BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 803
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          Date of Hearing:   June 13, 2012

                           ASSEMBLY COMMITTEE ON EDUCATION
                                Julia Brownley, Chair
                 SB 803 (DeSaulnier) - As Amended:  January 10, 2012

          ÝNote: This bill is doubled referred to the Assembly Revenue and 
          Taxation Committee and will be heard as it relates to issues 
          under its jurisdiction.]
          
           SENATE VOTE  :   27-11
           
          SUBJECT  :   California Youth Leadership Project

           SUMMARY  :   Establishes the California Youth Leadership Project 
          (CYLP) and creates a new check off program on the personal 
          income tax (PIT) form for voluntary contributions to the 
          California Youth Leadership Fund.  Specifically,  this bill  :   

          1)Establishes the California Youth Leadership Fund in the State 
            Treasury to receive contributions made by individuals on the 
            state tax return and specifies the following:

             a)   Requires the Franchise Tax Board to revise the tax 
               return form to include a space labeled "California Youth 
               Leadership Fund".  Requires the form to include in the 
               instructions information that the contribution may be in 
               the amount of $1 or more and that the contribution shall be 
               used to support the CYLP.
             b)   Specifies that a voluntary contribution designation for 
               the California Youth Leadership Fund shall be added on the 
               tax return when another voluntary contribution designation 
               is removed or as soon as space is available on the tax 
               return.
             c)   Requires the moneys transferred to the California Youth 
               Leadership Fund to be allocated to the Franchise Tax Board 
               and the controller for reimbursement of all costs incurred 
               by the agencies to administer the provisions in this bill 
               and the California Department of Education (CDE) to provide 
               for the CYLP.
             d)   Specifies that the provisions establishing the 
               California Youth Leadership Fund shall repeal on January 1 
               of the fifth taxable year following the first appearance of 
               the California Youth Leadership Fund on the tax return, or 
               on January 1of an earlier calendar year, if the Franchise 








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               Tax Board determines that the annual contribution amount 
               will be less than $250,000, or an adjusted amount, as 
               specified, for subsequent taxable years.   

          2)Makes findings and declarations regarding the following:  a) 
            the needs of youth in California, particularly disadvantaged 
            youths, including those who are homeless, are in foster care, 
            juvenile justice facilities, or on parole from those 
            facilities; b) the limited civic engagement opportunities for 
            these disconnected and disadvantaged youth; and c) that 
            providing more of the five developmental resources (caring 
            adults, safe places, a healthy start, an effective education, 
            and opportunities to help others) for more young people can 
            help avoid millions of dollars in later prison, health, and 
            welfare costs.  
             
          3)Establishes the CYLP under the CDE for the purpose of 
            promoting youth civic engagement through meaningful 
            opportunities to improve the quality of life for California's 
            disconnected and disadvantaged youth.    

          4)Specifies that the CYLP shall support and promote youth civic 
            engagement by awarding scholarships to youths.  Specifies that 
            youths awarded scholarships shall be given the opportunity to 
            make meaningful recommendations regarding legislation and 
            policies that impact their own lives and the lives of the 
            thousands of other youths in California whose voices often go 
            unheard.

          5)Specifies that the CYLP shall award youth scholarships to 
            civic engagement programs that do all of the following:

             a)   Provide youth participants the tools to examine and 
               discuss policy and fiscal issues affecting the interests, 
               needs, and conditions of the youth of California; 
             b)   Provide youth participants the opportunity to formally 
               advise and make recommendations to the Legislature and the 
               Governor on specific issues affecting youth, including, but 
               not limited to, education, employment, access to state and 
               local governmental services, the environment, behavioral 
               and physical health, safety, technology, criminal justice, 
               homelessness, foster care, child welfare, emancipation, 
               financial literacy, substance abuse, driver's license 
               requirements, poverty, increased youth participation in 
               state and local government, and any other policy or fiscal 








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               issues deemed appropriate by the CYLP  Committee;
             c)   Provide youth participants the opportunity to consult 
               with any existing local level youth advisory commissions 
               and community-based, grassroots youth-led organizations for 
               input and potential solutions on issues related to youth;
             d)   Provide youth participants the opportunity to convene 
               and conduct meetings to fulfill the purposes of the CYLP;
             e)   Provide youth participants the opportunity to act as an 
               information center on California youth policy and fiscal 
               issues, including, but not limited to, the issues 
               identified in (b) above; and, 
             f)   When available, enable individual youth to travel to the 
               State Capitol to learn the legislative process and, on 
               occasion, to testify at legislative hearings.

          6)Establishes the CYLP Committee to oversee the CYLP and 
            distribute funds collected through the check-off program on 
            the income tax form.  

