AB 511: Personal income taxes: voluntary contributions: California ALS Research Network Voluntary Tax Contribution Fund.
- Session Year: 2023-2024
- House: Assembly
- Latest Version Date: 2023-09-30
Current Status:
Passed
(2023-09-30: Chaptered by Secretary of State - Chapter 265, Statutes of 2023.)
Introduced
In Committee
First Chamber
In Committee
Second Chamber
Enacted
What does this bill do?
The bill creates the California ALS Research Network Voluntary Tax Contribution Fund so taxpayers can designate $1 or more on their personal income tax return to support ALS research and care in California. Money in the fund will reimburse the Franchise Tax Board, the state Controller, and the State Department of Public Health for administrative costs, and then be given to the ALS Association Golden West Chapter to fund research grants and activities to improve prevention, diagnosis, treatment, and cure of ALS; the chapter may not use the funds for its own administrative expenses. The chapter must report annually to the department on how the money was spent and the department will publish that information online.
The summary is provided by generative AI which can make mistakes. For original language, please view the details in the table below.
Existing law authorizes an individual to contribute amounts in excess of personal income tax liability for the support of specified funds, including, for specified taxable years beginning on or after January 1, 2008, and before January 1, 2013, an ALS/Lou Gehrigs Disease Research Fund to provide research grants to develop and advance the understanding, techniques, and modalities effective in the prevention, treatment, and cure of ALS.
Existing law specifies general administrative provisions applicable to these voluntary contributions, which, among other things, provide for the disbursement of contributions following the repeal of the fund provisions and require undesignated funds to be transferred to the General Fund. Existing law requires any new or extended voluntary contribution to include the words voluntary tax contribution in the name of the fund, to require the administering agency to include specified information about the fund on its internet website, to continuously appropriate from the fund the contributions made to the administering agency, and to set a minimum contribution amount for the continuation of any voluntary tax contribution fund provisions on the tax return form and a generally applicable repeal date for voluntary tax contribution provisions.
This bill would allow an individual to designate on their tax return that a specified amount in excess of the taxpayers personal income tax liability be transferred to the California ALS Research Network Voluntary Tax Contribution Fund. The bill would continuously appropriate the fund to the Franchise Tax Board, the Controller, and the State Department of Public Health for administrative costs and to the State Department of Public Health for disbursement to the Amyotrophic Lateral Sclerosis Association Golden West Chapter to support the work of their California ALS Research Network in an effort to develop and advance the understanding, techniques, and modalities effective in the prevention, treatment, and cure of ALS. The bill would repeal these provisions on December 1, 2031, or on December 1 of the year that the minimum contribution amount of $250,000 is not met, as specified. By continuously appropriating these funds, the bill would make an appropriation.
Existing law authorizes an individual to contribute amounts in excess of personal income tax liability for the support of specified funds, including, for specified taxable years beginning on or after January 1, 2008, and before January 1, 2013, an ALS/Lou Gehrigs Disease Research Fund to provide research grants to develop and advance the understanding, techniques, and modalities effective in the prevention, treatment, and cure of ALS.
Existing law specifies general administrative provisions applicable to these voluntary contributions, which, among other things, provide for the disbursement of contributions following the repeal of the fund provisions and require undesignated funds to be transferred to the General Fund. Existing law requires any new or extended voluntary contribution to include the words voluntary tax contribution in the name of the fund, to require the administering agency to include specified information about the fund on its internet website, to continuously appropriate from the fund the contributions made to the administering agency, and to set a minimum contribution amount for the continuation of any voluntary tax contribution fund provisions on the tax return form and a generally applicable repeal date for voluntary tax contribution provisions.
This bill would allow an individual to designate on their tax return that a specified amount in excess of the taxpayers personal income tax liability be transferred to the California ALS Research Network Voluntary Tax Contribution Fund. The bill would continuously appropriate the fund to the Franchise Tax Board, the Controller, and the State Department of Public Health for administrative costs and to the State Department of Public Health for disbursement to the Amyotrophic Lateral Sclerosis Association Golden West Chapter to support the work of their California ALS Research Network in an effort to develop and advance the understanding, techniques, and modalities effective in the prevention, treatment, and cure of ALS. The bill would repeal these provisions on December 1, 2031, or on December 1 of the year that the minimum contribution amount of $250,000 is not met, as specified. By continuously appropriating these funds, the bill would make an appropriation.
Existing law authorizes an individual to contribute amounts in excess of personal income tax liability for the support of specified funds, including, for specified taxable years beginning on or after January 1, 2008, and before January 1, 2013, an ALS/Lou Gehrigs Disease Research Fund to provide research grants to develop and advance the understanding, techniques, and modalities effective in the prevention, treatment, and cure of ALS.
Existing law specifies general administrative provisions applicable to these voluntary contributions, which, among other things, provide for the disbursement of contributions following the repeal of the fund provisions and require undesignated funds to be transferred to the General Fund. Existing law requires any new or extended voluntary contribution to include the words voluntary tax contribution in the name of the fund, to require the administering agency to include specified information about the fund on its internet website, to continuously appropriate from the fund the contributions made to the administering agency, and to set a minimum contribution amount for the continuation of any voluntary tax contribution fund provisions on the tax return form and a generally applicable repeal date for voluntary tax contribution provisions.
This bill would allow an individual to designate on their tax return that a specified amount in excess of the taxpayers personal income tax liability be transferred to the California ALS Research Network Voluntary Tax Contribution Fund. The bill would continuously appropriate the fund to the Franchise Tax Board, the Controller, and the State Department of Public Health for administrative costs and to the State Department of Public Health for disbursement to the Amyotrophic Lateral Sclerosis Association Golden West Chapter to support the work of their California ALS Research Network in an effort to develop and advance the understanding, techniques, and modalities effective in the prevention, treatment, and cure of ALS. The bill would repeal these provisions on December 1, 2031, or on December 1 of the year that the minimum contribution amount of $250,000 is not met, as specified. By continuously appropriating these funds, the bill would make an appropriation.
Existing law authorizes an individual to contribute amounts in excess of personal income tax liability for the support of specified funds, including, for specified taxable years beginning on or after January 1, 2008, and before January 1, 2013, an ALS/Lou Gehrigs Disease Research Fund to provide research grants to develop and advance the understanding, techniques, and modalities effective in the prevention, treatment, and cure of ALS.
Existing law specifies general administrative provisions applicable to these voluntary contributions, which, among other things, provide for the disbursement of contributions following the repeal of the fund provisions and require undesignated funds to be transferred to the General Fund. Existing law requires any new or extended voluntary contribution to include the words voluntary tax contribution in the name of the fund, to require the administering agency to include specified information about the fund on its internet website, to continuously appropriate from the fund the contributions made to the administering agency, and to set a minimum contribution amount for the continuation of any voluntary tax contribution fund provisions on the tax return form and a generally applicable repeal date for voluntary tax contribution provisions.
This bill would allow an individual to designate on their tax return that a specified amount in excess of the taxpayers personal income tax liability be transferred to the California ALS Research Network Voluntary Tax Contribution Fund. The bill would continuously appropriate the fund to the Franchise Tax Board, the Controller, and the State Department of Public Health for administrative costs and to the State Department of Public Health for disbursement to the Amyotrophic Lateral Sclerosis Association Golden West Chapter to support the work of their California ALS Research Network in an effort to develop and advance the understanding, techniques, and modalities effective in the prevention, treatment, and cure of ALS. The bill would repeal these provisions on December 1, 2028, 2031, or on December 1 of the year that the minimum contribution amount of $250,000 is not met, as specified. By continuously appropriating these funds, the bill would make an appropriation.
Existing law authorizes an individual to contribute amounts in excess of personal income tax liability for the support of specified funds, including, for specified taxable years beginning on or after January 1, 2008, and before January 1, 2013, an ALS/Lou Gehrigs Disease Research Fund to provide research grants to develop and advance the understanding, techniques, and modalities effective in the prevention, treatment, and cure of ALS.
Existing law specifies general administrative provisions applicable to these voluntary contributions, which, among other things, provide for the disbursement of contributions following the repeal of the fund provisions and require undesignated funds to be transferred to the General Fund. Existing law requires any new or extended voluntary contribution to include the words voluntary tax contribution in the name of the fund, to require the administering agency to include specified information about the fund on its internet website, to continuously appropriate from the fund the contributions made to the administering agency, and to set a minimum contribution amount for the continuation of any voluntary tax contribution fund provisions on the tax return form and a generally applicable repeal date for voluntary tax contribution provisions.
This bill would allow an individual to designate on their tax return that a specified amount in excess of the taxpayers personal income tax liability be transferred to the California ALS Research Network Voluntary Tax Contribution Fund. The bill would continuously appropriate the fund to the Franchise Tax Board, the Controller, and the State Department of Public Health for administrative costs and to the State Department of Public Health for disbursement to the Amyotrophic Lateral Sclerosis Association Golden West Chapter to support the work of their California ALS Research Network in an effort to develop and advance the understanding, techniques, and modalities effective in the prevention, treatment, and cure of ALS. The bill would repeal these provisions on December 1, 2028, or on December 1 of the year that the minimum contribution amount of $250,000 is not met, as specified. By continuously appropriating these funds, the bill would make an appropriation.
