BILL ANALYSIS �
AB 1765
Page 1
ASSEMBLY THIRD READING
AB 1765 (Jones-Sawyer)
As Amended April 2, 2014
Majority vote
REVENUE & TAXATION 8-0 APPROPRIATIONS 17-0
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|Ayes:|Bocanegra, Dahle, Gordon, |Ayes:|Gatto, Bigelow, Allen, |
| |Harkey, Mullin, Pan, V. | |Bocanegra, Bradford, Ian |
| |Manuel P�rez, Ting | |Calderon, Campos, |
| | | |Donnelly, Eggman, Gomez, |
| | | |Holden, Linder, Pan, |
| | | |Quirk, Ridley-Thomas, |
| | | |Wagner, Weber |
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SUMMARY : Authorizes the addition of a Habitat for Humanity Fund
(Fund) checkoff to the state personal income tax (PIT) return
upon the removal of another voluntary contribution fund (VCF)
from the return. Specifically, this bill :
1)Establishes the Fund in the State Treasury.
2)Provides that all money transferred to the Fund, upon
appropriation by the Legislature, shall be allocated to the:
a) Franchise Tax Board (FTB) and the State Controller for
reimbursement of all costs incurred in administering the
VCF; and,
b) Department of Housing and Community Development for
grant distribution to Habitat for Humanity affiliates in
California that are in active status, as specified, and
that are exempt from federal income taxation under Internal
Revenue Code Section 501(c)(3). These grants shall be
awarded through a competitive, project-specific grant
process. Moreover, affiliates shall be precluded from
using grant awards for administrative expenses or for any
purposes outside California.
3)Provides for the Fund provisions' automatic sunset on either
January 1 of the fifth taxable year following the Fund's first
appearance on the PIT return or on January 1 of an earlier
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year, if the FTB estimates that the annual contribution amount
will be less than $250,000, or an adjusted amount for
subsequent years.
EXISTING LAW :
1)Allows taxpayers to contribute to one or more of 20 VCFs on
the 2013 PIT return.
2)Provides a specific sunset date for each VCF, except for the
California Seniors Special Fund and the State Parks Protection
Fund.
3)Requires each VCF to meet an annual minimum contribution
amount to remain in effect, except for the California
Firefighters' Memorial Fund, the California Peace Officer
Memorial Foundation Fund, and the California Seniors Special
Fund.
FISCAL EFFECT : According to the Assembly Appropriations
Committee:
1)Estimated General Fund revenue reduction of up to $10,000
beginning in Fiscal Year 2015-16.
2)Minor annual costs to the Department of Housing and Community
Development to establish and administer the competitive grant
program.
COMMENTS : The author has provided the following statement in
support of this bill:
With bond funding exhausted and redevelopment funds
eliminated, California is facing virtually no state
investment in affordable housing. At the same time,
Habitat for Humanity, a faith-based nonprofit
organization dedicated to building affordable homes
for families with limited incomes, has built,
rehabilitated, repaired or improved more than
[800,000] houses worldwide, providing simple, decent
and affordable shelter for more than [4] million
people. However, redevelopment's [dissolution] in
2011 greatly impacted Habitat's ability to fulfill its
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mission. Allowing individuals to donate via their
income tax [?] return can raise hundreds of thousands
of dollars for Habitat for Humanity. This money will
be used for the sole purpose of building affordable
housing throughout California. In Louisiana, the only
other state that has a voluntary income tax check off,
the affordable housing fund raises an average of $5
million annually.
Assembly Revenue and Taxation Committee staff comments:
1)Habitat for Humanity: According to its Web site, Habitat for
Humanity is a nonprofit, ecumenical Christian ministry
"founded on the conviction that every man, woman and child
should have a decent, safe and affordable place to live." The
organization has more than 1,500 local affiliates in the
United States and more than 70 national organizations around
the world. Habitat for Humanity estimates that it has helped
to build or repair more than 800,000 houses worldwide.
2)Habitat for Humanity affiliates: As noted above, this bill
directs the Department of Housing and Community Development to
distribute Fund moneys through grants to active Habitat for
Humanity affiliates in California. Affiliates, in turn, are
community-level Habitat for Humanity offices that serve a
specific area in partnership with and on behalf of Habitat for
Humanity International. Each affiliate coordinates all
aspects of home building in a local area, from fundraising and
building site selection, to house construction and mortgage
servicing. Affiliates operate within the framework of a
"Habitat Affiliate Covenant" but remain independently run,
nonprofit organizations. All affiliates are asked to tithe a
percentage of their contributions to fund house-building work
in other nations.
3)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 PIT return. At the same time, space on the return
is limited. Thus, it could be argued that the current system
for adding VCFs to the return is inherently subjective and
essentially rewards causes that are able to convince the
Legislature to include their fund on the return.
Analysis Prepared by : M. David Ruff / REV. & TAX. / (916)
AB 1765
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319-2098 FN:
0003191