BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 116|
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UNFINISHED BUSINESS
Bill No: SB 116
Author: Liu (D)
Amended: 6/12/13
Vote: 21
SENATE GOVERNANCE & FINANCE COMMITTEE : 7-0, 4/10/13
AYES: Wolk, Knight, Beall, DeSaulnier, Emmerson, Hernandez, Liu
SENATE APPROPRIATIONS COMMITTEE : 6-0, 5/6/13
AYES: De León, Walters, Hill, Lara, Padilla, Steinberg
NO VOTE RECORDED: Gaines
SENATE FLOOR : 34-0, 5/13/13
AYES: Anderson, Beall, Berryhill, Block, Cannella, Corbett,
Correa, De León, DeSaulnier, Emmerson, Evans, Fuller,
Galgiani, Hancock, Hernandez, Hill, Hueso, Huff, Jackson,
Knight, Lara, Leno, Lieu, Liu, Monning, Nielsen, Padilla,
Pavley, Roth, Steinberg, Wolk, Wright, Wyland, Yee
NO VOTE RECORDED: Calderon, Gaines, Price, Walters, Vacancy,
Vacancy
ASSEMBLY FLOOR : 77-0, 8/19/13 - See last page for vote
SUBJECT : Personal income taxes: contributions: Emergency
Food Assistance
Program
SOURCE : California Association of Food Banks
DIGEST : This bill extends the Emergency Food Assistance
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Program check-off on the tax form from January 1, 2014, the
current expiration date, until January 1, 2019. This bill
maintains all the existing requirements for the program
including the annual reporting by September 1st of each year and
the minimum contribution requirements adjusted for inflation.
Assembly Amendments add a sunset date and a minimum contribution
requirement, and made a technical change.
ANALYSIS : Existing state law allows taxpayers to contribute
money to one or more of 18 voluntary contribution funds (VCFs or
check-offs) 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 in the subsequent year.
This bill extends the Emergency Food Assistance Program
check-off on the tax form from January 1, 2014, the current
expiration date, until January 1, 2019. This bill maintains all
the existing requirements for the program including the annual
reporting by September 1st of each year and the minimum
contribution requirements adjusted for inflation.
Background
The Franchise Tax Board (FTB) designs tax returns 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 return until they are either repealed or fail to meet their
minimum contribution amount. The minimum contribution amounts
are adjusted annually for inflation. For most VCFs, the minimum
contribution amount is $250,000 in the fund's second year. The
Emergency Food for Families check off's minimum contribution
amount for the 2012 calendar year is $347,554. By September 1st
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 whether estimated contributions to
each fund will be less than the minimum contribution amount for
that calendar year. If the FTB estimates that a fund will fail
to meet the minimum contribution amount, that fund is repealed
effective for taxable years beginning on or after January 1st of
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the following calendar year.
Except for the California Senior Legislature (which is fully
funded by the check off and operates in concert with the
Legislature), the proceeds from the check-offs either go to
quasi-government organizations or to non-profits as a
competitive grant. The following list provides the current
information on all the check offs as well as how many groups are
eligible to receive the funds (some of the funds have been
repealed by their own terms).
------------------------------------------------------------
|Voluntary | 2012 | Contribution Allotment |
|Contribution Fund |Contribution| |
| | Totals | |
|--------------------+------------+--------------------------|
|ALS/Lou Gehrig's |$137,290 |As many as apply and |
|Disease Research | |receive grants that are |
|Fund | |provided for by the |
| | |monies contributed. |
|--------------------+------------+--------------------------|
|Alzheimer's |$466,485 |As many as contract or |
|Disease/Related | |receive grants provided |
|Disorders Fund | |by the monies |
| | |contributed. |
|--------------------+------------+--------------------------|
|Arts Council Fund |$165,647 |As many as apply and |
| | |receive grants provided |
| | |by the monies |
| | |contributed. |
|--------------------+------------+--------------------------|
|CA Breast Cancer |$440,771 |As many as apply and |
|Research Fund | |receive grants provided |
| | |from the monies |
| | |contributed. |
|--------------------+------------+--------------------------|
|CA Cancer Research |$432,355 |As many as apply and |
|Fund | |receive grants provided |
| | |from the monies |
| | |contributed |
|--------------------+------------+--------------------------|
|CA Firefighters' |$152,004 |1 Group: California Fire |
|Memorial Fund | |Foundation |
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|--------------------+------------+--------------------------|
|CA Fund for Senior |$272,742 |1 Group: California |
|Citizens | |Senior Legislature |
|--------------------+------------+--------------------------|
|CA Peace Officer |$136,172 |1 Group: California Peace |
|Memorial Foundation | |Officer Memorial |
|Fund | |Commission |
|--------------------+------------+--------------------------|
|CA Police |$67,202 |The state CALPAL and |
|Activities League | |county CALPAL chapters |
|(CALPAL) Fund | | |
|--------------------+------------+--------------------------|
|CA Sea Otter Fund |$351,037 |Department of Fish and |
| | |Wildlife, and as many |
| | |that apply for grants and |
| | |contracts provided for by |
| | |50% of the monies |
| | |contributed. |
|--------------------+------------+--------------------------|
|CA Seniors Special |$61,315 |The first $80K to the |
|Fund | |Area Agency on Aging |
| | |Advisory Council of |
| | |California and the rest |
| | |to as many area agencies |
| | |that the California |
| | |Department of Aging |
| | |allocates available |
| | |contributed monies to. |
