BILL ANALYSIS �
AB 233
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CONCURRENCE IN SENATE AMENDMENTS
AB 233 (Hall)
As Amended August 6, 2012
Majority vote
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|ASSEMBLY: |78-1 |(May 31, 2011) |SENATE: |34-1 |(August 9, |
| | | | | |2012) |
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Original Committee Reference: REV. & TAX.
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 or as soon as space is available.
The Senate amendments :
1)Provide that the PIT form instructions shall inform taxpayers
that contributions to the Fund shall be used to support civic
education programs operated by the YMCA Youth and Government
Program, the African American Leaders for Tomorrow Program,
the Asian Pacific Youth Leadership Project, and the Chicano
Latino Youth Leadership Project.
2)Provide that all moneys transferred to the Fund, upon
appropriation by the Legislature, shall be allocated as
follows:
a) To the Franchise Tax Board (FTB), the State Controller,
and the State Department of Education for reimbursement of
all costs incurred in administering the checkoff.
b) To the State Department of Education for distribution as
follows:
i) If the Fund collects contributions of less than
$300,000, all funds shall be distributed to the
California YMCA Youth and Government Program; and,
ii) If the Fund collects donations in excess of
$300,000, the balance of the Fund shall be distributed to
provide an annual grant of $10,000 to each of the
following nonprofit civic youth organizations: the
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African American Leaders for Tomorrow Program, the Asian
Pacific Youth Leadership Project, and the Chicano Latino
Youth Leadership Project.
c) All remaining funds shall be distributed to the
California YMCA Youth and Government Program.
3)Specify that the California YMCA Youth and Government Board of
Directors may award additional nonprofit civic youth
organizations a grant of up to $10,000 each in order to
operate civic education and mock legislative programs.
4)Provide that funds shall be used to support program
participation by underserved students and for direct
program-related expenses.
EXISTING LAW :
1)Allows taxpayers to designate on their PIT returns a
contribution to any of 18 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.
AS PASSED BY THE ASSEMBLY , this bill:
1)Established the Fund in the State Treasury.
2)Provided 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
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.
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3)Provided 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.
FISCAL EFFECT : According to the Senate Appropriations
Committee, pursuant to Senate Rule 28.8, negligible state costs.
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.
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
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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 Assembly
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 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
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backgrounds."
Analysis Prepared by : M. David Ruff / REV. & TAX. / (916)
319-2098
FN: 0004590