BILL ANALYSIS
AB 658
Page 1
ASSEMBLY THIRD READING
AB 658 (Hayashi)
As Amended January 13, 2010
Majority vote.
REVENUE & TAXATION 8-0 APPROPRIATIONS 17-0
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|Ayes:|Charles Calderon, Beall, |Ayes:|De Leon, Conway, Ammiano, |
| |Coto, Harkey, Ma, | |Bradford, Charles |
| |Nestande, Portantino, | |Calderon, Coto, Davis, |
| |Fong | |Fuentes, Hall, Harkey, |
| | | |Miller, Nielsen, John A. |
| | | |Perez, Skinner, Solorio, |
| | | |Audra Strickland, |
| | | |Torlakson |
| | | | |
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SUMMARY : Authorizes the addition of the California Police
Activities League (CALPAL) Fund (Fund) checkoff to the personal
income tax (PIT) form upon the removal of another voluntary
contribution fund (VCF) from the form. Specifically, this bill :
1)Establishes the Fund in the State Treasury.
2)Provides that all moneys transferred to the Fund, upon
appropriation by the Legislature, shall be allocated as
follows:
a) To the Franchise Tax Board (FTB) and the State
Controller for reimbursement of costs incurred in
administering the checkoff; and,
b) To the State Controller for allocation to the CALPAL to
fund its programs and services.
3)Requires FTB to produce an annual report of Fund moneys
received, by ZIP code. The state CALPAL shall use this report
to allocate contributions received directly to county CALPAL
chapters based on the ZIP code of where the taxpayer
contributions was made. A contribution made by a taxpayer who
is located in a ZIP code that does not have a CALPAL chapter
shall be allocated on a pro rata basis to all the CALPAL
chapters.
AB 658
Page 2
4)Provides for the Fund provisions' automatic repeal on either
January 1 of the fifth taxable year following the Fund's first
appearance on the tax return, or on January 1 of an earlier
year, if FTB estimates that the annual contribution amount
will be less than $250,000, or an adjusted amount for
subsequent years.
EXISTING LAW :
1)Allows taxpayers to designate on their PIT returns a
contribution to any of 15 VCFs.
2)Provides a specific sunset date for each VCF, except the
California Seniors Special Fund.
3)Provides that each VCF must meet a minimum annual contribution
amount to remain in effect, except for the California Seniors
Special Fund, the California Firefighters' Memorial Fund, and
the California Peace Officer Memorial Foundation Fund.
FISCAL EFFECT : Assuming the Fund is added to the 2010 return,
FTB estimates revenue losses, resulting from contribution
deductions, to be roughly 15,000 per year.
COMMENTS : The author states, "AB 658 allows individuals to
designate charitable contributions directly to CALPAL chapters
by checking off a box on their personal income tax returns.
Local CALPAL chapters are community-based organizations started
and operated through the voluntary efforts of concerned law
enforcement officers. CALPAL chapters receive no state funding
and rely exclusively on donors for financial sustainability. AB
658 would establish another funding source for CALPAL to
financially help sustain its operations." The author goes on to
state, "More than 100,000 California children . . . benefit each
year from the 'Cops & Kids' connection program that connects
local law enforcement officers, paid staff, and volunteers with
youth. CALPAL personnel and volunteers serve as role models,
coaches, tutors, mentors, chaperones and program managers.
CALPAL's mission is to build relationships between law
enforcement personnel and community residents, with attention
spent on youth considered to be at-risk in becoming involved in
gangs and crime. CALPAL is the state's largest juvenile crime
prevention program, with 125 local CALPAL chapters."
AB 658
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Committee Staff Comments:
1)CALPAL: The California Police Activities League or CALPAL is
a 501(c)(3) nonprofit organization founded over 35 years ago
by a group of police officers. Based in San Leandro, CALPAL
works to strengthen the connections between law enforcement
officers and the communities they serve, by providing youth
programs that develop discipline, positive self-image, mutual
trust, and respect.
2)Related legislation: There is at least one other bill in the
current legislative session that would add a new VCF to the
PIT return. Specifically, AB 1088 (Fletcher) would create the
California Veterans Homes Fund to provide an additional
funding source for veterans' homes. AB 1088 (Fletcher) is
currently on the Assembly Floor.
Analysis Prepared by : M. David Ruff / REV. & TAX / (916)
319-2098
FN: 0003595