Bill Text: CA AB2017 | 2009-2010 | Regular Session | Enrolled
Bill Title: Personal income taxes: voluntary contributions:
Spectrum: Bipartisan Bill
Status: (Vetoed) 2010-09-25 - Vetoed by Governor. [AB2017 Detail]
Download: California-2009-AB2017-Enrolled.html
BILL NUMBER: AB 2017 ENROLLED
BILL TEXT
PASSED THE SENATE AUGUST 23, 2010
PASSED THE ASSEMBLY AUGUST 24, 2010
AMENDED IN SENATE AUGUST 3, 2010
AMENDED IN SENATE JUNE 28, 2010
AMENDED IN SENATE JUNE 16, 2010
AMENDED IN ASSEMBLY MAY 28, 2010
AMENDED IN ASSEMBLY APRIL 27, 2010
INTRODUCED BY Assembly Member Hall
(Coauthors: Assembly Members Gilmore and Jeffries)
(Coauthor: Senator DeSaulnier)
FEBRUARY 17, 2010
An act to add and repeal Article 4.5 (commencing with Section
18736) of Chapter 3 of Part 10.2 of Division 2 of the Revenue and
Taxation Code, relating to taxation.
LEGISLATIVE COUNSEL'S DIGEST
AB 2017, Hall. Personal income taxes: voluntary contributions:
California Youth Leadership Fund.
The Personal Income Tax Law authorizes taxpayers to contribute
amounts in excess of their tax liability for the support of specified
funds.
This bill would additionally allow individuals to designate on
their tax returns that a specified amount in excess of their tax
liability be transferred to the California Youth Leadership Fund,
which would be created by this bill. The bill would require money in
that fund, upon appropriation by the Legislature and depending on the
amount of donations collected, to be allocated to specified
nonprofit civic youth organizations as annual grants to operate civic
education and mock legislative programs, as prescribed, and the
balance of the money to the California YMCA Youth and Government
Program, for the purpose of funding the activities of the California
YMCA Youth and Government Model Legislature and Court Program and to
the Joint Committee on Rules of the Legislature, for the purposes of
funding the activities of the California Youth Legislature, as
prescribed.
The bill would require the Franchise Tax Board, when another
voluntary contribution designation is removed, to revise the form of
tax returns to provide for the designation created by this bill, and
would allow, upon appropriation by the Legislature, the Franchise Tax
Board, and the Controller to receive a portion of the funds
designated to cover costs incurred in collecting and administering
the funds.
The bill would provide that these provisions would remain in
effect only until January 1 of the 5th taxable year following the
first appearance of the California Youth Leadership Fund on the tax
return, but would further provide that if the Franchise Tax Board
determines that the amount of contributions estimated to be received
during a calendar year will not equal or exceed the minimum
contribution amount, as defined, for the calendar year, these
provisions would be repealed with respect to taxable years beginning
on or after January 1 of that calendar year.
This bill would become operative only if Senate Bill 516 of the
2009-10 Regular Session of the Legislature is chaptered and becomes
operative.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Article 4.5 (commencing with Section 18736) is added to
Chapter 3 of Part 10.2 of Division 2 of the Revenue and Taxation
Code, to read:
Article 4.5. California Youth Leadership Fund
18736. (a) An individual may designate on the tax return that a
contribution in excess of the tax liability, if any, be made to the
California Youth Leadership Fund, established by Section 18737.
(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
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 individual's
account, do not exceed the individual's tax liability, the return
shall be treated as though no designation has been made.
(d) If an individual 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) The Franchise Tax Board shall revise the form of the return to
include a space labeled "California Youth Leadership Fund" to allow
for the designation permitted under subdivision (a). 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 YMCA Youth and Government
Program, the California Youth Legislature, the African American Youth
Leadership Program, the Asian Pacific Youth Leadership Project, and
the Chicano Latino Youth Leadership Project.
(f) Notwithstanding any other provision, a voluntary contribution
designation for the California Youth Leadership Fund shall not be
added on the tax return until another voluntary contribution
designation is removed.
(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).
