BILL ANALYSIS                                                                                                                                                                                                    Ó

                                                                AB 247
                                                                Page  1

        AB 247 (Wagner)
        As Amended  April 17, 2013
        Majority vote 

         REVENUE & TAXATION  9-0         APPROPRIATIONS      17-0        
        |Ayes:|Bocanegra, Dahle, Gordon, |Ayes:|Gatto, Harkey, Bigelow,   |
        |     |Wagner, Mullin, Nestande, |     |Bocanegra, Bradford, Ian  |
        |     |Pan,                      |     |Calderon, Campos,         |
        |     |V. Manuel Pérez, Ting     |     |Donnelly, Eggman, Gomez,  |
        |     |                          |     |Hall, Holden, Linder,     |
        |     |                          |     |Pan, Quirk, Wagner, Weber |
        |     |                          |     |                          |
         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  

        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;  

           b)   California Senior Legislature, for its ongoing activities on  
             behalf of older persons.  


                                                                AB 247
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         FISCAL EFFECT  :  The FTB estimates that this bill would reduce  
        General Fund revenues by $10,000 annually beginning in fiscal year  

         COMMENTS  :   

        1)The author has provided the following statement in support of this  

             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)Assembly Revenue and Taxation 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  

            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 2015, 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.  

        Analysis Prepared by  :    M. David Ruff / REV. & TAX. / (916)  
        319-2098                                                    FN: