BILL ANALYSIS �
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|SENATE RULES COMMITTEE | AB 1561|
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THIRD READING
Bill No: AB 1561
Author: Rodriguez (D)
Amended: 4/2/14 in Assembly
Vote: 21
SENATE GOVERNANCE & FINANCE COMMITTEE : 7-0, 6/11/14
AYES: Wolk, Knight, Beall, DeSaulnier, Hernandez, Liu, Walters
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : 75-0, 4/24/14 - See last page for vote
SUBJECT : Taxpayer contributions: California firefighters'
and peace officer memorial funds
SOURCE : California Association of Highway Patrolmen
California Department of Forestry Firefighters
California Professional Firefighters
Peace Officers Research Association of California
DIGEST : This bill extends, from 2016 to 2021, the repeal
dates for the California Firefighters' Memorial Fund (CFMF) and
the California Peace Officer Memorial Fund (CPOMF) tax
check-offs on the state personal income tax form.
ANALYSIS : Existing law allows taxpayers to contribute to one
or more of 20 voluntary contribution funds, known as VCFs or
check-offs, by checking a box on their state income tax return.
California law requires check-off contributions to be made from
taxpayers' own resources and not from their tax liability, as is
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possible on federal tax returns. Check-off amounts may be
claimed as charitable contributions on taxpayers' tax returns in
the subsequent year.
The Franchise Tax Board (FTB) designs tax forms to provide for
the designation of contributions to specified funds either on
the return itself or on a separate schedule that must be
attached to the return. With a few exceptions, VCFs remain on
the tax form until they either are repealed by a sunset date or
fail to meet a minimum contribution amount. Minimum
contribution amounts are adjusted annually for inflation, with
specific exceptions. For most VCFs, the minimum contribution
amount is $250,000, beginning in the fund's second year.
By September 1 of each year, the FTB must determine the minimum
contribution amount required for each fund to remain on the form
for the following calendar year and estimate whether
contributions to each fund meet that amount. If the FTB
estimates that a fund will fail to meet its minimum contribution
amount, that fund is repealed for the following calendar year.
The following check-offs do not have a minimum contribution
requirement:
California Firefighters' Memorial Foundation Fund,
California Peace Officer Memorial Foundation Fund, and
California Seniors Special Fund.
This bill extends, from 2016 to 2021, the repeal dates for the
CFMF and the CPOMF tax check-offs on the tax form.
Background
Proceeds from tax check-offs are dedicated to a range of
programs. The following list provides information on current
tax check-offs and how contributions are administered. This
list does not reflect tax contributions that have been repealed
under the terms of their statutes.
------------------------------------------------------------
|Voluntary | 2013 | Contribution Allotment |
|Contribution Fund |Contribution| |
| | s | |
|---------------------+------------+-------------------------|
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|Alzheimer's | $405,080 | As many as contract or |
|Disease/Related | | receive grants provided |
|Disorders Fund | | by the monies |
| | | contributed. |
|---------------------+------------+-------------------------|
|American Red Cross, |Initial Tax | To the Office of |
|California Chapter | Return | Emergency Services for |
| | 2013 | distribution to the |
| | | American Red Cross. |
| | | |
|---------------------+------------+-------------------------|
|CA Breast Cancer | $369,425 | As many as apply and |
|Research Fund | | receive grants provided |
| | | from the monies |
| | | contributed. |
|---------------------+------------+-------------------------|
|CA Cancer Research | $389,759 | As many as apply and |
|Fund | | receive grants provided |
| | | from the monies |
| | | contributed. |
|---------------------+------------+-------------------------|
|CFMF | $126,158 | California Fire |
| | | Foundation. |
|---------------------+------------+-------------------------|
|CA Fund for Senior | $234,247 | California Senior |
|Citizens | | Legislature. |
|---------------------+------------+-------------------------|
|CA Peace Officer | $128,581 | California Peace |
|Memorial Foundation | | Officer Memorial |
|Fund | | Commission. |
|---------------------+------------+-------------------------|
|CA Sea Otter Fund | $307,544 | Department of Fish and |
| | | Wildlife (DFW), and as |
| | | many as apply for |
| | | grants and contracts |
