BILL NUMBER: AB 2625	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Solorio

                        FEBRUARY 24, 2012

   An act to add Chapter 3.5 (commencing with Section 18900) to Part
10.2 of Division 2 of, and to add Section 19304 to, the Revenue and
Taxation Code, relating to taxation.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2625, as introduced, Solorio. Franchise Tax Board: returns:
Scholarshare.
   The Golden State Scholarshare Trust Act establishes the Golden
State Scholarshare Trust, under the administration of the
Scholarshare Investment Board, to provide financial aid for
postsecondary education costs of participating students. Existing law
requires the Franchise Tax Board to make a refund to a taxpayer of
any overpayment of taxes. Existing law authorizes taxpayers to
contribute their refunds for the support of specified funds or
accounts.
   This bill would authorize a taxpayer to designate on the tax
return that a contribution in excess of tax liability, as specified,
be deposited by the Franchise Tax Board to the credit of the taxpayer'
s Scholarshare qualified tuition program account under the Golden
State Scholarshare College Savings Trust program. This bill would
require the Franchise Tax Board to revise the form of the return to
include the necessary information that will allow a taxpayer to make
this designation, as provided.
   This bill would also require the board to revise the taxpayer
return form to allow a taxpayer to open a Scholarshare qualified
tuition program account under the Golden State Scholarshare College
Savings Trust program, and would require the Scholarshare Investment
Board to provide the board with the necessary information needed to
revise that form.
   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.  Chapter 3.5 (commencing with Section 18900) is added to
Part 10.2 of Division 2 of the Revenue and Taxation Code, to read:
      CHAPTER 3.5.  DIRECTED DEPOSITS


   18900.  (a) A taxpayer may designate on the tax return that a
contribution in excess of tax liability, if any, be deposited to the
credit of the taxpayer's Scholarshare qualified tuition program
account under the Golden State Scholarshare College Savings Trust
program.
   (b) The designation shall be allowed only if the designation is a
full dollar amount that is in excess of one dollar ($1).
   (c) The Franchise Tax Board shall revise the form of the return to
include a space to allow the designation permitted under subdivision
(a), and any other information that may be necessary to carry out
this chapter, including, but not limited to, the following:
   (1) The amount of the designation.
   (2) The routing number and account number of the Scholar share
qualified tuition program.
   (d) If the tax payments and the designation reported on the return
do not exceed the tax liability, if any, shown thereon, the tax
return shall be treated as though the designation had not been made.
   (e) The designation authorized under subdivision (a) shall be
limited to one Scholar share qualified tuition program per return.
   (f) For purposes of this section, "Golden State Scholar share
College Savings Trust" has the meaning set forth in subdivision (e)
of Section 69980 of the Education Code.
   18901.  If a taxpayer designates a voluntary contribution pursuant
to Chapter 3 (commencing with Section 18701) and a directed deposit
pursuant to this chapter, and the amount in excess of tax liability
is less than the total amount designated, the amount in excess of tax
liability shall be allocated among the designees on a pro rata
basis.
  SEC. 2.  Section 19304 is added to the Revenue and Taxation Code,
to read:
   19304.  (a) The Franchise Tax Board shall revise the taxpayer
return form, for 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 to open a Scholar share qualified tuition
program account under the Golden State Scholar share College Savings
Trust program.
   (b) The Scholar share Investment Board shall provide the Franchise
Tax Board with the necessary information needed to revise the
taxpayer return form to allow a taxpayer to open a Scholar share
qualified tuition program account under the Golden State Scholar
share College Savings Trust program.
   (c) For purposes of this section, "Golden State Scholar share
College Savings Trust" has the meaning set forth in subdivision (e)
of Section 69980 of the Education Code.