BILL ANALYSIS �
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|SENATE RULES COMMITTEE | SB 1571|
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THIRD READING
Bill No: SB 1571
Author: DeSaulnier (D)
Amended: 5/25/12
Vote: 21
SENATE GOVERNANCE & FINANCE COMMITTEE : 5-1, 4/25/12
AYES: Wolk, DeSaulnier, Hancock, Hernandez, La Malfa
NOES: Dutton
NO VOTE RECORDED: Fuller, Kehoe, Liu
SENATE APPROPRIATIONS COMMITTEE : 2-3, 5/14/12 (FAIL)
AYES: Alquist, Price
NOES: Kehoe, Walters, Dutton
NO VOTE RECORDED: Lieu, Steinberg
SENATE APPROPRIATIONS COMMITTEE : 5-0, 5/21/12
AYES: Kehoe, Alquist, Lieu, Price, Steinberg
NO VOTE RECORDED: Walters, Dutton
SUBJECT : Personal income taxes: voluntary contribution
SOURCE : K to College
DIGEST : This bill creates the School Supplies for
Homeless Children Fund as a voluntary contribution fund
(VCF). The VCF will be added to the personal income tax
form when other VCFs are removed and remain on the form
until January 1st of the 5th taxable year following its
first appearance or sooner if the Franchise Tax Board (FTB)
estimates the fund will not meet the minimum contribution
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amount.
ANALYSIS : Existing state law allows taxpayers to
contribute money to one or more of 18 VCFs by checking a
box on their state income tax return. California law
requires contributions made through check-offs to be made
from taxpayers' own resources and not from their tax
liability, as is possible on federal tax returns.
Check-off amounts may be claimed as charitable
contributions on taxpayers' tax returns during the
subsequent year.
This bill establishes the School Supplies for Homeless
Children Fund when another VCF is removed from the income
tax return. The VCF will stay on the tax return for five
years, but will be repealed earlier if the check-off does
not maintain the minimum contribution amount of $250,000,
adjusted for inflation, for each year after the second year
that the check-off appears on the tax return.
Revenues generated by the check-off will be allocated, upon
appropriation by the Legislature, to FTB, the State
Controller, and Department of Education (CDE) for
distribution of grants to school districts by CDE.
This bill requires CDE to administer subject to the
following requirements: (1) make grants of up to $5,000
available to school districts statewide on a first-come,
first-serve basis, (2) less than two percent of the grant
award shall be spent for administrative purposes, and (3)
nonprofit organizations may partner with a participating
school districts to provide school supplies and health
services for homeless students.
Comments
According to the author, "California has the nation's
largest population of homeless children. As of 2010, there
were upwards of 300,000 homeless students attending
California elementary, middle and high schools. Among many
other problems, homeless students often lack basic school
supplies like backpacks, binders, and pencils or pens, as
well as dental supplies essential to good oral health.
Consequently, homeless children are at a critical
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disadvantage in school. These students consistently test
well below average in math and English, and only 1/4
graduate from high school. While not solving all of the
problems that come with homelessness, SB 1571 will help to
level the material playing field by giving compassionate
taxpayers the opportunity to cover the costs of basic
school supplies and health services for homeless children."
2011 check-offs . Following is a list of 2011 check-offs
and contribution amounts received in calendar year 2011
with 2010 tax returns:
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|ALS/Lou Gehrig's Disease Research | Initial Tax Return |
|Fund | 2011 |
|------------------------------------+--------------------|
|Alzheimer's Disease/Related | $462,357 |
|Disorders Fund | |
|------------------------------------+--------------------|
|Arts Council Fund | $164,298 |
|------------------------------------+--------------------|
|CA Breast Cancer Research Fund | $459,694 |
|------------------------------------+--------------------|
|CA Cancer Research Fund | $451,042 |
|------------------------------------+--------------------|
|CA Firefighters' Memorial Fund | $157,166 |
|------------------------------------+--------------------|
|CA Fund for Senior Citizens | $308,763 |
|------------------------------------+--------------------|
|CA Peace Officer Memorial | $137,782 |
|Foundation Fund | |
|------------------------------------+--------------------|
|CA Police Activities League | $69,431 |
|(CALPAL) Fund | |
|------------------------------------+--------------------|
|CA Sea Otter Fund | $359,699 |
|------------------------------------+--------------------|
|CA Seniors Special Fund | $53,813 |
|------------------------------------+--------------------|
|CA Veterans Homes Fund | $211,089 |
|------------------------------------+--------------------|
|Child Victims of Human Trafficking | Initial Tax Return |
|Fund | 2011 |
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|------------------------------------+--------------------|
|Emergency Food for Families Fund | $598,157 |
|------------------------------------+--------------------|
|Municipal Shelter Spay-Neuter Fund | Initial Tax Return |
| | 2011 |
|------------------------------------+--------------------|
|Rare & Endangered Species | $605,220 |
|Preservation Program | |
|------------------------------------+--------------------|
|Safely Surrendered Baby Fund | $184,866 |
|------------------------------------+--------------------|
|State Children's Trust for the |$409,043 |
|Prevention of Child Abuse | |
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Similar Legislation
AB 1589 (Huffman) creates the California State Parks
Stewardship Act of 2012 as a means of sustaining state
parks and includes a provision for the California State
Parks Protection Fund. The bill is currently in the
Assembly.
In the 2011 legislative session, eight VCF bills were
introduced. One of the eight, SB 3X1 (LaMalfa), would have
created the Help Our State Fund for taxpayers to contribute
to the General Fund. The bill died at the Assembly Desk.
Five bills became law: SB 164 (Simitian, Chapter 699)
extends the repeal dates of both the State Children's Trust
Fund for the Prevention of Child Abuse and the Rare and
Endangered Species Preservation Program for five years; SB
583 (Vargas, Chapter 711) reestablishes the ALS/Lou
Gehrig's Disease Research Fund; AB 564 (Smyth, Chapter 549)
reestablishes the Municipal Shelter Spay-Neuter Fund; AB
764 (Swanson, Chapter 465) creates the Child Victims of
Human Trafficking Fund; and AB 971 (Monning, Chapter 209)
reestablishes the California Sea Otter Fund.
Two bills remain from the 2011 legislative session: SB 803
(DeSaulnier) creates the California Youth Leadership
Project and the California Youth Leadership Fund. The bill
is currently in the Assembly. AB 233 (Hall) creates the
California YMCA Youth and Government Fund.
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FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
According to the Senate Appropriations Committee:
Annual estimated tax revenue loss of approximately
$15,000 to $20,000 (General Fund) for up to five years
beginning in 2013-14.
Estimated CDE staffing costs of approximately $100,000 in
2013-14 to establish the grant program. Ongoing CDE
administrative costs of approximately $50,000 annually
for up to four additional years. All costs to CDE are
covered by taxpayer contributions deposited into the
School Supplies for Homeless Children Fund.
SUPPORT : (Verified 5/25/12)
K to College (source)
California Teachers Association
AGB:do 5/25/12 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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