BILL ANALYSIS �
SB 782
Page 1
SENATE THIRD READING
SB 782 (DeSaulnier)
As Amended July 2, 2014
Majority vote
SENATE VOTE :33-0
REVENUE & TAXATION 9-0 APPROPRIATIONS 17-0
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|Ayes:|Bocanegra, Harkey, Beth |Ayes:|Gatto, Bigelow, |
| |Gaines, Gordon, Bloom, | |Bocanegra, Bradford, Ian |
| |Dahle, Pan, | |Calderon, Campos, |
| |V. Manuel P�rez, Ting | |Donnelly, Eggman, Gomez, |
| | | |Holden, Jones, Linder, |
| | | |Pan, Quirk, |
| | | |Ridley-Thomas, Wagner, |
| | | |Weber |
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SUMMARY : Reauthorizes the addition of the California Sexual
Violence Victim Services Fund (Fund) checkoff to the 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)Allows a deduction for any contribution made to the Fund.
3)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) Office of Emergency Services (OES) for the distribution
of grants to rape crisis centers in California that are in
active status, as reflected on the Business Search page of
the Secretary of State's Internet Web site, and that are
exempt from federal income taxation under Internal Revenue
Code Section 501(c)(3).
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4)Requires the OES to award grants and be responsible for
overseeing the grant program.
5)Prohibits a rape crisis center from using grant moneys for its
administrative costs.
6)Prohibits the OES from using funds for its administrative
costs.
7)Provides for the Fund provisions' automatic expiration 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 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, this bill would reduce General Fund revenues by
$10,000 in each year the VCF remains on the PIT return.
COMMENTS : The author has provided the following statement in
support of this bill:
SB 782 establishes the California Sexual Violence
Victim Services Fund to allow taxpayers to voluntarily
designate contributions to the fund on their tax
returns. These voluntary contributions will be used
to further services that California's Rape Crisis
Centers provide for sexual assault victims. Including
SB 782
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this fund on the state tax forms will increase
awareness of the significance of rape and sexual
assault programs as well as enhance charitable giving
for these essential programs.
Assembly Revenue and Taxation Committee comments:
What would this bill do? This bill reestablishes the Fund as a
VCF on the PIT return. This bill is designed to support the
services that California's rape crisis centers provide for
victims of rape or sexual assault. Specifically, Fund moneys
would be allocated to the OES for distribution of grants to rape
crisis centers in California.
Does this seem familiar? A VCF with the same name first
appeared on the 2005 return and last appeared on the 2006
return. Moneys contributed to the original Fund were first
distributed to the Epidemiology and Prevention for Injury
Control Branch of the State Department of Health Services.
Moneys were then allocated to the California Coalition Against
Sexual Assault (CALCASA) for the awarding of grants to support
CALCASA rape crisis center programs.
Unfortunately, the Fund failed to meet its minimum contribution
threshold of $250,000 in calendar year 2007. Thus, by operation
of law, the provisions establishing the original Fund were
repealed. The Fund generated $199,900 in 2006 and $184,980 in
2007.
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. 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.
In addition, the Assembly Revenue and Taxation Committee's VCF
policy provides, "All proponents seeking authorization for a new
or reauthorized checkoff shall provide information justifying
their expectation that the checkoff will meet its contribution
minimum." Given that an identically named VCF failed to meet
its minimum contribution threshold only a few years ago, it is
an open question whether this Fund will fare any better.
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Moreover, the Assembly Revenue and Taxation Committee questions
the precedent of simply re-establishing past VCFs when they fail
to garner sufficient support to remain on the PIT form.
Analysis Prepared by : M. David Ruff / REV. & TAX. / (916)
319-2098
FN: 0004711