Existing law authorizes an individual to designate on their personal income tax return that a specified amount in excess of their tax liability be transferred to various funds, and provides requirements relating to the placement of the funds on the tax return form and the effect of these provisions that govern the voluntary contributions.This bill would make nonsubstantive changes to this provision.Existing law authorizes an individual to designate on their personal income tax return that a specified amount in excess of their tax liability be transferred to various funds, and provides requirements relating to the placement of the funds on the tax return form and the effect of these provisions that govern the voluntary contributions.
This bill would make nonsubstantive changes to this provision.
The Legislature finds and declares all of the following:
(a)Amyotrophic lateral sclerosis (ALS), more commonly known as Lou Gehrigs disease, is a degenerative disease of the motor nerves that causes progressive weakness of all voluntary muscles. People with ALS become unable to move, swallow, speak, and breathe without assistance, usually remaining fully aware of what is happening to them and their families.
(b)ALS is a fatal disease. There is no cure and only a few drug therapies, none of which allow for meaningful life extension. Most ALS patients die within two to five years of symptom onset. Every 90 minutes someone is diagnosed with ALS, and every 90 minutes someone dies of the disease. ALS knows no racial, ethnic, or socioeconomic boundaries, often striking people at midlife and at the height of family, career, and financial responsibilities.
(c)The devastating physical, emotional, and financial effects caused by the progression of ALS and the 24-hour, seven-day-a-week caregiving required impact not only the patient, but the entire family. ALS is a family disease, and the need for a coordinated effort on the part of the research and clinical care community in California is essential.
(d)It is the intent of the Legislature, in enacting this article, to establish a systematic program to bring together Californias academic, clinical, and scientific infrastructure to advance our collective understanding of the causes, cures, and prevention of ALS. The outcome of this collaboration may have direct effects and consequences on the development of a comprehensive system that may identify the causes, cures, and prevention of ALS, as well as improving the screening, diagnosis, and treatment of victims of ALS. This program shall underwrite the costs of bringing together Californias physicians, hospitals, laboratories, educational institutions, and other organizations and persons for the purpose of enabling organizations and persons to advance ideas and activities that will better our understanding of ALS clinical care and explore opportunities that science can play in the diagnosis, treatment, and prevention of ALS.
18882.(a)For taxable years beginning on or after January 1, 2024, and before January 1, 2031, an individual may designate on the tax return that a contribution in excess of the personal income tax liability, if any, be made to the California ALS Research Network Voluntary Tax Contribution Fund established in Section 18883. That designation is to 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 shall be made for any taxable year on the original return for that taxable year and once made is irrevocable. If payments and credits reported on the return, together with any other credits associated with the taxpayers account, do not exceed the taxpayers liability, the return shall be treated as though no designation has been made.
(d)The Franchise Tax Board shall revise the form of the return to include a space labeled the California ALS Research Network Voluntary Tax Contribution Fund to allow for the designation permitted. 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 support the collaboration of clinicians, scientists, and academic and industry research organizations relating to the cure, screening, and treatment of ALS.
(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).
18883.There is hereby established in the State Treasury the California ALS Research Network Voluntary Tax Contribution Fund to receive contributions made pursuant to Section 18882. 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 18882 to be transferred to the California ALS Research Network Voluntary Tax Contribution Fund. The Controller shall transfer from the Personal Income Tax Fund to the California ALS Research Network Voluntary Tax Contribution Fund an amount not in excess of the sum of the amounts designated by individuals pursuant to Section 18882 for payment into that fund.
18884.(a)Notwithstanding Section 13340 of the Government Code, all money transferred to the California ALS Research Network Voluntary Tax Contribution Fund shall be continuously appropriated and allocated as follows:
(1)To the Franchise Tax Board, the Controller, and the State Department of Public Health for reimbursement of all costs incurred by the Franchise Tax Board, the Controller, and the State Department of Public Health in connection with their duties under this article.
(2)(A)To the State Department of Public Health, for disbursement to the Amyotrophic Lateral Sclerosis Association Golden West Chapter, a California based nonprofit organization exempt from taxation under Section 501(c)(3) of the Internal Revenue Code, to support the work of their California ALS Research Network in an effort to develop and advance the understanding, techniques, and modalities effective in the prevention, treatment, and cure of ALS.
(B)The Amyotrophic Lateral Sclerosis Association Golden West Chapter shall not use moneys received pursuant to this article for administrative purposes.
(b)On or before January 1, 2025, and annually thereafter, the Amyotrophic Lateral Sclerosis Association Golden West Chapter shall provide to the State Department of Public Health information on how moneys received pursuant to this article were spent, including an itemization of how program funds were awarded, such as to specific research grants, projects, and events, and the department shall report that information on its internet website.
18885.(a)Except as otherwise provided in subdivision (b), this article shall remain in effect only until December 1, 2031, and as of that date is repealed.
(b)(1)By September 1 of the second calendar year and each subsequent calendar year that the California ALS Research Network Voluntary Tax Contribution Fund appears on the tax return, the Franchise Tax Board shall determine whether the amount of contributions estimated to be received during the calendar year will equal or exceed the minimum contribution amount for the calendar year. 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, and shall provide written notification of those estimates to the State Department of Public Health.
(2)If the Franchise Tax Board determines that the amount of contributions estimated to be received during a calendar year will not at least equal the minimum contribution amount for the calendar year, this article 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).
The Legislature finds and declares all of the following:
(a)Amyotrophic lateral sclerosis (ALS), more commonly known as Lou Gehrigs disease, is a degenerative disease of the motor nerves that causes progressive weakness of all voluntary muscles. People with ALS become unable to move, swallow, speak, and breathe without assistance, usually remaining fully aware of what is happening to them and their families.
(b)ALS is a fatal disease. There is no cure and only a few drug therapies, none of which allow for meaningful life extension. Most ALS patients die within two to five years of symptom onset. Every 90 minutes someone is diagnosed with ALS, and every 90 minutes someone dies of the disease. ALS knows no racial, ethnic, or socioeconomic boundaries, often striking people at midlife and at the height of family, career, and financial responsibilities.
(c)The devastating physical, emotional, and financial effects caused by the progression of ALS and the 24-hour, seven-day-a-week caregiving required impact not only the patient, but the entire family. ALS is a family disease, and the need for a coordinated effort on the part of the research and clinical care community in California is essential.
(d)It is the intent of the Legislature, in enacting this article, to establish a systematic program to bring together Californias academic, clinical, and scientific infrastructure to advance our collective understanding of the causes, cures, and prevention of ALS. The outcome of this collaboration may have direct effects and consequences on the development of a comprehensive system that may identify the causes, cures, and prevention of ALS, as well as improving the screening, diagnosis, and treatment of victims of ALS. This program shall underwrite the costs of bringing together Californias physicians, hospitals, laboratories, educational institutions, and other organizations and persons for the purpose of enabling organizations and persons to advance ideas and activities that will better our understanding of ALS clinical care and explore opportunities that science can play in the diagnosis, treatment, and prevention of ALS.
18882.(a)For taxable years beginning on or after January 1, 2024, and before January 1, 2031, an individual may designate on the tax return that a contribution in excess of the personal income tax liability, if any, be made to the California ALS Research Network Voluntary Tax Contribution Fund established in Section 18883. That designation is to 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 shall be made for any taxable year on the original return for that taxable year and once made is irrevocable. If payments and credits reported on the return, together with any other credits associated with the taxpayers account, do not exceed the taxpayers liability, the return shall be treated as though no designation has been made.
(d)The Franchise Tax Board shall revise the form of the return to include a space labeled the California ALS Research Network Voluntary Tax Contribution Fund to allow for the designation permitted. 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 support the collaboration of clinicians, scientists, and academic and industry research organizations relating to the cure, screening, and treatment of ALS.
(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).
18883.There is hereby established in the State Treasury the California ALS Research Network Voluntary Tax Contribution Fund to receive contributions made pursuant to Section 18882. 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 18882 to be transferred to the California ALS Research Network Voluntary Tax Contribution Fund. The Controller shall transfer from the Personal Income Tax Fund to the California ALS Research Network Voluntary Tax Contribution Fund an amount not in excess of the sum of the amounts designated by individuals pursuant to Section 18882 for payment into that fund.
18884.(a)Notwithstanding Section 13340 of the Government Code, all money transferred to the California ALS Research Network Voluntary Tax Contribution Fund shall be continuously appropriated and allocated as follows:
(1)To the Franchise Tax Board, the Controller, and the State Department of Public Health for reimbursement of all costs incurred by the Franchise Tax Board, the Controller, and the State Department of Public Health in connection with their duties under this article.
(2)(A)To the State Department of Public Health, for disbursement to the Amyotrophic Lateral Sclerosis Association Golden West Chapter, a California based nonprofit organization exempt from taxation under Section 501(c)(3) of the Internal Revenue Code, to support the work of their California ALS Research Network in an effort to develop and advance the understanding, techniques, and modalities effective in the prevention, treatment, and cure of ALS.
(B)The Amyotrophic Lateral Sclerosis Association Golden West Chapter shall not use moneys received pursuant to this article for administrative purposes.
(b)On or before January 1, 2025, and annually thereafter, the Amyotrophic Lateral Sclerosis Association Golden West Chapter shall provide to the State Department of Public Health information on how moneys received pursuant to this article were spent, including an itemization of how program funds were awarded, such as to specific research grants, projects, and events, and the department shall report that information on its internet website.
