BILL NUMBER: AB 132	CHAPTERED  08/04/03

	CHAPTER  170
	FILED WITH SECRETARY OF STATE  AUGUST 4, 2003
	APPROVED BY GOVERNOR  AUGUST 3, 2003
	PASSED THE SENATE  JULY 21, 2003
	PASSED THE ASSEMBLY  MAY 15, 2003
	AMENDED IN ASSEMBLY  APRIL 21, 2003

INTRODUCED BY   Assembly Member Chavez

                        JANUARY 16, 2003

   An act to amend Section 18871 of the Revenue and Taxation Code,
relating to designated taxpayer contributions.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 132, Chavez.  Income taxes:  designated contributions.
   The Personal Income Tax Law authorizes taxpayers to contribute
amounts in excess of their tax liability to be deposited into
specified funds for the support of various charitable organizations.
These contribution designations appear as a line item on the
personal income tax form.  Existing law authorizes new charitable
designations to be placed on the personal income tax form, but only
after an existing designation has expired or is removed from the
personal income tax form.
   This bill would prioritize the addition of authorized charitable
designations to the tax form on the basis of the order of chaptering,
starting with the earliest chaptered enactment.  This bill would
also authorize the Franchise Tax Board to add one or more voluntary
contribution designations to the tax form, if the board determines
that space is available on the tax return to accommodate the
additional voluntary contribution designation.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 18871 of the Revenue and Taxation Code is
amended to read:
   18871.  In implementing this chapter, all of the following
requirements shall apply:
   (a) Unless otherwise specifically required by law, each voluntary
contribution fund or account established by this chapter shall be
included on the forms of the return through the taxable year
immediately preceding the year of repeal of the article establishing
that voluntary contribution fund or account.
   (b) Notwithstanding the repeal of any article of this chapter, the
voluntary contribution fund or account specified in that article
shall continue in effect until December 31 of the year of the repeal
of that article, and any contribution designated pursuant to that
article on a timely filed initial return for the taxable year
immediately preceding the date of repeal shall be transferred and
disbursed, and all costs incurred by the Franchise Tax Board and
Controller in connection with the transfer and disbursement of these
contribution amounts shall continue to be paid, in accordance with
that article as it read immediately prior to its repeal.
   (c) Unless otherwise specifically required by law, a contribution
made to any voluntary contribution fund or account established by
this chapter shall be subject to the following provisions:
   (1) In the event that no designee is specified, the contribution
shall, after reimbursement of the direct actual costs of the
Franchise Tax Board for the collection and administration of
contributions made under this article, be transferred to the General
Fund.
   (2) In the event 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.
   (d) (1) If the number of contingent voluntary contribution
designations that are eligible to be added to the tax return for a
taxable year is greater than the number of voluntary contribution
designations removed, those contingent voluntary contribution
designations that are eligible to be added to the tax return shall be
added to the tax return in the order of the date of enactment, with
the voluntary contribution designation with the earliest date of
enactment to be added first.
   (2) For purposes of this subdivision:
   (A) A contingent voluntary contribution designation means a
voluntary contribution designation authorized under this chapter that
may not be added to the tax return until another voluntary
contribution designation is removed from the tax form.
   (B) The date of enactment of a contingent voluntary contribution
designation authorized under this chapter shall be the date the act
authorizing the contingent voluntary contribution designation was
filed with the Secretary of State.  In the event that more than one
act authorizing a contingent voluntary contribution designation is
filed with the Secretary of State on the same date, the act with the
lowest chapter number will be conclusively presumed to have been
filed with the Secretary of State before any other act authorizing a
contingent voluntary contribution designation with a higher number.
   (e) Notwithstanding subdivision (d), or the contingency language
of an act prohibiting the addition of a contingent voluntary
contribution designation until another voluntary contribution
designation is removed, the Franchise Tax Board may add one or more
voluntary contribution designations if the board determines that
space is available on the tax return to accommodate the additional
voluntary contribution designation.