BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 1101
                                                                  Page  1


          SENATE THIRD READING
          SB 1101 (Cedillo)
          As Amended April 15, 2008
          Majority vote 

           SENATE VOTE  :30-3  
           
           REVENUE & TAXATION  9-0         APPROPRIATIONS      17-0        
           
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          |Ayes:|Charles Calderon, DeVore, |Ayes:|Leno, Walters, Caballero, |
          |     |Arambula, Eng, Feuer,     |     |Davis, DeSaulnier,        |
          |     |Hayashi, Ma, Plescia,     |     |Emmerson, Furutani,       |
          |     |Spitzer                   |     |Huffman, Karnette,        |
          |     |                          |     |Krekorian,                |
          |     |                          |     |La Malfa, Lieu, Ma,       |
          |     |                          |     |Nakanishi, Nava, Sharon   |
          |     |                          |     |Runner, Solorio           |
           ----------------------------------------------------------------- 
           
          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,








                                                                  SB 1101
                                                                  Page  2



             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.  
                

          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.  

           COMMENTS  :  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."

          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."

          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.  


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



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