BILL NUMBER: AB 563 CHAPTERED
BILL TEXT
CHAPTER 451
FILED WITH SECRETARY OF STATE OCTOBER 11, 2009
APPROVED BY GOVERNOR OCTOBER 11, 2009
PASSED THE SENATE SEPTEMBER 8, 2009
PASSED THE ASSEMBLY SEPTEMBER 11, 2009
AMENDED IN SENATE SEPTEMBER 3, 2009
AMENDED IN SENATE AUGUST 17, 2009
AMENDED IN SENATE JUNE 30, 2009
AMENDED IN ASSEMBLY MAY 4, 2009
AMENDED IN ASSEMBLY APRIL 2, 2009
INTRODUCED BY Assembly Member Cook
FEBRUARY 25, 2009
An act to amend Sections 18707 and 18709 of the Revenue and
Taxation Code, relating to taxation, and declaring the urgency
thereof, to take effect immediately.
LEGISLATIVE COUNSEL'S DIGEST
AB 563, Cook. Personal income taxes: contributions: California
Military Family Relief Fund.
The Personal Income Tax Law allows taxpayers, until January 1,
2015, to designate on their tax returns that a specified amount in
excess of their tax liability be contributed to the California
Military Family Relief Fund to provide financial aid grants to
eligible reserve members of the Armed Forces of the United States who
are California residents and requires all moneys transferred to the
fund, upon appropriation by the Legislature, to be allocated as
specified. Existing law provides that these provisions shall remain
in effect until a specified date or until the Franchise Tax Board
estimates that the contributions made on returns filed in that
calendar year will be less than $250,000 or an adjusted amount.
This bill would require moneys transferred to the fund, upon
appropriation by the Legislature and after allocations to the
Franchise Tax Board and the Controller, to be allocated to the state
Military Department for the establishment of financial aid grants
provided to California National Guard members and reserve members of
the Armed Forces of the United States, as specified. This bill would
revise the requirements in determining the minimum contribution
amount, for calendar year 2009, to allow for a minimum contribution
amount of $250,000, without adjustment, and would resume the
adjustment of the minimum contribution amount beginning in the 2010
calendar year. This bill would additionally make findings with regard
to the public purpose served by the bill.
This bill would declare that it is to take effect immediately as
an urgency statute.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 18707 of the Revenue and Taxation Code is
amended to read:
18707. All moneys transferred to the California Military Family
Relief Fund, 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 pursuant to this
article.
(b) (1) To the state Military Department for the establishment of
financial aid grants to California National Guard members and reserve
members of the Armed Forces of the United States who are California
residents, and who have been called to active duty. The state
Military Department shall establish eligibility criteria for the
grants.
(2) It is the intent of the Legislature that every qualified
California National Guard or reserve member, regardless of branch, in
need of emergency assistance be able to receive a grant.
(3) In addition to criteria established by the state Military
Department pursuant to paragraph (1), the California National Guard
members and reserve members of the Armed Forces of the United States
who are California residents shall show proof of all of the following
to be eligible to receive a grant:
(A) Membership in the California National Guard or a reserve
component of the Armed Forces of the United States.
(B) Residency in California.
(C) Deployment to active duty for at least 60 consecutive days.
(D) One of the following:
(i) The military salary of the member, combined with any ongoing
partial receipt of civilian salary, has decreased by 10 percent or
more from the member's civilian salary, or the household income of
the member's family has decreased by 10 percent or more from the
member's household income prior to deployment.
(ii) The member, within six months of returning from active duty,
has experienced a 10-percent loss, or greater, in income, compared to
predeployment income, as a direct result of deployment.
(iii) The member was injured while serving on active duty and has
been discharged from federal active duty and is actively seeking
assistance through the United States Department of Veterans' Affairs
with regard to disability compensation benefits or treatment, or
both. Application for a cash grant under this section shall be
submitted within 18 months of being released from federal military
active duty, along with written substantiation demonstrating that the
member's current financial hardship is a direct result of a military
deployment and an injury sustained during the deployment.
(4) Grants awarded pursuant to this article may only be used for
any of the following: food, housing, child care, utilities, medical
services, medical prescriptions, insurance, and vehicle-related
payments.
(5) California National Guard members and reserve members of the
Armed Forces of the United States who are California residents shall
not be eligible to receive a grant if the member receives a punitive
discharge or an administrative discharge with service characterized
as under other than honorable conditions.
(6) Reserve members of the Armed Forces of the United States who
are awarded grants pursuant to this article may be required to
receive counseling, within a specified time period, as a condition of
the grants.
SEC. 2. Section 18709 of the Revenue and Taxation Code is amended
to read:
18709. (a) This article shall, subject to subdivision (b), remain
in effect only until January 1, 2015, and as of that date is
repealed, unless a later enacted statute, that is enacted before
January 1, 2015, deletes or extends that date.
(b) (1) By September 1, 2006, and by September 1 of each
subsequent calendar year that the California Military Family Relief
Fund appears on a tax return, the Franchise Tax Board shall do all 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) Provide written notification to the Adjutant General of the
amount determined in subparagraph (A).
(C) 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
contributions estimated to be received during a calendar year will
not at least equal the minimum contribution amount for the calendar
year, this article is repealed with respect to taxable years
beginning on or after January 1 of that calendar year.
(3) For purposes of this section:
(A) Except as provided in subparagraph (B), the minimum
contribution amount for a calendar year means two hundred fifty
thousand dollars ($250,000) for the 2006 calendar year or the minimum
contribution amount adjusted pursuant to subdivision (c).
(B) For calendar year 2009, the minimum contribution amount for a
calendar year means two hundred fifty thousand dollars ($250,000).
(c) For each calendar year, beginning with calendar year 2007,
other than calendar year 2009, 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) (A) The minimum contribution amount for the calendar year
shall be an amount equal to the product of the minimum contribution
amount for the prior calendar year multiplied by the inflation factor
adjustment as specified in paragraph (2) of subdivision (h) of
Section 17041, rounded off to the nearest dollar.
(B) Notwithstanding subparagraph (A), the minimum contribution
amount for calendar year 2010, shall be two hundred eighty-three
thousand six hundred twenty-eight dollars ($283,628) 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.
(e) (1) Notwithstanding the amendments made to this section by
Chapter 645 of the Statutes of 2006, if, by September 1, 2006, the
Franchise Tax Board determines that the amount of contributions
estimated to be received during the 2006 calendar year will not be at
least two hundred fifty thousand dollars ($250,000), this article is
repealed with respect to returns filed for taxable years beginning
on or after January 1, 2006.
(2) The amendments made by the act adding this paragraph shall
apply with respect to contributions received during the 2009 calendar
year.
SEC. 3. The Legislature finds and declares that a statewide public
purpose is served in applying the lowered minimum contribution
threshold beginning January 1, 2009, because the population of the
state as a whole benefits from the availability of the financial aid
grants received by California National Guard members and reserve
members of the Armed Forces of the United States who are California
residents.
SEC. 4. This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect. The facts constituting the necessity are:
In order to provide immediate financial aid grants to California
National Guard members and reserve members of the Armed Forces of the
United States who are California residents, it is necessary that
this act take effect immediately.