AB 1399
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Date of Hearing: January 11, 2016
ASSEMBLY COMMITTEE ON REVENUE AND TAXATION
Philip Ting, Chair
AB 1399 (Baker) – As Amended January 4, 2016
SUSPENSE
Majority vote. Fiscal committee.
SUBJECT: Income taxes: voluntary contributions: California Domestic Violence Fund
SUMMARY: Authorizes the addition of the California Domestic Violence Fund (Fund)
checkoff to the personal income tax (PIT) return upon the removal of another voluntary
contribution fund (VCF) from the return, or as soon as space is available. 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) Office of Emergency Services (OES) for the distribution of grants to domestic violence
programs in California that are in active status, as reflected on the Business Search of the
Secretary of State’s Internet Web site, and that are exempt from federal income taxation
as an organization described in the Internal Revenue Code (IRC) Section 501(c)(3).
3) Provide that the OES shall award grants and be responsible for overseeing the grant program.
4) Provides that a domestic violence program and the OES shall not use grant moneys awarded
or funds for administrative purposes and costs.
5) Provides for the Fund provisions' automatic sunset on January 1 of the fifth taxable year
following the Fund's first appearance on the PIT return.
6) Requires the Fund to meet a minimum contribution threshold of $250,000 indexed for
inflation.
EXISTING LAW:
1) Allows taxpayers to contribute to one or more of 18 VCFs.
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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: Unknown
COMMENTS:
1) The author has provided the following statement in support of this bill:
AB 1399 will increase available resources to victims of domestic violence by providing
additional resources through a donations option on California tax returns to the California
Domestic Violence Fund. Specifically, this bill will allow an individual to designate on
the tax return that a contribution in excess of the tax liability be made to the California
Domestic Violence Fund.
The cause for unmet critical needs are reduced government funding (37%,) cuts from
private funding (25%,) lack of staff (23%,) and a reduction in individual donations
(13%.) By providing additional opportunities for donations to domestic violence
programs, we can better provide a safe haven for families.
2) Arguments in Support. According to Safe Alternatives to Violent Environments, “Domestic
violence programs rely on a wide range of funding sources to support their programs,
including government grants, foundations, corporate donations, and individual donations.
Allowing individuals to easily donate to the California Domestic Violence Fund through their
individual tax filing will encourage Californians to support these essential programs and fund
lifesaving services.”
3) So many causes, so little space. There are countless worthy causes that would benefit from
the inclusion of a VCF on the state's income tax returns. At the same time, space on the
returns is limited. Thus, it could be argued that the current system for adding VCFs to the
form is subjective and essentially rewards organizations that can convince the Legislature to
include their fund on the form.
4) VCF policy. This Committee's VCF policy provides that "[a]ll proponents seeking
authorization for a new or reauthorized checkoff shall provide information justifying their
expectation that the checkoff will meet its minimum contribution requirement." The author’s
office has been clear about the need to fund domestic violence shelters but has provided no
explanation as to why this fund will generate the required $250,000 minimum contribution
requirement.
5) Administering the Fund. OES maintains a very large grant program, including a victims
services program that provides grants for domestic violence. This bill, however, provides
that OES shall distribute grants to domestic violence programs that are in active status as
reflected on the Secretary of State’s Internet Web site. It is unclear if the domestic violence
programs maintained on the Secretary of State’s Web site would be different than those
currently maintained by OES. In order to provide greater guidance and in order to reduce
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administrative costs, the Committee may wish to amend this bill so that the grants are
distributed to domestic violence programs that are part of one of OESs grant programs.
6) Funding the Administration of the Fund. This bill allows the FTB and the State Controller’s
office to be reimbursed for costs incurred in administering the VCF but does not do the same
for OES. Therefore, any additional staff, if needed, will have to come out of the OES’
existing budget. It is believed that cost will be absorbable bit OES has not confirmed this as
yet.
REGISTERED SUPPORT / OPPOSITION:
Support
Alliance for Community Transformations
California Partnership to End Domestic Violence
Center for Community Solutions
Center for Domestic Peace
Contra Costa County, Office of District Attorney
Contra Costa County, Board of Supervisors
Safe Alternatives to Violent Environments
Opposition
None on File
Analysis Prepared by: Carlos Anguiano / REV. & TAX. / (916) 319-2098