BILL NUMBER: AB 2625 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 9, 2012
INTRODUCED BY Assembly Member Solorio
FEBRUARY 24, 2012
An act to amend Section 69992 of the Education Code, and to
add Sections 18409.1 and 18511 to, and 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 amended, Solorio. Golden State Scholarshare
Trust: Franchise Tax Board: returns: Scholarshare.
returns.
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
which provides methods by which an individual can contribute to
an account for paying specified costs for a student for postsecondary
education and requires the board to market the program to
Californians . 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 an
individual 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 individual's qualified tuition
program account under the Golden State Scholarshare College
Savings Trust program account, as defined . 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 an individual to make this
designation, as provided.
This bill would also require the board
Franchise Tax 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 allow an individual to
request information about qualified tuition programs, and would also
require the Franchise Tax Board and the Golden State Scholarshare
Trust to provide information to taxpayers on their respective
Internet Web sites and marketing materials regarding the qualified
tuition program designation on the income tax return .
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 69992 of the
Education Code is amended to read:
69992. (a) The board shall aggressively
market this program to the citizens of the State of California. The
board shall include in its marketing efforts information designed to
educate citizens about the benefits of saving for higher education
and information to help them decide the level of Scholarshare
participation and the combination of savings strategies that may be
appropriate for them. The board shall also develop a mechanism to
keep participants in this program motivated about their current and
future academic endeavors.
(b) The board shall include information regarding the direct
deposit program established by Chapter 3.5 (commencing with Section
18900) of Part 10.2 of Division 2 of the Revenue and Taxation Code on
its Internet Web site and within its marketing materials.
SEC. 2. Section 18409.1 is added to the
Revenue and Taxation Code , to read:
18409.1. The Franchise Tax Board shall include information
regarding the direct deposit program established by Chapter 3.5
(commencing with Section 18900) on its Internet Web site and within
its marketing materials.
SEC. 3. Section 18511 is added to the
Revenue and Taxation Code , to read:
18511. (a) (1) The Franchise Tax Board shall revise the
individual taxpayer return form, for returns required to be filed
pursuant to this article, to allow a taxpayer to request information
regarding the Scholarshare qualified tuition program under the Golden
State Scholarshare College Savings Trust program and other qualified
tuition programs as defined in Section 529 of the Internal Revenue
Code.
(2) The request for information described in paragraph (1) shall
be located near the voluntary contribution checkoff described in
Chapter 3.5 (commencing with Section 18900) and shall include the
following written information:
"If you are interested in receiving information regarding the
Scholarshare qualified tuition program and other qualified tuition
programs and how to sign up for a qualified tuition program, please
check here."
(b) The Franchise Tax Board, with the assistance of the Golden
State Scholarshare College Savings Trust, shall provide taxpayers who
request information pursuant to this section with information
regarding the Scholarshare qualified tuition program under the Golden
State Scholarshare College Savings Trust program and other qualified
tuition programs as defined in Section 529 of the Internal Revenue
Code.
SECTION 1. SEC. 4. 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 An individual
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 individual's 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.
(e) For purposes of this section, "qualified tuition program"
means a Scholarshare qualified tuition program or a qualified tuition
program as defined in Section 529 of the Internal Revenue Code.
18901. If a taxpayer an individual
designates a voluntary contribution pursuant to Chapter 3 (commencing
with Section 18701) 18711) 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.