BILL ANALYSIS                                                                                                                                                                                                    �



                                                                      



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          |SENATE RULES COMMITTEE            |                   AB 971|
          |Office of Senate Floor Analyses   |                         |
          |1020 N Street, Suite 524          |                         |
          |(916) 651-1520         Fax: (916) |                         |
          |327-4478                          |                         |
           ------------------------------------------------------------ 
           
                                         
                                 THIRD READING


          Bill No:  AB 971
          Author:   Monning (D)
          Amended:  4/25/11 in Assembly
          Vote:     21

           
           SENATE GOVERNANCE & FINANCE COMMITTEE :  8-1, 6/29/11
          AYES:  Wolk, DeSaulnier, Fuller, Hancock, Hernandez, Kehoe, 
            La Malfa, Liu
          NOES:  Huff

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8

           ASSEMBLY FLOOR  :  72-3, 5/31/11 - See last page for vote


           SUBJECT  :    Personal income tax:  voluntary contributions:  
          California 
                      Sea Otter Fund

            SOURCE  :     Defenders of Wildlife
                      Monterey Bay Aquarium


           DIGEST  :    This bill reenacts the California Sea Otter Fund 
          that was repealed on January 1, 2011.  The check-off will 
          be repealed on January 1, 2016 or on January 1st of an 
          earlier year if the Franchise Tax Board estimates the fund 
          will not meet the annually specified minimum contribution 
          amount.   The 2011 minimum contribution amount is $260,890. 
            

           ANALYSIS  :    Existing state law allows taxpayers to 
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          contribute money to one or more of 15 voluntary 
          contribution funds by checking a box on their state income 
          tax return.  California law requires contributions made 
          through 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 during 
          the subsequent year.

          This bill:

          1. Reenacts the California Sea Otter Fund that was repealed 
             on January 1, 2011.  The check-off will be repealed on 
             January 1, 2016 or on January 1st of an earlier year if 
             the Franchise Tax Board (FTB) estimates the fund will 
             not meet the annually specified minimum contribution 
             amount.   The 2011 minimum contribution amount is 
             $260,890. 

          2. Requires money into the fund, upon appropriation by the 
             Legislature, be allocated to the Department of Fish and 
             Game for the purposes of establishing a sea otter fund 
             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 nearshore ocean ecosystem.

           Comments
           
          The California Sea Otter Fund first appeared on the 2006 
          personal income tax return and was automatically repealed 
          on January 1, 2011 pursuant to the original legislation AB 
          2485 (Jones), Chapter 296, Statutes of 2006.  To date, the 
          fund has raised over $1.3 million and additional 
          contributions continue to be received with 2010 returns.  

          To date, the California Sea Otter 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.  Findings from this study will help inform 
          government agencies, scientists, and other sea otter 
          supporters on how best to protect the sea otter and the 
          health of our coast."

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          Following is a list of 2011 check-offs and contribution 
          amounts received in 2010:

            -------------------------------------------------------- 
           |Alzheimer's Disease/Related |$426,417                   |
           |Disorders Fund              |                           |
           |----------------------------+---------------------------|
           |Arts Council Fund           |Initial Tax Return 2010    |
           |----------------------------+---------------------------|
           |CA Breast Cancer Research   |$519,728                   |
           |Fund                        |                           |
           |----------------------------+---------------------------|
           |CA Cancer Research Fund     |$275,587                   |
           |----------------------------+---------------------------|
           |CA Firefighters' Memorial   |$207,455                   |
           |Fund                        |                           |
           |----------------------------+---------------------------|
           |CA Fund for Senior Citizens |$296,144                   |
           |----------------------------+---------------------------|
           |CA Peace Officer Memorial   |$135,250                   |
           |Foundation Fund             |                           |
           |----------------------------+---------------------------|
           |CA Police Activities League |Initial Tax Return 2010    |
           |(CALPAL) Fund               |                           |
           |----------------------------+---------------------------|
           |CA Sea Otter Fund           |$263,543                   |
           |----------------------------+---------------------------|
           |CA Seniors Special Fund     |$59,192                    |
           |----------------------------+---------------------------|
           |CA Veterans Homes Fund      |Initial Tax Return 2010    |
           |----------------------------+---------------------------|
           |Emergency Food for Families |$487,333                   |
           |Fund                        |                           |
           |----------------------------+---------------------------|
           |Rare & Endangered Species   |$578,215                   |
           |Preservation Program        |                           |
           |----------------------------+---------------------------|
           |Safely Surrendered Baby     |Initial Tax Return 2010    |
           |Fund                        |                           |
           |----------------------------+---------------------------|
           |State Children's Trust for  |$448,081                   |
           |the Prevention of Child     |                           |
           |Abuse                       |                           |

