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AB-846 Voluntary contributions: California YMCA Youth and Government Voluntary Tax Contribution Fund.(2017-2018)

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Date Published: 05/16/2017 04:00 AM
AB846:v97#DOCUMENT

Amended  IN  Assembly  May 15, 2017
Amended  IN  Assembly  May 02, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 846


Introduced by Assembly Member Cooley

February 16, 2017


An act to add and repeal Article 3 (commencing with Section 18716) of Chapter 3 of Part 10.2 of Division 2 of the Revenue and Taxation Code, relating to taxation, and making an appropriation therefor.


LEGISLATIVE COUNSEL'S DIGEST


AB 846, as amended, Cooley. Voluntary contributions: California YMCA Youth and Government Voluntary Tax Contribution Fund.
Existing law authorizes an individual to contribute amounts in excess of his or her tax liability for the support of specified funds. Under existing law, there are general administrative provisions applicable to these voluntary contributions, which, among other things, specify when a voluntary contribution is to be placed on the return, provide for the disbursement of contributions following repeal of the fund provisions, and require undesignated funds to be transferred to the General Fund.
Existing law also requires that when adding a new voluntary tax contribution fund or extending the operation of an existing voluntary tax contribution fund that the words “voluntary tax contribution” be included in the name of the fund, that the administering agency comply with specified Internet Web site reporting requirements, that the fund provisions remain in effect only until January 1 of the 7th calendar year following the first appearance of the voluntary tax contribution on the personal income tax return, that the required calendar year minimum contribution amount for the fund to continue appearing on the return is $250,000, and that the contributions be continuously appropriated from the fund to the administering entity.
This bill would allow an individual to designate on his or her tax return that a specified amount in excess of his or her tax liability be transferred to the California YMCA Youth and Government Voluntary Tax Contribution Fund, which would be created by this bill. The bill would conform with those aforementioned requirements by continuously appropriating those funds to the Franchise Tax Board and the Controller for administrative costs and to the State Department of Education for distribution to the California YMCA Youth and Government Program and to the California YMCA Youth and Government Board of Directors to provide grants for civic education and mock legislative programs, as specified; providing that the fund provisions remain in effect only until January 1 of the 7th calendar year following the 1st appearance of the California YMCA Youth and Government Voluntary Tax Contribution Fund on the personal income tax return and repealing the provisions as of December 1 of that year unless the fund previously has not equaled or exceeded an adjusted minimum contribution amount; and requiring the State Department of Education to comply with those Internet Web site reporting requirements. The bill would set the minimum contribution amount at $100,000. By continuously appropriating these funds, the bill would make an appropriation.
Vote: MAJORITY   Appropriation: YES   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Article 3 (commencing with Section 18716) is added to Chapter 3 of Part 10.2 of Division 2 of the Revenue and Taxation Code, to read:
Article  3. California YMCA Youth and Government Voluntary Tax Contribution Fund

18716.
 (a) An individual may designate on the personal income tax return that a contribution in excess of the tax liability, if any, be made to the California YMCA Youth and Government Voluntary Tax Contribution Fund, established by Section 18717. That designation is to be used as a voluntary contribution on the tax return.
(b) The contributions shall be in full dollar amounts and may be made individually by each signatory on a joint return.
(c) A designation under subdivision (a) shall be made for any taxable year on the original return for that taxable year, and once made is 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) The Franchise Tax Board shall revise the form of the return to include a space labeled “California YMCA Youth and Government Voluntary Tax Contribution 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 support civic education programs operated by the YMCA Youth and Government Program, the African American Leaders for Tomorrow Program, the Asian Pacific Youth Leadership Project, and the Chicano Latino Youth Leadership Project.
(e) 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).

18717.
 There is hereby established in the State Treasury the California YMCA Youth and Government Voluntary Tax Contribution Fund to receive contributions made pursuant to Section 18716. 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 18716 to be transferred to the California YMCA Youth and Government Voluntary Tax Contribution Fund. The Controller shall transfer from the Personal Income Tax Fund to the California YMCA Youth and Government Voluntary Tax Contribution Fund an amount not in excess of the sum of the amounts designated by individuals pursuant to Section 18716 for payment into that fund.

