BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 233|
|Office of Senate Floor Analyses | |
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THIRD READING
Bill No: AB 233
Author: Hall (D)
Amended: 8/6/12 in Senate
Vote: 21
SENATE GOVERNANCE & FINANCE COMMITTEE : 7-0, 7/3/12
AYES: Wolk, Dutton, DeSaulnier, Fuller, Hernandez, La
Malfa, Liu
NO VOTE RECORDED: Kehoe, Yee
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : 78-1, 5/31/11 - See last page for vote
SUBJECT : Personal income taxes: voluntary
contributions: YMCA Youth and Government Fund
SOURCE : California State Alliance of YMCAs
DIGEST : This bill creates the California YMCA Youth and
Government Fund (income tax check off).
ANALYSIS : Existing state law allows taxpayers to
contribute money to one or more of 15 voluntary
contribution funds (VCFs or check-offs) by checking a box
on their state income tax return. California law requires
contributions made through check-offs to be made from
taxpayers' own resources and not from their tax liability,
as is possible on federal tax returns. Check-off amounts
may be claimed as charitable contributions on taxpayers'
CONTINUED
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tax returns during the subsequent year.
The Franchise Tax Board (FTB) designs tax returns to
provide for the designation of contributions to specified
funds either on the return itself or on a separate schedule
that must be attached to the return. With a few
exceptions, VCFs remain on the return until they are either
repealed or fail to meet their minimum contribution amount.
The minimum contribution amounts are adjusted annually for
inflation. For most VCFs, the minimum contribution amount
is $250,000 in the fund's second year. By September 1 of
each year, the FTB must determine the minimum contribution
amount required for each fund to remain on the form for the
following calendar year and whether estimated contributions
to each fund will be less than the minimum contribution
amount for that calendar year. If the FTB estimates that a
fund will fail to meet the minimum contribution amount,
that fund is repealed effective for taxable years beginning
on or after January 1 of the following calendar year.
This bill creates the California YMCA Youth and Government
Fund (Fund). The Fund will be added to the personal income
tax form when another VCF is removed or as soon as space is
available and remain on the form until January 1 of the
fifth taxable year following its first appearance or on
January 1 of an earlier year if the FTB estimates the Fund
will not meet the annually required minimum contribution
amount. All monies transferred to the Fund are allocated
to the FTB and Controller for reimbursement of their costs
and the balance goes to the State Department of Education
for distribution to the California YMCA Youth and
Government Program (YMCA Y&GP) for its ongoing activities
on behalf of youth.
This bill stipulates that if the Fund collects less than
$300,000 in donations, all available monies are distributed
to the YMCA Y&GP. If donations exceed $300,000, the
balance of the Fund is distributed to provide annual grants
of $10,000 each to the African American Leaders for
Tomorrow Project, the Asian Pacific Youth Leadership
Project, and the Chicano Latino Youth Leadership Project.
The YMCA Y&GP Board of Directors may award additional
non-profit civic youth organizations a grant of up to
$10,000 each in order to operate civic education and mock
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legislative programs. All remaining funds are distributed
to the YMCA Y&GP.
Comments
Except for the California Senior Legislature (which is
fully funded by the check off and operates in concert with
the Legislature), the proceeds from the check-offs either
go to quasi-government organizations or to non-profits as a
competitive grant. The following list provides the current
information on all the check offs as well as how many
groups are eligible to receive the funds.
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| Check Off | Amount |Number of Groups that receive |
| | Earned | funds |
|------------------+---------+-------------------------------|
|ALS/Lou Gehrig's |Initial |As many as apply and receive |
|Disease Research |Tax |grants that are provided for |
|Fund |Return |by the monies contributed. |
| |2011 | |
|------------------+---------+-------------------------------|
|Alzheimer's |$462,357 |As many as contract or |
|Disease/Related | |receive grants provided by |
|Disorders Fund | |the monies contributed. |
|------------------+---------+-------------------------------|
|Arts Council Fund |$164,298 |As many as apply and receive |
| | |grants provided by the monies |
| | |contributed. |
|------------------+---------+-------------------------------|
|CA Breast Cancer |$459,694 |As many as apply and receive |
|Research Fund | |grants provided from the |
| | |monies contributed. |
|------------------+---------+-------------------------------|
|CA Cancer |$451,042 |As many as apply and receive |
|Research Fund | |grants provided from the |
| | |monies contributed |
|------------------+---------+-------------------------------|
|CA Firefighters' |$157,166 |1 Group: California Fire |
|Memorial Fund | |Foundation |
|------------------+---------+-------------------------------|
|CA Fund for |$308,763 |1 Group: California Senior |
|Senior Citizens | |Legislature |
|------------------+---------+-------------------------------|