18885.(a)Except as otherwise provided in subdivision (b), this article shall remain in effect only until December 1, 2031, and as of that date is repealed.
(b)(1)By September 1 of the second calendar year and each subsequent calendar year that the California ALS Research Network Voluntary Tax Contribution Fund appears on the tax return, the Franchise Tax Board shall determine whether the amount of contributions estimated to be received during the calendar year will equal or exceed the minimum contribution amount for the calendar year. 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, and shall provide written notification of those estimates to the State Department of Public Health.
(2)If the Franchise Tax Board determines that the amount of contributions estimated to be received during a calendar year will not at least equal the minimum contribution amount for the calendar year, this article 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).
The Legislature finds and declares all of the following:
(a)Amyotrophic lateral sclerosis (ALS), more commonly known as Lou Gehrigs disease, is a degenerative disease of the motor nerves that causes progressive weakness of all voluntary muscles. People with ALS become unable to move, swallow, speak, and breathe without assistance, usually remaining fully aware of what is happening to them and their families.
(b)ALS is a fatal disease. There is no cure and only a few drug therapies, none of which allow for meaningful life extension. Most ALS patients die within two to five years of symptom onset. Every 90 minutes someone is diagnosed with ALS, and every 90 minutes someone dies of the disease. ALS knows no racial, ethnic, or socioeconomic boundaries, often striking people at midlife and at the height of family, career, and financial responsibilities.
(c)The devastating physical, emotional, and financial effects caused by the progression of ALS and the 24-hour, seven-day-a-week caregiving required impact not only the patient, but the entire family. ALS is a family disease, and the need for a coordinated effort on the part of the research and clinical care community in California is essential.
(d)It is the intent of the Legislature, in enacting this article, to establish a systematic program to bring together Californias academic, clinical, and scientific infrastructure to advance our collective understanding of the causes, cures, and prevention of ALS. The outcome of this collaboration may have direct effects and consequences on the development of a comprehensive system that may identify the causes, cures, and prevention of ALS, as well as improving the screening, diagnosis, and treatment of victims of ALS. This program shall underwrite the costs of bringing together Californias physicians, hospitals, laboratories, educational institutions, and other organizations and persons for the purpose of enabling organizations and persons to advance ideas and activities that will better our understanding of ALS clinical care and explore opportunities that science can play in the diagnosis, treatment, and prevention of ALS.
18882.(a)For taxable years beginning on or after January 1, 2024, and before January 1, 2031, an individual may designate on the tax return that a contribution in excess of the personal income tax liability, if any, be made to the California ALS Research Network Voluntary Tax Contribution Fund established by in Section 18883. That designation is to 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 shall be made for any taxable year on the original return for that taxable year and once made is irrevocable. If payments and credits reported on the return, together with any other credits associated with the taxpayers account, do not exceed the taxpayers liability, the return shall be treated as though no designation has been made.
(d)The Franchise Tax Board shall revise the form of the return to include a space labeled the California ALS Research Network Voluntary Tax Contribution Fund to allow for the designation permitted. 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 support the collaboration of clinicians, scientists, and academic and industry research organizations relating to the cure, screening, and treatment of ALS.
(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).
18883.There is hereby established in the State Treasury the California ALS Research Network Voluntary Tax Contribution Fund to receive contributions made pursuant to Section 18882. 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 18882 to be transferred to the California ALS Research Network Voluntary Tax Contribution Fund. The Controller shall transfer from the Personal Income Tax Fund to the California ALS Research Network Voluntary Tax Contribution Fund an amount not in excess of the sum of the amounts designated by individuals pursuant to Section 18882 for payment into that fund.
18884.(a)Notwithstanding Section 13340 of the Government Code, all money transferred to the California ALS Research Network Voluntary Tax Contribution Fund shall be continuously appropriated and allocated as follows:
(a)(1)To the Franchise Tax Board, the Controller, and the State Department of Public Health for reimbursement of all costs incurred by the Franchise Tax Board, the Controller, and the State Department of Public Health in connection with their duties under this article.
(b)(1)(2)(A)To the State Department of Public Health, for disbursement to the Amyotrophic Lateral Sclerosis Association Golden West Chapter, a California based nonprofit organization exempt from taxation under Section 501(c)(3) of the Internal Revenue Code, to support the work of their California ALS Research Network in an effort to develop and advance the understanding, techniques, and modalities effective in the prevention, treatment, and cure of ALS.
(2)(B)The Amyotrophic Lateral Sclerosis Association Golden West Chapter shall not use moneys received pursuant to this article for administrative purposes.
(b)On or before January 1, 2025, and annually thereafter, the Amyotrophic Lateral Sclerosis Association Golden West Chapter shall provide to the State Department of Public Health information on how moneys received pursuant to this article were spent, including an itemization of how program funds were awarded, such as to specific research grants, projects, and events, and the department shall report that information on its internet website.
18885.(a)Except as otherwise provided in subdivision (b), this article shall remain in effect only until December 1, 2031, and as of that date is repealed.
(b)(1)By September 1 of the second calendar year and each subsequent calendar year that the California ALS Research Network Voluntary Tax Contribution Fund appears on the tax return, the Franchise Tax Board shall determine whether the amount of contributions estimated to be received during the calendar year will equal or exceed the minimum contribution amount for the calendar year. 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, and shall provide written notification of those estimates to the State Department of Public Health.
(2)If the Franchise Tax Board determines that the amount of contributions estimated to be received during a calendar year will not at least equal the minimum contribution amount for the calendar year, this article 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).
The Legislature finds and declares all of the following:
(a)Amyotrophic lateral sclerosis (ALS), more commonly known as Lou Gehrigs disease, is a degenerative disease of the motor nerves that causes progressive weakness of all voluntary muscles. People with ALS become unable to move, swallow, speak, and breathe without assistance, usually remaining fully aware of what is happening to them and their families.
(b)ALS is a fatal disease. There is no cure and only a few drug therapies, none of which allow for meaningful life extension. Most ALS patients die within two to five years of symptom onset. Every 90 minutes someone is diagnosed with ALS, and every 90 minutes someone dies of the disease. ALS knows no racial, ethnic, or socioeconomic boundaries, often striking people at midlife and at the height of family, career, and financial responsibilities.
(c)The devastating physical, emotional, and financial effects caused by the progression of ALS and the 24-hour, seven-day-a-week caregiving required impact not only the patient, but the entire family. ALS is a family disease, and the need for a coordinated effort on the part of the research and clinical care community in California is essential.
(d)It is the intent of the Legislature, in enacting this article, to establish a systematic program to bring together Californias academic, clinical, and scientific infrastructure to advance our collective understanding of the causes, cures, and prevention of ALS. The outcome of this collaboration may have direct effects and consequences on the development of a comprehensive system that may identify the causes, cures, and prevention of ALS, as well as improving the screening, diagnosis, and treatment of victims of ALS. This program shall underwrite the costs of bringing together Californias physicians, hospitals, laboratories, educational institutions, and other organizations and persons for the purpose of enabling organizations and persons to advance ideas and activities that will better our understanding of ALS clinical care and explore opportunities that science can play in the diagnosis, treatment, and prevention of ALS.
18882.(a)For taxable years beginning on or after January 1, 2024, and before January 1, 2028, 2031, an individual may designate on the tax return that a contribution in excess of the personal income tax liability, if any, be made to the California ALS Research Network Voluntary Tax Contribution Fund established by Section 18883. That designation is to 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 shall be made for any taxable year on the original return for that taxable year and once made is irrevocable. If payments and credits reported on the return, together with any other credits associated with the taxpayers account, do not exceed the taxpayers liability, the return shall be treated as though no designation has been made.
(d)The Franchise Tax Board shall revise the form of the return to include a space labeled the California ALS Research Network Voluntary Tax Contribution Fund to allow for the designation permitted. 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 support the collaboration of clinicians, scientists, and academic and industry research organizations relating to the cure, screening, and treatment of ALS.
(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).
18883.There is hereby established in the State Treasury the California ALS Research Network Voluntary Tax Contribution Fund to receive contributions made pursuant to Section 18882. 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 18882 to be transferred to the California ALS Research Network Voluntary Tax Contribution Fund. The Controller shall transfer from the Personal Income Tax Fund to the California ALS Research Network Voluntary Tax Contribution Fund an amount not in excess of the sum of the amounts designated by individuals pursuant to Section 18882 for payment into that fund.
18884.(a)Notwithstanding Section 13340 of the Government Code, all money transferred to the California ALS Research Network Voluntary Tax Contribution Fund shall be continuously appropriated and allocated as follows:
(1)
(a)To the Franchise Tax Board, the Controller, and the State Department of Public Health for reimbursement of all costs incurred by the Franchise Tax Board, the Controller, and the State Department of Public Health in connection with their duties under this article.
(2)
(b)(1)To the State Department of Public Health, for disbursement to the Amyotrophic Lateral Sclerosis Association Golden West Chapter, a California based nonprofit organization exempt from taxation under Section 501(c)(3) of the Internal Revenue Code, to support the work of their California ALS Research Network in an effort to develop and advance the understanding, techniques, and modalities effective in the prevention, treatment, and cure of ALS.
