and 18.8 million (91.3%) were filed electronically. For those filed electronically, 166,360 (0.9%) were filed by people eligible to use the FTB’s CalFile system and more than 18.6 million (99.1%) were filed by people using private, third-party software, such as TurboTax, or professional tax preparers who also filed electronically.

If enacted, those filing paper returns and using FTB’s CalFile system would see the organ donation checkboxes mandated by this bill – roughly 9.7% of all the state’s filers based on the FTB’s data.

The private third-party tax filing software companies are not required by this bill or under current law to include everything found on the state’s paper PIT forms on their electronic forms. However, the language of the bill clearly putting the organ donation section and checkbox on the tax form itself – not in an attachment or addendum – increases the likelihood the private companies will include it in their software and should have enough time to do so prior to the 2025 filing season, when this bill would take effect.

5) Sharing tax return information. State and federal law prohibit the use of information on tax returns for any purpose other than to administer tax laws, unless expressly provided in statute. Improper disclosure of federal tax information is punishable as a felony, and improper disclosure of state tax information is punishable as a misdemeanor.

The FTB currently collects and shares information with departments to help with program administration, such as providing voter registration information to the Secretary of State and facilitating individual requests for health care coverage information from the California Health Benefit Exchange. It also is required to provide each county jury commissioner with a list of taxpayers in their county for the purpose of expanding jury pools.

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No

SUPPORT: (Verified 6/26/23)

Donate Life California (source)

OPPOSITION: (Verified 6/26/23)

None received

ARGUMENTS IN SUPPORT: According to Donate Life California:

DLC saves lives by creating opportunities for all Californians to sign up on the official state organ, eye and tissue donor registry. DLC represents the four federally designated organ recovery organizations (OPOs) in the state of California and is charged with educating the community about the need and importance for people to register their donation wishes.

DLC’s statutorily-authorized relationship with the DMV has allowed individuals the ability and convenience of signing up for the organ and tissue donor registry on the DL-44 since 2006. To date, over 18.5 million individuals have expressed their intent to donate with the Registry, with over 98% of those coming through the doors of the DMV. While this growth of the registry has been successful, by population California is still below the national average for registered donors at only 49%, compared to the 54% national average.

The registry continues to be of vital importance as over 104,000 individuals across the country are waiting for lifesaving transplants, and 17 individuals die each day without a transplant. AB 1268 provides additional opportunities to sign Californians up to be life saving organ and tissue donors.

ASSEMBLY FLOOR: 75-0, 5/4/23

AYES: Addis, Aguiar-Curry, Alanis, Alvarez, Arambula, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Juan Carrillo, Wendy Carrillo, Cervantes, Chen, Connolly, Megan Dahle, Davies, Dixon, Essayli, Mike Fong, Vince Fong, Friedman, Gabriel, Gallagher, Garcia, Gipson, Grayson, Haney, Hart, Holden, Hoover, Irwin, Jackson, Jones-Sawyer, Kalra, Lackey, Lee, Low, Lowenthal, Maienschein, Mathis, McCarty, Stephanie Nguyen, Ortega, Pacheco, Papan, Jim Patterson, Joe Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Reyes, Luz Rivas, Robert Rivas, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Soria, Ta, Ting, Valencia, Villapudua, Waldron, Ward, Weber, Wilson, Wood, Zbur, Rendon

NO VOTE RECORDED: Flora, McKinnor, Muratsuchi, Wallis, Wicks

Prepared by: Evan Goldberg / GOV. & F. / (916) 651-4119

6/28/23 11:05:23

**** END ****

SENATE COMMITTEE ON GOVERNANCE AND FINANCE

Senator Anna M. Caballero, Chair

2023 - 2024 Regular

Franchise Tax Board: returns: organ donor elections and data sharing

Requires the Franchise Tax Board to allow people to enroll in the state’s organ donor and tissue registry by checking a box on the state income tax form.

Background

Donate Life California (DLC) is a private, non-profit entity authorized by the state to operate the Donate Life California Organ and Tissue Donor Registry (Registry). Since 2006, the Department of Motor Vehicles (DMV) has been required to ask people if they would like to become an organ and tissue donor when they apply to get a driver’s license or an identification card. Over 18.5 million Californians have signed up with the Registry with more than 98% of them enrolling at the DMV and the remainder enrolling through the DLC website.

