BILL NUMBER: AB 2371 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MARCH 18, 2016
INTRODUCED BY Assembly Member Frazier
FEBRUARY 18, 2016
An act to amend Section 18871 add and
repeal Article 2 (commencing with Section 18706) of Chapter 3 of Part
10.2 of Division 2 of the Revenue and Taxation Code, relating
to taxation.
LEGISLATIVE COUNSEL'S DIGEST
AB 2371, as amended, Frazier. Voluntary contributions.
contributions: Special Olympics Fund.
Under existing law, taxpayers are allowed to contribute amounts in
excess of their personal income tax liability for the support of
various funds. Existing law also contains administrative provisions
that are generally applicable to voluntary contributions.
This bill would allow a taxpayer to designate an amount in excess
of personal income tax liability to be deposited to the Special
Olympics Fund, which the bill would create. The bill would require
moneys transferred to the Special Olympics Fund, upon appropriation
by the Legislature, to be allocated to the Franchise Tax Board and
the Controller, as provided, and to the Special Olympics Northern
California and the Special Olympics Southern California for the
purpose of funding activities of the Special Olympics, as provided.
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
yes . State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Article 2 (commencing with Section
18706) is added to Chapter 3 of Part 10.2 of Division 2 of the
Revenue and Taxation Code , to read:
Article 2. Special Olympics Fund
18706. (a) Any individual may designate on the tax return that a
contribution in excess of the tax liability, if any, be made to the
Special Olympics Fund established by Section 18707 to be used by the
Special Olympics Northern California and the Special Olympics
Southern California.
(b) The contribution shall be in full dollar amounts and may be
made individually by each signatory on the joint return.
(c) A designation under subdivision (a) shall be made for any
taxable year on the initial 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) (1) The Franchise Tax Board shall revise the form of the
return to include a space labeled "Special Olympics 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 conduct the activities of the Special
Olympics Northern California and the Special Olympics Southern
California.
(2) Notwithstanding paragraph (1), a voluntary contribution
designation for the Special Olympics Fund shall not be added on the
tax return until another voluntary contribution designation is
removed or space is available, whichever occurs first.
(e) 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).
18707. There is hereby established in the State Treasury the
Special Olympics Fund to receive contributions made pursuant to
Section 18706. 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 18706 to be transferred to the Special
Olympics Fund. The Controller shall transfer from the Personal
Income Tax Fund to the Special Olympics Fund an amount not in excess
of the sum of the amounts designated by individuals pursuant to
Section 18706 for payment into that fund.
18708. All moneys transferred to the Special Olympics Fund
pursuant to Section 18707, 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) The balance shall be divided between the Special Olympics
Northern California and Special Olympics Southern California based on
the amount of donations provided by taxpayers in each organization's
jurisdiction based on the county of the taxpayer contributing, for
the purpose of supporting children and adults with intellectual
disabilities.
18709. (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 Special Olympics 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 Special Olympics Fund appears on
the tax return, the Franchise Tax Board shall do both 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 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 Special Olympics 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 Special Olympics 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 estimated contribution amount for the calendar
year shall be an amount equal to the product of the minimum estimated
contribution amount for the 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.
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 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 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.