BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1983
                                                                  Page  1

          Date of Hearing:  April 19, 2010

                     ASSEMBLY COMMITTEE ON REVENUE AND TAXATION
                            Anthony J. Portantino, Chair

                AB 1983 (Torrico) - As Introduced:  February 17, 2010

          Majority vote.  Fiscal committee.

           SUBJECT  :  Personal income taxes:  voluntary contributions:   
          Safely Surrendered Baby Fund

           SUMMARY  :  Authorizes the addition of the Safely Surrendered Baby  
          Fund (Fund) checkoff to the personal income tax (PIT) form upon  
          the removal of another voluntary contribution fund (VCF) from  
          the form.  Specifically,  this bill  :

          1)Establishes the Fund in the State Treasury. 

          2)Provides that all money transferred to the Fund, upon  
            appropriation by the Legislature, shall be allocated as  
            follows:

             a)   To the Franchise Tax Board (FTB) and the State  
               Controller for reimbursement of costs incurred in  
               administering the checkoff; and,

             b)   To the State Department of Social Services (DSS) for  
               programs to increase public awareness and outreach  
               regarding the Safely Surrendered Baby Law, including public  
               service announcements in English and Spanish,  
               safe-surrender hotlines, a DSS Internet Website with a  
               comprehensive list of safe-surrender sites, education, and  
               training for communities and schools.

          3)Provides that DSS shall not be required to spend any funds,  
            other than those allocated from the Fund, for Fund-related  
            activities.  

          4)Provides for the Fund provisions' automatic repeal on either  
            January 1 of the fifth taxable year following the taxable year  
            the VCF first appears on the PIT return or on January 1 of an  
            earlier year, if FTB estimates that the annual contribution  
            amount will be less than $250,000, or an adjusted amount for  
            subsequent years.  








                                                                  AB 1983
                                                                  Page  2


           EXISTING LAW :

          1)Allows taxpayers to designate on their PIT returns a  
            contribution to any of 15 VCFs.

          2)Provides a specific sunset date for each VCF, except the  
            California Seniors Special Fund.

          3)Provides that each VCF must meet a minimum annual contribution  
            amount to remain in effect, except for the California Seniors  
            Special Fund, the California Firefighters' Memorial Fund, and  
            the California Peace Officer Memorial Foundation Fund.  

          4)Allows parents or other persons with lawful custody to  
            surrender an infant 72 hours old or younger to safe-surrender  
            sites without facing prosecution for child abandonment.  

           FISCAL EFFECT  :  FTB staff estimates annual revenue losses of  
          roughly $15,000 beginning in fiscal year 2011-12.   

           COMMENTS  :

          1)The author states, "This bill is needed to provide an ongoing  
            Fund for the protection of the innocent lives of babies.  
            According to the State Auditor's report released in 2008, it  
            indicates that over 400 babies have been found to be abandoned  
            illegally in California. The purpose of this bill is to fund  
            outreach and to expand awareness on the Safely Surrendered  
            Baby Law."

          2)Proponents state, "The safe-surrender program has been in  
            existence since 2001, with more than 300 babies being safely  
            surrendered during that time frame.  However, publicity for  
            the program has been inconsistent, as a dedicated funding  
            source for outreach activities has never been provided.  AB  
            1983 would develop such a funding source, with the tax  
            check-off sunsetting five years after enactment.  This will  
            give lawmakers an opportunity to review the results of the  
            check-off and determine whether to reauthorize it."   
           
           3)Committee Staff Comments :  
           
              a)   The Safely Surrendered Baby Law  :  In April of 2008, the  
               California State Auditor issued a report on the Safely  








                                                                 AB 1983
                                                                  Page  3

               Surrendered Baby Law.  The report highlighted the following  
               issues:

               i)     Since 2006, state agencies have had virtually no  
                 legal obligations under the safe-surrender law - DSS's  
                 only involvement is compiling information that counties  
                 must submit when their designated sites accept  
                 surrendered babies;  

               ii)    No state agency currently publicizes the  
                 safe-surrender law nor has consistent funding been  
                 provided for raising the public's awareness of the law.   
                 DSS conducted a media campaign from October 2002 to  
                 December 2003, but has not developed any further goals  
                 for conducting additional activities; 

               iii)   Safe-surrender sites are violating state law by  
                 disclosing confidential information on parents who  
                 surrendered babies.  Of the 218 babies surrendered since  
                 2001, county files contained confidential information in  
                 24 cases, including 16 of the 176 cases occurring after  
                 the Legislature amended the law to protect personal  
                 identifying information;

               iv)    Counties have incorrectly classified babies as  
                 safely surrendered or abandoned.  Children improperly  
                 classified as safely surrendered may not be allowed  
                 access to information on their parents even though they  
                 may have the legal right to the information; and,

               v)     The vast majority of surrendered babies may not have  
                 access to critical medical information later in life  
                 because safe-surrender sites have difficulty in obtaining  
                 vital medical history information.  
                
              b)   Why is this Bill so Familiar?  :  Last year, the author  
               introduced AB 1049 (Torrico), which contained provisions  
               nearly identical to this bill.  Governor Schwarzenegger  
               vetoed the bill and provided the following veto message:

                    I have reviewed the merits of this bill.  After  
                    careful and deliberative consideration, I do not  
                    believe it is necessary to sign this bill at this  
                    time. 









                                                                  AB 1983
                                                                  Page  4

              c)   Related legislation  :  

               AB 2017 (Hall), introduced in the current legislative  
               session, authorizes the addition of the California YMCA  
               Youth and Government Fund checkoff to the personal income  
               tax form upon the removal of another voluntary contribution  
               fund from the form.  AB 2017 is scheduled to be heard in  
               this Committee on April 19, 2010.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          American Congress of Obstetricians and Gynecologists, District  
          IX 
          California Catholic Conference
          County Welfare Directors Association of California
          Planned Parenthood Affiliates of California

           Opposition 
           
          None on file 
           
          Analysis Prepared by  :  M. David Ruff / REV. & TAX. / (916)  
          319-2098