BILL NUMBER: AB 971 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 4, 2011
INTRODUCED BY Assembly Member Monning
FEBRUARY 18, 2011
An act to amend and repeal Section 18753
add and repeal Article 5.6 (commencing with Section 18754) of Chapter
3 of Part 10.2 of Division 2 of the Revenue and Taxation Code,
relating to taxation.
LEGISLATIVE COUNSEL'S DIGEST
AB 971, as amended, Monning. Personal income tax: voluntary
contributions: California Sea Otter Fund.
The Personal Income Tax Law allows , for taxable years
beginning on or after January 1, 2006, and before January 1, 2011,
individual taxpayers to contribute amounts in excess of their
tax liability for the support of specified funds, including
the California Sea Otter Fund. Existing law
repeals the California Sea Otter Fund after January 1 of the 5th
taxable year following the first appearance of the fund on the tax
return, or on the taxable year beginning on or after January 1 of the
calendar year in which the Franchise Tax Board estimates, by
September 1, that the contributions made on the returns filed in that
calendar year will be less than a minimum contribution amount, as
specified, whichever occurs first.
This bill extends the California Sea Otter Fund's repeal date
until January 1 of the 10th taxable year following the first
appearance of the fund on the tax return, or on the taxable year
beginning on or after January 1 of the calendar year in which the
Franchise Tax Board estimates, by September 1, that the contributions
made on the returns filed in that calendar year will be less than a
minimum contribution amount, as specified, whichever occurs first.
This bill would, for taxable years beginning on or after January
1, 2011, and before January 1, 2016, unless as otherwise provided,
allow taxpayers to designate on their tax returns that a specified
amount in excess of their tax liability be transferred to the
California Sea Otter Fund, which would be created by this bill. This
bill would require money in that fund, upon appropriation by the
Legislature, be allocated to the Department of Fish and Game for the
purposes of establishing a sea otter fund, as prescribed, and to the
California Coastal Conservancy for competitive grants and contracts
for research, projects, and programs related to the Federal Sea Otter
Recovery Plan or improving the near-shore ocean ecosystem.
The bill would require the Franchise Tax Board to revise the 2011
form of tax returns to provide for the designation created by this
bill, and would allow, upon appropriation by the Legislature, the
Franchise Tax Board and the Controller to receive a portion of the
funds designated to cover costs incurred in collecting and
administering the funds.
This bill makes legislative findings and declarations as to the
necessity of the California Sea Otter Fund.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares all of the
following:
(a) Sea otters serve many important roles with the nearshore
marine ecosystem, including as a sentinel of many forms of pollution
and diseased organisms harmful to other animals and humans.
Monitoring the health and population of sea otters is a useful tool
for improving ocean health and for protecting domestic animal and
human health and welfare. Continuance of these programs is highly
encouraged.
(b) The sea otter population is threatened by a variety of
stressors, including declines in habitat quality and increased
exposure to various forms of pollution. Because of these stressors,
the total number of sea otters in California is less than 3,000, and
the surviving population continues to experience high mortality and
periodic population declines.
(c) Efforts to benefit sea otters and their natural habitats in
California should include:
(1) Investigating ecological and environmental factors that
contribute to poor southern sea otter survival.
(2) Conducting in-depth studies of specific causes of sea otter
mortality, the connections of those causes to environmental factors
and anthropogenic activities, and the potential means for mitigating
and preventing those causes.
(3) Characterizing the full range of pathogens and pollutants that
cause illness and death in southern sea otters.
(4) Characterizing the source and population significance of
harmful algal blooms and other water quality problems that can sicken
or cause the death of sea otters, other marine wildlife, and humans.
(d) The California Sea Otter Fund should remain on the Franchise
Tax Board's list of voluntary contribution funds at least through
2016. The California Sea Otter Fund provides crucial
(d) The California Sea Otter Fund
provides 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 nearshore marine
ecosystem. This fund is made possible entirely
through voluntary contributions by citizens of California and
the fund should appear on the Franchise Tax Board's list of voluntary
contribution funds . The past success of the California Sea
Otter Fund, despite recent economic hardships experienced by
California's citizens, reflects a strong collective interest in
conserving this charismatic and important animal. There are no other
dedicated state funding sources available to continue this important
work.
