BILL NUMBER: AB 1175	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 15, 2011

INTRODUCED BY   Assembly Member Fletcher
   (Coauthor: Assembly Member Perea)

                        FEBRUARY 18, 2011

   An act to add Section 19304 Revenue and Taxation Code, relating to
taxation.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1175, as amended, Fletcher. Franchise Tax Board: refunds:
direct deposit: 529 savings account.
   Existing law requires the Franchise Tax Board to make a refund to
a taxpayer of any overpayment of taxes. Existing law requires the
Franchise Tax Board to revise the returns to allow a taxpayer to
designate financial institutions for direct deposit of a refund.
   This bill would require the Franchise Tax Board to revise returns
to allow a taxpayer to  explicitly  designate a 529 college
savings account for direct deposit of the taxpayer's refund. 
This bill would also require the Franchise Tax Board to revise
taxpayer form instructions to include the ability of a taxpayer to
directly deposit a portion of the refund into the Golden State
Scholarshare College Savings Trust, as defined. This bill would
require the Scholarshare Investment   Board to provide the
Franchise Tax Board with a description of that trust program before a
date specified by the Franchise Tax Board, and that the revisions be
completed in the most cost-effective manner. 
   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.  Section 19304 is added to the Revenue and Taxation
Code, to read:
   19304.   (a)    The Franchise Tax Board shall
revise returns required to be filed, pursuant to Article 1
(commencing with Section 18501) of Chapter 2 of Part 10.2 of Division
2 to allow a taxpayer, who is an individual, to  explicitly
 designate a 529 college savings account, as provided in Section
529 of the Internal Revenue Code, for direct deposit of the taxpayer'
s refund. 
   (b) The Franchise Tax Board shall revise taxpayer form
instructions to include information about split refund options,
including, but not limited to, the ability of a taxpayer to directly
deposit a portion of the refund into the Golden State Scholarshare
College Savings Trust.  
   (c) The Scholarshare Investment Board shall provide the Franchise
Tax Board with a description of the Golden State Scholarshare College
Savings Trust on or before a specified date provided by the
Franchise Tax Board.  
   (d) The Franchise Tax Board shall revise the return and the
taxpayer form instruction in the most cost-effective manner. For
purposes of the return, cost-effective manner means, but is not
limited to, adding the 529 college savings account to the return as a
type of account to which a direct deposit is made, while utilizing
the current form and manner for purposes of the routing number,
account number, and amount of the direct deposit designation. 

   (e) For purposes of this section, "Golden State Scholarshare
College Savings Trust" has the meaning set forth in subdivision (e)
of Section 69980 of the Education Code.