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           Related Legislation
           
          SB 164 (Simitian), 2011-12 Session, extends the repeal 
          dates of both the State Children's Trust Fund for the 
          Prevention of Child Abuse and the Rare and Endangered 
          Species Preservation Program from January 1, 2013 to 
          January 1, 2018.  

          SB 583 (Vargas), 2011-12 Session, reestablishes the ALS/Lou 
          Gehrig's Disease Research Fund.  

          SB 803 (DeSaulnier), 2011-12 Session, creates a VCF 
          designation on the personal income tax form for taxpayers 
          to contribute to California Youth Leadership Project.  

          SBX1 3 (LaMalfa), 2011-12 Session, creates a VCF 
          designation on the personal income tax form, the Help Our 
          State Fund, for taxpayers to contribute to the General 
          Fund.  

          AB 233 (Hall), 2011-12 Session, creates a VCF designation 
          on the personal income tax form for taxpayers to contribute 
          to the California YMCA Youth and Government Fund.  

          AB 564 (Smyth), 2011-12 Session, reestablishes the 
          Municipal Shelter Spay-Neuter Fund and encourages all 
          persons who prepare state income tax returns to inform 
          their clients in writing that they may contribute to any 
          voluntary contribution check-off on the return.  

          AB 764 (Swanson), 2011-12 Session, creates a VCF 
          designation on the personal income tax form for taxpayers 
          to contribute to the Child Victims of Human Trafficking 
          Fund. 

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes   
          Local:  No

           SUPPORT  :   (Verified  8/15/11)

          Defenders of Wildlife (co-source)
          Monterey Bay Aquarium (co-source)

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          Aquarium of the Pacific
          Cal Coast; California Coastkeeper Alliance
          Environmental Defense Fund
          Friends of the Sea Otter
          Heal the Bay
          National Resources Defense Council
          Oceana
          Paw PAC
          Planning and Conservation League
          Robert Down Elementary School Fifth Graders in Pacific 
          Grove, California
          Save Our Shores
          Seventh Generation Advisors
          Sierra Club California
          Temple Beth El Second Graders in Aptos, California
          The Otter Project
          WILDCOAST/COASTASALVAJE

           ARGUMENTS IN SUPPORT  :    The author states, "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 - one-fifth of the historic population - 
          and we do not yet know why the population is recovering so 
          slowly.  The California Sea Otter Fund is a primary source 
          of funding for sea otter field research."

           ASSEMBLY FLOOR  : 
          AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Beall, 
            Block, Blumenfield, Bonilla, Bradford, Brownley, 
            Buchanan, Butler, Charles Calderon, Campos, Carter, 
            Cedillo, Chesbro, Cook, Davis, Dickinson, Eng, Feuer, 
            Fletcher, Fong, Fuentes, Furutani, Beth Gaines, Galgiani, 
            Garrick, Gatto, Gordon, Grove, Hagman, Hall, Harkey, 
            Hayashi, Roger Hern�ndez, Hill, Huber, Hueso, Huffman, 
            Jeffries, Lara, Logue, Bonnie Lowenthal, Ma, Mansoor, 
            Mendoza, Miller, Mitchell, Monning, Morrell, Nestande, 
            Nielsen, Olsen, Pan, Perea, V. Manuel P�rez, Portantino, 
            Silva, Skinner, Smyth, Solorio, Swanson, Torres, Valadao, 
            Wagner, Wieckowski, Williams, Yamada, John A. P�rez
          NOES: Halderman, Jones, Norby
          NO VOTE RECORDED: Bill Berryhill, Conway, Donnelly, Gorell, 
            Knight

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          AGB:do  8/17/11   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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