BILL ANALYSIS
AB 292
Page 1
ASSEMBLY THIRD READING
AB 292 (Yamada)
As Amended April 20, 2009
Majority vote
REVENUE & TAXATION 8-0 APPROPRIATIONS 16-0
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|Ayes:|Charles Calderon, DeVore, |Ayes:|De Leon, Nielsen, |
| |Beall, Coto, Ma, Nielsen, | |Ammiano, |
| |Portantino, Saldana | |Charles Calderon, |
| | | |Krekorian, Duvall, |
| | | |Fuentes, Monning, Harkey, |
| | | |Miller, John A. Perez, |
| | | |Price, Skinner, Solorio, |
| | | |Audra Strickland, |
| | | |Torlakson |
|-----+--------------------------+-----+--------------------------|
| | | | |
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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 the number of Californians living
AB 292
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with Alzheimer's disease will double in both the general
population and among the African American population. In
this same period, there is expected to be a tripling of
this disease among California's Latino and Asian Pacific
Islander populations;
b) Among California's baby boomers 55 years of age and
older, their lifetime risk for developing Alzheimer's
disease is one in eight;
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.
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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
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.
COMMENTS : 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."
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."
FTB notes that:
1)The Fund first appeared on the 1987 PIT return;
2)The minimum contribution amount for the Fund each calendar
year is $250,000, indexed for inflation since calendar year
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2000;
3)The Fund received contributions of $465,871 in 2006, $485,401
in 2007, and $505,510 in 2008; and,
4)Because the minimum contribution amount adjusts for inflation,
the Fund will need to receive $328,357 to remain on the 2009
return filed in 2010.
Analysis Prepared by : M. David Ruff / REV. & TAX. / (916)
319-2098
FN: 0000478