SB 241

Bill Subjects

Abstract

Existing law authorizes taxpayers to designate amounts in excess of their personal income tax liability for the support of specified voluntary contribution funds. Existing law also contains administrative provisions generally applicable to a new or extended voluntary contribution. Existing law provides for various voluntary contribution funds to be listed on the personal income tax return, including the California Firefighters' Memorial Fund and the California Peace Officer Memorial Foundation Fund, which are both repealed on January 1, 2021, except as otherwise provided. This bill would remove the repeal dates for the California Firefighters' Memorial Fund and the California Peace Officer Memorial Foundation Fund, thereby allowing those voluntary contribution funds to be listed on the personal income tax return indefinitely. This bill would modify the existing voluntary check-off system by establishing the California Voluntary Contribution Program, to be administered by the Franchise Tax Board, to promote charitable giving and provide individual taxpayers' voluntary contributions to qualified applicants. The bill would require the board to, among other things, develop the application for participation by specified charitable organizations, defined as qualified applicants, in the program and establish application and renewal fees. The bill would authorize the board to adopt specified policies and guidelines to develop the program and sustain the integrity of its operations. The bill would authorize the board to adopt regulations necessary to carry out these provisions and would make these regulations subject to the Administrative Procedure Act. The bill would require the board to revise the personal income tax form to allow an individual to make designations to qualified applicants. Beginning January 1, 2021, the bill would allow an individual taxpayer to designate charitable contributions to one or more qualified applicants. The bill would require a qualified applicant wishing to receive contributions to submit an application to the program, including an application fee. The bill would require the board to approve an application if specified requirements are met, thereby making a qualified applicant eligible to receive voluntary contributions. The bill would require these contributions to be transferred from the Personal Income Tax Fund to the California Voluntary Contribution Fund, which the bill would create. The bill would continuously appropriate moneys in the California Voluntary Contribution Fund to the board and the Controller for reimbursement of costs, as provided, and the balance from the California Voluntary Contribution Fund for distribution to each qualified applicant designated by a taxpayer, as specified. The bill, on or before September 1, 2026, and on and before September 1 of each year thereafter, would require the board to determine the top 7 grossing voluntary contribution designees based on the amount of voluntary contributions designated on the personal income tax return during the previous calendar year, and would require the board to revise the personal income tax form on or before January 1, 2027, and on and before January 1 of each year thereafter to allow for a designation by a taxpayer to any of the top 7 grossing voluntary contribution designees, in addition to any voluntary contribution funds established by law and designations made by a taxpayer allowed by this bill. This bill would annually require the board to provide the Legislature with a report containing specified information on the program. The bill would also require this report to be made available to the public. The bill would authorize the California State Auditor to conduct independent financial audits of the program to ensure that the proper charitable organizations receive the appropriate amounts designated for allocation pursuant to the program.