(2)The Amyotrophic Lateral Sclerosis Association Golden West Chapter shall not use moneys received pursuant to this article for administrative purposes.
18885.(a)Except as otherwise provided in subdivision (b), this article shall remain in effect only until December 1, 2028, 2031, and as of that date is repealed.
(b)(1)By September 1 of the second calendar year and each subsequent calendar year that the California ALS Research Network Voluntary Tax Contribution Fund appears on the tax return, the Franchise Tax Board shall determine whether the amount of contributions estimated to be received during the calendar year will equal or exceed the minimum contribution amount for the calendar year. 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, and shall provide written notification of those estimates to the State Department of Public Health.
(2)If the Franchise Tax Board determines that the amount of contributions estimated to be received during a calendar year will not at least equal the minimum contribution amount for the calendar year, this article 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).
The Legislature finds and declares all of the following:
(a)Amyotrophic lateral sclerosis (ALS), more commonly known as Lou Gehrigs disease, is a degenerative disease of the motor nerves that causes progressive weakness of all voluntary muscles. People with ALS become unable to move, swallow, speak, and breathe without assistance, usually remaining fully aware of what is happening to them and their families.
(b)ALS is a fatal disease. There is no cure and only a few drug therapies, none of which allow for meaningful life extension. Most ALS patients die within two to five years of symptom onset. Every 90 minutes someone is diagnosed with ALS, and every 90 minutes someone dies of the disease. ALS knows no racial, ethnic, or socioeconomic boundaries, often striking people at midlife and at the height of family, career, and financial responsibilities.
(c)The devastating physical, emotional, and financial effects caused by the progression of ALS and the 24-hour, seven-day-a-week caregiving required impact not only the patient, but the entire family. ALS is a family disease, and the need for a coordinated effort on the part of the research and clinical care community in California is essential.
(d)It is the intent of the Legislature, in enacting this article, to establish a systematic program to bring together Californias academic, clinical, and scientific infrastructure to advance our collective understanding of the causes, cures, and prevention of ALS. The outcome of this collaboration may have direct effects and consequences on the development of a comprehensive system that may identify the causes, cures, and prevention of ALS, as well as improving the screening, diagnosis, and treatment of victims of ALS. This program shall underwrite the costs of bringing together Californias physicians, hospitals, laboratories, educational institutions, and other organizations and persons for the purpose of enabling organizations and persons to advance ideas and activities that will better our understanding of ALS clinical care and explore opportunities that science can play in the diagnosis, treatment, and prevention of ALS.
18882.(a)For taxable years beginning on or after January 1, 2024, and before January 1, 2028, an individual may designate on the tax return that a contribution in excess of the personal income tax liability, if any, be made to the California ALS Research Network Voluntary Tax Contribution Fund established by Section 18883. That designation is to 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 shall be made for any taxable year on the original return for that taxable year and once made is irrevocable. If payments and credits reported on the return, together with any other credits associated with the taxpayers account, do not exceed the taxpayers liability, the return shall be treated as though no designation has been made.
(d)The Franchise Tax Board shall revise the form of the return to include a space labeled the California ALS Research Network Voluntary Tax Contribution Fund to allow for the designation permitted. 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 support the collaboration of clinicians, scientists, and academic and industry research organizations relating to the cure, screening, and treatment of ALS.
(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).
18883.There is hereby established in the State Treasury the California ALS Research Network Voluntary Tax Contribution Fund to receive contributions made pursuant to Section 18882. 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 18882 to be transferred to the California ALS Research Network Voluntary Tax Contribution Fund. The Controller shall transfer from the Personal Income Tax Fund to the California ALS Research Network Voluntary Tax Contribution Fund an amount not in excess of the sum of the amounts designated by individuals pursuant to Section 18882 for payment into that fund.
18884.(a)Notwithstanding Section 13340 of the Government Code, all money transferred to the California ALS Research Network Voluntary Tax Contribution Fund shall be continuously appropriated and allocated as follows:
(1)To the Franchise Tax Board, the Controller, and the State Department of Public Health for reimbursement of all costs incurred by the Franchise Tax Board, the Controller, and the State Department of Public Health in connection with their duties under this article.
(2)To the State Department of Public Health, for disbursement to the Amyotrophic Lateral Sclerosis Association Golden West Chapter, a California based nonprofit organization exempt from taxation under Section 501(c)(3) of the Internal Revenue Code, to support the work of their California ALS Research Network in an effort to develop and advance the understanding, techniques, and modalities effective in the prevention, treatment, and cure of ALS.
18885.(a)Except as otherwise provided in subdivision (b), this article shall remain in effect only until December 1, 2028, and as of that date is repealed.
(b)(1)By September 1 of the second calendar year and each subsequent calendar year that the California ALS Research Network Voluntary Tax Contribution Fund appears on the tax return, the Franchise Tax Board shall determine whether the amount of contributions estimated to be received during the calendar year will equal or exceed the minimum contribution amount for the calendar year. 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, and shall provide written notification of those estimates to the State Department of Public Health.
(2)If the Franchise Tax Board determines that the amount of contributions estimated to be received during a calendar year will not at least equal the minimum contribution amount for the calendar year, this article 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).
SECTION 1.Section 18871 of the Revenue and Taxation Code is amended to read:18871.In implementing this chapter, all of the following requirements shall apply:(a)Unless otherwise specifically required by law, each voluntary contribution fund or account established by this chapter shall be included on the forms of the return through the taxable year immediately preceding the year of repeal of the article establishing that voluntary contribution fund or account.(b)Notwithstanding the repeal of an article of this chapter, the voluntary contribution fund or account specified in that article shall continue in effect until December 31 of the year of the repeal of that article, and any contribution designated pursuant to that article on a timely filed initial return for the taxable year immediately preceding the date of repeal shall be transferred and disbursed, and all costs incurred by the Franchise Tax Board and Controller in connection with the transfer and disbursement of these contribution amounts shall continue to be paid, in accordance with that article as it read immediately prior to its repeal.(c)Unless otherwise specifically required by law, a contribution made to any voluntary contribution fund or account established by this chapter shall be subject to the following provisions:(1)In the event that a designee is not specified, the contribution shall, after reimbursement of the direct actual costs of the Franchise Tax Board for the collection and administration of contributions made under this article, be transferred to the General Fund.(2)In the event an individual designates a contribution to more than one account or fund listed on the tax return, and the amount available is insufficient to satisfy the total amount designated, the contribution shall be allocated among the designees on a pro rata basis.(d)(1)If the number of contingent voluntary contribution designations that are eligible to be added to the tax return for a taxable year is greater than the number of voluntary contribution designations removed, those contingent voluntary contribution designations that are eligible to be added to the tax return shall be added to the tax return in the order of the date of enactment, with the voluntary contribution designation with the earliest date of enactment to be added first.(2)For purposes of this subdivision:(A)A contingent voluntary contribution designation means a voluntary contribution designation authorized under this chapter that may not be added to the tax return until another voluntary contribution designation is removed from the tax form.(B)The date of enactment of a contingent voluntary contribution designation authorized under this chapter shall be the date the act authorizing the contingent voluntary contribution designation was filed with the Secretary of State. In the event that more than one act authorizing a contingent voluntary contribution designation is filed with the Secretary of State on the same date, the act with the lowest chapter number will be conclusively presumed to have been filed with the Secretary of State before any other act authorizing a contingent voluntary contribution designation with a higher number.(e)Notwithstanding subdivision (d), or the contingency language of an act prohibiting the addition of a contingent voluntary contribution designation until another voluntary contribution designation is removed, the Franchise Tax Board may add one or more voluntary contribution designations if the board determines that space is available on the tax return to accommodate the additional voluntary contribution designation.In implementing this chapter, all of the following requirements shall apply:
(a)Unless otherwise specifically required by law, each voluntary contribution fund or account established by this chapter shall be included on the forms of the return through the taxable year immediately preceding the year of repeal of the article establishing that voluntary contribution fund or account.
(b)Notwithstanding the repeal of any an article of this chapter, the voluntary contribution fund or account specified in that article shall continue in effect until December 31 of the year of the repeal of that article, and any contribution designated pursuant to that article on a timely filed initial return for the taxable year immediately preceding the date of repeal shall be transferred and disbursed, and all costs incurred by the Franchise Tax Board and Controller in connection with the transfer and disbursement of these contribution amounts shall continue to be paid, in accordance with that article as it read immediately prior to its repeal.
(c)Unless otherwise specifically required by law, a contribution made to any voluntary contribution fund or account established by this chapter shall be subject to the following provisions:
(1)In the event that no a designee is not specified, the contribution shall, after reimbursement of the direct actual costs of the Franchise Tax Board for the collection and administration of contributions made under this article, be transferred to the General Fund.
(2)In the event an individual designates a contribution to more than one account or fund listed on the tax return, and the amount available is insufficient to satisfy the total amount designated, the contribution shall be allocated among the designees on a pro rata basis.
(d)(1)If the number of contingent voluntary contribution designations that are eligible to be added to the tax return for a taxable year is greater than the number of voluntary contribution designations removed, those contingent voluntary contribution designations that are eligible to be added to the tax return shall be added to the tax return in the order of the date of enactment, with the voluntary contribution designation with the earliest date of enactment to be added first.
