BILL NUMBER: SCR 12INTRODUCED BILL TEXT INTRODUCED BY Senator Calderon FEBRUARY 20, 2013 Relative to taxation. LEGISLATIVE COUNSEL'S DIGEST SCR 12, as introduced, Calderon. Taxation. This measure would encourage state departments to identify and utilize existing and potential public or private partnerships to inform citizens and employees about the availability of the federal Earned Income Tax Credit and Volunteer Income Tax Assistance programs, as specified. Fiscal committee: no. WHEREAS, Insufficient income contributes to many of the social and human service needs in our state; and WHEREAS, The federal Earned Income Tax Credit (EITC) provides tax relief and income support to seniors and low-income working families earning less than $51,000 a year; and WHEREAS, The EITC lifts millions of individuals out of poverty each year in the United States by supporting work and self-sufficiency while reducing the need for public assistance; and WHEREAS, Increasing EITC utilization represents a highly cost-effective economic development strategy; and WHEREAS, Each year, the EITC helps approximately 284,376 households in California and brings more than $347 million into California's economy; and WHEREAS, It is estimated that every year, out of every family that qualifies for the EITC, 800,000 Californians fail to file for EITC, accordingly, increasing Californian's utilization of the EITC would help to bring additional funds into California's economy; and WHEREAS, Every resident earning less than $51,000 a year may qualify for up to $5,891 in EITC which can be used to lower their taxes or increase their tax refund; and WHEREAS, Every 1,000 residents who qualify and apply for EITC represents a potential $5.8 million economic stimulant for our communities; and WHEREAS, An increase of $1.2 billion each year in EITC benefits would generate $1.2 billion in business sales, pay $311 million in wages, and add nearly 7,500 jobs to the state economy each year; and WHEREAS, A volunteer EITC State Commission made up of executive directors of the State Board of Equalization, the Franchise Tax Board, the Employment Development Department, and representatives from the offices of the Superintendent of Public Instruction, the Controller, the Treasurer, the Trustees of the California State University System, the Board of Governors of the California Community Colleges, and two union representatives would coordinate Volunteer Income Tax Assistance (VITA) activities and provide callers with tax credit information, including information on eligibility rules, and direct workers to nearby VITA sites for needed tax forms and assistance; now, therefore, be it Resolved by the Senate of the State of California, the Assembly thereof concurring,That the Legislature of the State of California encourages departments of California state government to identify and utilize existing and potential public or private partnerships to inform citizens and employees about the availability of the EITC and the formation of VITA programs; and be it further. Resolved, That the Legislature of the State of California encourages each state entity to work in partnership with private outreach campaigns to identify and utilize existing communications mechanisms to inform Californians about the availability of the EITC and VITA programs, which may include state publications, Internet Web sites, human resource materials and communications, correspondence and forms from the state taxing agencies, the Treasurer, and the Controller, targeted printed materials, caseworker and client interactions, and application materials for state assistance and state licenses; and be it further Resolved, That the Legislature of the State of California encourages each state entity including the State Librarian, the Superintendent of Public Instruction, and others to utilize existing state infrastructure, if appropriate, to support EITC outreach and statewide availability of the VITA program, which may include utilizing the Department of Workforce Investment Service Centers and other appropriate locations as VITA sites, staffed by trained VITA volunteers, between January and April, encouraging local school districts to integrate EITC outreach and VITA services into their parent involvement and community school efforts, and utilizing economic development tools and negotiations to encourage and support EITC outreach and employment-based VITA sites if appropriate; and be it further Resolved, That the Secretary of the Senate transmit copies of this resolution to the author for appropriate distribution.