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 The bill would require that the above provisions remain operative only until December 1, 2033, and be repealed as of that date.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appearance on a return will not at least equal the minimum contribution amount, in which case these provisions would be repealed on December 1 of that year.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 bills provisions, that any contribution amounts designated prior to the repeal of the bills provisions be transferred and disbursed in accordance with those provisions, as specified.

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 bills provisions, that any contribution amounts designated prior to the repeal of the bills provisions be transferred and disbursed in accordance with those provisions, as specified.

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 require that the above provisions remain operative only until December 1, 2033, and be repealed as of that date. 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 bills provisions, that any contribution amounts designated prior to the repeal of the bills provisions be transferred and disbursed in accordance with those provisions, as specified.

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 require that the above provisions remain operative only until January December 1, 2033, and be repealed as of December 1 that year. date. The bill would also require the fund continue to appear on the personal income tax return until the above provisions are repealed. for taxable years beginning on or after January 1, 2026, and before January 1, 2033.

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 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 require that the above provisions remain operative only until January 1, 2035. 2033, and be repealed as of December 1 that year. The bill would also require the fund continue to appear on the personal income tax return until the above provisions are repealed.

Existing law establishes the California Cradle-to-Career Data System to be a source for actionable data and research on education, economic, and health outcomes for individuals, families, and communities, and is established to provide for expanded access to tools and services that support the navigation of the education-to-employment pipeline.

Existing law generally prohibits and makes a misdemeanor the disclosure of returns, reports, or documents required to be filed for purposes of tax administration. Existing law establishes certain exceptions and makes any unwarranted disclosure or use of the information by the administering person or receiving agency a misdemeanor.

This bill would create a new exception to the above-described prohibition to authorize the Franchise Tax Board to disclose return or return information to the California Cradle-to-Career Data System through information sharing agreements and pursuant to a participation agreement, as specified. By expanding the scope of an existing crime, this bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Existing law establishes the California Cradle-to-Career Data System to be a source for actionable data and research on education, economic, and health outcomes for individuals, families, and communities, and is established to provide for expanded access to tools and services that support the navigation of the education-to-employment pipeline.

Existing law generally prohibits and makes a misdemeanor the disclosure of returns, reports, or documents required to be filed for purposes of tax administration. Existing law establishes certain exceptions and makes any unwarranted disclosure or use of the information by the administering person or receiving agency a misdemeanor.

This bill would create a new exception to the above-described prohibition to authorize the Franchise Tax Board to disclose return or return information to the California Cradle-to-Career Data System through information sharing agreements and pursuant to a participation agreement, as specified. By expanding the scope of an existing crime, this bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

 UNFINISHED BUSINESS  

Bill No: SB 575

Author: Laird (D)

Amended: 6/1/26

Vote: 21

SENATE REVENUE AND TAXATION COMMITTEE: 5-0, 1/14/26

AYES: McNerney, Valladares, Ashby, Grayson, Umberg

SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8

SENATE FLOOR: 39-0, 1/26/26 (Consent)

AYES: Allen, Alvarado-Gil, Archuleta, Arreguín, Ashby, Becker, Blakespear, Cabaldon, Caballero, Cervantes, Choi, Cortese, Dahle, Durazo, Grayson, Grove, Hurtado, Jones, Laird, Limón, McGuire, McNerney, Menjivar, Niello, Ochoa Bogh, Padilla, Pérez, Reyes, Richardson, Rubio, Seyarto, Smallwood-Cuevas, Stern, Strickland, Umberg, Valladares, Wahab, Weber Pierson, Wiener

NO VOTE RECORDED: Gonzalez

ASSEMBLY FLOOR: 75-0, 8/6/26 - See last page for vote

SUBJECT: California Sea Otter Voluntary Tax Contribution Fund

SOURCE: Defenders of Wildlife

DIGEST:

This bill reestablishes the California Sea Otter Voluntary Tax Contribution Fund and authorizes a taxpayer to make a voluntary contribution to the fund on their state personal income tax return for tax years 2026 through 2033.

Assembly Amendments of 6/1/26 (1) clarify that taxpayers are authorized to make voluntary contributions to the Fund on an original return during taxable years 2026-2032; and (2) make the Fund inoperative if the Franchise Tax Board (FTB) determines that it will receive less than $250,000 in contributions in a calendar year.

ANALYSIS:

Existing law:

1. Allows taxpayers to contribute money from their own resources in excess of the amount they owe in taxes to Voluntary Contribution Funds (VCF) by checking a box on their state Personal Income Tax (PIT) return.
   
2. Establishes several VCFs to be listed on the PIT Return.
   
3. Requires, generally the FTB to remove a VCF due to a sunset provision or if the VCF fails to meet the statutory minimum contribution amount, usually $250,000.
   