| | | provided for by 50% of |
| | | contributions. |
|---------------------+------------+-------------------------|
|CA Seniors Special | $60,961 | The first $80K to the |
|Fund | | Area Agency on Aging |
| | | Advisory Council of |
| | | California and the rest |
| | | to area agencies as |
| | | allocated by the |
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| | | California Department |
| | | of Aging. |
|---------------------+------------+-------------------------|
|CA YMCA Youth and | $72,435 | The first $300K to the |
|Government Fund | | CA YMCA Youth and |
| | | Government Program. |
| | | The rest is allocated |
| | | in $10K annual grants |
| | | to the: African |
| | | American Leaders for |
| | | Tomorrow Program, Asian |
| | | Pacific Youth |
| | | Leadership Project, |
| | | Chicano Latino Youth |
| | | Leadership Project. |
| | | Remaining funds |
| | | allocated to the CA |
| | | YMCA Youth and |
| | | Government Program, |
| | | whose board may award |
| | | additional $10K annual |
| | | grants to additional |
| | | nonprofit civic youth |
| | |organizations. |
|---------------------+------------+-------------------------|
|CA Youth Leadership | $55,505 | To the Department of |
|Fund | | Education to provide |
| | | for the CA Youth |
| | | Leadership Project. |
|---------------------+------------+-------------------------|
|Child Victims of | $220,119 | As many counseling and |
|Human Trafficking | | prevention centers that |
|Fund | | apply and receive |
| | | grants provided from |
| | | monies contributed. |
|---------------------+------------+-------------------------|
|Emergency Food for | $459,291 | To the Department of |
|Families Fund | | Social Services for the |
| | | Emergency Food |
| | | Assistance Program. |
|---------------------+------------+-------------------------|
|Keep Arts in Schools |Initial Tax | To the Arts Council for |
|Fund | Return | grants to organizations |
| | 2013 | providing parts |
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| | | programs in schools. |
|---------------------+------------+-------------------------|
|Municipal Shelter | $217,883 | As many as apply and |
|Spay-Neuter Fund | | receive grants provided |
| | | from the monies |
| | | contributed. |
|---------------------+------------+-------------------------|
|Protect Our Coast | Initial Tax | To the California |
|and Oceans Fund | Return | Coastal Commission to |
| | 2013 | provide grants to |
| | | organizations in |
| | | support of coastal |
| | | resource programs and |
| | | related educational |
| | |activities. |
|---------------------+------------+-------------------------|
|Rare & Endangered | $476,933 | DFW endangered |
|Species Preservation | | conservation programs. |
|Program | | |
|---------------------+------------+-------------------------|
|School Supplies for | $367,868 | As many as apply and |
|Homeless Children | | receive grants provided |
|Fund | | for by the monies |
| | | contributed. |
|---------------------+------------+-------------------------|
|State Children's | $305,438 | To the Department of |
|Trust for the | | Social Services for |
|Prevention of Child | | prevention and |
|Abuse | | intervention programs. |
|---------------------+------------+-------------------------|
|State Parks | $396,921 | As many as purchase a |
|Protection | | parks pass that can be |
|Fund/Parks Pass | | provided from the |
|Purchase | |monies contributed. |
| | | |
------------------------------------------------------------
Comments
This bill extends the repeal dates for both the CFMF and the
CPOMF tax check-offs on the tax form. Initially established in
1994, the CFMF has provided for the establishment and
maintenance of the California Firefighters Memorial on the
grounds of the State Capitol, as well as providing emotional and
financial assistance to families of fallen firefighters and the
broader firefighter community. Since 2010, the CFMF tax
check-off has raised more than $730,000 for these important
services. Similarly, established in 1999, the CPOMF tax
check-off was created to help establish and maintain the
California Peace Officer Memorial and provide support to the
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families of slain peace officers. Since 2010 the Fund has
raised more than $620,000 to support those efforts. This bill
will continue these successful programs which provide support
and services in recognition of fallen firefighters and peace
officers.
Prior/Related Legislation
AB 247 (Wagner, Chapter 670, Statutes of 2013) extends the
repeal date from 2015 to 2020 for the California Fund for Senior
Citizens tax check-off on the tax form.
