BILL ANALYSIS                                                                                                                                                                                                    Ó




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                          SB 164 (Simitian)
          
          Hearing Date: 04/11/2011        Amended: As Introduced
          Consultant: Mark McKenzie       Policy Vote: G&F 6-1
          
















































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          BILL SUMMARY: SB 164 would extend the repeal dates for the State 
          Children's Trust Fund for the Prevention of Child Abuse and the 
          Rare and Endangered Species Preservation Program voluntary 
          contribution funds (VCFs) from January 1, 2013 to January 1, 
          2018.
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          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2011-12      2012-13       2013-14     Fund
           Taxpayer donations (revenue)       Average annual revenues of 
          $1,173                 Special*
                                   from 2014-15 through 2018-19
          Tax revenue loss       Average annual revenue loss of $70General
                                   from 2014-15 through 2018-19
          DSS administration     Minor costs to administer child abuse 
          General
                                   prevention funds
          DFG administration     Minor costs to administer 
          endangeredSpecial**
                                   species preservation funds
          FTB administration     Minor annual administrative costs,General
                                   reimbursed from donations      
          ____________
          * Average annual donations of approximately $563,000 to the 
          State Children's Trust Fund and approximately $610,000 to the 
          Endangered and Rare Fish, Wildlife, and Plant Species 
          Conservation and Enhancement Account.
          ** Fish and Game Preservation Fund
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          ____

          STAFF COMMENTS: This bill meets the criteria for referral to the 
          Suspense File. 

          Currently, there are 15 VCFs, or "check-off" programs, on the 
          personal income tax return which allow taxpayers to donate their 
          own funds for various purposes.  Generally, each tax check-off 
          program has a specific sunset date and an initial minimum 
          contribution amount of $250,000, adjusted annually for 
          inflation, with specified exceptions.  Donations to check-off 
          programs are deductable as charitable contributions on 
          taxpayers' income tax returns during the subsequent tax year.  
          The State Children's Trust Fund for the Prevention of Child 








          SB 164 (Simitian)
          Page 3

          Abuse and the Rare and Endangered Species Program VCFs have both 
          appeared on the state income tax form since 1984, and the 
          minimum contribution amount for both funds for the 2011 tax year 
          is $305,388.  Funds donated to the State Children's Trust Fund 
          are administered by the Department of Social Services (DSS), and 
          funds donated to the Rare and Endangered Species Prevention 
          Program are administered by the Department of Fish and Game 
          (DFG).  Both of these VCFs are set to expire on January 1, 2013.



          SB 164 would extend the sunset date for the State Children's 
          Trust Fund and the Rare and Endangered Species Preservation 
          Program VCFs until January 1, 2018. 

          Recent data provided by the Franchise Tax Board (FTB) indicates 
          that the State Children's Trust Fund has received annual 
          contributions averaging $562,877 since 2003, while the Rare and 
          Endangered Species Preservation Program has received annual 
          contributions averaging $609,609 over the same period.  Using an 
          average marginal tax rate of 6 percent, the average annual 
          revenue loss associated with taxpayer deductions of these 
          amounts would be $70,350 from 2014-15 through 2018-19.  FTB 
          costs to administer the programs are minor and are reimbursed 
          from donated amounts.  DSS costs to distribute the funds for 
          child abuse and neglect prevention and intervention programs are 
          also minor.  DFG costs to administer the distribution of 
          endangered and rare species preservation funds are minor and may 
          be covered by the contributions.