BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 1765|
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THIRD READING
Bill No: AB 1765
Author: Jones-Sawyer (D), et al.
Amended: 8/14/14 in Senate
Vote: 21
SENATE GOVERNANCE & FINANCE COMMITTEE : 7-0, 6/11/14
AYES: Wolk, Knight, Beall, DeSaulnier, Hernandez, Liu, Walters
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : 74-0, 4/24/14 - See last page for vote
SUBJECT : Personal income taxes: voluntary contributions:
Habitat for
Humanity
SOURCE : Habitat for Humanity California
DIGEST : This bill adds the Habitat for Humanity Fund (Fund)
on the state personal income tax form for voluntary
contributions, when space is available. Contributions received
through the Fund will be allocated to the Department of Housing
and Community Development for distribution to the Habitat for
Humanity through a competitive grant process.
Senate Floor Amendments of 8/14/14 authorize the Department of
Housing and Community Development to receive reimbursement from
the Fund for the costs of administering the program.
ANALYSIS : Existing law allows taxpayers to contribute to one
CONTINUED
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or more of 20 voluntary contribution funds, known as VCFs or
check-offs, by checking a box on their state income tax return.
California law requires check-off contributions 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 in
the subsequent year.
The Franchise Tax Board (FTB) designs tax forms to provide for
the designation of contributions to specified funds either on
the return itself or on a separate schedule that must be
attached to the return. With a few exceptions, VCFs remain on
the tax form until they either are repealed by a sunset date or
fail to meet a minimum contribution amount. Minimum
contribution amounts are adjusted annually for inflation, with
specific exceptions. For most VCFs, the minimum contribution
amount is $250,000, beginning in the fund's second year.
By September 1 of each year, the FTB must determine the minimum
contribution amount required for each fund to remain on the form
for the following calendar year and estimate whether
contributions to each fund meet that amount. If the FTB
estimates that a fund will fail to meet its minimum contribution
amount, that fund is repealed for the following calendar year.
This bill adds the "Habitat for Humanity Fund" on the state
personal income tax form for voluntary contributions, when space
is available. Contributions received through the Fund will be
allocated to the Department of Housing and Community Development
for distribution to the Habitat for Humanity through a
competitive grant process. This bill maintains existing
requirements for tax check-offs, including the annual reporting
by September 1st of each year by the Franchise Tax Board to
determine eligibility for the following year, and the $250,000
minimum contribution requirement, beginning in the second year,
with annual adjustments for inflation. This bill includes an
automatic repeal after five years or 2021, whichever comes
first.
This bill authorizes the Department of Housing and Community
Development to receive allocations, through the annual budget
process, from the Habitat for Humanity Fund, as reimbursement
for their duties administering the fund.
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Background
Proceeds from tax check-offs are dedicated to a range of
programs. The following list provides information on current
tax check-offs and how contributions are administered. This
list does not reflect tax contributions that have been repealed
under the terms of their statutes.
