BILL ANALYSIS Ó
AB 511
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Date of Hearing: April 17, 2013
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
AB 511 (Pan) - As Amended:
April 9, 2013
Policy Committee: Revenue and
Taxation Vote: 9-0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill establishes the American Red Cross, California
Chapters Fund, and allows taxpayers to donate their own money
through a designation on the state personal income tax return.
Specifically, this bill:
1)Establishes the fund in the State Treasury and provides that
all moneys transferred to the fund, upon appropriation by the
Legislature, shall be allocated:
a) To the Franchise Tax Board (FTB) and the State
Controller for reimbursement of all administrative costs
and to the Office of Emergency Services
b) To the Office of Emergency Services (OES) which will
disburse the funds to the American Red Cross, California
Chapters for disaster relief in California.
2)Repeals these provisions on either January 1 of the fifth
taxable year following the Fund's first appearance on the
state personal income tax return or on January 1 of an earlier
year, if the FTB estimates the annual contribution amount does
not meet the minimum required by the bill. That amount is
$250,000 initially and an amount adjusted for inflation in
subsequent years.
FISCAL EFFECT
The FTB staff estimates annual revenue losses of roughly $10,000
resulting from itemized charitable deductions beginning in
AB 511
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fiscal year 2014-15.
COMMENTS
1)Purpose . The author states the American Red Cross is
typically the non-governmental organization first on the scene
of a declared disaster providing relief and immediate
assistance to victims. The author notes the American Red
Cross is also usually the last to leave in the aftermath, as
the organization and its volunteers strive to assist the
families and businesses ravaged by the disaster. As the
author points out, Californians unfortunately experience wild
fires, earthquakes, flooding and other natural disasters on a
too-frequent basis, but home fires are actually the biggest
disaster threat to people in this state. The author concludes
AB 511 would help ensure that adequate funds are available
when the American Red Cross is called to respond to a declared
disaster.
2)Support. The bill's sponsor, the American Red Cross,
California Chapters, notes the American Red Cross responded to
2,728 local disaster incidents in California during 2012. A
total of 6,342 California families received disaster
assistance following local disasters in 2012. They report
that California has 32 chapters within our state, with almost
30,000 volunteers and over 800 employees. The sponsor also
notes New Jersey, Colorado, Idaho and Louisiana have enacted
laws in recent years encouraging voluntary contributions for
the American Red Cross on their respective income tax forms,
while other states are also pursuing measures of this type.
3)Related legislation .
a) AB 247 (Wagner) would extend 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 394 (Yamada) would extend the repeal date of the
California Alzheimer's Disease and Related Disorders
Research Fund from January 1, 2015, to December 1, 2020.
AB 394 is on the Assembly floor.
c) AB 754 (Muratsuchi) would establish and allow taxpayers
to make voluntary contributions on their state personal
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income tax returns to the California Beach and Coastal
Enhancement Account. AB 754 has been referred to Assembly
Revenue and Taxation Committee.
d) AB 1286 (Skinner) would suspend 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) would extend the repeal date of the
Emergency Food for Families Fund from January 1, 2014, to
January 1, 2019. SB 116 has been referred to the Senate
Committee on Governance and Finance.
f) SB 571 (Price) would establish and allow 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