BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      SB 17  


                                                                    Page  1





          Date of Hearing:  July 8, 2015


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                                 Jimmy Gomez, Chair


          SB 17  
          (Monning) - As Introduced December 1, 2014


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          |Policy       |Revenue and Taxation           |Vote:|9 - 0        |
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          Urgency:  No  State Mandated Local Program:  NoReimbursable:  No


          SUMMARY:


          This bill extends, from January 1, 2016 to January 1, 2021, the  
          sunset date for the California Sea Otter Fund (Fund), a  
          voluntary contribution fund on the Personal Income Tax return.


          FISCAL EFFECT:


          1)Minor and absorbable costs to the Department of Fish and  
            Wildlife and State Coastal Conservancy to administer grant  
            program; insignificant costs to the Franchise Tax Board.









                                                                      SB 17 


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          2)Estimated GF revenue decreases of approximately $9,000 in each  
            year the voluntary contribution fund remains on the personal  
            income tax return.


          COMMENTS:


          1)Purpose.  According to the author, reauthorization of the  
            California Sea Otter Fund will ensure continued support for  
            research to protect the keystone species.  Supporters assert  
            the Fund has been instrumental in supporting sea otter  
            research, conservation, and education projects, all of which  
            are critical for sea otter recovery.  Sea Otter Awareness Week  
            and educational outreach to schools in the Monterey Bay area  
            have also been funded through the program.


          2)Cuteness Overload.  California's southern sea otters were  
            thought to be extinct a century ago.  A small population was  
            discovered in 1938 near Big Sur, and the threatened species  
            has recovered to between 2,000 and 3,000 otters since then.   
            Fund donations have supported, among other things, scientific  
            research into sea otter mortality and identifying diseases,  
            parasites, and toxins derived from pollution that can lead to  
            premature sea otter deaths.


          3)Worthy Cause, Modest Support.  With few exceptions, voluntary  
            contribution funds remain on the personal income tax return  
            until they are either repealed or fail to meet their minimum  
            contribution amount, typically $250,000 and adjusted for  
            inflation.  If the Franchise Tax Board estimates a  
            contribution fund is likely to fail to meet the minimum  
            contribution amount, that fund is repealed effective January 1  
            of that calendar year.










                                                                      SB 17  


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            The Fund's minimum contribution requirement for 2015 is  
            $283,775, and through April the Fund received $228,661.  From  
            2011-2013, the Fund collected between $308,000 and $360,000  
            per year. 





          Analysis Prepared by:Joel Tashjian / APPR. / (916)  
          319-2081