BILL ANALYSIS �
AB 1765
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Date of Hearing: April 9, 2014
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
AB 1765 (Jones-Sawyer) - As Amended: April 2, 2014
Policy Committee: Revenue &
Taxation Vote: 8-0
Urgency: No State Mandated Local Program:
No Reimbursable: No
SUMMARY
This bill allows a taxpayer to make a voluntary contribution to
the Habitat for Humanity Fund on the state personal income tax
return, beginning once another current checkoff for charitable
fund contribution has been removed. Funds raised would be
distributed to Habitat for Humanity affiliates in California
through a competitive, project-specific grant process.
FISCAL EFFECT
1)Potential GF revenue reduction of up to $10,000 in each of
2015-16 and 2016-17.
2)Minor annual costs to the California Department of Housing and
Community Development to establish and administer the
competitive grant program.
COMMENTS
1) Purpose. According to the author, with bond funding exhausted
and redevelopment funds eliminated, California is facing
virtually no state investment in affordable housing. Grants
distributed from the fund would be available solely for the
purpose of building affordable housing in California.
2) Checkoff funds. With a few exceptions, funds remain on the
state personal income tax return until they are either
repealed or fail to meet their minimum contribution amount.
If the FTB estimates that contributions to a checkoff fund
will fail to meet the minimum contribution amount, that fund
is repealed effective January 1 of that calendar year.
AB 1765
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3) Habitat for Humanity fund. This bill would take effect
January 1, 2015, and if the FTB were to remove another fund,
could first appear on the state personal income tax return for
2014 filed after January 1, 2015. Following the first taxable
year during which the Habitat for Humanity Fund appears on the
return, this bill would require the fund to meet a $250,000
minimum contribution amount in order to remain on the return.
In addition, the bill stipulates the fund would remain in
effect only until January 1 of the fifth taxable year
following its first appearance on the return.
Analysis Prepared by : Joel Tashjian / APPR. / (916) 319-2081