BILL ANALYSIS
SB 516
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Date of Hearing: August 4, 2010
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
SB 516 (DeSaulnier) - As Amended: June 30, 2010
Policy Committee: Revenue and
Taxation Vote: 7-1
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill establishes the California Youth Legislature and
provides funding from voluntary contributions on personal income
tax returns. Specifically, the bill:
1)Specifies that California Youth Legislature shall be composed
of students ages 14 to 18 years, charged with examining issues
affecting the youth of California and making recommendations
to the Legislature and governor regarding these issues.
2)Provides that annual funding shall be allocated from the
California Youth Leadership Fund pursuant to provisions of SB
2017 (Hall) of 2009-10. The California Youth Leadership Fund
is supported by voluntary taxpayer contributions designated on
personal income tax returns.
3)Authorizes the California Youth Legislature to accept gifts
and grants from any source to help perform its functions.
4)Shall only become operative if it and AB 2107 both are enacted
and become effective on or before January 1, 2011.
FISCAL EFFECT
1)No direct cost or revenues to the state, as this bill merely
establishes the California Youth Legislature and authorizes
funding from voluntary contributions to the California Youth
Leadership Fund.
Under the formula established in AB 2107, the California Youth
Legislature would receive about 40% to 45% of total
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contributions to the California Youth Leadership Fund. As an
example, if total contributions were $400,000, the California
Youth Legislature would receive about $165,000.
COMMENTS
1)Purpose . This bill, along with AB 2017, reflects an agreement
between Asssemblymember Hall and Senator DeSaulnier relating
to personal income tax voluntary contributions for youth
programs. Under the agreement, which is embodied in AB
2017(Hall), voluntary contributions to the California Youth
Leadership fund are allocated based on a formula among five
programs: the California Youth Leadership Project; the
California Youth Legislature; the African American Youth
Leadership Program; the Asian American Youth Leadership
Project, and the Chicano Latino Youth Leadership Project. The
majority of funding would be allocated equally among the first
two programs.
2)AB 2017 (Hall), pending in Senate Appropriations, establishes
the California Youth Leadership Fund and allows taxpayers to
make contributions to the fund on their state income tax
returns.
3)Background . California taxpayers can make voluntary
contributions to any of 15 funds listed on the state personal
income tax return. The contributions are in addition to any
tax liabilities otherwise owed. Thus, they do not directly
reduce state taxes otherwise available to support state-funded
programs in the year in which they are made. However, the
amounts are allowed as an itemized deduction for charitable
contributions on the subsequent year's income tax return.
These voluntary contributions support various purposes,
including cancer research, endangered species preservation,
and emergency food assistance. Contributions to the VCFs have
historically ranged from $300,000 to $800,000 per year. All
but one VCF (the California Seniors Special Fund) have sunset
dates, and most must meet a minimum annual contribution to
remain on the return.
One of the voluntary contribution funds is the California Fund
for Senior Citizens. This fund supports the California Senior
Legislature, which provides model legislation for older
citizens and advocates for the needs of seniors. This bill
establishes a similar program - with similar funding - to
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advocate for youth.
Analysis Prepared by : Brad Williams / APPR. / (916) 319-2081