BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 190
                                                                  Page  1


          ASSEMBLY THIRD READING
          AB 190 (Negrete McLeod)
          As Amended March 3, 2005
          Majority vote 

           REVENUE & TAXATION  7-0         APPROPRIATIONS      17-1        
           
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          |Ayes:|Klehs, Walters,           |Ayes:|Chu, Bass, Berg,          |
          |     |Canciamilla, Chu, DeVore, |     |Calderon, Emmerson,       |
          |     |Jones, Lieber             |     |Levine, Karnette, Klehs,  |
          |     |                          |     |Leno, Nation, Montanez,   |
          |     |                          |     |Mullin, Nakanishi, Sharon |
          |     |                          |     |Runner, Saldana, Walters, |
          |     |                          |     |Yee                       |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |Nays:|Haynes                    |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Authorizes the addition of the California Sexual  
          Violence Victim Services Fund income tax checkoff to the  
          personal income tax form upon the removal of another income tax  
          checkoff from the form.  Specifically,  this bill  :  

          1)Allows the California Sexual Violence Victim Services Fund  
            checkoff to remain on the tax form for up to five years,  
            provided it receives a minimum amount of contributions  
            beginning in its second year on the form.  The minimum  
            contribution amount equals $250,000 in the second year in  
            which the checkoff appears on the form.  This $250,000 minimum  
            required contribution is indexed for inflation in subsequent  
            years.  

          2)Reimburses the State Controller and Franchise Tax Board (FTB)  
            for their costs to administer the checkoff and directs  
            remaining checkoff contributions to the Epidemiology and  
            Prevention for Injury Control Branch of the State Department  
            of Health Services for allocation to the California Coalition  
            Against Sexual Assault (CALCASA).  Specifies that CALCASA is  
            to use the checkoff money to issue grants to support CALCASA  
            rape crisis center programs for victims of rape and sexual  
            assault.  









                                                                  AB 190
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           EXISTING LAW  allows taxpayers to contribute money to one or more  
          of 13 voluntary contribution funds by checking a box on their  
          state income tax return.  Requires contributions made through  
          checkoffs to be made from taxpayers' own resources (not from  
          their tax liability, as is possible on federal tax returns).   
          Checkoff amounts may be claimed as charitable contributions on  
          taxpayers' tax returns during the subsequent year.  

           FISCAL EFFECT  :  FTB estimates this bill will result in annual  
          revenue losses in the range of $15,000 in the second fiscal year  
          (FY) following the checkoff's appearance on the form.  For  
          example, if the checkoff first appears on the 2005 tax return  
          due in April 2006, this bill would result in General Fund losses  
          in the range of $15,000 beginning in FY 2006-07.  

           COMMENTS  :  This bill is sponsored by the CALCASA and is intended  
          to augment the amount of money available for both CALCASA and  
          its 84 member rape crisis centers.  Together, CALCASA and  
          California's 84 independent rape crisis centers perform crisis  
          intervention, counseling, advocacy, and support for rape  
          victims, and offer community education and prevention programs  
          believed essential for the elimination of sexual assault.   
          Funding for CALCASA and California's rape crisis centers has  
          historically come from a combination of state and federal grants  
          administered by the Office of Criminal Justice Planning (OCJP)  
          and from private support.  In FY 2002-03, the most recent year  
          for which funding data are available, CALCASA and California's  
          rape crisis centers received approximately $18.5 million in  
          state and federal grant funding and in private donations.  

          Recently, as a result of the elimination of OCJP in 2003 and the  
          transfer of its grant administration responsibilities to several  
          other state agencies, CALCASA and California's rape crisis  
          centers have experienced significant delays in contract approval  
          and funding reimbursements.  These funding delays have caused a  
          significant hardship among California's rape crisis centers and  
          resulted in significant gaps in service provision.  This bill  
          would provide an alternate source of funding and, in doing so,  
          would help CALCASA and California's rape crisis centers weather  
          future funding uncertainties more easily.  

          Annually since 2000, this committee has adopted an income tax  
          checkoff policy to address concerns that California's personal  
          income tax form would grow to three pages simply to accommodate  








                                                                  AB 190
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          a proliferation of income tax checkoffs.  Components of the  
          checkoff policy include requirements that all checkoff bills  
          include sunset dates, $250,000 minimum contribution requirements  
          that are indexed for inflation, language intended to ensure that  
          any new checkoff is not added to the tax form until an existing  
          checkoff is removed (so-called queuing language), and a  
          requirement that proponents of each new checkoff provide  
          evidence justifying why they believe their checkoff will meet  
          the minimum contribution requirements.  The policy also  
          explicitly states that existing checkoffs which fail to receive  
          their minimum level of contributions will not have their sunset  
          dates extended. 

          This bill is consistent with this committee's income tax  
          checkoff policy.  Assemblymember Negrete-McLeod believes that  
          this checkoff will receive at least $250,000 in funding, because  
          of widespread statewide support for victims of rape and sexual  
          assault, and because California's rape crisis centers have an  
          existing fundraising infrastructure in place that can spread the  
          word about the existence of the checkoff program.  

           Analysis Prepared by  :    Sabrina Landreth / REV. & TAX. / (916)  
          319-2098 


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