BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



           ------------------------------------------------------------ 
          |SENATE RULES COMMITTEE            |                    SB 91|
          |Office of Senate Floor Analyses   |                         |
          |1020 N Street, Suite 524          |                         |
          |(916) 651-1520         Fax: (916) |                         |
          |327-4478                          |                         |
           ------------------------------------------------------------ 
           
                                         
                                 THIRD READING


          Bill No:  SB 91
          Author:   Correa (D) and Alquist (D)
          Amended:  As introduced
          Vote:     21

           
           SENATE REVENUE & TAXATION COMMITTEE  :  7-1, 4/22/09
          AYES:  Wolk, Walters, Alquist, Florez, Padilla, Runner,  
            Wiggins
          NOES:  Ashburn

           SENATE APPROPRIATIONS COMMITTEE  :  9-1, 5/4/09
          AYES:  Kehoe, Corbett, Denham, Hancock, Leno, Walters,  
            Wolk, Wyland, Yee
          NOES:  Cox
          NO VOTE RECORDED:  DeSaulnier, Oropeza, Runner
           

           SUBJECT  :    Tax checkoff:  senior citizens

           SOURCE  :     California Senior Legislature


           DIGEST  :    This bill extends the California Fund for Senior  
          Citizens voluntary contribution/check-off designation on  
          the personal income tax return to January 1, 2015.

           ANALYSIS  :    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  
                                                           CONTINUED





                                                                 SB 91
                                                                Page  
          2

          returns).  Check-off amounts may be claimed as charitable  
          contributions on taxpayers' tax returns during the  
          subsequent year.  Existing law allows the Franchise Tax  
          Board (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 extends the check off for the California Fund for  
          Senior Citizens to January 1, 2015.  This bill requires  
          that the check off meet the minimum contribution  
          requirement of $250,000.

           Background
           
          This bill is intended to allow the California Fund for  
          Senior Citizens to remain on the income tax form through  
          2015.  The minimum contribution amount for each year is  
          $250,000.  In the past four calendar years, the fund has  
          received the following total annual contributions: 

          2005           2006           2007           2008
          $296, 136                $258,411             
          $264,645$288,695

          FTB states that the minimum contribution amount does not  
          adjust for inflation.  The California Fund for Senior  
          Citizens has consistently exceeded its $250,000  
          requirement.

          1.With the following exceptions, VCFs remain on the return  
            until they are either repealed or fail to meet their  
            minimum contribution amount: 

          2.Except for the California Seniors Special Fund, which has  
            no sunset date, each VCF has a specific sunset date.

          3.Except for the California Seniors Special Fund, the  
            California Firefighters Memorial Fund, and the California  
            Peace Officer Memorial Foundation Fund, each VCF must  
            meet an initial minimum contribution amount of $250,000. 

          4.Except for the California Fund for Senior Citizens, each  
            of the remaining VCF minimum contribution amounts is  







                                                                 SB 91
                                                                Page  
          3

            adjusted annually for inflation which is based on the  
            percentage change in the California Consumer Price Index.

           2008 Check-Offs

           Contributions to voluntary funds in 2008 were as follows:

               -------------------------------------------- 
              |Voluntary Contribution Fund    |2008        |
              |                               |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      |            |
               -------------------------------------------- 

               ------------------------------- 
              |     Newly Added as of January |







                                                                 SB 91
                                                                Page  
          4

              |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                    |
              |                               |
               ------------------------------- 

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No

          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. 

           SUPPORT  :   (Verified  5/4/09)

          California Senior Legislature (source) 
          Area 12 Agency on Aging
          San Joaquin County Commission on Aging
          California Alliance for Retired Americans


          DLW:nl  5/5/09   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

                                ****  END  ****