BILL ANALYSIS �
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|SENATE RULES COMMITTEE | SB 997|
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UNFINISHED BUSINESS
Bill No: SB 997
Author: Morrell (R), et al.
Amended: 6/16/14
Vote: 21
SENATE GOVERNANCE & FINANCE COMMITTEE : 7-0, 4/24/14
AYES: Wolk, Knight, Beall, DeSaulnier, Hernandez, Liu, Walters
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
SENATE FLOOR : 35-0, 5/08/14 (Consent)
AYES: Anderson, Beall, Berryhill, Block, Cannella, Corbett,
Correa, De Le�n, DeSaulnier, Evans, Fuller, Galgiani, Hancock,
Hernandez, Hill, Hueso, Huff, Jackson, Lara, Leno, Lieu, Liu,
Mitchell, Monning, Morrell, Nielsen, Padilla, Pavley, Roth,
Steinberg, Torres, Vidak, Walters, Wolk, Wyland
NO VOTE RECORDED: Calderon, Gaines, Knight, Wright, Yee
ASSEMBLY FLOOR : 78-0, 8/7/14 - See last page for vote
SUBJECT : Voluntary contributions: California Fund for Senior
Citizens
SOURCE : California Senior Legislature
DIGEST : 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 (Fund) as a
voluntary contribution fund on the personal income tax return
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for taxable years beginning on or after January 1, 2014.
Assembly Amendments repeal the statutory authorization for the
existing California Fund for Senior Citizens, and authorizes the
creation of the new Fund as a voluntary contribution fund on the
personal income tax return.
ANALYSIS : Existing law allows taxpayers to contribute money
to voluntary contribution funds (VCFs) by checking a box on
their state income tax returns. California law requires
contributions made through so-called "check-offs" to be made
from taxpayers' own resources and not from their tax
liabilities, as is possible on federal tax returns. Check-off
amounts may be claimed as charitable contributions on taxpayers'
tax returns in the subsequent year.
Each VCF is individually added to the tax return through the
legislative process. This year's tax form lists 20 VCFs. With
a few exceptions, VCFs remain on the tax form until they are
repealed by a sunset date or fail to generate a minimum
contribution amount. In general, the minimum contribution
amounts are adjusted annually for inflation. For most VCFs, the
minimum contribution amount is $250,000, beginning in the fund's
second year.
This bill authorizes the addition of the Fund as a voluntary
contribution fund (VCF) on the personal income tax return for
taxable years beginning on or after January 1, 2014.
Specifically, this bill:
1.Repeals the statutory authorization for the existing
California Fund for Senior Citizens, which supports the work
of the California Senior Legislature.
2.Establishes the new Fund in the State Treasury.
3.Allows a deduction for any contribution made to the Fund.
4.Provides that all money transferred to the Fund, upon
appropriation by the Legislature, shall be allocated to the:
A. Franchise Tax Board (FTB) and the Controller for
reimbursement of all costs incurred in administering the
VCF; and,
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B. California Senior Legislature, for its ongoing
activities on behalf of older persons.
1.Provides that the funds allocated to the California Senior
Legislature shall be spent pursuant to the purview of the
Joint Rules Committee of the California Senior Legislature in
a manner consistent with the bylaws of the California Senior
Legislature, established through a majority vote of the
California Senior Legislature.
2.Provides that the Fund's statutory provisions shall remain in
effect only for taxable years beginning before January 1,
2019.
3.Requires the Fund to meet a standard minimum contribution
requirement of $250,000 in its second year. Thereafter, the
minimum contribution amount will be indexed for inflation.
Background
By September 1 of each year, the FTB must determine the minimum
contribution amount required for each VCF to remain on the form
for the following calendar year, and estimate whether
contributions to each VCF meet that amount. If FTB estimates
that a VCF will fail to meet its minimum contribution amount,
that VCF is repealed for the following calendar year. Three
check-offs do not have a minimum contribution requirement:
California Firefighters' Memorial Foundation Fund,
California Peace Officer Memorial Foundation Fund, and
California Seniors Special Fund.
The following list provides information on when the existing tax
check-offs first appeared on the tax return, when they will
sunset, and their minimum contribution requirements.
