BILL ANALYSIS �
SB 1359
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Date of Hearing: August 30, 2012
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
SB 1359 (Simitian) - As Amended: August 24, 2012
Policy Committee: N/A Vote:N/A
Urgency: Yes State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill extends the date of repeal, from January 1, 2013 to
January 1, 2018, for the income tax return check-offs for the
California Breast Cancer Research Fund (CBCRP) and the
California Cancer Research Fund (CCRF). This bill will take
effect as an urgency measure.
FISCAL EFFECT
1)Both of these check-offs have resulted in about $450,000 of
donations each in 2011.
2)This bill is estimated to cost the state about $40,000 per
year in lost revenues, beginning in 2014-15. This estimate
assumes donations continue at the current level and taxpayers
deduct these charitable donations. Revenue losses would be
similar in subsequent years.
COMMENTS
1)Purpose . According to supporters, SB 1359 will provide the
opportunity for California taxpayers to voluntarily specify
that an amount of their tax refund be contributed to the
UC-administered Breast Cancer Research Fund or the California
Cancer research fund. They point out that in 2012, nearly
150,000 Californians will be diagnosed with cancer and over
50,000 will die from the disease. They argue that research
programs, such as CBCRP and CCRF give hope to the individuals
and families that face the diagnosis of cancer and have the
potential to lead to improved treatments and quality of life
for patients.
SB 1359
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2)Voluntary Contribution Funds. California taxpayers can make
voluntary contributions to any of 15 funds listed on the state
PIT return. The contributions are in addition to tax
liabilities so they do not directly reduce the amount of state
taxes in that tax year. As charitable contributions, the
taxpayer may deduct the amount of the check-off on the
subsequent year's income tax return, reducing state tax
collections. These voluntary contributions support various
purposes, including cancer research, endangered species
preservation and emergency food assistance. Except for the
California Seniors Special Fund, all have sunset dates, and
most, including the CBCRP and CCRF must meet a minimum annual
contribution to remain on the tax form.
3)Related legislation .
a) SB 803 (DeSaulnier) establishes the California Youth
Leadership Project (Project) under the State Department of
Education (CDE) to promote youth civic engagement and
authorizes the addition of the California Youth Leadership
Fund (Fund) check-off to the PIT form. This bill is in
enrollment.
b) SB 1571 (DeSaulnier) authorizes the addition of the
School Supplies for Homeless Children Fund check-off to the
personal income tax (PIT) form upon the removal of another
voluntary contribution fund (VCF) from the form. This bill
is in the Senate for concurrence.
4)Previous legislation . The following bills PIT check-offs were
introduced in 2011.
a) AB 233 (Hall), authorizes the addition of the California
YMCA Youth and Government Fund check-off to the PIT form
upon the removal of another VCF from the form. This bill
is in enrollment.
b) AB 564 (Smyth), Chapter 549, Statutes of 2011,
reauthorized the addition of the Municipal Shelter
Spay-Neuter Fund check-off to the PIT return upon the
removal of another VCF from the form.
c) AB 764 (Swanson), Chapter 465, Statutes of 2011,
authorized the addition of the Child Victims of Human
Trafficking Fund check-off to the PIT return upon the
SB 1359
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removal of another VCF from the form.
d) AB 971 (Monning), Chapter 209, Statutes of 2011,
reauthorized the addition of the California Sea Otter Fund
check-off to the PIT form beginning with the 2011 return.
e) SB 164 (Simitian), Chapter 699, Statutes of 2011,
extended, from January 1, 2013, to January 1, 2018, the
sunset date for two VCFs currently on the PIT return the
State Children's Trust Fund and the Rare and Endangered
Species Preservation Program.
f) SB 583 (Vargas), Chapter 711, Statutes of 2011,
reauthorized the addition of the ALS/Lou Gehrig's Disease
Research Fund check-off to the PIT return upon the removal
of another VCF from the form.
Analysis Prepared by : Roger Dunstan / APPR. / (916) 319-2081