BILL ANALYSIS Ó
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THIRD READING
Bill No: SB 761
Author: DeSaulnier (D)
Amended: 1/17/14
Vote: 21
PRIOR VOTES NOT RELEVANT
SENATE GOVERNANCE & FINANCE COMMITTEE : 6-0, 1/15/14
AYES: Wolk, Knight, Beall, DeSaulnier, Hernandez, Liu
NO VOTE RECORDED: Vacancy
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
SUBJECT : Voluntary contributions: school supplies for
homeless children
SOURCE : K to College
DIGEST : This bill changes the method for allocating funds in
the School Supplies for Homeless Children Fund. Requires the
California Department of Education (CDE) to designate a
tax-exempt, nonprofit organization to use funds for the sole
purpose of providing school supplies and health-related products
to partnering learning education agencies for distribution to
homeless children, as defined, and provide a 100% match for all
funds received. Requires CDE to enter into a memorandum of
understanding with the nonprofit organization.
ANALYSIS : Existing law allows taxpayers to contribute money
to one or more of 20 voluntary contribution funds (VCFs) by
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checking a box on their state income tax return. California law
requires contributions made through so-called "check-offs" to be
made from taxpayers' own resources and not from their tax
liability, as is possible on federal tax returns.
In 2012, the Legislature created the School Supplies for
Homeless Children Fund, administered by CDE and the State
Superintendent of Education to award grants through a
competitive process to provide school supplies and
health-related products to homeless children using funds from a
VCF on the income tax form (SB 1571, DeSaulnier, Chapter 459,
2012). In the first eight months of last year, this VCF's first
year, taxpayers dedicated $360,000 to the fund, more than many
other VCFs.
However, CDE must obtain budgetary authorization to hire
personnel necessary to administer a competitive grant program
and monitor use of funds prior to awarding grants, so it has not
yet awarded funds. CDE has requested a budget change proposal
for the 2014-15 year to do so, but it has not yet been
authorized.
This bill changes the manner in which CDE allocates funds from
the School Supplies for Homeless Children Fund by repealing the
competitive grant program. Instead, the measure requires CDE to
designate a tax-exempt, nonprofit organization to use funds for
the sole purpose of providing school supplies and health-related
products to partnering learning education agencies for
distribution to homeless children, as defined, and provide a
100% match for all funds received. Requires CDE to enter into a
memorandum of understanding with the nonprofit.
CDE's initial designation of an organization is valid until
January 1, 2017, on which date CDE can designate the same or
another organization for another three year period. CDE can
revoke the designation should the organization fail to comply
with requirements in law, but can designate another organization
within three calendar months.
CDE can only send funds to the organization after evidence is
presented that the local education agency or domestic violence
shelter received the materials. Additionally, CDE can only be
reimbursed for costs verifying that the organization procures
the materials and provides matching funds.
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The organization receiving VCF funds must only use them to
procure, assemble, and ship school supplies and health-related
products, and not for administrative purposes, costs associated
with administering grants, or any other operational purpose.
The organization may also provide supplies to children living in
domestic violence shelters.
Comments
According to the author, "In 2012, SB 1571 was signed into law
to establish the School Supplies for Homeless Children Fund and
allow taxpayers to designate contributions to the Fund on their
personal income tax returns. The Fund has currently generated
over $360,000. Unfortunately, the current language of the bill
requires the CDE to follow a two-year budget process that will
cost $150,000 for first year administrative costs and several
tens of thousands more each subsequent year. Additionally,
under the current structure of the bill, the Fund is not
expected to provide any material assistance to homeless children
for an extended period of time."
"SB 761 simplifies the School Supplies for Homeless Children
Fund allocation process to avoid the CDE's budget process, and
allows a timely and efficient distribution process that will
ensure all awarded funds go directly to the benefit of homeless
children."
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 1/21/14)
K to College (source)
Give Something Back Office Supplies
AB:e 1/22/14 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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