Amended in Assembly April 13, 2015

Amended in Assembly March 26, 2015

California Legislature—2015–16 Regular Session

Assembly Bill No. 924

Introduced by Assembly Member Cooley

February 26, 2015

An act to add begin insert and repeal end insert Article 1 (commencing with Section 18701) begin delete to end delete begin insert of end insert Chapter 3 of Part 10.2 of Division 2 of the Revenue and Taxation Code, and to amend Section 18969 of the Welfare and Institutions Code, relating to taxation.

LEGISLATIVE COUNSEL’S DIGEST

AB 924, as amended, Cooley. Personal income tax: voluntary contributions: State Children’s Trust Fund.

Existing law allows individual taxpayers to contribute amounts in excess of their personal tax liability for the support of specified funds or accounts and previously allowed contributions to the State Children’s Trust Fund, which provided funding for child abuse and neglect prevention and intervention programs.

This bill begin delete would end delete , for taxable years beginning on or after January 1, 2015, begin insert would end insert allow individual taxpayers to contribute amounts in excess of their tax liability to the State Children’s Trust begin delete Fund, and would require the Franchise Tax Board to designate the fund as the first voluntary contribution option on the personal income tax return. This bill would, upon appropriation by the Legislature, provide for the specified allocation from the State Children’s Trust Fund of the contribution amounts obtained pursuant to this bill end delete begin insert Fund. The bill would prohibit a voluntary contribution designation for this fund from being added until another designation is removed or space is available, whichever occurs first end insert .

begin insert

This bill would require moneys in the State Children’s Trust Fund, upon appropriation by the Legislature, to be allocated to the Franchise Tax Board and the Controller for reimbursement of costs, as provided, and the balance to the State Department of Social Services for specified uses related to the prevention of child abuse and neglect, as provided.

end insert begin insert

This bill would provide that these voluntary contribution provisions are inoperative and repealed on the earlier of the following: inoperative on January 1 of the 5th taxable year following the first appearance of the fund on the tax return and repealed on December 1 of that year or inoperative for taxable years beginning on or after January 1 of a specified calendar year in which the Franchise Tax Board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, and repealed on December 1 of that calendar year.

end insert

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 1 (commencing with Section 18701) is
added to Chapter 3 of Part 10.2 of Division 2 of the Revenue and
Taxation Code, to read:

 

Article 1.  State Children’s Trust Fund

 

18701.  

(a) An individual may designate on the tax return that
a contribution in excess of the tax liability, if any, be made to the
State Children’s Trust Fund established by Section 18969 of the
Welfare and Institutions Code.

(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 “State Children’s Trust Fund for the
Prevention of Child Abuse” 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 child abuse prevention programs with demonstrated
success, public education efforts to change adult behaviors and
educate parents, innovative research to identify best practices, and
the replication of those practices to prevent child abuse and neglect.

begin delete

(f) The Franchise Tax Board shall designate the “State
Children’s Trust Fund for the Prevention of Child Abuse” as the
first voluntary contribution option on the personal income tax
return.

end delete begin insert

(f) Notwithstanding any other law, a voluntary contribution
designation for the State Children’s Trust Fund shall not be added
on the tax return until another voluntary contribution designation
is removed or space is available, whichever occurs first.

end insert

(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).

18702.  

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 18701 to be transferred to the State
Children’s Trust Fund begin insert , as established by Section 18969 of the
Welfare and Institutions Code end insert . The Controller shall transfer from
the Personal Income Tax Fund to the State Children’s Trust Fund
an amount not in excess of the sum of the amounts designated by
individuals pursuant to Section 18701 for payment into that fund.

18703.  

All money transferred to the State Children’s Trust
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) Up to 10 percent to the State Department of Social Services
to pursue public education about child abuse and neglect prevention
and early intervention in order to encourage voluntary contributions
to the State Children’s Trust Fund. The State Department of Social
Services may delegate these duties by entering into a contract with
a designated private entity that has demonstrated experience in
education and promotion.

