BILL NUMBER: AB 137	CHAPTERED  09/17/03

	CHAPTER  376
	FILED WITH SECRETARY OF STATE  SEPTEMBER 17, 2003
	APPROVED BY GOVERNOR  SEPTEMBER 16, 2003
	PASSED THE SENATE  AUGUST 25, 2003
	PASSED THE ASSEMBLY  APRIL 21, 2003
	AMENDED IN ASSEMBLY  MARCH 5, 2003

INTRODUCED BY   Assembly Members Correa, Chavez, Dymally, and Lieber
   (Principal coauthor:  Assembly Members Koretz and Maze)
   (Coauthors:  Assembly Members Bermudez, Cohn, Daucher, Frommer,
Harman, Laird, Leno, Longville, Maddox, Matthews, Montanez, Nation,
Nunez, Parra, Pavley, Reyes, Spitzer, Strickland, Wiggins, and
Wyland)
   (Coauthors: Senators  Aanestad, Denham, Florez, Kuehl, Machado,
McPherson, Ortiz, Scott, and Soto)

                        JANUARY 16, 2003

   An act to amend Section 18724 of the Revenue and Taxation Code,
relating to designated taxpayer contributions.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 137, Correa.  Income taxes:  designated contributions:  senior
citizens.
   Under the Personal Income Tax Law, taxpayers are allowed, until
January 1, 2005, to contribute amounts in excess of their tax
liability for the support of the California Fund for Senior Citizens.
  Existing law provides for the repeal of the contribution provisions
for these funds either on the January 1 following the calendar year
for which the Franchise Tax Board estimates that the minimum
contribution amount will be less than a prescribed amount or on
January 1, 2005, whichever occurs first.
   This bill would, under this latter limit, extend the operation of
those contribution provisions until January 1, 2010.


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 until January
1, 2010, and as of that date is repealed, unless a later enacted
statute, which is enacted before January 1, 2010, deletes that date.

   (b) If the Franchise Tax Board estimates by September 1 that
contributions described in this article made on returns filed in that
calendar year will be less than two hundred fifty thousand dollars
($250,000) for taxable years beginning in 2001, or the adjusted
amount specified in subdivision (c) for any subsequent taxable year,
as may be applicable, then this article is repealed with respect to
taxable years beginning on or after January 1 of that calendar year.
The Franchise Tax Board shall estimate the annual contribution
amount by September 1 of each year using the actual amounts known to
be contributed and an estimate of the remaining year's contributions.

   (c) For each calendar year, beginning with calendar year 2002, 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 estimated
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.