BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                            



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                                 UNFINISHED BUSINESS


          Bill No:  SB 782
          Author:   DeSaulnier (D), et al.
          Amended:  7/2/14
          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

           SENATE FLOOR  :  33-0, 1/23/14
          AYES:  Anderson, Beall, Berryhill, Block, Cannella, Corbett,  
            Correa, De León, DeSaulnier, Evans, Gaines, Galgiani, Hancock,  
            Hernandez, Hill, Hueso, Huff, Jackson, Knight, Lara, Leno,  
            Lieu, Liu, Mitchell, Monning, Padilla, Roth, Steinberg,  
            Torres, Vidak, Walters, Wolk, Yee
          NO VOTE RECORDED:  Calderon, Fuller, Nielsen, Pavley, Wright,  
            Wyland

           ASSEMBLY FLOOR  :  78-0, 8/19/14 - See last page for vote


           SUBJECT  :    Income taxes:  voluntary contributions:  California  
          Sexual Violence
                       Victim Services Fund

           SOURCE  :     California Coalition Against Sexual Assault
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           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 allocated to the  
          Office of Emergency Services (OES) for the distribution of  
          grants to specified rape crisis centers.

           Assembly Amendments  remove California Coalition Against Sexual  
          Assault (CALCASA) from the grant award funding process and  
          instead allocate the funds through the OES for distribution of  
          grants to rape crisis centers in California and prohibit a rape  
          crisis center from using grant award money for its  
          administrative costs.

           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 reauthorizes the addition of the California Sexual  
          Violence Victim Services Fund (Fund) checkoff to the personal  
          income tax return upon the removal of another VCF from the  
          return.  Specifically, this bill: 

          1.Establishes the Fund in the State Treasury. 

          2.Allows a deduction for any contribution made to the Fund. 

          3.Provides that all money transferred to the Fund, upon  
            appropriation by the Legislature, shall be allocated to the: 

             A.   Franchise Tax Board (FTB) and the State Controller for  
               reimbursement of all costs incurred in administering the  
               VCF; and, 

             B.   OES for the distribution of grants to rape crisis  
               centers in California that are in active status, as  
               reflected on the Business Search page of the Secretary of  

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               State's Internet Web site, and that are exempt from federal  
               income taxation under Internal Revenue Code Section  
               501(c)(3). 

          1.Requires the OES to award grants and be responsible for  
            overseeing the grant program. 

          2.Prohibits a rape crisis center from using grant moneys for its  
            administrative costs. 

          3.Prohibits the OES from using funds for its administrative  
            costs. 

          4.Maintains existing requirements for the program, including the  
            annual reporting by September 1 of each year by the 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
           
          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.

          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  

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          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:

           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.             |
          |                     |            |                         |

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          |---------------------+------------+-------------------------|
          |CA Fund for Senior   |  $228,965  | California Senior       |
          |Citizens             |            | Legislature.            |
          |                     |            |                         |
          |---------------------+------------+-------------------------|
          |CA Peace Officer     |  $125,889  | California Peace        |
          |Memorial Foundation  |            | Officer Memorial        |
          |Fund                 |            | Commission.             |
          |                     |            |                         |
          |---------------------+------------+-------------------------|
          |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,     |

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          |                     |            | whose board may award   |
          |                     |            | additional $10K annual  |
          |                     |            | grants to additional    |
          |                     |            | nonprofit civic youth   |
          |                     |            | organizations.          |
          |                     |            |                         |
          |---------------------+------------+-------------------------|
          |CA Youth Leadership  |  $54,210   | To the Department of    |
          |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    |

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          |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       |
          |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    |                         |
          |                     |            |                         |
          |                     |            |                         |
          |                     |            |                         |
           ------------------------------------------------------------ 

           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.
          
          AB 394 (Yamada, Chapter 671, Statutes of 2013) extends the  
          repeal date of the California Alzheimer's Disease and Related  

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          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  8/19/14)

          California Coalition Against Sexual Assault (source) 
          Board of Equalization Chairman, Jerome Horton
          Crime Victims United of California 

           ASSEMBLY FLOOR  :  78-0, 8/19/14
          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, Gonzalez, Gordon, Gorell,  
            Gray, Grove, Hagman, Hall, Harkey, Roger Hernández, Holden,  

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            Jones, Jones-Sawyer, Levine, Linder, Logue, Lowenthal,  
            Maienschein, Mansoor, 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: Gomez, Vacancy


          AB:nl:e  8/19/14   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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