BILL NUMBER: AB 108	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Members Benoit, Cook, and Sharon Runner
   (Principal coauthors: Assembly Members Adams, Garcia, and
Jeffries)
   (Coauthors: Assembly Members Alarcon, Fuller, Krekorian, and Maze)

   (Coauthors: Senators Cox, Dutton, Harman, Hollingsworth, and
Wyland)

                        JANUARY 4, 2007

   An act to add Section 23709.5 to the Revenue and Taxation Code,
relating to taxation, to take effect immediately, tax levy.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 108, as introduced, Benoit. Taxation: California Fallen
Firefighters Assistance Tax Clarification Act of 2006.
   The Corporation Tax Law exempts certain organizations from
taxation, as provided.
   This bill would provide that payments made by an exempt
organization, as defined, on or after October 26, 2006, to any family
member of a firefighter who died as a result of the October 2006
Esperanza Incident fire in southern California would be treated as
payments made in furtherance of the charitable purpose of that
organization. This bill would make a legislative finding and
declaration relating to the public purpose served by the bill.
   This bill would take effect immediately as a tax levy.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  This act shall be known and may be cited as the
California Fallen Firefighters Assistance Tax Clarification Act of
2006.
  SEC. 2.  Section 23709.5 is added to the Revenue and Taxation Code,
to read:
   23709.5.  (a) For purposes of Part 10 (commencing with Section
17001), Part 10.2 (commencing with Section 18401), and this part,
payments made on behalf of any firefighter who died as a result of
the October 2006 Esperanza Incident fire in southern California, to
any family member of such firefighter by an organization described in
paragraph (1) or (2) of Section 509(a) of the Internal Revenue Code
shall be treated as related to the purpose or function constituting
the basis for that organization's exemption under this chapter if the
payments are made in good faith using a reasonable and objective
formula which are consistently applied.
   (b) Subdivision (a) shall apply only to payments made on or after
October 26, 2006.
  SEC. 3.  The Legislature finds and declares that the enactment of
this act and the retroactive application provided by Section 2 of
this act are necessary for the public purpose of providing relief
under California law, by treating payments made by an organization to
any family member of any firefighter who died as result of the
Esperanza Incident fire in southern California, as payments made in
furtherance of the charitable purpose of that organization in order
to prevent the loss of that organization's tax exempt status.
  SEC. 4.  This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.