BILL ANALYSIS �
SB 1571
Page 1
SENATE THIRD READING
SB 1571 (DeSaulnier)
As Amended August 24, 2012
Majority vote
SENATE VOTE :36-3
REVENUE & TAXATION 6-0 APPROPRIATIONS 12-5
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|Ayes:|Perea, Beall, Cedillo, |Ayes:|Fuentes, Blumenfield, |
| |Fuentes, Gordon, Nestande | |Bradford, Charles |
| | | |Calderon, Campos, Davis, |
| | | |Gatto, Hall, Hill, Lara, |
| | | |Mitchell, Solorio |
| | | | |
|-----+--------------------------+-----+--------------------------|
| | |Nays:|Harkey, Donnelly, |
| | | |Nielsen, Norby, Wagner |
| | | | |
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SUMMARY : Authorizes the addition of the School Supplies for
Homeless Children 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)Provides that all money 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 (CDE) for
reimbursement of all costs incurred in administering the
checkoff; and,
b) To the CDE, for the sole purpose of assisting pupils in
California under the federal McKinney-Vento Homeless
Assistance Act (42 U.S.C. Section 11301 et seq.) by
providing school supplies and health-related products to
homeless children, through a competitive grant program
developed and awarded by the Superintendent of Public
Instruction (Superintendent).
2)Requires the Superintendent to develop a competitive grant
SB 1571
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program that includes application forms and deadlines.
3)Specifies that the Fund provisions shall remain in effect only
until January 1 of the fifth taxable year following the Fund's
first appearance on the PIT return. However, if the FTB
determines that the amount of contributions estimated to be
received during a calendar year will not meet a minimum
contribution threshold, the provisions shall be inoperative
with respect to taxable years beginning on or after January 1
of that calendar year.
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.
FISCAL EFFECT : The FTB estimates annual revenue losses of
roughly $20,000 resulting from itemized deductions.
COMMENTS : The author has provided the following statement in
support of this bill:
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 disadvantage in school. These
students consistently test well below average in math and
English, and only one-fourth 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.
SB 1571
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Assembly Revenue and Taxation Committee staff comments:
What would this bill do? : This bill would authorize the
addition of a new VCF to the PIT return. The CDE would use Fund
moneys to assist California students under the federal
McKinney-Vento Homeless Assistance Act. Specifically, Fund
moneys would be used to provide school supplies and
"health-related products" to homeless children.
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
return is limited. Thus, it could be argued that the current
system for adding VCFs to the form is subjective and essentially
rewards causes that can convince the Legislature to include
their fund on the form.
Related legislation : Assembly Revenue and Taxation Committee
staff notes the following related bills from the 2011-12
legislative session:
1)AB 564 (Smyth), Chapter 549, Statutes of 2011, reauthorized
the addition of the Municipal Shelter Spay-Neuter Fund
checkoff to the PIT return upon the removal of another VCF
from the form.
2)AB 764 (Swanson), Chapter 465, Statutes of 2011, authorized
the addition of the Child Victims of Human Trafficking Fund
checkoff to the PIT return upon the removal of another VCF
from the form.
3)AB 971 (Monning), Chapter 209, Statutes of 2011, reauthorized
the addition of the California Sea Otter Fund checkoff to the
PIT form beginning with the 2011 return.
4)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. Specifically, SB 164
extended the VCF provisions for both the State Children's
Trust Fund and the Rare and Endangered Species Preservation
Program.
5)SB 583 (Vargas), Chapter 711, Statutes of 2011, reauthorized
the addition of the ALS/Lou Gehrig's Disease Research Fund
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checkoff to the PIT return upon the removal of another VCF
from the form.
Analysis Prepared by : M. David Ruff / REV. & TAX. / (916)
319-2098
FN: 0005605