BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | SB 782| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- THIRD READING Bill No: SB 782 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 : 5-0, 1/21/14 AYES: De León, Gaines, Hill, Padilla, Steinberg NO VOTE RECORDED: Walters, Lara SUBJECT : Income taxes: voluntary contributions: California Sexual Violence Victim Services Fund SOURCE : California Coalition Against Sexual Assault DIGEST : This bill adds the "California Sexual Violence Victim Services Fund" on the personal state income tax form for voluntary contributions, when space is available. Requires contributions received through the fund to be distributed to the Office of Emergency Services (OES) for allocation to the California Coalition Against Sexual Assault (CALCASA) for the awarding of grants to support CALCASA rape crisis programs for victims of rape and sexual assault. CONTINUED SB 782 Page 2 ANALYSIS : Existing law allows taxpayers to contribute to one or more of 20 voluntary contribution funds (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. This bill adds the "California Sexual Violence Victim Services Fund" on the personal state income tax form for voluntary contributions, when space is available. Requires contributions received through the fund to be distributed to OES for allocation to CALCASA for the awarding of grants to support CALCASA rape crisis programs for victims of rape and sexual assault. This bill maintains existing requirements for the program, including the annual reporting by September 1st of each year by the Franchise Tax Board (FTB) to determine eligibility for the following year, and the $250,000 minimum contribution requirements, beginning in the second year, with annual adjustment for inflation and an automatic repeal after five years. Background The 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 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. The following check-offs do not have a minimum contribution requirement: CONTINUED SB 782 Page 3 California Firefighters' Memorial Foundation Fund, California Peace Officer Memorial Foundation Fund, and California Seniors Special Fund. 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 | $395,854 | As many as contract or | |Disease/Related | | receive grants provided | |Disorders Fund | | by the monies | | | | contributed. | | | | | |---------------------+------------+-------------------------| |CA Breast Cancer | $362,308 | As many as apply and | |Research Fund | | receive grants provided | | | | from the monies | | | | contributed. | | | | | |---------------------+------------+-------------------------| |CA Cancer Research | $384,308 | As many as apply and | |Fund | | receive grants provided | | | | from the monies | | | | contributed. | | | | | |---------------------+------------+-------------------------| |CA Firefighters' | $123,414 | California Fire | |Memorial Fund | | Foundation. | | | | | |---------------------+------------+-------------------------| |CA Fund for Senior | $228,965 | California Senior | |Citizens | | Legislature. | | | | | |---------------------+------------+-------------------------| |CA Peace Officer | $125,889 | California Peace | |Memorial Foundation | | Officer Memorial | |Fund | | Commission. | CONTINUED SB 782 Page 4 | | | | |---------------------+------------+-------------------------| |CA Sea Otter Fund | $227,791 | Department of Fish and | | | | Wildlife, and as many | | | | as apply for grants and | | | | contracts provided for | | | | by 50% of | | | | contributions. | | | | | |---------------------+------------+-------------------------| |CA Seniors Special | $58,783 | 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 | $70,298 | 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 | $54,210 | To the Department of | CONTINUED SB 782 Page 5 |Fund | | Education to provide | | | | for the CA Youth | | | | Leadership Project. | | | | | |---------------------+------------+-------------------------| |Child Victims of | $214,985 | As many counseling and | |Human Trafficking | | prevention centers that | |Fund | | apply and receive | | | | grants provided from | | | | monies contributed. | | | | | |---------------------+------------+-------------------------| |Emergency Food for | $420,719 | To the Department of | |Families Fund | | Social Services for the | | | | Emergency Food | | | | Assistance Program. | | | | | |---------------------+------------+-------------------------| |Municipal Shelter | $212,657 | As many as apply and | |Spay-Neuter Fund | | receive grants provided | | | | from the monies | | | | contributed. | | | | | |---------------------+------------+-------------------------| |Rare & Endangered | $441,809 | Department of Fish and | |Species Preservation | | Wildlife endangered | |Program | | conservation programs. | | | | | |---------------------+------------+-------------------------| |School Supplies for | $360,676 | As many as apply and | |Homeless Children | | receive grants provided | |Fund | | for by the monies | | | |contributed. | | | | | |---------------------+------------+-------------------------| |State Children's | $297,668 | To the Department of | |Trust for the | | Social Services for | |Prevention of Child | | prevention and | |Abuse | | intervention programs. | | | | | |---------------------+------------+-------------------------| |State Parks | $366,504 | As many as purchase a | |Protection | | parks pass that can be | |Fund/Parks Pass | | provided from the | CONTINUED SB 782 Page 6 |Purchase | | monies contributed. | | | | | |---------------------+------------+-------------------------| |Keep Arts in Schools |Initial Tax | To the Arts Council for | |Fund | Return | grants to organizations | | | | providing parts | | | 2013 | programs in schools. | | | | | |---------------------+------------+-------------------------| |Protect Our Coast |Initial Tax | To the California | |and Oceans Fund | Return | Coastal Commission to | | | | provide grants to | | | 2013 | organizations in | | | | support of coastal | | | | resource programs and | | | | related educational | | | | activities. | | | | | |---------------------+------------+-------------------------| |American Red Cross, |Initial Tax | To OES for distribution | |California Chapter | Return | to the American Red | | | | Cross. | | | 2013 | | | | | | | | | | | | | | ------------------------------------------------------------ In 2005 the Legislature enacted legislation to establish the California Sexual Violence Victims Services Fund (AB 190, Negrete McLeod, Chapter 160). The fund was added to the tax form in 2006 and received $199,900 in contributions. In 2007, the fund received $184,980 in taxpayer contributions. The enacting statute required the fund to meet a minimum contribution level of $250,000 or it would be repealed. The fund did not meet the required threshold and the fund was removed from the tax form. Prior/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. CONTINUED SB 782 Page 7 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. 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 received through the School Supplies for Homeless Children Fund. FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes Local: No According to the Senate Appropriations Committee, the FTB estimates that this bill will result in an annual revenue loss of $10,000 (General Fund) for each year that the VCF is included on the personal income tax form. The FTB and the State Controller's Office will be reimbursed for related administrative costs. The bill will not significantly impact OES's costs. SUPPORT : (Verified 1/22/14) California Coalition Against Sexual Assault (source) AB:ne 1/22/14 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END **** CONTINUED SB 782 Page 8 CONTINUED