          7)Requires the CYLP Committee, in making youth scholarship 
            awards, to take into consideration that awarded youth 
            represent the racial, ethnic, socioeconomic, cultural, 
            physical, and educational diversity of California. Particular 
            emphasis should be placed on reaching out to at-risk or 
            disadvantaged youth, as their participation in the CYLP will 
            provide keen insight into many of the issues that youth face 
            in their day-to-day lives.

          8)Requires the CYLP Committee to be chaired by the 
            Superintendent of Public Instruction (SPI), or his or her 
            designee, and shall include no more than six members.

          9)Requires the SPI to appoint the following four members to the 
            CYLP Committee:

             a)   A representative from a statewide nonprofit youth 
               organization; 
             b)   A representative from a community-based nonprofit 
               organization that serves youth or deals with youth-related 
               issues;
             c)   A representative of a local educational agency or school 
               district; and, 
             d)   A youth under 18 years of age who has participated in a 
               youth leadership program involving lobbying the Legislature 
               on issue areas affecting youth.  Specifies that this person 








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               shall serve only in an advisory capacity.

          10)Specifies that the California Health and Human Services 
            Agency may also, but is not required to, appoint a member to 
            the CYLP Committee.

          11)Specifies that members of the CYLP Committee shall have 
            experience and be trained to work with youth between 14 and 18 
            years of age on the issues described in 5(b) of this summary 
            and shall have special experience in civic engagement, 
            advocacy, and at least one of the following issue areas 
            affecting youth:  crisis prevention or intervention; drug, 
            alcohol, and tobacco abuse prevention or intervention; foster 
            care; juvenile justice; homelessness; lesbian, gay, bisexual, 
            and transgender rights and social justice; and mental health.

          12)Specifies that the duties of the CYLP Committee shall 
            include, but not be limited to, all of the following:

             a)   Develop and provide applications for the Youth 
               Leadership Project scholarship and collect applications 
               from youth who would like to apply;
             b)   Determine ways to promote the program and make 
               applications available;
             c)   Establish criteria for the selection of youth, and make 
               awards based on those criteria and the purposes of the 
               CYLP;
             d)   Ensure that there is no discrimination based on race, 
               religious creed, color, national origin, age, gender, 
               marital status, sex, or sexual orientation;
             e)   Establish the time, location, and number of annual 
               meetings of the committee. Specifies that the committee 
               shall meet no less than once each year;
             f)   If necessary, enter into a mutually agreed upon 
               interagency agreement with the CDE to carry out 
               administrative duties related to the project; 
             g)   Submit an annual budget and report to the CDE; and, 
             h)   Determine when there are sufficient funds to support the 
               project.  Specifies that if the committee determines that 
               there are insufficient funds to cover all costs, the 
               activities of the CYLP shall cease.  Specifies that state 
               funds shall not be used to support the CYLP.

          13)Specifies that the funds for the CYLP shall be allocated from 
            the California Youth Leadership Fund or from private funds 








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            directed to the CDE and allocated to the CYLP Committee for 
            the purpose of funding activities of the CYLP.

          14)Authorizes the CYLP to accept gifts and grants from any 
            source, public or private.  

          15)Specifies that the CYLP Committee shall have the authority to 
            define its program and utilize its funds in any way necessary 
            to carry out the duties of this bill, including, but not 
            limited to, partnering with nonprofit groups or state agencies 
            to perform various duties, as long as the program or activity 
            is not in violation of a state law or regulation.

           EXISTING LAW  :

          1)Authorizes taxpayers to designate on their PIT returns a 
            contribution to any of 18 voluntary contribution funds (VCFs).

          2)Provides a specific sunset date for each VCF, except 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.   

          4)Establishes the California Senior Legislature to provide model 
            legislation for older citizens and advocate for the needs of 
            seniors.  

           FISCAL EFFECT  :  According to the Senate Appropriations 
          Committee, the total costs to administer the scholarship program 
          would likely exceed $50,000 annually.  To the extent that 
          insufficient funds are generated to cover the full 
          administrative costs of the program, the bill would create cost 
          pressures.  Furthermore, the bill would create additional cost 
          pressures of $250,000 to $300,000 annually to fund the 
          scholarship program after the tax checkoff program is repealed.  


           COMMENTS  :  According to the author, "Young people need five key 
          developmental resources in order to become productive citizens: 
          caring adults, safe places, a healthy start, an effective 
          education, and opportunities to help others. Furthermore, young 
          people who receive more of these developmental resources fare 








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          better than young people who receive fewer, and that those young 
          people are more likely to avoid violence, contribute to their 
          communities, and achieve high grades in school.

          To meet this need, there are several programs that provide youth 
          leadership opportunities.  This bill will make funds available 
          directly to the youth who participate in such programs."

