BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 247| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- THIRD READING Bill No: AB 247 Author: Wagner (R) Amended: 4/17/13 in Assembly Vote: 21 SENATE GOVERNANCE & FINANCE COMMITTEE : 7-0, 6/26/13 AYES: Wolk, Knight, Beall, DeSaulnier, Emmerson, Hernandez, Liu SENATE APPROPRIATIONS COMMITTEE : 5-0, 8/12/13 AYES: De León, Gaines, Hill, Lara, Steinberg NO VOTE RECORDED: Walters, Padilla ASSEMBLY FLOOR : 75-0, 5/13/13 - See last page for vote SUBJECT : Personal income taxes: voluntary contribution: California Fund for Senior Citizens SOURCE : Author DIGEST : This bill extends from 2015 to 2020 the California Fund for Senior Citizens check-off on the personal state income tax form. ANALYSIS : Existing law allows taxpayers to contribute to one or more of 18 voluntary contribution funds, VCFs or check-offs, by checking a box on their state income tax return. California law requires contributions to be made from taxpayers' own resources and not from their tax liability, as is possible on federal tax returns. Check-off amounts may be claimed as CONTINUED AB 247 Page 2 charitable contributions on taxpayers' tax returns in the subsequent year. This bill extends the California Fund for Senior Citizens check off on the tax form from January 1, 2015 until January 1, 2020. The bill maintains all the existing requirements for the program including the annual reporting by September 1 of each year and the minimum contribution requirements adjusted for inflation. Background The Franchise Tax Board (FTB) designs tax returns to provide for the designation of contributions to specified funds either on the return itself or on a separate schedule that must be attached to the return. With a few exceptions, VCFs remain on the return until they are either repealed by a sunset date, or if they fail to meet a minimum contribution amount. Minimum contribution amounts are adjusted annually for inflation, with specific exceptions. For most VCFs, the minimum contribution amount is $250,000, beginning in the fund's second year. By September 1st of each year, the FTB must determine the minimum contribution amount required for each fund to remain on the form for the following calendar year and estimate whether contributions to each fund meet that amount. If the FTB estimates that a fund will fail to meet its minimum contribution amount, that fund is repealed for the following calendar year. The following check-offs do not have a minimum contribution requirement: California Firefighters' Memorial Foundation Fund, California Peace Officer Memorial Foundation Fund, and California Seniors Special Fund. ----------------------------------------------------------------- |Voluntary Contribution | 2012 | Contribution Allotment | | Fund |Contributi| | | |on Totals | | | | | | |-----------------------+----------+------------------------------| |ALS/Lou Gehrig's | $137,290 |As many as apply and receive | CONTINUED AB 247 Page 3 |Disease Research Fund | |grants provided for by the | | | |monies contributed. | | | | | |-----------------------+----------+------------------------------| |Alzheimer's | $466,485 |As many as contract or | |Disease/Related | |receive grants provided by | |Disorders Fund | |the monies contributed. | | | | | |-----------------------+----------+------------------------------| |Arts Council Fund | $165,647 |As many as apply and receive | | | |grants provided by the monies | | | |contributed. | | | | | |-----------------------+----------+------------------------------| |CA Breast Cancer | $440,771 |As many as apply and receive | |Research Fund | |grants provided from the | | | |monies contributed. | | | | | |-----------------------+----------+------------------------------| |CA Cancer Research | $432,355 |As many as apply and receive | |Fund | |grants provided from the | | | |monies contributed. | | | | | |-----------------------+----------+------------------------------| |CA Firefighters' | $152,004 |1 Group: California Fire | |Memorial Fund | |Foundation. | | | | | |-----------------------+----------+------------------------------| |CA Fund for Senior | $272,742 |1 Group: California Senior | |Citizens | |Legislature. | | | | | |-----------------------+----------+------------------------------| |CA Peace Officer | $136,172 |1 Group: California Peace | |Memorial Foundation | |Officer Memorial Commission. | |Fund | | | | | | | |-----------------------+----------+------------------------------| |CA Police Activities | $67,202 |The state CALPAL and county | |League (CALPAL) Fund | |CALPAL chapters. | | | | | |-----------------------+----------+------------------------------| |CA Sea Otter Fund | $351,037 |Department of Fish and | | | |Wildlife, and as many as | | | |apply for grants and | CONTINUED AB 247 Page 4 | | |contracts provided for by 50% | | | |of contributions. | | | | | |-----------------------+----------+------------------------------| |CA Seniors Special | $61,315 |The first $80K to the Area | |Fund | |Agency on Aging Advisory | | | |Council of California and the | | | |rest to area agencies as | | | |allocated by the California | | | |Department of Aging. | | | | | |-----------------------+----------+------------------------------| |CA YMCA Youth and | Initial |The first $300K to the CA | |Government Fund | Tax |YMCA Youth and Government | | | Return |Program. The rest is | | | 2012 |allocated in $10K annual | | | |grants to the: African | | | |American Leaders for Tomorrow | | | |Program, Asian Pacific Youth | | | |Leadership Project, Chicano | | | |Latino Youth Leadership | | | |Project. The money is to be | | | |used to support program | | | |participation. Remaining | | | |funds allocated to the CA | | | |YMCA Youth and Government | | | |Program, whose board may | | | |award additional $10K annual | | | |grants to additional | | | |nonprofit civic youth | | | |organizations. The funds | | | |distributed to the CA YMCA | | | |Youth and Government Program | | | |are to be used for | | | |program-related expenses. | | | | | |-----------------------+----------+------------------------------| |CA Youth Leadership | Initial |1 group: Department of | |Fund | Tax |Education to provide for the | | | Return |CA Youth