BILL ANALYSIS
AB 1088
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 1088 (Fletcher)
As Amended March 1, 2010
Majority vote
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|ASSEMBLY: |71-0 |(January 27, |SENATE: |32-1 |(August 19, |
| | |2010) | | |2010) |
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Original Committee Reference: REV. & TAX.
SUMMARY : Authorizes the addition of the California Veterans
Homes Fund (Fund) checkoff to the personal income tax (PIT) form
upon the removal of another voluntary contribution fund (VCF)
from the form.
The Senate amendments add coauthors.
EXISTING LAW :
1)Allows taxpayers to designate on their PIT returns a
contribution to any of 15 VCFs.
2)Provides a specific sunset date for each VCF, except the
California Seniors Special Fund.
3)Provides that each VCF must meet a minimum annual contribution
amount to remain in effect, except for the California Seniors
Special Fund, the California Firefighters' Memorial Fund, and
the California Peace Officer Memorial Foundation Fund.
AS PASSED BY THE ASSEMBLY , this bill:
1)Established the Fund in the State Treasury.
2)Provided that all moneys transferred to the Fund, upon
appropriation by the Legislature, shall be allocated as
follows:
a) To the Franchise Tax Board (FTB) and the State
Controller for reimbursement of costs incurred in
administering the checkoff; and,
b) To the California Department of Veterans Affairs (CDVA)
AB 1088
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for allocation to the administrators of veterans homes.
Specifically, moneys shall be distributed proportionally to
the Morale, Welfare, and Recreation Fund of each veterans
home pursuant to Military and Veterans Code (MVC) Section
1047.
3)Stated that it is the Legislature's intent for this bill to
create an additional funding source for veterans homes that
will supplement, and not supplant, other funding sources.
4)Provided for the Fund provisions' automatic repeal on either
January 1 of the fifth taxable year following the first
appearance of the Fund on the PIT return, or on January 1 of
an earlier year, if FTB estimates that the annual contribution
amount will be less than $250,000, or an adjusted amount for
subsequent years.
5)Deleted the statutory provisions that authorized the Veterans'
Quality of Life Fund checkoff, which was also used to fund
veterans homes.
6)Made conforming amendments to the MVC.
FISCAL EFFECT : FTB estimates revenue losses, resulting from
contribution deductions, to be roughly $15,000 per year.
COMMENTS : The author states: "AB 1088 will establish a
voluntary contribution fund to finance programs and services at
the California Veterans' Homes via the Morale, Welfare, and
Recreation Fund provided by Section 1048 of the Military and
Veterans Code.
"The California Department of Veterans Affairs has a mission to
provide the state's aged and/or disabled veterans with
rehabilitative, residential, and medical care and services in a
home-like environment at the California Veterans Homes."
Committee Staff Comments:
1)The Veterans Home of California: As noted by CDVA, the
Veterans Home of California is first and foremost a place
where veterans come to live. Specifically, "It offers
complete medical and dental care amidst the amenities of a
small town atmosphere. Residents may participate in on- or
off-campus activities, civic affairs or attend veterans
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service organization meetings. On campus, residents have the
option of participating in the Therapeutic Employment Program
or by helping other veterans through volunteer service." CDVA
currently operates campuses in Yountville (Napa County),
Barstow (San Bernardino County), Chula Vista (San Diego
County), Lancaster (Los Angeles County), and Ventura (Ventura
County). CDVA is also designing and constructing three new
homes in West Los Angeles (Los Angeles County), Fresno (Fresno
County), and Redding (Shasta County).
2)Legislative history: AB 357 (Horton), Chapter 143, Statutes
of 2005, authorized the addition of a virtually identical VCF
called the Veterans' Quality of Life Fund to augment the
amount of money available to the state's veterans homes. The
Veterans' Quality of Life Fund appeared on the 2005 and 2006
tax returns in calendar years 2006 and 2007, respectively.
The prior fund received $135,345 in 2006 and $168,146 in 2007.
For tax years beginning on or after January 1, 2007, the fund
needed to meet a minimum contribution threshold of $250,000
but failed to do so, and as a result, the fund ceased to be
operative.
Analysis Prepared by : M. David Ruff / REV. & TAX. / (916)
319-2098
FN: 0005392