BILL NUMBER: AB 233	CHAPTERED
	BILL TEXT

	CHAPTER  228
	FILED WITH SECRETARY OF STATE  SEPTEMBER 7, 2012
	APPROVED BY GOVERNOR  SEPTEMBER 7, 2012
	PASSED THE SENATE  AUGUST 9, 2012
	PASSED THE ASSEMBLY  AUGUST 13, 2012
	AMENDED IN SENATE  AUGUST 6, 2012
	AMENDED IN SENATE  JUNE 29, 2011
	AMENDED IN ASSEMBLY  MARCH 15, 2011

INTRODUCED BY   Assembly Member Hall

                        FEBRUARY 2, 2011

   An act to add and repeal Article 4.5 (commencing with Section
18736) of Chapter 3 of Part 10.2 of Division 2 of the Revenue and
Taxation Code, relating to taxation.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 233, Hall. Personal income taxes: voluntary contributions:
California YMCA Youth and Government Fund.
   The Personal Income Tax Law authorizes taxpayers to contribute
amounts in excess of their tax liability for the support of specified
funds.
   This bill would additionally allow individuals to designate on
their tax returns that a specified amount in excess of their tax
liability be transferred to the California YMCA Youth and Government
Fund, which would be created by this bill. The bill would require the
Franchise Tax Board, when another voluntary contribution designation
is removed or as soon as space is available, to revise the tax
return forms to provide for the designation created by this bill.
   The bill would require money in the California YMCA Youth and
Government Fund, upon appropriation by the Legislature, to be
allocated to the Franchise Tax Board, the Controller, and the State
Department of Education for reimbursement of all costs incurred by
the Franchise Tax Board, the Controller, and the department in
connection with their duties collecting and administering the fund
and the balance to the State Department of Education for distribution
to the California YMCA Youth and Government Program, and nonprofit
civic youth organizations, as specified.
   The bill would provide that these provisions would be repealed on
either January 1 of the 5th taxable year following the first
appearance of the California YMCA Youth and Government Fund on the
tax return, or January 1 of an earlier year, if the Franchise Tax
Board determines that the amount of contributions estimated to be
received during a calendar year will not equal or exceed the minimum
contribution amount, as defined, for the calendar year.


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

  SECTION 1.  Article 4.5 (commencing with Section 18736) is added to
Chapter 3 of Part 10.2 of Division 2 of the Revenue and Taxation
Code, to read:

      Article 4.5.  California YMCA Youth and Government Fund


   18736.  (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 YMCA Youth and Government Fund, established by Section
18737.
   (b) The contributions shall be in full dollar amounts and may be
made individually by each signatory on a joint return.
   (c) A designation under subdivision (a) shall be made for any
taxable year on the original 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 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
for designation 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 YMCA Youth and Government 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 support civic education programs
operated by the YMCA Youth and Government Program, the African
American Leaders for Tomorrow Program, the Asian Pacific Youth
Leadership Project, and the Chicano Latino Youth Leadership Project.
   (f) Notwithstanding any other provision, a voluntary contribution
designation for the California YMCA Youth and Government Fund shall
be added on the tax return when another voluntary contribution
designation is removed or as soon as space is available.
   (g) 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).
   18737.  There is hereby established in the State Treasury the
California YMCA Youth and Government Fund to receive contributions
made pursuant to Section 18736. 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 18736 to be transferred
to the California YMCA Youth and Government Fund. The Controller
shall transfer from the Personal Income Tax Fund to the California
YMCA Youth and Government Fund an amount not in excess of the sum of
the amounts designated by individuals pursuant to Section 18736 for
payment into that fund.
   18738.  (a) All moneys transferred to the California YMCA Youth
and Government Fund pursuant to Section 18736, upon appropriation by
the Legislature, shall be allocated as follows:
   (1) To the Franchise Tax Board, the Controller, and the State
Department of Education for reimbursement of all costs incurred by
the Franchise Tax Board, the Controller, and the State Department of
Education in connection with their duties under this article.
   (2) The balance to the State Department of Education for
distribution as follows:
   (A) If the California YMCA Youth and Government Fund collects
contributions of less than three hundred thousand dollars ($300,000),
all funds shall be distributed to the California YMCA Youth and
Government Program.
   (B) If the California YMCA Youth and Government Fund collects
donations in excess of three hundred thousand dollars ($300,000), the
balance of the fund shall be distributed as follows:
   (i) To provide an annual grant of ten thousand dollars ($10,000)
to each of the following nonprofit civic youth organizations in order
to operate civic education and mock legislative programs:
   (I) African American Leaders for Tomorrow Program.
   (II) Asian Pacific Youth Leadership Project.
   (III) Chicano Latino Youth Leadership Project.
   (ii) (I) All remaining funds shall be distributed to the
California YMCA Youth and Government Program.
   (II) The California YMCA Youth and Government Board of Directors
may award additional nonprofit civic youth organizations a grant of
up to ten thousand dollars ($10,000) each in order to operate civic
education and mock legislative programs. Grants shall be administered
by the California YMCA Youth and Government Board of Directors, who
shall be responsible for developing criteria, evaluating
applications, and awarding grants to eligible organizations.
   (b) All moneys allocated pursuant to subdivision (a) of this
section may be carried over from the year in which they were
received.
   (c) Funds distributed to the California YMCA Youth and Government
Program, the African American Leaders for Tomorrow Program, the Asian
Pacific Youth Leadership Project, the Chicano Latino Youth
Leadership Project, and any other nonprofit civic youth organizations
awarded a grant pursuant to clause (i) of subparagraph (B) of
paragraph (2) of subdivision (a) shall be used to support program
participation by underserved students and for direct program-related
expenses.
   (d) The funds distributed to the California YMCA Youth and
Government Program by the State Department of Education shall be used
exclusively for program-related expenses.
   18739.  (a) Except as otherwise provided in subdivision (b), this
article shall remain operative only until January 1 of the fifth
taxable year following the first appearance of the California YMCA
Youth and Government Fund on the tax return.
   (b) (1) By September 1 of the second calendar year, and by
September 1 of each subsequent calendar year that the California YMCA
Youth and Government 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 California YMCA Youth and
Government Program 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 equal or exceed 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 taxable year
for which the California YMCA Youth and Government Fund appears on
the tax return, or the minimum contribution amount adjusted pursuant
to subdivision (c).
   (c) For each calendar year, beginning with the third calendar year
that the California YMCA Youth and Government 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
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.