BILL ANALYSIS
AB 292
Page 1
Date of Hearing: April 29, 2009
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Kevin De Leon, Chair
AB 292 (Yamada) - As Amended: April 20, 2009
Policy Committee: Revenue and
Taxation Vote: 8-0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill extends from January 1, 2010 to January 1, 2015 the
sunset date for the California Alzheimer's Disease and Related
Disorders Research Fund (Fund) voluntary contribution on
personal income tax returns.
FISCAL EFFECT
The contributions may be taken as an itemized deduction on
income tax returns. The Franchise Tax Board estimates that the
annual revenue losses from these deductions would be less than
$20,000.
COMMENTS
1)Rationale . The author indicates that the extension of this
checkoff program will enable Californians to continue making
an important investment in Alzheimer's research, noting that
"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."
2)Background-voluntary contribution funds (VCFs) . California
taxpayers can make voluntary contributions to any of 15 funds
listed on the state personal income tax return. The
contributions are in addition to any tax liabilities otherwise
owed. Thus, they do not directly reduce state taxes otherwise
available to support state-funded programs in the year in
which they are made. However, the amounts are allowed as an
itemized deduction for charitable contributions on the
AB 292
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subsequent year's income tax return. These voluntary
contributions support various purposes, including cancer
research, endangered species preservation, and emergency food
assistance. Contributions to the VCFs have historically ranged
from $300,000 to $800,000 per year. All but one VCF (the
California Seniors Special Fund) have sunset dates, and most
must meet a minimum annual contribution to remain on the
return.
3)Background--Alzheimer's Disease and Related Disorders Research
Fund . Current law specifies that the proceeds to this fund are
allocated to the appropriate state department as established
by the Secretary of the Health and Welfare Agency in
consultation with the Department of Aging. The department then
allocates these monies through grants or contracts for
research relating to the care, treatment, and the cure of
Alzheimer's disease. Annual contributions to this fund have
recently been about $500,000.
Analysis Prepared by : Brad Williams / APPR. / (916)
319-2081