BILL ANALYSIS
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|SENATE RULES COMMITTEE | AB 2017|
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THIRD READING
Bill No: AB 2017
Author: Hall (D), et al
Amended: 8/3/10 in Senate
Vote: 21
SENATE REVENUE & TAXATION COMMITTEE : 4-1, 7/1/10
AYES: Wolk, Walters, Alquist, Padilla
NOES: Ashburn
ASSEMBLY FLOOR : 71-0, 6/2/10 - See last page for vote
SUBJECT : Income Tax check-off: California Youth
Leadership Fund
SOURCE : Author
DIGEST : This bill allows taxpayers to make voluntary
contributions to the California Youth Leadership Fund on
their state personal Income Tax returns.
ANALYSIS : Existing law allows taxpayers to contribute
money to one or more of 15 voluntary contribution funds by
checking a box on their state income tax return. California
law requires contributions made through check-offs to be
made from taxpayers' own resources (not from their tax
liability, as is possible on federal tax returns).
Check-off amounts may be claimed as charitable
contributions on taxpayers' tax returns during the
subsequent year, also allows the Franchise Tax Board (FTB)
to design tax returns to provide for the designation of
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contributions to specified funds either on the return
itself or on a separate schedule that must be attached to
the return.
This bill:
1. Creates the California Youth Leadership Fund checkoff to
the personal income tax form upon the removal of another
voluntary contribution fund (VCF).
2. Establishes the California Youth Leadership Fund (Fund)
in the State Treasury and provides that all moneys
transferred to the Fund, upon appropriation by the
Legislature, shall be allocated as follows:
A. To the FTB and the State Controller for
reimbursement of costs incurred in administering
the check-off.
B. If the California Youth Leadership Fund collects
donations of less than two hundred and fifty
thousand dollars ($250,000), all remaining funds
shall be equally distributed between the California
YMCA Youth and Government Program, for its ongoing
activities on behalf of youth, and the Joint
Committee on Rules to support the California Youth
Legislature, pursuant to Chapter 4 (commencing with
Section 2200) of Division 2.5 of the Welfare and
Institutions Code.
C. If the California Youth Leadership Fund collects
donations in excess of two hundred fifty thousand
dollars ($250,000), but less than three hundred
thousand dollars ($300,000), the balance of the
fund shall be distributed as follows:
(1)
To provide an annual grant of ten
thousand dollars ($10,000) to each of the
following nonprofit civic youth organizations
in order to operate civic education and mock
legislative programs:
(a)
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African American Youth Leadership
Program.
(b)
Asian Pacific Youth Leadership
Project.
(c)
Chicano Latino Youth Leadership
Project.
C All remaining funds shall be equally distributed
between the California YMCA Youth and Government
Program, for its ongoing activities on behalf of
youth, and the Joint Committee on Rules to support
the California Youth Legislature, pursuant to
Chapter 4 (commencing with Section 2200) of
Division 2.5 of the Welfare and Institutions Code.
D If the California Youth Leadership Fund collects
donations in excess of three hundred thousand
dollars ($300,000), the balance of the fund shall
be distributed as follows:
(1) To provide an annual grant of twenty
thousand dollars ($20,000) to each of the
following nonprofit civic youth organizations in
order to operate civic education and mock
legislative programs:
(a) African American Youth Leadership
Program.
(b) Asian Pacific Youth Leadership
Project.
(c) Chicano Latino Youth Leadership
Project.
E. All remaining funds shall be equally distributed
between the California YMCA Youth and Government
Program, for its ongoing activities on behalf of
youth, and the Joint Committee on Rules to support
the California Youth Legislature, pursuant to
Chapter 4 (commencing with Section 2200) of
Division 2.5 of the Welfare and Institutions Code.
3. Provides that this bill shall become operative only if
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SB 516 of the 2009-10 regular session is chaptered and
becomes operative.
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.
Comments
This bill is similar to SB 516 (DeSaulnier) which was
introduced in 2009 and passed the Assembly Revenue and
Taxation Committee on June 28, 2010, once a funding
compromise was reached with this bill. SB 516 establishes
a California Youth Legislature funded by a new VCF and is
supported by numerous organizations including the
California Coalition for Youth (CCY). SB 516 requires the
California Youth Legislature to examine and discuss issues
affecting California's youth and to formally advise the
Legislature and the Governor on specific policy matters.
