BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      



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          |SENATE RULES COMMITTEE            |                  SB 1571|
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                              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


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           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 

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                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                      |                    |

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           |------------------------------------+--------------------|
           |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 

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          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)

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          California PTA
          California Teachers Association
          Give Something Back School Supplies


          AGB:d  8/28/12   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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