BILL ANALYSIS Ó
AB 1561
Page 1
ASSEMBLY THIRD READING
AB 1561 (Rodriguez)
As Amended April 2, 2014
Majority vote
REVENUE & TAXATION 8-0 APPROPRIATIONS 17-0
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|Ayes:|Bocanegra, Dahle, Gordon, |Ayes:|Gatto, Bigelow, Allen, |
| |Harkey, Mullin, Pan, V. | |Bocanegra, Bradford, Ian |
| |Manuel Pérez, Ting | |Calderon, Campos, |
| | | |Donnelly, Eggman, Gomez, |
| | | |Holden, Linder, Pan, |
| | | |Quirk, Ridley-Thomas, |
| | | |Wagner, Weber |
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SUMMARY : Extends, from January 1, 2016, to January 1, 2021, the
statutory sunset date for two voluntary contribution funds
(VCFs) on the state personal income tax (PIT) return.
Specifically, this bill :
1)Contains the following legislative findings:
a) The California Fire Foundation and the California Peace
Officers Memorial Foundation, Inc. have been at the center
of California's commitment to honor firefighters and law
enforcement officers who have given their lives in the line
of duty.
b) The California Firefighters Memorial and the California
Peace Officers Memorial were individually designed and
built, and are currently maintained, to memorialize forever
the dedication of the state's fallen heroes.
c) Both memorials serve as lasting tributes to the men and
women who gave their lives to help protect their fellow
Californians.
d) Each year, hundreds gather in Sacramento, California, as
the state joins together during ceremonies honoring and
remembering the firefighting and law enforcement personnel
who made the ultimate sacrifice to keep California safe.
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e) Both the California Fire Foundation and the California
Peace Officers Memorial Foundation, Inc. are the official
statewide nonprofit, public benefit organizations in
receipt of the proceeds from two state PIT checkoff funds
(i.e., VCFs).
f) Voluntary taxpayer contributions, which are generated
through the two PIT checkoffs on the PIT form, are
earmarked specifically for the California Firefighters
Memorial and the California Peace Officers Memorial.
g) Both the California Fire Foundation and the California
Peace Officers Memorial Foundation, Inc. are charged with
funding ongoing maintenance and repair of their respective
memorials for the thousands who continue to visit these
sacred, solemn grounds, while each also host an annual
memorial ceremony to honor our brave firefighters, law
enforcement officers, and the families they leave behind.
h) Extending the sunset date of the voluntary contributions
to the California Firefighters' Memorial Fund
(Firefighters' Fund) and the California Peace Officer
Memorial Foundation Fund (Peace Officers' Fund) for state
PIT checkoffs is appropriate, and doing so will continue to
allow these foundations to carry out the important goal of
ensuring the memorial sites remain sacred ground for all
Californians to remember and reflect upon the contributions
and sacrifices of our state's bravest.
2)Extends, from January 1, 2016, to January 1, 2021, the
statutory provisions that authorize the Firefighters' Fund and
the Peace Officers' Fund.
EXISTING LAW :
1)Allows taxpayers to contribute to one or more of 20 VCFs on
the 2013 PIT return.
2)Provides a specific sunset date for each VCF, except for the
California Seniors Special Fund and the State Parks Protection
Fund.
3)Requires each VCF to meet an annual minimum contribution
AB 1561
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amount to remain in effect, except for the Firefighters' Fund,
the Peace Officers' Fund, and the California Seniors Special
Fund.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, 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.
COMMENTS : The author has provided the following statement in
support of this bill:
It is important that we continue to invest in a
lasting tribute to the firefighters and police
officers who made the ultimate sacrifice to protect
our communities. By extending the sunset date of the
voluntary state personal income tax check-offs to
[2021], AB 1561 will aid these 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 these memorials as
gathering places where surviving family members and
their communities can honor their memory.
Assembly Revenue and Taxation Committee staff comments:
1)The Firefighters' Fund: The Firefighters' Fund was first
added to the 1993 state PIT return to facilitate contributions
for the construction of a memorial to California firefighters
on the grounds of the State Capitol. Fund moneys are
allocated to the California Fire Foundation, and may currently
be used to:
a) Maintain and repair the California Firefighters'
Memorial;
b) Conduct ceremonies honoring the memory of fallen
firefighters;
c) Assist surviving loved ones; and,
d) Provide an information guide detailing survivor benefits
to assist the spouses and children of fallen firefighters.
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Contributions to the Firefighters' Fund have declined steadily
in recent years. In 2010, the Firefighters' Fund received
$207,455 in valid contributions, while 2013 saw $126,158 in
valid contributions. As noted above, however, the
Firefighters' Fund is one of only three VCFs not subject to a
minimum contribution threshold.
The statutory provisions authorizing the Firefighters' Fund
are set to sunset on January 1, 2016. This bill extends the
sunset date to January 1, 2021.
2 The Peace Officers' Fund: The Peace Officers' Fund was first
added to the 1999 state PIT return. Pursuant to Revenue and
Taxation Code Section 18807(b), fund moneys are allocated to
the California Department of Highway Patrol for distribution
to the California Peace Officer Memorial Commission for
building and maintaining the California Peace Officer Memorial
in Sacramento, California, and for activities performed by the
California Peace Officer Memorial Foundation in support of
families of slain peace officers.
The Peace Officers' Fund received valid contributions of
$128,581 in 2013, but, as with the Firefighters' Fund, is not
subject to a minimum contribution threshold. The statutory
provisions authorizing the fund are set to sunset on January
1, 2016, and this bill extends that date to January 1, 2021.
Analysis Prepared by : M. David Ruff / REV. & TAX. / (916)
319-2098
FN: 0003190