Previously, the California State Alliance of YMCAs opposed
SB 516, arguing that the California Youth Legislature is
duplicative of the long standing program the YMCA oversees.
The June 25th amendments to this bill attempts to offer a
funding compromise to the CCY by allowing each non-profit
civic youth organization a $15,000 grant, and splitting the
balance of the Fund between the YMCA Youth and Government
Program and the California Youth Legislature.
Related/Prior Legislation
AB 658 (Hayashi) would create a VCF designation on the
personal income tax return in order for taxpayers to
contribute to the California Police Activities Fund
(CALPAL). This bill passed the Senate Revenue and Taxation
Committee June 9th and is awaiting action in the Senate
Appropriations Committee.
AB 1008 (Block) would create a VCF designation on the
personal income tax form for taxpayers to contribute to the
National Guard Education Assistance Fund. This bill is
waiting to be heard in this committee.
AB 1088 (Fletcher) would create a VCF designation on the
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personal income tax return in order for taxpayers to
contribute to the Morale, Welfare, and Recreation Fund for
each of the veterans' homes, as provided. This bill passed
this committee June 23rd and is awaiting action in the
Senate Appropriations Committee.
AB 1983 (Torrico) would create a VCF designation on the
personal income tax return for taxpayers to contribute to
the Safely Surrender Babies Fund. This bill passed this
committee June 23rd and is awaiting action in the Senate
Appropriations Committee.
SB 1076 (Price) would create a VCF designation on the
personal income tax return for taxpayers to contribute to
the Arts Council Fund. This bill passed this committee
April 14th and is awaiting action in the Assembly Revenue
and Taxation Committee.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
According to the FTB, this tax check-off will result in an
annual revenue loss of approximately $156,000 per year
beginning in fiscal year 2011-12.
SUPPORT : (Verified 8/4/10)
Anaheim Family YMCA
Asian Pacific Islander Legislative Caucus
Berkeley-Albany YMCA,
California Collaboration for Youth
California Legislative Black
California State Alliance of YMCAs
California YMCA Youth and Government
Caucus Chicano-Latino Youth Leadership Project, Inc.
Channel Islands YMCA
Omega Psi Phi Fraternity, Inc.
Safe Cities Foundation
Shasta Family YMCA
Simi Valley Family YMCA
Southeast Ventura County YMCA
YMCA of Greater Long Beach
YMCA of Greater Whittier
YMCA of San Francisco
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YMCA of Superior California
YMCA San Luis Obispo
ARGUMENTS IN SUPPORT : The author's office states, this
bill allows state taxpayers to voluntarily contribute to
the California Youth Leadership Fund through a tax
check-off donation on their state tax return. Donations
will be used to help finance the YMCA Youth & Government
Program, the California Youth Legislature, the African
American Youth Leadership Program, the Asian Pacific Youth
Leadership Project and the Chicano Latino Youth Leadership
Project. Consistent with current efforts to support the
California Senior Legislature, this bill allows California
taxpayers to empower young people through important
programs that motivate and inspire youth to become active
citizens in our state.
ASSEMBLY FLOOR :
AYES: Adams, Anderson, Arambula, Bass, Beall, Bill
Berryhill, Blakeslee, Block, Blumenfield, Bradford,
Brownley, Caballero, Charles Calderon, Carter, Conway,
Cook, Coto, Davis, De La Torre, De Leon, DeVore,
Emmerson, Eng, Evans, Feuer, Fletcher, Fong, Fuentes,
Fuller, Furutani, Gaines, Galgiani, Garrick, Gilmore,
Hagman, Hall, Harkey, Hayashi, Hernandez, Hill, Huber,
Huffman, Jeffries, Jones, Knight, Logue, Bonnie
Lowenthal, Ma, Mendoza, Miller, Monning, Nava, Nestande,
Nielsen, V. Manuel Perez, Portantino, Ruskin, Salas,
Saldana, Silva, Skinner, Smyth, Solorio, Swanson,
Torlakson, Torres, Torrico, Tran, Villines, Yamada, John
A. Perez
NO VOTE RECORDED: Ammiano, Tom Berryhill, Buchanan,
Chesbro, Lieu, Niello, Norby, Audra Strickland, Vacancy
DLW:do 8/4/10 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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