BILL NUMBER: SB 41	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  JANUARY 29, 2007

INTRODUCED BY   Senator Battin
    (   Principal   coauthors:  
Assembly Members   Benoit,  Carter,  
Cook,   and Garcia   ) 
    (   Coauthors:   Senators  
Aanestad,   Ackerman,   Alquist,  
Ashburn,   Calderon,   Cedillo,   Cogdill,
  Corbett,   Correa,   Cox,  
Denham,   Ducheny,   Dutton,   Florez,
  Harman,   Hollingsworth,  Kehoe, 
 Kuehl,   Lowenthal,   Machado,  
Maldonado,   Margett,   McClintock, 
Migden,   Negrete McLeod,   Oropeza,  
Padilla,   Perata,   Ridley-Thomas,  
Romero,   Runner,   Scott,   Simitian,
  Steinberg,   Torlakson,   Vincent, 
 Wiggins,   Wyland,   and Yee   )

    (   Coauthors:   Assembly Members 
 Adams,  Alarcon,   Berryhill,  
DeVore,   Emmerson,   Fuller,   Garrick,
  Horton,  Huff,   Jeffries,  
Krekorian,   Maze,   Richardson,   Sharon
Runner,   Silva,   Spitzer,   Strickland,
  and Tran   ) 

                        DECEMBER 21, 2006

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



	LEGISLATIVE COUNSEL'S DIGEST


   SB 41, as amended, Battin. 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, and before
June 1, 2007, to any family member of a firefighter who died as a
result of the October 2006 Esperanza Incident fire in 
southern   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, and before June 1, 2007. 
   SEC. 2.    (a) For purposes of Part 10 (commencing
with Section 17001), Part 10.2 (commencing with Section 18401), and
Part 11 (commencing with Section 23001) of the Revenue and Taxation
Code, 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
Chapter 4 (commencing with Section 23701) of Part 11 of the Revenue
and Taxation Code if the payments are made in good faith using a
reasonable and objective formula which is consistently applied. 

   (b) Subdivision (a) shall apply only to payments made on or after
October 26, 2006, and before June 1, 2007. 
  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 a result of the
Esperanza Incident fire in  southern California, 
 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.