BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1049
                                                                  Page  1

          Date of Hearing:   May 13, 2009

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

                   AB 1049 (Torrico) - As Amended:  April 22, 2009 

          Policy Committee:                              Revenue and  
          Taxation     Vote:                            9-0
                       Health                                 19-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill (a) adds the Safely Surrendered Baby Fund to the list  
          of voluntary contribution funds included on the personal income  
          tax form and (b) requires the State Department of Social  
          Services (DSS) to submit an annual report to the Legislature  
          regarding the impact of the existing Safely Surrendered Baby  
          Law. Specifically, the bill:

          1)Provides that the new fund will be included on the return upon  
            removal of an existing fund, and will remain on the form for  
            five years unless contributions fall below $250,000 per year.

          2)Provides that contributions to the fund will be allocated to  
            DSS for the distribution of grants for programs to increase  
            public awareness and outreach regarding the Safely Surrendered  
            Baby Law.

          3)Requires the DSS report to include information on (a) the  
            number of infants both safely surrendered and abandoned, (b)  
            the health condition of the infants, and (c) a compilation of  
            information disclosed on the voluntary questionnaire provided  
            to those individuals who safely surrender an infant.  

           FISCAL EFFECT 

          1)About $200,000 annual cost to DSS to assimilate information  
            and prepare the required report.

          2)The contributions may be taken as an itemized deduction on  
            income tax returns. The Franchise Tax Board estimates that the  








                                                                  AB 1049
                                                                  Page  2

            annual revenue losses from these deductions would be less than  
            $20,000.

           COMMENTS

          1)Rationale  . The author states that this bill is needed to  
            provide an ongoing fund for the protection of the innocent  
            lives of babies.  The author cites the State Auditor's report  
            released in 2008, which determined over 400 babies have been  
            abandoned in California.  The purpose of this bill is to fund  
            outreach and expand awareness of the Safely Surrendered Baby  
            Law, and ensure the law is effectively enforced. 

           2)Background-voluntary contribution funds (VCFs) . California  
            taxpayers can make voluntary contributions to any of 15 funds  
            listed on the state personal income tax return. The  
            contributions are in addition to any tax liabilities otherwise  
            owed. Thus, they do not directly reduce state taxes otherwise  
            available to support state-funded programs in the year in  
            which they are made. However, the amounts are allowed as an  
            itemized deduction for charitable contributions on the  
            subsequent year's income tax return. These voluntary  
            contributions support various purposes, including cancer  
            research, endangered species preservation, and emergency food  
            assistance. Contributions to the VCFs have historically ranged  
            from $300,000 to $800,000 per year. All but one VCF (the  
            California Seniors Special Fund) have sunset dates, and most  
            must meet a minimum annual contribution to remain on the  
            return.

           3)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 California 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.

           Analysis Prepared by  :    Brad Williams / APPR. / (916) 319-2081