(2)For purposes of this subdivision:
(A)A contingent voluntary contribution designation means a voluntary contribution designation authorized under this chapter that may not be added to the tax return until another voluntary contribution designation is removed from the tax form.
(B)The date of enactment of a contingent voluntary contribution designation authorized under this chapter shall be the date the act authorizing the contingent voluntary contribution designation was filed with the Secretary of State. In the event that more than one act authorizing a contingent voluntary contribution designation is filed with the Secretary of State on the same date, the act with the lowest chapter number will be conclusively presumed to have been filed with the Secretary of State before any other act authorizing a contingent voluntary contribution designation with a higher number.
(e)Notwithstanding subdivision (d), or the contingency language of an act prohibiting the addition of a contingent voluntary contribution designation until another voluntary contribution designation is removed, the Franchise Tax Board may add one or more voluntary contribution designations if the board determines that space is available on the tax return to accommodate the additional voluntary contribution designation.
|
Date
|
Status
|
|---|---|
| Sep 30, 2023 | Chaptered by Secretary of State - Chapter 265, Statutes of 2023. |
| Sep 30, 2023 | Approved by the Governor. |
| Sep 5, 2023 | Enrolled and presented to the Governor at 3 p.m. |
| Aug 31, 2023 | Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 79. Noes 0. Page 2857.). |
| Jun 29, 2023 | In Assembly. Concurrence in Senate amendments pending. May be considered on or after July 1 pursuant to Assembly Rule 77. |
| Jun 29, 2023 | Read third time. Passed. Ordered to the Assembly. (Ayes 39. Noes 0. Page 1827.). |
| Jun 27, 2023 | Read second time. Ordered to Consent Calendar. |
| Jun 26, 2023 | From committee: Be ordered to second reading file pursuant to Senate Rule 28.8 and ordered to Consent Calendar. |
| Jun 8, 2023 | Read second time and amended. Re-referred to Com. on APPR. |
| Jun 7, 2023 | From committee: Amend, and do pass as amended and re-refer to Com. on APPR with recommendation: To Consent Calendar. (Ayes 8. Noes 0.) (June 7). |
| May 17, 2023 | Referred to Com. on GOV. & F. |
| May 4, 2023 | In Senate. Read first time. To Com. on RLS. for assignment. |
| May 4, 2023 | Read third time. Passed. Ordered to the Senate. (Ayes 75. Noes 0. Page 1461.) |
| Apr 27, 2023 | Read second time. Ordered to Consent Calendar. |
| Apr 26, 2023 | From committee: Do pass. To Consent Calendar. (Ayes 16. Noes 0.) (April 26). |
| Apr 19, 2023 | Re-referred to Com. on APPR. |
| Apr 18, 2023 | Read second time and amended. |
| Apr 17, 2023 | From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 10. Noes 0.) (April 10). |
| Mar 27, 2023 | Re-referred to Com. on REV. & TAX. |
| Mar 23, 2023 | Referred to Com. on REV. & TAX. |
| Mar 23, 2023 | From committee chair, with author's amendments: Amend, and re-refer to Com. on REV. & TAX. Read second time and amended. |
| Feb 8, 2023 | From printer. May be heard in committee March 10. |
| Feb 7, 2023 | Read first time. To print. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Aug 31, 2023 | AB 511 Dixon Concurrence in Senate Amendments | Assembly Floor |
Passed |
|
| Jun 29, 2023 | Consent Calendar AB511 Dixon et al. | Senate Floor |
Passed |
|
| Jun 7, 2023 | Do pass as amended, but first amend, and re-refer to the Committee on [Appropriations] with the recommendation: To Consent Calendar | Senate Standing Committee on Governance and Finance |
Passed |
|
| May 4, 2023 | AB 511 Dixon Consent Calendar Second Day Regular Session | Assembly Floor |
Passed |
|
| Apr 26, 2023 | Do pass. To Consent Calendar. | Assembly Standing Committee on Appropriations |
Passed |
|
| Apr 10, 2023 | Do pass as amended and be re-referred to the Committee on [Appropriations] | Assembly Standing Committee on Revenue and Taxation |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
|
Organization
|
Position
|
Date
|
|---|---|---|
| Als Association Golden West Chapter | * Support | Apr 10, 2023 |
| ALS Association- Golden West Chapter- Greater Bay Area and Greater Los Angeles Chapter | ** Support | |
| Amyotrophic Lateral Sclerosis Association Golden West Chapter | ** Support |
CONCURRENCE IN SENATE AMENDMENTS
CSA1 Bill Id:AB 511
Author:(Dixon)
As Amended Ver:June 8, 2023
Majority vote
SUMMARY
Authorizes the addition of the California ALS Research Network Voluntary Tax Contribution Fund (Fund) as a voluntary contribution fund (VCF) on the personal income tax (PIT) return.
Senate Amendments
- Add coauthors.
- Provide that, on or before January 1, 2025, and annually thereafter, the Amyotrophic Lateral Sclerosis Association Golden West Chapter shall provide to the State Department of Public Health (SDPH) information on how moneys received were spent, including an itemization of how program funds were awarded, such as to specific research grants, projects, and events, and the department shall report that information on its internet website.
COMMENTS
- What would this bill do? This bill authorizes the addition of a new VCF on the PIT return, the "California ALS Research Network Voluntary Tax Contribution Fund". Taxpayer contributions to the Fund would be continuously appropriated to SDPH for disbursement to the ALS Association Golden West Chapter to support the work of their California ALS Research Network. This network, in turn, is dedicated to developing and advancing the understanding, techniques, and modalities effective in the prevention, treatment, and cure of ALS.
- What is ALS? According to the Mayo Clinic, ALS is a progressive nervous system disease that impacts nerve cells in both the brain and spinal cord, causing a loss of muscle control. The disease often begins with muscle twitching and weakness in a limb, or slurred speech. Eventually, ALS impacts all muscles needed to move, speak, eat, and breathe. At present, there is no cure for this fatal disease and doctors usually do not know why ALS occurs.
- Why does this seem familiar? This is not the first time a VCF dedicated to ALS has been proposed. Roughly 15 years ago, the Governor signed into law SB 1502 (Steinberg), Chapter 354, Statutes of 2008, which added the "ALS/Lou Gehrig's Disease Research Fund" to the PIT return. SB 1502 directed the SDPH to allocate contributions to the ALS Association to provide research grants to develop and advance the understanding, techniques, and modalities effective in the prevention, treatment, and cure of ALS. SB 1502 also prohibited the Association from using fund moneys for administrative purposes or for any purpose related to the Association's own operations.
The original VCF appeared on the 2008 and 2009 tax returns in calendar years 2009 and 2010, respectively. The VCF received only $114,051 in its second year on the return. In 2010, the VCF needed to meet a minimum contribution threshold of $250,000. Because it failed to do so, the VCF ceased to be operative.
In 2011, SB 583 (Vargas), Chapter 711, Statutes of 2011, reauthorized the addition of the "ALS/Lou Gehrig's Disease Research Fund" for the same purposes. SB 583 provided for the fund's automatic repeal on January 1, 2016, or on an earlier date if the VCF failed to meet a minimum contribution amount initially set at $250,000. This second fund received $137,290 in its first year and fell off the return after receiving only $131,655 in its second year.
According to the Author
The author has provided the following statement in support of this bill:
California is home to the country's largest ALS population. California is also [the home of] leading ALS clinicians, clinics, and [biotech companies] pursuing treatments for ALS. California leads the nation in clinical trial sites. Assembly Bill 511, through the well-established State tax check-off program, will enable the establishment of a stable funding source to support the work of the California ALS Research Network. AB 511 will enable the ALS clinical and research community to harness the opportunity to leverage our robust infrastructure and vast expertise that exists with the state.
Arguments in Support
This bill is sponsored by the Golden West Chapter of the ALS Association, which notes the following:
The work of the CA ALS Research Network organizes and executes a comprehensive gathering of all of the California entities essential to the identification and development of potential therapies. The Network provides the structure necessary to advance public/private ALS research partnerships within the state. The Network plays a crucial role in bringing together researchers, clinicians, biotech companies, and industry partners that can identify therapeutic approaches and design studies that will lead to effective treatments and cures for ALS.
Arguments in Opposition
None on file.
FISCAL COMMENTS
According to the Assembly Committee on Appropriations:
- Beginning fiscal year 2024-25, annual General Fund (GF) revenue loss of less than $5,000. FTB generally assumes $5,000 in GF revenue loss for every $250,000 in Fund contributions. Prior VCF programs to support ALS research generated less than $250,000 annually.
- Minor and absorbable costs to FTB to administer another VCF program.
- Minor and absorbable costs to SDPH and State Controller's Office to disburse funds accordingly.
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, 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, Padilla, Portantino, Roth, Rubio, Seyarto, Skinner, Smallwood-Cuevas, Stern, Umberg, Wahab, Wiener, Wilk
ABS, ABST OR NV: Alvarado-Gil
UPDATED
VERSION: June 8, 2023
CONSULTANT: M. David Ruff / REV. & TAX. / (916) 319-2098 FN: 0001183
SENATE RULES COMMITTEE Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | AB 511 |
CONSENT
Bill No: AB 511
Author: Dixon (R), et al.
