BILL ANALYSIS Ó
AB 2497
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Date of Hearing: May 11, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
AB
2497 (Wagner) - As Amended April 26, 2016
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|Policy |Revenue and Taxation |Vote:|9 - 0 |
|Committee: | | | |
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| |Aging and Long Term Care | |6 - 0 |
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Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY:
This bill replaces the existing California Senior Legislature
Fund with the California Senior Citizen Advocacy Fund (Fund) as
a voluntary contribution fund (VCF) on the personal income tax
return for taxable years beginning on or after January 1, 2016,
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and before January 1, 2021. Specifically, this bill:
1)Repeals the statutory authorization for the existing
California Senior Legislature Fund, which supports the work of
the California Senior Legislature, and provides that the Fund
is the successor fund of the California Senior Legislature
Fund.
2)Requires that all money transferred to the Fund, upon
appropriation by the Legislature, will be allocated as
follows:
a) To the Franchise Tax Board (FTB) and the State
Controller for reimbursement of all costs incurred in
administering the Fund; and,
b) California Senior Legislature, for its ongoing
activities on behalf of older persons.
3)Provides that the funds allocated to the California Senior
Legislature shall be spent pursuant to the purview of the
Joint Rules Committee of the California Senior Legislature in
a manner consistent with the bylaws of the California Senior
Legislature, established through a majority vote of the
California Senior Legislature.
4)Requires the Fund to meet a standard minimum contribution
requirement of $250,000 in its second year. Thereafter, the
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minimum contribution amount will be indexed for inflation.
FISCAL EFFECT:
1)Minor ongoing GF revenue losses of up to $15,000 per year
resulting from itemized taxpayer deductions.
2)Minor and absorbable administrative costs for the FTB.
COMMENTS:
1)Purpose. According to the author, 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.
2)Background. Current state tax law allows taxpayers to make
contributions on their tax returns to a number of VCFs. Like
many other VCFs, AB 2497 would require the Fund to meet a
current minimum contribution amount to return on state tax
returns ($250,000, indexed to inflation after the second
year). Traditionally, because this VCF is dedicated to one
organization, there has not been an administrating agency as
has been common practice with new VCFs. However, Joint Rules
oversees Fund expenses.
3)The California Senior Legislature. According to its website,
the California Senior Legislature is a "volunteer body whose
primary mission is to gather ideas for legislation at the
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state and federal levels, craft the ideas into formal
proposals, prioritize the proposals, present them to members
of the Legislature or the Congress, and advocate for laws
implementing the ideas."
The website also notes that group has three major sources of
funding: individual contributions, an annual membership group
called "Friends of the CSL," and donations via the VCF. Unlike
some other VCF causes, this group is nearly entirely reliant
on VCF donations.
Currently, the ongoing work of the California Senior
Legislature is supported by contributions to the existing
California Senior Legislature Fund. Before the enactment of
SB 997 (Morrell), Chapter 248, Statutes of 2014, the
California Senior Legislature was supported by another VCF
called the "California Fund for Senior Citizens".
4)Funding history. The California Senior Legislature has
historically been funded by the California Fund for Senior
Citizens. In 2014, following a gradual decline in donated
funds, the fund was renamed to the California Senior
Legislature Fund. However, that fund experienced a steep
decline in donations, perhaps in part because the name change
made the group less sympathetic to potential donors. The
funding history, and the corresponding name of the fund, is as
follows:
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a) California Fund for Senior Citizen:
i. 2010: $296,144
ii. 2011: $308,763
iii. 2012: $272,742
iv. 2013: $234,247
v. 2014: $229,522
b) California Senior Legislature Fund:
i. 2015: $60,137
1)New VCF Bills in 2016. Four Assembly bills were introduced in
2016 that would either extend existing VCFs or create new
ones. In addition to AB 2497, those bills are:
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a) AB 1789 (Santiago), also on today's Committee agenda,
extends the voluntary contribution for the School Supplies
for Homeless Children Fund.
b) AB 2430 (Beth Gaines), also on today's Committee agenda,
adds a voluntary contribution for the Type 1 Diabetes
Research Fund.
c) AB 2371 (Frazier), also on today's Committee agenda,
adds a voluntary contribution for the Special Olympics
Fund.
Analysis Prepared by:Luke Reidenbach / APPR. / (916)
319-2081