SEC. 2. Section 18753 of the Revenue and Taxation Code is amended
to read:
18753. (a) This article shall remain in effect only until January
1 of the 10th taxable year following the first appearance of the
California Sea Otter Fund on the tax return, and as of that date is
repealed.
(b) (1) By September 1 of the second calendar year beginning after
the first taxable year the California Sea Otter Fund appears on a
tax return and by September 1 of each subsequent calendar year that
the California Sea Otter Fund appears on a tax return, the Franchise
Tax Board shall do both of the following:
(A) Determine the minimum contribution amount required to be
received during the next calendar year for the fund to appear on the
tax return for the taxable year that includes that next calendar
year.
(B) Determine whether the amount of contributions estimated to be
received during the calendar year will equal or exceed the minimum
contribution amount determined by the Franchise Tax Board for the
calendar year pursuant to subparagraph (A). The Franchise Tax Board
shall estimate the amount of contributions to be received by using
the actual amounts received and an estimate of the contributions that
will be received by the end of that calendar year.
(2) If the Franchise Tax Board determines the amount of
contributions estimated to be received during a calendar year will
not equal or exceed the minimum contribution amount for the calendar
year, this article is repealed with respect to taxable years
beginning on or after January 1 of that calendar year.
(3) For purposes of this section, "minimum contribution amount"
for a calendar year means two hundred fifty thousand dollars
($250,000) for the second calendar year after the first taxable year
for which the California Sea Otter Fund appears on the tax return, or
the minimum contribution amount adjusted pursuant to subdivision
(c).
(c) For each calendar year, beginning with the third calendar year
that the California Sea Otter Fund appears on the tax return, the
Franchise Tax Board shall adjust, on or before September 1 of that
calendar year, the minimum contribution amount specified in
subdivision (b) as follows:
(1) The minimum contribution amount for the calendar year shall be
an amount equal to the product of the minimum contribution amount
for the prior calendar year multiplied by the inflation factor
adjustment as specified in paragraph (2) of subdivision (h) of
Section 17041, rounded off to the nearest dollar.
(2) The inflation factor adjustment used for the calendar year
shall be based on the figures for the percentage change in the
California Consumer Price Index received on or before August 1 of the
calendar year pursuant to paragraph (1) of subdivision (h) of
Section 17041.
(d) Notwithstanding the repeal of this article, any contribution
amounts designated pursuant to this article prior to its repeal shall
continue to be transferred and disbursed in accordance with this
article as in effect immediately prior to that repeal.
(e) California seeks to maximize and complement donated funds for
sea otter protection by making competitive grants and soliciting
available federal, private, matching, or other dollars to complement
or leverage contributions.
SEC. 2. Article 5.6 (commencing with Section
18754) is added to Chapter 3 of Part 10.2 of Division 2 of the
Revenue and Taxation Code , to read:
Article 5.6. California Sea Otter Fund
18754. (a) An individual may designate on the tax return that a
contribution in excess of the tax liability, if any, be made to the
California Sea Otter Fund, established by Section 18754.1 That
designation is to be used as a voluntary checkoff on the tax return.
(b) The contributions shall be in full dollar amounts and may be
made individually by each signatory on a joint return.
(c) A designation shall be made for any taxable year on the
initial return for that taxable year, and once made is irrevocable.
If payments and credits reported on the return, together with any
other credits associated with the taxpayer's account, do not exceed
the taxpayer's liability, the return shall be treated as though no
designation has been made. If that no designee is specified, the
contribution shall be transferred to the General Fund, after
reimbursement of the direct actual costs of the Franchise Tax Board
for the collection and administration of funds under this article.
(d) If an individual designates a contribution to more than one
account or fund listed on the tax return, and the amount available
for designation is insufficient to satisfy the total amount
designated, the contribution shall be allocated among the designees
on a pro rata basis.
(e) Except as provided by Section 18754.3, for the 2011 taxable
year, the Franchise Tax Board shall revise the form of the tax return
to include a space labeled the "California Sea Otter Fund" to allow
for the designation provided. The form shall include in the
instruction information that the contribution may be in the amount of
one dollar ($1) or more and that the contribution shall be used to
support increased investigation, prevention, and enforcement actions
to decrease sea otter mortality, and to provide for research and
programs related to sea otters.
(f) A deduction shall be allowed under Article 6 (commencing with
Section 17201) of Chapter 3 of Part 10 for any contribution made
pursuant to subdivision (a).