The DMV has entered into a memorandum of understanding (MOU) with DLC to both write the language appearing on the DMV’s forms relative to organ donation and to have the DMV electronically transmit the list of enrollees to DLC.

With 18.5 million participants, California’s program is very successful, but on a population basis, the state lags behind the national average participation rate of 54% with only 49% of the state’s eligible residents enrolled in the program.

Part of the reason for the lag may be attributable to the fact that fewer young people are getting their driver’s licenses, meaning they have no reason to interact with the DMV where 98% of the DLC donors sign up with the Registry. A recent Washington Post article found that nationwide in 1997, 43% of 16-year-olds and 62% of 17-year-olds had driver’s licenses. In 2020, those numbers had fallen to 25% and 45%. Aside from the fact that fewer 16-year-olds are getting their driver’s license, because a driver’s license is valid for five years, that means it’s five years from the time when a driver who declined to enroll initially will be asked again by the DMV if they want to become an organ donor.

The Franchise Tax Board (FTB) is required to provide taxpayers with tax forms that are as simple as possible for them to use and requires it to include a voter registration card with the tax forms sent to California taxpayers.

DLC wants to give Californians additional opportunities to sign up for the Registry given that more than 104,000 people across the country are waiting for lifesaving transplants, and 17 people die each day without a transplant.

Proposed Law

Assembly Bill 1268 requires FTB to include a checkbox on the resident income tax return to let individual taxpayers enroll in the Registry to donate their organs and tissue as of January 1, 2025.

FTB must enter into an MOU with DLC to determine how the language that will appear on the tax forms should be written, as well as enter into a data sharing agreement so FTB can electronically send the list of enrollees to DLC beginning January 1, 2026. The data the bill requires the FTB to share with DLC for each enrollee are:

• Name
• Address
• Date of birth
• Last four digits of their social security number

The taxpayer’s written consent to have their information shared with DLC is valid for one year from the date when the taxpayer signed the return.

The bill states DLC can only use the information it receives from FTB to administer the registry and DLC must add enrollees to the donor registry within 30 days of receiving their information from FTB.

State Revenue Impact

According to the Assembly Appropriations Committee, there should be minor and absorbable costs to FTB to revise the relevant tax return forms and enter into an MOU with DLC.

Comments

1. Purpose of the bill. According to the author, “Organ and tissue transplants are a miracle of modern science that save thousands of lives each year. In California, approximately 22,000 individuals are currently on the transplant waiting list and have no alternative treatment options. The vast majority of enrollments to the donation registry have come through a partnership with the DMV, which allows applicants for driver's licenses and ID cards to provide Donate Life California with their consent to be added to the registry. Unfortunately, California still lags behind the national average in terms of registered donors. With younger generations becoming less likely to apply for a driver's license, AB 1268 will provide an additional opportunity for individuals to sign-up for the registry through their state personal income tax return filed with FTB. This bill is modeled after the existing DMV program and ensures that taxpayer information shared by FTB with Donate Life California is protected and used appropriately.”

2. The horse may have left the barn, but how far should it be allowed to gallop? Tax forms, like all government forms, are designed to serve a governmental purpose, but this bill proposes to also use the form for the non-governmental – albeit important societal – purpose of allowing people to register as an organ and tissue donor. The tax form already allows people to contribute money to specific non-profit entities and the paper forms mailed to taxpayers include voter registration cards, which may be a governmental purpose but not a tax-related one. The Committee may wish to consider the extent to which tax forms should be allowed to be used for non-tax or non-governmental purposes.

3. How long will the tax forms become? DLC works with DMV to write the language on its forms to enroll driver’s license and identification card applicants in the organization’s organ and tissue donor registry. The language used on DMV’s applications takes up almost half a page of the form, so it is likely the language on the FTB form will be similar in length. FTB notes its impacted Form 540 and Form 540NR are currently five pages, but printed double-sided, so adding an extra page to the form to accommodate the new language will not result in significant costs. FTB notes its impacted Form 540 2EZ currently has enough extra space to accommodate the language without adding a new page.

4. How do Californians file tax returns – and will they see these checkboxes? According to the FTB, in 2022, 20.6 million California personal income tax returns were filed – 1.8 million (8.7%) were filed on paper and 18.8 million (91.3%) were filed electronically. For those filed electronically, 166,360 (0.9%) were filed by people eligible to use the FTB’s CalFile system and more than 18.6 million (99.1%) were filed by people using private, third-party software, such as TurboTax, or professional tax preparers who also filed electronically.

