AMENDED IN SENIOR SENATE OCTOBER 18, 2005

SENIOR ASSEMBLY PROPOSAL NO. 24

INTRODUCED BY SENIOR ASSEMBLY MEMBER KARR

LEGISLATIVE COUNSEL'S DIGEST

AP 24:  CALIFORNIA SENIOR LEGISLATURE.

UNDER THE PERSONAL INCOME TAX LAW, TAXPAYERS ARE ALLOWED, UNTIL JANUARY 1, 2010, TO CONTRIBUTE AMOUNTS IN EXCESS OF THEIR TAX LIABILITY FOR THE SUPPORT OF THE CALIFORNIA FUND FOR SENIOR CITIZENS.  EXISTING LAW PROVIDES FOR THE REPEAL OF THE CONTRIBUTION PROVISIONS FOR THESE FUNDS EITHER ON THE JANUARY 1 FOLLOWING THE CALENDAR YEAR FOR WHICH THE FRANCHISE TAX BOARD ESTIMATES THAT THE MINIMUM CONTRIBUTION AMOUNT WILL BE LESS THAN $250,000, OR AN ADJUSTED AMOUNT, OR ON JANUARY 1,2010, WHICHEVER COMES FIRST.

THIS MEASURE WOULD MEMORIALIZE THE LEGISLATURE AND THE GOVERNOR TO ENACT URGENCY LEGISLATION THAT WOULD PROVIDE THAT THE MINIMUM AMOUNT REQUIRED TO BE CONTRIBUTED TO THE CALIFORNIA FUND FOR SENIOR CITIZENS BE REDUCED TO $200,000 WITHOUT INDEXING IN ORDER FOR THE CALIFORNIA FUND FOR SENIOR CITIZENS TO REMAIN AN APPROVED TAX CHECKOFF PROGRAM ON THE STATE INCOME TAX FORM.

VOTE: MAJORITY.

AP 24: THE CALIFORNIA FUND FOR SENIOR CITIZENS TAX CHECKOFF

WHEREAS, UNDER EXISTING LAW, TAXPAYERS ARE ALLOWED, UNTIL JANUARY 1,2010, TO CONTRIBUTE AMOUNTS IN EXCESS OF THEIR TAX LIABILITY FOR THE SUPPORT OF THE CALIFORNIA FUND FOR SENIOR CITIZENS; AND

WHEREAS, UNDER EXISTING LAW, THE CONTRIBUTION PROVISIONS FOR THE CALIFORNIA FUND FOR SENIOR CITIZENS WILL BE REPEALED ON THE JANUARY 1 FOLLOWING THE CALENDAR YEAR FOR WHICH THE FRANCHISE TAX BOARD ESTIMATES THAT THE MINIMUM CONTRIBUTION AMOUNT WILL BE LESS THAN A SPECIFIED AMOUNT, OR ON JANUARY 1,2010,
WHICHEVER OCCURS FIRST. IN 2001, THE MINIMUM CONTRIBUTION AMOUNT WAS $250,000 AND FOR EACH YEAR THEREAFTER, THE MINIMUM CONTRIBUTION AMOUNT IS AN AMOUNT EQUAL TO THE PRODUCT OF THE MINIMUM ESTIMATED CONTRIBUTION AMOUNT FOR THE PRIOR YEAR MULTIPLIED BY AN INFLATION FACTOR ADJUSTMENT; AND

WHEREAS, THE CALIFORNIA FUND FOR SENIOR CITIZENS IS THE PRIMARY SOURCE OF FUNDING FOR THE CALIFORNIA SENIOR LEGISLATURE; AND

WHEREAS, OTHER ORGANIZATIONS DO NOT HAVE A MINIMUM REQUIREMENT TO MEET EACH YEAR OR DO NOT NEED TO INCREASE THE MINIMUM AMOUNT BY ADDING THE INFLATION FACTOR; AND

