BILL ANALYSIS Ó
AB 2497
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Date of Hearing: April 19, 2016
ASSEMBLY COMMITTEE ON AGING AND LONG-TERM CARE
Cheryl Brown, Chair
AB 2497
(Wagner) - As Amended April 13, 2016
SUBJECT: Voluntary contributions: California Senior Legislature
Fund: California Senior Citizen Advocacy Fund.
SUMMARY: Authorizes the addition of the California Senior
Citizen Advocacy Fund as a voluntary contribution fund on the
personal income tax return form to serve as the principle source
of funding for the California Senior Legislature. Specifically,
this bill:
1)Repeals the statutory authorization for the existing
California Senior Legislature Fund, which supports the work of
the California Senior Legislature.
2)Establishes the new Fund, the California Senior Citizen
Advocacy Fund, in the State Treasury, to which any individual
may designate a contribution in full-dollar amounts to support
the California Senior Legislature's (CSL) annual session and
ongoing activities.
3)Provides that the Fund is the successor fund of the California
Senior Legislature Fund.
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4)Requires the individual tax form to include space for the
California Senior Citizen Advocacy Fund to allow individuals
to contribute.
5)Permits contributions made to the California Senior Citizen
Advocacy Fund to be treated as a deduction.
6)Renames and creates the California Senior Citizen Advocacy
Fund within the state treasury to serve as the successor fund
to the California Senior Legislature Fund.
7)Directs the California Senior Citizen Advocacy Fund, to
reimburse the Franchise Tax Board and the Controller for costs
incurred by the Franchise Tax Board and the Controller for
administration of the fund.
8) Authorizes unspent funds to be carried-over from year to
year.
9)Requires the Joint Rules Committee of the California Senior
Legislature (CSL) to direct fund expenditures in a manner
consistent with the bylaws of the CSL, established by a
majority vote of the members of the CSL.
10) Provides that the Fund's statutory provisions shall remain
in effect only for taxable years beginning before January 1,
2021, and will sunset and repeal as of December 1, 2021.
11)Establishes a minimum contribution requirement of $250,000 in
the Fund's second year and provides that in subsequent years
the minimum contribution amount will be indexed for inflation.
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12)Beginning in September of 2017 and on an annual basis the
Franchise Tax Board shall determine the minimum contribution
amount necessary for the fund to appear on the tax return for
the taxable year and shall report this amount to the
California Senior Legislature.
13)Provides an estimate of contributions during the calendar
year and if they will be equal to, or exceed, the minimum
amount required to remain on the form.
14)Eliminates the fund if contributions are estimated to be
below minimum levels established by the Franchise Tax board
during the tax year following the third tax year after the
fund is established (2020).
EXISTING LAW:
1)Establishes the California Senior Legislature, comprised of
two houses, with 80 and 40 members, each member serving
four-year terms, elected or appointed, in all 33 Area Agencies
on Aging, according to rules developed by the California
Senior Legislature in cooperation with the California
Association of Area Agencies on Aging.
2)Finds and declares that senior citizens can best assess the
needs of senior citizens for public programs in health, social
services, recreation, transportation, education, housing,
cultural services, and other appropriate areas of service.
3)States that the California Senior Legislature has been
effective in providing model legislation for older citizens
and advocating for the needs of seniors.
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4)Grants the California Senior Legislature full authority to
define its program and utilize its funds in any way necessary
to carry out the organizational duties.
5)Requires that funds for the California Senior Legislature be
allocated from the California Senior Legislature Fund, or from
private funds directed to CSL, for the purpose of funding
activities of the California Senior Legislature.
6)Permits the California Senior Legislature to accept grants
from any source, public or private, to help perform its
functions.
7)Requires each voluntary contribution fund (VCF) to meet an
annual minimum contribution amount to remain in effect, except
for the California Firefighters' Memorial Fund, the California
Peace Officer Memorial Foundation Fund, and the California
Seniors Special Fund.