Amended: 6/8/23 in Senate
Vote: 21
SENATE GOVERNANCE & FIN. COMMITTEE: 8-0, 6/7/23
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: Personal income taxes: voluntary contributions: California ALS Research Network Voluntary Tax Contribution Fund
SOURCE: Amyotrophic Lateral Sclerosis Association- Golden West Chapter
DIGEST:
This bill establishes the California Amyotrophic Lateral Sclerosis (ALS) Research Network Voluntary Contribution Fund on the Personal Income Tax (PIT) return.
ANALYSIS:
Existing law:
- Allows taxpayers to contribute money from their own resources in excess of the amount they owe in taxes to Voluntary Contribution Funds (VCF), by checking a box on their state Personal Income Tax return.
- Establishes 20 VCFs, including the Alzheimer’s Disease and Related Dementia VCF, the California Cancer Research VCF, and the Mental Health Crisis Prevention VCF, for inclusion on the Personal Income Tax (PIT) Return.
- Establishes that when a taxpayer contributes to a VCF, the Franchise Tax Board (FTB) deposits the total of all contributions, minus its costs of administration, into a fund named for the VCF, for purposes set forth in the legislation placing the VCF on the income tax form.
- Requires generally any voluntary tax contribution fund to generate at least $250,000 annually, as specified, to stay on the Personal Income Tax Return, unless the fund is exempted from this requirement in statute.
This bill:
- Directs FTB to add the ALS Research Network Voluntary Tax Contribution Fund to the Personal Income Tax return.
- Allows individuals to contribute amounts in excess of tax liability to the .ALS Research Network Voluntary Tax Contribution Fund.
- Creates the California ALS Research Network Voluntary Tax Contribution Fund in the State Treasury, and directs the Controller to transfer to the Fund an amount equal to the total contributions made by taxpayers to the VCF based on a notification from FTB.
- Requires FTB to determine whether the California ALS Research Network Voluntary Tax Contribution Fund receives contributions of at least $250,000 per calendar year in contributions, and provides that the bill is inoperative in the taxable year beginning on or after the calendar year where contributions do not meet that amount.
- Provides that the Fund and its associated provisions shall remain in effect until January 1, 2031.
- Continuously appropriates moneys from the Fund as follows:
- To the Franchise Tax Board (FTB) and the State Controller for reimbursement of all costs incurred in managing contributions to the Fund, as specified.
- To the California Department of Public Health (the department) for disbursement to the ALS Association Golden West Chapter, to support the work of the California ALS Research Network in developing and advancing the understanding, techniques, and modalities in effectively preventing, treating, and curing ALS. The bill prohibits the Chapter from using funding for administrative purpose.
- Requires for the ALS Association Golden West Chapter to provide the department with information on how moneys received from the Fund were spent, and for the department to report this information on its internet website.
- Makes findings and declarations related to the harm that ALS causes and its related fatalities, while stating the intent of the Legislature to establish a systematic program to bring together California’s academic, clinical, and scientific infrastructure to advance our collective understanding of the causes, cures, and prevention of ALS.
Background
According to Mayo Clinic, ALS is a disease impacting the nervous system that may severely impact muscle control, impacting the ability to move, sleep, eat and breathe. It is difficult to diagnose and there is currently no cure. The Golden West Chapter is one of four chapters of the ALS Association in California; according to its website, its mission is to “discover treatments and cures for ALS, and to serve, advocate for, and empower people affected by ALS to live their lives to the fullest.” It covers several counties from Central and Southern California. Its activities include support for the California ALS Research Network, which runs an annual CA ALS Research Summit that brings together ALS researchers from around the world.
The Legislature has enacted a VCF dedicated to ALS multiple times in the past. SB 1502 (Steinberg, Chapter 352, Statutes of 2008), placed the ALS/Lou Gehrig’s Disease Research Fund on the PIT return for the 2009 taxable year. The bill allocated contributions to the ALS Association to develop and advance ways to prevent, treat, and cure ALS. However, the VCF received only $114,051 during 2010 on the PIT return, below the minimum contribution threshold of $250,000, so FTB removed it from the return in the 2011 taxable year. SB 583 (Vargas, Chapter 711, Statutes of 2011) again added the ALS/ Lou Gehrig’s Disease Research Fund for the same reasons. However, FTB removed the VCF after it received only $131,655 in contributions its second year.
Comment
The Legislature has enacted VCFs for supporting the ALS Association twice in the past, both of which have failed to meet the minimum contribution threshold. AB 511 differs slightly from those measures, in that that it provides funds to the Golden West Chapter of the ALS Association rather than to the ALS association itself, and proposes that funds be spent to support the California ALS Research Network rather than for general research purposes.
Minimum contribution requirements ensure that only VCFs with broad public support occupy finite space on the return, and generate enough contributions to justify administrative costs. Having too many organizations on the return means that each VCF is likely to receive fewer funds.
FISCAL EFFECT: Appropriation: Yes Fiscal Com.: Yes Local: No
SUPPORT: (Verified 6/27/23)
Amyotrophic Lateral Sclerosis Association- Golden West Chapter (source)
OPPOSITION: (Verified 6/27/23)
None received
ARGUMENTS IN SUPPORT: According to the author: “California is home to the country's largest ALS population. California is also [the home of] leading ALS clinicians, clinics, and [biotech companies] pursuing treatments for ALS. California leads the nation in clinical trial sites. Assembly Bill 511, through the well-established State tax check-off program, will enable the establishment of a stable funding source to support the work of the California ALS Research Network. AB 511 will enable the ALS clinical and research community to harness the opportunity to leverage our robust infrastructure and vast expertise that exists with the state.”
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: Kyle Krueger / GOV. & F. / (916) 651-4119
6/28/23 11:05:20
SENATE COMMITTEE ON GOVERNANCE AND FINANCE
Senator Anna M. Caballero, Chair
2023 - 2024 Regular
Bill No: | AB 511 | Hearing Date: | 6/7/23 |
Author: | Dixon | Tax Levy: | No |
Version: | 4/18/23 Click here to enter text. | Fiscal: | Yes |
Consultant: | Krueger | ||
Personal income taxes: voluntary contributions: California ALS Research Network Voluntary Tax Contribution Fund
Establishes the California ALS Research Network Voluntary Contribution Fund and provides for its appearance on the Personal Income Tax (PIT) return.
Background
Voluntary Tax Contribution Funds. California allows for taxpayers to contribute money towards voluntary contribution funds (VCFs) on their personal income tax (PIT) return. Taxpayers may contribute money from their own resources in excess of the amount they owe in taxes; their contribution is only made if their payments and credits exceed the amount that they owe in taxes. Currently, taxpayers can make voluntary contributions to any number of 20 organizations directly on the income tax return. These organizations include nonprofits focused on disease, natural resource conservation, and more.
The Legislature adds each VCF individually through legislation. With a few exceptions, VCFs remain on the return until the FTB removes the VCF due to a sunset provision, or the VCF fails to meet the minimum contribution amount. In general, the minimum contribution amount is $250,000 beginning in the fund’s second year, unadjusted for inflation. However, while subject to sunset dates, the VCFs listed below do not have a minimum contribution requirement:
- California Firefighters’ Memorial Foundation Fund;
- California Peace Officer Memorial Foundation Fund; and
- California Senior Citizen Advocacy Voluntary Tax Contribution Fund.
When a taxpayer contributes to a VCF, FTB deposits the total of all contributions, minus its costs of administration, into a fund named for the VCF. Most VCF funds are administered by state agencies to fund purposes set forth in the legislation placing the VCF on the income tax form. For example, the University of California system uses taxpayer contributions from the California Breast Cancer Research VCF to fund the California Breast Cancer Program, which awards funds for breast cancer research and education. Other VCFs direct a state agency to pass through taxpayer contributions directly to a private organization. For example, the California Highway Patrol disburses proceeds from the National Alliance on Mental Illness California VCF directly to the National Alliance on Mental Illness California to fund the Crisis Intervention Team program. For other VCFs, the State Controller’s office allocates taxpayers contributions directly to the private organization, without going through an administrative agency. For example, the State Controller’s office passes the taxpayer’s contributions to the California Fire Foundation.
There are currently 20 VCFs listed on the tax return, and for the past five years they have collectively received roughly six million or more dollars each year in contributions.
Senate Bill 1476. In December 2015, the Committee held an oversight hearing on VCFs. The Committee identified best practices and reforms needed to ensure the state allocates taxpayer contributions toward charitable purposes in both a transparent and timely fashion. In 2016, the Legislature enacted SB 1476 (Committee on Governance and Finance), which used those best practices to establish general provisions for all VCFs enacted on, or extended after, January 2, 2017. Specifically, the bill:
- Lengthened the current standard sunset provision from five to seven years;
- Required the administering agency to post online the process and the administrative costs of awarding the money;
- Provided that funds shall be continuously appropriated to the administering agency; and
- Required “voluntary tax contribution” to be in the name of the fund.
ALS Association, Golden West Chapter According to Mayo Clinic, Amyotrophic Lateral Sclerosis (ALS) is a disease impacting the nervous system that may severely impact muscle control, impacting the ability to move, sleep, eat and breathe. It is difficult to diagnose and there is currently no cure.
