2005 California Revenue and Taxation Code Sections 18861-18865 Article 15. Birth Defects Research Fund

18861.  (a) An individual may designate on the tax return that a
contribution in excess of the tax liability, if any, be made to the
Birth Defects Research Fund, which is established by Section 18862.
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
initial 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 taxpayer's account do not exceed
the taxpayer's liability, the return shall be treated as though no
designation has been made.  If no designee is specified, the
contribution shall be transferred to the General Fund after
reimbursement of the direct actual costs of the Franchise Tax Board
for the collection and administration of funds under this article.
   (d) If 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.
   (e) The Franchise Tax Board shall revise the form of the return to
include a space labeled the "Birth Defects Research 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
for the California Birth Defects Monitoring Program.
   (f) Notwithstanding any other provision, a voluntary contribution
designation for the Birth Defects Research Fund shall not be added on
the tax return until another voluntary contribution designation is
removed, or until taxable years beginning on or after January 1,
2002, whichever occurs first.
   (g) 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).
18862.  There is in the State Treasury the Birth Defects Research
Fund to receive contributions made pursuant to Section 18861.  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 18861 to be transferred to the Birth Defects Research Fund.
The Controller shall transfer from the Personal Income Tax Fund to
the Birth Defects Research Fund an amount not in excess of the sum of
the amounts designated by individuals pursuant to Section 18861 for
payment into that fund.
18863.  All money transferred to the Birth Defects Research Fund,
upon appropriation by the Legislature, shall be allocated as follows:
   (a) 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.
   (b) To the State Department of Health Services for allocation to
the birth defects monitoring program.  Funds shall be allocated to
the contract for the birth defects monitoring program authorized by
Section 103855 of the Health and Safety Code and may not be used for
the department's administrative costs.
18864.  It is the intent of the Legislature that this article create
an additional funding source for the contract for the birth defects
monitoring program and shall be used to supplement, not supplant,
other funding sources for this program.
18865.  (a) This article shall remain in effect only until January 1
of the fifth taxable year following the first appearance of the
Birth Defects Research Fund on the tax return or January 1, 2007,
whichever occurs first, and as of that date is repealed, unless a
later enacted statute, that is enacted before the applicable date,
deletes or extends that date.
   (b) If, in any calendar year after the first taxable year the
Birth Defects Research Fund appears on the tax return, the Franchise
Tax Board estimates by September 1 that contributions described in
this article made on returns filed in that calendar year will be less
than two hundred fifty thousand dollars ($250,000), or the adjusted
amount specified in subdivision (c) for subsequent taxable years, as
may be applicable, then this article is repealed with respect to
taxable years beginning on or after January 1 of that calendar year.
The Franchise Tax Board shall estimate the annual contribution
amount by September 1 of each year using the actual amounts known to
be contributed and an estimate of the remaining year's contribution.
   (c) For each calendar year, beginning with the second calendar
year the Birth Defects Research Fund appears on the tax return, or
2004, whichever occurs first, the Franchise Tax Board shall adjust,
on or before September 1 of that calendar year, the minimum estimated
contribution amount specified in subdivision (b) as follows:
   (1) The minimum estimated contribution amount for the calendar
year shall be an amount equal to the product of the minimum estimated
contribution amount for the prior September 1 multiplied by the
inflation factor adjustment as specified in paragraph (2) of
subdivision (h) of Section 17041, rounded off to the nearest dollar.
   (2) The inflation factor adjustment used for the calendar year
shall be based on the figures for the percentage change in the
California Consumer Price Index received on or before August 1 of the
calendar year pursuant to paragraph (1) of subdivision (h) of
Section 17041.
   (d) 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.