BILL ANALYSIS �
AB 754
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Date of Hearing: April 22, 2013
ASSEMBLY COMMITTEE ON REVENUE AND TAXATION
Raul Bocanegra, Chair
AB 754 (Muratsuchi) - As Amended: April 11, 2013
Majority vote. Fiscal committee.
SUBJECT : Income taxes: voluntary contributions: California
Beach and Coastal Enhancement Account
SUMMARY : Allows taxpayers to contribute their own funds to the
California Beach and Coastal Enhancement Account (Account)
through a designation on the state personal income tax (PIT)
return. Specifically, this bill provides that all money
transferred to the Account, upon appropriation by the
Legislature, shall be allocated to the:
1)Franchise Tax Board (FTB) and the State Controller for
reimbursement of all administrative costs incurred; and,
2)California Coastal Commission (CCC) to support eligible
programs awarded under the selection criteria CCC has
established for the Whale Tail Grants Program (Program), and
for direct Program-related expenses.
EXISTING LAW :
1)Establishes the Account in the California Environmental
License Plate Fund.
2)Allows taxpayers to designate on their PIT returns a
contribution to any of 18 voluntary contribution funds (VCFs).
3)Provides a specific sunset date for each VCF, except for the
California Seniors Special Fund and the State Parks Protection
Fund.
FISCAL EFFECT : The FTB estimates that this bill would reduce
General Fund revenues by $10,000 annually beginning in fiscal
year 2014-15.
COMMENTS :
AB 754
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1)The author has provided the following statement in support of
this bill:
[AB 754] would allow taxpayers who value coastal
conservation programs to make a contribution to the
[California Beach and Coastal Enhancement Account] when
filing their state income tax return. The funds would be
distributed to existing grant programs that have a proven
record of success and that have much higher demand than
resources available. The Whale Tail coastal conservation
and education grant programs are very popular and worthy of
increased public support. AB 754 is an opportunity to
bring more funding to these programs without spending
scarce general fund resources.
2)This bill is supported by the CCC, which notes:
The [CCC's] WHALE TAIL License Plate was established as a
mechanism through which the public can contribute funds to
coastal and marine education programs in California. As of
December 31, 2012, a total of 210,763 license plates have
been sold. WHALE TAIL License Plate sales and renewal fees
(plus miscellaneous other small fees) have contributed
$20.2 million to the [Account], and $49.3 million to the
[Environmental License Plate Fund]. (The additional fees
that are charged for personalized plates go to the
[Environmental License Plate Fund].)
The [CCC] launched the WHALE TAIL License Plate Grants
Program in 1998 to support local marine and coastal
education efforts in California. The first fourteen years
of the program have provided a combined total of $7.7
million, supporting a total of 461 projects throughout the
state of California, which are estimated to have reached a
total of 11.6 million people.
3)Committee Staff Comments:
AB 754
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a) The Whale Tail Grants Program : The Program currently
distributes funds from sales of California's "Whale Tale"
license plate. Grants support programs that teach
California's children and the general public to value and
improve the health of the state's marine and coastal
resources. Adopt-A-Beach programs, as well as other beach
maintenance and coastal habitat restoration programs, are
also eligible for grant funding.
b) So many causes, so little space : There are countless
worthy causes that would benefit from the inclusion of a
new VCF on the state's income tax returns. At the same
time, space on the returns is limited. Thus, it could be
argued that the current system for adding and retaining
VCFs on the form is subjective and essentially rewards
causes whose proponents can convince the Legislature to
include their fund on the form.
c) Suggested technical amendments :
i) On page 3, line 40, insert "grants" after "awarded";
and,
ii) On page 4, line 4, strike "money" and insert
"moneys".
d) Related legislation : The following related bills have
been introduced in the current legislative session:
i) AB 247 (Wagner) would extend the repeal date of the
California Fund for Senior Citizens until December 1,
2020.
ii) AB 394 (Yamada) would extend the repeal date of the
California Alzheimer's Disease and Related Disorders
Research Fund from January 1, 2015, to December 1, 2020.
iii) AB 511 (Pan) would establish the American Red Cross,
California Chapters Fund.
iv) AB 1286 (Skinner) would suspend the annual
adjustment of the minimum contribution amount threshold
AB 754
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for the California Breast Cancer Research Fund.
v) SB 116 (Liu) would extend the repeal date of the
Emergency Food for Families Fund from January 1, 2014, to
January 1, 2019.
vi) SB 571 (Price) would establish and allow taxpayers
to make voluntary contributions to the Arts for Kids
Fund.
REGISTERED SUPPORT / OPPOSITION :
Support
California Association of Nonprofits
California Coastal Commission
Opposition
None on file
Analysis Prepared by : Edward Beeby & M. David Ruff / REV. &
TAX. / (916) 319-2098