BILL ANALYSIS Ó
SB 761
Page 1
Date of Hearing: August 6, 2014
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
SB 761 (DeSaulnier) - As Amended: July 2, 2014
Policy Committee: Revenue &
Taxation Vote: 9-0
Urgency: No State Mandated Local Program:
No Reimbursable: No
SUMMARY
This bill transfers responsibility for administering the School
Supplies for Homeless Children Fund (the Fund), a voluntary
contribution fund on the personal income tax return, from the
Department of Education to the Department of Social Services
(DSS), and makes the following changes to the requirements and
administration of the Fund and program:
1)Requires DSS to designate a nonprofit organization to receive
distributions from the Fund for providing school supplies and
health-related products to partnering local education agencies
for distribution to homeless children, including children
living in domestic violence shelters; and provides such
designation shall be valid until January 1, 2017, and for
three-year designations thereafter.
2)Requires the Controller to transfer funds appropriated to the
Department of Education for FY 2014-15 to DSS for distribution
to the designated nonprofit organization.
3)Requires the designated nonprofit organization to provide a
minimum 100% match, either in cash or in kind, for all Fund
distributions, and prohibits the nonprofit organization from
using Fund distributions for administrative purposes or to
reimburse local agencies for administrative costs.
4)Requires DSS to conduct verification procedures prior to and
following the distribution of funds to ensure the designated
nonprofit organization has used the distributions in
compliance with statutory requirements.
SB 761
Page 2
FISCAL EFFECT
Minor and absorbable administrative costs to the Franchise Tax
Board, State Controller, and DSS, reimbursable from Fund
proceeds; insignificant impact to income tax revenue.
COMMENTS
1) Purpose. According to the author, this bill relocates the
Fund to DSS in order to avoid the costly budget process at the
Department of Education, ensuring more timely and efficient
distribution of proceeds. The author asserts the current
two-year budget process for the Department of Education will
result in approximately $150,000 of administrative costs in
the first year, tens of thousands annually thereafter, and
unnecessary delays in providing material assistance to
homeless children.
2) The School Supplies for Homeless Children Fund. The Fund was
originally authorized in 2012 by SB 1571 (DeSaulnier) to help
provide essential school supplies to homeless children. In
2013, the Fund received $367,868 in valid contributions, and
thus far in 2014, the Fund has received $276,891 in
contributions. Fund proceeds are currently allocated to the
Department of Education for providing school supplies and
health-related products to homeless children through a
competitive grant program developed by the Superintendent of
Public Instruction. This process requires the Department to
follow a two-year budget process, resulting in substantial
administrative cost and delaying the provision of benefits.
Amending and transferring the program to DSS will allow it to
avoid many of those administrative costs and delays.
3) K to College. The sponsor of this bill, K to College, is a
nonprofit organization that operates the largest charitable
school and dental supply program in California. According to
the sponsor, it donated $14,500,000 of materials to more than
230,000 low-income children throughout California between 2010
and 2013.
K to College raises funds from government agencies,
corporations, foundations, and individuals. It then purchases
bulk materials directly from factories in an effort to save on
costs. Pursuant to previous legislation sponsored by the
organization, inmates of the California prison system are
SB 761
Page 3
engaged, as part of their rehabilitation, to assemble
purchased supplies into kits. K to College partners directly
with school districts to ensure that materials reach students
in need, requiring each district to verify its distribution
process in writing.
4) Related Legislation. AB 2591 (Weber) creates the Homeless
Youth Basic Material Needs Assistance Program to be overseen
by DSS, which distributes funds appropriated by the
Legislature to participating counties that establish homeless
youth material needs assistance programs. AB 2591 is pending
before the Senate Committee on Appropriations.
Analysis Prepared by : Joel Tashjian / APPR. / (916) 319-2081