If enacted, those filing paper returns and using FTB’s CalFile system would see the organ donation checkboxes mandated by this bill – roughly 9.7% of all the state’s filers based on the FTB’s data.

The private third-party tax filing software companies are not required by this bill or under current law to include everything found on the state’s paper PIT forms on their electronic forms. However, the language of the bill clearly putting the organ donation section and checkbox on the tax form itself – not in an attachment or addendum – increases the likelihood the private companies will include it in their software and should have enough time to do so prior to the 2025 filing season, when this bill would take effect.

5. Sharing tax return information. State and federal law prohibit the use of information on tax returns for any purpose other than to administer tax laws, unless expressly provided in statute. Improper disclosure of federal tax information is punishable as a felony, and improper disclosure of state tax information is punishable as a misdemeanor.

The FTB currently collects and shares information with departments to help with program administration, such as providing voter registration information to the Secretary of State and facilitating individual requests for health care coverage information from the California Health Benefit Exchange. It also is required to provide each county jury commissioner with a list of taxpayers in their county for the purpose of expanding jury pools.

Assembly Actions

Assembly Revenue & Taxation Committee: 10-0

Assembly Appropriations Committee: 16-0

Assembly Floor: 75-0

Support and Opposition

(6/9/23)

Support: Donate Life California (Sponsor)

Opposition: None received.

-- END --

Date of Hearing: April 26, 2023

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Chris Holden, Chair

ABPCA Bill Id:AB 1268

Author:(Irwin) – As Amended Ver:March 27, 2023

Urgency: No State Mandated Local Program: No Reimbursable: No

SUMMARY:

This bill requires, for taxable years beginning January 1, 2025, the Franchise Tax Board (FTB) to include a checkbox on the resident income tax return allowing a taxpayer to provide written consent for Donate Life California (DLC) to enroll the taxpayer in the organization’s organ and tissue donor registry.

FTB must enter into a memorandum of understanding (MOU) with DLC agreeing upon the language used on the return. By January 1, 2025, FTB and DLC must enter into a data sharing agreement, and beginning January 1, 2026, FTB must annually send specified identifying taxpayer information to DLC. DLC can use this information only to administer the registry and must add consenting individuals to the donor registry within 30 days of receiving their information from FTB.

FISCAL EFFECT:

Minor and absorbable costs to FTB to revise the relevant tax return forms and enter into an MOU with DLC.

DLC currently works with the Department of Motor Vehicles (DMV) to enroll license applicants in the organization’s organ and tissue donor registry. The language used on DMV’s applications takes up almost half a page of the form, and the agreed upon language with FTB will likely be similar. However, FTB notes its impacted Form 540 and Form 540NR are currently five pages, but printed double-sided, so adding an extra page to the form to accommodate the new language will not result in significant costs. FTB notes its impacted Form 540 2EZ currently has enough extra space to accommodate the language without adding a new page. Additionally, 90% of personal income tax forms are filed electronically.

COMMENTS:

1. Purpose. According to the author:

The vast majority of enrollments to the [organ and tissue] donation registry have come through a partnership with the [Department of Motor Vehicles], which allows applicants for driver’s licenses and [identification] cards to provide [DLC] with their consent to be added to the registry. Unfortunately, California still lags behind the national average in terms of registered donors. With younger generations becoming less likely to apply for a driver’s license, AB 1268 will provide an additional opportunity for individuals to sign-up for the registry through their state personal income tax return filed with FTB.

This bill is sponsored by DLC.

1. Tax Return Information. Federal and state laws maintain the confidentiality of taxpayer return information and prohibit the use of such data for purposes other than administration of tax laws, unless expressly permitted in statute. Accordingly, FTB is currently authorized to collect and share taxpayer information with various state departments to assist in program administration, such as providing voter registration information to the Secretary of State and facilitating individual requests for healthcare coverage information by the California Health Benefit Exchange. Additionally, SB 592 (Wiener), Chapter 230, Statutes of 2020, requires FTB to annually furnish a list of resident state tax filers to the jury commissioner of each county for selection of jurors.

This bill requires FTB to collect information from taxpayers wishing to enroll as an organ or tissue donor. While this bill is modeled off existing law requiring collection of such information on applications for driver’s licenses and identification cards at the DMV, taxpayer information is not generally used for non-governmental purposes.

