BILL ANALYSIS Ó ------------------------------------------------------------ |SENATE RULES COMMITTEE | SB 803| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ UNFINISHED BUSINESS Bill No: SB 803 Author: DeSaulnier (D) Amended: 8/20/12 Vote: 21 SENATE GOVERNANCE & FINANCE COMMITTEE : 7-2, 4/27/11 AYES: Wolk, DeSaulnier, Hancock, Hernandez, Kehoe, La Malfa, Liu NOES: Huff, Fuller SENATE APPROPRIATIONS COMMITTEE : 6-2, 1/19/12 AYES: Kehoe, Alquist, Lieu, Pavley, Price, Steinberg NOES: Walters, Emmerson NO VOTE RECORDED: Runner SENATE FLOOR : 27-11, 1/26/12 AYES: Alquist, Calderon, Cannella, Corbett, Correa, De León, DeSaulnier, Evans, Hancock, Hernandez, Kehoe, La Malfa, Leno, Lieu, Liu, Lowenthal, Negrete McLeod, Padilla, Pavley, Price, Rubio, Simitian, Steinberg, Vargas, Wolk, Wright, Yee NOES: Anderson, Berryhill, Blakeslee, Dutton, Emmerson, Fuller, Gaines, Harman, Huff, Strickland, Walters NO VOTE RECORDED: Runner, Wyland ASSEMBLY FLOOR : 53-26, 8/22/12 - See last page for vote SUBJECT : California Youth Leadership Project SOURCE : Author CONTINUED SB 803 Page 2 DIGEST : This bill establishes the California Youth Leadership Project (CYLP) and creates a new voluntary contribution fund (VCF) check-off program on the personal income tax (PIT) form for voluntary contributions to the California Youth Leadership Fund. Assembly Amendments (1) clarify specific criteria and age groups, (2) add finding and declarations, and (3) define disconnected and disadvantaged youth, as specified. ANALYSIS : Existing state law allows taxpayers to contribute money to one or more of 15 VCFs by checking a box on their state income tax return. California law requires contributions made through check-offs to be made from taxpayers' own resources and not from their tax liability, as is possible on federal tax returns. Check-off amounts may be claimed as charitable contributions on taxpayers' tax returns during the subsequent year. 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 (FTB) 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 FTB and CONTINUED SB 803 Page 3 the State 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; and 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 1 of an earlier calendar year, if the FTB 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 youths with disabilities and 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 between 14 and 18 years of age. 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. Authorizes an organization that operates civic engagement programs to submit applications for participation in the project on behalf of interested youth. CONTINUED SB 803 Page 4 5. Specifies that the CYLP shall allocate scholarship award funds to organizations that submit applications on behalf of youth who are selected to receive scholarship awards. Requires the organizations to 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, issues affecting youth with disabilities, and any other policy or fiscal issues deemed appropriate by the CDE; 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 CONTINUED SB 803 Page 5 and, on occasion, to testify at legislative hearings. 6. Requires an organization that receives a scholarship award on behalf of youth to use the funds only for youth-related activities pursuant to this bill. 7. Defines, for purposes of this bill, "disconnected and disadvantaged youth" as including, but not limited to, youth who are homeless between 18 and 24 years of age, youth with disabilities, youth who are from minority racial or ethnic groups, youth who are in or have been emancipated from foster care, youth who have been in or are on parole from the juvenile justice system, youth who are from low-income households, youth who are high school dropouts or are at risk of dropping out of school, youth who are pregnant or are young mothers, and other youth who could benefit from participation in the California Youth Leadership Project. 8. Establishes the CYLP Committee to oversee the CYLP and distribute funds collected through the check-off program on the income tax form. 9. 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. Specifies that priority for awarding scholarships shall be given to at-risk or disadvantaged youth between the ages of 14 and 18, as their participation in the CYLP will provide keen insight into many of the issues that youth face in their day-to-day lives. 10.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. 11.Requires the SPI to appoint the following four members to the CYLP Committee: A. A representative from a statewide nonprofit youth organization; CONTINUED SB 803 Page 6 B. A representative from a community-based nonprofit organization that serves youth or deals with youth-related issues, including, but not limited to, the issues described in #5B above; C. A representative of a local educational agency or school district; and D. A youth between 14 and 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 shall serve only in an advisory capacity. 