          SB 803 establishes the CYLP, funded by donations made by 
          California taxpayers through a new check-off program on the PIT 
          form.  The findings and declarations in the bill focus on the 
          need and benefits of giving disadvantaged kids (kids who are 
          homeless, in foster care, in juvenile justice facilities or on 
          parole) the opportunity to learn about policymaking and be 
          provided the opportunities to develop and provide policy 
          recommendations in a host of issue areas to the Legislature.  
          The bill attempts to achieve this goal through the provision of 
          scholarship awards.  

           Scholarship recipients  .  The bill requires the CYLP to award 
          youth scholarships to civic engagement programs that will 
          provide participants, presumably scholarship recipients, the 
          tools to examine and discuss policy and fiscal issues, formally 
          advise and make recommendations to the Legislature and the 
          Governor on a host of issues affecting youth, provide youth the 
          opportunity to consult with existing local youth advisory 
          commissions and community-based, grassroots, youth-led 
          organizations, provide participants the opportunity to convene 
          an conduct meetings, provide youth with the opportunity to act 
          as an information center on California youth policy and fiscal 
          issues, and when available, enable participants to travel to the 
          State Capitol to learn the legislative process and testify at 
          legislative hearings.  

          It is unclear whether the scholarships are intended to be 
          awarded to both youth and civic engagement programs or to youth 
          through the civic engagement programs.  According to the 
          author's office, the intent is to have civic engagement programs 
          that agree to provide the opportunities detailed above to 
          identify the participants and submit applications on behalf of 
          youths.  The funding will go to the programs.  Staff recommends 
          amending the bill to clarify that applications shall be 
          submitted by organizations that operate civic engagement 
          programs.    









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           What are the funds used for  ?  The bill does not specify 
          parameters for use of the scholarship funds.  According to the 
          author's office, funds are intended to be used for activities to 
          support participants (e.g., to travel to the State Capitol to 
          learn about the legislative process or testify at a committee 
          hearing), and are not intended for administration.  Staff 
          recommends an amendment to clarify that funds are to be used for 
          participant-related activities.     

           Who oversees the funds  ?  This bill establishes a CYLP Committee, 
          comprised of no more than six members and chaired by the SPI or 
          his/her designee.  The SPI makes appointments to the Committee, 
          which must include representatives from a statewide nonprofit 
          youth organization, a community-based nonprofit organization 
          that serves youth or deals with youth-related issues, and a 
          local educational agency, and a youth under 18 who has 
          participated in a youth leadership program involving lobbying 
          the Legislature on issue areas affecting youth, who shall serve 
          in an advisory role.  

          The bill requires members of the Committee to have experience 
          and to have received training to work with youth between 14 and 
          18 years of age on all the issues mentioned in 5(b) of the 
          summary section of the analysis and have experience in civic 
          engagement, advocacy, and at least one of the following issue 
          areas:  crisis prevention or intervention; drug, alcohol, and 
          tobacco abuse prevention or intervention; foster care; juvenile 
          justice; homelessness; lesbian, gay, bisexual, and transgender 
          rights and social justice; and mental health.  Requiring members 
          to meet all the criteria may make it difficult for the SPI to 
          find eligible appointees.  Staff recommends specifying that 
          members shall have these characteristics "to the extent 
          possible" and have experience and be trained in "any" of the 
          specified issue areas.  

          The bill requires the Committee to develop and collect 
          applications from youth, establish criteria for selection of 
          youth while ensuring that there is no discrimination based on 
          race, religious creed, color, national origin, age, gender, 
          marital status, sex, or sexual orientation.  Staff recommends 
          adding "disabilities" to this list.  The findings and 
          declarations section of the bill focus on disadvantaged and 
          at-risk youth; however, the bill allows the Committee to develop 
          selections criteria.  If this bill is intended to give at-risk 
          and disadvantaged youth the opportunities to develop policy 








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          recommendations, staff recommends requiring the Committee to 
          give priority for scholarship awards to at-risk and 
          disadvantaged youth between the ages of 14 and 18.  Staff also 
          recommends uncodifying the findings and declarations section of 
          the bill.    
            
           Education Code  .  The bill is currently codified in the Welfare 
          and Institutions Code.  Staff recommends transferring the 
          language to the Education Code.    

           PIT check-off program  .  The bill establishes the California 
          Youth Leadership Fund and creates a new PIT check-off program 
          whereby taxpayers can make donations for the CYLP for a five 
          year period, when an existing VCF sunsets or when there is room 
          on the form.  There are currently 18 VCFs on the PIT form.  This 
          provision of the bill will be examined in more details by the 
          Assembly Revenue and Taxation Committee. 