Analysis Prepared by: Irene Ho / APPR. / (916) 319-2081

Date of Hearing: April 10, 2023

ASSEMBLY COMMITTEE ON REVENUE AND TAXATION

Jacqui Irwin, Chair

ABPCA Bill Id:AB 1268 (

Author:Irwin) – As Amended Ver:March 27, 2023

Majority vote. Fiscal committee.

SUBJECT: Franchise Tax Board: returns: organ donor elections and data sharing

SUMMARY: Requires the Franchise Tax Board (FTB) to include a checkbox on resident income tax returns for purposes of allowing taxpayers to enroll in the "Donate Life California Organ and Tissue Donor Registry" (Registry), as specified. Specifically, this bill:

1. Defines the "Donate Life California Organ and Tissue Donor Registry" as the registry established pursuant to Health & Safety Code (H&SC) Section 7150.90.
2. Defines "Donate Life California" (DLC) as the nonprofit organization established and designated as the California Organ and Tissue Donor Registrar, pursuant to H&SC Section 7150.90.
3. Requires, for taxable years beginning on or after January 1, 2025, the FTB to include a checkbox on resident income tax returns that allows taxpayers to provide written consent for DLC to enroll the taxpayer in the Registry and authorizes the FTB to share a consenting taxpayer's information with DLC for purposes of administering the Registry.
4. Provides that the taxpayer's written consent to have their information shared with DLC shall be valid for one year.
5. Requires the FTB to enter into a memorandum of understanding (MOU) with the Registry for purposes of mutually agreeing on the language to be used on the returns.
6. Requires the FTB, commencing January 1, 2026, to annually provide to DLC all of the following information from every resident income tax return that provides the taxpayer's written consent to enroll in the Registry:
7. The individual's name;
8. The individual's address;
9. The individual's date of birth; and,
10. The last four digits of the individual's social security number.
11. Prohibits DLC from using the information received from the FTB for purposes other than administering the Registry.
12. Requires DLC to enroll consenting individuals to the Registry within 30 days of receiving the individual's information from the FTB.
13. Requires, by January 1, 2025, the FTB and DLC to enter into a data sharing agreement to facilitate additions to the Registry.

EXISTING LAW:

1. Requires the FTB to make available to taxpayers tax forms that are as simple as possible for taxpayers to prepare. These forms shall be designed to provide for taxpayers to copy figures from, or attach a copy of, their federal return or portions thereof, or both, and to make any necessary adjustments. (Revenue & Taxation Code (R&TC) Section 19582.)
2. Requires the FTB to include a voter registration card with the Personal Income Tax filing forms that are mailed annually to California taxpayers. (R&TC Section 19584.)
3. Provides that, except as otherwise provided, it is a misdemeanor for the FTB, or any member thereof, or any deputy, agent, clerk, or other officer or employee of the state, including its political subdivisions, or a jury commissioner, or any former officer or employee or other individual, who in the course of their employment or duty has or had access to returns, reports, or documents required to be filed, to disclose or make known in any manner information as to the amount of income or any particulars, including the business affairs of a corporation, set forth or disclosed therein. (R&TC Section 19542.)
4. Requires the FTB to annually furnish the jury commissioner of each county with a list of resident state tax filers, as defined in the Code of Civil Procedure Section 197, for the purpose of expanding jury pools. (R&TC Section 19548.4.)
5. Establishes the Registry and designates DLC as the entity responsible for maintaining the Registry. (H&SC Section 7150.90.)
6. Requires written and electronic applications for driver's licenses and identification cards to contain a space for the applicant to enroll in the Registry, requires the Department of Motor Vehicles (DMV) to enter into an MOU with the Registry for purposes of mutually agreeing on the language to be used on the applications, and requires the DMV to electronically transmit information of enrollees to DLC. (Vehicle Code Section 12811.3.)

FISCAL EFFECT: The FTB estimates that this bill would not impact state income or franchise tax revenue.

COMMENTS:

1. The author has provided the following statement in support of this bill:

Organ and tissue transplants are a miracle of modern science that save thousands of lives each year.  In California, approximately 22,000 individuals are currently on the transplant waiting list and have no alternative treatment options.  The vast majority of enrollments to the donation registry have come through a partnership with the DMV, which allows applicants for driver's licenses and ID cards to provide Donate Life California with their consent to be added to the registry.  Unfortunately, California still lags behind the national average in terms of registered donors.  With younger generations becoming less likely to apply for a driver's license, AB 1268 will provide an additional opportunity for individuals to sign-up for the registry through their state personal income tax return filed with FTB.  This bill is modeled after the existing DMV program and ensures that taxpayer information shared by FTB with Donate Life California is protected and used appropriately.

