BILL ANALYSIS �
SB 803
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Date of Hearing: August 8, 2012
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
SB 803 (DeSaulnier) - As Amended: August 7, 2012
Policy Committee: Revenue and
Taxation Vote: 7-0
Education 7-2
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill establishes the California Youth Leadership Project
(Project) under the State Department of Education (CDE) to
promote youth civic engagement by awarding scholarships to youth
between 14 and 18 years of age. Specifically, this bill:
1)Creates a Project Committee of no more than six individuals to
oversee the California Youth Leadership Project. The Project
Committee shall be chaired by the Superintendent of Public
Instruction (SPI) and direct the SPI to appoint four members,
as specified.
2)Directs the Project to allocate scholarship award funds to
organizations that submit applications on behalf of youth who
are selected to receive scholarship awards under this bill.
Requires the Project to develop a formal grant process that
includes application forms, deadlines, and audit procedures,
subject to the specified requirements.
3)Authorizes the addition of the California Youth Leadership
Fund (Fund) check-off to the personal income tax (PIT) form
upon the removal of another voluntary contribution fund (VCF)
from the form.
4)Provides that all money transferred to the Project, upon
appropriation by the Legislature, shall be used for the
following purposes:
a) To the Franchise Tax Board (FTB), the State Controller,
and CDE for reimbursement of all costs incurred in
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administering the check-off.
b) To CDE to provide for the California Youth Leadership
Project.
5)Provides for the automatic repeal of the check-off on January
1 of the fifth taxable year following the fund's first
appearance on the PIT return or on an earlier date if the
check-off fails to meet a minimum contribution amount
initially set at $250,000 and adjusted for inflation annually
thereafter.
FISCAL EFFECT
1)Based on past tax check-offs, annual revenues are expected to
be in the $300,000-$800,000 range, although some check-offs
have received less revenues.
2)FTB estimates this bill will cost the state about $20,000 per
year in lost revenues as taxpayers deduct these charitable
donations. This estimate assumes the check-off is added in
the 2012-13 fiscal year, donations meet the average amount for
the other tax check-offs and taxpayers deduct these charitable
donations at the historical rate. Revenue losses would be
similar in subsequent years.
3)The Department of Education estimates that it will cost
approximately $100,000 to administer the program established
by this bill. The costs for FTB and the State Controller are
minor and absorbable.
COMMENTS
1)Purpose. The author states this bill establishes the
California Youth Leadership Project to support and promote
youth civic engagement by awarding scholarships to youth. The
author argues the scholarships will support opportunities
through which disconnected and disadvantaged youth can discuss
and develop their legislative priorities and advocate
throughout the legislative session for the passage of key
policy changes to improve the quality of life for California's
youth. According to the author SB 803 emphasizes reaching out
to at-risk or disadvantaged youth, as their participation will
provide keen insight into many of the issues that youth face
in their day-to-day lives.
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2)Support. This bill is supported by at least two organizations
and by the Superintendent, who notes the Project will be a
guiding framework to improve coordination and effectiveness of
youth programs, and will include youth in the policy and
decision making process. Nationally, youth commissions are
being developed and implemented in at least 20 states.
3)Voluntary Contribution Funds. California taxpayers can make
voluntary contributions to any of 15 funds listed on the state
PIT return. The contributions are in addition to tax
liabilities so they do not directly reduce the amount of state
taxes in that tax year. As charitable contributions, the
taxpayer may deduct the amount of the check-off on the
subsequent year's income tax return, reducing state tax
collections. These voluntary contributions support various
purposes, including cancer research, endangered species
preservation and emergency food assistance. Contributions
have historically ranged from $300,000 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.
4)Competing legislation. AB 233 (Hall), pending in Senate
Governance and Finance Committee, establishes the California
YMCA Youth and Government Fund on the PIT form and allocates
funds to CDE for distribution to the California YMCA Youth and
Government Board of Directors and, if the donations exceed
$300,000, other specified youth organizations.
AB 233 is similar to AB 2017 (Hall, 2010), both support the
ongoing activities of the California YMCA Youth and Government
Program. The sponsors of this bill, the California State
Alliance of YMCAs, opposed a competing bill, SB 516
(DeSaulnier, 2010), which would have established a California
Youth Legislature, funded by a new VCF, to examine and discuss
issues affecting California's youth and advise the Legislature
and Governor on specific matters. The authors reached a
compromise, where SB 516 was amended to delete the separate
check-off and AB 2017 was amended to divide moneys evenly
between the YMCA program and the California Youth Legislature.
Both bills then passed the Legislature, and were vetoed by
Governor Schwarzenegger, who argued against statutory creation
of new organizations.
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5)Related legislation . SB 1571 (DeSaulnier) authorizes the
addition of the School Supplies for Homeless Children Fund
check-off to the personal income tax (PIT) form upon the
removal of another voluntary contribution fund (VCF) from the
form.
6)Previous legislation . The following bills PIT check-offs were
introduced and enacted in 2011.
a) AB 564 (Smyth), Chapter 549, Statutes of 2011,
reauthorized the addition of the Municipal Shelter
Spay-Neuter Fund check-off to the PIT return upon the
removal of another VCF from the form.
b) AB 764 (Swanson), Chapter 465, Statutes of 2011,
authorized the addition of the Child Victims of Human
Trafficking Fund check-off to the PIT return upon the
removal of another VCF from the form.
c) AB 971 (Monning), Chapter 209, Statutes of 2011,
reauthorized the addition of the California Sea Otter Fund
check-off to the PIT form beginning with the 2011 return.
d) SB 164 (Simitian), Chapter 699, Statutes of 2011,
extended, from January 1, 2013, to January 1, 2018, the
sunset date for two VCFs currently on the PIT return the
State Children's Trust Fund and the Rare and Endangered
Species Preservation Program.
e) SB 583 (Vargas), Chapter 711, Statutes of 2011,
reauthorized the addition of the ALS/Lou Gehrig's Disease
Research Fund check-off to the PIT return upon the removal
of another VCF from the form.
Analysis Prepared by : Roger Dunstan / APPR. / (916) 319-2081