BILL ANALYSIS Ó
AB 1399
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CONCURRENCE IN SENATE AMENDMENTS
AB
1399 (Baker)
As Amended June 9, 2016
Majority vote
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|ASSEMBLY: |78-0 |(January 27, |SENATE: |37-0 |(August 15, |
| | |2016) | | |2016) |
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Original Committee Reference: REV. & TAX.
SUMMARY: Authorizes the addition of the California Domestic
Violence Victims Fund (Fund) checkoff to the personal income tax
(PIT) return upon the removal of another voluntary contribution
fund (VCF) from the return, or as soon as space is available.
The Senate amendments:
1)Add a coauthor.
2)Clarify that the Office of Emergency Services (OES) shall
distribute funds to domestic violence programs in California
that are active grant recipients under the Comprehensive
Statewide Domestic Violence Program.
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3)Rename the Fund the "California Domestic Violence Victims
Fund".
4)Delete superfluous provisions.
EXISTING LAW:
1)Allows taxpayers to contribute to one or more of 19 VCFs on
the 2015 PIT return.
2)Provides a specific sunset date for each VCF, except for the
California Seniors Special Fund and the State Parks Protection
Fund.
3)Requires each VCF to meet an annual minimum contribution
amount to remain in effect, except for the California
Firefighters' Memorial Fund, the California Peace Officer
Memorial Foundation Fund, and the California Seniors Special
Fund.
AS PASSED BY THE ASSEMBLY, this bill:
1)Established the California Domestic Violence Fund in the State
Treasury.
2)Provided 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 domestic violence
programs in California that are in active status, as
reflected on the Business Search page of the Secretary of
State's Internet Web site, that are exempt from federal
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income taxation as an organization described in Internal
Revenue Code Section 501(c)(3), and are grant recipients
under the Comprehensive Statewide Domestic Violence Program
within the OES.
3)Provided that the OES shall award grants and be responsible
for overseeing the grant program.
4)Provided that domestic violence programs and the OES shall not
use grant moneys awarded or funds for administrative costs.
5)Provided for the Fund provisions' automatic sunset on January
1 of the fifth taxable year following the Fund's first
appearance on the PIT return.
6)Required the Fund to meet a minimum contribution threshold of
$250,000 indexed for inflation.
FISCAL EFFECT: According to the Senate Appropriations
Committee:
1)The FTB estimates that, beginning in fiscal year 2017-18, this
bill would result in an annual revenue loss of $8,000 (General
Fund) for every $250,000 contributed by itemizing taxpayers.
2)The OES would incur minor and absorbable costs to administer
the program and provide grants.
3)The State Controller's Office and the FTB would be reimbursed
for related administrative costs.
COMMENTS:
1)Author's Statement. The author has provided the following
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statement in support of this bill:
AB 1399 will increase available resources to victims of
domestic violence by providing additional resources through
a donations option on California tax returns to the
California Domestic Violence [Victims] Fund. Specifically,
this bill will allow an individual to designate on the tax
return that a contribution in excess of the tax liability
be made to the California Domestic Violence [Victims] Fund.
The cause for unmet critical needs are reduced government
funding (37%,) cuts from private funding (25%,) lack of
staff (23%,) and a reduction in individual donations (13%.)
By providing additional opportunities for donations to
domestic violence programs, we can better provide a safe
haven for families.
2)Arguments in Support. According to Safe Alternatives to
Violent Environments, "Domestic violence programs rely on a
wide range of funding sources to support their programs,
including government grants, foundations, corporate donations,
and individual donations. Allowing individuals to easily
donate to the California Domestic Violence [Victims] Fund
through their individual tax filing will encourage
Californians to support these essential programs and fund
lifesaving services."
3)So many causes, so little space. There are countless worthy
causes that would benefit from the inclusion of a VCF on the
state's income tax returns. At the same time, space on the
returns is limited. Thus, it could be argued that the current
system for adding VCFs to the form is subjective and
essentially rewards organizations and causes that can convince
the Legislature to include their fund on the form.
Analysis Prepared by:
M. David Ruff & Carlos Anguiano / REV. & TAX. /
(916) 319-2098 FN:
0003561
AB 1399
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