------------------------------------------------------------
| Voluntary | 2013 | Contribution Allotment |
| Contribution Fund |Contribution| |
| | s | |
|---------------------+------------+-------------------------|
|Alzheimer's |$405,080 |As many as contract or |
|Disease/Related | |receive grants provided |
|Disorders Fund | |by the monies |
| | |contributed. |
|---------------------+------------+-------------------------|
|American Red Cross, |Initial Tax |To the Office of |
|California Chapter |Return |Emergency Services for |
| |2013 |distribution to the |
| | |American Red Cross. |
| | | |
|---------------------+------------+-------------------------|
|CA Breast Cancer |$369,425 |As many as apply and |
|Research Fund | |receive grants provided |
| | |from the monies |
| | |contributed. |
|---------------------+------------+-------------------------|
|CA Cancer Research |$389,759 |As many as apply and |
|Fund | |receive grants provided |
| | |from the monies |
| | |contributed. |
|---------------------+------------+-------------------------|
|CA Firefighters' |$126,158 |California Fire |
|Memorial Fund | |Foundation. |
|---------------------+------------+-------------------------|
|CA Fund for Senior |$234,247 |California Senior |
|Citizens | |Legislature. |
|---------------------+------------+-------------------------|
|CA Peace Officer |$128,581 |California Peace Officer |
|Memorial Foundation | |Memorial Commission. |
|Fund | | |
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|---------------------+------------+-------------------------|
|CA Sea Otter Fund |$307,544 |Department of Fish and |
| | |Wildlife, and as many as |
| | |apply for grants and |
| | |contracts provided for |
| | |by 50% of contributions. |
|---------------------+------------+-------------------------|
|CA Seniors Special |$60,961 |The first $80K to the |
|Fund | |Area Agency on Aging |
| | |Advisory Council of |
| | |California and the rest |
| | |to area agencies as |
| | |allocated by the |
| | |California Department of |
| | |Aging. |
|---------------------+------------+-------------------------|
|CA YMCA Youth and |$72,435 |The first $300K to the |
|Government Fund | |CA YMCA Youth and |
| | |Government Program. The |
| | |rest is allocated in |
| | |$10K annual grants to |
| | |the: African American |
| | |Leaders for Tomorrow |
| | |Program, Asian Pacific |
| | |Youth Leadership |
| | |Project, Chicano Latino |
| | |Youth Leadership |
| | |Project. Remaining |
| | |funds allocated to the |
| | |CA YMCA Youth and |
| | |Government Program, |
| | |whose board may award |
| | |additional $10K annual |
| | |grants to additional |
| | |nonprofit civic youth |
| | |organizations. |
|---------------------+------------+-------------------------|
|CA Youth Leadership |$55,505 |To the Department of |
|Fund | |Education to provide for |
| | |the CA Youth Leadership |
| | |Project. |
|---------------------+------------+-------------------------|
|Child Victims of |$220,119 |As many counseling and |
|Human Trafficking | |prevention centers that |
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|Fund | |apply and receive grants |
| | |provided from monies |
| | |contributed. |
|---------------------+------------+-------------------------|
|Emergency Food for |$459,291 |To the Department of |
|Families Fund | |Social Services for the |
| | |Emergency Food |
| | |Assistance Program. |
|---------------------+------------+-------------------------|
|Keep Arts in Schools |Initial Tax |To the Arts Council for |
|Fund |Return |grants to organizations |
| |2013 |providing parts programs |
| | |in schools. |
|---------------------+------------+-------------------------|
|Municipal Shelter |$217,883 |As many as apply and |
|Spay-Neuter Fund | |receive grants provided |
| | |from the monies |
| | |contributed. |
|---------------------+------------+-------------------------|
|Protect Our Coast |Initial Tax |To the California |
|and Oceans Fund |Return |Coastal Commission to |
| |2013 |provide grants to |
| | |organizations in support |
| | |of coastal resource |
| | |programs and related |
| | |educational activities. |
|---------------------+------------+-------------------------|
|Rare & Endangered |$476,933 |Department of Fish and |
|Species Preservation | |Wildlife endangered |
|Program | |conservation programs. |
|---------------------+------------+-------------------------|
|School Supplies for |$367,868 |As many as apply and |
|Homeless Children | |receive grants provided |
|Fund | |for by the monies |
| | |contributed. |
|---------------------+------------+-------------------------|
|State Children's |$305,438 |To the Department of |
|Trust for the | |Social Services for |
|Prevention of Child | |prevention and |
|Abuse | |intervention programs. |
|---------------------+------------+-------------------------|
|State Parks |$396,921 |As many as purchase a |
|Protection | |parks pass that can be |
|Fund/Parks Pass | |provided from the monies |
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|Purchase | |contributed. |
| | | |
------------------------------------------------------------
Related Legislation
AB 247 (Wagner, Chapter 670, Statutes of 2013) extends the
repeal date from 2015 to 2020 for the California Fund for Senior
Citizens tax check-off on the tax form.
AB 394 (Yamada, Chapter 671, Statutes of 2013) extends the
repeal date of the California Alzheimer's Disease and Related
Disorders Research Fund tax check-off on the tax form from 2015
to 2020.
