BILL ANALYSIS
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|SENATE RULES COMMITTEE | AB 1799|
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THIRD READING
Bill No: AB 1799
Author: Mullin (D) & Bates (R), et al
Amended: 6/21/04 in Senate
Vote: 21
SENATE REVENUE & TAXATION COMMITTEE : 4-0, 6/9/04
AYES: Cedillo, Poochigian, Burton, Hollingsworth
NO VOTE RECORDED: Alpert, Ashburn, Bowen
SENATE APPROPRIATIONS COMMITTEE : 7-0, 6/28/04
AYES: Battin, Aanestad, Karnette, Machado, Murray,
Poochigian, Speier
NO VOTE RECORDED: Alpert, Ashburn, Bowen, Burton, Escutia,
Johnson
ASSEMBLY FLOOR : 70-0, 4/29/04 - See last page for vote
SUBJECT : Income tax: Alzheimers Disease Tax Checkoff
SOURCE : California Alzheimers Association
DIGEST : This bill extends the sunset date on the
California Alzheimers Disease and Related Disorders
Research Fund (Fund) income tax checkoff from January 1,
2005 to January 1, 2010, provided the fund receives at
least a specified, minimum level of contributions annually.
ANALYSIS : Existing law allows taxpayers to contribute
money to one or more of 11 voluntary contribution funds by
checking a box on their state income tax return.
California law requires contributions made through
CONTINUED
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checkoffs to be made from taxpayers' own resources (not
from their tax liability, as is possible on federal tax
returns). Checkoff amounts may be claimed as charitable
contributions on taxpayers' tax returns during the
subsequent year.
This bill extends the sunset date for the Alzheimer's
disease income tax checkoff from January 1, 2005 to January
1, 2010 and updates legislative findings related to
statistical information about Alzheimer's and other
dementia related diseases, including the number of people
affected and the cost of caring for people afflicted by
these diseases.
This bill is sponsored by the author and is intended to
allow the Fund to remain on the income tax form beyond the
2004 tax year. This income tax checkoff fund provides
money for research grants related to the care, treatment,
and the cure of Alzheimer's disease. Money contributed
using the checkoff is distributed by the Secretary of the
Health and Welfare Agency, in consultation with the State
Department of Aging.
The Fund checkoff first appeared on the income tax form in
1987. Since that time, its sunset date has been extended
twice. The Alzheimer's checkoff is typically one of the
more popular checkoffs on California's tax form. In
2002-03, the last fiscal year for which contribution
information is available, the Alzheimer's checkoff received
approximately $544,000 in contributions, fourth highest
among the 11 checkoffs on the return.
According to the author's office, from 1988-2003, the
Alzheimer's Disease checkoff has collected $6,785,993,
averaging more than $424,000 annually. Funds are
distributed through grants awarded by the Director of the
State Department of Health Services through a competitive
process utilizing technical review panels. Contributions
have funded 101 research studies on the cause, diagnosis,
treatment, and care of Alzheimer's and other dementia
disorders. All awards are to scientists based at
California public or private nonprofit organizations.
The checkoffs currently listed on the income tax return
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raise between $3.4-$3.9 million per year from approximately
140,000 taxpayers. The following is the amount of revenue
generated by the existing checkoffs for 2003 (the Mission
Fund data is for 2004):
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| Fund | Volume | Amount |
| | | |
|--------------------------------+---------------+------------|
|California Seniors Special Fund | $ 1,135 | $ 58,041 |
|--------------------------------+---------------+------------|
|Alzheimer's Disease/Related | 51,998 | 571,457 |
|Disorders Fund | | |
|--------------------------------+---------------+------------|
|California Fund for Senior | 38,123 | 296,087 |
|Citizens | | |
|--------------------------------+---------------+------------|
|Rare and Endangered Species | 55,827 | 673,981 |
|Preservation | | |
|--------------------------------+---------------+------------|
|State Children's Task Fund | 62,403 | 674,783 |
|--------------------------------+---------------+------------|
|California Breast Cancer | 58,570 | 646,664 |
|Research Fund | | |
|--------------------------------+---------------+------------|
|California Firefighters' | 28,688 | 206,112 |
|Memorial Fund | | |
|--------------------------------+---------------+------------|
|Emergency Food Assistance | 39,842 | 395,003 |
|Program Fund | | |
|--------------------------------+---------------+------------|
|California Peace Officer | 24,302 | 179,444 |
|Memorial | | |
| Foundation | | |
|--------------------------------+---------------+------------|
|Asthma and Lung Disease | 31,016 | 216,390 |
|Research Fund | | |
|--------------------------------+---------------+------------|
|California Missions Foundation | 3,039 |22,124 |
|Fund | | |
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Currently, the state tax return has enough lines to hold 12
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tax checkoffs.
