BILL ANALYSIS Ó
AB 2371
Page 1
ASSEMBLY THIRD READING
AB
2371 (Frazier)
As Amended May 12, 2016
Majority vote
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|Committee |Votes|Ayes |Noes |
| | | | |
| | | | |
| | | | |
|----------------+-----+----------------------+--------------------|
|Revenue & |9-0 |Ridley-Thomas, | |
|Taxation | |Brough, Dababneh, | |
| | |Gipson, Mullin, | |
| | |O'Donnell, Patterson, | |
| | |Quirk, Wagner | |
| | | | |
|----------------+-----+----------------------+--------------------|
|Appropriations |20-0 |Gonzalez, Bigelow, | |
| | |Bloom, Bonilla, | |
| | |Bonta, Calderon, | |
| | |Chang, McCarty, | |
| | |Eggman, Gallagher, | |
| | |Eduardo Garcia, Chau, | |
| | |Holden, Jones, | |
| | |Obernolte, Quirk, | |
| | |Santiago, Wagner, | |
| | |Weber, Wood | |
| | | | |
| | | | |
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AB 2371
Page 2
SUMMARY: Requires the addition of the Special Olympics 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. Specifically, this
bill:
1)Allows individuals to designate on their PIT return that a
contribution in excess of their tax liability, if any, be made
to the Fund in support of children and adults with
intellectual disabilities.
2)Establishes the Fund in the State Treasury.
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) State Department of Developmental Services (DDS) where
the balance shall be disbursed proportionately between the
Special Olympics Northern California and Special Olympics
Southern California according to each organization's
jurisdiction based on the county of the taxpayers
contributing. DDS may use up to 3% of allocated funds for
administrative costs.
4)Prohibits the Special Olympics Northern California and the
Special Olympics Southern California from using money received
from the Fund for administrative costs.
AB 2371
Page 3
5)Provides 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)Requires the Fund to meet a minimum contribution threshold of
$250,000 indexed for inflation to remain on the PIT return.
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.
FISCAL EFFECT: According to the Assembly Appropriations
Committee;
1)Minor and absorbable costs to administrate the Fund.
2)Minor ongoing General Fund revenue losses of up to $15,000 per
year resulting from itemized taxpayer deductions.
AB 2371
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COMMENTS:
1)Author's Statement: The author has provided the following
statement in support of this bill:
The Special Olympics Northern California (SONC) and
Southern California (SOSC) provide athletic
opportunities to children and adults with intellectual
disabilities, instilling the confidence they need to
succeed in life.
Through the power of sports, people with intellectual
disabilities discover new strengths and abilities,
skills and success. SONC and SOSC athletes find joy,
confidence and fulfillment - on the playing field and
in life. They also inspire people in their
communities and elsewhere to open their hearts to a
wider world of human talents and potential.
The California Special Olympics divided into two
chapters in 1995, SONC and SOSC. What started
originally as a small grassroots organization has
since become a powerful voice for athletes with
intellectual disabilities. SONC and SOSC have
provided athletic opportunities to over 40,000
athletes throughout the state.
AB 2371 will allow individuals to make a voluntary
contribution in excess of their tax liability, if any,
to the Special Olympics Fund. Contributions to the
Special Olympics Fund shall be used to conduct
activities of Special Olympics Northern California and
AB 2371
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Special Olympics Southern California.
2)Arguments in Support: The co-sponsors of this bill, SONC and
SOSC, state: "The change proposed to AB 2371 is both modest
and meaningful. The change proposed asks for no state funds,
but merely provides a vehicle for individuals to [voluntarily]
elect to make a contribution in support of Special Olympics
when completing their annual California State tax return
forms."
3)Arguments in Opposition: There is no opposition on file.
4)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 that can convince the
Legislature to include their fund on the form.
5)Special Olympics Fund: SONC and SOSC are chapters of Special
Olympics, an organization founded by Eunice Kennedy Shriver in
1968 that provides year-round sports training and athletic
competition for children and adults with intellectual
disabilities. The Special Olympics' global reach expands to
4.4 million athletes.
According to the proponents of this bill, SONC and SOSC serve
59,000 athlete families, receive assistance from over 45,000
volunteers and 18,000 law enforcement volunteers, and benefit
from 36,000 current donors. This wide base of support,
coupled with a big social media push during tax season if the
voluntary contribution designation is enacted, would help the
Fund meet its minimum contribution requirement.
AB 2371
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Analysis Prepared by:
Irene Ho / REV. & TAX. / (916) 319-2098 FN:
0002996