California Legislature—2015–16 Regular Session

Assembly BillNo. 2371


Introduced by Assembly Member Frazier

February 18, 2016


An act to amend Section 18871 of the Revenue and Taxation Code, relating to taxation.

LEGISLATIVE COUNSEL’S DIGEST

AB 2371, as introduced, Frazier. Voluntary contributions.

Existing law authorizes an individual to designate on his or her personal income tax return that a specified amount in excess of his or her tax liability be transferred to various funds, and provides requirements relating to the placement of the funds on the tax return form and the effect of these provisions that govern the voluntary contributions.

This bill would make nonsubstantive changes to this provision.

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

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

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SECTION 1.  

Section 18871 of the Revenue and Taxation Code
2 is amended to read:

3

18871.  

In implementing this chapter, all of the following
4requirements shall apply:

5(a) Unless otherwise specifically required by law, each voluntary
6contribution fund or account established by this chapter shall be
7included on the forms of the return through the taxable year
P2    1immediately preceding the year of repeal of the article establishing
2that voluntary contribution fund or account.

3(b) Notwithstanding the repeal ofbegin delete anyend deletebegin insert anend insert article of this chapter,
4the voluntary contribution fund or account specified in that article
5shall continue in effect until December 31 of the year of the repeal
6of that article, and any contribution designated pursuant to that
7article on a timely filed initial return for the taxable year
8immediately preceding the date of repeal shall be transferred and
9disbursed, and all costs incurred by the Franchise Tax Board and
10Controller in connection with the transfer and disbursement of
11these contribution amounts shall continue to be paid, in accordance
12with that article as it read immediately prior to its repeal.

13(c) Unless otherwise specifically required by law, a contribution
14made to any voluntary contribution fund or account established
15by this chapter shall be subject to the following provisions:

16(1) In the event thatbegin delete noend deletebegin insert aend insert designee isbegin insert notend insert specified, the
17contribution shall, after reimbursement of the direct actual costs
18of the Franchise Tax Board for the collection and administration
19of contributions made under this article, be transferred to the
20General Fund.

21(2) In the event an individual designates a contribution to more
22than one account or fund listed on the tax return, and the amount
23available is insufficient to satisfy the total amount designated, the
24contribution shall be allocated among the designees on a pro rata
25basis.

26(d) (1) If the number of contingent voluntary contribution
27designations that are eligible to be added to the tax return for a
28taxable year is greater than the number of voluntary contribution
29designations removed, those contingent voluntary contribution
30designations that are eligible to be added to the tax return shall be
31added to the tax return in the order of the date of enactment, with
32the voluntary contribution designation with the earliest date of
33enactment to be added first.

34(2) For purposes of this subdivision:

35(A) A contingent voluntary contribution designation means a
36voluntary contribution designation authorized under this chapter
37that may not be added to the tax return until another voluntary
38contribution designation is removed from the tax form.

39(B) The date of enactment of a contingent voluntary contribution
40designation authorized under this chapter shall be the date the act
P3    1authorizing the contingent voluntary contribution designation was
2filed with the Secretary of State. In the event that more than one
3 act authorizing a contingent voluntary contribution designation is
4filed with the Secretary of State on the same date, the act with the
5lowest chapter number will be conclusively presumed to have been
6filed with the Secretary of State before any other act authorizing
7a contingent voluntary contribution designation with a higher
8number.

9(e) Notwithstanding subdivision (d), or the contingency language
10of an act prohibiting the addition of a contingent voluntary
11contribution designation until another voluntary contribution
12designation is removed, the Franchise Tax Board may add one or
13more voluntary contribution designations if the board determines
14that space is available on the tax return to accommodate the
15additional voluntary contribution designation.



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