BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session AB 437 (Atkins) - Research and Development: Small Business Grant Program. ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: July 13, 2015 |Policy Vote: GOV. & F. 6 - 0 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: No | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: August 27, 2015 |Consultant: Robert Ingenito | | | | ----------------------------------------------------------------- *********** ANALYSIS ADDENDUM - SUSPENSE FILE *********** The following information is revised to reflect amendments adopted by the committee on August 27, 2015 Bill Summary: AB 437 would permit qualified small businesses to convert research and development credits into cash grants. Fiscal Impact: The Franchise Tax Board (FTB) estimates that the previous version of the bill would result in General Fund revenue losses of $22 million in 2015-16, and $27 million in 2016-17. By delaying the implementation date one year, the revenue impacts would themselves be delayed by one year, and would likely be of similar magnitude. FTB estimates that the bill would result in one-time General Fund administrative costs of $664,000, related to the creation of the grant program. Ongoing costs would be AB 437 (Atkins) Page 1 of ? $344,000 annually, beginning in 2017-18. Author Amendments: Mitigate the risk of taxpayer fraud, delay the implementation date until January 1, 2017, and make technical changes. -- END --