AB 511 (Pan, Chapter 451, Statutes of 2013) creates the American
Red Cross, California Chapters Fund check-off on the tax form.
AB 1286 (Skinner, Chapter 664, Statutes of 2013) temporarily
suspends the annual inflation adjustment for minimum
contribution levels for the California Breast Cancer Research
Fund check-off on the tax form.
AB 1561 (Rodriguez, Statutes of 2014) extends the repeal date
from 2016 to 2026 for the California firefighters' and peace
officer memorial funds.
AB 1833 (Garcia, Statutes of 2014) eliminates the minimum
contribution requirement for the California Fund for Senior
Citizens.
AB 2012 (Morrell, Statutes of 2014) eliminates the minimum
contribution requirement for the California Fund for Senior
Citizens.
SB 116 (Liu, Chapter 222, Statutes of 2013) extends the repeal
date from 2014 to 2019 for the Emergency Food Assistance Program
check-off on the tax form.
SB 571 (Liu, Chapter 430, Statutes of 2013) creates the Art for
Kids Fund check-off on the tax form.
SB 761 (DeSaulnier, 2014) modifies state administration of funds
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received through the School Supplies for Homeless Children Fund.
SB 782 (DeSaulnier, 2014) creates the California Sexual Violence
Victim Services Fund tax check-off.
SB 987 (Monning, 2014) requires that the cost incurred by the
Department of Fish and Wildlife in taking measures to encourage
taxpayers to make contributions on their tax return be paid for
with money allocated to the California Sea Otter Fund.
SB1207 (Wolk, 2014) establishes an administrative procedure for
qualified charities to apply and receive donations through a tax
check-off.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 6/24/14)(unable to reverify at time of
writing)
Habitat for Humanity California (source)
Jerome E. Horton, Chair, Board of Equalization
Habitat for Humanity East Bay/Silicon Valley
Habitat for Humanity Fresno County
Habitat for Humanity of Coachella Valley
Habitat for Humanity of Orange County
Habitat for Humanity of Southern Santa Barbara County
Habitat for Humanity of Tulare County
Habitat for Humanity Riverside
Habitat for Humanity Santa Cruz County
Pomona Valley Habitat for Humanity
San Gabriel Valley Habitat for Humanity
ARGUMENTS IN SUPPORT : According to the author, "With bond
funding exhausted and redevelopment funds eliminated, California
is facing virtually no state investment in affordable housing.
In addition, Habitat affiliates across the state have
experienced significant revenue declines since redevelopment was
dissolved in 2011. Allowing individuals to donate via their
income tax check return can raise hundreds of thousands of
dollars for Habitat for Humanity. This money will be used for
the sole purpose of building affordable housing throughout
California. In Louisiana, the only other state that has a
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voluntary income tax check off, the affordable housing fund
raises an average of $5 million annually."
ASSEMBLY FLOOR : 74-0, 4/24/14
AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Bigelow, Bloom,
Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian
Calderon, Campos, Chau, Chávez, Chesbro, Conway, Cooley,
Dababneh, Dahle, Daly, Dickinson, Donnelly, Eggman, Fong, Fox,
Frazier, Beth Gaines, Garcia, Gatto, Gomez, Gonzalez, Gordon,
Gorell, Grove, Hagman, Hall, Roger Hernández, Holden,
Jones-Sawyer, Levine, Linder, Logue, Lowenthal, Maienschein,
Medina, Melendez, Mullin, Muratsuchi, Nestande, Olsen, Pan,
Patterson, Perea, V. Manuel Pérez, Quirk, Quirk-Silva, Rendon,
Ridley-Thomas, Rodriguez, Salas, Skinner, Stone, Ting, Wagner,
Waldron, Weber, Wieckowski, Wilk, Williams, Yamada, John A.
Pérez
NO VOTE RECORDED: Gray, Harkey, Jones, Mansoor, Nazarian,
Vacancy
AB:nl 8/16/14 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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