BILL ANALYSIS Ó SB 803 Page 1 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 SB 803 Page 2 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 SB 803 Page 3 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 SB 803 Page 4 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 SB 803 Page 5 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 SB 803 Page 6 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. SB 803 Page 7 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 SB 803 Page 8 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 SB 803 Page 9 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 SB 803 Page 10 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