BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 17|
|Office of Senate Floor Analyses | |
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THIRD READING
Bill No: SB 17
Author: Monning (D), et al.
Introduced:12/1/14
Vote: 21
SENATE GOVERNANCE & FIN. COMMITTEE: 7-0, 4/8/15
AYES: Hertzberg, Nguyen, Bates, Beall, Hernandez, Lara, Pavley
SENATE APPROPRIATIONS COMMITTEE: 6-1, 4/20/15
AYES: Lara, Bates, Beall, Hill, Leyva, Mendoza
NOES: Nielsen
SUBJECT: California Sea Otter Fund
SOURCE: Author
DIGEST: This bill extends the sunset date of the "California
Sea Otter Fund" to January 1, 2021.
ANALYSIS:
Existing law:
1)Allows taxpayers to contribute money to voluntary contribution
funds (VCFs) by checking a box on their state income tax
returns. California law requires contributions made through
so-called "check-offs" to be made from taxpayers' own
resources and 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 in the
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subsequent year.
2)Requires that each VCF is individually added to the tax return
by legislation. With a few exceptions, VCFs remain on the
return until they are repealed by a sunset date or fail to
generate a minimum contribution amount. In general, the
minimum contribution amounts are adjusted annually for
inflation. For most VCFs, the minimum contribution amount is
$250,000, beginning in the fund's second year. The following
check-offs do not have a minimum contribution requirement:
California Firefighters' Memorial Foundation Fund,
California Peace Officer Memorial Foundation Fund, and
California Seniors Special Fund.
1)Requires the Franchise Tax Board (FTB) to deposit the total of
all contributions into the fund created as part of the VCF's
legislative authorization. For some VCFs, such as the Protect
Our Coast and Ocean Fund, taxpayers' contributions are
allocated to a state agency for use in a state administered
grant program. Other VCFs' authorizing statutes direct
administrative agencies to allocate donations to a private
organization. For example, the Office of Emergency Services
passes VCF funds to the American Red Cross. Other funds
require the State Controller to send the funds directly to
private organizations without passing through an
administrative agency, such as the California Fire Foundation.
The FTB, the Controller, and an administrative agency may
deduct from the amount of donations each VCF receives for
direct costs of administering a fund.
This bill extends the sunset date of the "California Sea Otter
Fund" to January 1, 2021.
Background
There are currently 18 check-offs listed on the tax return form.
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The tax check-off program typically collects $4-5 million in
annual contributions for all VCFs.
The California Sea Otter Fund check-off was initially
established in 2006 (AB 2485, Jones and Laird, Chapter 296).
The California Sea Otter Fund first appeared on the 2007 return,
and is subject to a minimum contribution amount that is adjusted
annually for inflation. In 2011, the Fund's repeal date was
extended from January 1, 2011, to January 1, 2016, (AB 971,
Monning, Chapter 209).
FISCAL EFFECT: Appropriation: No Fiscal
Com.:YesLocal: No
According to the Senate Appropriations Committee, FTB estimates
that this bill will result in an annual revenue loss of $9,000
(General Fund) beginning in 2016-17. Both FTB and the
Controller's Office will be reimbursed for related
administrative costs.
SUPPORT: (Verified4/22/15)
California Insurance Commissioner Dave Jones
Defenders of Wildlife
EarthEcho International
Friends of the Sea Otter
Midpeninsula Regional Open Space District
Monterey Bay Aquarium
National Wildlife Federation, California
Natural Resources Defense Council
Oceana
Oceana Conservancy
The Humane Society
WiLDCOAST
OPPOSITION: (Verified4/22/15)
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None received
ARGUMENTS IN SUPPORT: Supporters note that the California
Sea Otter Fund supports researchers and managers in their
efforts to study and protect the threatened population of sea
otters in California, which were decimated by the early 1900s.
Today, fewer than 3,000 sea otters exist along the state's
coastline. To date, the Fund has supported the advancement of a
long-term study to identify impacts to sea otter health,
including chemical and pathogen pollution that is prominent off
the developed areas of the California Coast. This bill will
continue to provide crucial funding to help scientists examine
and understand causes of sea otter mortality, identify key
factors limiting population growth and recovery, and work
cooperatively and collaboratively with stakeholders to help
mitigate and prevent environmental degradation and pollution of
the near-shore marine ecosystem.
Prepared by:Myriam Bouaziz / GOV. & F. / (916) 651-4119
4/22/15 16:19:56
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