BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 1416|
|Office of Senate Floor Analyses | |
|(916) 651-1520 Fax: (916) | |
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THIRD READING
Bill No: SB 1416
Author: Stone (R)
Amended: 4/27/16
Vote: 21
SENATE GOVERNANCE & FIN. COMMITTEE: 7-0, 4/20/16
AYES: Hertzberg, Nguyen, Beall, Hernandez, Lara, Moorlach,
Pavley
SENATE APPROPRIATIONS COMMITTEE: 6-0, 5/9/16
AYES: Lara, Beall, Hill, McGuire, Mendoza, Nielsen
NO VOTE RECORDED: Bates
SUBJECT: Voluntary contribution: Revive the Salton Sea Fund
SOURCE: Author
DIGEST: This bill authorizes the addition of the Revive the
Salton Sea Fund check-off to the personal income tax return.
ANALYSIS:
Existing law:
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
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Page 2
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return until they are repealed by a sunset date or fail to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.
This bill:
1)Adds the Revive the Salton Sea Fund (Fund), and allows a
taxpayer to make a voluntary contribution to the Fund on the
state personal income tax return.
2)Provides that all money transferred to the Fund, upon
appropriation by the Legislature, be allocated as follows:
a) To the Franchise Tax Board (FTB) and the State
Controller for reimbursement of all costs incurred in
administering the VCF.
b) To the Natural Resources Agency, to be used to fund or
supplement funding of state, county, and local agencies and
projects identified as necessary for the restoration and
maintenance of the Salton Sea, including projects
identified by the Salton Sea Authority.
c) Up to five percent of the funds allocated to the Fund
shall be used 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.
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Background
When a taxpayer contributes to VCFs, the FTB deposits the total
of all contributions, less an administrative fee, into the fund
created as part of the VCF's legislative authorization. For
some VCFs, such as the Protect Our Coast and Ocean Fund,
taxpayers' contributions are allocated to a state agency for use
in a state administered grant program. Other VCFs' authorizing
statutes direct administrative agencies to allocate donations to
a private organization. For example, the Office of Emergency
Services passes VCF funds to the American Red Cross. Other
funds require the State Controller to send the funds directly to
private organizations without passing through an administrative
agency, such as the California Fire Foundation. The Controller
and administrative agencies may deduct administrations fees from
the amount of donations each VCF receives.
There are currently 19 check-offs listed on the tax return form.
The tax check-off program typically collects $4-5 million in
annual contributions for all VCFs.
FISCAL EFFECT: Appropriation: No Fiscal
Com.:YesLocal: No
According to the Senate Appropriations Committee, the FTB
estimates that this bill will result in an annual General Fund
revenue loss of $8,000 for every $250,000 contributed by
itemizing taxpayers.
SUPPORT: (Verified5/11/16)
None received
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OPPOSITION: (Verified5/11/16)
None received
ARGUMENTS IN SUPPORT: According to the author, "One of the
most critical issues facing residents of Southern California and
the 28th Senate District is the restoration of the Salton Sea.
In May of 2015, Governor Brown created the Salton Sea Task Force
to begin the important work of implementing the Salton Sea
management plan, and create short and long term goals protect
the regional air quality and the natural resources at the Sea.
SB 1416 is designed to complement the on-going work of the Task
Force by creating the Revive the Salton Sea Fund, which would be
a tax check-off fund found on one's State Income Tax Form. The
money collected from the check-off would be used to help fund
the restoration and maintenance of the Salton Sea, and provide
public awareness."
Prepared by:Myriam Bouaziz / GOV. & F. / (916) 651-4119
5/11/16 15:44:22
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