BILL NUMBER: AB 2017 AMENDED
BILL TEXT
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)
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, and to add Chapter 4 (commencing with Section 2200) to
Division 2.5 of the Welfare and Institutions Code, relating to
youth.
LEGISLATIVE COUNSEL'S DIGEST
AB 2017, as amended, Hall. California YMCA Youth and Government
Program: personal income taxes: voluntary contribution.
Existing law provides various services for youth in the state.
This bill would, with respect to the California YMCA Youth and
Government Program which trains high school students about the
legislative process, authorize each member of the Senate and each
member of the Assembly to appoint one youth member from each member's
district to participate in the program.
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 YMCA Youth and Government
Fund, which would be created by this bill. The bill would require
money in that fund, upon appropriation by the Legislature, to be
allocated to specified nonprofit civic youth organizations as
annual grants to operate civic education and mock legislative
programs, as prescribed, and to the California YMCA Youth and
Government program, as prescribed, for the purpose of funding the
activities of the California YMCA Youth and Government Model
Legislature and Court Program.
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 YMCA Youth and Government 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.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
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 YMCA Youth and Government 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 YMCA Youth and Government 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 YMCA Youth and Government 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 conduct the sessions of the
California Youth and Government Model Legislature and Court Program
operated by the YMCA, and to support its ongoing activities on behalf
of youth.
(f) Notwithstanding any other provision, a voluntary contribution
designation for the California YMCA Youth and Government 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 YMCA Youth and Government 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 YMCA Youth and Government Fund. The Controller
shall transfer from the Personal Income Tax Fund to the California
YMCA Youth and Government 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. All moneys transferred to the California YMCA Youth and
Government Fund pursuant to Section 18736, 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) (1) 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:
(A) African American Youth Leadership Program.
(B) Asian Pacific Youth Leadership Project.
(C) Chicano Latino Youth Leadership Project.
(2) Additional non-profit civic youth organizations may apply for
a grant of up to ten thousand dollars ($10,000) each in order to
operate civic education and mock legislative programs.
(A) Grants shall be administered by the California YMCA Youth and
Government Board of Directors, who shall be responsible for
developing criteria, evaluating applications and awarding grants on
an annual basis.
(B) Total annual grants awarded under this paragraph shall not
exceed forty thousand dollars ($40,000) per year.
(b)
(c) The balance to the California YMCA Youth
and Government Program, for its ongoing activities on behalf of
youth.
(c)
(d) All moneys allocated pursuant to
subdivision (b) (c) of this section may
be carried over from the year in which they were received.
(d)
(e) 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 members
Board of Directors in a manner consistent with
the bylaws of the organization , except as provided in
subdivision (b) .
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 YMCA
Youth and Government 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 YMCA
Youth and Government 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 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 YMCA Youth and Government 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 YMCA Youth and Government 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. Chapter 4 (commencing with Section 2200) is added to
Division 2.5 of the Welfare and Institutions Code, to read:
CHAPTER 4. CALIFORNIA YMCA YOUTH AND GOVERNMENT PROGRAM
2200. To be eligible to participate in the California YMCA Youth
and Government Program, youths shall be 14 to 18 years of age,
inclusive, and currently enrolled in a California high school or
participating in a nonpublic, home-based educational program or a
general equivalency degree program.
2202. (a) Each Member of the Senate and each Member of the
Assembly may appoint one youth member from his or her district to
participate in the California YMCA Youth and Government Model
Legislature and Court Program.
(b) Members of the Senate and Members of the Assembly, in making
their appointments, shall take into consideration that the members of
the California YMCA Youth and Government Program represent the
racial, ethnic, socioeconomic, cultural, physical, and educational
diversity of California. Particular emphasis should be placed on
reaching out to at-risk or disadvantaged youth to serve as members of
the California YMCA Youth and Government Program, as their
participation will provide keen insight into many of the issues that
youth face in their day-to-day lives.
(c) State funds shall not be used to support the California YMCA
Youth and Government Program, except as provided in Article 4.5
(commencing with Section 18736) of Chapter 3 of Part 10.2 of Division
2 of the Revenue and Taxation Code.
(d) This section does not preclude the California YMCA Youth and
Government Program from entering into mutually agreed-upon
interagency agreements for any subsequent fiscal year.
2203. (a) The funds for the California YMCA Youth and Government
Program shall be allocated from the California YMCA Youth and
Government Fund or private funds directed to the Legislature for the
purpose of funding activities of the California YMCA Youth and
Government Program.
(b) The California YMCA Youth and Government Program may accept
gifts and grants from any source, public or private, to help perform
its functions.