BILL ANALYSIS
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|SENATE RULES COMMITTEE | AB 292|
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THIRD READING
Bill No: AB 292
Author: Yamada (D), et al
Amended: 6/22/09 in Senate
Vote: 21
SENATE REVENUE & TAXATION COMMITTEE : 6-1, 6/10/09
AYES: Wolk, Alquist, Florez, Padilla, Runner, Wiggins
NOES: Ashburn
NO VOTE RECORDED: Walters
SENATE APPROPRIATIONS COMMITTEE : 11-0, 6/29/09
AYES: Kehoe, Cox, Corbett, Leno, Oropeza, Price, Runner,
Walters, Wolk, Wyland, Yee
NO VOTE RECORDED: Denham, Hancock
ASSEMBLY FLOOR : 79-0, 05/11/09 - See last page for vote
SUBJECT : Income tax checkoff: Alzheimers disease
SOURCE : Author
DIGEST : This bill extends from January 1, 2010 to
January 1, 2015 the sunset date for the California
Alzheimers Disease and Related Disorders Research Fund
(Fund) voluntary contribution on personal income tax
returns.
ANALYSIS : Existing law:
1. Allows taxpayers to designate on their personal
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income tax 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 the care, treatment,
and the cure of Alzheimer's disease through
contracts or grants.
This bill 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
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disorders in California is over $10 billion; and,
C. Approximately 50 percent 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 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 that 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.
1. Replaces statutory references to the defunct Health
and Welfare Agency with references to the California
Health and Human Services Agency.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
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Local: No
The current minimum level of contribution for this
check-off program is $328,357 ($250,000 adjusted for
inflation since 2000), and the average contribution amount
over the past three years has been $485,594. Assuming this
trend in average donations continues, the estimated tax
revenue loss would be about $29,000 annually (applying the
average marginal tax rate of six percent), beginning in
2010-11, because contributions would be claimed as an
itemized deduction in the following tax year. Costs for
the Franchise Tax Board to administer the program are minor
and are reimbursed from donated amounts.
SUPPORT : (Verified 7/1/09)
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
Service Employees International Union
ASSEMBLY FLOOR :
AYES: Adams, Ammiano, Anderson, Arambula, Beall, Bill
Berryhill, Tom Berryhill, Blakeslee, Block, Blumenfield,
Brownley, Buchanan, Caballero, Charles Calderon, Carter,
Chesbro, Conway, Cook, Coto, Davis, De La Torre, De Leon,
DeVore, Duvall, Emmerson, Eng, Evans, Feuer, Fletcher,
Fong, Fuentes, Fuller, Furutani, Gaines, Galgiani,
Garrick, Gilmore, Hagman, Hall, Harkey, Hayashi,
Hernandez, Hill, Huber, Huffman, Jeffries, Jones, Knight,
Krekorian, Lieu, Logue, Bonnie Lowenthal, Ma, Mendoza,
Miller, Monning, Nava, Nestande, Nielsen, John A. Perez,
V. Manuel Perez, Portantino, Price, Ruskin, Salas,
Saldana, Silva, Skinner, Smyth, Solorio, Audra
Strickland, Swanson, Torlakson, Torres, Torrico, Tran,
Villines, Yamada, Bass
NO VOTE RECORDED: Niello
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DLW:nl 7/1/09 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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