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 ----------------------------------------------------------------- |Policy |Revenue and Taxation |Vote:|9 - 0 | |Committee: | | | | | | | | | | | | | | ----------------------------------------------------------------- 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 Page 2 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 With few exceptions, voluntary contribution funds remain on the personal income tax return until they are either repealed or fail to meet their minimum contribution amount, typically $250,000 and adjusted for inflation.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Tax Board estimates a contribution fund is likely to fail to meet the minimum contribution amount, that fund is repealed effective January 1 of that calendar year.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 Page 3 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