4. Provides that after a taxpayer contributes to a VCF, FTB deposits all contributions, minus its administration costs, into a fund named for the VCF.
   
5. Requires that VCFs meet certain best practices, such as:
   
6. Include “voluntary tax contribution” in the fund name;
   
7. Requires the administering agency’s internet website to report specific data related to the usage of the amounts received from a VCF;
   
8. Be repealed following January 1 of the seventh calendar year following the first appearance of the contribution on the tax return and be repealed as of December 1 of that year.

This bill:

1. Reestablishes the California Sea Otter Voluntary Tax Contribution Fund.
   
2. Authorizes a taxpayer to make a voluntary contribution to the fund on their state personal income tax return for tax years 2026 through 2033.
   
3. Requires the VCF to meet the annual $250,000 minimum contribution requirement to remain on the PIT form, or the Fund becomes inoperative.
   
4. Repeals the VCF on December 1, 2033.
   
5. Directs that contributions to this fund are allocated to the Department of Fish and Wildlife and the State Coastal Conservancy for the purposes of researching and preventing sea otter mortality.

Background

California Sea Otter Fund. First added to the tax return in 2006, the California Sea Otter Fund allocates funds equally between the California Coastal Conservancy and the Department of Fish and Wildlife (DFW) (AB 2485, Jones, Chapter 296, Statutes of 2006). AB 2485 directed DFW to use funds for investigation, prevention, and enforcement actions related to sea otter mortality, as well as public outreach activities related to the VCF; DFW has used these funds primarily, but not exclusively, for staff costs for DFW scientists to investigate causes of sea otter mortality and other potential factors limiting population growth. DFW also uses funds for marine wildlife research in conjunction with funds from other sources.

AB 2485 required the Coastal Conservancy to use funds from the sea otter VCF for research and programs related to the near-shore ecosystem, including sea otters. The Conservancy administers an annual grant program ($165,000 in 2019) funded in part by the VCF. The VCF has funded a variety of projects, including educating kayakers about sea otters, removing non-native carp from sea otter habitat in the City of Watsonville, and investigating sea otter mortality patterns.

The California Sea Otter Fund has consistently raised more than $300,000 per year, which exceeds its minimum contribution amount. As a result, the Legislature has extended the fund three times: AB 971 (Monning, Chapter 209, Statutes of 2011), SB 17 (Monning, Chapter 136, Statutes of 2015), and SB 587 (Monning, Chapter 229, Statutes of 2020). However, the Sea Otter VCF failed to meet the minimum annual contribution amount of $250,000 during 2025 and, as a result, was repealed, and did not appear on the 2025 tax return.

Related legislation

SB 881 (McNerney, 2026), which, among other provisions, extends the January 1, 2026, repeal date for the Emergency Food for Families Voluntary Tax Contribution Fund to January 1, 2037.

SB 1073 (Smallwood-Cuevas, 2026), which establishes the Black Cultural District Voluntary Tax Contribution Fund, and authorizes a taxpayer to make a voluntary contribution to the fund on their state personal income tax return for taxable years 2026 through 2032.

AB 611 (Lee, 2025), which establishes the California Spinal Cord Injury Research Voluntary Tax Contribution Fund and authorizes a taxpayer to make a voluntary contribution to the fund on their state personal income tax return from tax year 2027 to 2033.

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

According to the Assembly Appropriations Committee:

• Annual General Fund revenue loss of approximately $6,000. FTB generally assumes $6,000 in GF revenue loss for every $250,000 in Fund contributions.
• Minor and absorbable costs to the FTB and the State Controller’s Office to administer another voluntary contribution fund program, likely offset by Fund contributions.
• Minor and absorbable costs to DFW and the State Coastal Conservancy to continue administering sea otter programs and report specified information, likely offset by Fund contributions.

SUPPORT: (Verified 8/7/26)

Defenders of Wildlife (source)
350 Bay Area Action
Center for Biological Diversity
Clean Water Action
Environment California
Monterey Bay Aquarium
Natural Resources Defense Council
Planning and Conservation League
Resource Renewal Institute
Sierra Club California
Surfrider Foundation

OPPOSITION: (Verified 8/7/26)

None received

ARGUMENTS IN SUPPORT:

According to the author, “Senate Bill 575 re-establishes the California Sea Otter Voluntary Contribution Fund to allow taxpayers to continue supporting sea otter conservation efforts through voluntary tax return donations. I authored the bill that created this fund in 2006 in the Assembly. Since then, the fund has supported sea otter recovery efforts and reintroduction planning, community engagement and education, and sea otter rescue and rehabilitation. The Sea Otter Fund failed to meet its minimum contribution requirement in 2024 thereby making the fund inoperative. SB 575 will re-establish the fund with a sunset of 2035 and remove the minimum contribution limit to ensure the state can continue funding sea otter conservation.”

