BILL ANALYSIS
AB 2017
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 2017 (Hall)
As Amended August 3, 2010
Majority vote
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|ASSEMBLY: |71-0 |(June 2, 2010) |SENATE: |30-2 |(August 23, |
| | | | | |2010) |
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Original Committee Reference: HUM. S.
SUMMARY : Authorizes the addition of the California Youth
Leadership 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)Change the name of the checkoff fund from the California YMCA
Youth and Government Fund to the California Youth Leadership
Fund (Fund).
2)Modify the allocation of Fund proceeds as follows:
a) If the Fund collects less than $250,000, all remaining
moneys shall be equally distributed between the California
YMCA Youth and Government Program (Program), for its
ongoing activities on behalf of youth, and the Joint
Committee on Rules to support the California Youth
Legislature, established by SB 516 (DeSaulnier) of the
current legislative session.
b) If the Fund collects donations in excess of $250,000,
but less than $300,000, the balance of the Fund shall be
distributed as follows:
i) To provide an annual grant of $10,000 to each of the
following nonprofit civic youth organizations to operate
civic education and mock legislative programs: The
African American Youth Leadership Program, the Asian
Pacific Youth Leadership Project, and the Chicano Latino
Youth Leadership Project; and,
ii) All remaining funds shall be equally distributed
AB 2017
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between the Program, for its ongoing activities on behalf
of youth, and the Joint Committee on Rules to support the
California Youth Legislature.
c) If the Fund collects donations in excess of $300,000,
the balance of the funds shall be distributed as follows:
i) To provide an annual grant of $20,000 to each of the
nonprofit civic youth organizations noted above to
operate civic education and mock legislative programs;
and,
ii) All remaining funds shall be equally distributed
between the Program, for its ongoing activities on behalf
of youth, and the Joint Committee on Rules to support the
California Youth Legislature.
3)Delete the Welfare and Institutions Code provisions, which
had, among other things, specified eligibility criteria for
participating in the Program and allowed each Member of the
Legislature to appoint one youth member from his/her district
to participate.
4)Provide that this bill shall become operative only if SB 516
(DeSaulnier) of the current legislative session is chaptered.
5)Make other conforming changes.
AS PASSED BY THE ASSEMBLY, this bill:
1)Established the California YMCA Youth and Government Fund in
the State Treasury.
2)Provided that all moneys transferred to the California YMCA
Youth and Government 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 Program, for its ongoing activities on behalf of
youth.
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3)Provided for the California YMCA Youth and Government Fund
provisions' automatic repeal on either January 1 of the fifth
taxable year following the fund's first appearance on the PIT
return or on January 1 of an earlier year, if FTB estimated
that the annual contribution amount would be less than
$250,000, or an adjusted amount for subsequent years.
4)Provided that, to be eligible to participate in the Program,
youths must be 14 to 18 years of age and currently enrolled in
a California high school or participating in a nonpublic,
home-based educational program or a general equivalency degree
program.
5)Provided that each member of the Legislature could appoint one
youth member from his/her district to participate in the
Program.
6)Provided that state funds, beyond those allocated from the
California YMCA Youth and Government Fund, would not be used
to support the Program.
7)Provided that this bill does not preclude the Program from
entering into mutually agreed-upon interagency agreements for
any subsequent fiscal year.
8)Provided that the moneys for the Program shall be allocated
from the California YMCA Youth and Government Fund or private
funds directed to the Legislature for the purpose of funding
activities of the Program.
9)Provided that the Program may accept gifts and grants from any
source, public or private, to help perform its functions.
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 for 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
AB 2017
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Special Fund, the California Firefighters' Memorial Fund, and
the California Peace Officer Memorial Foundation Fund.
FISCAL EFFECT : FTB staff estimates annual revenue losses of
roughly $15,000 beginning in FY 2011-12.
COMMENTS : The author has provided the following statement in
support of this bill:
AB 2017 would allow state taxpayers to voluntarily contribute
to the California Youth Leadership Fund through a tax
check-off donation on their state tax return. Donations would
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 measure will allow California
taxpayers to empower young people through important programs
that motivate and inspire youth to become active citizens in
our state.
Committee Staff Comments
1)The California Senior Legislature: This bill is roughly
modeled after the successful California Senior Legislature,
which is supported by the California Fund for Senior Citizens
checkoff on the PIT return. The California Senior Legislature
notes that, since 1981, it has labored to identify, develop,
and support legislative proposals that protect and enhance the
quality of life of California's seniors.
2)An Agreement is Reached: As passed by the Assembly, this bill
established a California YMCA Youth and Government Fund, with
proceeds dedicated exclusively to the Program operated by
YMCA. SB 516 (DeSaulnier), in turn, would have created a
separate checkoff to support a newly established California
Youth Legislature, designed to foster civic engagement among
California's youth. The California State Alliance of YMCAs
had opposed SB 516, arguing that the California Youth
Legislature was duplicative of the long standing Program it
oversees. Pursuant to an agreement reached between the
authors, SB 516 has been amended to delete the separate
checkoff fund, and this bill now divides the bulk of Fund
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moneys evenly between the Program and the California Youth
Legislature.
Analysis Prepared by : M. David Ruff / REV. & TAX. / (916)
319-2098
FN: 0005666