BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 1561
                                                                  Page  1

          Date of Hearing:   April 9, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                   AB 1561 (Rodriguez) - As Amended:  April 2, 2014

          Policy Committee:                              Revenue &  
          Taxation     Vote:                            8-0

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

           SUMMARY  

          This bill extends the sunset dates for the California  
          Firefighters' Memorial Fund and the California Peace Officers'  
          Memorial Foundation Fund from January 1, 2016 to January 1,  
          2021, allowing each to remain on personal income tax returns  
          filed for taxable years through 2020.

           FISCAL EFFECT  

          No significant impact to the Franchise Tax Board's costs;  
          potential reduction in revenue for the General Fund of up to  
          $20,000 in 2016-17.

          The California Firefighters' Memorial Fund received total  
          contributions of $126,158 in 2013, $152,004 in 2012, and  
          $157,116 in 2011.  The California Peace Officers' Memorial  
          Foundation Fund received total contributions of $128,581 in  
          2013, $136,172 in 2012, and $137,782 in 2011.

           COMMENTS  

          1)  Purpose.   According to the author, extending the sunset date  
            of the voluntary state personal income tax check-offs will aid  
            the foundations in their efforts to continue to offer a place  
            of honor and remembrance for California's fallen public safety  
            officers, as well as protect those memorials as gathering  
            places where surviving family members and their communities  
            can honor their memory.

          2)  The Funds.   The two funds support the California Firefighters'  
            Memorial and the California Peace Officers' Memorial, both of  








                                                                  AB 1561
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            which serve as tributes to the men and women who have lost  
            their lives in service to their respective organizations.  The  
            two foundations supporting these memorials are statewide,  
            public benefit organizations funded in part through voluntary  
            taxpayer contributions generated through income tax checkoffs  
            on the personal income tax form.

            Generally, checkoffs for funds remain on the tax return form  
            until either repealed or the fund fails to meet its minimum  
            contribution amount.  The California Firefighters' Memorial  
            Fund and the California Peace Officers' Memorial Foundation  
            Fund are each set to repeal on January 1, 2016 and are not  
            subject to a minimum contribution amount.  Absent legislation  
            to extend the repeal date, these funds would last appear on  
            the 2015 tax return filed in 2016.

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