AB 394 (Yamada, Chapter 671, Statutes of 2013) extends the
repeal date of the California Alzheimer's Disease and Related
Disorders Research Fund tax check-off on the tax form from 2015
to 2020.
AB 511 (Pan, Chapter 451, Statutes of 2013) creates the American
Red Cross, California Chapters Fund check-off on the tax form.
AB 1286 (Skinner, Chapter 664, Statutes of 2013) temporarily
suspends the annual inflation adjustment for minimum
contribution levels for the California Breast Cancer Research
Fund check-off on the tax form.
AB 1765 (Jones-Sawyer, 2014) establishes the Habitat for
Humanity Fund check-off on the tax form.
AB 1833 (Garcia, 2014) eliminates the minimum contribution
requirement for the California Fund for Senior Citizens.
AB 2012 (Morrell, 2014) eliminates the minimum contribution
requirement for the California Fund for Senior Citizens.
SB 116 (Liu, Chapter 222, Statutes of 2013) extends the repeal
date from 2014 to 2019 for the Emergency Food Assistance Program
check-off on the tax form.
SB 571 (Liu, Chapter 430, Statutes of 2013) creates the Art for
Kids Fund check-off on the tax form.
SB 761 (DeSaulnier, 2014) modifies state administration of funds
received through the School Supplies for Homeless Children Fund.
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SB 782 (DeSaulnier, 2014) creates the California Sexual Violence
Victim Services Fund tax check-off.
SB 987 (Monning, 2014) requires that the cost incurred by the
Department of Fish and Wildlife in taking measures to encourage
taxpayers to make contributions on their tax return be paid for
with money allocated to the California Sea Otter Fund.
SB 1207 (Wolk, 2014) establishes an administrative procedure for
qualified charities to apply and receive donations through a tax
check-off.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 6/24/14)
California Association of Highway Patrolmen (co-source)
California Department of Forestry Firefighters (co-source)
California Professional Firefighters (co-source)
Peace Officers Research Association of California (co-source)
AFSCME, AFL-CIO
Association for Los Angeles Deputy Sheriffs
California Fire Chiefs Association
California Narcotic Officers Association
California Police Chiefs Association
California State Board of Equalization
California State Sheriffs' Association
Los Angeles County Probation Officers' Union
Los Angeles Police Protective League
Riverside Sheriffs' Association
OPPOSITION : (Verified 6/24/14)
Department of Finance
ARGUMENTS IN SUPPORT : According to the author, "AB 1561 would
ensure that the Foundations are able to continue to receive a
critical source of funding for the Firefighters' and Peace
Officers' Memorial, while continuing to offer Californians an
opportunity to honor those public safety officers who have made
the ultimate sacrifice."
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ARGUMENTS IN OPPOSITION : The Department of Finance opposes
this bill for the following reasons:
Contributions to both of these funds are well below the
minimum contribution tests of other check-offs.
It is not clear that there is sufficient public support to
warrant continued placement of these voluntary contributions
on tax returns.
This bill could result in a continued General Fund revenue
loss of approximately $20,000 annually.
ASSEMBLY FLOOR : 75-0, 4/24/14
AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Bigelow, Bloom,
Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian
Calderon, Campos, Chau, Ch�vez, Chesbro, Conway, Cooley,
Dababneh, Dahle, Daly, Dickinson, Donnelly, Eggman, Fong, Fox,
Frazier, Beth Gaines, Garcia, Gatto, Gomez, Gonzalez, Gordon,
Gorell, Grove, Hagman, Hall, Roger Hern�ndez, Holden, Jones,
Jones-Sawyer, Levine, Linder, Logue, Lowenthal, Maienschein,
Medina, Melendez, Mullin, Muratsuchi, Nestande, Olsen, Pan,
Patterson, Perea, V. Manuel P�rez, Quirk, Quirk-Silva, Rendon,
Ridley-Thomas, Rodriguez, Salas, Skinner, Stone, Ting, Wagner,
Waldron, Weber, Wieckowski, Wilk, Williams, Yamada, John A.
P�rez
NO VOTE RECORDED: Gray, Harkey, Mansoor, Nazarian, Vacancy
AB:ke 6/24/14 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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