1. In support of this bill, DLC notes, in part:

DLC's statutorily-authorized relationship with the DMV has allowed individuals the ability and convenience of signing up for the organ and tissue donor registry on the DL-44 since 2006.  To date, over 18.5 million individuals have expressed their intent to donate with the Registry, with over 98% of those coming through the doors of the DMV.  While this growth of the Registry has been successful, by population California is still below the national average for registered donors at only 49%, compared to the 54% national average. The Registry continues to be of vital importance as over 104,000 individuals across the country are waiting for lifesaving transplants, and 17 individuals die each day without a transplant. AB 1268 provides additional opportunities to sign Californians up to be life-saving organ and tissue donors.

1. Committee Staff Comments:
2. History of organ and tissue donor registry: DLC is the state-authorized nonprofit organization responsible for managing the organ, eye, and tissue donor registry in California. DLC represents the four federally designated organ recovery organizations in the state of California and is charged with educating the community about the need and importance for people to register their donation wishes. Since 2006, DLC has partnered with the DMV to help register Californians for the Registry through the inclusion of a question on the applications for a driver's license or identification card. This partnership has built the largest organ and tissue donor registry in the country, with over 18.5 million registered donors. Over 98% of these donors signed up at the DMV.
   
3. How organ donations save lives: One tissue donor – someone who can donate bone, tendons, cartilage, connective tissue, skin, corneas, sclera, and heart valves and vessels — can impact the lives of as many as 75 people. Although almost 170 million people are registered to be donors nationwide, only three in 1,000 people die in a way that allows for deceased organ donation.^[1] Organs are allocated according to medical need, blood and tissue type, height and weight. Celebrity status and wealth are not considered. It is against federal law to sell organs and tissues. Before organ and tissue donation can be considered, two doctors not involved in organ and tissue donation must declare a patient brain dead and there is no cost to the donor or their family.
   
4. What problem is this bill trying to solve? Nationally, there are more than 100,000 people awaiting transplantation and 150 people are added, on average, to the waiting list every day. In California, approximately 22,000 individuals are waiting for an organ transplant, which is their only remaining medical option. As noted by DLC in their letter of support for this measure, California lags behind the national average with only 49% of its population designated as registered donors, compared to 54% nationwide. The Washington Post, using data from the Federal Highway Administration, has found that the share of young Americans who have driver's licenses has fallen since 1997 by 18%:

1. Using information on tax returns for non-tax purposes: The information contained on taxpayer returns is confidential and both state and federal law prohibit the use of this kind of data for purposes other than the administration of tax laws, unless expressly provided in statute. Improper disclosure of federal tax information is punishable as a felony, and improper disclosure of state tax information is punishable as a misdemeanor. Accordingly, appropriate safeguards must be in place to ensure the security of taxpayer data. The FTB currently collects and shares information with departments to assist with program administration, such as providing voter registration information to the Secretary of State and facilitating individual requests for health care coverage information from the California Health Benefit Exchange. Another recent example of taxpayer information being used to further public policy objectives outside of the administration of tax law is the use of tax returns to expand the pool of eligible individuals to serve on juries [SB 592 (Wiener), Chapter 230, Statutes of 2020].
   
2. Implementation considerations:
3. Definition of taxpayer: As currently drafted, this bill uses the term "taxpayer", which includes any individual, fiduciary, estate, or trust. The author's office is working with the FTB on amendments that replace references to "taxpayer" with the term "individual", which R&TC Section 17005 defines as a natural person.
   
4. Married couples filing joint returns: As currently drafted, this bill does not distinguish between taxpayers filing as individuals and taxpayers who are married filing a joint return. The author's office is working with the FTB on amendments that will clarify how this proposal would impact taxpayers filing joint returns.

REGISTERED SUPPORT / OPPOSITION:

Support

Donate Life California

Opposition

None on file

Analysis Prepared by: Wesley Whitaker / REV. & TAX. / (916) 319-2098

1. "Quick Facts About Organ Donation." University of Pennsylvania School of Medicine. March 21, 2023. https://www.pennmedicine.org/updates/blogs/transplant-update/2023/april/6-quick-facts-about-organ-donation. ↑