Colorado Legislative Council Staff

STATE

FISCAL NOTE

General Fund Revenue Impact


Drafting Number:

Prime Sponsor(s):

LLS 98-107

Rep. Dean

Sen. Tebedo

Date:

Bill Status:

Fiscal Analyst:

January 2, 1998

House Finance

Steve Tammeus (866-2756)

 

TITLE:            CONCERNING THE TAXABILITY OF SURVIVOR BENEFITS PAYABLE TO THE SURVIVORS OF A MEMBER OF THE STATEWIDE DEATH AND DISABILITY PLAN.



Summary of Legislation


STATE FISCAL IMPACT SUMMARY

FY 1998/99

FY 1999/2000

State Revenues

General Fund

Other Fund


Insignificant Reduction


Insignificant Reduction

State Expenditures

General Fund

Other Fund


 


 

FTE Position Change

None

None

Local Government Impact — None.


            This bill adds certain benefits for the beneficiary of any member of a fire and police new hire pension plan who is not eligible for the normal retirement pension who dies while in active service as the direct and proximate result of a personal injury sustained while performing official duties, or as a result of an occupational disease arising out of and in the course of the members’ employment.


            The bill requires the Board of the Fire and Police Pension Association (FPPA) to promulgate rules to specify standards and establish procedures for evaluating and qualifying the conditions of the member’s death. The bill authorizes the board to appoint hearing officers to conduct hearings. The bill requires the board, in the case of a line of duty death occurring after December 31, 1996, to determine whether any of the exceptions in section 101(h)(2) of the federal internal revenue code are applicable. This provision would exclude the benefits paid to the survivors of deceased police officers of firefighters as a result of on-duty personal injuries or service-related or occupational diseases from the recipient’s taxable federal gross income.


            This bill will not affect local government revenue or expenditures, or state expenditures. The bill will, however, affect state General Fund revenue. Therefore, the bill is assessed as having a fiscal impact.


            The bill will become effective upon signature of the Governor and 60 days after the FPPA receives a letter from the internal revenue service with a favorable ruling that benefits paid to survivors are excludable from gross income for tax purposes.  


 

State Revenues


            This bill would exclude the benefits paid to the survivors of deceased police officers of firefighters as a result of on-duty personal injuries or service-related or occupational diseases from the recipient’s taxable federal gross income. This reduction in taxable federal income will also reduce the recipient’s taxable state income which will reduce annual state General Fund revenue. However, the reduction is considered to be insignificant and has not been estimated.



Fire and Police Pension Association Impact

            

              The bill does not affect state or local government contributions to the plans, or distributions from the plans. The FPPA will be able to absorb within existing resources any additional administrative expenditures to promulgate rules, conduct hearings, or employ hearing officers.



Spending Authority


            This fiscal note would imply that no additional spending authority is required to implement the provisions of the bill for FY 1998-99.



Departments Contacted


            Fire and Police Pension Association              Local Affairs              Revenue