BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 997
                                                                  Page  1

          Date of Hearing:   July 2, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                    SB 997 (Morrell) - As Amended:  June 16, 2014

          Policy Committee:                              Revenue &  
          Taxation     Vote:                            9-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              No

           SUMMARY  

          This bill repeals the statutory authorization for the existing  
          California Fund for Senior Citizens, which supports work of the  
          California Senior Legislature, and authorizes the creation of a  
          new California Senior Legislature Fund (the Fund) as a voluntary  
          contribution fund on the personal income tax return for taxable  
          years beginning on or after January 1, 2014.

          The bill provides that the Fund's statutory provisions shall  
          remain in effect only for taxable years beginning before January  
          1, 2019, and requires the Fund to meet a standard minimum  
          contribution requirement of $250,000 in its second year,  
          following which the minimum contribution amount will be indexed  
          for inflation.

           FISCAL EFFECT  

          Minor and absorbable administrative costs to the Franchise Tax  
          Board, negligible impact to General Fund tax revenue.

           COMMENTS  

          1)  Purpose.   The California Senior Legislature receives its  
            primary funding from the California Fund for Senior Citizens,  
            a fund that utilizes a voluntary tax check-off on the personal  
            income tax return.  According to the author, this fund is not  
            likely to meet its minimum contribution amount of $250,000 in  
            order to remain on the personal income tax form, and is  
            therefore in danger of being removed from the form and losing  
            its primary source of funding.









                                                                  SB 997
                                                                  Page  2

            This bill sunsets the existing fund and creates the new and  
            appropriately-named California Senior Legislature Fund,  
            allowing the Senior Legislature to raise funds for a year  
            before having to meet a minimum contribution amount.   
            Following its first year, the new Fund will be required to  
            meet a minimum contribution amount of $250,000, which will be  
            indexed for inflation going forward.

          2)  California Senior Legislature.   The California Senior  
            Legislature helps identify, develop, and support legislation  
            that protects and enhances the quality of life of California  
            seniors.  In each of 2010, 2011, 2012, and 2013, the  
            California Fund for Senior Citizens received $296,144,  
            $308,763, $272,742, and $234,247 in contributions through the  
            personal income tax return, respectively.

           Analysis Prepared by  :    Joel Tashjian / APPR. / (916) 319-2081