BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 1101
                                                                  Page  1

          Date of Hearing:  June 9, 2008

                     ASSEMBLY COMMITTEE ON REVENUE AND TAXATION
                             Charles M. Calderon, Chair

                   SB 1101 (Cedillo) - As Amended:  April 15, 2008

          Majority vote.  Fiscal committee.

           SENATE VOTE  :  30-3
           
          SUBJECT  :  Personal income taxes:  contributions:  Emergency Food  
          for Families Fund   

           SUMMARY  :  Extends the sunset date for the Emergency Food  
          Assistance Program Fund and changes the designation's name on  
          the personal income tax (PIT) return to the Emergency Food for  
          Families Fund.  Specifically,  this bill  :

          1)Extends the sunset date for the existing Emergency Food  
            Assistance Program Fund from January 1, 2009, to January 1,  
            2014.

          2)Changes the designation's name on the PIT return to the  
            Emergency Food for Families Fund.  

           EXISTING LAW  :

          1)Allows taxpayers to designate on their PIT returns a  
            contribution to any of 11 voluntary contribution funds (VCFs),  
            including the Emergency Food Assistance Program Fund. 

          2)Provides that all money transferred to the Emergency Food  
            Assistance Program Fund, upon appropriation by the  
            Legislature, shall be allocated to the:

             a)   Franchise Tax Board (FTB) and the State Controller for  
               reimbursement of administrative costs; and,

             b)   State Department of Social Services (DSS) for allocation  
               to the Emergency Food Assistance Program (Program).  Funds  
               must be allocated for direct services provided by the  
               Program and may not be used for DSS's administrative costs.  
                









                                                                  SB 1101
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          3)Provides a specific sunset date for each VCF except the  
            California Seniors Special Fund. 

           FISCAL EFFECT  :  FTB estimates no fiscal impact for fiscal year  
          (FY) 2008-09, and revenue losses of less than $30,000 in FYs  
          2009-10 and 2010-11.  

           Proposition 98 Fiscal Effect  :  Minimal.  

           COMMENTS  :

          1)The author states, "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."

          2)Proponents state, "SB 1101 would extend provisions in existing  
            law that allow taxpayers to designate on their tax returns  
            that a specified amount in excess of their tax liability be  
            contributed to the Emergency Food for Families Fund.  The  
            Emergency Food for Families Fund provides vital assistance to  
            families in need."

          3)Committee staff notes that annually, through its network of  
            1,500 distribution sites staffed by over 5,000 volunteers, the  
            Program distributes 60 million pounds of food to more than 1  
            million recipients and 1,600 recipient agencies.  

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          California Association of Food Banks (sponsor) 
          American Federation of State, County and Municipal Employees,  
          AFL-CIO 
          California Catholic Conference of Bishops
          California Food Policy Advocates
          California Hunger Action Coalition
          Community Action Partnership of Orange County
          Community Food Bank
          Food Bank Coalition of San Luis Obispo County








                                                                  SB 1101
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          Food Bank for Monterey County
          Food Bank of Contra Costa and Solano
          Food for People
          Redwood Empire Food Bank
          San Francisco Food Bank
          Second Harvest Food Bank of Santa Clara and San Mateo Counties

           Opposition 
           
          None on file  

           Analysis Prepared by  :  M. David Ruff / REV. & TAX. / (916)  
          319-2098