BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 1101
                                                                  Page  1

          Date of Hearing:   July 2, 2008

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mark Leno, Chair

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

          Policy Committee:                             Revenue and  
          Taxation     Vote:                            9-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill extends the sunset date for the personal income tax  
          voluntary checkoff for the Emergency Food Assistance Program  
          from January 1, 2009 to January 1, 2014.

           FISCAL EFFECT  

          FTB estimates revenue losses of less than $30,000 annually for  
          fiscal years 2009-10 through 2013-14.  These losses are related  
          to the portion of the contributions that are taken as itemized  
          deductions on tax returns.

           COMMENTS  

           1)Purpose  . The author states that the bill is proposed to extend  
            a program that has been successful in generating contributions  
            for food for hungry families in California. 

           2)Background - Voluntary Contribution Funds (VCFs)  . California  
            taxpayers can make voluntary contributions to any of 14  
            contribution funds listed on the state personal income tax  
            return. The contributions are in addition to any tax  
            liabilities otherwise owed. Thus, they do not directly reduce  
            state taxes otherwise available to support state-funded  
            programs in the year in which they are made. However, the  
            amounts are allowed as an itemized deduction for charitable  
            contributions on the subsequent year's income tax return. 

            These voluntary contributions support various purposes,  
            including cancer research, Alzheimer's research, endangered  
            species preservation, and firefighters and peace officers  








                                                                  SB 1101
                                                                  Page  2

            memorials. Contributions have historically ranged from  
            $300,000 to $800,000 per year. In most cases, the VCFs remain  
            on the state income tax return until they are repealed or they  
            fail to meet minimum contribution amounts (generally $250,000  
            in the first year, with future year minimums increased for  
            inflation). All but one of the VCFs (the California Seniors'  
            Special Fund) have sunset dates.

           3)Background-Emergency Food Assistance Program.  This program  
            provides emergency food supplies to low- and no-income  
            households and individuals, as well as other sites such as  
            soup kitchens.  The program distributes commodities donated by  
            the Department of Agriculture and produce donated by  
            California's food growers, packers and processors.  
            Contributions to this voluntary contribution fund have been  
            slightly less than $400,000 annually in recent years. 
           Analysis Prepared by  :    Brad Williams / APPR. / (916) 319-2081