University of California: school of medicine: San Joaquin Valley Regional Campus Medical Education Endowment Fund.

Existing law creates the University of California, San Francisco, San Joaquin Valley Regional Campus Medical Education Endowment Fund for the purpose of supporting the annual operating costs for the development, operation, and maintenance of a branch campus of the University of California, San Francisco, School of Medicine in the San Joaquin Valley, as specified. Existing law provides that moneys in the fund shall not be expended on the development, operation, or maintenance of the branch campus until the State Controller determines a sufficient balance of $500,000,000 is achieved and maintained in the fund. Upon appropriation by the Legislature, existing law requires earnings on the investment of the principal of the fund to be used to cover the annual costs for the development, operation, and maintenance of a branch campus supporting 50 students per class in the San Joaquin Valley over the 10 years following the accrual of the funds, as well as the estimated costs of obtaining approval and accreditation from the Liaison Committee on Medical Education, among other expenses. The Personal Income Tax Law, in conformity or modified conformity to federal income tax laws as of January 1, 2015, allows specified itemized deductions and does not allow a deduction for other items, except as otherwise provided. Existing law, in conformity with federal income tax provisions, allows a deduction for losses from wagering transactions to the extent of the gains from those transactions. This bill, for taxable years beginning on or after January 1, 2019, would disallow that deduction and would require the State Controller to transfer from the General Fund to the University of California, San Francisco, San Joaquin Valley Regional Campus Medical Education Endowment Fund the amount, as estimated by the Franchise Tax Board in consultation with the Department of Finance, received by the state as a result of the elimination of that deduction until the amount of $500,000,000 has been reached in the latter fund. This bill would declare that it is to take effect immediately as an urgency statute.