BILL ANALYSIS �
SB 116
Page 1
Date of Hearing: July 3, 2013
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
SB 116 (Liu) - As Amended: June 12, 2013
Policy Committee: Revenue and
Taxation Vote: 9-0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill extends the effective date of the income tax return
check-off for the Emergency Food Assistance Program from January
1, 2014 to January 1, 2019, provided donations from taxpayers
meet the required annual minimum.
FISCAL EFFECT
The FTB estimates annual GF revenue losses of about $10,000 from
taxpayers deducting charitable contributions, beginning in the
2016-17 fiscal year.
COMMENTS
1)Purpose. According to the author, SB 116 allows Californians
to continue fighting hunger by contributing to the fund with a
check-off on their state income tax returns. The fund sunsets
in 2014. This bill extends the sunset date until 2019 for
contributions for the Emergency Food for Families check-off
fund.
The author argues this check-off is important because
California provides no public funding for emergency food,
unlike many other states. The author notes this check-off has
been successful, raising more than $500,000 per year in
private funds for food purchases by food banks.
2)Support . Proponents, including the California Association of
Food Banks, note food banks across the state have seen an
unprecedented increase in requests for assistance since 2008,
and the food lines are not getting any shorter. They argue
SB 116
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food banks and charitable agencies play an increasingly
important role in fighting hunger in the current context of
food hardship, low CalFresh participation and recent cuts to
safety net programs at the state and federal level.
Supporters also note California provides no public funding for
this emergency food network and in tight budget times, the
Emergency Food for Families Fund represents an easy way for
the state to encourage private contributions to help food
banks keep up with growing requests for assistance.
3)Voluntary Contribution Funds. California taxpayers can make
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. Most have sunset
dates and must meet a minimum annual contribution to remain on
the tax 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 the Senate Governance and
Finance Committee.
b) AB 394 (Yamada) extends the repeal date of the
California Alzheimer's Disease and Related Disorders
Research Fund from January 1, 2015, to December 1, 2020.
AB 394 has been referred to the Senate Governance and
Finance Committee.
c) 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 the
Senate Governance and Finance Committee.
d) AB 754 (Muratsuchi) would allow taxpayers to make
voluntary contributions on their state personal income tax
returns to the California Beach and Coastal Enhancement
Account, established by the bill. AB 754 has been referred
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to the Senate Governance and Finance Committee.
e) 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
the Senate Governance and Finance Committee.
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 Assembly Revenue and Taxation Committee.
5)There is no registered opposition to this bill.
Analysis Prepared by : Roger Dunstan / APPR. / (916) 319-2081