------------------------------------------------------------
|Voluntary Contribution Fund |Initia|Sunset|2014 minimum |
| |l Tax | Date |contribution |
| |Return| |requirement |
| | | | |
|-------------------------------+------+------+--------------|
|Alzheimer's Disease/Related |1987 |2019 |$347,328 |
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|Disorders Fund | | | |
|-------------------------------+------+------+--------------|
|CA Breast Cancer Research Fund |1992 |2017 |$371, 724 |
|-------------------------------+------+------+--------------|
|CA Cancer Research Fund |2008 |2017 |$268, 471 |
|-------------------------------+------+------+--------------|
|CA Firefighters' Memorial Fund |1993 |2015 |No minimum |
| | | |requirement |
| | | |unless the |
| | | |repeal date |
| | | |is deleted |
|-------------------------------+------+------+--------------|
|CA Fund for Senior Citizens |1983 |2019 |$250,000 |
| | | | |
------------------------------------------------------------
------------------------------------------------------------
|CA Peace Officer Memorial |1999 |2015 |No minimum |
|Foundation Fund | | |requirement |
| | | |unless repeal |
| | | |date is |
| | | |deleted |
|-------------------------------+------+------+--------------|
|CA Sea Otter Fund |2006 |2015 |$277,666 |
|-------------------------------+------+------+--------------|
|CA Seniors Special Fund |1990 |None |No minimum |
| | | |requirement |
|-------------------------------+------+------+--------------|
|CA YMCA Youth and Government |2012 |2016 |$250,000 |
|Fund | | | |
|-------------------------------+------+------+--------------|
|CA Youth Leadership Fund |2012 |2016 |$250,000 |
|-------------------------------+------+------+--------------|
|Child Victims of Human |2011 |2015 |$254,250 |
|Trafficking Fund | | | |
|-------------------------------+------+------+--------------|
|Emergency Food for Families |1998 |2018 |$360,179 |
|Fund | | | |
|-------------------------------+------+------+--------------|
|Municipal Shelter Spay-Neuter |2011 |2015 |$254,250 |
|Fund | | | |
|-------------------------------+------+------+--------------|
|Rare & Endangered Species |1983 |2017 |$324, 972 |
|Preservation | | | |
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|Program | | | |
|-------------------------------+------+------+--------------|
|School Supplies for Homeless |2012 |2016 |$250,000 |
|Children Fund | | | |
|-------------------------------+------+------+--------------|
|State Children's Trust for the |1983 |2017 |$324,972 |
|Prevention of Child Abuse | | | |
|-------------------------------+------+------+--------------|
|State Parks Protection |2012 |None |$250,000 |
|Fund/Parks Pass Purchase | | | |
|-------------------------------+------+------+--------------|
|Keep Arts in Schools Fund |2013 |2018 |No minimum |
| | | |requirement |
| | | |for 2014 |
|-------------------------------+------+------+--------------|
|Protect Our Coast and Oceans |2013 |2017 |No minimum |
|Fund | | |requirement |
| | | |for 2014 |
|-------------------------------+------+------+--------------|
|American Red Cross, California |2013 |2017 |No minimum |
|Chapter | | |requirement |
| | | |for 2014 |
| | | | |
------------------------------------------------------------
The California Fund for Senior Citizens first appeared on the
1983 personal income tax return. Donations to the California
Fund for Senior Citizens supports the ongoing work of the
California Senior Legislature (CSL), an organization established
by state law to identify, develop, and support legislative
proposals that protect and enhance the quality of life of
California's seniors.
From 1983 through 1999, the California Fund for Senior Citizens
was not directly subject to the minimum contribution
requirement. In 1999, AB 1697 (Committee on Aging and Long-Term
Care, Chapter 228) extended the Fund's sunset date and imposed a
minimum contribution requirement of $250,000. In 2006, SB 1249
(Alquist, Chapter 645) removed the Fund's annual inflation
adjustment. As a result, the Fund's minimum contribution amount
is currently set at $250,000, unlike most other check-offs whose
minimum contribution requirement is adjusted for inflation.
