BILL ANALYSIS
SENATE REVENUE & TAXATION COMMITTEE
Senator Lois Wolk, Chair
AB 1049 - Torrico
Amended: June 29, 2009
Hearing: July 8, 2009 Fiscal: Yes
SUBJECT: Creates the safely surrendered baby check off
on the California income tax.
EXISTING LAW allows taxpayers to contribute money to
one or more of 15 voluntary contribution funds by checking
a box on their state income tax return. California law
requires contributions made through check-offs to be made
from taxpayers' own resources (not from their tax
liability, as is possible on federal tax returns).
Check-off amounts may be claimed as charitable
contributions on taxpayers' tax returns during the
subsequent year.
Allows the FTB to design tax returns to provide for
the designation of contributions to specified funds either
on the return itself or on a separate schedule that must be
attached to the return.
THIS BILL creates the safely surrendered baby fund
(check off) on the California income tax form.
Provides that the check off may only stay on the tax
return for five years and must meet the minimum
contribution requirement of $250,000 the second year it is
on the return.
Provides that the funds must go from the FTB to the
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State Department of Social Services for distribution of
grants for programs to increase public awareness and
outreach regarding the Safely Surrendered Baby Law,
including, but not limited to, public service announcements
in English and Spanish, safe surrender hotlines, a State
Department of Social Services Internet Web site with a
comprehensive list of safe-surrender sites, education, and
training for communities and schools.
FISCAL EFFECT:
According to FTB extending this check-off will result
in annual revenue losses of approximately $15,000 per year
beginning the first year the check off is placed on the
income tax form due to the deductibility against state
taxes.
COMMENTS
A. Purpose of the Bill
Under the safe surrender 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.
B. Many worthy causes
In the past, the Committee has expressed concern that
countless worthy causes may be funded by tax check-offs.
The Committee has stated that the current check-off system
forces them to choose between worthy charities and
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non-profits for a spot on the tax return. The current
system remains subjective and is limited to those
organizations that can convince the Legislature to include
them on the form. Additionally, taxpayers may currently
contribute portions of their refunds to worthy
organizations. Taxpayers may also claim a deduction for
charitable contributions. The Committee may wish to
consider whether the state should use the tax code to
encourage contributions to certain charitable
organizations.
As noted in comment C, there are already 15 check offs on
the tax return; therefore, this check off will have to wait
until one falls off in order to be placed on the income tax
form.
In addition to this bill, the following bills have
been introduced this year:
AB 292 (Yamada, 2009/10): Extends the check off for
Alzheimer's research. The bill is pending in the Senate
Appropriations committee).
AB 1088 (Fletcher, 2009/2010) would create 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 held in the Assembly Veterans
Affairs Committee.
SB 91 (Correa, 2009/2010) would extend the expiration
date of the California Fund for Senior Citizens from
January 1, 2010, to January 1, 2015. This bill is currently
set for hearing in the Assembly Revenue and Taxation
Committee.
C. 2008 Check-Offs
Contributions to voluntary funds in 2008 were as
follows:
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--------------------------------------------
| Voluntary Contribution | 2008 |
|Fund |Contribution|
| | s |
|-------------------------------+------------|
|Alzheimer's Disease/Related | $505,510 |
|Disorders Fund | |
|-------------------------------+------------|
|California Breast Cancer | $596,729 |
|Research Fund | |
|-------------------------------+------------|
|California Firefighters' | $250,060 |
|Memorial Fund | |
|-------------------------------+------------|
|California Fund for Senior | $288,695 |
|Citizens | |
|-------------------------------+------------|
|California Military Family | $306,750 |
|Relief Fund | |
|-------------------------------+------------|
|California Peace Officer | $184,261 |
|Memorial Foundation Fund | |
|-------------------------------+------------|
|California Sea Otter Fund | $294,966 |
|-------------------------------+------------|
|Emergency Food for Families | $438,582 |
|Fund | |
|-------------------------------+------------|
|Rare and Endangered Species | $580,823 |
|Preservation Fund | |
|-------------------------------+------------|
|State Children's Trust for the |$528,609 |
|Prevention of Child Abuse | |
--------------------------------------------
-------------------------------
| Newly Added as of January |
AB 1049 - Torrico
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|2009 |
|-------------------------------|
|ALS/Lou Gehrig's Disease |
|Research Fund |
|-------------------------------|
|California Cancer Center |
|Research Fund |
|-------------------------------|
|California Ovarian Cancer |
|Research Fund |
|-------------------------------|
|California Seniors Special |
|Fund |
|-------------------------------|
|Municipal Shelter Spay and |
|Neuter Fund |
| |
| |
-------------------------------
Support and Opposition
Support: California Catholic Conference
The American College of Obstetricians and Gynecologist
California School Employees Association
County Welfare Directors Association of California
Opposition:None reported.
---------------------------------
Consultant: Gayle Miller