BILL ANALYSIS
SENATE REVENUE & TAXATION COMMITTEE
Senator Lois Wolk, Chair
AB 292 - Yamada
Amended: April 20, 2009
Hearing: June 10, 2009 Fiscal: Yes
SUBJECT: Extends the California Fund for Alzheimer's
Disease Research voluntary contribution/check-off
designation on the personal income tax return to
January 1, 2015.
EXISTING LAW allows taxpayers to contribute money to
one or more of 15 voluntary contribution funds by checking
a box on their state income tax return. California law
requires contributions made through check-offs to be made
from taxpayers' own resources (not from their tax
liability, as is possible on federal tax returns).
Check-off amounts may be claimed as charitable
contributions on taxpayers' tax returns during the
subsequent year.
Allows the FTB to design tax returns to provide for the
designation of contributions to specified funds either on
the return itself or on a separate schedule that must be
attached to the return.
THIS BILL would extend the check off for the
Alzheimer's Disease Research Fund to January 1, 2015.
THIS BILL would require that the check off meet the
minimum contribution requirement of $250,000.
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FISCAL EFFECT:
According to FTB extending this check-off will result in
annual revenue losses of approximately $15,000 per year
beginning in the 2009-10 fiscal years.
COMMENTS
A. Purpose of the Bill
According to the author's office: 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."
The following chart indicate the amount of money
received by this fund in recent years; the minimum amount
to stay on the form is $250,000 annually.
----------------------------------------------------------
| 2006 | 2007 | 2008 |
|-----------------+---------------+------------------------|
| $465,871 | $485,401 |$505,510 |
| | | |
----------------------------------------------------------
B. Many worthy causes
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In the past, the Committee has expressed concern that
countless worthy causes may be funded by tax check-offs.
The Committee has stated that the current check-off system
forces them to choose between worthy charities and
non-profits for a spot on the tax return. The current
system remains subjective and is limited to those
organizations that can convince the Legislature to include
them on the form. Additionally, taxpayers may currently
contribute portions of their refunds to worthy
organizations. Taxpayers may also claim a deduction for
charitable contributions. The Committee may wish to
consider whether the state should use the tax code to
encourage contributions to certain charitable
organizations.
In addition to this bill, the following bills have
been introduced this year:
AB 1049 (Torrico, 2009/2010) would create a VCF
designation on the personal income tax return for taxpayers
to contribute to the Safely Surrender Babies Fund. This
bill has been referred to the Assembly Revenue and Taxation
Committee.
AB 1088 (Fletcher, 2009/2010) would create a VCF
designation on the personal income tax return in order for
taxpayers to contribute to the Morale, Welfare, and
Recreation Fund for each of the veterans' homes, as
provided. This bill is currently set for hearing in the
Assembly Veterans Affairs Committee.
SB 91 (Correa, 2009/2010) would extend the expiration
date of the California Fund for Senior Citizens from
January 1, 2010, to January 1, 2015. This bill is currently
set for hearing in the Senate Revenue and Taxation
Committee.
C. 2008 Check-Offs
Contributions to voluntary funds in 2008 were as
follows:
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--------------------------------------------
| Voluntary Contribution | 2008 |
|Fund |Contribution|
| | s |
|-------------------------------+------------|
|Alzheimer's Disease/Related | $505,510 |
|Disorders Fund | |
|-------------------------------+------------|
|California Breast Cancer | $596,729 |
|Research Fund | |
|-------------------------------+------------|
|California Firefighters' | $250,060 |
|Memorial Fund | |
|-------------------------------+------------|
|California Fund for Senior | $288,695 |
|Citizens | |
|-------------------------------+------------|
|California Military Family | $306,750 |
|Relief Fund | |
|-------------------------------+------------|
|California Peace Officer | $184,261 |
|Memorial Foundation Fund | |
|-------------------------------+------------|
|California Sea Otter Fund | $294,966 |
|-------------------------------+------------|
|Emergency Food for Families | $438,582 |
|Fund | |
|-------------------------------+------------|
|Rare and Endangered Species | $580,823 |
|Preservation Fund | |
|-------------------------------+------------|
|State Children's Trust for the |$528,609 |
|Prevention of Child Abuse | |
| | |
| | |
--------------------------------------------
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-------------------------------
| Newly Added as of January |
|2009 |
|-------------------------------|
|ALS/Lou Gehrig's Disease |
|Research Fund |
|-------------------------------|
|California Cancer Center |
|Research Fund |
|-------------------------------|
|California Ovarian Cancer |
|Research Fund |
|-------------------------------|
|California Seniors Special |
|Fund |
|-------------------------------|
|Municipal Shelter Spay and |
|Neuter Fund |
| |
| |
-------------------------------
Support and Opposition
Support: Alzheimer's Association
AARP
California Alliance for Retired Americans
California Assisted Living Association
California Commission on Aging
California School Employees Association
Congress of California Seniors
Service Employees International Union
Opposition:None reported.
---------------------------------
Consultant: Gayle Miller
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