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CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION
93
Introduced by Senator Laird
February 20, 2025
An act to add and repeal Article 4 (commencing with Section 18737) of Chapter 3 of Part 10.2 of Division 2 of the Revenue and Taxation Code, relating to taxation, and making an appropriation therefor.
Vote: majority Appropriation: yes Fiscal committee: yes Local program: no
LEGISLATIVE COUNSEL’S DIGEST
Existing law allows an individual taxpayer to contribute amounts in excess of their personal income tax liability for the support of specified funds and accounts, including, among others, to the Native California Wildlife Rehabilitation Voluntary Tax Contribution Fund.
This bill would, for taxable years beginning on or after January 1, 2026, and before January 1, 2033, allow an individual to designate on their tax return that a specified amount in excess of their tax liability be transferred to the continuously appropriated California Sea Otter Voluntary Tax Contribution Fund, which would be created by this bill. The bill would require the Franchise Tax Board to revise the tax return form to include a space for the designation of contributions to the fund. By establishing a new continuously appropriated fund, this bill would make an appropriation. The bill would also require the fund to appear on the personal income tax return for taxable years beginning on or after January 1, 2026, and before January 1, 2033. The bill would require that the above provisions remain operative only until December 1, 2033, and be repealed as of that date. However, the bill would provide for an earlier repeal if the Franchise Tax Board determines that the amount of contributions estimated to be received during the 2nd and later calendar years after its first appearance on a return will not at least equal the minimum contribution amount, in which case these provisions would be repealed on December 1 of that year. The bill would require, notwithstanding the repeal of the bill’s provisions, that any contribution amounts designated prior to the repeal of the bill’s provisions be transferred and disbursed in accordance with those provisions, as specified.
The people of the State of California do enact as follows:
SECTION 1.
Article 4 (commencing with Section 18737) is added to Chapter 3 of Part 10.2 of Division 2 of the Revenue and Taxation Code, to read:
Article 4. California Sea Otter Voluntary Tax Contribution Fund
(a) For taxable years beginning on or after January 1, 2026, and before January 1, 2033, 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 Voluntary Tax Contribution Fund, established by Section 18737.1. 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 original 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 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) The Franchise Tax Board shall revise the form of the tax return to include a space labeled the “California Sea Otter Voluntary Tax Contribution Fund.” 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).
There is hereby established in the State Treasury the California Sea Otter Voluntary Tax Contribution Fund to receive contributions made pursuant to Section 18737. 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 18737 to be transferred to the California Sea Otter Voluntary Tax Contribution Fund. The Controller shall transfer from the Personal Income Tax Fund to the California Sea Otter Voluntary Tax Contribution Fund an amount not in excess of the sum of the amounts designated by individuals pursuant to Section 18737 for payment into that fund.
(a) Notwithstanding Section 13340 of the Government Code, all money transferred to the California Sea Otter Voluntary Tax Contribution Fund shall be continuously appropriated without regard for fiscal year, and 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 Wildlife for the purposes of establishing a sea otter fund to be used for sea otter conservation, including, but not limited to, increased investigation, prevention, and enforcement actions related to sea otter mortality, and for public outreach activities that encourage taxpayers to make contributions by voluntary checkoff on a tax return to the California Sea Otter Voluntary Tax Contribution Fund.
(3) Fifty percent of the revenues remaining after allocation pursuant to paragraph (1), to the State 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 nearshore ocean ecosystem, including, but not limited to, program activities to reduce sea otter mortality, and for public outreach activities that encourage taxpayers to make contributions by voluntary checkoff on a tax return to the California Sea Otter Voluntary Tax Contribution Fund. The projects or programs may also address pathogens and water and wastewater treatment technologies.
(b) The State Coastal Conservancy shall solicit available federal, private, matching, and other dollars to maximize or leverage funds appropriated pursuant to paragraph (3) of subdivision (a) to provide the greatest benefit for sea otters.
(c) The State Coastal Conservancy may enter into interagency agreements with public agencies for purposes of paragraph (3) of subdivision (a).
(d) The Department of Fish and Wildlife and the State Coastal Conservancy shall comply with the internet website reporting requirements described in paragraph (1) of subdivision (b) of Section 18873.
(a) This article shall remain in effect only until December 1, 2033, and is repealed as of that date. Notwithstanding paragraph (2) of subdivision (c) of Section 18873, the California Sea Otter Voluntary Tax Contribution Fund shall appear on the personal income tax return for taxable years beginning on or after January 1, 2026, and before January 1, 2033.
(b) 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.
(c) (1) By September 1 of the second calendar year and by September 1 of each subsequent calendar year that the California Sea Otter Voluntary Tax Contribution Fund appears on the tax return, the Franchise Tax Board shall determine whether the amount of contributions estimated to be received during the calendar year will equal or exceed the minimum contribution amount for the calendar year. 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 that the amount of the contributions estimated to be received during a calendar year will not at least equal the minimum contribution amount for the calendar year, this article shall be inoperative with respect to taxable years beginning on or after January 1 of that calendar year and shall be repealed on December 1 of that year.
(3) For purposes of this section, the minimum contribution amount for a calendar year means two hundred fifty thousand dollars ($250,000).