BILL ANALYSIS
AB 658
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CONCURRENCE IN SENATE AMENDMENTS
AB 658 (Hayashi and Lieu)
As Amended March 4, 2010
Majority vote
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|ASSEMBLY: |65-1 |(January 25, |SENATE: |30-2 |(August 12, |
| | |2010) | | |2010) |
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Original Committee Reference: REV. & TAX.
SUMMARY : Authorizes the addition of the California Police
Activities League (CALPAL) Fund checkoff to the personal income
tax (PIT) form upon the removal of another voluntary
contribution fund (VCF) from the form.
The Senate amendments :
1)Provide that any contribution made by a taxpayer who is
located within a ZIP Code that does not have a CALPAL chapter
shall be allocated to the state CALPAL to help establish
CALPAL chapters in that ZIP Code, or to fund CALPAL activities
and programs.
2)Provide that any contribution made from a ZIP Code that fails
to meet the minimum threshold for federal reporting
requirements shall be allocated to the state CALPAL to help
establish CALPAL chapters in that ZIP Code, or to fund CALPAL
activities and programs.
3)Provide that the state CALPAL may use up to 15% of the total
funds specified above to cover administrative costs necessary
to implement this bill.
4)Add a joint author and a co-author.
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.
AB 658
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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.
AS PASSED BY THE ASSEMBLY , this bill:
1)Established the CALPAL Fund in the State Treasury.
2)Provided that all moneys transferred to the CALPAL 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 Controller for allocation to the CALPAL to
fund its programs and services.
3)Required FTB to produce an annual report of CALPAL Fund moneys
received, by ZIP Code. The state CALPAL shall use this report
to allocate contributions received directly to county CALPAL
chapters based on the ZIP Code of where the taxpayer
contributions were made.
4)Provided for the CALPAL Fund provisions' automatic repeal on
either January 1 of the fifth taxable year following the
CALPAL Fund's first appearance on the tax return, or on
January 1 of an earlier year, if FTB estimates that the annual
contribution amount will be less than $250,000, or an adjusted
amount for subsequent years.
FISCAL EFFECT : FTB estimates revenue losses, resulting from
contribution deductions, to be roughly $15,000 per year.
COMMENTS : 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
AB 658
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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."
Committee staff comments: 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.
Analysis Prepared by : M. David Ruff / REV. & TAX / (916)
319-2098
FN:
0005219