BILL ANALYSIS Ó
SB 164
Page 1
SENATE THIRD READING
SB 164 (Simitian)
As Introduced February 2, 2011
Majority vote
SENATE VOTE :33-4
REVENUE & TAXATION 8-0 APPROPRIATIONS 17-0
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|Ayes:|Perea, Beall, Charles |Ayes:|Fuentes, Harkey, |
| |Calderon, Cedillo, | |Blumenfield, Bradford, |
| |Fuentes, Wieckowski, | |Charles Calderon, Campos, |
| |Harkey, Nestande | |Davis, Donnelly, Gatto, |
| | | |Hall, Hill, Lara, |
| | | |Mitchell, Nielsen, Norby, |
| | | |Solorio, Wagner |
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SUMMARY : Extends, from January 1, 2013, to January 1, 2018, the
sunset date for two voluntary contribution funds (VCFs)
currently on the personal income tax (PIT) return.
Specifically, this bill extends the VCF provisions for both the
State Children's Trust Fund and the Rare and Endangered Species
Preservation Program.
EXISTING LAW :
1)Allows taxpayers to contribute to one or more of 15 VCFs on
the PIT return.
2)Provides a specific sunset date for each VCF, except for the
California Seniors Special Fund.
3)Requires each VCF to 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.
4)Provides that all money transferred to the State Children's
Trust Fund, upon appropriation by the Legislature, shall be
allocated to the:
a) Franchise Tax Board (FTB) and the State Controller for
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reimbursement of all costs incurred in administering the
checkoff; and,
b) State Department of Social Services for, among other
things, innovative child abuse and neglect prevention and
intervention programs operated by private nonprofit
organizations or public institutions of higher education.
5)Provides that all money transferred to the Rare and Endangered
Species Preservation Program, upon appropriation by the
Legislature, shall be allocated to the:
a) FTB and the State Controller for reimbursement of all
costs incurred in administering the checkoff; and,
b) State Department of Fish and Game for the purposes
specified in Fish and Game Code Section 1771.
6)Provides for the automatic repeal, on January 1, 2013, of the
VCF provisions for both the State Children's Trust Fund and
the Rare and Endangered Species Preservation Program.
FISCAL EFFECT : The Assembly Appropriations Committee estimates
revenue losses, resulting from contribution deductions, to be
around $70,000 annually beginning in fiscal year 2014-15.
COMMENTS :
The author has provided the following statement in support of
this bill:
The Personal Income Tax Law authorizes individual taxpayers
to designate on their personal income tax (PIT) form
contribution amounts in excess of their tax liability for
the support of 15 voluntary contribution funds. Two of
these funds, the State Children's Trust Fund for the
Prevention of Child Abuse and the Rare and Endangered
Species Preservation Program, are set to sunset on January
1, 2013. This bill would extend the sunset date to January
1, 2018.
Both the Children's Trust Fund and the Preservation Program
have enjoyed significant success as VCFs. Each of these
funds first appeared on the PIT form in 1983. The
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Franchise Tax Board reports that in calendar year 2010, the
Children's Trust Fund received $448,081 in contributions,
while the Preservation Program received $578,215.
Contributions to the Children's Trust Fund are allocated to
the Department of Social Services for innovative child
abuse and neglect prevention and intervention programs.
Contributions to the Preservation Program are allocated to
the Department of Fish and Game for various programs for
endangered and rare animals and plants.
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.
Assembly Revenue and Taxation Committee staff comments:
So many causes, so little space : There are countless worthy
causes that would benefit from the inclusion of a VCF on the
state's income tax returns. At the same time, space on the
returns is limited. Thus, it could be argued that the current
system for adding VCFs to the form is subjective and essentially
rewards organizations that can convince the Legislature to
include their fund on the form.
A history of success : With few exceptions, VCFs remain on the
return until they are either repealed or fail to meet their
minimum contribution amount. The following chart shows the
monies received in recent years for the State Children's Trust
Fund and the Rare and Endangered Species Preservation Program:
2010 2009
2008 2007
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|Children's |$448,081 |$528,298 |$528,609|$499,827 |
|Trust Fund | | | | |
|--------------+---------+---------+--------+----------|
|Endangered |$578,215 |$648,868 |$580,823|$572,043 |
|Species Fund | | | | |
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Related legislation : The following related bills have been
introduced in the current legislative session:
1)AB 233 (Hall) would add the California YMCA Youth and
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Government Fund to the form. AB 233 is currently pending in
the Senate Governance and Finance Committee.
2)AB 564 (Smyth) would reauthorize the addition of the Municipal
Shelter Spay-Neuter Fund to the form. AB 564 is currently
pending on the Senate Third Reading File.
3)AB 764 (Swanson) would add the Child Victims of Human
Trafficking Fund to the form. AB 764 is currently pending on
the Senate Third Reading File.
4)AB 971 (Monning) would extend the current repeal date for the
California Sea Otter Fund. AB 971 has been ordered to
Engrossing and Enrolling.
5)SB 583 (Vargas) would reauthorize the addition of the ALS/Lou
Gehrig's Disease Research Fund checkoff. SB 583 is currently
pending in the Assembly Appropriations Committee.
Analysis Prepared by : M. David Ruff / REV. & TAX. / (916)
319-2098
FN: 0002182