BILL ANALYSIS
AB 658
Page 1
Date of Hearing: January 21, 2010
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Kevin De Leon, Chair
AB 658 (Hayashi) - As Amended: January 13, 2010
Policy Committee: Revenue and
Taxation Vote: 8-0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill creates the California Police Activities League Fund
(CALPAL) checkoff to the personal income tax form upon the
removal of another voluntary contribution fund. Specifically,
the bill:
1) Requires the State Controller to allocate the funds to the
state CALPAL (the statewide chapter of the nonprofit
organization).
2) Requires the Franchise Tax Board to compile a report of
the CALPAL contributions received, by ZIP code, and
distribute this report to the state CALPAL and the chairs of
the Senate and Assembly Revenue and Taxation Committees.
3) Directs the state CALPAL - upon receipt of the FTB
information - to then allocate the funds to local chapters
in proportion to the voluntary contributions made in the
counties in which the local chapters reside.
4) Sunsets in five years after becoming operative, or
whenever FTB estimates the annual contribution amount will
be less than $250,000, as adjusted for inflation.
FISCAL EFFECT
1)The contributions may be taken as an itemized deduction on
income tax returns. The Franchise Tax Board estimates that the
annual revenue losses from these deductions would be about
$15,000.
AB 658
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2)State administrative costs will be deducted from the
contribution proceeds.
COMMENTS
1)Rationale . The bill is intended to provide an additional
funding source for CALPAL. The author states that the program
plays a vital role in building relationships between law
enforcement personnel and community residents, particularly
at-risk youth.
2)Background . Taxpayers can make voluntary contributions to any
of 15 funds listed on the state personal income tax return.
The contributions are in addition to any tax liabilities
otherwise owed. Thus, they do not directly reduce state taxes
otherwise available to support state-funded programs in the
year in which they are made. However, the amounts are allowed
as an itemized deduction for charitable contributions on the
subsequent year's income tax return. These voluntary
contributions support various purposes, including cancer
research, endangered species preservation, and emergency food
assistance. Contributions to the VCFs have historically ranged
from $250,000 to $800,000 per year. All but one VCF (the
California Seniors Special Fund) have sunset dates, and most
must meet a minimum annual contribution to remain on the
return.
3)Background - CALPAL . The Police Athletic League is a
non-profit organization, founded about 35 years ago by police
officers, that provides education and recreational programs
for youth ages 5-18. CALPAL has 130 local chapters and
currently serves about 300,000 youth. These chapters rely
exclusively on contributions for funding.
4)Related Legislation . AB 1088 (Fletcher), also in this
committee, would create the California Veterans Fund to
provide an additional funding source for veterans' homes
services.
Analysis Prepared by : Brad Williams / APPR. / (916) 319-2081