BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 247
                                                                  Page  1

          Date of Hearing:   May 1, 2013

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                    AB 247 (Wagner) - As Amended:  April 17, 2013 

          Policy Committee:                              Revenue and  
          Taxation     Vote:                            9-0

          Urgency:     No                   State Mandated Local  
          Program:NoReimbursable:           

           SUMMARY  

          This bill extends the repeal date of the income tax return  
          check-off date for the California Fund for Senior Citizens from  
          January 1, 2015, to December 1, 2020, provided donations from  
          taxpayers meet the required annual minimum.

           FISCAL EFFECT  

          Minor annual GF revenue losses of roughly $10,000 from taxpayers  
          deducting charitable contributions, beginning in the 2016-17  
          fiscal year.

           COMMENTS  

           1)Purpose  .    According to the author this bill will encourage  
            additional contributions toward the California Fund for Senior  
            Citizens, which provides support to the California Senior  
            Legislature, which advocates and proposes laws impacting  
            senior citizens.   Proponents, including the California Senior  
            Legislature, argue AB 247 will ensure 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 to the  
            support of the California Fund for Senior Citizens.  

           2)Voluntary Contribution Funds.   California taxpayers can make  
            voluntary contributions to any of 15 funds listed on the state  
            PIT return.  The contributions are in addition to tax  
            liabilities so they do not directly reduce the amount of state  
            taxes in that tax year.  As charitable contributions, the  
            taxpayer may deduct the amount of the check-off on the  








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            subsequent year's income tax return, reducing state tax  
            collections.  These voluntary contributions support various  
            purposes, including cancer research, endangered species  
            preservation and emergency food assistance.  Most have sunset  
            dates and must meet a minimum annual contribution to remain on  
            the tax form.

           3)Background.   The California Fund for Senior Citizens supports  
            the ongoing work of the California Senior Legislature.  The  
            California Senior Legislature notes since 1981 it has labored  
            to identify, develop and support legislative proposals that  
            protect and enhance the quality of life of California's  
            seniors.

            The FTB reports that the fund first appeared on the 1983 PIT  
            return.  The minimum amount of contributions amount for each  
            calendar year is $250,000, which is not annually adjusted for  
            inflation.  In the 2012, the fund received approximately  
            $275,000 in contributions.

           4)Related Legislation  .

             a)   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.   
               AB 394 is in the Senate.

             b)   AB 511 (Pan) establishes and allows taxpayers to make  
               voluntary contributions to the American Red Cross,  
               California Chapters Fund.  AB 511 is on the Assembly floor.

             c)   AB 754 (Muratsuchi) establishes and allows taxpayers to  
               make voluntary contributions to the California Beach and  
               Coastal Enhancement Account.  AB 754 is pending in this  
               committee.

             d)   AB 1286 (Skinner) suspends the annual adjustment of the  
               minimum contribution amount threshold for the California  
               Breast Cancer Research Fund.  AB 1286 has been referred to  
               Assembly Revenue and Taxation Committee.

             e)   SB 116 (Liu) extends the repeal date of the Emergency  
               Food for Families Fund from January 1, 2014, to January 1,  
               2019.  SB 116 has been referred to the Senate Committee on  
               Appropriations.








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             f)   SB 571 (Price) establishes and allows taxpayers to make  
               voluntary contributions to the Arts for Kids Fund on their  
               state personal income tax returns.  SB 571 has been  
               referred to the Senate Committee on Governance and Finance.

           1)There is no registered opposition to this bill.  
           

           

           Analysis Prepared by  :    Roger Dunstan / APPR. / (916) 319-2081