BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                            Senator Kevin de Le�n, Chair


          AB 754 (Muratsuchi) - Personal Income Taxes: Voluntary  
          Contributions: California Beach and Coastal Enhancement Account
          
          Amended: May 20, 2013           Policy Vote: G&F 7-0
          Urgency: No                     Mandate: No
          Hearing Date: August 12, 2013                           
          Consultant: Robert Ingenito     
          
          This bill does not meet the criteria for referral to the  
          Suspense File.


          Bill Summary: AB 754 would create the Protect Our Coast and  
          Oceans Fund and add it to the state personal income tax return  
          as a voluntary contribution fund. The California Coastal  
          Commission (CCC) would disperse the funds through its Whale Tail  
          grants program to promote the value and health of state's marine  
          and coastal resources. 

          Fiscal Impact: The Franchise Tax Board (FTB) estimates that this  
          bill would result in an annual revenue loss of $10,000 (General  
          Fund) beginning in 2016-17. FTB, the State Controller's Office,  
          and CCC would be reimbursed for related administrative costs.

          Background: Current law allows taxpayers to contribute money to  
          one or more of 18 voluntary contribution funds during the  
          process of filing their state income tax return (tax check-off).  
          These contributions are made from taxpayers' own resources, not  
          from their tax liability (as is possible on federal tax  
          returns).  Check-off amounts are deductible as charitable  
          contributions on taxpayers' returns during the subsequent tax  
          year. With several exceptions, each voluntary contribution fund  
          has a sunset date and is required to meet a minimum contribution  
          amount of $250,000, adjusted annually for inflation.

          By September 1st of each year, FTB must (1) calculate the  
          minimum contribution about required for each check-off fund to  
          remain on the fund for the following calendar year, and (2)  
          estimate whether contributions to each fund meet that amount. If  
          FTB estimates that a fund will fail to meet its minimum  
          requirement amount, that fund is removed beginning the following  
          calendar year. 








          AB 754 (Pan)
          Page 1



          Proposed Law: This bill would create the Protect Our Coast and  
          Oceans Fund and add it to the state personal income tax return  
          as a voluntary contribution fund when space is available.  
          Contributions would support eligible programs through the CCC  
          Whale Tail Grants Program. 
          
          Staff Comments: FTB data indicate that roughly 90,000 taxpayers  
          (less than one percent of the statewide total) made  
          contributions to the various tax check-off programs in 2012.