BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      



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          |SENATE RULES COMMITTEE            |                   SB 803|
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                              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

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           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 

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                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. 

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          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 

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                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; 

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             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 

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                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 


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          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. 

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          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 

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          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

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          AGB/RJG:m  8/22/12   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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