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

NOTE: There are more recent revisions of this legislation. Read Latest Draft

---

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

---

BILL NUMBER: AB 2625	AMENDED
	BILL TEXT

	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
Sections 18409.1  and   ,  18511  , and
19569  to,  and  to add Chapter 3.5
(commencing with Section 18900) to Part 10.2 of Division 2 of, 
and to repeal Section 18900 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 to revise the form of
the return to include the necessary information that will allow an
individual to make this designation, as provided. 
   This bill would require the Franchise Tax Board to revise the
taxpayer return form to allow an individual to request information
about  qualified tuition programs   the
Scholarshare qualified tuition program, as provided  , and would
also require the Franchise Tax Board and the Golden State
Scholarshare Trust to provide information to taxpayers 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.
  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.
  SEC. 3.  Section 18511 is added to the Revenue and Taxation Code,
to read:
   18511.  (a)  (1)    The
Franchise Tax Board shall revise the individual taxpayer return form,
for returns required to be filed pursuant to this article, to allow
a taxpayer to request information regarding the Scholarshare
qualified tuition program under the Golden State Scholarshare College
Savings Trust program  and other qualified tuition programs
as defined in Section 529 of the Internal Revenue Code  .

   (2) 
    (b)  The request for information described in 
paragraph (1)   subdivision (a)  shall be located
near the voluntary contribution checkoff described in Chapter 3.5
(commencing with Section 18900) and shall include the following
written information:

   "If you are interested in receiving information regarding the
Scholarshare qualified tuition program  and other qualified
tuition programs  and how to sign up for a  Scholarshare
 qualified tuition program, please check here."

   (b) The Franchise Tax Board, with the assistance of the Golden
State Scholarshare College Savings Trust, shall provide taxpayers who
request information pursuant to this section with information
regarding the Scholarshare qualified tuition program under the Golden
State Scholarshare College Savings Trust program and other qualified
tuition programs as defined in Section 529 of the Internal Revenue
Code. 
  SEC. 4.  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 one dollar ($1).
   (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. 

   (f) This section shall remain in effect only until January 1,
2020, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2020, deletes or extends
that date. 
   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.
   SEC. 5.    Section 19569 is added to the  
Revenue and Taxation Code   , to read:  
   19569.  (a) Subject to the limitations of this section and federal
law, the Franchise Tax Board may, upon request by a taxpayer as
reflected on a tax return filed by that taxpayer under this part,
provide the Golden State Scholarshare College Savings Trust with the
names and addresses from individual income tax returns required under
Part 10 (commencing with Section 17001) or this part solely for the
purpose of providing information regarding the Scholarshare qualified
tuition program under the Golden State Scholarshare College Savings
Trust program.
   (b) Neither the Golden State Scholarshare College Savings Trust,
nor its agents, nor any of its current or former officers or
employees, shall disclose or use any information obtained pursuant to
this section except as provided in this section.
   (c) The Franchise Tax Board may, from time to time, review the use
of information provided to the Golden State Scholarshare College
Savings Trust pursuant to this section and the Golden State
Scholarshare College Savings Trust shall provide the Franchise Tax
Board with access for that purpose. The reviews shall be limited to
ensuring that the Golden State Scholarshare College Savings Trust
uses the information provided by the Franchise Tax Board only in the
manner specified in subdivision (a). The Franchise Tax Board shall
report all findings to the Golden State Scholarshare College Savings
Trust.