BILL NUMBER: AB 2371	INTRODUCED
	BILL TEXT


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:

  SECTION 1.  Section 18871 of the Revenue and Taxation Code is
amended to read:
   18871.  In implementing this chapter, all of the following
requirements shall apply:
   (a) Unless otherwise specifically required by law, each voluntary
contribution fund or account established by this chapter shall be
included on the forms of the return through the taxable year
immediately preceding the year of repeal of the article establishing
that voluntary contribution fund or account.
   (b) Notwithstanding the repeal of  any   an
 article of this chapter, the voluntary contribution fund or
account specified in that article shall continue in effect until
December 31 of the year of the repeal of that article, and any
contribution designated pursuant to that article on a timely filed
initial return for the taxable year immediately preceding the date of
repeal shall be transferred and disbursed, and all costs incurred by
the Franchise Tax Board and Controller in connection with the
transfer and disbursement of these contribution amounts shall
continue to be paid, in accordance with that article as it read
immediately prior to its repeal.
   (c) Unless otherwise specifically required by law, a contribution
made to any voluntary contribution fund or account established by
this chapter shall be subject to the following provisions:
   (1) In the event that  no   a  designee
is  not  specified, the contribution shall, after
reimbursement of the direct actual costs of the Franchise Tax Board
for the collection and administration of contributions made under
this article, be transferred to the General Fund.
   (2) In the event 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.
   (d) (1) If the number of contingent voluntary contribution
designations that are eligible to be added to the tax return for a
taxable year is greater than the number of voluntary contribution
designations removed, those contingent voluntary contribution
designations that are eligible to be added to the tax return shall be
added to the tax return in the order of the date of enactment, with
the voluntary contribution designation with the earliest date of
enactment to be added first.
   (2) For purposes of this subdivision:
   (A) A contingent voluntary contribution designation means a
voluntary contribution designation authorized under this chapter that
may not be added to the tax return until another voluntary
contribution designation is removed from the tax form.
   (B) The date of enactment of a contingent voluntary contribution
designation authorized under this chapter shall be the date the act
authorizing the contingent voluntary contribution designation was
filed with the Secretary of State. In the event that more than one
act authorizing a contingent voluntary contribution designation is
filed with the Secretary of State on the same date, the act with the
lowest chapter number will be conclusively presumed to have been
filed with the Secretary of State before any other act authorizing a
contingent voluntary contribution designation with a higher number.
   (e) Notwithstanding subdivision (d), or the contingency language
of an act prohibiting the addition of a contingent voluntary
contribution designation until another voluntary contribution
designation is removed, the Franchise Tax Board may add one or more
voluntary contribution designations if the board determines that
space is available on the tax return to accommodate the additional
voluntary contribution designation.