BILL ANALYSIS Ó
AB 394
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Date of Hearing: April 10, 2013
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
AB 394 (Yamada) - As Introduced: February 15, 2013
Policy Committee: Revenue and
Taxation Vote: 9-0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill extends the repeal date of the income tax return
check-off for the California Alzheimer's Disease and Related
Disorders Research Fund from January 1, 2015, to December 1,
2020, allowing the fund to remain on the state personal income
tax return through the 2019 taxable year, provided donations
from taxpayers meet the required annual minimum.
FISCAL EFFECT
The FTB staff estimates annual GF revenue losses of roughly
$10,000 from taxpayers deducting charitable contributions,
beginning in the 2016-17 fiscal year.
COMMENTS
1)Purpose. The author states that almost 600,000 Californians
55 and over are diagnosed with Alzheimer's disease. The
author notes that among California's baby boomers aged 65 and
over, one in eight will develop Alzheimer's disease, and half
of people 85 or older will have the disease. Alzheimer's
disease is now the sixth leading cause of death in California
and is the only leading cause of death that lacks a means of
prevention or reversal, according to the author. The author
states that the check-off funds are distributed by a
competitive grant process which enables scientists to
establish credibility for their research concepts and helps
them be competitive for National Institute of Health research
grants.
2)Voluntary Contribution Funds. California taxpayers can make
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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
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. Except for the
California Seniors Special Fund, all have sunset dates, and
most, including the California Alzheimer's Disease and Related
Disorders Research Fund, must meet a minimum annual
contribution to remain on the tax form.
3)Background . The California Alzheimer's Disease and Related
Disorders Research Fund was created in 1986 by SB 214 (Mello),
Chapter 944, Statutes of 1987. The sunset date has been
extended four times. The check-off has collected
approximately $500,000 annually over the last four years, well
exceeding the minimum required to remain on the form.
4)Related Legislation .
a) AB 247 (Wagner) extends the repeal date of the
California Fund for Senior Citizens until December 1, 2020.
AB 247 has been referred to Assembly Revenue and Taxation
Committee.
b) AB 511 (Pan) establishes and allows taxpayers to make
voluntary contributions to the American Red Cross,
California Chapters Fund. AB 511 has been referred to this
Committee.
c) AB 754 (Muratsuchi) establishes and allows taxpayers to
make voluntary contributions to the California Beach and
Coastal Enhancement Account. AB 754 has been referred to
Assembly Revenue and Taxation 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,
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2019. SB 116 has been referred to the Senate Committee on
Governance and Finance.
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.
Analysis Prepared by : Roger Dunstan / APPR. / (916) 319-2081