BILL NUMBER: AB 1697	CHAPTERED  08/24/99

	CHAPTER   228
	FILED WITH SECRETARY OF STATE   AUGUST 24, 1999
	APPROVED BY GOVERNOR   AUGUST 23, 1999
	PASSED THE SENATE   AUGUST 16, 1999
	PASSED THE ASSEMBLY   MAY 24, 1999
	AMENDED IN ASSEMBLY   MAY 20, 1999
	AMENDED IN ASSEMBLY   MAY 6, 1999

INTRODUCED BY   Committee on Aging and Long-Term Care (Alquist
(Chair), Leach (Vice Chair), Battin, Dutra, and Soto)

                        APRIL 5, 1999

   An act to amend Section 18724 of the Revenue and Taxation Code,
relating to taxation.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1697, Committee on Aging and Long-Term Care.  Income taxes:
designations:  senior citizens.
   Under the Personal Income Tax Law, taxpayers are allowed until
January 1, 2000, to contribute amounts in excess of their tax
liability for the support of the California Fund for Senior Citizens.

   This bill would extend the operation of those contribution
provisions until January 1, 2005.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 18724 of the Revenue and Taxation Code is
amended to read:
   18724.  (a) This article shall remain in effect only until January
1, 2005, and as of that date is repealed, unless a later enacted
statute, which is enacted before January 1, 2005, deletes that date.

   (b) If the Franchise Tax Board estimates by September 1 that
contributions described in this article made on returns filed in that
calendar year will be less than two hundred fifty thousand dollars
($250,000) for taxable years beginning in 2001, or the adjusted
amount specified in subdivision (c) for any subsequent taxable year,
as may be applicable, then this article is repealed with respect to
taxable years beginning on or after January 1 of that calendar year.
The Franchise Tax Board shall estimate the annual contribution
amount by September 1 of each year using the actual amounts known to
be contributed and an estimate of the remaining year's contributions.

   (c) For each calendar year, beginning with calendar year 2002, the
Franchise Tax Board shall adjust, on or before September 1 of that
calendar year, the minimum estimated 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 September 1 multiplied by the
inflation factor adjustment as specified in 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 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.