BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 394|
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THIRD READING
Bill No: AB 394
Author: Yamada (D), et al.
Amended: 4/18/13 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 : 78-0, 4/22/13 - See last page for vote
SUBJECT : Personal income tax: voluntary contributions:
Alzheimers disease
SOURCE : Alzheimers Association
DIGEST : This bill extends from 2015 until 2020 the California
Alzheimers Disease and Related Disorders Research Fund check-off
on the personal 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 made through check-offs 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 charitable contributions on taxpayers' tax returns in
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the subsequent year.
This bill extends from January 1, 2015, the current expiration
date, until January 1, 2020, the California Alzheimer's Disease
and Related Disorders Research Fund check-off on the tax form.
This bill maintains all the existing requirements for the
program including the annual reporting by September 1st 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the return until they are either repealed by a sunset date, or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.
Proceeds from tax check-offs are dedicated to a range of
programs. The following list provides information on all the
check-offs as well as how many groups are eligible to receive
funding. Some of the funds have been repealed by their own
terms.
----------------------------------------------------------
|Voluntary | 2012 | Contribution Allotment |
|Contribution Fund |Contribution| |
| | Totals | |
|-------------------+------------+-------------------------|
|ALS/Lou Gehrig's | $137,290 |As many as apply and |
|Disease Research | |receive grants provided |
|Fund | |for by the monies |
| | |contributed. |
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|-------------------+------------+-------------------------|
|Alzheimer's | $466,485 |As many as contract or |
|Disease/Related | |receive grants provided |
|Disorders Fund | |by 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 |
|Research Fund | |receive grants provided |
| | |from the monies |
| | |contributed. |
|-------------------+------------+-------------------------|
|CA Cancer Research | $432,355 |As many as apply and |
|Fund | |receive 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 |
|Citizens | |Senior Legislature. |
|-------------------+------------+-------------------------|
|CA Peace Officer | $136,172 |1 Group: California |
|Memorial | |Peace Officer Memorial |
|Foundation Fund | |Commission. |
|-------------------+------------+-------------------------|
|CA Police | $67,202 |The state CALPAL and |
|Activities League | |county CALPAL chapters. |
|(CALPAL) Fund | | |
|-------------------+------------+-------------------------|
|CA Sea Otter Fund | $351,037 |Department of Fish and |
| | |Wildlife, and as many as |
| | |apply for grants and |
| | |contracts provided for |
| | |by 50% of contributions. |
|-------------------+------------+-------------------------|
|CA Seniors Special | $61,315 |The first $80K to the |
|Fund | |Area Agency on Aging |
| | |Advisory Council of |
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| | |California and the rest |
| | |to area agencies as |
| | |allocated by the |
| | |California Department of |
| | |Aging. |
|-------------------+------------+-------------------------|
|CA YMCA Youth and |Initial Tax |The first $300K to the |
|Government Fund |Return 2012 |CA YMCA Youth and |
| | |Government Program. The |
| | |rest is 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 |Initial Tax |1 group: Department of |
|Leadership Fund |Return 2012 |Education to provide for |
| | |the CA Youth Leadership |
| | |Project. |
|-------------------+------------+-------------------------|
|CA Veterans Homes | $210,078 |The number of |
|Fund | |established veteran's |
| | |homes (7). |
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|-------------------+------------+-------------------------|
|Child Victims of | $35,317 |As many counseling and |
|Human Trafficking | |prevention centers that |
|Fund | |apply and receive grants |
| | |provided from monies |
| | |contributed. |
|-------------------+------------+-------------------------|
|Emergency Food for | $551,515 |1 group: Department of |
|Families Fund | |Social Services for the |
| | |Emergency Food |
| | |Assistance Program. |
|-------------------+------------+-------------------------|
|Municipal Shelter | $244,701 |As many as apply and |
|Spay-Neuter Fund | |receive grants provided |
| | |from the monies |
| | |contributed. |
|-------------------+------------+-------------------------|
|Rare & Endangered | $558,681 |1 group: Department of |
|Species | |Fish and Wildlife |
|Preservation | |endangered conservation |
|Program | |programs. |
|-------------------+------------+-------------------------|
|Safely Surrendered | $158,645 |1 group: Department of |
|Baby Fund | |Social Services for |
| | |Safely Surrender Baby |
| | |Law awareness programs. |
|-------------------+------------+-------------------------|
|School Supplies |Initial Tax |As many as apply and |
|for Homeless |Return 2012 |receive grants provided |
|Children Fund | |for by the monies |
| | |contributed. |
|-------------------+------------+-------------------------|
|State Children's | $376,243 |1 group: Department of |
|Trust for the | |Social Services for |
|Prevention of | |prevention and |
|Child Abuse | |intervention programs. |
|-------------------+------------+-------------------------|
|State Parks |Initial Tax |As many as purchase a |
|Protection |Return 2012 |parks pass that can be |
|Fund/Parks Pass | |provided from the monies |
|Purchase | |contributed. |
| | | |
----------------------------------------------------------
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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.
