BILL ANALYSIS Ó
AB 247
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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
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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
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| 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
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Older Women's League of California
1 individual
Opposition
None on file
Analysis Prepared by : M. David Ruff / REV. & TAX. / (916)
319-2098