ASSEMBLY FLOOR: 75-0 , 8/6/26

AYES: Addis, Aguiar-Curry, Ahrens, Alanis, Alvarez, Arambula, Ávila Farías, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Caloza, Carrillo, Castillo, Chen, Connolly, Davies, DeMaio, Dixon, Ellis, Gabriel, Garcia, Gipson, Jeff Gonzalez, Mark González, Hadwick, Haney, Harabedian, Hart, Hoover, Irwin, Jackson, Johnson, Kalra, Krell, Lackey, Lee, Lowenthal, Macedo, McKinnor, Muratsuchi, Nguyen, Ortega, Pacheco, Papan, Patel, Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Ransom, Celeste Rodriguez, Michelle Rodriguez, Rogers, Blanca Rubio, Schiavo, Schultz, Sharp-Collins, Solache, Soria, Stefani, Ta, Tangipa, Valencia, Wallis, Ward, Wicks, Wilson, Zbur, Rivas

NO VOTE RECORDED: Elhawary, Flora, Fong, Sanchez

Prepared by: Haley Summers / REV. & TAX. / (916) 651-4117

8/7/26 13:36:14

**** END ****

SENATE THIRD READING

STR Bill Id:SB 575

Author:(Laird)

As Amended Ver:June 1, 2026

Majority vote

SUMMARY

Requires the Franchise Tax Board (FTB) to revise the personal income tax (PIT) return to add the California Sea Otter Voluntary Tax Contribution Fund (Fund) as a voluntary contribution fund (VCF) for taxable years beginning on or after January 1, 2026, and before January 1, 2033.

Major Provisions

1. Requires the Fund to meet a standard minimum contribution amount of $250,000 to remain in effect.
2. Provides that all of the moneys transferred to the Fund shall be continuously appropriated and first allocated to the FTB and the State Controller for reimbursement of all administrative costs incurred. Additionally, the allocation of remaining revenues is as follows:
   1. 50% to the California Department of Fish and Wildlife (CDFW) 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 Fund; and,
   2. 50% 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 Fund. The projects or programs may also address pathogens and water and wastewater treatment technologies.
3. Requires the State Coastal Conservancy to solicit available federal, private, matching, and other dollars to maximize or leverage contributions made to the Fund to provide the greatest benefit for sea otters.
4. Requires the CDFW and State Coastal Conservancy to post on their websites information regarding the process for awarding money, the amount of money spent on administration, and an itemization of how program funds were awarded by the agency, including, but not limited to, information regarding recipients of funds.

COMMENTS

1. What would this bill do? For taxable years beginning on or after January 1, 2026, and before January 1, 2033, this bill would require the inclusion of the Fund as a VCF on the PIT return. After reimbursement of the FTB and State Controller for their administrative costs, all moneys in the Fund would be continuously appropriated to the State Coastal Conservancy and the CDFW to be used for sea otter conservation, research, and public outreach activities that encourage taxpayers to make contributions to the Fund via their PIT return.
2. Prior sea otter VCF: The Fund was originally created by legislation in 2006 and last appeared on the 2024 return. The total annual contributions to the Fund for the past three years are as follows:

From 2008 to 2026, the State Coastal Conservancy was awarded a total of $2,211,017.18 in grants and contracts from the Fund. The program that received the largest amount of funding is the Be Otter Savvy Program ($337,800), which educated the wildlife-viewing public (such as kayakers and photographers) on responsible viewing of wild sea otters to reduce the stress and harassment and is collecting data on disturbance impacts. Other projects include the Sea Otter Savvy's Sea Recovery Community Engagement program ($121,400), conceptual planning for sea otter reintroduction ($155,200), supporting sea otter surrogacy at the Monterey Bay Aquarium ($79,750), and contributing to the construction of sea otter surrogacy enclosures at the Aquarium of the Pacific.

Additionally, the Fund has supported research partnerships between California universities and public agencies to better understand sea otter population dynamics, and human-induced threats.

1. So many causes, so little space: There are countless worthy causes that would benefit from the inclusion of a VCF on the state's income tax returns. At the same time, space on the returns is limited. Thus, it could be argued that the current system for adding VCFs to the form is subjective and essentially rewards organizations and causes that can convince the Legislature to include their fund on the form.