WHEREAS, BECAUSE THE REQUIRED INDEXED AMOUNT WAS $289,423 FOR THE 2004 TAX YEAR, THE CALIFORNIA SENIOR LEGISLATURE ALMOST LOST ITS PRIMARY SOURCE OF FUNDING FOR THE 2005 TAX YEAR; AND

WHEREAS, THE NEW AMOUNT REQUIRED FOR THE CALIFORNIA FUND FOR SENIOR CITIZENS TO REMAIN AN APPROVED TAX CHECKOFF PROGRAM ON THE STATE'S INCOME TAX RETURN FORMS WILL BE BASED ON THE $289,423 PLUS THE INDEX AMOUNT WHICH WILL BE AT LEAST 4.1 PERCENT SO THAT THE MINIMUM AMOUNT REQUIRED TO BE CONTRIBUTED FOR THE 2005 TAX YEAR WILL EXCEED $300,000; AND

WHEREAS, WITH SUCH INDEXING, THE CALIFORNIA FUND FOR SENIOR CITIZENS WILL SOON LOSE ITS STATUS AS AN APPROVED TAX CHECKOFF PROGRAM AS THE MINIMUM CONTRIBUTION REQUIREMENT INCREASES DRAMATICALLY EACH YEAR; AND

WHEREAS, AS THE MINIMUM REQUIREMENT RISES FASTER THAN THE INCOME OF SENIORS, WHO ARE THE PRIMARY CONTRIBUTORS TO THIS FUND, IT WILL BE INCREASINGLY DIFFICULT TO MEET THE REQUIREMENT; AND

WHEREAS, THE CALIFORNIA SENIOR LEGISLATURE IS THE ONLY NONPARTISAN GROUP IN THIS STATE WHOSE PURPOSE IS TO WRITE PROPOSALS THAT ADDRESS THE NEEDS OF SENIORS; AND

WHEREAS, THE CALIFORNIA SENIOR LEGISLATURE HAS CONSISTENTLY PROVIDED 10 TOP STATE PROPOSALS EVERY YEAR SINCE 1980; AND

WHEREAS, EVEN WITH CORPORATE DONORS OR GRANTS, THE PRIMARY FUNDS FOR THE OPERATION OF THE CALIFORNIA SENIOR LEGISLATURE COME FROM GENEROUS CITIZENS MAKING CONTRIBUTIONS TO THE CALIFORNIA FUND FOR SENIOR CITIZENS THROUGH THE STATE'S TAX CHECKOFF PROGRAM; AND

WHEREAS, THE CALIFORNIA SENIOR LEGISLATURE NEEDS STATUTORY CHANGES IN THE REVENUE AND TAXATION CODE TO MAINTAIN ITS FUNDING WHICH CAN BEST BE ACCOMPLISHED BY THE GOVERNOR AND LEGISLATURE WITH URGENCY LEGISLATION; NOW, THEREFORE, BE IT

RESOLVED, BY THE SENIOR SENATE AND THE SENIOR ASSEMBLY, JOINTLY, THAT THE SENIOR LEGISLATURE OF THE STATE OF CALIFORNIA AT ITS 2005 REGULAR SESSION, A MAJORITY OF THE MEMBERS VOTING THEREFOR, HEREBY PROPOSES THAT THE MINIMUM AMOUNT REQUIRED TO BE CONTRIBUTED BE REDUCED TO $200,000 WITHOUT INDEXING; AND BE IT FURTHER

RESOLVED, THAT THE SENIOR LEGISLATURE OF THE STATE OF CALIFORNIA RESPECTFULLY MEMORIALIZES THE LEGISLATURE AND THE GOVERNOR OF THE STATE OF CALIFORNIA TO ENACT APPROPRIATE LEGISLATION THAT WOULD ADDRESS THE CONCERNS SET FORTH IN THIS MEASURE, AND BE IT FURTHER

RESOLVED, THAT A COPY OF THIS MEASURE BE TRANSMITTED TO THE SPEAKER OF THE ASSEMBLY, THE PRESIDENT PRO TEMPORE OF THE SENATE, AND THE GOVERNOR OF THE STATE OF CALIFORNIA.