BILL NUMBER: AB 2371 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MAY 12, 2016
AMENDED IN ASSEMBLY MARCH 18, 2016
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 to the State Department of
Developmental Services for disbursement between the Special
Olympics Northern California and the Special Olympics Southern
California for the purpose of funding activities of the Special
Olympics, Olympics in support of children and
adults with intellectual disabilities, as provided. The
bill would authorize the State Department of Developmental Services
to use up to 3% of the moneys allocated to it for administrative
costs.
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 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 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 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. California in support of children
and adults with intellectual disabilities.
(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 To the State Department of
Developmental Services where the balance shall be
divided disbursed 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. The State Department of Developmental Services
shall be responsible for overseeing that disbursement and may use up
to 3 percent of the mon eys allocated to it for
administrative costs. The Special Olympics Northern California and
the Special Olympics Southern California shall not use the moneys
received pursuant to this article for administrative costs.
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
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.