Bill Text: CA AB1789 | 2015-2016 | Regular Session | Chaptered
Bill Title: Personal income taxes: voluntary contributions: School
Spectrum: Slight Partisan Bill (Democrat 9-3)
Status: (Passed) 2016-09-22 - Chaptered by Secretary of State - Chapter 447, Statutes of 2016. [AB1789 Detail]
Download: California-2015-AB1789-Chaptered.html
BILL NUMBER: AB 1789 CHAPTERED
BILL TEXT
CHAPTER 447
FILED WITH SECRETARY OF STATE SEPTEMBER 22, 2016
APPROVED BY GOVERNOR SEPTEMBER 22, 2016
PASSED THE SENATE AUGUST 15, 2016
PASSED THE ASSEMBLY AUGUST 22, 2016
AMENDED IN SENATE AUGUST 9, 2016
AMENDED IN SENATE JUNE 27, 2016
AMENDED IN ASSEMBLY MARCH 17, 2016
INTRODUCED BY Assembly Member Santiago
(Coauthors: Assembly Members Chiu, Dodd, Cristina Garcia, Kim,
Lackey, McCarty, and Olsen)
(Coauthors: Senators Beall, Block, Hertzberg, and Liu)
FEBRUARY 4, 2016
An act to amend Sections 18897 and 18898 of the Revenue and
Taxation Code, relating to taxation.
LEGISLATIVE COUNSEL'S DIGEST
AB 1789, Santiago. Personal income taxes: voluntary contributions:
School Supplies for Homeless Children Fund.
Existing law authorizes an individual to contribute amounts in
excess of his or her personal income tax liability for the support of
specified funds, including the School Supplies for Homeless Children
Fund. Existing law requires the moneys deposited in the School
Supplies for Homeless Children Fund, upon appropriation by the
Legislature, to be allocated to the State Department of Social
Services for distribution to a designated nonprofit organization for
the sole purpose of assisting pupils in California pursuant to the
federal McKinney-Vento Homeless Assistance Act, as provided. Existing
law provides that this voluntary contribution remain in effect only
until January 1 of the 5th taxable year in which the fund appears on
the tax return or when the amount of contributions by taxpayers does
not meet the minimum contribution amount, whichever occurs first.
This bill would authorize the designated nonprofit organization to
provide school supplies and health-related products to homeless
children and homeless youth residing in or receiving services from
specified living centers and would extend the time period for the
School Supplies for Homeless Children Fund to appear on the tax
return to January 1, 2022, or when the amount of contributions by
taxpayers does not meet the minimum contribution amount, whichever
occurs first.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 18897 of the Revenue and Taxation Code is
amended to read:
18897. All moneys transferred to the School Supplies for Homeless
Children Fund, upon appropriation by the Legislature, shall be
allocated as follows:
(a) To the Franchise Tax Board, the State Department of Social
Services, and the Controller for reimbursement of all costs incurred
by the Franchise Tax Board, the Controller, and the State Department
of Social Services in connection with their duties under this
article.
(b) To the State Department of Social Services as follows:
(1) For the 2014-15 fiscal year, the Controller shall transfer the
funds appropriated to the State Department of Education for this
purpose from Budget Items 6110-001-8075 and 6110-101-8075 to the
State Department of Social Services. Funds transferred may be used
for state operations or local assistance expenditures and for
distribution to a nonprofit organization exempt from federal income
tax as an organization described in Section 501(c)(3) of the Internal
Revenue Code for the sole purpose of assisting pupils in California
on a statewide basis pursuant to the federal McKinney-Vento Homeless
Assistance Act (42 U.S.C. Sec. 11301 et seq.) by providing school
supplies and health-related products to partnering local education
agencies for distribution to homeless children, as defined by the
federal McKinney-Vento Homeless Assistance Act (42 U.S.C. Sec.
11434a). The nonprofit organization shall provide a minimum 100
percent match for all funds received from the School Supplies for
Homeless Children Fund. If the nonprofit organization provides
in-kind materials towards the 100 percent match, then the value of
the in-kind materials contributing to a 100 percent match shall be
verified by the donor donating the in-kind materials and cannot
exceed the market value of the materials if sold at retail. The State
Department of Social Services shall enter into a subvention services
agreement with the nonprofit organization.
(2) The State Department of Social Services' first designation of
a nonprofit organization shall be valid until January 1, 2017. On
that date, and every three calendar years thereafter, while this
section is operative and in effect, the State Department of Social
Services shall designate the same or a different nonprofit
organization pursuant to this section. The State Department of Social
Services may revoke the designation if the nonprofit organization
fails to comply with the provisions of this article. If a designation
is revoked, the State Department of Social Services shall designate
a new nonprofit organization within three calendar months or as soon
as administratively feasible.
(3) Funds shall be distributed by the State Department of Social
Services only after evidence is presented to the State Department of
Social Services that demonstrates that the local education agencies,
domestic violence shelters, or eligible basic living centers and
transitional living centers, as specified in paragraph (3) of
subdivision (c), have received the materials described in paragraph
(1).
(c) (1) Funds distributed to the nonprofit organization pursuant
to this section shall be used only for costs incurred to procure,
assemble, and ship school supplies and health-related products. Funds
made available pursuant to this section shall not be used for
administrative purposes, to reimburse costs associated with
administering grants of school supplies and health-related products
to local education agencies or domestic violence shelters, or for any
purpose relating to the operation of the nonprofit organization.
(2) The nonprofit organization may provide school supplies and
health-related products to children living in domestic violence
shelters.
(3) The nonprofit organization may provide school supplies and
health-related products to homeless children and homeless youth, as
defined in Section 11139.3 of the Government Code, residing in or
receiving services from eligible basic living centers and
transitional living centers eligible for assistance as specified in
the Runaway and Homeless Youth Act (42 U.S.C. 5701 et seq.), as that
act read on January 1, 2015.
(d) The State Department of Social Services shall verify that the
designated nonprofit organization procured school supplies and
health-related products and provided matching funds or in-kind
materials as described in this section.
SEC. 2. Section 18898 of the Revenue and Taxation Code is amended
to read:
18898. (a) Except as otherwise provided in subdivision (b), this
article shall remain in effect only until January 1, 2022, and is
repealed as of December 1 of that year.
(b) (1) By September 1 of the second calendar year and each
subsequent calendar year that the School Supplies for Homeless
Children Fund appears on the tax return, the Franchise Tax Board
shall do all of the following:
(A) Determine the minimum contribution amount required to be
received during the next calendar year for the fund to appear on the
tax return for the taxable year that includes that next calendar
year.
(B) Provide written notification to the State Department of Social
Services of the amount determined in subparagraph (A).
(C) Determine whether the amount of contributions estimated to be
received during the calendar year will equal or exceed the minimum
contribution amount determined by the Franchise Tax Board for the
calendar year pursuant to subparagraph (A). 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 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) for the second calendar year after the first appearance of
the School Supplies for Homeless Children Fund on the personal
income tax return or the adjusted minimum contribution amount
adjusted pursuant to subdivision (c).
(c) For each calendar year, beginning with the third calendar year
after the first appearance of the School Supplies for Homeless
Children Fund on the personal income tax return, the Franchise Tax
Board shall adjust, on or before September 1 of that calendar year,
the minimum 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 calendar year multiplied by the
inflation factor adjustment as specified in subparagraph (A) of
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 for all items 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.
