BILL ANALYSIS Ó AB 247 Page 1 Date of Hearing: April 22, 2013 ASSEMBLY COMMITTEE ON REVENUE AND TAXATION Raul Bocanegra, Chair AB 247 (Wagner) - As Amended: April 17, 2013 Majority vote. Fiscal committee. SUBJECT : Personal income taxes: voluntary contribution: California Fund for Senior Citizens SUMMARY : Extends the sunset date for the California Fund for Senior Citizens (Fund). Specifically, this bill : 1)Extends the sunset date for the Fund's statutory provisions from January 1, 2015, to December 1, 2020. 2)Allows the Fund to remain on the personal income tax (PIT) return through the 2019 taxable year, provided the Fund continues to meet its annual minimum contribution amount. EXISTING LAW : 1)Allows taxpayers to designate a contribution to any of the 18 voluntary contribution funds (VCFs) on the 2012 PIT return. 2)Provides a specific sunset date for each VCF, except for the California Seniors Special Fund and the State Parks Protection Fund. 3)Provides that all money transferred to the Fund, upon appropriation by the Legislature, shall be allocated to the: a) Franchise Tax Board (FTB) and the State Controller for reimbursement of all costs incurred in administering the Fund; and, b) California Senior Legislature, for its ongoing activities on behalf of older persons. FISCAL EFFECT : The FTB estimates that this bill would reduce General Fund revenues by $10,000 annually beginning in fiscal year 2016-17. AB 247 Page 2 COMMENTS : 1)The author has provided the following statement in support of this bill: The reason for the bill is to encourage additional contributions toward the California Fund for Senior Citizens[,] which provides support to the California Senior Legislature that advocate[s] and propose[s] laws impacting senior citizens. 2)Proponents of this bill note the following: [AB 247] will [ensure] that [the California Senior Legislature] can continue to advocate on behalf of seniors in California by extending the provision of the Personal Income Tax Law allowing taxpayers to continue contributing amounts for the support of the California Fund for Senior Citizens. By extending the date to 2020, these contributions fund the development of legislative proposals seeking to improve services and programs addressing a variety of issues such as affordable health care access, elder abuse prevention, insurance consumer protection and community-based long-term care services and supports. 3)Committee Staff Comments: a) The California Senior Legislature : The Fund supports the ongoing work of the California Senior Legislature. The California Senior Legislature notes that, since 1981, it has labored to identify, develop, and support legislative proposals that protect and enhance the quality of life of California's seniors. b) Background of the Fund : The FTB reports that the Fund first appeared on the 1983 PIT return. The minimum contribution amount for each calendar year is $250,000, which is not annually adjusted for inflation. Since 2009, the Fund has received the following total contributions: ----------------------------------------------------------- AB 247 Page 3 | 2009 | 2010 | 2011 | 2012 | |-------------+---------------+---------------+-------------| | $330,646 | $296,144 | $308,763 |$272,742 | ----------------------------------------------------------- c) So many causes, so little space : There are countless worthy causes that would benefit from the inclusion of a new VCF on the state's PIT returns. At the same time, space on the return is limited. Thus, it could be argued that the current system for adding and retaining VCFs is subjective and essentially rewards causes that can convince the Legislature to include or retain their fund on the form. d) Current VCF bills : The following related bills have been introduced in the current legislative session: i) AB 394 (Yamada) extends the repeal date of the California Alzheimer's Disease and Related Disorders Research Fund from January 1, 2015, to December 1, 2020. ii) AB 511 (Pan) establishes the American Red Cross, California Chapters Fund. iii) AB 754 (Muratsuchi) establishes a new VCF for the California Beach and Coastal Enhancement Account. iv) AB 1286 (Skinner) specifies that, for calendar years 2014 to 2017, the California Breast Cancer Research Fund's minimum contribution amount shall equal the minimum contribution amount for the 2013 calendar year. v) SB 571 (Price) establishes the Arts for Kids Fund. REGISTERED SUPPORT / OPPOSITION : Support Alzheimer's Association California Advocates for Nursing Home Reform California Assisted Living Association California Association for Health Services at Home California Senior Legislature Contra Costa County Advisory Council on Aging County Welfare Directors Association of California AB 247 Page 4 Older Women's League of California 1 individual Opposition None on file Analysis Prepared by : M. David Ruff / REV. & TAX. / (916) 319-2098