BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          AB 1399 (Baker) - Income taxes:  voluntary contributions:   
          California Domestic Violence Victims Fund
          
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          |Version: June 9, 2016           |Policy Vote: GOV. & F. 7 - 0    |
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          |Urgency: No                     |Mandate: No                     |
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          |Hearing Date: June 27, 2016     |Consultant: Robert Ingenito     |
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          This bill does not meet the criteria for referral to the  
          Suspense File.


          


          Bill  
          Summary: AB 1399 would authorize the addition of the California  
          Domestic Violence Victims Fund check-off to the personal income  
          tax return.    


          Fiscal  
          Impact:
                 The Franchise Tax Board (FTB) estimates that, beginning  
               in 2017- 18, this bill would result in an annual revenue  
               loss of $8,000 (General Fund) for every $250,000  
               contributed by itemizing taxpayers.

                 The Office of Emergency Services (OES) would incur minor  
               and absorbable costs to administer the program and provide  
               grants.







          AB 1399 (Baker)                                        Page 1 of  
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                 The State Controller's Office (SCO) and FTB and would be  
               reimbursed for related administrative costs.



          Background: Current law allows taxpayers to contribute money to one or more  
          of 19 voluntary contribution funds during the process of filing  
          their state income tax return (tax check-off). These  
          contributions are made from taxpayers' own resources, not from  
          their tax liability, as is the case with federal tax returns.  
          Check-off amounts are deductible as charitable contributions on  
          taxpayers' returns during the subsequent tax year. With some  
          exceptions, each voluntary contribution fund has a sunset date  
          and is required to meet a minimum contribution amount of  
          $250,000, adjusted annually for inflation.


          Proposed Law:  
          This bill would add the California Domestic Violence Victims  
          Fund (Fund), and allow a taxpayer to make a voluntary  
          contribution to the Fund on the state personal income tax  
          return, beginning once an existing check-off for charitable fund  
          contribution has been removed, or as soon as space is available.  
           The bill would require the Fund to meet a minimum contribution  
          threshold of $250,000 in the second calendar year the Fund  
          appears on the tax form, and the amount is indexed yearly for  
          inflation.
          Additionally, the bill would provide that all money transferred  
          to the Fund, upon appropriation by the Legislature, be allocated  
          as follows: (1) to FTB and SCO for reimbursement of all costs  
          incurred in administering the Fund, and (2) to OES for  
          distribution to domestic violence programs in California, as  
          specified.  


          The bill would prohibit funds to be used for administrative  
          costs by both grant recipients and OES. It would automatically  
          sunset on January 1 of the fifth taxable year following the  
          Fund's first appearance on the personal income tax form.












          AB 1399 (Baker)                                        Page 2 of  
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          Related  
          Legislation: SB 1476 (Committee on Governance and Finance) would  
          establish general provisions for voluntary contribution funds.  
          Specifically, the bill would (1) establish a seven-year sunset,  
          (2) require a minimum contribution amount of $250,000 beginning  
          in the fund's second year, and each year thereafter, requires  
          funds to be continuously appropriated, and (3) require  
          administering agencies to post information online about the use  
          of the funds.  SB 1476 is currently awaiting action by the full  
          Assembly. 


          Staff  
          Comments: FTB data indicate that in 2012, 89,335 out of 15  
          million taxpayers contributed a total of $4.8 million via tax  
          check-offs.  


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