BILL ANALYSIS Ó
AB 764
Page 1
ASSEMBLY THIRD READING
AB 764 (Swanson)
As Amended May 27, 2011
Majority vote
REVENUE & TAXATION 9-0 APPROPRIATIONS 17-0
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|Ayes:|Perea, Donnelly, Beall, |Ayes:|Fuentes, Harkey, |
| |Charles Calderon, | |Blumenfield, Bradford, |
| |Cedillo, Fuentes, Gordon, | |Charles Calderon, Campos, |
| |Harkey, Nestande | |Davis, Donnelly, Gatto, |
| | | |Hall, Hill, Lara, |
| | | |Mitchell, Nielsen, Norby, |
| | | |Solorio, Wagner |
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| | |
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SUMMARY : Authorizes the addition of the Child Victims of Human
Trafficking 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 all costs incurred in
administering the checkoff; and,
b) To the California Emergency Management Agency, which
will administer the funds granted to the community-based
organizations that meet the standards described in Penal
Code Section 13837 and that agree to use the funds to
provide services to minors, who are victims of human
trafficking.
3)Provides for the Fund provisions' automatic repeal on either
January 1 of the fifth taxable year following the Fund's first
appearance on the PIT return or on January 1 of an earlier
AB 764
Page 2
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 for 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 : FTB estimates annual revenue losses of roughly
$20,000 resulting from itemized deductions.
COMMENTS :
The author has provided the following statement in support of
this bill:
Nearly 300,000 American children and youth are estimated to
be at risk of child sexual exploitation each year. There
are many organizations throughout the state that help to
provide support services to young men and women who have
been victimized by sexual exploitation. This bill will
facilitate these important treatment services by providing
a funding mechanism to support organizations that serve
sexually exploited minors.
Assembly Revenue and Taxation Committee Staff Comments:
1)So Many Causes, So Little Space: There are countless worthy
causes that would benefit from the inclusion of a new VCF on
the state's income tax returns. At the same time, space on
the return is limited. Thus, it could be argued that the
current system for adding VCFs to the form is subjective and
essentially rewards causes that can convince the Legislature
to include their fund on the form.
AB 764
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2)Suggested Amendment: Strike the reference to the
Victim-Witness Assistance Fund and replace it with the new
Fund name.
3)Related Legislation: The following related bills have been
introduced in the current Legislative Session:
a) AB 233 (Hall) would add the California YMCA Youth and
Government Fund to the form;
b) AB 564 (Smyth) would, among other things, add the
Municipal Shelter Spay-Neuter Fund to the form; and,
c) AB 971 (Monning) would extend the current repeal date
for the California Sea Otter Fund.
Analysis Prepared by : M. David Ruff / REV. & TAX. / (916)
319-2098
FN: 0001007