Amended in Assembly April 29, 2015

Amended in Assembly April 13, 2015

Amended in Assembly March 26, 2015

California Legislature—2015–16 Regular Session

Assembly BillNo. 924


Introduced by Assembly Member Cooley

February 26, 2015


An act to add and repeal Article 1 (commencing with Section 18701) of 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, whichbegin delete providedend deletebegin insert providesend insert funding for child abuse and neglect prevention and intervention programs.

This bill, for taxable years beginning on or after January 1, 2015, would allow individual taxpayers to contribute amounts in excess of their tax liability to the State Children’s Trust Fund. The bill would prohibit a voluntary contribution designation for this fund from being addedbegin insert on the form of the tax returnend insert until another designation is removed or space is available, whichever occurs first.

This bill would require moneys in the State Children’s Trustbegin delete Fund,end deletebegin insert Fund from the voluntary contributions,end insert 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.

This bill would provide that these voluntary contribution provisions are inoperative and repealed on the earlier of the following: inoperative on January 1 of the 5th taxable year following the first appearance of the fund on the tax return and repealed on December 1 of that year or inoperative for taxable years beginning on or after January 1 of a specified calendar year in which the Franchise Tax Board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returns filed in that calendar year will be less than $250,000, or an adjusted amount for subsequent taxable years, and repealed on December 1 of that calendar year.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1

SECTION 1.  

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

4 

5Article 1.  State Children’s Trust Fund
6

 

7

18701.  

(a) An individual may designate on the tax return that
8a contribution in excess of the tax liability, if any, be made to the
9State Children’s Trust Fund established by Section 18969 of the
10Welfare and Institutions Code.

11(b) The contributions shall be in full dollar amounts and may
12be made individually by each signatory on a joint return.

13(c) A designation under subdivision (a) shall be made for a
14taxable year on the original return for that taxable year, and once
15made shall be irrevocable. If payments and credits reported on the
16return, together with any other credits associated with the
17individual’s account, do not exceed the individual’s tax liability,
18the return shall be treated as though no designation has been made.

19(d) If an individual designates a contribution to more than one
20account or fund listed on the tax return, and the amount available
21is insufficient to satisfy the total amount designated, the
P3    1contribution shall be allocated among the designees on a pro rata
2basis.

3(e) The Franchise Tax Board shall revise the form of the return
4to include a space labeled “State Children’s Trust Fund for the
5Prevention of Child Abuse” to allow for the designation permitted
6under subdivision (a). The form shall also include in the
7instructions information that the contribution may be in the amount
8of one dollar ($1) or more and that the contribution shall be used
9to support child abuse prevention programs with demonstrated
10 success, public education efforts to change adult behaviors and
11educate parents, innovative research to identify best practices, and
12the replication of those practices to prevent child abuse and neglect.

13(f) Notwithstanding any other law, a voluntary contribution
14designation for the State Children’s Trust Fund shall not be added
15on the tax return until another voluntary contribution designation
16is removed or space is available, whichever occurs first.

17(g) A deduction shall be allowed under Article 6 (commencing
18with Section 17201) of Chapter 3 of Part 10 for a contribution
19made pursuant to subdivision (a).

20

18702.  

The Franchise Tax Board shall notify the Controller of
21both the amount of money paid by taxpayers in excess of their tax
22liability and the amount of refund money that taxpayers have
23designated pursuant to Section 18701 to be transferred to the State
24Children’s Trust Fund, as established by Section 18969 of the
25Welfare and Institutions Code. The Controller shall transfer from
26the Personal Income Tax Fund to the State Children’s Trust Fund
27an amount not in excess of the sum of the amounts designated by
28individuals pursuant to Section 18701 for payment into that fund.

29

18703.  

All money transferred to the State Children’s Trust
30begin delete Fund,end deletebegin insert Fund pursuant to this article,end insert upon appropriation by the
31Legislature, shall be allocated as follows:

32(a) To the Franchise Tax Board and the Controller for
33reimbursement of all costs incurred by the Franchise Tax Board
34and the Controller in connection with their duties under this article.

35(b) Up to 10 percentbegin insert of all moneys appropriated pursuant to
36this article,end insert
to the State Department of Social Services to pursue
37public education about child abuse and neglect prevention and
38early intervention in order to encourage voluntary contributions
39to the State Children’s Trust Fund. The State Department of Social
40Services may delegate these duties by entering into a contract with
P4    1a designated private entity that has demonstrated experience in
2education and promotion.

3(c) The remainder to the State Department of Social Services
4for innovative child abuse and neglect prevention and intervention
5programs operated by private nonprofit organizations or public
6institutions of higher education with recognized expertise in fields
7related to child welfare and for evaluation, research, or
8dissemination of information concerning existing program models
9for the purpose of replication of successful models as specified in
10Article 5 (commencing with Section 18965) of Chapter 11 of Part
116 of Division 9 of the Welfare and Institutions Code.

12

18704.  

It is the intent of the Legislature that this article creates
13an additional source of funding for a specified purpose. The funds
14generated by this article shall not be used in place of funds from
15other sources that are available to the State Children’s Trust Fund.

16

18705.  

(a) Except as otherwise provided in paragraph (2) of
17subdivision (b), this article shall remain in effect only until January
181 of the fifth taxable year following the first appearance of the
19State Children’s Trust Fund on the personal income tax return,
20and is repealed as of December 1 of that year.

