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CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION

94

Introduced by Assembly Member Lee

February 13, 2025

An act to add and repeal Article 3.1 (commencing with Section 18724) of Chapter 3 or of Part 10.2 of Division 2 of the Revenue and Taxation Code, relating to taxation, and making an appropriation therefor.

Vote: majority   Appropriation: yes   Fiscal committee: yes   Local program: no

LEGISLATIVE COUNSEL’S DIGEST

Existing law allows an individual taxpayer to contribute amounts in excess of their personal income tax liability for the support of specified funds and accounts, including, among others, to the California Cancer Research Voluntary Tax Contribution Fund.

This bill bill, for taxable years beginning on or after January 1, 2027, and before January 1, 2034, would allow an individual to designate on their tax return that a specified amount in excess of their tax liability be transferred to the continuously appropriated California Spinal Cord Injury Research Voluntary Tax Contribution Fund, which would be created by this bill. The bill would require the Franchise Tax Board to revise the tax return form to include a space for the designation of contributions to the fund when another voluntary designation is removed from the form or there is space, whichever occurs first. fund. By establishing a new continuously appropriated fund, this bill would make an appropriation. The bill would require that the above provisions remain operative only until January 1 of the 7th calendar year following the first appearance of the California Pediatric Cancer Research Voluntary Tax Contribution Fund on the tax return, repeal its provisions on December 1, 2034, except as specified.

The people of the State of California do enact as follows:

SECTION 1.

Article 3.1 (commencing with Section 18724) is added to Chapter 3 of Part 10.2 of Division 2 of the Revenue and Taxation Code, to read:

Article 3.1. California Spinal Cord Injury Research Voluntary Tax Contribution Fund

18724.

(a) Any For taxable years beginning on or after January 1, 2027, and before January 1, 2034, an individual may designate on the tax return that a contribution in excess of the tax liability, if any, be made to the California Spinal Cord Injury Research Voluntary Tax Contribution Fund, established pursuant to Section 18724.1. That designation is to be used as a voluntary checkoff on the tax return.

(b) The contributions shall be in full dollar amounts and may be made individually by each signatory on a joint return.

(c) A designation under subdivision (a) shall be made for any a taxable year on the original return for that taxable year, and once made shall be irrevocable. In the event that If payments and credits reported on the return, together with any other credits associated with the taxpayer’s account, do not exceed the taxpayer’s liability, the return shall be treated as though no designation has been made.

(d) In the event If a taxpayer designates a contribution to more than one account or fund listed on the tax return, and the amount available for designation is insufficient to satisfy the total amount designated, the contribution shall be allocated among the designees on a pro rata basis.

(e) When another voluntary contribution designation is removed from the tax return, or as soon as space is available, whichever occurs first, the The Franchise Tax Board shall revise the forms of the return to include a space labeled the “California Spinal Cord Injury Research Voluntary Tax Contribution Fund” to allow for the designation permitted under subdivision (a). The forms 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 research relating to the treatment of spinal cord injuries.

(f) 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).

18724.1.

(a) There is hereby established in the State Treasury the California Spinal Cord Injury Research Voluntary Tax Contribution Fund to receive contributions made pursuant to Section 18724. The

(b) The Franchise Tax Board shall notify the Controller of both the amount of moneys paid by taxpayers in excess of their tax liability and the amount of refund moneys that taxpayers have designated pursuant to Section 18724 to be transferred to the California Spinal Cord Injury Research Voluntary Tax Contribution Fund. The

(c) The Controller shall transfer from the Personal Income Tax Fund to the California Spinal Cord Injury Research Voluntary Tax Contribution Fund an amount not in excess of the sum of the amounts designated by individuals pursuant to Section 18724 for payment into that fund.

18724.2.

(a) Notwithstanding Section 13340 of the Government Code, all moneys transferred to the California Spinal Cord Injury Research Voluntary Tax Contribution Fund shall be continuously appropriated and allocated as follows:

(1) To the Franchise Tax Board and the Controller for reimbursement of all costs incurred by the Franchise Tax Board and the Controller in connection with their duties under this article.

(2) To the Regents of the University of California for distribution of grants for the purposes of conducting research on the treatments of spinal cord injuries, pursuant to Chapter 2 (commencing with Section 104335) of Part 2 of Division 103 of the Health and Safety Code. The Regents of the University of California may use up to 5 percent of the moneys allocated to them for administering and promoting the Spinal Cord Injury Research Program.

(b) The Legislature requests the Regents of the University of California to report on its internet website the process for awarding moneys, the amount of moneys spent on administration, and an itemization of how program funds were awarded, including, but not limited to, information regarding recipients of funds.

18724.3.

(a) Except as otherwise provided in subdivision (b), this article shall remain operative only until January 1 of the seventh calendar year following the first appearance of the California Spinal Cord Injury Research Voluntary Tax Contribution Fund on the tax return, and is repealed as of December 1 of that year. December 1, 2034, 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 Spinal Cord Injury Research Voluntary Tax Contribution Fund appears on the tax return, On or before September 1, 2028, and each September 1 thereafter, 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 pursuant to paragraph (3). The Franchise Tax Board shall estimate the amount of contributions to be received by using the actual amounts received and an estimate of the contributions that will be received by the end of that calendar year.

(2) If the Franchise Tax Board determines that the amount of the contributions estimated to be received during a calendar year will not at least equal the minimum contribution amount for that calendar year, this article is inoperative with respect to taxable years beginning on or after January 1 of that calendar year and is repealed on December 1 of that calendar year.

(3) For purposes of this section, the minimum contribution amount for a calendar year means two hundred fifty thousand dollars ($250,000).

(c) Notwithstanding the repeal of this article, any contribution amounts designated pursuant to this article prior to its repeal shall continue to be transferred and disbursed in accordance with this article as in effect immediately prior to that repeal.