BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1983
                                                                  Page  1

          Date of Hearing:   April 28, 2010

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                AB 1983 (Torrico) - As Introduced:  February 17, 2010 

          Policy Committee:                              Revenue and  
          Taxation     Vote:                            9-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill adds the Safely Surrendered Baby Fund to the list of  
          voluntary contribution funds included on the personal income tax  
          form. 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.
            
           FISCAL EFFECT 
           
          The contributions may be taken as an itemized deduction on  
          income tax returns. The Franchise Tax Board estimates that the  
          annual revenue losses from these deductions will be about  
          $15,000 annually beginning in 2011-12.
           
          COMMENTS
           
           1)Rationale.  The author states that this bill is needed to  
            provide an ongoing fund to protect abandoned 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.

           2)Background-voluntary contribution funds (VCFs)  . California  








                                                                  AB 1983
                                                                  Page  2

            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 VCFs have historically ranged  
            from about $200,000 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.

           4)Related legislation  . This bill is nearly identical to AB 1049  
            (Torrico), from 2009, which passed both houses of the  
            Legislature but was vetoed 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." AB  
            2017, also before this committee authorizes a checkoff for the  
            California YMCA Youth and Government Fund.

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