BILL ANALYSIS
SB 91
Page 1
Date of Hearing: June 15, 2009
ASSEMBLY COMMITTEE ON REVENUE AND TAXATION
Charles M. Calderon, Chair
SB 91 (Correa) - As Introduced: January 20, 2009
Majority vote. Fiscal committee.
SENATE VOTE : 31-2
SUBJECT : Income taxes: designated contributions: California
Fund for Senior Citizens
SUMMARY : Extends, from January 1, 2010, to January 1, 2015, the
sunset date for the statutory provisions authorizing the
California Fund for Senior Citizens (Fund) checkoff.
EXISTING LAW :
1)Allows taxpayers to designate on their personal income tax
(PIT) returns a contribution to any of 15 voluntary
contribution funds (VCFs), including the Fund.
2)Provides a specific sunset date for each VCF, except the
California Seniors Special Fund.
3)Provides that each VCF must receive 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 moneys transferred to the Fund, upon
appropriation by the Legislature, shall be allocated as
follows:
a) To the Franchise Tax Board (FTB) and the State
Controller for reimbursement of all administrative costs;
and,
b) To the California Senior Legislature, for its ongoing
activities on behalf of older persons.
FISCAL EFFECT : Assuming an itemized deduction is claimed for
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every dollar contributed to the Fund, the FTB estimates that
this bill would reduce General Fund revenues by approximately
$15,000 per year.
COMMENTS :
1)The author notes:
The California Senior Legislature (CSL) is a volunteer body
of 40 Senior Senators and 80 Senior Assemblymembers who are
selected in elections supervised by the Advisory Councils
in the 33 Planning and Services Areas (PSAs) in California,
which were established by the federal Older Americans Act
of 1965.
The CSL was founded largely through the efforts of Senator
Henry Mello who in 1980 requested that the California
Commission on Aging call a session of the Silver-Haired
Legislature through ACR 129. In 1982, this became the
California Senior Legislature and Senator Mello in SCR 44
asked that this be an annual event.
The primary mission of the CSL is to assemble legislative
proposals that affect Senior Citizens at the state and
federal levels and to introduce them to Members of the
State Legislature or the Congress. The CSL also advocates
for laws that impact Senior Citizens in California and in
the U.S.
Since its foundation, the CSL has been funded primarily
through the [Fund], identified as line 52 check-off on the
California State Income Tax Return. Senate Bill 91 would
extend the contribution provisions for the California Fund
for Senior Citizens under the Personal Income Tax Law from
2010 until 2015.
2)The California Senior Legislature is sponsoring this measure.
The California Senior Legislature notes that, since 1981, it
has labored to identify, develop, and support legislative
proposals that protect and enhance the quality of life of
California's seniors.
3)Supporters note:
Under the Personal Income Tax Law, taxpayers are allowed,
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until January 1, 2010, to contribute amounts in excess of
their tax liability for the support of the [Fund].
Existing law provides for the repeal of the contribution
provisions for these funds either on the September 1
following the calendar year for which [FTB] estimates that
the minimum contribution amount will be less than a
prescribed amount or on January 1, 2010, whichever occurs
first. This bill would, under this latter limit, extend
the operation of those contribution provisions until
January 1, 2015.
4)Committee Staff Notes:
a) Background : FTB reports that the Fund first appeared on
the 1983 PIT return. The minimum contribution amount for
each calendar year is $250,000, which is not annually
adjusted for inflation. In the past four calendar years,
the Fund has received the following total contributions:
-----------------------------------------------------------
| 2005 | 2006 | 2007 | 2008 |
|-------------+---------------+---------------+-------------|
| $296,136 | $258,411 | $264,645 |$288,695 |
-----------------------------------------------------------
b) Legislative history of the Fund :
i) SB 1249 (Alquist), Chapter 645, Statutes of 2006,
froze the Fund minimum contribution amount at $250,000
and deleted the requirement for an annual inflation
adjustment.
ii) AB 137 (Correa), Chapter 376, Statutes of 2003,
extended the Fund provisions' sunset date from January 1,
2005, to January 1, 2010.
iii) AB 1697 (Committee on Aging and Long-Term Care),
Chapter 228, Statues of 1999, extended the Fund
provisions' sunset date from January 1, 2000, to January
1, 2005.
c) Current VCF bills : The following related bills were
introduced in the current Legislative Session:
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i) AB 292 (Yamada) would extend, from January 1, 2010,
to January 1, 2015, the sunset date for the article that
authorizes the California Alzheimer's Disease and Related
Disorders Research Fund checkoff. AB 292 is set to be
heard in the Senate Committee on Revenue and Taxation.
ii) AB 1049 (Torrico) authorizes the addition of the
Safely Surrendered Baby Fund checkoff to the PIT form
upon the removal of another VCF from the form. AB 1049
is in the Senate Rules Committee awaiting referral.
REGISTERED SUPPORT / OPPOSITION :
Support
California Senior Legislature (sponsor)
Area Agency on Aging of Lake & Mendocino Counties PSA 26
California Alliance for Retired Americans
Congress of California Seniors
Fresno-Madera Area Agency on Aging
San Joaquin County Area Agency on Aging
San Joaquin County Commission on Aging
Senior Assembly Member Austin E. Lucero
1 individual
Opposition
None on file
Analysis Prepared by : M. David Ruff / REV. & TAX. / (916)
319-2098