The Golden West Chapter is one of four chapters of the ALS Association in California; according to its website, its mission is to “discover treatments and cures for ALS, and to serve, advocate for, and empower people affected by ALS to live their lives to the fullest.” It covers several counties from Central and Southern California, including the counties of Merced, Fresno, Santa Barbara, and Los Angeles, in addition to the State of Hawaii and a handful of counties in Northern California. In 2021, the chapter’s total revenue was $10.5 million and its total expenses were $9.3 million, and it had a four out of four star rating on the charity ranking website Charity Navigator. The chapter funds grants for ALS research, care management services, community outreach, and legislative advocacy at the state and federal levels. Its activities include support for the California ALS Research Network, which its website says is a group of ALS experts (including researchers, clinicians, and industry and government representatives) who are working to find effective treatment and cures for ALS, among other goals. The Network runs an annual CA ALS Research Summit, which brings together ALS researchers from around the world to develop ideas for advancing ALS research and treating ALS.
VCFs for ALS. The Legislature has enacted a VCF dedicated to ALS multiple times in the past. SB 1502 (Steinberg, 2008), placed the ALS/Lou Gehrig’s Disease Research Fund on the PIT return for the 2009 taxable year. The bill allocated contributions to the ALS Association to develop and advance ways to prevent, treat, and cure ALS. However, the VCF received only $114,051 during 2010 on the PIT return, below the minimum contribution threshold of $250,000, so FTB removed it from the return in the 2011 taxable year. SB 583 (Vargas, 2011) again added the ALS/ Lou Gehrig’s Disease Research Fund for the same reasons. However, FTB removed the VCF after it received only $131,655 in contributions its second year.
The author wants to create a similar VCF to help cover ALS Golden West Chapter’s costs of advancing ALS research.
Proposed Law
Assembly Bill 511 directs FTB to add the California ALS Research Network Voluntary Tax Contribution Fund to the tax return, beginning in the 2024 taxable year. The bill creates the California ALS Research Network Voluntary Tax Contribution Fund in the State Treasury, and directs the Controller to transfer to the Fund an amount equal to the total contributions made by taxpayers to the VCF based on a notification from FTB. The measure then continuously appropriates all money from the Fund to the following entities:
- First, to FTB, the Controller, and the California Department of Public Health (CDPH) to reimburse them for their duties in administering the bill.
- To CDPH for disbursement to the ALS Association Golden West Chapter, to support the work of the California ALS Research Network in developing and advancing the understanding, techniques, and modalities in effectively preventing, treating, and curing ALS. The bill prohibits the Chapter from using funding for administrative purpose.
The bill makes the fund inoperative upon either of the following events, whichever occurs first:
- If, beginning on September 1 of the fund’s second calendar year and any subsequent calendar year, the FTB determines that the amount of contributions estimated to be received during the calendar year will not equal or exceed the minimum annual contribution of $250,000.
- Upon the sunset date of January 1, 2031.
Similar to other VCFs, AB 511 provides that taxpayers can deduct from taxable income amounts donated to the VCF. The bill makes several legislative findings and declarations supporting its purposes, and sunsets it provisions on January 1, 2031.
State Revenue Impact
According to the FTB, the estimated revenue losses are about $5,000 per year.
Comments
1. Purpose of the bill. According to the author, “California is home to the country's largest ALS population. California is also [the home of] leading ALS clinicians, clinics, and [biotech companies] pursuing treatments for ALS. California leads the nation in clinical trial sites. Assembly Bill 511, through the well-established State tax check-off program, will enable the establishment of a stable funding source to support the work of the California ALS Research Network. AB 511 will enable the ALS clinical and research community to harness the opportunity to leverage our robust infrastructure and vast expertise that exists with the state.”
2. Tradeoffs. The Legislature has enacted VCFs for supporting the ALS Association twice in the past, both of which have failed to meet the minimum contribution threshold. AB 511 differs slightly from those measures, in that that it provides funds to the Golden West Chapter of the ALS Association rather than to the ALS association itself, and proposes that funds be spent to support the California ALS Research Network rather than for general research purposes.
Minimum contribution requirements ensure that only VCFs with broad public support occupy finite space on the return, and generate enough contributions to justify administrative costs. Having too many organizations on the return means that each VCF is likely to receive fewer funds. The Committee may wish to consider whether adding a VCF that is substantially similar to two that have failed in the past is worth the potential reduction in contributions to other VCFs.
3. Amendments. Under SB 1476, administering agencies for VCFs must report the process for awarding money, the amount of money spent on administration, and an itemization of how funds were awarded. Several recent bills enacting VCFs, including SB 347 (Caballero, 2021) that enacted the California Community and Neighborhood Tree VCF, and AB 1065 (Maienschein, 2021) which created the Mental Health Crisis Prevention VCF, conformed to this requirement by directing organizations to report on how they are spending the VCF money and specifying what they should report. However, AB 511 is currently missing such language. To ensure that the Legislature can review how VCF money is spent in some level of detail, the Committee may wish to consider amending AB 511 to insert similar language.
Assembly Actions
Assembly Revenue and Taxation Committee: 10-0
Assembly Appropriations Committee: 16-0
Assembly Floor: 75-0
Support and Opposition
(6/2/23)
Support: ALS Association- Golden West Chapter- Greater Bay Area and Greater Los Angeles Chapter
Opposition: None submitted.
-- END --
Date of Hearing: April 26, 2023
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Chris Holden, Chair
ABPCA Bill Id:AB 511
Author:(Dixon) – As Amended Ver:April 18, 2023
Policy Committee: | Revenue and Taxation | Vote: | 10 - 0 |
|
| ||
|
|
Urgency: No State Mandated Local Program: No Reimbursable: No
SUMMARY:
This bill establishes the California ALS Research Network Voluntary Tax Contribution Fund (Fund) on the Personal Income Tax (PIT) return.
Specifically, this bill:
- Requires the Franchise Tax Board (FTB) to revise the PIT return form to designate a space for the Fund and allows, for taxable years beginning January 1, 2024, and before January 1, 2031, a taxpayer to donate a portion of their PIT refund to the Fund.
- Establishes the Fund in the State Treasury and requires FTB to notify the State Controller (SCO) of the amount of refund money designated by taxpayers for the Fund. The SCO must transfer this designated amount from the PIT Fund to the Fund.
- Provides a continuous appropriation from the Fund, as follows:
- To FTB, SCO, and State Department of Public Health (CDPH) for reimbursement of related administrative costs.
- To CDPH for disbursement to the Amyotrophic Lateral Sclerosis (ALS) Association Golden West Chapter to support the work of the California ALS Research Network.
- Requires FTB to estimate annually whether the Fund will receive the minimum contribution amount to remain on the PIT return in the next taxable year.
FISCAL EFFECT:
- Beginning fiscal year 2024-25, annual General Fund (GF) revenue loss of less than $5,000. FTB generally assumes $5,000 in GF revenue loss for every $250,000 in Fund contributions. Prior voluntary contribution fund (VCF) programs to support ALS research generated less than $250,000 annually.
- Minor and absorbable costs to FTB to administer another VCF program.
- Minor and absorbable costs to CDPH and SCO disburse funds accordingly.
COMMENTS:
- Purpose. According to the author:
California is home to the country’s largest ALS population. California is also [the home of] leading ALS clinicians, clinics, and [biotech companies] pursuing treatments for ALS. California leads the nation in clinical trial sites. [This bill], through the well-established State tax check-off program, will enable the establishment of a stable funding source to support the work of the California ALS Research Network.
This bill is sponsored by the Golden West Chapter of the ALS Association.
- VCFs. Existing law allows a taxpayer to donate an amount in excess of their PIT liability to one or more VCFs listed on the PIT return (20 VCFs listed on the 2022 return). There have been several efforts in past years to raise money for ALS via a VCF on the PIT return. SB 1502 (Steinberg), Chapter 354, Statutes of 2008, established a similar VCF on the 2008 and 2009 tax returns, which received only $114,051 in the second year. Since the VCF failed to meet the minimum contribution threshold of $250,000, the VCF ceased to be operative and was removed from the return. SB 583 (Vargas), Chapter 711, Statutes of 2011, reauthorized the addition of a similar VCF, which also fell off the return after two years. This bill again reenacts a VCF on the PIT return to develop and advance the understanding, techniques, and modalities effective in the prevention, treatment, and cure of ALS.
- Related Legislation. AB 559 (Boerner Horvath) extends the sunset date on the California Senior Citizen Advocacy Voluntary Tax Contribution Fund for seven more years through taxable year 2030. AB 559 is pending referral in the Senate Committee on Rules.
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 511 (
Author:Dixon) – As Amended Ver:March 23, 2023
Majority vote. Fiscal committee.