18737. There is hereby established in the State Treasury the
California Youth Leadership Fund to receive contributions made
pursuant to Section 18736. 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 18736 to be transferred to the
California Youth Leadership Fund. The Controller shall transfer from
the Personal Income Tax Fund to the California Youth Leadership Fund
an amount not in excess of the sum of the amounts designated by
individuals pursuant to Section 18736 for payment into that fund.
18738. (a) All moneys transferred to the California Youth
Leadership Fund pursuant to Section 18736, upon appropriation by the
Legislature, shall be 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) If the California Youth Leadership Fund collects donations of
less than two hundred fifty thousand dollars ($250,000), all
remaining funds shall be equally distributed between the California
YMCA Youth and Government Program, for its ongoing activities on
behalf of youth, and the Joint Committee on Rules to support the
California Youth Legislature, pursuant to Chapter 4 (commencing with
Section 2200) of Division 2.5 of the Welfare and Institutions Code.
(3) If the California Youth Leadership Fund collects donations in
excess of two hundred fifty thousand dollars ($250,000), but less
than three hundred thousand dollars ($300,000), the balance of the
fund shall be distributed as follows:
(A) To provide an annual grant of ten thousand dollars ($10,000)
to each of the following nonprofit civic youth organizations in order
to operate civic education and mock legislative programs:
(i) African American Youth Leadership Program.
(ii) Asian Pacific Youth Leadership Project.
(iii) Chicano Latino Youth Leadership Project.
(B) All remaining funds shall be equally distributed between the
California YMCA Youth and Government Program, for its ongoing
activities on behalf of youth, and the Joint Committee on Rules to
support the California Youth Legislature, pursuant to Chapter 4
(commencing with Section 2200) of Division 2.5 of the Welfare and
Institutions Code.
(4) If the California Youth Leadership Fund collects donations in
excess of three hundred thousand dollars ($300,000), the balance of
the fund shall be distributed as follows:
(A) To provide an annual grant of twenty thousand dollars
($20,000) to each of the following nonprofit civic youth
organizations in order to operate civic education and mock
legislative programs:
(i) African American Youth Leadership Program.
(ii) Asian Pacific Youth Leadership Project.
(iii) Chicano Latino Youth Leadership Project.
(B) All remaining funds shall be equally distributed between the
California YMCA Youth and Government Program, for its ongoing
activities on behalf of youth, and the Joint Committee on Rules to
support the California Youth Legislature, pursuant to Chapter 4
(commencing with Section 2200) of Division 2.5 of the Welfare and
Institutions Code.
(b) All moneys allocated pursuant to paragraph (2) of subdivision
(a), subparagraph (B) of paragraph (3) of subdivision (a), or
subparagraph (B) of paragraph (4) of subdivision (a) of this section
may be carried over from the year in which they were received.
(c) The funds allocated to the California YMCA Youth and
Government Program shall be used for the purpose of funding the
activities of the California Youth and Government Model Legislature
and Court Program and shall be spent pursuant to the purview of the
YMCA Youth and Government Board of Directors in a manner consistent
with the bylaws of the organization.
(d) The funds allocated to the Joint Committee on Rules shall be
used for the purpose of funding the activities of the California
Youth Legislature, pursuant to Chapter 4 (commencing with Section
2200) of Division 2.5 of the Welfare and Institutions Code.
18739. (a) Except as otherwise provided in subdivision (b), this
article shall remain operative only until January 1 of the fifth
taxable year following the first appearance of the California Youth
Leadership Fund on the tax return.
(b) (1) By September 1 of the second calendar year, and by
September 1 of each subsequent calendar year that the California
Youth Leadership Fund appears on a 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 California YMCA Youth and
Government Program and the Joint Committee on Rules 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
contributions estimated to be received during a calendar year will
not equal or exceed the minimum contribution amount for the calendar
year, this article is repealed with respect to taxable years
beginning on or after January 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) for the second calendar year after the first taxable year
for which the California Youth Leadership Fund appears on the tax
return, or the minimum contribution amount adjusted pursuant to
subdivision (c).
(c) For each calendar year, beginning with the third calendar year
that the California Youth Leadership Fund appears on the tax return,
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
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.
SEC. 2. This act shall become operative only if Senate Bill 516 of
the 2009-10 Regular Session of the Legislature is chaptered and
becomes operative.
