BILL ANALYSIS �
AB 764
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Date of Hearing: May 4, 2011
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
AB 764 (Swanson) - As Amended: April 12, 2011
Policy Committee: Revenue and
Taxation Vote: 9-0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill authorizes the addition of the Victim-Witness
Assistance Fund check-off to the personal income tax form upon
the removal of another voluntary contribution fund (VCF) from
the form. Specifically, this bill requires:
1)All moneys transferred to the fund, upon appropriation by the
Legislature, to be allocated as follows:
a) To the Franchise Tax Board (FTB) and the State
Controller for reimbursement of all costs incurred in
administering the check-off.
b) To community-based organizations that serve minor
victims of human trafficking.
1)The repeal of the check-off on either January 1 of the fifth
year following the VCF's first appearance on the return or on
January 1 of an earlier year, if FTB estimates that the annual
contribution amount will not meet the amount necessary to stay
on the form. The required amount will be $250,000, or an
amount adjusted for inflation in subsequent taxable years.
FISCAL EFFECT
FTB staff estimates this bill will cost the state about $20,000
per year. The FTB estimate assumes the check-off is added in
the 2012-13 fiscal year, the donations meet the average amount
for the other tax check-offs, and these donations are
subsequently claimed as charitable deductions by taxpayers.
Revenue losses would be similar in subsequent years, assuming
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there is no significant change in the amount of donations.
COMMENTS
1)Purpose. The author states nearly 300,000 American children
and youth are estimated to be at risk of child sexual
exploitation each year and points out there are many
organizations throughout the state that help to provide
support services to young men and women who have been
victimized by sexual exploitation. The author argues this
bill will facilitate these important treatment services by
providing a funding mechanism to support organizations that
serve sexually exploited minors.
2)Voluntary Contribution Funds (VCFs) . California taxpayers can
make voluntary contributions to any of 15 funds listed on the
state personal income tax return. The contributions are in
addition to tax liabilities so they do not directly reduce the
amount of state taxes. As charitable contributions, the
taxpayer may deduct the amount of the check-off on the
subsequent year's income tax return. These voluntary
contributions support various purposes, including cancer
research, endangered species preservation and emergency food
assistance. Contributions have historically ranged from
$250,000 to $800,000 per year. Except for the California
Seniors Special Fund, all have sunset dates, and most must
meet a minimum annual contribution to remain on the return.
3)FTB Comments . FTB notes this bill would allow the Legislature
to allocate funds directly to nongovernmental entities. FTB
contrasts this approach with the typical method for allocating
the voluntary contribution funds. They note that others are
allocated to a state agency for purposes of overseeing the
expenditure of the funds. The author may wish to add language
that would allocate the funds to a state agency, perhaps the
California Emergency Management Agency, which would be
responsible for administering the funds granted to the
community-based organizations.
4)Amendments. The author intends that the funds collected be
used for minors who are victims of sexual exploitation and
human trafficking. To clarify the author's intent the
following amendments should be considered:
a) Change the name of the check-off to "Victim Assistance
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Fund."
b) The bill states that money shall be given to
organizations in accordance with the selection process of
Section 13837 of the penal code. To fulfill the author's
intent, the bill should be amended to state that awards
shall be given to sexual assault services programs that
both meet the standards of Section 13837 of the penal code
and agree to use the funds to provide services to minors
who are victims of human trafficking.
c) Eliminate the requirement that FTB notify the Department
of Social Services.
5)Related legislation: The following related bills address
personal income tax check-offs and have been introduced in the
current legislative session:
a) AB 233 (Hall) would authorize the addition of the
California YMCA Youth and Government Fund check-off to the
personal income tax form.
b) AB 564 (Smyth) would authorize the addition of the
Municipal Shelter Spay-Neuter Fund to the form.
c) AB 971 (Monning) would extend the current repeal date
for the current California Sea Otter Fund.
d) SB 164 (Simitian) would extend the repeal dates of the
State Children's Trust Fund for the Prevention of Child
Abuse and the Rare and Endangered Species Preservation
Program to January 1, 2018.
Analysis Prepared by : Roger Dunstan / APPR. / (916) 319-2081