BILL ANALYSIS �
AB 233
Page 1
ASSEMBLY THIRD READING
AB 233 (Hall)
As Amended March 15, 2011
Majority vote
REVENUE & TAXATION 9-0 APPROPRIATIONS 17-0
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|Ayes:|Perea, Donnelly, Beall, |Ayes:|Fuentes, Harkey, |
| |Charles Calderon, | |Blumenfield, Bradford, |
| |Cedillo, Fuentes, Gordon, | |Charles Calderon, Campos, |
| |Harkey, Nestande | |Davis, Donnelly, Gatto, |
| | | |Hall, Hill, Lara, |
| | | |Mitchell, Nielsen, Norby, |
| | | |Solorio, Wagner |
| | | | |
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SUMMARY : Authorizes the addition of the California YMCA Youth
and Government 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 all costs incurred in
administering the checkoff; and,
b) To the State Department of Education for distribution to
the California YMCA Youth and Government Program, for its
ongoing activities on behalf of youth.
3)Provides for the 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 estimates that the annual contribution amount
will be less than $250,000, or an adjusted amount for
subsequent years.
EXISTING LAW :
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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
Special Fund, the California Firefighters' Memorial Fund, and
the California Peace Officer Memorial Foundation Fund.
FISCAL EFFECT : The Franchise Tax Board staff estimates that
this bill will cost the state about $15,000 per year if the
check-off is added in the 2012-13 fiscal year, and there is
$250,000 in net new donations which are subsequently claimed as
charitable deductions by taxpayers.
COMMENTS :
The author has provided the following statement in support of
this bill:
The California YMCA Youth & Government Program (YMCA
Y&GP) is a statewide youth educational program
annually involving more than 2200 high school
students in a yearlong "hands on" civic experience.
Since its inception 63 years ago, the program has
successfully used a variety of activities to
encourage high school youth �to] become involved,
responsible and respected citizens.
As part of the YMCA Y&GP, regional student
delegations discuss public policy issues facing the
state as well as ways to implement their solutions
through the legislative and judicial processes.
Teen delegates draft legislation, prepare issue
briefs, select governmental positions to role-play,
attend statewide training and election conferences
and run for various offices and leadership
positions. The program concludes with a Model
Legislature each February at the State Capitol.
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Unfortunately, in recent years, costs to operate
this program and participant demand for financial
assistance has greatly increased making it difficult
to maintain and expand this important program for
California youth.
AB 233 would allow state taxpayers to voluntarily
contribute to the California YMCA Youth & Government Fund
through a tax check-off donation on their state tax return.
Donations would be used to help finance the YMCA Youth &
Government Program and its ongoing activities on behalf of
youth.
Assembly Revenue and Taxation 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)So many causes, so little space: There are countless worthy
causes that would benefit from the inclusion of a new VCF on
the state's income tax returns. At the same time, space on
the returns is limited. Thus, it could be argued that the
current system for adding VCFs to the form is subjective and
essentially rewards organizations that can convince the
Legislature to include their fund on the form.
3)A tale of two checkoff bills: This bill is similar to AB 2017
(Hall), of 2009, which would have added an identically-named
fund to the PIT form to support the ongoing activities of the
California YMCA Youth and Government Program. The California
Coalition for Youth opposed the introduced version of AB 2017,
and instead supported SB 516 (DeSaulnier), of 2009, which had
been introduced the year prior. As heard in the Revenue and
Taxation Committee, SB 516 (DeSaulnier) would have established
a California Youth Legislature, funded by a new VCF, to
examine and discuss issues affecting California's youth and
formally advise the Legislature and Governor on specific
policy matters. After extensive negotiations, the authors of
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AB 2017 (Hall) and SB 516 (DeSaulnier) reached a compromise,
whereby SB 516 was amended to delete the separate checkoff
fund, and AB 2017 was amended to divide the bulk of fund
moneys evenly between the existing YMCA program and the newly
established California Youth Legislature. Both bills then
passed the Legislature, and both were then vetoed by the
Governor. In his veto message for AB 2017, the Governor
noted:
"This bill is contingent on the enactment of Senate Bill 516,
which I cannot support. I would ask that the authors of these
bills reconcile their efforts to support greater youth
involvement in public policy without creating additional
organizations when there are numerous organizations and
entities already dedicated to working with youth from all
backgrounds."
Analysis Prepared by : M. David Ruff / REV. & TAX. / (916)
319-2098
FN: 0000946