BILL ANALYSIS
AB 658
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Date of Hearing: January 11, 2010
ASSEMBLY COMMITTEE ON REVENUE AND TAXATION
Charles M. Calderon, Chair
AB 658 (Hayashi) - As Amended: January 4, 2010
Majority vote. Fiscal committee.
SUBJECT : Personal income taxes: voluntary contributions:
California Police Activities League (CALPAL) Fund
SUMMARY : Authorizes the addition of the California Police
Activities League (CALPAL) Fund (Fund) checkoff to the personal
income tax (PIT) form upon the removal of another voluntary
contribution fund (VCF) from the form. Specifically, this bill :
1)Establishes the Fund in the State Treasury.
2)Provides that all moneys transferred to the Fund, upon
appropriation by the Legislature, shall be allocated as
follows:
a) To the Franchise Tax Board (FTB) and the State
Controller for reimbursement of costs incurred in
administering the checkoff; and,
b) To the State Treasurer for allocation to the CALPAL to
fund its programs and services.
3)Requires the State Treasurer to allocate moneys each year to
CALPAL chapters in California pursuant to a formula
established by FTB. FTB, in turn, is tasked with creating a
formula that allocates Fund moneys among CALPAL chapters in
amounts "that are proportional to the relative total amounts
of voluntary contributions made by taxpayers within each city,
county, or city and county where that CALPAL chapter is
located." Any contributions made by a taxpayer who is located
in a city or county without a CALPAL chapter shall be
allocated on a pro rata basis to all CALPAL chapters.
4)Provides for the Fund provisions' automatic repeal on either
January 1 of the fifth taxable year following the Fund's first
appearance on the tax return, or on January 1 of an earlier
year, if FTB estimates that the annual contribution amount
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will be less than $250,000, or an adjusted amount for
subsequent years.
EXISTING LAW :
1)Allows taxpayers to designate on their PIT returns a
contribution to any of 15 VCFs.
2)Provides a specific sunset date for each VCF, except the
California Seniors Special Fund.
3)Provides that each VCF must meet a minimum annual contribution
amount to remain in effect, except for the California Seniors
Special Fund, the California Firefighters' Memorial Fund, and
the California Peace Officer Memorial Foundation Fund.
FISCAL EFFECT : Assuming the Fund is added to the 2010 return,
FTB estimates revenue losses, resulting from contribution
deductions, to be roughly 15,000 per year.
COMMENTS :
1)The author states, "AB 658 allows individuals to designate
charitable contributions directly to CALPAL chapters by
checking off a box on their personal income tax returns.
Local CALPAL chapters are community-based organizations
started and operated through the voluntary efforts of
concerned law enforcement officers. CALPAL chapters receive
no state funding and rely exclusively on donors for financial
sustainability. AB 658 would establish another funding source
for CALPAL to financially help sustain its operations." The
author goes on to state, "More than 100,000 California
children . . . benefit each year from the 'Cops & Kids'
connection program that connects local law enforcement
officers, paid staff, and volunteers with youth. CALPAL
personnel and volunteers serve as role models, coaches,
tutors, mentors, chaperones and program managers. CALPAL's
mission is to build relationships between law enforcement
personnel and community residents, with attention spent on
youth considered to be at-risk in becoming involved in gangs
and crime. CALPAL is the state's largest juvenile crime
prevention program, with 125 local CALPAL chapters."
2)Committee Staff Comments
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a) CALPAL : The California Police Activities League or
CALPAL is a 501(c)(3) nonprofit organization founded over
35 years ago by a group of police officers. Based in San
Leandro, CALPAL works to strengthen the connections between
law enforcement officers and the communities they serve, by
providing youth programs that develop discipline, positive
self-image, mutual trust, and respect.
b) Proposed Amendments : Currently, this bill requires the
State Treasurer to allocate moneys each year to CALPAL
chapters in California pursuant to a formula established by
FTB. FTB, in turn, is tasked with creating a formula that
allocates Fund moneys among CALPAL chapters in amounts
"that are proportional to the relative total amounts of
voluntary contributions made by taxpayers within each city,
county, or city and county where that CALPAL chapter is
located." To address administrative concerns raised by FTB
staff, the author has agreed to take amendments to shift
responsibility for distributing Fund moneys to CALPAL
itself. Under these proposed amendments, which the author
intends to take in Committee, FTB would produce an annual
report of Fund moneys received by zip code. CALPAL, in
turn, would use this report to allocate Fund moneys to
county CALPAL chapters.
c) Related Legislation : There is at least one other bill
in the current legislative session that would add a new VCF
to the PIT return. Specifically, AB 1088 (Fletcher) would
create the California Veterans Fund to provide an
additional funding source for veterans' homes. AB 1088
(Fletcher) is set for hearing concurrently with this bill.
REGISTERED SUPPORT / OPPOSITION :
Support
None on file
Opposition
None on file
Analysis Prepared by : M. David Ruff / REV. & TAX / (916)
319-2098
AB 658
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