SECTIONS 18705-18709 - California Statutes

REVENUE AND TAXATION CODE

SECTION 18705-18709

18705. (a) Any taxpayer may designate on the tax return that a
contribution in excess of the tax liability, if any, be made to the
California Military Family Relief Fund, established by Section 18706.
That designation is to be used as a voluntary checkoff on the tax
return.
(b) The contributions shall be in full dollar amounts and may be
made individually by each signatory on the joint return.
(c) A designation shall be made for any taxable year on the
initial return for that taxable year, and once made shall be
irrevocable. In the event that payments and credits reported on the
return, together with any other credits associated with the taxpayer'
s account, do not exceed the taxpayer's liability, the return shall
be treated as though no designation has been made. In the event that
no designee is specified, the contribution shall be transferred to
the General Fund, after reimbursement of the direct actual costs of
the Franchise Tax Board for the collection and administration of
funds under this article.
(d) In the event a taxpayer designates a contribution to more than
one account or fund listed on the tax return, and the amount
available for designation 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 forms of the return
to include a space labeled the "California Military Family Relief
Fund" to allow for the designation permitted.
(1) The forms shall 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 provide financial aid grants
to reserve members of the Armed Forces of the United States who are
California residents, who have been called to active duty.
(2) The forms shall also include in the instructions information
that additional contributions may be made at any time to the
California Military Family Relief Fund, from sources other than the
tax form.
(f) Notwithstanding any other provision of law, a voluntary
contribution designation for the California Military Family Relief
Fund may not be added to the tax return until another voluntary
contribution designation is removed.
(g) A deduction shall be allowed under Article 6 (commencing with
Section 17201) of Chapter 3 for any contribution made pursuant to
subdivision (a).

18706. There is in the State Treasury the California Military
Family Relief Fund to receive contributions made pursuant to Section
18705. 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 18705 to be transferred to the
California Military Family Relief Fund. The Controller shall transfer
from the Personal Income Tax Fund to the California Military Family
Relief Fund an amount not in excess of the sum of the amounts
designated by individuals pursuant to Section 18705 for payment into
that fund. The California Military Family Relief Fund shall also
accept contributions from sources other than the tax form, at any
time.

18707. All moneys transferred to the California Military Family
Relief Fund, upon appropriation by the Legislature, shall be
allocated as follows:
(a) 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 pursuant to this
article.
(b) (1) To the state Military Department for the establishment of
financial aid grants to California National Guard members and reserve
members of the Armed Forces of the United States who are California
residents, and who have been called to active duty. The state
Military Department shall establish eligibility criteria for the
grants.
(2) It is the intent of the Legislature that every qualified
California National Guard or reserve member, regardless of branch, in
need of emergency assistance be able to receive a grant.
(3) In addition to criteria established by the state Military
Department pursuant to paragraph (1), the California National Guard
members and reserve members of the Armed Forces of the United States
who are California residents shall show proof of all of the following
to be eligible to receive a grant:
(A) Membership in the California National Guard or a reserve
component of the Armed Forces of the United States.
(B) Residency in California.
(C) Deployment to active duty for at least 60 consecutive days.
(D) One of the following:
(i) The military salary of the member, combined with any ongoing
partial receipt of civilian salary, has decreased by 10 percent or
more from the member's civilian salary, or the household income of
the member's family has decreased by 10 percent or more from the
member's household income prior to deployment.
(ii) The member, within six months of returning from active duty,
has experienced a 10-percent loss, or greater, in income, compared to
predeployment income, as a direct result of deployment.
(iii) The member was injured while serving on active duty and has
been discharged from federal active duty and is actively seeking
assistance through the United States Department of Veterans' Affairs
with regard to disability compensation benefits or treatment, or
both. Application for a cash grant under this section shall be
submitted within 18 months of being released from federal military
active duty, along with written substantiation demonstrating that the
member's current financial hardship is a direct result of a military
deployment and an injury sustained during the deployment.
(4) Grants awarded pursuant to this article may only be used for
any of the following: food, housing, child care, utilities, medical
services, medical prescriptions, insurance, and vehicle-related
payments.
(5) California National Guard members and reserve members of the
Armed Forces of the United States who are California residents shall
not be eligible to receive a grant if the member receives a punitive
discharge or an administrative discharge with service characterized
as under other than honorable conditions.
(6) Reserve members of the Armed Forces of the United States who
are awarded grants pursuant to this article may be required to
receive counseling, within a specified time period, as a condition of
the grants.

18708. The Legislature finds and declares all of the following:
(a) Due to the extended wars and conflicts around the globe,
deployment of reserve members of the Armed Forces of the United
States can average a year or more.
(b) Private companies do not generally offset the difference in
their employees' reduced salaries while serving overseas. Military
families are losing as much as 70 percent of their household income
when a primary income producer serves on active duty.
(c) It is the intent of the Legislature, in enacting this article,
to establish a fund for the granting of relief aid to persons who
are reserve members of the Armed Forces of the United States who are
California residents, who have been called to active duty.

18709. (a) This article shall, subject to subdivision (b), remain
in effect only until January 1, 2015, and as of that date is
repealed, unless a later enacted statute, that is enacted before
January 1, 2015, deletes or extends that date.
(b) (1) By September 1, 2006, and by September 1 of each
subsequent calendar year that the California Military Family Relief
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 Adjutant General 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 is repealed with respect to taxable years
beginning on or after January 1 of that calendar year.
(3) For purposes of this section:
(A) Except as provided in subparagraph (B), the minimum
contribution amount for a calendar year means two hundred fifty
thousand dollars ($250,000) for the 2006 calendar year or the minimum
contribution amount adjusted pursuant to subdivision (c).
(B) For calendar year 2009, the minimum contribution amount for a
calendar year means two hundred fifty thousand dollars ($250,000).
(c) For each calendar year, beginning with calendar year 2007,
other than calendar year 2009, 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) (A) 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 paragraph (2) of subdivision (h) of
Section 17041, rounded off to the nearest dollar.
(B) Notwithstanding subparagraph (A), the minimum contribution
amount for calendar year 2010, shall be two hundred eighty-three
thousand six hundred twenty-eight dollars ($283,628) multiplied by
the inflation factor adjustment as specified in 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 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.
(e) (1) Notwithstanding the amendments made to this section by
Chapter 645 of the Statutes of 2006, if, by September 1, 2006, the
Franchise Tax Board determines that the amount of contributions
estimated to be received during the 2006 calendar year will not be at
least two hundred fifty thousand dollars ($250,000), this article is
repealed with respect to returns filed for taxable years beginning
on or after January 1, 2006.
(2) The amendments made by the act adding this paragraph shall
apply with respect to contributions received during the 2009 calendar
year.