FISCAL EFFECT: Unknown
COMMENTS:
Author's Statement: "AB 2497 would re-name the contribution fund
from the California senior Legislature Fund to the "California
Senior Citizen Advocacy Fund" to more accurately portray the
mission of the organization, and to remove the stigma of being
associated with the State Legislature. This name change would
provide for the retention on the Franchise Tax Board's Form 540,
and thus allow the marketing and promotional efforts to continue
to be pursued. Renaming the California Senior Legislature Fund
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is the simplest method to prevent removal from the Franchise Tax
Board's Form 540, and allows the California Senior Legislature
to rebuild their primary source of funding."
Background: The California Senior Legislature (CSL) is a
volunteer organization which advocates for priorities to support
senior citizens. The CSL pursues its priorities by way of model
legislation to present to members of the State Legislature and
Congress. Traditionally, the CSL meets in a mock legislative
session every fall - this year made impossible with plummeting
funds.
The CSL was created in 1979 by legislation authored by
then-Assembly Member Henry Mello. Volunteers are 60 years and
older, elected by their peers. The CSL is organized into two
committees, the Joint Rules Committee which provides for the
governance, and the Legislative Committee which directs advocacy
activities related to CSL priorities.
CSL has seen over 200 proposals authored by legislators and
proposed into legislation. Key policy achievements include
advances in Alzheimer's disease treatment and programs, and
improved care in long-term care facilities, as well as expanded
consumer protections addressing the prevention of elder abuse,
identity theft, gender discrimination, and reverse mortgage
fraud.
CSL Funding: For 35 years, CSL funding derived from taxpayer
contributions. Taxpayers can contribute to voluntary
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contribution funds (VCFs) by checking a box and designating an
amount on their state income tax returns. VCF contributions may
then be claimed as charitable contributions on taxpayers' tax
returns in the subsequent year. Legislation is necessary to add
a VCF to the tax return, and is repealed by a sunset date or
failure to generate a required minimum contribution amount. The
minimum contribution amount for most VCFs is $250,000, beginning
in the fund's second year. The Franchise Tax Board (FTB)
determines the minimum contribution amount required for each VCF
to remain on the form and also whether contributions to each VCF
meet that amount. There are 3 exceptions to the minimum level
which include the California Firefighters' Memorial Foundation
Fund, the California Peace Officer Memorial Foundation Fund,
and, the California Seniors Special Fund which supports the
Triple-A Council of California by accepting surrendered senior
tax credits by those eligible for that credit. The CSL Fund has
not always been subject to a minimum amount. In 1999 the Fund's
sunset date was extended and a minimum contribution requirement
of $250,000 was created.
Contributions: In 2014, for the first time contributions fell
below the mandatory minimum and was dropped from the form.
Legislation enacted in 2014 renamed the Fund to the "California
Senior Legislature Fund." Contributions plummeted to less than
25% of previous average contribution amounts. Due to the loss
of funds, CSL has been forced to eliminate important advocacy
activities, suspended its annual session, and reduced staff. AB
2497 is an attempt to re-constitute the organization by
returning the fund to its original title.
Arguments in Support: Individuals writing in support of AB 2497
state that "4.3 million individual age 65 and over are expected
to nearly triple to 12.4 million by 2060. With these numbers,
it is imperative that the CSL continue to inform the Legislature
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of key issues affecting California seniors." They cite many
legislative proposals resulting in state laws that have
contributed to improved lives of older people and others in
California.
Arguments in Opposition: None
Related Legislation
SB 1249 (Alquist), Chapter 645, Statutes of 2006 removes the
annual inflation factor adjustment on the minimum tax
contributions for the California Fund for Senior Citizens, and
reduces and fixes the minimum contribution threshold amount in
order for the checkoff to remain on the tax return at $250,000.
SB 997 (Morrell), Chapter 248, Statutes of 2014 repealed
authorization for the California Fund for Senior Citizens, which
supported work of the California Senior Legislature, and
authorized the creation of a new California Senior Legislature
Fund as a voluntary contribution fund on the personal income tax
return for taxable years beginning on or after January 1, 2014.
REGISTERED SUPPORT / OPPOSITION:
Support
Numerous individuals.
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Opposition
None on file.
Analysis Prepared by:Gail Gronert / AGING & L.T.C. / (916)
319-3990