BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 164
                                                                  Page  1

          Date of Hearing:   July 13, 2011

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                SB 164 (Simitian) - As Introduced:  February 2, 2011 

          Policy Committee:                             Revenue and 
          Taxation     Vote:                            8-0

          Urgency:     No                   State Mandated Local Program: 
          No     Reimbursable:              

           SUMMARY  

          This bill extends, from January 1, 2013 to January 1, 2018, the 
          sunset date for both the State Children's Trust Fund and the 
          Rare and Endangered Species Preservation Program, two voluntary 
          contribution funds currently on the personal income tax return.

           FISCAL EFFECT  

          This bill is estimated to cost the state about $70,000 per year. 
           This estimate assumes the check-off is added in the 2014-15 
          fiscal year and donations maintain the 2010 level of $450,000 
          for the State Children's Trust Fund and $575,000 for the Rate 
          and Endangered Specifies Preservation Program.  However, 
          combined donations have been as high as $1.3 million which would 
          lead to somewhat higher estimated revenue losses.  

           COMMENTS  

           1)Purpose  .  According to the author, SB 164 would allow these 
            two important programs to continue to receive much needed 
            funds through voluntary contributions on income tax returns 
            until January 1, 2018.  The author argues that both the 
            Children's Trust Fund and the Preservation Program have 
            enjoyed significant success as voluntary contributions.  SB 
            164 would allow these two important programs to continue to 
            receive much needed funds through voluntary contributions on 
            PIT returns until January 1, 2018.

          2)Voluntary Contribution Funds.   California taxpayers can make 
            voluntary contributions to any of 15 funds listed on the state 
            personal income tax return.  The contributions are in addition 








                                                                  SB 164
                                                                  Page  2

            to tax liabilities so they do not directly reduce the amount 
            of state taxes.  As charitable contributions, the taxpayer may 
            deduct the amount of the check-off 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 have historically ranged from $300,000 to 
            $800,000 per year.  Except for the California Seniors Special 
            Fund, all have sunset dates, and most must meet a minimum 
            annual contribution to remain on the return.

           3)Related legislation .  The following related bills address 
            personal income tax check-offs and have been introduced in the 
            current legislative session:

             a)   AB 233 (Hall) would authorize the addition of the 
               California YMCA Youth and Government Fund check-off to the 
               personal income tax form upon the removal of another 
               voluntary contribution fund from the form.  

             b)   AB 564 (Smyth) would, among other things, add the 
               Municipal Shelter Spay-Neuter Fund to the form. 

             c)   AB 764 (Swanson) would add the Child Victim of Human 
               Trafficking Fund check-off to the form.

             d)   AB 971 (Monning) would extend the current repeal date 
               for the current California Sea Otter Fund.

             e)   SB 583 (Vargas) would reauthorize the addition of the 
               ALS/Lou Gehrig's Disease Research Fund check-off.   

           

           Analysis Prepared by  :    Roger Dunstan / APPR. / (916) 319-2081