Leadership Project. | | | 2012 | | | | | | |-----------------------+----------+------------------------------| |CA Veterans Homes Fund | $210,078 |The number of established | CONTINUED AB 247 Page 5 | | |veteran's homes (7). | | | | | |-----------------------+----------+------------------------------| |Child Victims of Human | $35,317 |As many counseling and | |Trafficking Fund | |prevention centers that apply | | | |and receive grants provided | | | |from monies contributed. | | | | | |-----------------------+----------+------------------------------| |Emergency Food for | $551,515 |1 group: Department of Social | |Families Fund | |Services for the Emergency | | | |Food Assistance Program. | | | | | |-----------------------+----------+------------------------------| |Municipal Shelter | $244,701 |As many as apply and receive | |Spay-Neuter Fund | |grants provided from the | | | |monies contributed. | | | | | |-----------------------+----------+------------------------------| |Rare & Endangered | $558,681 |1 group: Department of Fish | |Species Preservation | |and Wildlife endangered | |Program | |conservation programs. | | | | | |-----------------------+----------+------------------------------| |Safely Surrendered | $158,645 |1 group: Department of Social | |Baby Fund | |Services for Safely Surrender | | | |Baby Law awareness programs. | | | | | |-----------------------+----------+------------------------------| |School Supplies for | Initial |As many as apply and receive | |Homeless Children Fund | Tax |grants provided for by the | | | Return |monies contributed. | | | 2012 | | | | | | |-----------------------+----------+------------------------------| |State Children's Trust | $376,243 |1 group: Department of Social | |for the Prevention of | |Services for prevention and | |Child Abuse | |intervention programs. | | | | | |-----------------------+----------+------------------------------| |State Parks Protection | Initial |As many as purchase a parks | |Fund/Parks Pass | Tax |pass that can be provided | |Purchase | Return |from the monies contributed. | | | 2012 | | CONTINUED AB 247 Page 6 | | | | ----------------------------------------------------------------- Comments This bill extends, for five years, the sunset deadline for the tax check off in support of the California Fund for Senior Citizens. Established in 1983, this tax check-off serves as the primary source of funds for the California Senior Legislature, which develops legislative proposals addressing access to affordable health care, elder abuse prevention, insurance consumer protection, community-based long-term care services and support. Over the past five years, the fund has collected over $1.46 million in donations. This bill temporarily extends the fund's lifespan on the tax check off form. Related legislation AB 394 (Yamada) extends the repeal date of the "California Alzheimer's Disease and Related Disorders Research Fund" tax check-off on the tax form from 2015 to 2020. AB 511 (Pan) creates the "American Red Cross, California Chapters Fund" check-off on the tax form. AB 754 (Muratsuchi) creates the "Protect Our Coast and Oceans Fund" check-off on the tax form. AB 1286 (Skinner) temporarily suspends the annual inflation adjustment for minimum contribution levels for the "California Breast Cancer Research Fund" check-off on the tax form. SB 116 (Liu) extends the repeal date for the "Emergency Food Assistance Program" check off on the tax form from 2014 to 2019. SB 571 (Price) creates the "Art for Kids Fund" check-off on the tax form. FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes Local: No According to the Senate Appropriations Committee, FTB estimates CONTINUED AB 247 Page 7 that this bill would result in an annual revenue loss of $10,000 (General Fund) beginning in 2016-17. Both FTB and the State Controller's Office would be reimbursed for related administrative costs. SUPPORT : (Verified 8/14/13) Alzheimer's Association Area 4 Agency on Aging California Assisted Living Association California Association for Health Services at Home California Association of Public Authorities California Commission on Aging California Long-Term Care Ombudsman Association California Senior Leaders Alliance California Senior Legislature California State Retirees Contra Costa County Advisory Council on Aging County Welfare Directors Association of California Older Women's League of California OPPOSITION : (Verified 8/14/13) Department of Finance ARGUMENTS IN SUPPORT : Supporters argue that the California Fund for Senior Citizens is the primary funding source for the California Senior Legislature (CSL) and its extension will allow them to continue to advocate on behalf of California's seniors and assures that the important work of the CSL continues. ARGUMENTS IN OPPOSITION : The Department of Finance opposes this bill for the following reasons, "This bill is of limited value as there is nothing currently preventing California taxpayers from contributing directly to this cause if they so choose. It is not clear that a special preference should be given to the organizations receiving the grant supported by this tax check-off, as compared to other organizations also dedicated to advocating legislation which would affect California's senior citizens. This bill could result in a $10,000 annual General Fund revenue loss beginning in 2016-17." ASSEMBLY FLOOR : 75-0, 5/13/13 CONTINUED AB 247 Page 8 AYES: Achadjian, Alejo, Atkins, Bigelow, Bloom, Blumenfield, Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian Calderon, Campos, Chau, Chávez, Chesbro, Conway, Cooley, Dahle, Daly, Dickinson, Donnelly, Eggman, Fong, Fox, Frazier, Beth Gaines, Garcia, Gatto, Gomez, Gordon, Gorell, Gray, Grove, Hagman, Hall, Harkey, Roger Hernández, Jones, Jones-Sawyer, Levine, Linder, Logue, Maienschein, Mansoor, Medina, Melendez, Mitchell, Morrell, Mullin, Muratsuchi, Nazarian, Nestande, Olsen, Pan, Patterson, Perea, V. Manuel Pérez, Quirk, Quirk-Silva, Rendon, Salas, Skinner, Stone, Ting, Torres, Wagner, Waldron, Weber, Wieckowski, Wilk, Williams, Yamada, John A. Pérez NO VOTE RECORDED: Allen, Ammiano, Holden, Lowenthal, Vacancy AB:nl 8/14/13 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END **** CONTINUED