18754.1. There is in the State Treasury the California Sea Otter
Fund to receive contributions made pursuant to Section 18754. The
Franchise Tax Board shall notify the Controller of both the amount of
money paid by taxpayers in excess of their tax liability and the
amount of refund money that taxpayers have designated pursuant to
Section 18754 to be transferred to the California Sea Otter Fund. The
Controller shall transfer from the Personal Income Tax Fund to the
California Sea Otter Fund an amount not in excess of the sum of the
amounts designated by individuals pursuant to Section 18754 for
payment into that fund.
18754.2. (a) All money transferred to the California Sea Otter
Fund, upon appropriation by the Legislature, shall be allocated as
follows:
(1) To the Franchise Tax Board and the Controller for
reimbursement of all costs incurred by the Franchise Tax Board and
the Controller in connection with their duties under this article.
(2) Fifty percent of the revenues remaining after allocation
pursuant to paragraph (1), to the Department of Fish and Game for the
purposes of establishing a sea otter fund to be used within the
department's index coding system for increased investigation,
prevention, and enforcement actions.
(3) Fifty percent of the revenues remaining after allocation
pursuant to paragraph (1), to the California Coastal Conservancy for
competitive grants and contracts to public agencies and nonprofit
organizations for research, science, protection, projects, or
programs related to the Federal Sea Otter Recovery Plan or improving
the near-shore ocean ecosystem, including, but not limited to,
program activities to reduce sea otter mortality. The projects or
programs may also address pathogens and water and wastewater
treatment technologies.
(b) The California Coastal Conservancy shall solicit available
federal, private, matching, and other dollars to maximize or leverage
funds appropriated in paragraph (3) to provide the greatest benefit
for sea otters.
(c) The California Coastal Conservancy may enter into interagency
agreements with public agencies for purposes of paragraph (3).
18754.3. (a) This article shall remain in effect only until
January 1, 2016, and as of that date, is repealed.
(b) (1) By September 1 of each calendar year that the California
Sea Otter Fund appears on a tax return, the Franchise Tax Board shall
do both of the following:
(A) Determine the minimum contribution amount required to be
received during the next calendar year for the fund to appear on the
tax return for the taxable year that includes that next calendar
year.
(B) Determine whether the amount of contributions estimated to be
received during the calendar year will equal or exceed the minimum
contribution amount determined by the Franchise Tax Board for the
calendar year pursuant to subparagraph (A). The Franchise Tax Board
shall estimate the amount of contributions to be received by using
the actual amounts received and an estimate of the contributions that
will be received by the end of that calendar year.
(2) If the Franchise Tax Board determines the amount of
contributions estimated to be received during a calendar year will
not equal or exceed the minimum contribution amount for the calendar
year, this article is repealed with respect to taxable years
beginning on or after January 1 of that calendar year.
(3) For purposes of this section, "minimum contribution amount"
for a calendar year means two hundred and sixty thousand eight
hundred ninety dollars ($260,890) for the 2011 calendar year, or the
minimum contribution amount adjusted pursuant to subdivision (c).
(c) For each calendar year after 2011 that the California Sea
Otter Fund appears on the tax return, the Franchise Tax Board shall
adjust, on or before September 1 of that calendar year, the minimum
contribution amount specified in subdivision (b) as follows:
(1) The minimum contribution amount for the calendar year shall be
an amount equal to the product of the minimum contribution amount
for the prior calendar year multiplied by the inflation factor
adjustment as specified in paragraph (2) of subdivision (h) of
Section 17041, rounded off to the nearest dollar.
(2) The inflation factor adjustment used for the calendar year
shall be based on the figures for the percentage change in the
California Consumer Price Index received on or before August 1 of the
calendar year pursuant to paragraph (1) of subdivision (h) of
Section 17041.
(d) Notwithstanding the repeal of this article, any contribution
amounts designated pursuant to this article prior to its repeal shall
continue to be transferred and disbursed in accordance with this
article as in effect immediately prior to that repeal.
SEC. 3. It is the intent of the Legislature that
Article 5.6 (commencing with Section 18754) of Chapter 3 of Part 10.2
of Division 2 of the Revenue and Taxation Code, as added by section
2 of this act, be considered to be and treated as a continuation of
Article 5.5 (commencing with Section 18750) of Chapter 3 of Part 10.2
of Division 2 of the Revenue and Taxation Code, as added by Chapter
296 of the Statutes of 2006.