Amended in Assembly May 12, 2016

Amended in Assembly March 18, 2016

California Legislature—2015–16 Regular Session

Assembly BillNo. 2371


Introduced by Assembly Member Frazier

February 18, 2016


An act to 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: 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 tobegin insert the State Department of Developmental Services for disbursement betweenend insert the Special Olympics Northern California and the Special Olympics Southern California for the purpose of funding activities of the Specialbegin delete Olympics,end deletebegin insert Olympics in support of children and adults with intellectual disabilities,end insert as provided.begin insert The bill would authorize the State Department of Developmental Services to use up to 3% of the moneys allocated to it for administrative costs.end insert

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 2 (commencing with Section 18706) is
2added to Chapter 3 of Part 10.2 of Division 2 of the Revenue and
3Taxation Code
, to read:

4 

5Article 2.  Special Olympics Fund
6

 

7

18706.  

(a) Any individual may designate on the tax return that
8a contribution in excess of the tax liability, if any, be made to the
9Special Olympics Fund established by Section 18707 to be used
10by the Special Olympics Northern California and the Special
11Olympics Southern California.

12(b) The contribution shall be in full dollar amounts and may be
13made individually by each signatory on the joint return.

14(c) A designation under subdivision (a) shall be made for any
15taxable year on thebegin delete initialend deletebegin insert originalend insert return for that taxable year, and
16once made shall be irrevocable. If payments and credits reported
17on the return, together with any other credits associated with the
18individual’s account, do not exceed the individual’s tax liability,
19the return shall be treated as though no designation has been made.

20(d) (1) The Franchise Tax Board shall revise the form of the
21return to include a space labeled “Special Olympics Fund” to allow
22for the designation permitted under subdivision (a). The form shall
23also include in the instructions information that the contribution
24may be in the amount of one dollar ($1) or more and that the
25contribution shall be used to conduct the activities of the Special
26Olympics Northern California and the Special Olympics Southern
27
begin delete California.end deletebegin insert California in support of children and adults with
28intellectual disabilities.end insert

29(2) Notwithstanding paragraph (1), a voluntary contribution
30designation for the Special Olympics Fund shall not be added on
31the tax return until another voluntary contribution designation is
32removed or space is available, whichever occurs first.

P3    1(e) A deduction shall be allowed under Article 6 (commencing
2with Section 17201) of Chapter 3 of Part 10 for any contribution
3made pursuant to subdivision (a).

4

18707.  

There is hereby established in the State Treasury the
5Special Olympics Fund to receive contributions made pursuant to
6Section 18706. The Franchise Tax Board shall notify the Controller
7of both the amount of money paid by taxpayers in excess of their
8tax liability and the amount of refund money that taxpayers have
9designated pursuant to Section 18706 to be transferred to the
10Special Olympics Fund. The Controller shall transfer from the
11Personal Income Tax Fund to the Special Olympics Fund an
12amount not in excess of the sum of the amounts designated by
13individuals pursuant to Section 18706 for payment into that fund.

14

18708.  

All moneys transferred to the Special Olympics Fund
15pursuant to Section 18707, upon appropriation by the Legislature,
16shall be allocated as follows:

17(a) To the Franchise Tax Board and the Controller for
18reimbursement of all costs incurred by the Franchise Tax Board
19and the Controller in connection with their duties under this article.

20(b) begin deleteThe end deletebegin insertTo the State Department of Developmental Services
21where the end insert
balance shall bebegin delete dividedend deletebegin insert disbursedend insert between the Special
22Olympics Northern California and Special Olympics Southern
23California based on the amount of donations provided by taxpayers
24in each organization’s jurisdiction based on the county of the
25taxpayer contributing, for the purpose of supporting children and
26adults with intellectual disabilities.begin insert The State Department of
27Developmental Services shall be responsible for overseeing that
28disbursement and may use up to 3 percent of the moneys allocated
29to it for administrative costs. The Special Olympics Northern
30California and the Special Olympics Southern California shall not
31use the moneys received pursuant to this article for administrative
32costs.end insert

33

18709.  

(a) Except as otherwise provided in paragraph (2) of
34subdivision (b), this article shall remain in effect only until January
351 of the fifth taxable year following the first appearance of the
36Special Olympics Fund on the personal income tax return, and is
37repealed as of December 1 of that year.

38(b) (1) By September 1 of the second calendar year and each
39subsequent calendar year that the Special Olympics Fund appears
P4    1on the tax return, the Franchise Tax Board shall do both of the
2following:

3(A) Determine the minimum contribution amount required to
4 be received during the next calendar year for the fund to appear
5on the tax return for the taxable year that includes that next calendar
6year.

7(B) Determine whether the amount of contributions estimated
8to be received during the calendar year will equal or exceed the
9minimum contribution amount determined by the Franchise Tax
10Board for the calendar year pursuant to subparagraph (A). The
11Franchise Tax Board shall estimate the amount of contributions
12to be received by using the actual amounts received and an estimate
13of the contributions that will be received by the end of that calendar
14year.

15(2) If the Franchise Tax Board determines that the amount of
16the contributions estimated to be received during a calendar year
17will not at least equal the minimum contribution amount for the
18calendar year, this article shall be inoperative with respect to
19taxable years beginning on or after January 1 of that calendar year
20and shall be repealed on December 1 of that year.

21(3) For purposes of this section, the minimum contribution
22amount for a calendar year means two hundred fifty thousand
23dollars ($250,000) for the second calendar year after the first
24appearance of the Special Olympics Fund on the personal income
25tax return or the minimum contribution amount as adjusted
26pursuant to subdivision (c).

27(c) For each calendar year, beginning with the third calendar
28year after the first appearance of the Special Olympics Fund on
29the personal income tax return, the Franchise Tax Board shall
30adjust, on or before September 1 of that calendar year, the
31minimum contribution amount specified in subdivision (b) as
32follows:

33(1) The minimumbegin delete estimatedend delete contribution amount for the calendar
34year shall be an amount equal to the product of the minimum
35begin delete estimatedend delete contribution amount for thebegin insert priorend insert calendar year
36multiplied by the inflation factor adjustment as specified in
37subparagraph (A) of paragraph (2) of subdivision (h) of Section
3817041, rounded off to the nearest dollar.

39(2) The inflation factor adjustment used for the calendar year
40shall be based on the figures for the percentage change in the
P5    1California Consumer Price Index for all items received on or before
2August 1 of the calendar year pursuant to paragraph (1) of
3subdivision (h) of Section 17041.

begin delete

4(d) Notwithstanding the repeal of this article, any contribution
5amounts designated pursuant to this article prior to its repeal shall
6continue to be transferred and disbursed in accordance with this
7article as in effect immediately prior to that repeal.

end delete


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