SUBJECT: Personal income taxes: voluntary contributions: California ALS Research Network Voluntary Tax Contribution Fund
SUMMARY: Authorizes the addition of the California ALS Research Network Voluntary Tax Contribution Fund (Fund) as a voluntary contribution fund (VCF) on the personal income tax (PIT) return. Specifically, this bill:
- Contains the following legislative findings and declarations:
- Amyotrophic lateral sclerosis (ALS), more commonly known as Lou Gehrig's disease, is a degenerative disease of the motor nerves that causes progressive weakness of all voluntary muscles. People with ALS become unable to move, swallow, speak, and breathe without assistance, usually remaining fully aware of what is happening to them and their families;
- ALS is a fatal disease. There is no cure and only a few drug therapies, none of which allow for meaningful life extension. Most ALS patients die within two to five years of symptom onset. Every 90 minutes someone is diagnosed with ALS, and every 90 minutes someone dies of the disease. ALS knows no racial, ethnic, or socioeconomic boundaries, often striking people at midlife and at the height of family, career, and financial responsibilities;
- The devastating physical, emotional, and financial effects caused by the progression of ALS and the 24-hour, seven-day-a-week caregiving required impact not only the patient, but the entire family. ALS is a family disease, and the need for a coordinated effort on the part of the research and clinical care community in California is essential; and,
- It is the intent of the Legislature, in enacting this bill, to establish a systematic program to bring together California's academic, clinical, and scientific infrastructure to advance our collective understanding of the causes, cures, and prevention of ALS. The outcome of this collaboration may have direct effects and consequences on the development of a comprehensive system that may identify the causes, cures, and prevention of ALS, as well as improving the screening, diagnosis, and treatment of victims of ALS. This program shall underwrite the costs of bringing together California's physicians, hospitals, laboratories, educational institutions, and other organizations and persons for the purpose of enabling organizations and persons to advance ideas and activities that will better our understanding of ALS clinical care and explore opportunities that science can play in the diagnosis, treatment, and prevention of ALS.
- Establishes the Fund in the State Treasury.
- Allows a deduction for any contribution made to the Fund.
- Provides that all money transferred to the Fund shall be continuously appropriated and allocated to the:
- Franchise Tax Board (FTB), the State Controller, and the State Department of Public Health (DPH) for reimbursement of all administrative costs incurred; and,
- DPH, for disbursement to the ALS Association Golden West Chapter, a California based nonprofit organization, to support the work of their California ALS Research Network in an effort to develop and advance the understanding, techniques, and modalities effective in the prevention, treatment, and cure of ALS.
- Establishes a $250,000 minimum contribution amount for the Fund.
- Sunsets the Fund's statutory provisions on December 1, 2028.
EXISTING LAW:
- Allows taxpayers to contribute to one or more of 20 VCFs on the 2022 PIT return. (Revenue and Taxation Code (R&TC) Section 18730 et seq.)
- Provides a specific sunset date for each VCF, except for the California Seniors Special Fund and the State Parks Protection Fund. (R&TC Sections 18771 et seq. and 18900.1 et seq.)
- Requires each VCF to meet an annual minimum contribution amount to remain in effect, except for the California Senior Citizen Advocacy Voluntary Tax Contribution Fund, the California Firefighters' Memorial Voluntary Tax Contribution Fund, the California Peace Officer Memorial Foundation Voluntary Tax Contribution Fund, and the California Seniors Special Fund. (R&TC Sections 18730 et seq., Section 18801 et seq., Section 18805 et seq., and 18900.1 et seq.)
- Requires any new or extended VCF to:
- Include the words "voluntary tax contribution" in the name of the fund;
- Require the administering agency to include specified information about the fund on its internet website;
- Continuously appropriate from the fund the contributions made to the administering agency; and,
- Set a minimum contribution amount for the continuation of any VCF provisions on the tax return form and a generally applicable repeal date for VCF provisions.
FISCAL EFFECT: Staff estimates annual revenue losses of less than $5,000.
COMMENTS:
- The author has provided the following statement in support of this bill:
California is home to the country's largest ALS population. California is also [the home of] leading ALS clinicians, clinics, and [biotech companies] pursuing treatments for ALS. California leads the nation in clinical trial sites. Assembly Bill 511, through the well-established State tax check-off program, will enable the establishment of a stable funding source to support the work of the California ALS Research Network. AB 511 will enable the ALS clinical and research community to harness the opportunity to leverage our robust infrastructure and vast expertise that exists with the state.
- This bill is sponsored by the Golden West Chapter of the ALS Association, which notes the following:
The work of the CA ALS Research Network organizes and executes a comprehensive gathering of all of the California entities essential to the identification and development of potential therapies. The Network provides the structure necessary to advance public/private ALS research partnerships within the state. The Network plays a crucial role in bringing together researchers, clinicians, biotech companies, and industry partners that can identify therapeutic approaches and design studies that will lead to effective treatments and cures for ALS.
- Committee Staff Comments:
- What would this bill do? This bill authorizes the addition of a new VCF on the PIT return called the "California ALS Research Network Voluntary Tax Contribution Fund". Taxpayer contributions to the Fund would be continuously appropriated to DPH for disbursement to the ALS Association Golden West Chapter, to support the work of their California ALS Research Network. This network, in turn, is dedicated to developing and advancing the understanding, techniques, and modalities effective in the prevention, treatment, and cure of ALS.
- What is ALS? According to the Mayo Clinic, ALS is a progressive nervous system disease that impacts nerve cells in both the brain and spinal cord, causing a loss of muscle control. The disease often begins with muscle twitching and weakness in a limb, or slurred speech. Eventually, ALS impacts all muscles needed to move, speak, eat, and breath. At present, there is no cure for this fatal disease and doctors usually do not know why ALS occurs.
- Why does this seem familiar? This is not the first time a VCF dedicated to ALS has been proposed. Roughly 15 years ago, the Governor signed into law SB 1502 (Steinberg), Chapter 354, Statutes of 2008, which added the "ALS/Lou Gehrig's Disease Research Fund" to the PIT return. SB 1502 directed the DPH to allocate contributions to the ALS Association, to provide research grants to develop and advance the understanding, techniques, and modalities effective in the prevention, treatment, and cure of ALS. SB 1502 also prohibited the Association from using fund moneys for administrative purposes or for any purpose related to the Association's own operations.
The original VCF appeared on the 2008 and 2009 tax returns in calendar years 2009 and 2010. respectively. The VCF received only $114,051 in its second year on the return. In 2010, the VCF needed to meet a minimum contribution threshold of $250,000. Because it failed to do so, the VCF ceased to be operative.
In 2011, SB 583 (Vargas), Chapter 711, Statutes of 2011, reauthorized the addition of the "ALS/Lou Gehrig's Disease Research Fund" for the same purposes. SB 583 provided for the fund's automatic repeal on January 1, 2016, or on an earlier date if the VCF failed to meet a minimum contribution amount initially set at $250,000. This second fund received $137,290 in its first year and fell off the return after receiving only $131,655 in its second year.
- VCF policy: This Committee's VCF policy provides that, "All proponents seeking authorization for a new or reauthorized checkoff shall provide information justifying their expectation that the checkoff will meet its minimum contribution requirement." Given the history of the prior funds, it is an open question whether this Fund will fare any better. Committee staff questions the precedent of simply re-establishing past VCFs when they fail to garner sufficient support to remain on the form.
- Limitation on using contributions for administrative purposes? As noted above, this Fund's prior iterations prohibited the ALS Association from using any Fund moneys for administrative purposes. The author has agreed to take amendments providing a similar limitation in this bill.
- So many causes, so little space: There are countless worthy causes and organizations that would benefit from the inclusion of a VCF on the state's PIT return. At the same time, space on the return is limited. It could be argued that the current process for adding or extending VCFs is inherently subjective and rewards organizations that can convince the Legislature to champion their particular cause.
Additionally, adding to the ever-expanding list of VCFs may have the unintended effect of reducing contributions received by older VCFs since they will have to compete with a broader group of worthy causes for taxpayer support. This, in turn, could make it more difficult for existing VCFs to meet their annual $250,000 minimum contribution requirement.
- Complying with best practices: In an effort to promote a fair playing field, the Legislature enacted a series of requirements for new and extended VCFs. Specifically, R&TC Section 18873 was added by SB 1476 (Committee on Governance and Finance), Chapter 597, Statutes of 2016, to bring a degree of uniformity and improvement to the disparate VCF statutes. Among other things, Section 18873 provides the following parameters:
- The words "voluntary tax contribution" shall be included as part of the name of the fund;
- The website of the fund's administering agency shall report the process for awarding money, the amount of money spent on administration, and an itemization of how program funds were awarded, as specified;
- The minimum contribution amount that must be received for the fund to continue appearing on the tax return is $250,000, without subsequent inflation adjustments; and,
- The statutory provisions establishing a VCF shall remain in effect only until
January 1 of the seventh calendar year following the VCF's first appearance on the return.
- The words "voluntary tax contribution" shall be included as part of the name of the fund;
- Complying with best practices: In an effort to promote a fair playing field, the Legislature enacted a series of requirements for new and extended VCFs. Specifically, R&TC Section 18873 was added by SB 1476 (Committee on Governance and Finance), Chapter 597, Statutes of 2016, to bring a degree of uniformity and improvement to the disparate VCF statutes. Among other things, Section 18873 provides the following parameters:
This VCF, in turn, fully complies with these parameters. It should be noted, however, that this VCF would only be operative for four years instead of seven. As such, the author has agreed to amendments making this bill operative for the standard seven-year period.
REGISTERED SUPPORT / OPPOSITION:
Support
ALS Association, Golden West Chapter (Sponsor)
Opposition
None on file
Analysis Prepared by: M. David Ruff / REV. & TAX. / (916) 319-2098
Discussed in Hearing
1MIN
Assembly Floor
8MIN
Assembly Standing Committee on Revenue and Taxation
Bill Author
