BILL NUMBER: AB 1399 AMENDED
BILL TEXT
AMENDED IN SENATE JUNE 9, 2016
AMENDED IN SENATE FEBRUARY 10, 2016
AMENDED IN ASSEMBLY JANUARY 13, 2016
AMENDED IN ASSEMBLY JANUARY 4, 2016
INTRODUCED BY Assembly Member Baker
(Coauthors: Assembly Members Brough and Gipson)
(Coauthor: Senator Glazer)
FEBRUARY 27, 2015
An act to add and repeal Article 2 (commencing with Section 18711)
of Chapter 3 of Part 10.2 of Division 2 of the Revenue and Taxation
Code, relating to taxation.
LEGISLATIVE COUNSEL'S DIGEST
AB 1399, as amended, Baker. Income taxes: voluntary contributions:
California Domestic Violence Victims Fund.
Existing law authorizes an individual to contribute amounts in
excess of his or her tax liability for the support of specified
funds. Existing law also has administrative provisions
applicable to voluntary contributions.
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 California Domestic Violence
Victims Fund, which would be created by this bill. The
bill would prohibit a voluntary contribution designation for the
California Domestic Violence Victims Fund from being added
on the tax return until another voluntary contribution designation is
removed or a space is available.
The bill would require moneys in the California Domestic Violence
Victims Fund, upon appropriation by the Legislature, to be
allocated to the Franchise Tax Board and the Controller for
reimbursement of costs and the balance to the Office of Emergency
Services (OES) for the distribution of funds to active grant
recipients under the Comprehensive Statewide Domestic Violence
Program within OES, as provided.
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 California Domestic Violence Victims
Fund on the tax return, but would further provide 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 at least equal the minimum contribution amount, as defined, for
that calendar year, in which case these provisions would be repealed
on December 1 of that 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 2 (commencing with Section 18711) is added to
Chapter 3 of Part 10.2 of Division 2 of the Revenue and Taxation
Code, to read:
Article 2. California Domestic Violence Victims
Fund
18711. (a) An individual may designate on the tax return that a
contribution in excess of the tax liability, if any, be made to the
California Domestic Violence Victims Fund established by
Section 18712. 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 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 liability, the
return shall be treated as though no designation has been made. If a
designee is not specified, the contribution shall be transferred to
the General Fund after reimbursement of the direct actual costs of
the Franchise Tax Board for the collection and administration of
funds under this article.
(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 "California Domestic Violence Victims
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 further the services that
California's domestic violence programs provide for victims of
domestic violence.
(f) Notwithstanding any other law, a voluntary contribution
designation for the California Domestic Violence Victims
Fund shall not be added on the tax return until another voluntary
contribution designation is removed or space is available.
(g) 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).
18712. There is hereby established in the State Treasury the
California Domestic Violence Victims Fund to receive
contributions made pursuant to Section 18711. 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 18711 to be
transferred to the California Domestic Violence Victims
Fund. The Controller shall transfer from the Personal Income Tax Fund
to the California Domestic Violence Victims Fund an
amount not in excess of the sum of the amounts designated by
individuals pursuant to Section 18711 for payment into that fund.
18713. All moneys transferred to the California Domestic Violence
Victims 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) To the Office of Emergency Services for the distribution of
funds to domestic violence programs in California that are in active
status, as reflected on the Business Search page of the Secretary of
State's Internet Web site, and are exempt from federal income
taxation as an organization described in Section 501(c)(3) of the
Internal Revenue Code, and are active grant recipients under the
Comprehensive Statewide Domestic Violence Program within the Office
of Emergency Services as described in Section 13823.15 of the Penal
Code. The Office of Emergency Services shall award the funds and be
responsible for overseeing the grant program.
(1) A domestic violence program shall not use grant moneys awarded
pursuant to this section for its administrative costs.
(2) The Office of Emergency Services shall not use fund moneys for
its administrative costs.
18714. (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 California
Domestic Violence Victims 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 California Domestic Violence
Victims 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 Office of Emergency
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 California Domestic Violence Victims 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 California Domestic Violence
Victims 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.