Comments
This bill extends, for five years, the sunset deadline for the
tax check-off in support of the "California Alzheimer's Disease
and Related Disorders Research Fund." Established in 1987, this
tax check-off has raised $11.3 million dollars from 1.3 million
tax payers, averaging $14.18 per person, to fund 122 research
studies on the cause, diagnosis, treatment, prevention and care
of people living with Alzheimer's and related dementias. The
Alzheimer's Disease Program in the Department of Public Health
(DPH) distributes tax check-off funds to California researchers
through a competitive grant process, which enables them to gain
creditability, funding, and competitive position to receive
further funding from other entities. This bill temporarily
extends the fund's lifespan on the tax check-off form.
Related Legislation
Assembly Bill 247 (Wagner) extends the repeal date for the
California Fund for Senior Citizens tax check-off on the tax
form from 2015 to 2020.
Assembly Bill 511 (Pan) creates the American Red Cross,
California Chapters Fund check-off on the tax form.
Assembly Bill 754 (Muratsuchi) creates the Protect Our Coast and
Oceans Fund check-off on the tax form.
Assembly Bill 1286 (Skinner) temporarily suspends the annual
inflation ad-justment for minimum contribution levels for the
California Breast Cancer Research Fund check-off on the tax
form.
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Senate Bill 116 (Liu) extends the repeal date for the Emergency
Food Assis-tance Program check off on the tax form from 2014 to
2019.
Senate Bill 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, the FTB
estimates that this bill will result in an annual revenue loss
of $10,000 (General Fund) beginning in 2016-17. Both FTB and
the State Controller's Office will be reimbursed for related
administrative costs.
SUPPORT : (Verified 8/13/13)
Alzheimer's Association (source)
AARP
California Assisted Living Association
California Association for Health Services at Home
California Association of Area Agencies on Aging
California Commission on Aging
California Long-Term Care Ombudsman Association
Human Services Department County of Sonoma
Leading Age California
On Lock Senior Health Services
University of California
OPPOSITION : (Verified 8/13/13)
Department of Finance
ARGUMENTS IN SUPPORT : According to the author's office, a
report by the DPH reveals there are 588,208 Californians 55 and
over living with Alzheimer's disease which is one-tenth of the
nation's Alzheimer's patients. 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. By 2030,
this number will nearly double in California; rising to over 1.1
million. Alzheimer's disease is now the sixth leading cause of
death in California and is the only leading cause of death that
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lacks a means of prevention or reversal.
While the burden of care falls primarily on families, the rapid
growth in the prevalence of Alzheimer's will cause California's
healthcare costs to rise significantly. The Medi-Cal program
cost for an individual with Alzheimer's disease or a related
dementia is 3 times greater than the cost for an individual not
having a diagnosis of dementia.
Contributions from the Alzheimer's tax check-off have funded 122
research studies on the cause, diagnosis, treatment, prevention
and care of people living with Alzheimer's and related
dementias. Only through ongoing support of this research can we
develop the medical advances necessary to continue the fight
against this devastating disease.
ARGUMENTS IN OPPOSITION : The Department of Finance opposes
this bill for the following reason:
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, a compared to other organizations also dedicated
to supporting the research related to the cause, prevention,
diagnosis, and treatment of other diseases.
This bill could result in a $10,000 annual General fund
revenue loss beginning in 2016-17.
ASSEMBLY FLOOR : 78-0, 4/22/13
AYES: Achadjian, Alejo, Allen, Ammiano, 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, Holden,
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,
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Williams, Yamada, John A. Pérez
NO VOTE RECORDED: Lowenthal, Vacancy
AB:d 8/14/13 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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