BILL NUMBER: SB 1101 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 15, 2008
AMENDED IN SENATE FEBRUARY 15, 2008
INTRODUCED BY Senator Cedillo
JANUARY 15, 2008
An act to amend Sections 18851, 18852, 18853, and 18855 of the
Revenue and Taxation Code, relating to taxation.
LEGISLATIVE COUNSEL'S DIGEST
SB 1101, as amended, Cedillo. Personal income taxes:
contributions: Emergency Food for Families Fund.
The Personal Income Tax Law allows taxpayers, until January 1,
2009, to designate on their tax returns that a specified amount in
excess of their tax liability be contributed to the Emergency Food
Assistance Program Fund.
This bill would change the name of the fund
designation to the "Emergency Food for Families Fund," and
would extend the operation of those provisions until January 1,
2014.
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. Section 18851 of the Revenue and Taxation Code is
amended to read:
18851. (a) An individual may designate on the tax return that a
contribution in excess of the tax liability, if any, be made to the
Emergency Food for Families Fund, which is established by Section
18852. That designation is to be used as a voluntary checkoff on the
tax return.
(b) The contributions shall be in full dollar amounts and may be
made individually by each signatory on a joint return.
(c) A designation shall be made for any taxable year on the
initial 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 taxpayer's account do not exceed the
taxpayer's liability, the return shall be treated as though no
designation has been made.
(d) The Franchise Tax Board shall revise the form of the return to
include a space labeled the "Emergency Food for Families Fund" to
allow for the designation permitted. 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 for the Emergency Food Assistance Program.
(e) 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).
SEC. 2. Section 18852 of the Revenue and Taxation Code is amended
to read:
18852. There is in the State Treasury the Emergency Food
for Families Assistance Program Fund to receive
contributions made pursuant to Section 18851. 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 18851 to be
transferred to the Emergency Food for Families
Assistance Program Fund. The Controller shall transfer
from the Personal Income Tax Fund to the Emergency Food for
Families Assistance Program Fund an amount not
in excess of the sum of the amounts designated by individuals
pursuant to Section 18851 for payment into that fund.
SEC. 3. Section 18853 of the Revenue and Taxation Code is amended
to read:
18853. All money transferred to the Emergency Food for
Families Assistance Program Fund, 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) To the State Department of Social Services for allocation to
the Emergency Food Assistance Program. Funds shall be allocated for
direct services provided by the Emergency Food Assistance Program and
may not be used for the department's administrative costs.
SEC. 4. Section 18855 of the Revenue and Taxation Code is amended
to read:
18855. (a) This article shall remain in effect only until January
1, 2014, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2014, deletes or extends
that date.
(b) (1) By September 1, 2006, and by September 1 of each
subsequent calendar year that the Emergency Food for Families 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 State Department of Social
Services 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 at least equal 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 1999 calendar year or the minimum contribution
amount adjusted pursuant to subdivision (c).
(c) For each calendar year, beginning with calendar year 2000, the
Franchise Tax Board shall adjust, on or before September 1 of that
calendar year, the estimated contribution amount specified in
subdivision (b) as follows:
(1) The minimum contribution amount for the calendar year shall be
an amount equal to the product of the minimum contribution amount
for the prior calendar year 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.