BILL ANALYSIS                                                                                                                                                                                                    �



                                                                            



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          |SENATE RULES COMMITTEE            |                       AB 1796|
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                                       CONSENT


          Bill No:  AB 1796
          Author:   Linder (R), et al.
          Amended:  4/10/14 in Assembly
          Vote:     21

           
           SENATE GOVERNANCE & FINANCE COMMITTEE  :  7-0, 6/18/14
          AYES:  Wolk, Knight, Beall, DeSaulnier, Hernandez, Liu, Walters

           SENATE APPROPRIATIONS COMMITTEE  : Senate Rule 28.8

           ASSEMBLY FLOOR  :  78-0, 5/15/14 (Consent) - See last page for  
            vote


           SUBJECT  :    Franchise Tax Board:  refunds:  direct deposit:   
          taxpayer form

           SOURCE  :     Author


           DIGEST  :    This bill requires the Franchise Tax Board (FTB) to  
          revise the personal income tax return form instructions to  
          include information about directly depositing a refund into the  
          Golden State Scholarshare College Savings Trust.

           ANALYSIS  :    Federal and state law enables taxpayers to save for  
          college by putting money in tax-advantaged investments, a 529  
          college savings account and a Golden State Scholarshare College  
          Savings Trust (ScholarShare) respectively.  After-tax  
          contributions allow earnings to grow tax-deferred, and  
          disbursements, when used for tuition and other qualified  
          expenses, are federal and state tax-free.  
                                                                CONTINUED





                                                                    AB 1796
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          Existing law allows a taxpayer to direct deposit refunds into a  
          checking or savings account, including a ScholarShare account.

          This bill requires the FTB to revise the personal income tax  
          return form instructions, in the most cost effective manner, to  
          include information about the ability of a taxpayer to directly  
          deposit a portion of the refund into the Golden State  
          ScholarShare College Savings Trust.  The ScholarShare Investment  
          Board must provide the FTB with a description of the  
          ScholarShare program on or before a specified date provided by  
          the FTB.  The length of the description is limited to five  
          lines. 

           Comments
          
           According to the author, "AB 1796 encourages college savings by  
          requiring the Franchise Tax Board to revise the personal income  
          tax form instructions to include a brief description of the  
          option for the taxpayer to deposit a portion of their tax refund  
          into the Golden State ScholarShare College Savings Trust."

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No

           SUPPORT  :   (Verified  7/2/14)

          California Community Colleges Chancellor's Office
          California State Students Association

           ASSEMBLY FLOOR  :  78-0, 5/15/14
          AYES: Achadjian, Alejo, Allen, Ammiano, Bigelow, Bloom,  
            Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian  
            Calderon, Campos, Chau, Ch�vez, Chesbro, Conway, Cooley,  
            Dababneh, Dahle, Daly, Dickinson, Donnelly, Eggman, Fong, Fox,  
            Frazier, Beth Gaines, Garcia, Gatto, Gomez, Gonzalez, Gordon,  
            Gorell, Gray, Grove, Hagman, Hall, Harkey, Roger Hern�ndez,  
            Holden, Jones, Jones-Sawyer, Levine, Linder, Logue, Lowenthal,  
            Maienschein, Medina, Melendez, Mullin, Muratsuchi, Nazarian,  
            Nestande, Olsen, Pan, Patterson, Perea, John A. P�rez, V.  
            Manuel P�rez, Quirk, Quirk-Silva, Rendon, Ridley-Thomas,  
            Rodriguez, Salas, Skinner, Stone, Ting, Wagner, Waldron,  
            Weber, Wieckowski, Wilk, Williams, Yamada, Atkins
          NO VOTE RECORDED: Mansoor, Vacancy







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          AB:nl  7/2/14   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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