BILL ANALYSIS ------------------------------------------------------------ |SENATE RULES COMMITTEE | AB 1983| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ THIRD READING Bill No: AB 1983 Author: Torrico (D), et al Amended: 5/4/10 in Assembly Vote: 21 SENATE REVENUE & TAXATION COMMITTEE : 3-0, 6/23/10 AYES: Wolk, Alquist, Padilla NO VOTE RECORDED: Walters, Ashburn SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8 ASSEMBLY FLOOR : 71-1, 5/6/10 - See last page for vote SUBJECT : Income tax checkoff: Safely Surrendered Baby Fund SOURCE : Author DIGEST : This bill authorizes the addition of the Safely Surrendered Baby Fund checkoff to the personal income tax form upon the removal of another voluntary contribution fund from the form. ANALYSIS : Existing law: 1. Allows taxpayers to designate on their personal income tax (PIT) returns a contribution to any of 15 voluntary contribution funds (VCFs). CONTINUED AB 1983 Page 2 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. This bill: 1. Establishes the Safely Surrendered Baby Fund (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. B. To the 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 Web site 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 AB 1983 Page 3 the annual contribution amount will be less than $250,000, or an adjusted amount for subsequent years. Background: Safely Surrendered Baby Law Under this law, parents or other persons with lawful custody may surrender an infant 72 hours old or younger to safe-surrender sites without facing prosecution for child abandonment. A recent report by the State Auditor highlighted a number of issues related to the program, including the lack of state involvement, and instances of violations and misclassifications of information by local safe-surrender sites. Related Legislation This bill is nearly identical to AB 1049 (Torrico), 2009-10 Session, which passed both houses of the Legislature but was vetoed by the Governor. The veto message stated that "after careful and deliberative consideration, I do not believe it is necessary to sign this bill at this time." In addition to AB 1983, the following bills have been introduced this year: AB 658 (Hayashi) creates a VCF designation on the personal income tax return in order for taxpayers to contribute to the California Police Activities Fund (CALPAL). This bill is on the Senate Third Reading File. AB 1008 (Block) creates a VCF designation on the personal income tax form for taxpayers to contribute to the National Guard Education Assistance Fund. This bill is on the Senate Third Reading File. AB 1088 (Fletcher) creates a VCF designation on the personal income tax return in order for taxpayers to contribute to the Morale, Welfare, and Recreation Fund for each of the veterans' homes, as provided. This bill is on the Senate Third Reading File. AB 2017 (Hall) creates a VCF designation on the personal income tax return for taxpayers to contribute to the Young Men's Christian Association (YMCA) Youth and Government AB 1983 Page 4 Fund. This bill is on the Senate Third Reading File. SB 1076 (Price) creates a VCF designation on the personal income tax return for taxpayers to contribute to the Arts Council Fund. This bill has been held in the Senate Appropriations Committee. FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes Local: No FTB staff estimates annual revenue losses of roughly $15,000 beginning in fiscal year 2011-12. SUPPORT : (Verified 8/2/10) American Congress of Obstetricians and Gynecologists, District IX California Catholic Conference County Welfare Directors Association of California Planned Parenthood Affiliates of California ARGUMENTS IN SUPPORT : The author states that "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." ASSEMBLY FLOOR : AYES: Adams, Ammiano, Anderson, Arambula, Beall, Bill Berryhill, Tom Berryhill, Blakeslee, Blumenfield, AB 1983 Page 5 Bradford, Brownley, Buchanan, Caballero, Charles Calderon, Carter, Chesbro, Conway, Cook, Coto, Davis, De Leon, DeVore, Emmerson, Eng, Evans, Feuer, Fletcher, Fong, Fuentes, Fuller, Furutani, Gaines, Galgiani, Garrick, Hagman, Hall, Harkey, Hayashi, Hernandez, Hill, Huber, Huffman, Jeffries, Jones, Knight, Lieu, Logue, Bonnie Lowenthal, Ma, Miller, Nava, Nestande, Nielsen, V. Manuel Perez, Portantino, Ruskin, Salas, Saldana, Silva, Skinner, Smyth, Solorio, Audra Strickland, Swanson, Torlakson, Torres, Torrico, Tran, Villines, Yamada, John A. Perez NOES: Niello NO VOTE RECORDED: Bass, Block, De La Torre, Gilmore, Mendoza, Monning, Norby, Vacancy DLW:mw 8/3/10 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END ****