21(b) (1) By September 1 of the second calendar year and each
22subsequent calendar year that the State Children’s Trust Fund
23appears on the tax return, the Franchise Tax Board shall do all of
24the following:

25(A) Determine the minimum contribution amount required to
26be received during the next calendar year for the fund to appear
27on the tax return for the taxable year that includes that next calendar
28year.

29(B) Determine whether the amount of contributions estimated
30to be received during the calendar year will equal or exceed the
31minimum contribution amount determined by the Franchise Tax
32Board for the calendar year pursuant to subparagraph (A). The
33Franchise Tax Board shall estimate the amount of contributions
34to be received by using the actual amounts received and an estimate
35of the contributions that will be received by the end of that calendar
36year.

37(2) If the Franchise Tax Board determines that the amount of
38the contributions estimated to be received during a calendar year
39will not at least equal the minimum contribution amount for the
40calendar year, this article is inoperative with respect to taxable
P5    1years beginning on or after January 1 of that calendar year, and
2shall be repealed on December 1 of that calendar year.

3(3) For purposes of this section, the minimum contribution
4amount for a calendar year means two hundred fifty thousand
5dollars ($250,000) for the second calendar year after the first
6appearance of the State Children’s Trust Fund on the personal
7income tax return or the minimum contribution amount as adjusted
8pursuant to subdivision (c).

9(c) For each calendar year, beginning with the third calendar
10year after the first appearance of the State Children’s Trust Fund
11on the personal income tax return, the Franchise Tax Board shall
12adjust, on or before September 1 of that calendar year, the
13minimum contribution amount specified in subdivision (b) as
14follows:

15(1) The minimum contribution amount for the calendar year
16shall be an amount equal to the product of the minimum
17contribution amount for the prior calendar year multiplied by the
18inflation factor adjustment as specified in subparagraph (A) of
19paragraph (2) of subdivision (h) of Section 17041, rounded off to
20the nearest dollar.

21(2) The inflation factor adjustment used for the calendar year
22shall be based on the figures for the percentage change in the
23California Consumer Price Index for all items received on or before
24August 1 of the calendar year pursuant to paragraph (1) of
25 subdivision (h) of Section 17041.

26(d) Notwithstanding the repeal of this article, any contribution
27amounts designated pursuant to this article prior to its repeal shall
28continue to be transferred and disbursed in accordance with this
29article as in effect immediately prior to that repeal.

30

SEC. 2.  

Section 18969 of the Welfare and Institutions Code is
31amended to read:

32

18969.  

(a) There is hereby created in the State Treasury a fund
33which shall be known as the State Children’s Trust Fund. The fund
34shall consist of funds received from a county pursuant to Section
3518968, funds collected by the state and transferred to the fund
36pursuant to subdivision (b) of Section 103625 of the Health and
37Safety Code and Article 1 (commencing with Section 18701) of
38Chapter 3 of Part 10.2 of Division 2 of the Revenue and Taxation
39Code, grants, gifts, or bequests made to the state from private
40sources to be used for innovative and distinctive child abuse and
P6    1neglect prevention and intervention projects, and money
2appropriated to the fund for this purpose by the Legislature. The
3State Registrar may retain a percentage of the fees collected
4pursuant to Section 103625 of the Health and Safety Code, not to
5exceed 10 percent, in order to defray the costs of collection.

6(b) Money in the State Children’s Trust Fund, upon
7appropriation by the Legislature, shall be allocated to the State
8Department of Social Services for the purpose of funding child
9abuse and neglect prevention and intervention programs. The
10department may not supplant any federal, state, or county funds
11with any funds made available through the State Children’s Trust
12Fund.

13(c) The department may establish positions as needed for the
14purpose of implementing and administering child abuse and neglect
15prevention and intervention programs that are funded by the State
16Children’s Trust Fund. However, the department shall use no more
17than 5 percent of the funds appropriated pursuant to thisbegin delete sectionend delete
18begin insert section, exclusive of the funds transferred to the State Children’s
19Trust Fund pursuant to Article 1 (commencing with Section 18701)
20of Chapter 3 of Part 10.2 of Division 2 of the Revenue and Taxation
21Code,end insert
for administrative costs.begin insert Administrative costs do not include
22the moneys allocated to the department to pursue public education
23about child abuse and neglect prevention and early intervention
24as described in subdivision (b) of Section 18703 of the Revenue
25and Taxation Code.end insert

26(d) No State Children’s Trust Fund money shall be used to
27supplant state General Fund money for any purpose.

28(e) It is the intent of the Legislature that the State Children’s
29Trust Fund provide for all of the following:

30(1) The development of a public-private partnership by
31encouraging consistent outreach to the private foundation and
32corporate community.

33(2) Funds for large-scale dissemination of information that will
34promote public awareness regarding the nature and incidence of
35child abuse and the availability of services for intervention. These
36public awareness activities shall include, but not be limited to, the
37production of public service announcements, well-designed posters,
38pamphlets, booklets, videos, and other media tools.

P7    1(3) Research and demonstration projects that explore the nature
2and incidence and the development of long-term solutions to the
3problem of child abuse.

4(4) The development of a mechanism to provide ongoing public
5awareness through activities that will promote the charitable tax
6deduction for the trust fund and seek continued contributions.
7These activities may include convening a philanthropic roundtable,
8developing literature for use by the State Barbegin insert of Californiaend insert for
9dissemination, and whatever other activities are deemed necessary
10and appropriate to promote the trust fund.



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