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 Page 2 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 Generally, checkoffs for funds remain on the tax return form until either repealed or the fund fails to meet its minimum contribution amount.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