BILL NUMBER: AB 292 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Member Yamada
FEBRUARY 13, 2009
An act to amend Sections 18761, 18765, and 18766 of the Revenue
and Taxation Code, relating to taxation.
LEGISLATIVE COUNSEL'S DIGEST
AB 292, as introduced, Yamada. Personal income taxes:
contributions: Alzheimer's disease.
The Personal Income Tax Law allows taxpayers, until January 1,
2010, to contribute amounts in excess of their tax liability for the
support of the California Alzheimer's Disease and Related Disorders
Research Fund.
This bill would extend the operation of those contribution
provisions to January 1, 2015.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 18761 of the Revenue and Taxation Code is
amended to read:
18761. The Legislature finds and declares all of the following:
(a) Alzheimer's disease and related dementia disorders are
devastating health conditions that cause a loss of intellectual
functioning so severe that they interfere with an individual's daily
functioning and eventually result in death. These conditions
affect 10 percent of Californians over the age of 65 years and 50
percent of Californians who are 85 years of age or older. They
cause serious financial, social, and emotional hardships on
those affected and on their family caregivers.
(b) The total annual cost of caring for individuals with
Alzheimer's disease and other dementia disorders in California is
over $10 billion. These conditions cost California businesses $3.3
billion annually, most of which is due to the lost productivity of
family caregivers. Approximately 50 percent of all nursing home
admissions in California are attributable to Alzheimer's disease and
related dementia disorders. Between 2008
and 2030 there will be a doubling in the number of Californians
living with Alzheimer's disease. In this same period, there is
expected to be a tripling in the number of California's Latinos and
Asians with this disease.
(c) Among California's baby boomers 55 years of age and older,
their lifetime risk for developing Alzheimer's disease is one in
eight.
(d) Alzheimer's disease is now the sixth leading cause of death in
California.
(e) Families provide almost three-quarters of the value of care
for individuals living with Alzheimer's disease in the community and
in facilities, amounting to approximately $72.7 billion dollars out
of an estimated total cost of $104 billion dollars. These family
caregivers are more likely to experience financial hardship, health
difficulties, and a negative impact on their ability to work outside
the home.
(f) The cost to the Medi-Cal program for an individual with
Alzheimer's disease or a related dementia is two and one-half times
greater than the cost for an individual without a diagnosis of
dementia.
(c)
(g) While scientists have made great strides in
understanding Alzheimer's disease and other causes of dementia, there
is no known prevention or cure at this time.
(d)
(h) It is the intent of the Legislature, in enacting
this article, to establish a systematic program for the conduct of
research regarding the cause, prevention, diagnosis, cure, and
treatment of Alzheimer's disease and related disorders. The outcome
of this research may have direct effects and consequences on the
development of a comprehensive system that will provide diagnoses and
treatment to victims of those health problems. This program shall
award grants to eligible physicians, hospitals, laboratories,
educational institutions, and other organizations and persons for the
purpose of enabling those organizations and persons to conduct
research.
SEC. 2. Section 18765 of the Revenue and Taxation Code is amended
to read:
18765. All money transferred to the California Alzheimer's
Disease and Related Disorders Research Fund, upon appropriation by
the Legislature, shall be allocated as follows:
(a) To the Franchise Tax Board and the Controller for
reimbursement of all costs incurred by the Franchise Tax Board and
the Controller in connection with their duties under this article.
(b) To the appropriate state department as established by the
Secretary of the Health and Welfare Agency
California Health and Human Services in consultation with the
California Department of Aging, and any others which the
secretary deems appropriate. These funds shall be expended for the
purpose of conducting research relating to the care, treatment, and
the cure of Alzheimer's disease through contracts or grants developed
and awarded as determined by the Secretary of the Health
and Welfare Agency California Health and Human
Services , in consultation with the California
Department of Aging and any others which the secretary deems
appropriate.
SEC. 3. Section 18766 of the Revenue and Taxation Code is amended
to read:
18766. (a) This article shall remain in effect only until January
1, 2010 2015 , and as of that date is
repealed, unless a later enacted statute, which is enacted before
January 1, 2010 2015 , deletes that
date.
(b) (1) By September 1, 2006 2010 ,
and by September 1 of each subsequent calendar year that the
California Alzheimer's Disease and Related Disorders Research Fund
appears on a tax return, the Franchise Tax Board shall do all of the
following:
(A) Determine the minimum contribution amount required to be
received during the next calendar year for the fund to appear on the
tax return for the taxable year that includes that next calendar
year.
(B) Provide written notification to the Secretary of California
Health and Human Services of the amount determined in subparagraph
(A).
(C) Determine whether the amount of contributions estimated to be
received during the calendar year will equal or exceed the minimum
contributions amount determined by the Franchise Tax Board for the
calendar year pursuant to subparagraph (A). The Franchise Tax Board
shall estimate the amount of contributions to be received by using
the actual amounts received and an estimate of the contributions that
will be received by the end of that calendar year.
(2) If the Franchise Tax Board determines that the amount of
contributions estimated to be received during a calendar year will
not at least equal the minimum contribution amount for the calendar
year, this article is repealed with respect to taxable years
beginning on or after January 1 of that calendar year.
(3) For purposes of this section, the minimum contribution amount
for a calendar year means two hundred fifty thousand dollars
($250,000) for the 2000 calendar year or the minimum contribution
amount adjusted pursuant to subdivision (c).
(c) For each calendar year, beginning with calendar year 2001, the
Franchise Tax Board shall adjust, on or before September 1 of that
calendar year, the minimum contribution amount specified in
subdivision (b) as follows:
(1) The minimum contribution amount for the calendar year shall be
an amount equal to the product of the minimum contribution amount
for the prior calendar year multiplied by the inflation factor
adjustment as specified in paragraph (2) of subdivision (h) of
Section 17041, rounded off to the nearest dollar.
(2) The inflation factor adjustment used for the calendar year
shall be based on the figures for the percentage change in the
California Consumer Price Index received on or before August 1 of the
calendar year pursuant to paragraph (1) of subdivision (h) of
Section 17041.
(d) Notwithstanding the repeal of this article, any contribution
amounts designated pursuant to this article prior to its repeal shall
continue to be transferred and disbursed in accordance with this
article as in effect immediately prior to that repeal.