BILL ANALYSIS                                                                                                                                                                                                    



                                                                  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