Sb 361: Law Enforcement Strategic Support Act

• Jurisdiction: Georgia,United States
• Citation: Vol. 39 No. 1
• Publication year: 2022
• topic: Business of Law,Civil Rights,Tax Law,Criminal Law,Public Sector Law

SB 361: Law Enforcement Strategic Support Act

Adenike Tijani

atijani1@student.gsu.edu

Adelarin Yemi-Sofumade

ayemisofumade1@student.gsu.edu

[Page 263]

REVENUE AND TAXATION

Income Taxes: Amend Chapter 7 of Title 48 of the Official Code of Georgia Annotated, Relating to Income Taxes, so as to Enact the Law Enforcement Strategic Support Act (LESS Crime Act); Provide for Tax Credits for Certain Contributions Made by Taxpayers to Certain Local Law Enforcement Foundations; Provide for an Aggregate Annual Limit; Provide for Terms and Conditions; Provide for Applications and Certifications; Provide for the Revocation of Qualified Status; Provide for Certain Penalties; Require Annual Reporting; Provide for Rules and Regulations; Provide for Construction; Provide for a Short Title; Provide for Related Matters; Provide for an Effective Date and Applicability; Repeal Conflicting Laws; and for Other Purposes

Code Section: O.C.G.A. § 48-7-29.25 (new)

Bill Number: SB 361

Act Number: 856

Georgia Laws: 2022 Ga. Laws 716

Effective Date: July 1, 2022

Summary: This Act provides a new income tax credit for individuals, LLC members, partnership partners, and S-corporation shareholders ranging from $5,000-$10,000 for donations to law enforcement foundations, defined as domestic nonprofit corporations with the sole function of supporting local law enforcement units. The Act caps credits for all taxpayers at $75 million per year.

History

From 1977 to 2017, Georgia increased police spending by 122%, mainly through local government funding.¹ However, George Floyd's

[Page 264]

murder in May 2020 sparked widespread Black Lives Matter protests and nurtured the "#defundthepolice" movement.² As progressive and conservative political voices debated police reform and a need for greater police accountability nationwide, cities and towns began to scrutinize local police budget allocations.³ City councils struggled to decide how to bridge the political divide, but ultimately Georgia's police funding did not decrease.⁴ Immediately after Floyd's death, the Atlanta City Council contemplated withholding $73 million in police funding while considering changes to public safety initiatives.⁵ This plan failed by a vote of 8 to 7, and the $73 million was released to the Atlanta Police Department (APD).⁶ In 2021, Atlanta increased the overall police budget to $230 million.⁷ Governor Brian Kemp (R), concerned with ongoing defund-the-police messages, signed House Bill (HB) 286 on May 7, 2021, ensuring that local law enforcement funding was reduced by no more than 5% annually.⁸ In direct response to calls to defund the police, Governor Kemp stated, "Radical movements like the defund the police movement seek to vilify the men and women who leave their families every day and put their lives on the line to protect all Georgians."⁹ He further stated, "This far-left

[Page 265]

movement will endanger our communities and our law enforcement officers and leave our most vulnerable at risk."¹⁰

When HB 286 was signed into law, only three Democrats voted in favor of the bill, demonstrating the political divide on police funding, police accountability, and public safety concerns.¹¹ Senator Sonya Halpern (D-39th) explained that George Floyd's death and police funding appear to be at odds with each other, but in reality, they both represent larger issues of public safety and police accountability, which are not mutually exclusive.¹² Instead, Georgians should be able to consider public safety while pushing for increased police accountability "because public safety is something that is absolutely on everybody's mind across every neighborhood in this city."¹³

Buckhead, one of the wealthiest neighborhoods in Atlanta, is attempting to secede from the City of Atlanta and form its own municipality as an unconventional approach to address public safety.¹⁴ Some Buckhead residents believe that the increased autonomy will allow more focused funding to improve policing and public safety.¹⁵ Supporters of the new municipality argue that APD "has failed them" and secession will allow for "different and more effective law enforcement presence."¹⁶ Buckhead residents are, in essence, seeking ways to address public safety locally.¹⁷ Secession critics argue that the split will not reduce crime rates because criminals do not "care about arbitrary neighborhood lines."¹⁸ Save erecting a "physical barrier" around Buckhead, critics argue, criminals will continue to target the wealthiest neighborhood in metro Atlanta.¹⁹

Senate Bill (SB) 361, the Law Enforcement Strategic Support Act (LESS Crime Act), was introduced in January 2022.²⁰ According to