18718.
 (a) Notwithstanding Section 13340 of the Government Code, all moneys transferred to the California YMCA Youth and Government Voluntary Tax Contribution Fund pursuant to Section 18716 shall be continuously appropriated and allocated as follows:
(1) To the Franchise Tax Board, the Controller, and the State Department of Education for reimbursement of all costs incurred by the Franchise Tax Board, the Controller, and the State Department of Education in connection with their duties under this article.
(2) The balance to the State Department of Education for distribution as follows:
(A) If the California YMCA Youth and Government Voluntary Tax Contribution Fund collects contributions of three hundred thousand dollars ($300,000) or less, all funds shall be distributed to the California YMCA Youth and Government Program.
(B) If the California YMCA Youth and Government Voluntary Tax Contribution Fund collects contributions in excess of three hundred thousand dollars ($300,000), three hundred thousand dollars ($300,000) shall be distributed to the California YMCA Youth and Government Program and the balance of the fund shall be distributed as follows:
(i) To provide an annual grant of ten thousand dollars ($10,000) to each of the following nonprofit civic youth organizations in order to operate civic education and mock legislative programs:
(I) African American Leaders for Tomorrow Program.
(II) Asian Pacific Youth Leadership Project.
(III) Chicano Latino Youth Leadership Project.
(ii) (I) All remaining funds shall be distributed to the California YMCA Youth and Government Program.
(II) The California YMCA Youth and Government Board of Directors may award additional nonprofit civic youth organizations a grant of up to ten thousand dollars ($10,000) each in order to operate civic education and mock legislative programs. Grants shall be administered by the California YMCA Youth and Government Board of Directors, who shall be responsible for developing criteria, evaluating applications, and awarding grants to eligible organizations.
(b) All moneys allocated pursuant to subdivision (a) of this section may be carried over from the year in which they were received.
(c) Funds distributed to the California YMCA Youth and Government Program, the African American Leaders for Tomorrow Program, the Asian Pacific Youth Leadership Project, the Chicano Latino Youth Leadership Project, and any other nonprofit civic youth organizations awarded a grant pursuant to clause (ii) of subparagraph (B) of paragraph (2) of subdivision (a) shall be used to support program participation by underserved students and for direct program-related expenses.
(d) The funds distributed to the California YMCA Youth and Government Program by the State Department of Education shall be used exclusively for program-related expenses.

18719.
 The State Department of Education shall comply with the Internet Web site reporting requirements described in Section 18873.

18720.
 (a) Except as otherwise provided in subdivision (b), this article shall remain in effect only until January 1 of the seventh calendar year following the first appearance of the California YMCA Youth and Government Voluntary Tax Contribution Fund on the personal income tax return, and is repealed as of December 1 of that year.

(b)(1)By September 1 of the second calendar year and each subsequent calendar year that the California YMCA Youth and Government Voluntary Tax Contribution Fund appears on a 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 YMCA Youth and Government Program 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 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) Notwithstanding Section 18873, for purposes of this section, the “minimum contribution amount” for a calendar year means one hundred thousand dollars ($100,000) for the second calendar year after first appearance of the California YMCA Youth and Government Voluntary Tax Contribution 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 YMCA Youth and Government Voluntary Tax Contribution 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 contribution amount for the calendar year shall be an amount equal to the product of the minimum contribution amount for the prior 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.

(b) (1) By September 1 of the second calendar year and each subsequent calendar year that the California YMCA Youth and Government Voluntary Tax Contribution Fund appears on the tax return, the Franchise Tax Board shall determine whether the amount of contributions estimated to be received during the calendar year will equal or exceed the minimum contribution amount for the calendar year. 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 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) pursuant to subdivision (c) of Section 18873.