BILL ANALYSIS
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
1049 (Torrico)
Hearing Date: 08/27/2009 Amended: 06/29/2009
Consultant: Mark McKenzie Policy Vote: Rev&Tax 6-1
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BILL SUMMARY: AB 1049 would establish a tax-checkoff program
for up to five years to allow taxpayers to designate
contributions to the Safely Surrendered Baby Fund on their
income tax returns. Contributed funds would be allocated, upon
appropriation by the Legislature, to the Department of Social
Services (DSS) for distribution of grants for programs that
increase public awareness and outreach regarding the Safely
Surrendered Baby Law.
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Fiscal Impact (in thousands)
Major Provisions 2009-10 2010-11 2011-12 Fund
Tax revenue loss $16 $16 General
DSS grant program admin $117 $117 General
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STAFF COMMENTS: SUSPENSE FILE.
Currently, there are 15 "check-off" programs on the personal
income tax return which allow taxpayers to donate their own
funds for various purposes. Generally, each tax check-off
program has a specific sunset date and an initial contribution
limit of $250,000, adjusted annually for inflation, with
specified exceptions. Donations to check-off programs are
deductable as charitable contributions on taxpayers' tax returns
during the subsequent tax year.
AB 1049 would establish the Safely Surrendered Baby Fund
check-off program, which cannot be added to income tax forms
until Franchise Tax Board (FTB) removes an existing voluntary
contribution program. The designation would appear on tax forms
for five years unless contributions do not meet the minimum
threshold of $250,000 per year, adjusted for inflation, in which
case the check-off program would be repealed.
Assuming the check-off appears on the 2009 tax return and the
minimum donation amount is achieved, the estimated tax revenue
loss would be about $15,625 annually (applying the average
marginal tax rate of 6.25%), beginning in 2010-11, because
contributions would be claimed as an itemized deduction in the
following tax year. Costs for the Franchise Tax Board to
administer the program are minor and are reimbursed from donated
amounts.
The Safely Surrendered Baby Law allows a parent or other persons
with lawful custody to confidentially surrender an infant 72
hours old or younger to designated safe-surrender sites without
facing prosecution for child abandonment. DSS reports that as
of June 30, 2008, 251 newborns have been safely surrendered in
California and another 149 infants have been found alive
following illegal abandonment. A recent report by the
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AB 1049 (Torrico)
California State Auditor highlighted a number of issues related
to the program, including the lack of state involvement and
public outreach funding, as well as violations of
confidentiality provisions and incorrect classifications of
babies as safely surrendered.
This bill would require DSS to administer a program to provide
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 DSS internet website with a
comprehensive list of safe-surrender sites, education, and
training for communities and schools. DSS indicates that duties
associated with development and oversight of a grant program,
creation and maintenance of a safe-surrender website, and
translation of public service announcements would require the
addition of 1.25 PY of staff at a cost of $117,000 annually for
the duration of the program. Since the bill does not authorize
contributions to be used for DSS administrative costs, these new
staff would be paid from the General Fund.