BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 924|
|Office of Senate Floor Analyses | |
|(916) 651-1520 Fax: (916) | |
|327-4478 | |
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THIRD READING
Bill No: AB 924
Author: Cooley (D)
Amended: 4/29/15 in Assembly
Vote: 21
SENATE GOVERNANCE & FIN. COMMITTEE: 7-0, 6/17/15
AYES: Hertzberg, Nguyen, Beall, Hernandez, Lara, Moorlach,
Pavley
SENATE APPROPRIATIONS COMMITTEE: 6-0, 6/29/15
AYES: Lara, Beall, Hill, Leyva, Mendoza, Nielsen
NO VOTE RECORDED: Bates
ASSEMBLY FLOOR: 74-0, 5/22/15 - See last page for vote
SUBJECT: Personal income tax: voluntary contributions:
State Childrens Trust Fund
SOURCE: Author
DIGEST: This bill reauthorizes the addition of the State
Children's Trust Fund check-off to the personal income tax
return.
ANALYSIS:
Existing law:
AB 924
Page 2
1)Allows taxpayers to contribute money to voluntary contribution
funds (VCFs) by checking a box on their state income tax
returns. 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. Check-off amounts may be claimed as
charitable contributions on taxpayers' tax returns in the
subsequent year.
2)Requires that each VCF is individually added to the tax return
by legislation. With a few exceptions, VCFs remain on the
return until they are repealed by a sunset date or fail to
generate a minimum contribution amount. In general, the
minimum contribution amounts are adjusted annually for
inflation. For most VCFs, the minimum contribution amount is
$250,000, beginning in the fund's second 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.
1)Requires the Franchise Tax Board (FTB) to deposit the total of
all contributions into the fund created as part of the VCF's
legislative authorization. For some VCFs, such as the Protect
Our Coast and Ocean Fund, taxpayers' contributions are
allocated to a state agency for use in a state administered
grant program. Other VCFs' authorizing statutes direct
administrative agencies to allocate donations to a private
organization. For example, the Office of Emergency Services
passes VCF funds to the American Red Cross. Other funds
require the State Controller to send the funds directly to
private organizations without passing through an
administrative agency, such as the California Fire Foundation.
The FTB, the Controller, and an administrative agency may
deduct from the amount of donations each VCF receives for
direct costs of administering a fund.
This bill will reauthorize the addition of the State Children's
Trust Fund check-off to the personal income tax return.
Background
AB 924
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There are currently 18 check-offs listed on the tax return form.
The tax check-off program typically collects $4-5 million in
annual contributions for all VCFs.
The State Children's Trust Fund first appeared on the 1983
personal income tax return. By 2014, the inflation-adjusted
minimum contribution threshold was $324,972, but the fund only
received contributions of approximately $303,000. As a result,
the fund was not included on the 2014 personal income tax return
(which is filed in 2015) and discontinued. Reauthorizing the
Fund effectively resets the minimum contribution to $250,000 in
contravention of the general policy for voluntary contribution
funds.
FISCAL EFFECT: Appropriation: No Fiscal
Com.:YesLocal: No
According to the Senate Appropriations Committee, FTB estimates
that this bill will result in an annual revenue loss of $8,000
(General Fund) for every $250,000 contributed by itemizing
taxpayers. FTB, the Department of Social Services, and the
Controller's Office will be reimbursed for related
administrative costs.
SUPPORT: (Verified7/1/15)
California Family Resource Association
Child Abuse Prevention Center
Child Abuse Prevention Council of Sacramento
Children's Bureau of Southern California
Insights Counseling Group
Kern County Network for Children
Kids First
Local Planning Council for Child Care & Development in Del Norte
County
North County Rape Crisis & Child Protection Center
Orangewood Children's Foundation
Plumas Crisis Intervention and Resource Center
Prevent Child Abuse California
AB 924
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Roundhouse Council
Santa Maria Valley Youth & Family Center
The Partnership for Safe Families & Communities of Ventura
County
OPPOSITION: (Verified7/1/15)
California Department of Finance
ARGUMENTS IN SUPPORT: Supporters note that the State
Children's Trust Fund has, until now, been one of the twenty
donation options on California Tax Forms. AB 924 would
reinstate the State Children's Trust Fund, ensuring that
voluntary contributions to the Fund remain an option on tax
forms.
Additionally, the loss of this funding stream is resulting in
fewer prevention programs that directly target child abuse and
neglect, a preventable tragedy that affects nearly half a
million California children each year.
ARGUMENTS IN OPPOSITION: Opponents argue that the bill is of
limited value and results in a loss to the General Fund.
Additionally, it is unclear why special preference should be
given to one organization over the countless others that are not
on the tax form.
ASSEMBLY FLOOR: 74-0, 5/22/15
AYES: Achadjian, Travis Allen, Baker, Bigelow, Bloom, Bonilla,
Bonta, Brough, Brown, Burke, Calderon, Campos, Chang, Chau,
Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly,
Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina
Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez,
Gordon, Gray, Grove, Hadley, Harper, Roger Hernández, Holden,
Irwin, Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low,
Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin,
Nazarian, Obernolte, Patterson, Perea, Quirk, Rendon,
AB 924
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Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark
Stone, Thurmond, Ting, Wagner, Wilk, Williams, Wood, Atkins
NO VOTE RECORDED: Alejo, Jones, O'Donnell, Olsen, Waldron,
Weber
Prepared by:Myriam Bouaziz / GOV. & F. / (916) 651-4119
7/1/15 16:08:49
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