BILL ANALYSIS Ó
AB 764
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 764 (Swanson)
As Amended July 5, 2011
Majority vote
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|ASSEMBLY: |74-2 |(June 1, 2011) |SENATE: |36-1 |(August 29, |
| | | | | |2011) |
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Original Committee Reference: REV. & TAX.
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.
The Senate amendments strike the reference to the Victim-Witness
Assistance Fund and replace it with the new Fund name.
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.
AS PASSED BY THE ASSEMBLY , this bill:
1)Established the Fund in the State Treasury.
2)Provided 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,
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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)Provided for the Fund provisions' automatic repeal on either
January 1st of the fifth taxable year following the Fund's
first appearance on the PIT return or on January 1st 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.
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.
2)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
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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: 0001807