BILL NUMBER: SB 1571 AMENDED
BILL TEXT
AMENDED IN SENATE MAY 25, 2012
AMENDED IN SENATE MAY 1, 2012
AMENDED IN SENATE APRIL 18, 2012
INTRODUCED BY Senator DeSaulnier
FEBRUARY 24, 2012
An act to add and repeal Article 20 (commencing with Section
18895) of Chapter 3 of Part 10.2 of Division 2 of the Revenue and
Taxation Code, relating to taxation.
LEGISLATIVE COUNSEL'S DIGEST
SB 1571, as amended, DeSaulnier. Personal income taxes: voluntary
contribution: School Supplies for Homeless Children Fund.
The Personal Income Tax Law authorizes a taxpayer
an individual to contribute amounts in excess of
his or her tax liability for the support of specified funds.
This bill would additionally allow an individual to designate on
his or her tax return that a specified amount in excess of his or her
tax liability be transferred to the School Supplies for Homeless
Children Fund, which would be created by this bill. The bill would
require the Franchise Tax Board, when another voluntary contribution
designation is removed, to revise the tax return forms to provide for
the designation created by this bill.
The bill would require moneys in the School Supplies for Homeless
Children 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
State Department of Education in connection with their duties
collecting and administering the fund , as provided,
and the balance to the State Department of Education, for
allocation to nonprofit public benefit corporations awarded
grants, as provided, distribution of grants to school
distric ts for the sole purpose of assisting pupils
in California pursuant to the federal McKinney-Vento Homeless
Assistance Act by providing school supplies and health-related
products to homeless children , as provided .
This bill would authorize a nonprofit public benefit corporation
to apply to the State Department of Education for a grant under these
provisions if certain criteria are met.
The bill would provide that these provisions would remain in
effect only until January 1 of the 5th taxable year following the
first appearance of the School Supplies for Homeless Children Fund on
the tax return, but would further provide that
for an earlier repeal 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 that calendar year, in
which case these provisions would be repealed on December 1 of
that calendar year.
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. Article 20 (commencing with Section 18895) is added to
Chapter 3 of Part 10.2 of Division 2 of the Revenue and Taxation
Code, to read:
Article 20. School Supplies for Homeless Children Fund
18895. (a) Any An individual may
designate on the tax return that a contribution in excess of the tax
liability, if any, be made to the School Supplies for Homeless
Children Fund established by Section 18896.
(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 a
taxable year on the original return for that taxable year, and once
made shall be 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 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 "School Supplies for Homeless Children 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 provide school supplies for
homeless children.
(f) Notwithstanding any other law, a voluntary contribution
designation for the School Supplies for Homeless Children Fund shall
not be added on the tax return until another voluntary contribution
designation is removed.
(g) A deduction shall be allowed under Article 6 (commencing with
Section 17201) of Chapter 3 of Part 10 for a contribution made
pursuant to subdivision (a).
18896. There is hereby established in the State Treasury the
School Supplies for Homeless Children Fund to receive contributions
made pursuant to Section 18895. 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 18895 to be transferred
to the School Supplies for Homeless Children Fund. The Controller
shall transfer from the Personal Income Tax Fund to the School
Supplies for Homeless Children Fund an amount not in excess of the
sum of the amounts designated by individuals pursuant to Section
18895 for payment into that fund.
18897. (a) All money transferred to the
School Supplies for Homeless Children Fund, upon appropriation by the
Legislature, shall be allocated as follows:
(a)
(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.
(b)
(2) To the State Department of Education, for
allocation to any nonprofit public benefit corporation, which is
exempt from income taxation as an organization described in Section
501(c)(3) of the Internal Revenue Code, awarded a grant by the State
Department of Education distribution of grants to
school districts for the sole purpose of assisting pupils in
California pursuant to the federal McKinney-Vento Homeless Assistance
Act (42 U.S.C. Sec. 11301 et seq.) by providing school supplies and
health-related products to homeless children.
(c) (1) A nonprofit public benefit corporation may apply to the
State Department of Education for a grant funded by the School
Supplies for Homeless Children Fund provided that all of the
following requirements are met:
(A) The nonprofit public benefit corporation matches the grant
funds with 100 percent of in-kind corporate donations.
(B) The nonprofit public benefit corporation distributes the
school supplies and health-related products on a statewide basis.
(C) Less than 2 percent of the grant funds are spent for
administrative purposes.
(2)
( b) (1)
The State Department of Education may shall
develop the grant process applicable to this section,
including, but not limited to, application forms, deadlines, and
audit procedures, and allocation amounts based on the
number of qualified applicants. subject to the
following requirements:
(A) A grant shall be awarded in an amount of five thousand dollars
($5,000) or less, on a first-come, first-serve basis.
(B) Less than 2 percent of the grant award shall be spent for
administrative purposes.
(2) A school district may provide school supplies and health
related products to homeless children through the services of an
organization that is exempt from taxation as an organization
described in Section 501(c)(3) of the Internal Revenue Code if its
grant application specifies this purpose.
18898. (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 School Supplies
for Homeless Children Fund on the personal income tax return, and is
repealed as of December 1 of that taxable year.
(b) (1) By September 1 of the second calendar year and each
subsequent calendar year that the School Supplies for Homeless
Children Fund appears on the 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
Education 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 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 shall be in
operative with respect to taxable years beginning on
or after January 1 of that calendar year and shall be repealed on
December 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 School Supplies for Homeless Children 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 School Supplies for Homeless
Children 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.