BILL ANALYSIS Ó
AB 247
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ASSEMBLY THIRD READING
AB 247 (Wagner)
As Amended April 17, 2013
Majority vote
REVENUE & TAXATION 9-0 APPROPRIATIONS 17-0
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|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 |
| | | | |
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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.
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
2016-17.
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)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
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 |
| | | | |
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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:
0000474