|--------------------+------------+--------------------------|
|CA YMCA Youth and |Initial Tax |The first $300K to the CA |
|Government Fund |Return 2012 |YMCA Youth and Government |
| | |Program and the rest of |
| | |the monies allocated in |
| | |$10K annual grants as |
| | |follows: African American |
| | |Leaders for Tomorrow |
| | |Program, Asian Pacific |
| | |Youth Leadership Project, |
| | |Chicano Latino Youth |
| | |Leadership Project; the |
| | |money is to be used to |
| | |support program |
| | |participation. Any |
| | |remaining funds will be |
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| | |allocated to the CA YMCA |
| | |Youth and Government |
| | |Program. The Board of |
| | |Directors for the CA YMCA |
| | |Youth and Government |
| | |Program may award |
| | |additional $10K annual |
| | |grants to additional |
| | |nonprofit civic youth |
| | |organizations. The funds |
| | |distributed to the CA |
| | |YMCA Youth and Government |
| | |Program are to be used |
| | |for program-related |
| | |expenses. |
|--------------------+------------+--------------------------|
|CA Youth Leadership |Initial Tax |1 group: Department of |
|Fund |Return 2012 |Education to provide for |
| | |the CA Youth Leadership |
| | |Project. |
|--------------------+------------+--------------------------|
|CA Veterans Homes |$210,078 |The number of established |
|Fund | |veteran's homes (7). |
|--------------------+------------+--------------------------|
|Child Victims of |$35,317 |As many counseling and |
|Human Trafficking | |prevention centers that |
|Fund | |apply and receive grants |
| | |provided from monies |
| | |contributed. |
|--------------------+------------+--------------------------|
|Emergency Food for |$551,515 |1 group: Department of |
|Families Fund | |social services for the |
| | |Emergency Food Assistance |
| | |Program. |
|--------------------+------------+--------------------------|
|Municipal Shelter |$244,701 |As many shelters as apply |
|Spay-Neuter Fund | |and receive grants |
| | |provided from the monies |
| | |contributed. |
|--------------------+------------+--------------------------|
|Rare & Endangered |$558,681 |1 group: Department of |
|Species | |Fish and Wildlife |
|Preservation | |endangered conservation |
|Program | |programs. |
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|--------------------+------------+--------------------------|
|Safely Surrendered |$158,645 |1 group: Department of |
|Baby Fund | |Social Services for |
| | |Safely Surrender Baby Law |
| | |awareness programs. |
|--------------------+------------+--------------------------|
|School Supplies for |Initial Tax |As many as apply and |
|Homeless Children |Return 2012 |receive grants that are |
|Fund | |provided for by the |
| | |monies contributed. |
|--------------------+------------+--------------------------|
|State Children's |$376,243 |1 group: Department of |
|Trust for the | |Social Services for |
|Prevention of Child | |prevention and |
|Abuse | |intervention programs. |
|--------------------+------------+--------------------------|
|State Parks |Initial Tax |As many as purchase a |
|Protection |Return 2012 |parks pass that are |
|Fund/Parks Pass | |provided for by the |
|Purchase | |monies contributed. |
| | | |
------------------------------------------------------------
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
According to the Senate Appropriations Committee, the FTB
estimates that this bill results in an annual revenue loss of
$10,000 (General Fund) beginning in 2015-16. The FTB indicates
that its own costs will not be impacted because the check-off
box is currently on the tax form.
SUPPORT : (Verified 8/20/13)
California Association of Food Banks (source)
Alameda County Community Food Bank
CalComUI
California Catholic Conference, Inc.
California Food Policy Advocates
County Welfare Directors Association of California
Feeding America San Diego
Food Bank of Yolo County
Food for People, Inc.
Hunger Advocacy Network
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Jewish Family Services of San Diego
Junior Leagues of California
Los Angeles Regional Food Bank
Marin Food Bank
Orange County Food Bank
Public Counsel
San Diego Hunger Coalition
San Francisco Food Bank
Second Harvest Food Bank
St. Anthony Foundation
The Jacobs & Cushman San Diego Food Bank
Western Center on Law & Poverty
OPPOSITION : (Verified 8/20/13)
Department of Finance
ARGUMENTS IN SUPPORT : Proponents argue that food banks across
the state have seen an unprecedented increase in requests for
assistance since 2008, and the food lines are not getting any
shorter. Californians can help fight hunger by contributing to
the Emergency Food for Families Fund on their state income tax
returns, which provides funds for local food banks to purchase
healthy food for low-income families.
ARGUMENTS IN OPPOSITION : The Department of Finance is opposed
to this bill because it will cost the state's General Fund an
estimated $10,000 per year.
ASSEMBLY FLOOR : 77-0, 8/19/13
AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Bigelow, Bloom,
Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian
Calderon, Campos, Chau, Chávez, Chesbro, Conway, Cooley,
Dahle, Daly, Dickinson, Donnelly, Eggman, Fong, Fox, Frazier,
Beth Gaines, Garcia, Gatto, Gomez, Gonzalez, Gordon, Gorell,
Gray, Grove, Hagman, Hall, Harkey, Roger Hernández, Holden,
Jones, Jones-Sawyer, Levine, Linder, Logue, Lowenthal,
Maienschein, Mansoor, Medina, Melendez, Mitchell, Morrell,
Mullin, Muratsuchi, Nazarian, Nestande, Olsen, Pan, Patterson,
Perea, Quirk, Quirk-Silva, Rendon, Salas, Skinner, Stone,
Ting, Wagner, Waldron, Weber, Wieckowski, Wilk, Williams,
Yamada, John A. Pérez
NO VOTE RECORDED: V. Manuel Pérez, Vacancy, Vacancy
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AGB:d 8/21/13 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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