BILL ANALYSIS AB 1983 Page 1 ASSEMBLY THIRD READING AB 1983 (Torrico) As Amended May 4, 2010 Majority vote REVENUE & TAXATION 9-0 APPROPRIATIONS 14-0 ----------------------------------------------------------------- |Ayes:|Portantino, Conway, |Ayes:|Fuentes, Conway, Ammiano, | | |Beall, | |Coto, Davis, Bonnie | | |Charles Calderon, Coto, | |Lowenthal, Hall, Harkey, | | |Fuentes, Harkey, | |Miller, Nielsen, Skinner, | | |Nestande, Saldana | |Solorio, Torlakson, Hill | | | | | | ----------------------------------------------------------------- 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 AB 1983 Page 2 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. 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 : 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." 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." Committee Staff Comments: The Safely Surrendered Baby Law: In AB 1983 Page 3 April of 2008, the California State Auditor issued a report on the Safely Surrendered Baby Law. The report highlighted the following issues: 1)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. 2)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. 3)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. 4)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. 5)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. Similar legislation: 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 Analysis Prepared by : M. David Ruff / REV. & TAX. / (916) 319-2098 FN: 0004068