BILL ANALYSIS Ó ------------------------------------------------------------ |SENATE RULES COMMITTEE | SB 1571| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ UNFINISHED BUSINESS Bill No: SB 1571 Author: DeSaulnier (D) Amended: 8/24/12 Vote: 21 SENATE GOVERNANCE & FINANCE COMMITTEE : 5-1, 4/25/12 AYES: Wolk, DeSaulnier, Hancock, Hernandez, La Malfa NOES: Dutton NO VOTE RECORDED: Fuller, Kehoe, Liu SENATE APPROPRIATIONS COMMITTEE : 2-3, 5/14/12 (FAIL) AYES: Alquist, Price NOES: Kehoe, Walters, Dutton NO VOTE RECORDED: Lieu, Steinberg SENATE APPROPRIATIONS COMMITTEE : 5-0, 5/21/12 AYES: Kehoe, Alquist, Lieu, Price, Steinberg NO VOTE RECORDED: Walters, Dutton SENATE FLOOR : 36-3, 5/29/12 AYES: Alquist, Berryhill, Blakeslee, Calderon, Cannella, Corbett, Correa, De León, DeSaulnier, Dutton, Emmerson, Evans, Fuller, Gaines, Hancock, Harman, Hernandez, Kehoe, La Malfa, Leno, Lieu, Liu, Lowenthal, Negrete McLeod, Padilla, Pavley, Price, Rubio, Simitian, Steinberg, Vargas, Walters, Wolk, Wright, Wyland, Yee NOES: Anderson, Huff, Strickland NO VOTE RECORDED: Runner ASSEMBLY FLOOR : Not available CONTINUED SB 1571 Page 2 SUBJECT : Personal income taxes: voluntary contribution SOURCE : K to College DIGEST : This bill creates the School Supplies for Homeless Children Fund as a voluntary contribution fund (VCF). The VCF will be added to the personal income tax form when other VCFs are removed and remain on the form until January 1st of the 5th taxable year following its first appearance or sooner if the Franchise Tax Board (FTB) estimates the fund will not meet the minimum contribution amount. Assembly Amendments require the Superintendent of Public Instruction (SPI) to develop a competitive grant program that includes application forms and deadlines and make technical and clarifying changes ANALYSIS : Existing state law allows taxpayers to contribute money to one or more of 18 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 establishes the School Supplies for Homeless Children Fund (Fund) when another VCF is removed from the income tax return. The VCF will stay on the tax return for five years, but will be repealed earlier if the check-off does not maintain the minimum contribution amount of $250,000, adjusted for inflation, for each year after the second year that the check-off appears on the tax return. This bill: 1. Provides that all money transferred to the Fund, upon appropriation by the Legislature, shall be allocated as follows: A. To the FTB, the State Controller, and the CONTINUED SB 1571 Page 3 Department of Education (CDE) for reimbursement of all costs incurred in administering the check-off; and, B. To the CDE, for the sole purpose of assisting pupils in California under the federal McKinney-Vento Homeless Assistance Act (42 U.S.C. Section 11301 et seq.) by providing school supplies and health-related products to homeless children, through a competitive grant program developed and awarded by theSPI. 2. Requires the SPI to develop a competitive grant program that includes application forms and deadlines. Comments According to the author, "California has the nation's largest population of homeless children. As of 2010, there were upwards of 300,000 homeless students attending California elementary, middle and high schools. Among many other problems, homeless students often lack basic school supplies like backpacks, binders, and pencils or pens, as well as dental supplies essential to good oral health. Consequently, homeless children are at a critical disadvantage in school. These students consistently test well below average in math and English, and only 1/4 graduate from high school. While not solving all of the problems that come with homelessness, SB 1571 will help to level the material playing field by giving compassionate taxpayers the opportunity to cover the costs of basic school supplies and health services for homeless children." 2011 check-offs . Following is a list of 2011 check-offs and contribution amounts received in calendar year 2011 with 2010 tax returns: --------------------------------------------------------- |ALS/Lou Gehrig's Disease Research | Initial Tax Return | |Fund | 2011 | |------------------------------------+--------------------| |Alzheimer's Disease/Related | $462,357 | |Disorders Fund | | CONTINUED SB 1571 Page 4 |------------------------------------+--------------------| |Arts Council Fund | $164,298 | |------------------------------------+--------------------| |CA Breast Cancer Research Fund | $459,694 | |------------------------------------+--------------------| |CA Cancer Research Fund | $451,042 | |------------------------------------+--------------------| |CA Firefighters' Memorial Fund | $157,166 | |------------------------------------+--------------------| |CA Fund for Senior Citizens | $308,763 | |------------------------------------+--------------------| |CA Peace Officer Memorial | $137,782 | |Foundation Fund | | |------------------------------------+--------------------| |CA Police Activities League | | |(CALPAL) Fund |$69,431 | |------------------------------------+--------------------| |CA Sea Otter Fund | $359,699 | |------------------------------------+--------------------| |CA Seniors Special Fund | $53,813 | |------------------------------------+--------------------| |CA Veterans Homes Fund | $211,089 | |------------------------------------+--------------------| |Child Victims of Human Trafficking | Initial Tax Return | |Fund | 2011 | |------------------------------------+--------------------| |Emergency Food for Families Fund | $598,157 | |------------------------------------+--------------------| |Municipal Shelter Spay-Neuter Fund | Initial Tax Return | | | 2011 | |------------------------------------+--------------------| |Rare & Endangered Species | $605,220 | |Preservation Program | | |------------------------------------+--------------------| |Safely Surrendered Baby Fund | $184,866 | |------------------------------------+--------------------| |State Children's Trust for the |$409,043 | |Prevention of Child Abuse | | --------------------------------------------------------- Similar Legislation AB 1589 (Huffman) creates the California State Parks Stewardship Act of 2012 as a means of sustaining state CONTINUED SB 1571 Page 5 parks and includes a provision for the California State Parks Protection Fund. The bill is currently in the Assembly. In the 2011 legislative session, eight VCF bills were introduced. One of the eight, SB 3X1 (LaMalfa), would have created the Help Our State Fund for taxpayers to contribute to the General Fund. The bill died at the Assembly Desk. Five bills became law: SB 164 (Simitian, Chapter 699) 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 for five years; SB 583 (Vargas, Chapter 711) reestablishes the ALS/Lou Gehrig's Disease Research Fund; AB 564 (Smyth, Chapter 549) reestablishes the Municipal Shelter Spay-Neuter Fund; AB 764 (Swanson, Chapter 465) creates the Child Victims of Human Trafficking Fund; and AB 971 (Monning, Chapter 209) reestablishes the California Sea Otter Fund. Two bills remain from the 2011 legislative session: SB 803 (DeSaulnier) creates the California Youth Leadership Project and the California Youth Leadership Fund. The bill is currently in the Assembly. AB 233 (Hall) creates the California YMCA Youth and Government Fund. FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes Local: No According to the Senate Appropriations Committee: Annual estimated tax revenue loss of approximately $15,000 to $20,000 (General Fund) for up to five years beginning in 2013-14. Estimated CDE staffing costs of approximately $100,000 in 2013-14 to establish the grant program. Ongoing CDE administrative costs of approximately $50,000 annually for up to four additional years. All costs to CDE are covered by taxpayer contributions deposited into the School Supplies for Homeless Children Fund. SUPPORT : (Verified 8/28/12) K to College (source) CONTINUED SB 1571 Page 6 California PTA California Teachers Association Give Something Back School Supplies AGB:d 8/28/12 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END **** CONTINUED