12.Specifies that the California Health and Human Services Agency may also, but is not required to, appoint a member to the CYLP Committee. 13.Specifies that to the extent possible, 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 #5B above, 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; mental health, and youth with disabilities. 14.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 California 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 CONTINUED SB 803 Page 7 of the CYLP; D. Ensure that there is no discrimination based on race, religious creed, color, national origin, age, gender, marital status, disability, 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. 15.Specifies that the funds for the CYLP shall be allocated from the California Youth Leadership Fund or from private funds directed to the CDE and allocated to the CYLP Committee for the purpose of funding activities of the CYLP. 16.Authorizes the CYLP to accept gifts and grants from any source, public or private. 17.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. Prior Legislation CONTINUED SB 803 Page 8 This bill is similar to SB 516 (DeSaulnier), 2009-10 Session, which would have established the California Youth Legislature supported by the California Youth Leadership Fund created by AB 2017 (Hall), 2009-10 Session. However, both bills were vetoed by the Governor. In his veto message of SB 516 (DeSaulnier), Governor Schwarzenegger stated: "This bill is similar to a measure I vetoed in 2008 ÝAB 2252 (DeSaulnier)]. 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." In his veto message of AB 2017 (Hall), 2009-10 Session, the Governor 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." FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes Local: No According to the Assembly Appropriations Committee: 1. Based on past tax check-offs, annual revenues are expected to be in the $300,000-$800,000 range, although some check-offs have received less revenues. 2. FTB estimates this bill will cost the state about $20,000 per year in lost revenues as taxpayers deduct these charitable donations. This estimate assumes the check-off is added in the 2012-13 fiscal year, donations meet the average amount for the other tax check-offs and taxpayers deduct these charitable donations at the historical rate. Revenue losses would be similar in subsequent years. CONTINUED SB 803 Page 9 3. CDE estimates that it will cost approximately $100,000 to administer the program established by this bill. The costs for FTB and the State Controller are minor and absorbable. SUPPORT : (Verified 8/22/12) American Federation of State, County and Municipal Employees California Coalition for Youth California Youth Empowerment Network Los Angeles Unified School District Mental Health Association in California San Diego Youth Services ARGUMENTS IN SUPPORT : 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 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." This bill 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, have disabilities, or are in foster care, 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. This bill requires the CYLP to award youth scholarships to civic engagement programs that will provide participants (scholarship recipients) the tools to examine and discuss CONTINUED SB 803 Page 10 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 and 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. This 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 bill is similar to AB 233 (Hall), pending on the Governor's desk, which 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. ASSEMBLY FLOOR : 53-26, 8/22/12 AYES: Alejo, Allen, Ammiano, Atkins, Beall, Block, Blumenfield, Bonilla, Bradford, Brownley, Buchanan, Butler, Charles Calderon, Campos, Carter, Cedillo, Chesbro, Davis, Dickinson, Eng, Feuer, Fletcher, Fong, Fuentes, Furutani, Galgiani, Gatto, Gordon, Hall, Hayashi, Hill, Huber, Hueso, Huffman, Lara, Bonnie Lowenthal, Ma, Mendoza, Mitchell, Monning, Nestande, Pan, Perea, V. Manuel Pérez, Portantino, Skinner, Solorio, Swanson, Torres, Wieckowski, Williams, Yamada, John A. Pérez NOES: Achadjian, Bill Berryhill, Conway, Cook, Donnelly, Beth Gaines, Garrick, Gorell, Grove, Hagman, Halderman, Harkey, Jeffries, Jones, Knight, Logue, Mansoor, Miller, Morrell, Nielsen, Norby, Olsen, Silva, Smyth, Valadao, Wagner NO VOTE RECORDED: Roger Hernández CONTINUED SB 803 Page 11 AGB/RJG:m 8/22/12 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END **** CONTINUED