Bill Text: CA SB997 | 2013-2014 | Regular Session | Chaptered
Bill Title: Voluntary contributions: California Fund for Senior
Sponsorship: Bipartisan Bill
Status: (Passed) 2014-08-22 - Chaptered by Secretary of State. Chapter 248, Statutes of 2014. [SB997 Detail]
Download: California-2013-SB997-Chaptered.html
BILL NUMBER: SB 997 CHAPTERED
BILL TEXT
CHAPTER 248
FILED WITH SECRETARY OF STATE AUGUST 22, 2014
APPROVED BY GOVERNOR AUGUST 22, 2014
PASSED THE SENATE AUGUST 11, 2014
PASSED THE ASSEMBLY AUGUST 7, 2014
AMENDED IN ASSEMBLY JUNE 16, 2014
AMENDED IN SENATE APRIL 7, 2014
INTRODUCED BY Senator Morrell
(Principal coauthor: Assembly Member Alejo)
(Coauthors: Senators Gaines and Jackson)
(Coauthors: Assembly Members Brown, Buchanan, Cooley, Fong,
Harkey, Linder, Mansoor, Stone, Wagner, and Waldron)
FEBRUARY 13, 2014
An act to amend Section 18724 of, and to add and repeal Article
3.5 (commencing with Section 18725) of Chapter 3 of Part 10.2 of
Division 2 of, the Revenue and Taxation Code, relating to taxation.
LEGISLATIVE COUNSEL'S DIGEST
SB 997, Morrell. Voluntary contributions: California Fund for
Senior Citizens.
Under the Personal Income Tax Law, taxpayers are allowed to
contribute amounts in excess of their tax liability for the support
of the California Fund for Senior Citizens until the year in which
the minimum contribution is not received, or January 1, 2020,
whichever occurs first.
This bill would repeal these provisions and would instead allow a
taxpayer, for taxable years beginning on or after January 1, 2014, to
designate an amount in excess of tax liability to be deposited to
the California Senior Legislature Fund, which the bill would create.
This bill would require moneys transferred to the California Senior
Legislature Fund, upon appropriation by the Legislature, to be
allocated to the Franchise Tax Board and Controller, as provided, and
to the California Senior Legislature for the purpose of funding the
activities of the California Senior Legislature, as provided.
This bill would repeal these voluntary contribution provisions by
a specified date or, if contributions made on returns would be less
than a specified amount, by an earlier date as provided.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 18724 of the Revenue and Taxation Code is
amended to read:
18724. (a) This article shall remain in effect only for taxable
years beginning before January 1, 2014, and as of December 1, 2014,
is repealed.
(b) 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. Article 3.5 (commencing with Section 18725) is added to
Chapter 3 of Part 10.2 of Division 2 of the Revenue and Taxation
Code, to read:
Article 3.5. California Senior Legislature Fund
18725. (a) For taxable years beginning on or after January 1,
2014, any individual may designate on the tax return that a
contribution in excess of the tax liability, if any, be made to the
California Senior Legislature Fund established by Section 18726 to be
used to conduct the sessions of the California Senior Legislature
and to support its ongoing activities on behalf of older persons.
(b) The contribution shall be in full dollar amounts and may be
made individually by each signatory on the joint return.
(c) A designation under subdivision (a) shall be made for any
taxable year on the initial return for that taxable year, and once
made shall be 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 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 Senior Legislature 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 Senior Legislature and to support its ongoing activities
on behalf of older persons.
(f) 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).
18726. There is hereby established in the State Treasury the
California Senior Legislature Fund to receive contributions made
pursuant to Section 18725. 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 18725 to be transferred to the
California Senior Legislature Fund. The Controller shall transfer
from the Personal Income Tax Fund to the California Senior
Legislature Fund an amount not in excess of the sum of the amounts
designated by individuals pursuant to Section 18725 for payment into
that fund.
18728. (a) All moneys transferred to the California Senior
Legislature Fund pursuant to Section 18726, 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) The balance to the California Senior Legislature, for its
ongoing activities on behalf of older persons.
(b) All moneys allocated pursuant to paragraph (2) of subdivision
(a) may be carried over from the year in which they were received and
encumbered in any following year.
(c) The funds allocated to the California Senior Legislature for
the purpose of funding the activities of the California Senior
Legislature shall be spent pursuant to the purview of the Joint Rules
Committee of the California Senior Legislature in a manner
consistent with the bylaws of the California Senior Legislature,
established through a majority vote of the California Senior
Legislature.
18729. (a) Except as otherwise provided in subdivision (b), this
article shall remain in effect only for taxable years beginning
before January 1, 2019, and as of December 1, 2019, is repealed.
(b) (1) By September 1, 2015, and by September 1 of each
subsequent calendar year that the California Senior Legislature 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 California Senior
Legislature 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 California Senior Legislature Fund on the personal income tax
return or the minimum contribution amount as adjusted pursuant to
subdivision (c).
(c) For each calendar year, beginning with the third calendar year
after the first appearance of the California Senior Legislature 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.
