BILL ANALYSIS Ó
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2015 - 2016 Regular Session
AB 2497 (Wagner) - Voluntary contributions: California Senior
Legislature Fund: California Senior Citizen Advocacy Fund
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|Version: June 30, 2016 |Policy Vote: GOV. & F. 7 - 0 |
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|Urgency: No |Mandate: No |
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|Hearing Date: August 1, 2016 |Consultant: Robert Ingenito |
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This bill does not meet the criteria for referral to the
Suspense File.
Bill
Summary: AB 2497 would (1) repeal the California Senior
Legislature Fund, and (2) authorize in its place the addition of
the California Senior Citizen Advocacy Fund check-off to the
personal income tax return.
Fiscal
Impact:
The Franchise Tax Board (FTB) estimates that, beginning
in 2017- 18, this bill would result in an annual revenue
loss of $8,000 (General Fund) for every $250,000
contributed by itemizing taxpayers.
The State Controller's Office (SCO) and FTB and would be
reimbursed for related administrative costs.
AB 2497 (Wagner) Page 1 of
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Background: Current law allows taxpayers to contribute money to one or more
of 19 voluntary contribution funds during the process of filing
their state income tax return (VCF). These contributions are
made from taxpayers' own resources, not from their tax
liability, as is the case with federal tax returns. Check-off
amounts are deductible as charitable contributions on taxpayers'
returns during the subsequent tax year. With some exceptions,
each voluntary contribution fund has a sunset date and is
required to meet a minimum contribution amount of $250,000,
adjusted annually for inflation.
The California Senior Legislature (CSL) is a volunteer body
whose primary mission is to gather ideas for legislation at the
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 entity 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.
Proposed Law:
This bill would repeal the California Senior Legislature Fund
and add the California Senior Citizen Advocacy Fund (Fund). It
would allow a taxpayer to make a voluntary contribution to the
Fund on the state personal income tax return. The bill would
require the Fund to meet a minimum contribution threshold of
$250,000 in the second calendar year the Fund appears on the tax
form, and the amount is indexed yearly for inflation.
Additionally, the bill would provide that all money transferred
to the Fund, upon appropriation by the Legislature, be allocated
as follows: (1) to FTB and the State Controller for
reimbursement of all costs incurred in administering the VCF,
and (2) to the California Senior Legislature, for its ongoing
activities on behalf of older persons.
The bill would sunset on January 1, 2021.
AB 2497 (Wagner) Page 2 of
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Related
Legislation: SB 1476 (Committee on Governance and Finance) would
establish general provisions for voluntary contribution funds.
Specifically, the bill would (1) establish a seven-year sunset,
(2) require a minimum contribution amount of $250,000 beginning
in the fund's second year, and each year thereafter, requires
funds to be continuously appropriated, and (3) require
administering agencies to post information online about the use
of the funds. SB 1476 is currently awaiting action by the full
Assembly.
Staff
Comments: The California Senior Legislature Fund first appeared
on the 1983 tax return. The Fund's name was changed in 1994, and
again in 2014. Specifically, SB 997 (Morrell, Chapter 248,
Statutes of 2014) repealed the California Fund for Senior
Citizens and established the California Senior Legislature Fund.
Annual contribution to the Fund and its predecessor have
declined during the past four taxable years, totaling 234,247 in
2013, $229,522 in 2014, $60,137 in 2015, and $59,422 in 2016 (a
preliminary figure).
FTB data indicate that in 2012, 89,335 out of 15 million
taxpayers contributed a total of $4.8 million via tax
check-offs. The tax check-off program typically collects $4-5
million in annual contributions for all VCFs.
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