           Arguments in Support  .  The California Coalition for Youth 
          states, "Every youth should be given a chance, and we recognize 
          that some need extra help along the way.  The California Youth 
          Leadership Project will give these youth the opportunity to 
          participate in real civic engagement programs and educational 
          experiences that can lead to real changes in policies and create 
          brighter futures, especially for at-risk or disadvantaged 
          youth."  

           Arguments in Opposition  .  The California Right to Life 
          Committee, Inc. (CRLC) is concerned that funds will be allocated 
          to organizations that are not consistent with the philosophy or 
          values of the CRLC.  

           Related legislation  .  Various iterations of this bill have been 
          introduced previously by this author.  AB 2252 (DeSaulnier), 
          vetoed by Governor Schwarzenegger in 2008, would have 
          established the California Commission on Youth, with 20 youth 
          members appointed by the Governor, the Speaker of the Assembly 
          and the Senate Rules Committee.  Funding would come from private 
          dollars.  The last version, SB 516 (DeSaulnier), also funded by 
          a PIT check-off program, would have established the California 
          Youth Legislature, modeled after the California Senior 
          Legislature.  Under that bill, the program is administered by 
          the Joint Committee on Rules and participants are appointed by 
          the California Youth Legislature Advisory Committee.  The 
          California Youth Legislature provides opportunities for youth to 








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          examine and discuss policy and fiscal issues affecting youths, 
          and make recommendations to the Legislature and the Governor.  
          The bill was vetoed by Governor Schwarzenegger in 2010, stating, 
          "This bill is similar to a measure I vetoed in 2008.  I still 
          encourage California youth to engage in the public policy issues 
          that directly impact their lives such as education, employment, 
          foster care, homelessness, and more.  However, as most parents 
          and adults can attest, I would also argue that youth do not need 
          statutory authorization to have their voices and opinions heard. 
           There are numerous organizations, entities and communications 
          in which youth can be engaged in our legislative process."

          AB 233 (Hall) is a similar bill currently pending in the Senate 
          Governance and Finance Committee.  The bill establishes the 
          California YMCA Youth and Government Fund on the PIT form and 
          allocates $300,000 to the California YMCA Youth and Government 
          Board of Directors to award nonprofit civic youth organizations 
          a grant of up to $10,000 each in order to operate civic 
          education and mock legislative programs. The funds are 
          administered by the California YMCA Youth and Government Board 
          of Directors, who is responsible for developing criteria, 
          evaluating applications, and awarding grants to eligible 
          organizations.  Any funds collected beyond $300,000 are 
          allocated to the African American Leaders for Tomorrow Program, 
          the Asian Pacific Youth Leadership Project, and the Chicano 
          Latino Youth Leadership Project.  This bill is similar to a 2010 
          bill by the same author, AB 2017.  AB 2017 established the 
          California Youth Leadership Fund, which provided funding for the 
          California YMCA Youth and Government Program and the California 
          Youth Legislature, as proposed by SB 516.  The enactment of AB 
          2017 was contingent upon the enactment of SB 516.  The 
          Governor's veto message stated, "This bill is contingent on the 
          enactment of Senate Bill 516, which I cannot support.  I would 
          ask that the authors of these bills reconcile their efforts to 
          support greater youth involvement in public policy without 
          creating additional organizations when there are numerous 
          organizations and entities already dedicate to working with 
          youth from all backgrounds."   This year's AB 233 is not joined 
          with SB 803.  

           Recently enacted check-off legislation  .  AB 564 (Smyth), Chapter 
          549, Statutes of 2011, reestablishes the Municipal Shelter 
          Spay-Neuter Fund on the PIT form. 

          AB 764 (Swanson), Chapter 465, Statutes of 2011, creates a VCF 








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          designation on the PIT form for taxpayers to contribute to the 
          Child Victims of Human Trafficking Fund.  

          AB 971 (Monning), Chapter 209, Statutes, of 2011, extends the 
          repeal date of the California Sea Otter Fund on the PIT form by 
          five years.  

          SB 164 (Simitian), Chapter 699, Statutes of 2011, extends the 
          repeal dates of both the State Children's Trust Fund for the 
          Prevention of Child Abuse and the Rare and Endangered Species 
          Preservation Program on the PIT form from January 1, 2013 to 
          January 1, 2018.  

          SB 583 (Vargas), Chapter 711, Statutes of 2011, reestablishes 
                                                              the ALS/Lou Gehrig's Disease Research Fund as a VCF on the PIT 
          form.  

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          Aspiranet
          California Coalition for Youth
          California Youth Empowerment Network
          Los Angeles Unified School District
          San Diego Youth Services
          State Superintendent of Public Instruction Tom Torlakson
           
            Opposition 
           
          California Right to Life Committee, Inc.

           Analysis Prepared by :    Sophia Kwong Kim / ED. / (916) 319-2087