[Congressional Record Volume 147, Number 66 (Tuesday, May 15, 2001)]
[Senate]
[Pages S4943-S4944]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. HATCH (for himself and Mr. Biden):
  S. 881. A bill to amend the Taxpayer Relief Act of 1997 to provide 
for consistent treatment of survivor benefits for public safety 
officers killed in the line of duty; to the Committee on Finance.
  Mr. HATCH. Mr. President, today, my good friend and colleague, 
Senator Biden, and I are introducing legislation we have drafted to 
help ease the burden of those whose husband or wife or father or mother 
was a public safety officer and has made the ultimate sacrifice and 
died while protecting the citizens of this Nation. I am speaking of the 
families of law enforcement officers, firefighters, and rescue squad or 
ambulance crew members who have lost a loved one in the line of duty.
  The Hatch-Biden bill we introduce in the Senate today, the Fallen 
Hero Survivor Benefit Fairness Act of 2001, is designed to make annuity 
benefits for survivors of public safety officers killed in the line of 
duty tax free, so long as the annuity is provided under a governmental 
plan to the surviving spouse or to the child of the deceased officer.
  In the Taxpayer Relief Act of 1997, Congress took an important step 
in showing our appreciation for this country's fallen heroes by 
exempting from taxation survivor benefits for those killed in the line 
of duty after December 31, 1996. This change has undoubtedly made a 
significant difference to many such surviving families.
  But what about the families of fallen heroes who died before that 
date? Should not their government-provided survivor annuities be tax-
free as well? Of course they should.
  This bill provides tax equity for those survivors receiving annuities 
for officers who died on or before December 31, 1996. We must make this 
tax-free treatment available for all survivors of peace officers who 
gave their lives to make this great country a

[[Page S4944]]

safer place for us all to live. The tax correction in this bill would 
not be retroactive. Rather, it provides that payments from a qualified 
survivor annuity received after December 31, 2001, would qualify for 
tax-free treatment, even if the peace officer was killed prior to the 
effective date of the Taxpayer Relief Act of 1997 provision.
  We are not talking about a great deal of money here. The Joint 
Committee on Taxation estimates this correction would result in about 
$5 million per year in lost revenue or a total cost of $46 million over 
10 years. This is not a high price to pay to show this country's 
gratitude for the service these men and women who are public safety 
officers perform each day when they leave their homes, the risks they 
take, and for the ultimate sacrifice some of them have made.
  Last week, the House Committee on Ways and Means approved identical 
legislation to correct this problem, and I am told the bill is coming 
before the entire House for a vote today. Mr. President, this week (May 
13-19, 2001) is National Police Week. Although it does not begin to pay 
our debt to these men and women and their survivors, I cannot think of 
a better way to honor those public service officers who have died in 
the line of duty than to pass bills like this one that recognize their 
sacrifices and attempt to help their survivors with their burdens. I 
hope our colleagues will join us in cosponsoring this bill and in 
passing this legislation this week.
  Mr. President, I ask unanimous consent that the bill be printed in 
the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 881

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Fallen Hero Survivor Benefit 
     Fairness Act of 2001''.

     SEC. 2. CONSISTENT TREATMENT OF SURVIVOR BENEFITS FOR PUBLIC 
                   SAFETY OFFICERS KILLED IN THE LINE OF DUTY.

       Subsection (b) of section 1528 of the Taxpayer Relief Act 
     of 1997 (Public Law 105-34) is amended by striking the period 
     and inserting ``, and to amounts received in taxable years 
     beginning after December 31, 2001, with respect to 
     individuals dying on or before December 31, 1996.''.
                                 ______