BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 1789|
|Office of Senate Floor Analyses | |
|(916) 651-1520 Fax: (916) | |
|327-4478 | |
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THIRD READING
Bill No: AB 1789
Author: Santiago (D), et al.
Amended: 6/27/16 in Senate
Vote: 21
SENATE GOVERNANCE & FIN. COMMITTEE: 6-0, 6/15/16
AYES: Hertzberg, Nguyen, Beall, Hernandez, Lara, Moorlach
NO VOTE RECORDED: Pavley
SENATE APPROPRIATIONS COMMITTEE: 7-0, 8/1/16
AYES: Lara, Bates, Beall, Hill, McGuire, Mendoza, Nielsen
ASSEMBLY FLOOR: 76-0, 5/19/16 (Consent) - See last page for
vote
SUBJECT: Personal income taxes: voluntary contributions:
School Supplies for Homeless Children Fund
SOURCE: Author
DIGEST: This bill extends the sunset date for the School
Supplies for Homeless Children Fund tax check-off on the
personal income tax return.
ANALYSIS:
Existing law:
AB 1789
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.
2)Allows contribution amounts to be claimed as charitable
contributions on taxpayers' tax returns in the subsequent
year.
3)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return until they are repealed by a sunset date or fail to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:
a) California Firefighters' Memorial Foundation Fund,
b) California Peace Officer Memorial Foundation Fund, and
c) California Seniors Special Fund.
AB 1789
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This bill:
1)Extends the sunset for the School Supplies for Homeless
Children Fund to January 1, 2022.
2)Expands eligible individuals who may receive school supplies.
Background
The School Supplies for Homeless Children Fund was originally
authorized by SB 1571 (DeSaulnier, Chapter 459, Statutes of
2012) in 2012 to help provide essential school supplies to
homeless children. To date, the Fund has established a
successful record of generating taxpayer contributions.
Specifically, the Fund received $337,949 in valid contributions
in 2014, and $398,900 in 2015.
FISCAL EFFECT: Appropriation: No Fiscal
Com.:YesLocal: No
According to the Senate Appropriations Committee:
The Franchise Tax Board (FTB) estimates that the bill would
result in annual revenue losses of $10,000 in 2017-18, and
$15,000 thereafter (General Fund).
The State Controller's Office, the Department of Social
Services, and FTB and would be reimbursed for related
administrative costs.
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SUPPORT: (Verified8/3/16)
California Catholic Conference, Inc.
California State PTA
California Teachers Association
Common Sense Kids Action
Give Something Back Office Supplies
K to College
League of California Cities
OPPOSITION: (Verified8/3/16)
California Department of Finance
ARGUMENTS IN SUPPORT: According to the author, "Homelessness
is prevalent in urban and rural areas of California. The Los
Angeles School District has the highest number of homeless
students (14,323) and Sacramento ranks among the top six
districts in overall number of homeless students and as a county
has more homeless students than any other in Northern
California. A significant barrier to success homeless students
face is access to basic materials such as school supplies,
hygienic and dental products and other basic necessities. Lack
of basic material needs accompanied with low self-esteem lead to
absenteeism and truancy, which prevents homeless students from
obtaining the education that is their best opportunity to escape
poverty. The School Supplies for Homeless Children Fund
addresses the basic necessities these children need to succeed."
ARGUMENTS IN OPPOSITION: Opponent argues 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: 76-0, 5/19/16
AYES: Achadjian, Alejo, Travis Allen, Arambula, Atkins, Baker,
Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke,
AB 1789
Page 5
Calderon, Campos, 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, Jones-Sawyer, Kim, Lackey,
Levine, Linder, Lopez, Low, Maienschein, Mayes, Medina,
Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Olsen,
Patterson, Quirk, Ridley-Thomas, Rodriguez, Salas, Santiago,
Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber,
Wilk, Wood, Rendon
NO VOTE RECORDED: Chang, Mathis, McCarty, Williams
Prepared by:Myriam Bouaziz / GOV. & F. / (916) 651-4119
8/3/16 18:13:29
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