[Page 266]

bill sponsor Senator Larry Walker III (R-20th), the bill was first introduced to address the spike in violent crimes while retaining and supporting police officers.²¹ The legislation provides a much-needed additional layer of support and protection for public safety because it empowers citizens to financially contribute to local law enforcement.²² The legislation also enables Georgians to get more involved with local public safety initiatives, thereby building a more unified community.²³

During the 2022 legislative session, Lieutenant Governor Geoff Duncan (R) placed a heavy emphasis on public safety and unveiled the LESS Crime Act as the cornerstone of his plan to incentivize the community to partner with law enforcement to reduce crime.²⁴ Lieutenant Governor Duncan acknowledged that to accomplish this goal, the bill would need to take "a bipartisan approach to enhancing public safety while engaging directly with local community members."²⁵ Indeed, the bill passed the Senate with unanimous support.²⁶

The LESS Crime Act was "[m]odeled after Georgia's groundbreaking Rural Hospital Tax Credit [Program]," which Lieutenant Governor Duncan also introduced.²⁷ The program, effective on January 1, 2017, allows rural Georgian hospitals to access up to $60 million in tax credits each year, with each hospital having access to $4 million in tax credits.²⁸ The Rural Hospital Tax Credit

[Page 267]

Program, however, did not initially serve its intended purpose.²⁹ A 2018 Georgia Department of Audits and Accounts report noted that tax credit contributions were not reaching "the neediest rural hospitals."³⁰ By 2019, however, "Dorminy Medical Center in Fitzgerald, ranked as the neediest rural hospital, received the $4 million limit[,] . . . all in undesignated contributions."³¹ Senator Halpern noted that while the Rural Hospital Tax Credit Program faced a few stumbling blocks, its ultimately successful formula of increasing resources through individual-community partnerships inspired the LESS Crime Act.³²

The LESS Crime Act emphasizes government and police accountability and includes strict requirements and restrictions on how tax credits can be obtained and spent.³³ In a press release, Lieutenant Governor Duncan stated that the donations from tax credits must be used to "[i]ncrease officer salaries[;] [h]ire additional law enforcement personnel[;] [e]xpand police training programs[;] [p]urchase or maintain department equipment[; and] [e]stablish or maintain an existing co-responder program that is dedicated to addressing mental health-related emergencies."³⁴

The LESS Crime Act has been hailed as an innovative and creative way to address public safety concerns through community partnerships so that the tragedies of the last few years do not repeat themselves.³⁵ Indeed, Senator Halpern praised Lieutenant Governor Duncan for "taking a bipartisan approach to making our communities safe while prioritizing modern policing methods that promote law enforcement collaboration with mental health professionals."³⁶

[Page 268]

Bill Tracking of SB 361

Consideration and Passage by the Senate

Senator Larry Walker III (R-20th) sponsored SB 361, with Senator Ed Harbison (D-15th), Senator Jeff Mullis (R-53rd), Senator Bill Cowsert (R-46th), Senator John Albers (R-56th), and others cosponsoring.³⁷ The bill was placed in the Senate hopper on January 24, 2022.³⁸ On January 25, 2022, the Senate read SB 361 for the first time and then referred the bill to the Senate Finance Committee.³⁹

The Senate Finance Committee favorably reported the bill by substitute on February 3, 2022.⁴⁰ The substitute included new language that capped the total amount of contributions that any foundation could accept at $5 million each year.⁴¹ The substitute also eliminated the language requiring participating foundations to annually submit a Schedule H tax form.⁴² Furthermore, language that would automatically repeal and reserve the Code section on January 1, 2028, was removed.⁴³

The Senate read SB 361 for the second time on February 7, 2022, and for the third time on February 10, 2022.⁴⁴ On February 10, 2022, the Senate called SB 361 to the floor for consideration, and the bill

[Page 269]

received an initial vote of 32 to 22.⁴⁵ The naysayers opposed the bill because at first glance, it appeared to be a tax credit program that removed tax money from the State's coffers only to benefit law enforcement.⁴⁶ The bill's sponsors explained that SB 361 was meant to improve law enforcement's operations and responses to mental health crises and to foster the relationship between law enforcement and local communities.⁴⁷ The Senate subsequently passed the Committee substitute on February 10, 2022, by a vote of 52 to 0.⁴⁸

Consideration and Passage by the House of Representatives

Representative Houston Gaines (R-117th) sponsored the bill in the House.⁴⁹ The House first read the bill on February 11, 2022, and read the bill for a second time on February 14, 2022.⁵⁰ The House Ways and Means Committee favorably reported the bill by substitute on March 29, 2022, with many changes.⁵¹

The Ways and Means Committee substitute decreased the aggregate amount of tax credits allowed to $60 million per calendar year, rather than $100 million.⁵² The substitute also decreased each law enforcement foundation's allowable...