Amended in Senate January 17, 2014

Amended in Senate January 6, 2014

Amended in Senate May 24, 2013

Senate Bill No. 761

Introduced by Senator DeSaulnier

February 22, 2013

An act to amend Section 18897 of the Revenue and Taxation Code, relating to taxation.

LEGISLATIVE COUNSEL’S DIGEST

SB 761, as amended, DeSaulnier. Personal income taxes: voluntary contributions: School Supplies for Homeless Children Fund.

The Personal Income Tax Law authorizes an individual to contribute amounts in excess of his or her tax liability for the support of specified funds, including the School Supplies for Homeless Children Fund. Existing law requires the moneys deposited in the School Supplies for Homeless Children Fund to be allocated, upon appropriation by the Legislature, to the State Department of Education for the sole purpose of assisting pupils in California pursuant to the federal McKinney-Vento Homeless Assistance Act by providing school supplies and health-related products to homeless children through competitive grant programs, as provided.

This bill would instead require the same moneys, upon appropriation by the Legislature, to be allocated to the State Department of Education for distribution to a begin delete single end delete nonprofit organization, exempt from taxation, for the sole purpose of assisting pupils in California pursuant to the federal McKinney-Vento Homeless Assistance Act by providing grants of school supplies and health-related products to partnering learning education agencies, as provided.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

Section 18897 of the Revenue and Taxation Code
is amended to read:

18897.  

All moneys transferred to the School Supplies for
Homeless Children Fund, upon appropriation by the Legislature,
shall be allocated as follows:

(a) To the Franchise Tax Board and the Controller for
reimbursement of all costs incurred by the Franchise Tax Board
and the Controller in connection with their duties under this article.

(b) To the State Department of Education as follows:

(1) (A) For distribution to a begin delete single end delete nonprofit organization
exempt from federal income tax as an organization described in
Section 501(c)(3) of the Internal Revenue Code for the sole purpose
of assisting pupils in California pursuant to the federal
McKinney-Vento Homeless Assistance Act (42 U.S.C. Sec. 11301
et seq.) by providing school supplies and health-related products
to partnering learning education agencies for distribution to
homeless children, as defined by the federal McKinney-Vento
Homeless Assistance Act (42 U.S.C. Sec. 11301 et seq.). The
nonprofit organization shall provide a minimum 100 percent match
for all funds received from the School Supplies for Homeless
Children Fund. begin insert The State Department of Education shall enter
into a memorandum of understanding with the nonprofit
organization. end insert

(B) The State Department of Education’s first designation of a
nonprofit organization shall be valid until January 1, 2017. On that
date, and every three calendar years thereafter, while this section
is operative and in effect, the State Department of Education shall
designate the same or a different nonprofit organization pursuant
to this section. The State Department of Education may revoke
the designation should the nonprofit organization fail to comply
with the provisions of this article. If a designation is revoked, the
State Department of Education shall designate a new nonprofit
organization within three calendar months.

(C) Funds shall be distributed by the State Department of
Education only after evidence is presented to the State Department
of Education that demonstrates that the learning education agencies
or domestic violence shelters have received the materials.

(2) For reimbursement of all costs incurred by the State
Department of Education in connection with verifying that the
designated nonprofit organization procured school supplies and
health-related products and provided matching funds.

(c) (1) Funds distributed to the nonprofit organization pursuant
to this section shall be used only for costs incurred to procure,
assemble, and ship school supplies and health-related products.
Funds made available pursuant to this section shall not be used for
administrative purposes, to reimburse costs associated with
administering grants of school supplies and health-related products
to learning education agencies or domestic violence shelters, or
for any purpose relating to the operation of the nonprofit
organization.

(2) The nonprofit organization may provide school supplies and
health-related products to children living in domestic violence
shelters.