BILL ANALYSIS
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|SENATE RULES COMMITTEE | SB 1101|
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THIRD READING
Bill No: SB 1101
Author: Cedillo (D)
Amended: 4/15/08
Vote: 21
SENATE REVENUE & TAXATION COMMITTEE : 6-1, 4/9/08
AYES: Oropeza, Alquist, Machado, Runner, Scott, Wiggins
NOES: Harman
NO VOTE RECORDED: Cogdill
SENATE APPROPRIATIONS COMMITTEE : 12-0, 4/28/08
AYES: Torlakson, Cox, Aanestad, Cedillo, Corbett, Dutton,
Florez, Kuehl, Oropeza, Runner, Wyland, Yee
NO VOTE RECORDED: Ashburn, Ridley-Thomas, Simitian
SUBJECT : Income tax checkoff: Emergency Food for
Families Fund
SOURCE : California Association of Food Banks
DIGEST : This bill extends the sunset on the Emergency
Food Assistance Program Fund as a voluntary contribution
fund on the personal income tax form until January 1, 2014.
This bill also changes the name of the designation of the
Fund to the Emergency Food for Families Fund on the tax
form.
ANALYSIS : 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
CONTINUED
SB 1101
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2
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 on the Emergency Food
Assistance Program Fund tax checkoff on the personal income
tax form until January 1, 2014. This bill also changes the
name of the designation to the Emergency Food for Families
Fund.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
According to the Senate Appropriations Committee, the tax
checkoff funds are used to supplement the existing
Emergency Food Assistance Program which is administered by
the Department of Social Services to provide United States
Department of Agriculture commodities, as well as surplus
fresh foods donated by farmers and businesses, to local
food banks for distribution to the working poor,
low-income, unemployed, and homeless persons. The
Emergency Food Assistance Program tax checkoff has provided
$399,876 in 2005, $390,586 in 2006, and $392,424 in 2007
for the program--an average of $394,295 annually.
According to the Department of Social Services, there is no
staff specifically dedicated to the administration of the
revenues generated by the checkoff because these
contributions are a very small part of the program as a
whole. Committee staff notes that assuming average annual
contributions of $394,295, the estimated revenue loss
related to the continuation of this checkoff would be
$23,658 (applying the average marginal tax rate of six
percent), beginning in 2009-10. Contributions are claimed
as itemized deductions in the following tax year.
SB 1101
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3
SUPPORT : (Verified 4/29/08)
California Association of Food Banks (source)
Alameda County Community Food Bank
Amador-Tuolumne Community Action Agency
California Catholic Conference of Bishops
California Food Policy Advocates
California Hunger Action Coalition
Community Action Agency of Butte County, Inc.
Community Action Partnership of Orange County
Community Food Bank
Food Bank Coalition of San Luis Obispo County
Food Bank for Monterey County
Food Bank of Contra Costa and Solano
Food Bank of Yolo County
Food for People, Inc.
Food Share, Ventura County's Food Bank
HRC Food Bank
Imperial Valley Food Bank
Mendocino Food and Nutrition Program
Redwood Empire Food Bank
San Francisco Food Bank
Second Harvest Food Bank of Santa Clara and San Mateo
Counties
Tongan Community Service Center
ARGUMENTS IN SUPPORT : 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."
DLW:mw 4/30/08 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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