BILL ANALYSIS �
AB 1561
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Date of Hearing: March 24, 2014
ASSEMBLY COMMITTEE ON REVENUE AND TAXATION
Raul Bocanegra, Chair
AB 1561 (Rodriguez) - As Introduced: January 29, 2014
Majority vote. Fiscal committee.
SUBJECT : Taxpayer contributions: California firefighters' and
peace officer memorial funds
SUMMARY : Extends, from January 1, 2016, to January 1, 2026, 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 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 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.
e) Both the California Fire Foundation and the California
Peace Officers' Memorial Foundation are the official
statewide nonprofit, public benefit organizations in
receipt of the proceeds from two state PIT checkoff funds
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(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 Peace
Officers' Memorial Foundation 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 hosts 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, 2026, 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
amount to remain in effect, except for the Firefighters' Fund,
the Peace Officers' Fund, and the California Seniors Special
Fund.
FISCAL EFFECT : The Franchise Tax Board estimates that this bill
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would reduce General Fund revenues by $20,000 annually beginning
in Fiscal Year 2016-17.
COMMENTS :
1)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 2026, 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.
2)Proponents of this bill note the following:
An Annual Peace Officer Memorial Ceremony has been
conducted at the State Capitol since 1977. Senator Robert
Presley (former Riverside Sheriff) dedicated legislation
(SCR 94) to memorialize the downed officers whose names
were printed in a leather-bound book and enclosed in glass.
Funds were raised by private individuals to enable a
yearly gathering of the "police family" left behind.
Governor Deukmejian in 1985 again asked Senator Presley to
author a newer bill to establish an actual monument for the
fallen. That bill established a nine member CA Peace
Officers Commission which still oversees the official
statewide memorial non-profit public benefit organization.
Proceeds come to both Peace Officers and Firefighters
professional memorial organizations from two state personal
income tax check-offs. The Franchise Tax Board accounts
for the contributions received.
AB 1561 is basic to the core value of each law enforcement
officer and firefighter. This bill extends the check-off
sunset date from 2016 to 2026.
3)Committee staff comments:
a) The Firefighters' Fund : The Firefighters' Fund was
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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:
i) Maintain and repair the California Firefighters'
Memorial;
ii) Conduct ceremonies honoring the memory of fallen
firefighters;
iii) Assist surviving loved ones; and,
iv) Provide an information guide detailing survivor
benefits to assist the spouses and children of fallen
firefighters.
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, 2026.
b) 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
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January 1, 2026.
c) Related legislation and sunset extension practice : AB
1812 (Arambula), Chapter 160, Statutes of 2008, last
extended the sunset date, from January 1, 2011, to January
1, 2016, for both the Firefighters' Fund and the Peace
Officers' Fund. While AB 1812 (Arambula) extended the
sunset date by five years (in line with most sunset
extension bills), this bill instead extends the sunset date
by 10 years. The Committee may wish to consider whether to
amend this bill to provide for a five-year extension in
line with past practice.
d) Suggested technical amendments :
i) On page 2, in line 1, strike the first "The" and
insert "the";
ii) On page 2, in line 14, strike the first "The" and
insert "the";
iii) On page 2, in lines 20 and 21, strike "Fire
Fighters" and insert "Firefighters";
iv) On page 2, in line 22, strike the first "The" and
insert "the"; and,
v) On page 2, in line 31, strike "Officers'" and insert
"Officer".
REGISTERED SUPPORT / OPPOSITION :
Support
California Professional Firefighters (Co-Sponsor)
Peace Officers Research Association of California (Co-Sponsor)
American Federation of State, County, and Municipal Employees,
AFL-CIO
Association for Los Angeles Deputy Sheriffs
California Narcotic Officers' Association
California Police Chiefs Association
California State Sheriffs' Association
Los Angeles County Probation Officers' Union
Los Angeles Police Protective League
Los Angeles Professional Peace Officers' Association
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Riverside Sheriffs Association
Opposition
None on file
Analysis Prepared by : M. David Ruff / REV. & TAX. / (916)
319-2098