Bill Text: CA AB2017 | 2009-2010 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Personal income taxes: voluntary contributions:

Spectrum: Bipartisan Bill

Status: (Vetoed) 2010-09-25 - Vetoed by Governor. [AB2017 Detail]

Download: California-2009-AB2017-Amended.html

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BILL NUMBER: AB 2017	AMENDED
	BILL TEXT

	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  establish a   , with respect
to the  California YMCA Youth and Government Program  ,
to train   which trains  high school students
about the legislative process,  and would  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 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) The balance to the California YMCA Youth and Government
Program, for its ongoing activities on behalf of youth.
   (c) All moneys allocated pursuant to subdivision (b) of this
section may be carried over from the year in which they were
received.
   (d) 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 in a manner consistent with
the bylaws of the organization.
   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.  (a) The Legislature finds and declares that California's
youth would greatly benefit by learning how the California
legislative and judicial processes work.
   (b) The Legislature recognizes that all young people need five key
developmental resources in order to become productive citizens:
caring adults, safe places, a healthy start, an effective education,
and opportunities to help others. The Legislature further recognizes
that young people who receive more of these developmental resources
fare better than young people who receive fewer, and that those young
people are more likely to avoid violence, contribute to their
communities, and achieve high grades in school.
   (c) The Legislature is alarmed that hundreds of thousands of
California youth are among the two-thirds of America's children and
youth recently identified by the America's Promise Alliance as not
receiving sufficient developmental resources to safely put them on
the path to adulthood. The Legislature also is concerned that the
high school completion rate is less than 60 percent for low-income
students and students of color in California, that gang and youth
violence continue to be a concern and that after years of declining
numbers, teen pregnancy rates are also on the rise. The Legislature
is encouraged, however, by research indicating that providing more of
the five developmental resources for more young people can help
prevent many of these problems, and that millions of dollars in later
prison, health, and welfare costs can be avoided by providing more
developmental resources for more young people now.
   (d) The Legislature also agrees with the America's Promise
Alliance's call for greater collaboration and integration in working
to turn failure into action and improve the lives of young people at
risk and with the actions of the more than 20 states that have
committed their state resources for the creation of statewide
entities charged with improving the developmental well-being of their
children and youth.
   (e) The California YMCA Youth and Government Program operated by
the YMCA has been successfully providing training and education on
the legislative and judicial process for over 60 years.
   (f) The California YMCA Youth and Government Program annually
trains over 2,000 high school students in their model legislature,
which is composed of two houses, the youth senate, and the youth
assembly, as well as youth constitutional officers, a press corps,
lobbyists, and court representatives. 
    2201.   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.