Since 2010, the Fund has received the following contributions
amounts:
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-----------------------------------------------------------
| 2010 | 2011 | 2012 | 2013 |
|--------------+--------------+--------------+--------------|
|$296,144 |$308,763 |$272,742 |$234,247 |
| | | | |
-----------------------------------------------------------
While the Fund received only $234,247 in valid contributions in
2013, the Fund was still placed on the 2013 PIT return since FTB
had estimated that the Fund would meets its minimum contribution
amount. FTB reports that the Fund has received only $42,135 in
valid contributions thus far in 2014, slightly below the $43,174
received by the same point last year. CSL is concerned that the
Fund will not meet the minimum donation requirement this year
and will be removed from the income tax form.
Comments
The California Senior Legislature (CSL) is primarily funded
through the tax check-off program. CSL works to identify senior
concerns, develop proposals, and advocate for the inclusion of
those concerns in legislative bills. Since state law
established CSL in 1981, 192 of CSL's proposals have been
chaptered into law. As a result of the economic downturn, CSL
has had difficulty meeting the minimum donation requirement of
$250,000. Unlike state agencies, CSL does not receive funding
through the General Fund. This bill allows the California
Senior Citizens Fund to remain on the tax return. By preserving
the primary source of funding for the California Senior
Legislature, this bill allows the CSL to continue its advocacy
on behalf of the state's senior citizens.
Since 2003, 15 check-offs have been removed from the tax form as
a result of failing to meet the minimum donation requirement.
One purpose of the minimum contribution threshold is to ensure
that only check-offs with substantial public support remain on
the tax return form. The other purpose is to limit the number
of check-offs on the tax form. The Legislature imposed a
minimum contribution requirement for the California Senior
Legislature specifically in response to concerns that the tax
form was in danger of expanding to three pages because of the
proliferation of tax check-offs. In 2012, FTB created a
separate page to accommodate all of the check-offs, including
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those that had been on a "waiting list" to appear on the form.
The redesign of the form also will allow the form to accommodate
additional check-offs.
In 2000, SB 2175 (Burton, Chapter 854) eliminated the minimum
contribution requirement for the California Peace Officers
Memorial Foundation Fund and the California Firefighters'
Memorial Fund after these funds were in danger of not meeting
the minimum contribution requirement. Donations to these funds
are used to support the memorials in Capitol Park and recognize
the contributions of fallen firefighters and peace officers.
The California Senior Special Fund appeared on the tax form in
1990 and has never been required to meet the minimum
contribution amount, nor does it have a sunset date. The
California Senior Special Fund supports the Area Agency of Aging
Councils, which provide advice on and sponsorship of senior
citizen issues. Only taxpayers or spouses who claim the senior
exemption credit on their California return may contribute to
the Senior Special Fund.
Related Legislation
SB 1207 (Wolk, 2014) redesigns the tax check-off process and
lowers the minimum contribution requirement to $100,000.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 8/8/14)
California Senior Legislature (source)
Amador County Commission on Aging
Area 4 Agency on Aging
California Council of the Blind
California Fund for Senior Citizens
California Retired Teachers Association
California State Retirees
Elder Financial Protection Network
Fresno-Madera Area Agency on Aging
Mariposa County Board of Supervisors,
Retired Public Employees Association
Senior Council of Santa Cruz and San Benito Counties
Sonoma County Area Agency on Aging Advisory Council
United Domestic Workers of America, AFSCME Local 3930
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ASSEMBLY FLOOR : 78-0, 8/7/14
AYES: Achadjian, Alejo, Allen, Ammiano, Bigelow, Bloom,
Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian
Calderon, Campos, Chau, Ch�vez, Chesbro, Conway, Cooley,
Dababneh, Dahle, Daly, Dickinson, Donnelly, Eggman, Fong,
Frazier, Beth Gaines, Garcia, Gatto, Gomez, Gonzalez, Gordon,
Gorell, Gray, Grove, Hagman, Hall, Harkey, Roger Hern�ndez,
Holden, Jones, Jones-Sawyer, Levine, Linder, Logue, Lowenthal,
Maienschein, Mansoor, Medina, Melendez, Mullin, Muratsuchi,
Nazarian, Nestande, Olsen, Pan, Patterson, Perea, John A.
P�rez, V. Manuel P�rez, Quirk, Quirk-Silva, Rendon,
Ridley-Thomas, Rodriguez, Salas, Skinner, Stone, Ting, Wagner,
Waldron, Weber, Wieckowski, Wilk, Williams, Yamada, Atkins
NO VOTE RECORDED: Fox, Vacancy
AB:nl 8/8/14 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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