BILL NUMBER: SB 761 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY JULY 2, 2014
AMENDED IN ASSEMBLY JUNE 10, 2014
AMENDED IN SENATE JANUARY 17, 2014
AMENDED IN SENATE JANUARY 6, 2014
AMENDED IN SENATE MAY 24, 2013
INTRODUCED BY Senator DeSaulnier
FEBRUARY 22, 2013
An act to amend Sections 18897 and 18898 of the Revenue and
Taxation Code, relating to taxation.
LEGISLATIVE COUNSEL'S DIGEST
SB 761, as amended, DeSaulnier. Personal income taxes: voluntary
contributions: School Supplies for Homeless Children Fund.
The Personal Income Tax Law authorizes an individual to contribute
amounts in excess of his or her tax liability for the support of
specified funds, including the School Supplies for Homeless Children
Fund. Existing law requires the moneys deposited in the School
Supplies for Homeless Children Fund to be allocated, upon
appropriation by the Legislature, to the State Department of
Education 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 through competitive grant programs, as provided.
This bill would instead require the same moneys, upon
appropriation by the Legislature, to be allocated to the State
Department of Social Services for distribution to a nonprofit
organization, exempt from taxation, for the sole purpose of assisting
pupils in California pursuant to the federal McKinney-Vento Homeless
Assistance Act by providing grants of school supplies and
health-related products to partnering local education agencies, as
provided.
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 18897 of the Revenue and Taxation Code is
amended to read:
18897. All moneys transferred to the School Supplies for Homeless
Children Fund, upon appropriation by the Legislature, shall be
allocated as follows:
(a) To the Franchise Tax Board , the State Department of
Social Services, and the Controller for reimbursement of all
costs incurred by the Franchise Tax Board, the Controller, and the
State Department of Social Services in connection with their duties
under this article.
(b) To the State Department of Social Services as follows:
(1) (A) For distribution to
a nonprofit organization exempt from federal income tax as an
organization described in Section 501(c)(3) of the Internal Revenue
Code 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 partnering local education agencies for distribution to
homeless children, as defined by the federal McKinney-Vento Homeless
Assistance Act (42 U.S.C. Sec. 11434a). The nonprofit organization
shall provide a minimum 100 percent match for all funds received from
the School Supplies for Homeless Children Fund. The State Department
of Social Services shall enter into a subvention services agreement
with a the nonprofit organization.
(B)
(2) The State Department of Social Services' first
designation of a nonprofit organization shall be valid until January
1, 2017. On that date, and every three calendar years thereafter,
while this section is operative and in effect, the State Department
of Social Services shall designate the same or a different nonprofit
organization pursuant to this section. The State Department of Social
Services may revoke the designation should
if the nonprofit organization fail
fails to comply with the provisions of this article. If a
designation is revoked, the State Department of Social Services shall
designate a new nonprofit organization within three calendar months.
(C)
(3) Funds shall be distributed by the State Department
of Social Services only after evidence is presented to the State
Department of Social Services that demonstrates that the local
education agencies or domestic violence shelters have received the
materials described in paragraph (1) .
(2) For reimbursement of all costs incurred by the State
Department of Social Services in connection with verifying that the
designated nonprofit organization procured school supplies and
health-related products and provided matching funds or in-kind
materials as described in this section.
(c) (1) Funds distributed to the nonprofit organization pursuant
to this section shall be used only for costs incurred to procure,
assemble, and ship school supplies and health-related products. Funds
made available pursuant to this section shall not be used for
administrative purposes, to reimburse costs associated with
administering grants of school supplies and health-related products
to local education agencies or domestic violence shelters, or for any
purpose relating to the operation of the nonprofit organization.
(2) The nonprofit organization may provide school supplies and
health-related products to children living in domestic violence
shelters.
(d) The State Department of Social Services shall verify that the
designated nonprofit organization procured school supplies and
health-related products and provided matching funds or in-kind
materials as described in this section.
SEC. 2. Section 18898 of the Revenue and Taxation Code is amended
to read:
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 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 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 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 shall be inoperative with respect to taxable years
beginning on or after January 1 of that calendar year and shall be
repealed on December 1 of that 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.