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|CA Peace Officer |$137,782 |1 Group: California Peace |
|Memorial | |Officer Memorial Commission |
|Foundation Fund | | |
|------------------+---------+-------------------------------|
|CA Police |$69,431 |The state CALPAL and county |
|Activities League | |CALPAL chapters |
|(CALPAL) Fund | | |
|------------------+---------+-------------------------------|
|CA Sea Otter Fund |$359,699 |Department of Fish and Game, |
| | |and as many that apply for |
| | |grants and contracts provided |
| | |for by 50% of the monies |
| | |contributed. |
|------------------+---------+-------------------------------|
|CA Seniors |$53,813 |The first $80,000 to the Area |
|Special Fund | |Agency on Aging Advisory |
| | |Council of California and the |
| | |rest to as many area agencies |
| | |that the California |
| | |Department of Aging allocates |
| | |available contributed monies |
| | |to. |
|------------------+---------+-------------------------------|
|CA Veterans Homes |$211,089 |The number of established |
|Fund | |veteran's homes. |
|------------------+---------+-------------------------------|
|Child Victims of |Initial |As many counseling and |
|Human Trafficking |Tax |prevention centers that apply |
|Fund |Return |and receive grants provided |
| |2011 |from monies contributed. |
|------------------+---------+-------------------------------|
|Emergency Food |$598,157 |1 Group: Department of |
|for Families Fund | |social services for the |
| | |Emergency Food Assistance |
| | |Program. |
|------------------+---------+-------------------------------|
|Municipal Shelter |Initial |As many shelters as apply and |
|Spay-Neuter Fund |tax |receive grants provided from |
| |Return |the monies contributed. |
| |2011 | |
|------------------+---------+-------------------------------|
|Rare & Endangered |$605,220 |1 Group: Department of Fish |
|Species | |and Game endangered |
|Preservation | |conservation programs. |
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|Program | | |
|------------------+---------+-------------------------------|
|Safely |$184,866 |1 Group: Department of |
|Surrendered Baby | |Social Services for Safely |
|Fund | |Surrender Baby Law awareness |
| | |programs. |
|------------------+---------+-------------------------------|
|State Children's |$409,043 |1 Group: Department of |
|Trust for the | |Social Services for |
|Prevention of | |prevention and intervention |
|Child Abuse | |programs. |
| | | |
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Related legislation . SB 803 (DeSaulnier) creates the
California Youth Leadership Fund for the California Youth
Leadership Project which the bill creates under the
Department of Education to fund civic engagement for the
state's youth.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 8/8/12)
California State Alliance of YMCAs (source)
AFSCME, AFL-CIO
ARGUMENTS IN SUPPORT : The author states:
The California YMCA Youth & Government Program is a
statewide youth educational program annually involving
more than 2200 high school students in a yearlong "hands
on" civic experience. Since its inception 63 years ago,
the program has successfully used a variety of
activities to encourage high school youth become
involved, responsible and respected citizens. As part
of the YMCA Y&GP, regional student delegations discuss
public policy issues facing the state as well as ways to
implement their solutions through the legislative and
judicial processes. Teen delegates draft legislation,
prepare issue briefs, select governmental positions to
role-play, attend statewide training and election
conferences and run for various offices and leadership
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positions. The program concludes with a Model
Legislature each February at the State Capitol.
Unfortunately, in recent years, costs to operate this
program and participant demand for financial assistance
has greatly increased making it difficult to maintain
and expand this important program for California youth.
AB 233 would allow state taxpayers to voluntarily
contribute to the California YMCA Youth & Government
Fund through a tax check-off donation on their state tax
return. Donations would be used to help finance the
YMCA Youth & Government Program and its ongoing
activities on behalf of youth.
Consistent with current efforts to support the
California Senior Legislature, this measure will allow
California taxpayers to empower young people through an
important program that motivates and inspires youth to
become active citizens in our state.
ASSEMBLY FLOOR : 78-1, 5/31/11
AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Beall,
Bill Berryhill, Block, Blumenfield, Bonilla, Bradford,
Brownley, Buchanan, Butler, Charles Calderon, Campos,
Carter, Cedillo, Chesbro, Conway, Cook, Davis, Dickinson,
Donnelly, Eng, Feuer, Fletcher, Fong, Fuentes, Furutani,
Beth Gaines, Galgiani, Garrick, Gatto, Gordon, Grove,
Hagman, Halderman, Hall, Harkey, Hayashi, Roger
Hernández, Hill, Huber, Hueso, Huffman, Jeffries, Knight,
Lara, Logue, Bonnie Lowenthal, Ma, Mansoor, Mendoza,
Miller, Mitchell, Monning, Morrell, Nestande, Nielsen,
Norby, Olsen, Pan, Perea, V. Manuel Pérez, Portantino,
Silva, Skinner, Smyth, Solorio, Swanson, Torres, Valadao,
Wagner, Wieckowski, Williams, Yamada, John A. Pérez
NOES: Jones
NO VOTE RECORDED: Gorell
AGB:k 8/8/12 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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