BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1049
                                                                  Page  1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 1049 (Torrico)
          As Amended  September 1, 2009
          Majority vote
           
           ----------------------------------------------------------------- 
          |ASSEMBLY:  |78-0 |(June 2, 2009)  |SENATE: |28-3 |(September 2,  |
          |           |     |                |        |     |2009)          |
           ----------------------------------------------------------------- 
            
           Original Committee Reference:    REV. & TAX.  

           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.  

           The Senate amendments  :

          1)Eliminate the provisions requiring the State Department of  
            Social Services (DSS) to use Fund moneys to distribute grants.  
             

          2)Provide that DSS is not required to expend any funds other  
            than those allocated under this bill for Fund-related  
            activities. 

          3)Provide that DSS is not required to use any resources for  
            Fund-related activities other than those provided under this  
            bill.  

          4)Add coauthors.

           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.  








                                                                  AB 1049
                                                                  Page  2


          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.  

           AS PASSED BY THE ASSEMBLY  , this bill:

          1)Established the Fund in the State Treasury. 

          2)Provided that all moneys transferred to the Fund, upon  
            appropriation by the Legislature, would 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 DSS for the distribution of grants 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)Provided 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 estimated that the annual contribution  
            amount will be less than $250,000, or an adjusted amount for  
            subsequent years.  

           FISCAL EFFECT  :  Assuming the Fund is added to the 2009 return,  
          FTB estimates revenue losses, resulting from contribution  
          deductions, to be less than $15,000 in fiscal year (FY) 2010-11  
          and FY 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, to expand awareness on the Safely Surrendered  
          Baby Law, and to ensure the law is effectively enforced."  









                                                                  AB 1049
                                                                  Page  3

          Committee Staff Comments:

          1)The Safely Surrendered Baby Law:  In April of 2008, the  
            California State Auditor issued a report on the Safely  
            Surrendered Baby Law.  The report highlighted the following  
            issues:

             a)   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;  

             b)   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; 

             c)   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;

             d)   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; and,

             e)   The vast majority of surrendered babies may not have  
               access to critical medical information later in life  
               because safe-surrender sites have difficulties in obtaining  
               vital medical history information. 

          2)Related legislation:  There are at least two other bills in  
            the current legislative session that would add new VCFs to the  
            PIT return:

             a)   AB 1088 (Fletcher) would create an unnamed VCF to  
               provide an additional funding source for veterans' homes.   








                                                                  AB 1049
                                                                  Page  4

               AB 1088 is pending with the Assembly Revenue and Taxation  
               Committee as a two-year bill. 

             b)   SB 516 (DeSaulnier), introduced in the currently  
               legislative session, would create the California Fund for  
               Youth to support a newly created California Youth  
               Legislature.  SB 516 is pending with the Assembly Committee  
               on Revenue and Taxation as a two-year bill.


           Analysis Prepared by  :  M. David Ruff / REV. & TAX. / (916)  
          319-2098 


                                                                FN: 0002793