BILL ANALYSIS
SENATE REVENUE & TAXATION COMMITTEE
Senator Jenny Oropeza, Chair
SB 1101 - Cedillo
Amended: February 15, 2008
Hearing: April 9, 2008 Fiscal: YES
SUMMARY: Extends the Sunset Date for the Emergency Food
Assistance Program Fund.
EXISTING LAW allows taxpayers to contribute (not tax
liabilities) to one or more of the 11 voluntary
contribution funds listed on the state personal income tax
return.
Each voluntary contribution fund must meet a minimum
annual contribution of $250,000. The minimum contribution
amount does not apply to the California Seniors Special
Fund, the California Firefighters Memorial Fund, and the
California Peace Officer Foundation Memorial Fund. This
minimum contribution amount is adjusted annually for
inflation for all voluntary contribution funds, except for
those referenced above, and the California Fund for Senior
Citizens. Except for the California Seniors Special Fund,
each voluntary contribution fund has a sunset date.
THIS BILL extends the sunset date for the Emergency
Food Assistance Program Fund until January 1, 2014 and
renames the fund on to the Emergency Food for Families
Fund.
FISCAL EFFECT:
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The Franchise Tax Board (FTB) estimates no fiscal
impact for fiscal year 2008-09 and revenue losses of less
than $150,000 in fiscal years 2009-10 and 2010-11.
COMMENTS:
A. Purpose of the bill
According to the author, "In 1998, I authored
legislation to create a voluntary check-off for the
Emergency Food Assistance Program. The check-off was very
successful in generating contributions for food for hungry
families. Due to the success of the check-off, in 2003, I
authored legislation to extend the sunset for the check-off
an additional 5 years. In January of 2009, the check-off
again expires. SB 1101 would allow this successful fund
raising tool to continue."
B. Significant Contributions for a Good Cause
Donations to the Emergency Food Assistance Program
Fund allow food banks to purchase food. The program serves
50 agencies in all 58 counties with 60 million pounds of
food distributed annually. In 2007, only four other funds
received more contributions then the Emergency Food
Assistance Program Fund. Since 2005, donations to the fund
have totaled nearly $1.2 million. According to proponents
of the bill, as food costs rose 5.7% last year and with
over 8 million California living below 150% of the federal
poverty level, the need for this fund is as critical as
ever.
C. Enough room?
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Currently there are eleven voluntary contribution
funds. There is a maximum amount of space available for
these contributions on the income tax form. In addition to
this bill, five other bills create new voluntary
contribution funds. Those other bills are as follows:
AB 1812 (Arambula), pending in Assembly Government
Organization
AB 1935 (Fuller), pending in Assembly Revenue and
Taxation
AB 2219 (Mendoza), pending in Assembly Revenue and
Taxation
AB 2581 (Torrico), pending in Assembly Appropriations
SB 1502 (Steinberg), pending in this committee
The Franchise Tax Board says there is enough room on
existing tax forms to accommodate the new voluntary
contribution funds and extend the sunset on the Emergency
Food Assistance Program Fund.
D. Many Good Causes
In the past, the Committee has expressed concern that
countless worthy causes could be funded by tax check-offs.
The Committee has stated that the current check-off system
forces them to choose between worthy charities and
non-profits for a spot on the tax return. The current
system remains subjective and is limited to those
organizations who can convince the Legislature to include
them on the form. Additionally, taxpayers may currently
contribute portions of their refunds to worthy
organizations. Taxpayers may also claim a deduction for
charitable contributions. The Committee may wish to
consider whether the state should use the tax code to
encourage contributions to certain charitable
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organizations.
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E. 2007 Check-Offs
Contributions to voluntary funds in 2007 were as
follows:
-----------------------------------------------------
| | |
| Voluntary Contribution | 2007 Contributions |
| Fund | |
| | |
|--------------------------+--------------------------|
| | |
| California Alzheimer's | $485,401 |
| Research Fund | |
| | |
|--------------------------+--------------------------|
| | |
| California Breast Cancer | $571,855 |
| Research Fund | |
| | |
|--------------------------+--------------------------|
| | |
| California Firefighters' | $213,236 |
| Memorial Fund | |
| | |
|--------------------------+--------------------------|
| | |
| California Fund for | $264,645 |
| Senior Citizens | |
| | |
|--------------------------+--------------------------|
| | |
| California Peace Officer | $166,602 |
| Memorial Foundation Fund | |
| | |
|--------------------------+--------------------------|
| | |
|California Sea Otter Fund | $42,956 |
| | |
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|--------------------------+--------------------------|
| | |
| California Seniors | $47,679 |
| Special Fund | |
| | |
|--------------------------+--------------------------|
| | |
|Emergency Food Assistance | $391,023 |
| Program Fund | |
| | |
|--------------------------+--------------------------|
| | |
| Rare and Endangered | $572,043 |
| Species Preservation | |
| Program | |
| | |
|--------------------------+--------------------------|
| | |
| State Children's Trust | $499,827 |
| for the Prevention of | |
| Child Abuse | |
| | |
|--------------------------+--------------------------|
| | |
| California Military | $260,878 |
| Family Relief Fund | |
| | |
-----------------------------------------------------
F. Suggested amendments
The committee may wish to consider the following
amendments, which the author has agreed to, to correct
drafting errors.
On page 2, line 21 after "Food" insert: Assistance
Program.
On page 2, line 22, strike "for Families"
On page 2, line 27 after "Food" insert: Assistance
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Program.
On page 2, line 27, strike "for" and line 28, strike
"Families"
On page 2, line 29 after "Food" insert: Assistance
Program.
On page 2, line 29, strike "for" and line 30, strike
"Families"
On page 2, line 35 after "Food" insert: Assistance
Program.
On page 2, line 36, strike "for Families"
Support and Opposition
Support: The California Association of Food Banks
(sponsor) The California Hunger Action
Coalition California Food
Policy Advocates The
Food Bank of Contra Costa and Solano
Community Food Bank Food
for People, Inc. The
Food Bank for Monterey County The
Community Action Partnership of Orange County The
San Francisco Food Bank The
Food Bank Coalition of San Luis Obispo County
Second Harvest Food Bank of Santa Clara and San Mateo
CountiesThe Redwood Empire Food Bank The
Food Bank of Yolo County
Amador-Tuolumne Community Action Agency
California Catholic Conference of Bishops The
Imperial Valley Food Bank The
Tongan Community Service Center The
Community Action Agency of Butte County, Inc. Food
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Share, Ventura County's Food Bank
Alameda County Community Food Bank The
HRC Food Bank The
Mendocino Food and Nutrition Program
Oppose:None received
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Consultant: Brendan P. Hughes