Bill Text: CA AB2625 | 2011-2012 | Regular Session | Amended

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Bill Title: Golden State Scholarshare Trust: Franchise Tax Board:

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Engrossed - Dead) 2012-08-16 - In committee: Held under submission. [AB2625 Detail]

Download: California-2011-AB2625-Amended.html

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BILL NUMBER: AB 2625	AMENDED
	BILL TEXT

	AMENDED IN SENATE  AUGUST 6, 2012
	AMENDED IN SENATE  JUNE 26, 2012
	AMENDED IN ASSEMBLY  MAY 1, 2012
	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
Section 18409.1 to, and to add and repeal Chapter 3.5 (commencing
with Section 18900) of Part 10.2 of Division 2 of, 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.
   The Golden State Scholarshare Trust Act establishes the Golden
State Scholarshare Trust, under the administration of the
Scholarshare Investment Board, 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 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
individual's qualified tuition program account, as defined.
   This bill would require the Franchise Tax Board and the
Scholarshare Investment Board to provide information 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 when timely
and appropriate.
  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 when timely and appropriate.
  SEC. 3.  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) 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 individual's qualified tuition program account.
   (b) The designation shall be allowed only if the designation is a
full dollar amount  that is in excess  of
twenty-five dollars ($25)  or more .
   (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 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) 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 an individual designates a voluntary contribution
pursuant to Chapter 3 (commencing with Section 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.
   18902.  This chapter shall remain in effect only until January 1,
2020, and as of that date is repealed.