Amended in Assembly June 16, 2014

Amended in Senate April 7, 2014

Senate Bill No. 997

Introduced by Senator Morrell

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(Principal coauthor: Assembly Member Alejo)

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(Coauthors: Senators Gaines and Jackson)

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(Coauthors: Assembly Members Brown, Buchanan, Cooley, Fong, Harkey, Linder, Mansoor, Stone, Wagner, and Waldron)

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February 13, 2014

An act to amend Section 18724 of begin insert , and to add and repeal Article 3.5 (commencing with Section 18725) of Chapter 3 of Part 10.2 of Division 2 of, end insert the Revenue and Taxation Code, relating to taxation.

LEGISLATIVE COUNSEL’S DIGEST

SB 997, as amended, Morrell. Voluntary contributions: California Fund for Senior Citizens.

Under the Personal Income Tax Law, taxpayers are allowed to contribute amounts in excess of their tax liability for the support of the California Fund for Senior Citizens until the year in which the minimum contribution is not received, or January 1, 2020, whichever occurs first.

This bill would begin delete eliminate the requirement that these contributions reach the minimum contribution amount end delete begin insert repeal these provisions and would instead allow a taxpayer, for taxable years beginning on or after January 1, 2014, to designate an amount in excess of tax liability to be deposited to the California Senior Legislature Fund, which the bill would create. This bill would require moneys transferred to the California Senior Legislature Fund, upon appropriation by the Legislature, to be allocated to the Franchise Tax Board and Controller, as provided, and to the California Senior Legislature for the purpose of funding the activities of the California Senior Legislature, as provided end insert .

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This bill would repeal these voluntary contribution provisions by a specified date or if contributions made on returns would be less than a specified amount, by an earlier date as provided.

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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 18724 of the Revenue and Taxation Code
is amended to read:

18724.  

(a)  begin delete Except as otherwise provided in subdivision (b),
this end delete begin insert This end insert article shall remain in effect only for taxable years
beginning before January 1, begin delete 2020, end delete begin insert 2014, end insert and as of December 1,
begin delete 2020, end delete begin insert 2014, end insert is repealed.

(b) 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.

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begin insert SEC. 2. end insert   

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begin insert Article 3.5 (commencing with Section 18725) is added
to Chapter 3 of Part 10.2 of Division 2 of the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

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Article begin insert 3.5. end insert   California Senior Legislature Fund

 

begin insert 18725. end insert   

(a) For taxable years beginning on or after January
1, 2014, any individual may designate on the tax return that a
contribution in excess of the tax liability, if any, be made to the
California Senior Legislature Fund established by Section 18726
to be used to conduct the sessions of the California Senior
Legislature and to support its ongoing activities on behalf of older
persons.

(b) The contribution shall be in full dollar amounts and may be
made individually by each signatory on the joint return.

(c) A designation under subdivision (a) shall be made for any
taxable year on the initial return for that taxable year, and once
made shall be irrevocable. If payments and credits reported on
the return, together with any other credits associated with the
individual’s account, do not exceed the individual’s tax liability,
the return shall be treated as though no designation has been
made.

(d) If an individual designates a contribution to more than one
account or fund listed on the tax return, and the amount available
is insufficient to satisfy the total amount designated, the
contribution shall be allocated among the designees on a pro rata
basis.

(e) The Franchise Tax Board shall revise the form of the return
to include a space labeled “California Senior Legislature Fund”
to allow for the designation permitted under subdivision (a). The
form shall also include in the instructions information that the
contribution may be in the amount of one dollar ($1) or more and
that the contribution shall be used to conduct the sessions of the
California Senior Legislature and to support its ongoing activities
on behalf of older persons.

(f) A deduction shall be allowed under Article 6 (commencing
with Section 17201) of Chapter 3 of Part 10 for any contribution
made pursuant to subdivision (a).

begin insert 18726. end insert   

There is hereby established in the State Treasury the
California Senior Legislature Fund to receive contributions made
pursuant to Section 18725. The Franchise Tax Board shall notify
the Controller of both the amount of money paid by taxpayers in
excess of their tax liability and the amount of refund money that
taxpayers have designated pursuant to Section 18725 to be
transferred to the California Senior Legislature Fund. The
Controller shall transfer from the Personal Income Tax Fund to
the California Senior Legislature Fund an amount not in excess
of the sum of the amounts designated by individuals pursuant to
Section 18725 for payment into that fund.

begin insert 18728. end insert   

(a) All moneys transferred to the California Senior
Legislature Fund pursuant to Section 18726, upon appropriation
by the Legislature, shall be allocated as follows:

(1) 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 under this article.

(2) The balance to the California Senior Legislature, for its
ongoing activities on behalf of older persons.

(b) All moneys allocated pursuant to paragraph (2) of
subdivision (a) may be carried over from the year in which they
were received and encumbered in any following year.

(c) The funds allocated to the California Senior Legislature for
the purpose of funding the activities of the California Senior
Legislature shall be spent pursuant to the purview of the Joint
Rules Committee of the California Senior Legislature in a manner
consistent with the bylaws of the California Senior Legislature,
established through a majority vote of the California Senior
Legislature.

begin insert 18729. end insert   

(a) Except as otherwise provided in subdivision (b),
this article shall remain in effect only for taxable years beginning
before January 1, 2019, and as of December 1, 2019, is repealed.

(b) (1) By September 1, 2015, and by September 1 of each
subsequent calendar year that the California Senior Legislature
Fund appears on the 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 California Senior
Legislature 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
the contributions estimated to be received during a calendar year
will not at least equal the minimum contribution amount for the
calendar year, this article shall be inoperative with respect to
taxable years beginning on or after January 1 of that calendar
year and shall be repealed on December 1 of that year.

(3) For purposes of this section, the minimum contribution
amount for a calendar year means two hundred fifty thousand
dollars ($250,000) for the second calendar year after the first
appearance of the California Senior Legislature Fund on the
personal income tax return or the minimum contribution amount
as adjusted pursuant to subdivision (c).

(c) For each calendar year, beginning with the third calendar
year after the first appearance of the California Senior Legislature
Fund on the personal income tax return, 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) The minimum estimated contribution amount for the calendar
year shall be an amount equal to the product of the minimum
estimated contribution amount for the calendar year multiplied
by the inflation factor adjustment as specified in subparagraph
(A) of 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 for all items 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.

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