BILL ANALYSIS
AB 292
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Date of Hearing: April 13, 2009
ASSEMBLY COMMITTEE ON REVENUE AND TAXATION
Charles M. Calderon, Chair
AB 292 (Yamada) - As Introduced: February 13, 2009
Majority vote. Fiscal committee.
SUBJECT : Personal income taxes: voluntary contributions:
Alzheimer's disease
SUMMARY : Extends from January 1, 2010 to January 1, 2015 the
sunset date for the Revenue and Taxation Code article that
authorizes the California Alzheimer's Disease and Related
Disorders Research Fund (Fund) voluntary contribution.
Specifically, this bill :
1)Deletes certain legislative findings and declarations relating
to the Fund, including those noting that:
a) Alzheimer's disease and related dementia disorders
affect 10% of Californians over the age of 65 and 50% of
Californians who are 85 years of age or older;
b) The total annual cost of caring for individuals with
Alzheimer's disease and other dementia disorders in
California is over $10 billion; and,
c) Approximately 50% of all nursing home admissions in
California are attributable to Alzheimer's disease and
related dementia disorders.
2)Adds legislative findings noting that:
a) Between 2008 and 2030 there will be a doubling in the
number of Californians living with Alzheimer's disease. In
this same period, there is expected to be a tripling in the
number of California's Latinos and Asians with this
disease;
b) Among California's baby boomers 55 years of age and
older, their lifetime risk for developing Alzheimer's
disease is one in eight;
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c) Alzheimer's disease is now the sixth leading cause of
death in California;
d) Families provide almost three-quarters of the value of
care for individuals living with Alzheimer's disease in the
community and in facilities, amounting to approximately
$72.7 billion out of an estimated total cost of $104
billion. These family caregivers are more likely to
experience financial hardship, health difficulties, and a
negative impact on their ability to work outside the home;
and,
e) The cost to the Medi-Cal program for an individual with
Alzheimer's disease or a related dementia is two and
one-half times greater than the cost for an individual
without a diagnosis of dementia.
3)Replaces statutory references to the defunct Health and
Welfare Agency with references to the California Health and
Human Services Agency.
EXISTING LAW :
1)Allows taxpayers to designate on their personal income tax
(PIT) returns a contribution to any of 15 voluntary
contribution funds (VCFs).
2)Provides a specific sunset date for each VCF, except the
California Seniors Special Fund.
3)Provides that each VCF must meet a minimum annual contribution
amount to remain in effect, except for the California Seniors
Special Fund, the California Firefighters' Memorial Fund, and
the California Peace Officer Memorial Foundation Fund.
4)Provides that all money transferred to the Fund shall, upon
appropriation by the Legislature, be allocated to:
a) The Franchise Tax Board (FTB) and the State Controller
for reimbursement of all related administrative costs; and,
b) The appropriate state department as established by the
Secretary of the Health and Welfare Agency in consultation
with the Department of Aging. These funds are to be
expended for the purpose of conducting research relating to
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the care, treatment, and the cure of Alzheimer's disease
through contracts or grants.
FISCAL EFFECT : FTB estimates that, if an itemized deduction is
claimed for every dollar contributed to the Fund, this bill will
reduce General Fund revenues by $20,000 per fiscal year (FY),
beginning in FY 2010-11.
Proposition 98 Fiscal Effect : Minimal, if any.
COMMENTS :
1)The author states, "Over the next two decades, the data show
that nearly 1 in 8 Californians over 55 will be affected by
Alzheimer's disease, and that this disease will triple in the
Asian American and Latino populations. The scientific
opportunities exist to find the answers to Alzheimer's by
continuing vital research support. Extending this voluntary
tax check-off allows Californians and their families a
mechanism to maintain a significant investment in healthcare
that all Californians deserve."
2)Supporters state, "Since 1988 Californians have contributed
more than $9.3 million in donations averaging only $11.
Contributions have funded 122 research studies led by
California scientists on the cause, diagnosis, treatment,
prevention and care of people living with Alzheimer's and
other dementias. This work has not only contributed
substantially to our understanding of Alzheimer's but has
brought millions more in research funding into California's
economy."
3)FTB notes that:
a) The Fund first appeared on the 1987 PIT return;
b) The minimum contribution amount for the Fund each
calendar year is $250,000, indexed for inflation since
calendar year 2000;
c) The Fund received contributions of $465,871 in 2006,
$485,401 in 2007, and $505,510 in 2008; and,
d) Because the minimum contribution amount adjusts for
inflation, the Fund will need to receive $328,357 to remain
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on the 2009 return filed in 2010.
4)Committee Staff Comments : The author wishes to take
amendments in committee to:
a) Add several coauthors;
b) Correct a drafting error raised in FTB's bill analysis;
and,
c) Make minor changes to the legislative findings and
declarations.
REGISTERED SUPPORT / OPPOSITION :
Support
AARP
California Alliance for Retired Americans
California Assisted Living Association
California Association for Adult Day Services
California Council of the Alzheimer's Association
California School Employees Association
Congress of California Seniors
Opposition
None on file
Analysis Prepared by : M. David Ruff / REV. & TAX. / (916)
319-2098