BILL ANALYSIS                                                                                                                                                                                                    



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          SENATE THIRD READING
          SB 91 (Correa and Alquist)
          As Amended July 8, 2009
          Majority vote 

           SENATE VOTE  :31-2  
           
           REVENUE & TAXATION  9-0         APPROPRIATIONS      15-0        
           
           ----------------------------------------------------------------- 
          |Ayes:|Charles Calderon, DeVore, |Ayes:|De Leon, Nielsen,         |
          |     |Beall, Coto, Harkey, Ma,  |     |Ammiano, Coto, Davis,     |
          |     |Hagman, Portantino,       |     |Duvall, Fuentes, Hall,    |
          |     |Saldana                   |     |Harkey, Miller, John A.   |
          |     |                          |     |Perez, Skinner, Solorio,  |
          |     |                          |     |Audra Strickland,         |
          |     |                          |     |Torlakson                 |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           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  








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               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  
          every dollar contributed to the Fund, the FTB estimates that  
          this bill would reduce General Fund revenues by approximately  
          $15,000 per year.  

           COMMENTS  :  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.

          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.  

          Committee Staff Notes:

          1)Background:  FTB reports that the Fund first appeared on the  
            1983 PIT return.  The minimum contribution amount for each  








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

          2)Legislative history of the Fund:

             a)   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.  


             b)   AB 137 (Correa), Chapter 376, Statutes of 2003, extended  
               the Fund provisions' sunset date from January 1, 2005, to  
               January 1, 2010.

             c)   AB 1697 (Committee on Aging and Long-Term Care), Chapter  
               228, Statutes of 1999, extended the Fund provisions' sunset  
               date from January 1, 2000, to January 1, 2005.  

          3)Current VCF bills:  The following related bills were  
            introduced in the current Legislative Session:

             a)   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 on the Senate  
               Floor.  

             b)   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 Revenue and Taxation Committee.


           Analysis Prepared by  :    M. David Ruff / REV. & TAX. / (916)  
          319-2098                                                 








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          0001708