BILL NUMBER: AB 658 ENROLLED
BILL TEXT
PASSED THE SENATE AUGUST 12, 2010
PASSED THE ASSEMBLY AUGUST 17, 2010
AMENDED IN SENATE MARCH 4, 2010
AMENDED IN ASSEMBLY JANUARY 13, 2010
AMENDED IN ASSEMBLY JANUARY 4, 2010
INTRODUCED BY Assembly Members Hayashi and Lieu
(Coauthor: Assembly Member Solorio)
FEBRUARY 25, 2009
An act to add and repeal Article 14.5 (commencing with Section
18856) of Chapter 3 of Part 10.2 of Division 2 of the Revenue and
Taxation Code, relating to taxation.
LEGISLATIVE COUNSEL'S DIGEST
AB 658, Hayashi. Taxpayer contributions: California Police
Activities League (CALPAL) Fund.
Provisions relating to the administration of personal income taxes
allow individual taxpayers to contribute amounts in excess of their
tax liability for the support of specified funds.
This bill would allow taxpayers to designate on their tax returns
that a specified amount in excess of their tax liability be
transferred to the California Police Activities League (CALPAL) Fund,
which would be created by this bill. However, the bill would provide
that a voluntary contribution designation for this fund may not be
added on the tax return until another voluntary contribution
designation is removed from that return.
This bill would require that all moneys contributed to the fund
pursuant to these provisions, upon appropriation by the Legislature,
be allocated to the Franchise Tax Board and to the Controller for
allocation to the CALPAL, as provided.
This bill would provide that these voluntary contribution
provisions are repealed on January 1 of the 5th taxable year
following the taxable year the fund first appears on the tax return.
The bill would further provide that these provisions are repealed for
taxable years beginning on or after January 1 of the calendar year
in which the Franchise Tax Board estimates by September 1 that the
contributions made on returns filed in that calendar year will be
less than $250,000, or an adjusted amount for subsequent taxable
years.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Article 14.5 (commencing with Section 18856) is added
to Chapter 3 of Part 10.2 of Division 2 of the Revenue and Taxation
Code, to read:
Article 14.5. California Police Activities League (CALPAL)
Fund
18856. (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 Police Activities League (CALPAL) Fund established by
Section 18856.1. That designation is to be used as a voluntary
contribution 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. If no designee is specified, the
contribution shall be transferred to the General Fund after
reimbursement of the direct actual costs of the Franchise Tax Board
for the collection and administration of funds under this article.
(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) Upon another voluntary contribution designation being removed,
the Franchise Tax Board shall revise the form of the return to
include a space labeled the "California Police Activities League
(CALPAL) 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 exclusively to maintain the California
Police Activities League (CALPAL) program.
(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).
18856.1. There is hereby created in the State Treasury the
California Police Activities League (CALPAL) Fund to receive
contributions made pursuant to Section 18856. 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 18856 to be
transferred to the CALPAL Fund. The Controller shall transfer from
the Personal Income Tax Fund to the CALPAL Fund an amount not in
excess of the sum of the amounts designated by individuals pursuant
to Section 18856 for payment into that fund.
18856.2. All moneys transferred to the CALPAL 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 Controller for allocation to the CALPAL to be used
exclusively to fund programs and services of the CALPAL.
(1) The moneys shall be allocated by the Controller each year to
the state CALPAL established and maintained within the state.
(2) The Franchise Tax Board shall produce an annual report of the
CALPAL funds received, by ZIP Code, and submit a copy to the
chairpersons of the Assembly and Senate Committees on Revenue and
Taxation, and the state CALPAL. In addition, the Franchise Tax Board
shall make this report available on its Internet Web site.
(3) The state CALPAL shall use the report to allocate
contributions received directly to county CALPAL chapters based on
the ZIP Code of where the taxpayer contribution was made.
(4) A contribution made by a taxpayer who is located within a ZIP
Code that does not have a CALPAL chapter established within that ZIP
Code shall be allocated to the state CALPAL to help establish CALPAL
chapters in that ZIP Code, or to fund CALPAL activities and programs.
A contribution made from a ZIP Code that fails to meet the minimum
threshold for federal reporting requirements shall be allocated to
the state CALPAL to help establish CALPAL chapters in that ZIP Code,
or to fund CALPAL activities and programs. The state CALPAL may use
up to 15 percent of the total funds in paragraph (4) to cover
administrative costs necessary to implement this article.
(5) The state CALPAL shall not distribute any contributions
received from the Controller for a calendar year until the annual
report of the CALPAL funds received is made available. After the
annual report of the CALPAL funds received is available, the state
CALPAL shall distribute the appropriate contributions to the CALPAL
chapters, and provide all CALPAL chapters with a report detailing
contributions to each CALPAL chapter.
18856.3. (a) Except as otherwise provided in subdivision (b),
this article shall remain in effect only until January 1 of the fifth
taxable year following the first appearance of the CALPAL Fund on
the tax return, and as of that date is repealed, unless a later
enacted statute, that is enacted before the applicable date, deletes
or extends that date.
(b) (1) By September 1 of the second calendar year, and by
September 1 of each subsequent calendar year that the CALPAL 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 CALPAL 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 second calendar year after the first appearance of
the CALPAL Fund on the personal income tax return or the adjusted
minimum contribution amount as adjusted pursuant to subdivision (c).
(c) For each calendar year, beginning with the third calendar year
that the CALPAL 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 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.