BILL ANALYSIS Ó
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2015 - 2016 Regular Session
SB 1416 (Stone) - Voluntary contribution: Revive the Salton Sea
Fund
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|Version: April 27, 2016 |Policy Vote: GOV. & F. 7 - 0 |
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|Urgency: No |Mandate: No |
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|Hearing Date: May 9, 2016 |Consultant: Robert Ingenito |
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This bill does not meet the criteria for referral to the
Suspense File.
Bill Summary: AB 1416 would authorize the addition of the Revive
the Salton Sea Fund check-off to the personal income tax return.
Fiscal Impact:
The Franchise Tax Board (FTB) estimates that this bill
would result in an annual revenue loss of $8,000 (General
Fund) for every $250,000 contributed by itemizing
taxpayers.
The Natural Resources Agency would incur minor and
absorbable costs to administer the program and provide
grants.
SB 1416 (Stone) Page 1 of
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The State Controller's Office 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 create the Revive the Salton Sea
Fund (Fund), and allow a taxpayer to make a voluntary
contribution to the Fund on the state personal income tax
return. The bill would provide that all money transferred to the
Fund, upon appropriation by the Legislature, be allocated as
follows: (1) To FTB and the State Controller for reimbursement
of all costs incurred in administering the check-off, (2) to the
Natural Resources Agency, for the distribution of grants, as
provided, and (3) up to five percent for the development of a
mechanism to provide ongoing public awareness through activities
that will promote the charitable tax deduction for the Fund and
seek continued contributions, as specified. Like most other
check-offs, the Fund would be required to meet a minimum
contribution amount of $250,000, adjusted annually for
inflation. It would not appear on the tax return until another
voluntary contribution designation is removed, or space is
available, and would sunset five years later.
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 at the
Assembly Desk awaiting committee referral.
Staff Comments: FTB data indicate that in 2012, 89,335 out of 15
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million taxpayers contributed a total of $4.8 million via tax
check-offs.
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