BILL ANALYSIS Ó
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UNFINISHED BUSINESS
Bill No: SB 761
Author: DeSaulnier (D)
Amended: 8/18/14
Vote: 27 - Urgency
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
SENATE FLOOR : 30-1, 1/23/14
AYES: Beall, Berryhill, Block, Cannella, Corbett, Correa,
DeSaulnier, Evans, Gaines, Galgiani, Hancock, Hernandez, Hill,
Hueso, Jackson, Knight, Lara, Leno, Lieu, Liu, Mitchell,
Monning, Padilla, Roth, Steinberg, Torres, Vidak, Walters,
Wolk, Yee
NOES: Anderson
NO VOTE RECORDED: Calderon, De León, Fuller, Huff, Nielsen,
Pavley, Wright, Wyland, Vacancy
ASSEMBLY FLOOR : 77-0, 8/20/14 - See last page for vote
SUBJECT : Voluntary contributions: school supplies for
homeless children
SOURCE : K to College
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DIGEST : 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 (CDE) to the Department of
Social Services (DSS), and makes the following specified changes
to the requirements and administration of the Fund and program.
Assembly Amendments transfer responsibility of allocating the
funds from CDE to DSS, allow monies to be used for local
assistance expenditures, and add an urgency clause.
ANALYSIS : Existing law allows taxpayers to contribute money
to one or more of 20 voluntary contribution funds (VCFs) by
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 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).
In the first eight months of 2013, this VCF's first year,
taxpayers dedicated $360,000 to the Fund, more than many other
VCFs.
This bill:
1.Transfers responsibility for administering the Fund, a
voluntary contribution fund on the personal income tax return,
from CDE to DSS, and makes the following specified changes to
the requirements and administration of the Fund and program.
2.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.
3.Requires the Controller to transfer funds appropriated to CDE
for FY 2014-15 to DSS for distribution to the designated
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nonprofit organization.
4.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.
5.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.
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: Yes Fiscal Com.: Yes
Local: No
According to the Assembly Appropriations Committee, minor and
absorbable administrative costs to the Franchise Tax Board,
State Controller, and DSS, reimbursable from Fund proceeds;
insignificant impact to income tax revenue.
SUPPORT : (Verified 8/20/14)
K to College (source)
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California Teachers Association
Give Something Back Office Supplies
Los Angeles County of Education
Partnership to End Domestic Violence
ASSEMBLY FLOOR : 77-0, 8/20/14
AYES: Achadjian, Alejo, Allen, Ammiano, 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, Gray, Hagman, Hall, Harkey, Roger Hernández, Holden,
Jones, Jones-Sawyer, Levine, Linder, Logue, Lowenthal,
Maienschein, Medina, Melendez, Mullin, Muratsuchi, Nazarian,
Nestande, Olsen, Pan, Patterson, Perea, John A. Pérez, V.
Manuel Pérez, Quirk, Quirk-Silva, Rendon, Ridley-Thomas,
Rodriguez, Salas, Skinner, Stone, Ting, Wagner, Waldron,
Weber, Wieckowski, Wilk, Williams, Yamada, Atkins
NO VOTE RECORDED: Grove, Mansoor, Vacancy
AB:e 8/20/14 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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