BILL NUMBER: AB 764 CHAPTERED
BILL TEXT
CHAPTER 465
FILED WITH SECRETARY OF STATE OCTOBER 4, 2011
APPROVED BY GOVERNOR OCTOBER 4, 2011
PASSED THE SENATE AUGUST 29, 2011
PASSED THE ASSEMBLY AUGUST 31, 2011
AMENDED IN SENATE JULY 5, 2011
AMENDED IN ASSEMBLY MAY 27, 2011
AMENDED IN ASSEMBLY APRIL 12, 2011
INTRODUCED BY Assembly Member Swanson
(Coauthor: Assembly Member Donnelly)
FEBRUARY 17, 2011
An act to add and repeal Article 10 (commencing with Section
18809) of Chapter 3 of Part 10.2 of Division 2 of the Revenue and
Taxation Code, relating to taxation.
LEGISLATIVE COUNSEL'S DIGEST
AB 764, Swanson. Personal income taxes: voluntary contributions:
Child Victims of Human Trafficking Fund.
Existing law relating to the administration of personal income
taxes authorizes individual taxpayers to contribute amounts in excess
of their tax liability for the support of specified funds or
accounts.
This bill would allow an individual taxpayer to designate on the
tax return, that a specified amount in excess of the tax liability be
transferred to the Child Victims of Human Trafficking Fund
established in the State Treasury.
This bill would provide that all moneys contributed to the fund,
upon appropriation by the Legislature, be allocated to the Franchise
Tax Board and the Controller for reimbursement of costs, as provided,
and to the California Emergency Management Agency, which would
administer the funds granted to community-based organizations that
serve minor victims of human trafficking, as provided.
This bill would provide that these voluntary contribution
provisions are repealed on either January 1 of the 5th taxable year
following the taxable year the fund first appears on the personal
income tax return or on January 1 of an earlier calendar year, if the
Franchise Tax Board estimates that the annual contribution amount
will be less than $250,000, or an adjusted amount, as specified, for
subsequent taxable years.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Article 10 (commencing with Section 18809) is added to
Chapter 3 of Part 10.2 of Division 2 of the Revenue and Taxation
Code, to read:
Article 10. Child Victims of Human Trafficking Fund
18809. (a) Any individual may designate on the tax return that a
contribution in excess of the tax liability, if any, be made to the
Child Victims of Human Trafficking Fund established by Section
18809.1. 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 under subdivision (a) shall be made for any
taxable year on the original return for that taxable year, and once
made, shall be irrevocable. In the event that 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 is
insufficient to satisfy the total amount designated, the
contribution shall be allocated among the designees on a pro rata
basis.
(e) When another voluntary contribution designation is removed
from the tax return or as soon as space is available, the Franchise
Tax Board shall revise the form of the return to include a space
labeled "Child Victims of Human Trafficking 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 fund community-based organizations that serve minor
victims of human trafficking that meet the standards described in
Section 13837 of the Penal Code and that agree to use the funds to
provide services to minors, who are victims of human trafficking.
(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).
18809.1. There is in the State Treasury the Child Victims of
Human Trafficking Fund to receive contributions made pursuant to
Section 18809. 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 18809 to be transferred to the Child
Victims of Human Trafficking Fund. The Controller shall transfer from
the Personal Income Tax Fund to the Child Victims of Human
Trafficking Fund an amount not in excess of the sum of the amounts
designated by individuals pursuant to Section 18809 for payment into
that fund.
18809.2. All money transferred to the Child Victims of Human
Trafficking Fund, upon appropriation by the Legislature, shall be
allocated as follows:
(a) To the Franchise Tax Board and the Controller only 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 California Emergency Management Agency, which will
administer the funds granted to the community-based organizations
that meet the standards described in Section 13837 of the Penal Code
and that agree to use the funds to provide services to minors, who
are victims of human trafficking.
18809.3. (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 Child Victims of
Human Trafficking Fund on the personal income 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 each
subsequent calendar year that the Child Victims of Human Trafficking
Fund appears on the tax return, the Franchise Tax Board shall do both
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) 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 the
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 Child Victims of Human Trafficking Fund on the personal income
tax return or the adjusted minimum contribution amount adjusted
pursuant to subdivision (c).
(c) For each calendar year, beginning with the third calendar year
after the first appearance of the Child Victims of Human Trafficking
Fund on the personal income tax return, the Franchise Tax Board
shall adjust, on or before September 1 of that calendar year, the
minimum 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 calendar year multiplied by the
inflation factor adjustment as specified in subparagraph (A) of
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 for all items 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.