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AB 1088 (2009): Taxpayer Contributions: California Veterans Homes Fund

Tue, 2010-02-02 19:36 — chris
Type: 
Legislation
Status: 
In Committee
Authors & Coauthors: 
Nathan Fletcher
Authors & Coauthors: 
Marty Block
Authors & Coauthors: 
Connie Conway
Authors & Coauthors: 
Chuck DeVore
Authors & Coauthors: 
Danny Gilmore
Authors & Coauthors: 
Manuel Pérez
Authors & Coauthors: 
Brian Nestande

Current Status

This bill has passed the Assembly (71 Ayes, 0 Noes) and is in the Senate for concurrence.

Summary

Authorizes the addition of the California Veterans Homes Fund (Fund) checkoff to the personal income tax (PIT) form upon the removal of another voluntary contribution fund (VCF) from the form. Specifically, this bill:

  1. Establishes the Fund in the State Treasury.
  2. Provides that all moneys transferred to the Fund, upon appropriation by the Legislature, shall be allocated as follows:
    1. To the Franchise Tax Board (FTB) and the State Controller for reimbursement of costs incurred in administering the checkoff; and,
    2. To the California Department of Veterans Affairs (CDVA) for allocation to the administrators of veterans homes. Specifically, moneys shall be distributed proportionally to the Morale, Welfare, and Recreation Fund of each veterans home pursuant to Military and Veterans Code (MVC) Section 1047.
  3. States that it is the Legislature's intent for this bill to create an additional funding source for veterans homes that will supplement, and not supplant, other funding sources.
  4. Provides for the Fund provisions' automatic repeal on either January 1 of the fifth taxable year following the first appearance of the Fund on the PIT return, or on January 1 of an earlier year, if FTB estimates that the annual contribution amount will be less than $250,000, or an adjusted amount for subsequent years.
  5. Deletes the statutory provisions that authorized the Veterans' Quality of Life Fund checkoff, which was also used to fund veterans homes.
  6. Makes conforming amendments to the MVC.

Existing Law

  1. Allows taxpayers to designate on their PIT returns a contribution to any of 15 VCFs.
  2. Provides a specific sunset date for each VCF, except the California Seniors Special Fund.
  3. Provides that each VCF must meet 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.

Fiscal Effect

Assuming the Fund is added to the 2010 return, FTB estimates revenue losses, resulting from contribution deductions, to be roughly $15,000 per year.

Comments

The author states: "AB 1088 will establish a voluntary contribution fund to finance programs and services at the California Veterans' Homes via the Morale, Welfare, and Recreation Fund provided by Section 1048 of the Military and Veterans Code.

"The California Department of Veterans Affairs has a mission to provide the state's aged and/or disabled veterans with rehabilitative, residential, and medical care and services in a home-like environment at the California Veterans Homes."

Committee Staff Comments

  1. The Veterans Home of California: As noted by CDVA, the Veterans Home of California is first and foremost a place where veterans come to live. Specifically, "It offers complete medical and dental care amidst the amenities of a small town atmosphere. Residents may participate in on- or off-campus activities, civic affairs or attend veterans service organization meetings. On campus, residents have the option of participating in the Therapeutic Employment Program or by helping other veterans through volunteer service." CDVA currently operates campuses in Yountville (Napa County), Barstow (San Bernardino County), Chula Vista (San Diego County), Lancaster (Los Angeles County), and Ventura (Ventura County). CDVA is also designing and constructing three new homes in West Los Angeles (Los Angeles County), Fresno (Fresno County), and Redding (Shasta County).
  2. Legislative history: AB 357 (Horton), Chapter 143, Statutes of 2005, authorized the addition of a virtually identical VCF called the Veterans' Quality of Life Fund to augment the amount of money available to the state's veterans homes. The Veterans' Quality of Life Fund appeared on the 2005 and 2006 tax returns in calendar years 2006 and 2007, respectively. The prior fund received $135,345 in 2006 and $168,146 in 2007. For tax years beginning on or after January 1, 2007, the fund needed to meet a minimum contribution threshold of $250,000 but failed to do so, and as a result, the fund ceased to be operative.
  3. Related legislation: AB 658 (Hayashi) would authorize the addition of the California Police Activities League Fund to the PIT form. AB 658 is currently on the Assembly Floor.

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

Vote Record
Assembly Ayes: Anthony Adams, Joel Anderson, Juan Arambula, Jim Beall, Jr, Bill Berryhill, Tom Berryhill, Sam Blakeslee, Marty Block, Bob Blumenfield, Steven Bradford, Julia Brownley, Joan Buchanan, Anna Caballero, Charles Calderon, Wesley Chesbro, Connie Conway, Paul Cook, Joe Coto, Mike Davis, Hector De La Torre, Kevin de León, Chuck DeVore, Bill Emmerson, Mike Eng, Noreen Evans, Mike Feuer, Nathan Fletcher, Paul Fong, Felipe Fuentes, Jean Fuller, Warren Furutani, Ted Gaines, Cathleen Galgiani, Martin Garrick, Danny Gilmore, Curt Hagman, Diane Harkey, Mary Hayashi, Edward Hernandez, Jerry Hill, Alyson Huber, Jared Huffman, Kevin Jeffries, Dave Jones, Steve Knight, Ted Lieu, Dan Logue, Bonnie Lowenthal, Fiona Ma, Tony Mendoza, Jeff Miller, William Monning, Pedro Nava, Brian Nestande, Jim Nielsen, John Pérez, Anthony Portantino, Ira Ruskin, Mary Salas, Lori Saldaña, Jim Silva, Nancy Skinner, Cameron Smyth, Jose Solorio, Audra Strickland, Sandré Swanson, Norma Torres, Alberto Torrico, Van Tran, Michael Villines, Mariko Yamada