(c) The remainder to the State Department of Social Services
for innovative child abuse and neglect prevention and intervention
programs operated by private nonprofit organizations or public
institutions of higher education with recognized expertise in fields
related to child welfare and for evaluation, research, or
dissemination of information concerning existing program models
for the purpose of replication of successful models as specified in
Article 5 (commencing with Section 18965) of Chapter 11 of Part
6 of Division 9 of the Welfare and Institutions Code.

18704.  

It is the intent of the Legislature that this article creates
an additional source of funding for a specified purpose. The funds
generated by this article shall not be used in place of funds from
other sources that are available to the State Children’s Trust Fund.

begin delete

18705.  

This article applies to returns for taxable years
beginning on or after January 1, 2015.

end delete begin insert

begin insert 18705. end insert   

(a) Except as otherwise provided in paragraph (2) of
subdivision (b), this article shall remain in effect only until January
1 of the fifth taxable year following the first appearance of the
State Children’s Trust 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 State Children’s Trust 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) 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 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 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 State Children’s Trust Fund on the personal
income tax return or the minimum contribution amount as adjusted
pursuant to subdivision (c).

(c) For each calendar year, beginning with the third calendar
year after the first appearance of the State Children’s Trust 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 contribution amount for the calendar year
shall be an amount equal to the product of the minimum
contribution amount for the prior 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.

end insert

SEC. 2.  

Section 18969 of the Welfare and Institutions Code is
amended to read:

18969.  

(a) There is hereby created in the State Treasury a fund
which shall be known as the State Children’s Trust Fund. The fund
shall consist of funds received from a county pursuant to Section
18968, funds collected by the state and transferred to the fund
pursuant to subdivision (b) of Section 103625 of the Health and
Safety Code and Article 1 (commencing with Section 18701) of
Chapter 3 of Part 10.2 of Division 2 of the Revenue and Taxation
Code, grants, gifts, or bequests made to the state from private
sources to be used for innovative and distinctive child abuse and
neglect prevention and intervention projects, and money
appropriated to the fund for this purpose by the Legislature. The
State Registrar may retain a percentage of the fees collected
pursuant to Section 103625 of the Health and Safety Code, not to
exceed 10 percent, in order to defray the costs of collection.

(b) Money in the State Children’s Trust Fund, upon
appropriation by the Legislature, shall be allocated to the State
Department of Social Services for the purpose of funding child
abuse and neglect prevention and intervention programs. The
department may not supplant any federal, state, or county funds
with any funds made available through the State Children’s Trust
Fund.

(c) The department may establish positions as needed for the
purpose of implementing and administering child abuse and neglect
prevention and intervention programs that are funded by the State
Children’s Trust Fund. However, the department shall use no more
than 5 percent of the funds appropriated pursuant to this section
for administrative costs.

(d) No State Children’s Trust Fund money shall be used to
supplant state General Fund money for any purpose.

(e) It is the intent of the Legislature that the State Children’s
Trust Fund provide for all of the following:

(1) The development of a public-private partnership by
encouraging consistent outreach to the private foundation and
corporate community.

(2) Funds for large-scale dissemination of information that will
promote public awareness regarding the nature and incidence of
child abuse and the availability of services for intervention. These
public awareness activities shall include, but not be limited to, the
production of public service announcements, well-designed posters,
pamphlets, booklets, videos, and other media tools.

(3) Research and demonstration projects that explore the nature
and incidence and the development of long-term solutions to the
problem of child abuse.

(4) The development of a mechanism to provide ongoing public
awareness through activities that will promote the charitable tax
deduction for the trust fund and seek continued contributions.
These activities may include convening a philanthropic roundtable,
developing literature for use by the State Bar for dissemination,
and whatever other activities are deemed necessary and appropriate
to promote the trust fund.