Legislative History
There have been a number of bills related to the
Alzheimer's checkoff, as follows:
AB 160 (Alquist), Chapter 315, Statutes of 1999 . Extended
the operation of the California Alzheimer's Disease and
Related Research Fund to January 1, 2005.
SB 1447 (Alquist), Chapter 494, Statutes of 1996 . Extended
the repeal date of the Alzheimer's Disease Fund from
January 1, 1997 to January 1, 2000.
SB 214 (Mello), Chapter 944, Statutes of 1987 . Enacted the
California Alzheimer's Disease and Related Research Fund
that appeared on the return from January 1, 1999.
Related Legislation
SB 1736 (Bowen), 2003-04 Session . Changes the system for
tax checkoff placement in the tax booklet. (Failed passage
in Senate Revenue and Taxation Committee)
AB 658 (Nakano), 2003-04 Session . Changes the system for
checkoff placement in the tax booklet. (Failed passage in
Senate Revenue and Taxation Committee.
AB 1283 (Kehoe) -- 2003-04 Session . Creates a checkoff for
the California Arts Council.
AB 1799 (Mullin) -- 2003-04 Session . Extends the
Alzheimer's checkoff sunset day from 2005 through 2010.
AB 1928 (Parra) -- 2003-04 Session . Creates a checkoff
for a new California Military Family Relief Fund to provide
money to reservists or members of the National Guard who
are called up to duty.
AB 1994 (Berg) -- 2003-04 Session . Modifies the allocation
of money for the senior funds.
AB 2346 (Corbett) -- 2003-04 Session . Creates a checkoff
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for a new Police Activities Fund.
AB 2886 (Corbett) -- 2003-04 Session . Creates a checkoff
for a new Drug Abuse Resistance Education (D.A.R.E.) Fund.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 6/29/04)
California Alzheimer's Association (source)
Alzheimer's Research Center of California
California Council on Alzheimer's
California Senior Legislature
California Commission on Aging
Gray Panthers
ASSEMBLY FLOOR :
AYES: Aghazarian, Bates, Benoit, Berg, Bermudez, Bogh,
Calderon, Canciamilla, Chan, Chavez, Chu, Cogdill, Cohn,
Corbett, Correa, Cox, Daucher, Diaz, Dutra, Dutton,
Dymally, Firebaugh, Frommer, Garcia, Goldberg, Hancock,
Harman, Jerome Horton, Shirley Horton, Houston, Jackson,
Keene, Kehoe, Koretz, La Malfa, La Suer, Laird, Leno,
Levine, Lieber, Liu, Longville, Lowenthal, Maddox,
Matthews, Maze, McCarthy, Montanez, Mountjoy, Mullin,
Nakanishi, Nakano, Nation, Negrete McLeod, Parra, Reyes,
Richman, Ridley-Thomas, Runner, Salinas, Samuelian,
Simitian, Spitzer, Steinberg, Strickland, Wesson, Wolk,
Wyland, Yee, Nunez
NO VOTE RECORDED: Campbell, Haynes, Leslie, Maldonado,
Oropeza, Pacheco, Pavley, Plescia, Vargas, Wiggins
DLW:cm 6/30/04 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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