According to the Author

Senate Bill 575 re-establishes the California Sea Otter Voluntary Contribution Fund to allow taxpayers to continue supporting sea otter conservation efforts through voluntary tax return donations. I authored the bill that created this fund in 2006 in the Assembly. Since then, the fund has supported sea otter recovery efforts and reintroduction planning, community engagement and education, and sea otter rescue and rehabilitation.

The Sea Otter Fund failed to meet its minimum contribution requirement in 2024 thereby making the fund inoperative. SB 575 will re-establish the fund with a sunset of 2033 […]

Arguments in Support

This bill is supported by Defenders of Wildlife, which notes:

As part of our work towards sea otter recovery, Defenders of Wildlife works collaboratively with state agencies each year to promote the California Sea Otter VCF. Facing economic uncertainty and reductions in federal funding for wildlife conservation, much of the important sea otter research and restoration work will be at risk without this essential funding pot. The California Sea Otter VCF has been successfully raising critical funding for nearly two decades and deserves to continue. Senate Bill 575 will re-establish the VCF with an expiration date of 2033, providing another seven years of meaningful funding for a still-struggling sea otter population hoping to resurge.

Arguments in Opposition

None on file.

FISCAL COMMENTS

According to the Assembly Committee on Appropriations:

1. Beginning fiscal year 2027-28, annual General Fund revenue loss of approximately $6,000. FTB generally assumes $6,000 in GF revenue loss for every $250,000 in Fund contributions.
2. Minor and absorbable costs to the FTB and the SCO to administer another voluntary contribution fund (VCF) program, likely offset by Fund contributions.
3. Minor and absorbable costs to DFW and the SCC to continue administering sea otter programs and report specified information, likely offset by Fund contributions.

VOTES

SENATE FLOOR: 39-0-1

YES: Allen, Alvarado-Gil, Archuleta, Arreguín, Ashby, Becker, Blakespear, Cabaldon, Caballero, Cervantes, Choi, Cortese, Dahle, Durazo, Grayson, Grove, Hurtado, Jones, Laird, Limón, McGuire, McNerney, Menjivar, Niello, Ochoa Bogh, Padilla, Pérez, Reyes, Richardson, Rubio, Seyarto, Smallwood-Cuevas, Stern, Strickland, Umberg, Valladares, Wahab, Weber Pierson, Wiener

ABS, ABST OR NV: Gonzalez

ASM REVENUE AND TAXATION: 7-0-0

YES: Gipson, Sanchez, Carrillo, DeMaio, McKinnor, Quirk-Silva, Michelle Rodriguez

ASM APPROPRIATIONS: 15-0-0

YES: Wicks, Hoover, Aguiar-Curry, Calderon, Caloza, Dixon, Fong, Mark González, Krell, Pacheco, Pellerin, Sharp-Collins, Solache, Ta, Tangipa

UPDATED

VERSION: June 1, 2026

CONSULTANT: Wesley Whitaker / REV. & TAX. / (916) 319-2098 FN: 0003204

SENATE THIRD READING

STR Bill Id:SB 575

Author:(Laird)

As Amended Ver:June 1, 2026

Majority vote

SUMMARY

Requires the Franchise Tax Board (FTB) to revise the personal income tax (PIT) return to add the California Sea Otter Voluntary Tax Contribution Fund (Fund) as a voluntary contribution fund (VCF) for taxable years beginning on or after January 1, 2026, and before January 1, 2033.

Major Provisions

1. Requires the Fund to meet a standard minimum contribution amount of $250,000 to remain in effect.
2. Provides that all of the moneys transferred to the Fund shall be continuously appropriated and first allocated to the FTB and the State Controller for reimbursement of all administrative costs incurred. Additionally, the allocation of remaining revenues is as follows:
   1. 50% to the California Department of Fish and Wildlife (CDFW) 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 Fund; and,
   2. 50% 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 Fund. The projects or programs may also address pathogens and water and wastewater treatment technologies.
3. Requires the State Coastal Conservancy to solicit available federal, private, matching, and other dollars to maximize or leverage contributions made to the Fund to provide the greatest benefit for sea otters.
4. Requires the CDFW and State Coastal Conservancy to post on their websites information regarding the process for awarding money, the amount of money spent on administration, and an itemization of how program funds were awarded by the agency, including, but not limited to, information regarding recipients of funds.

COMMENTS

1. What would this bill do? For taxable years beginning on or after January 1, 2026, and before January 1, 2033, this bill would require the inclusion of the Fund as a VCF on the PIT return. After reimbursement of the FTB and State Controller for their administrative costs, all moneys in the Fund would be continuously appropriated to the State Coastal Conservancy and the CDFW to be used for sea otter conservation, research, and public outreach activities that encourage taxpayers to make contributions to the Fund via their PIT return.
2. Prior sea otter VCF: The Fund was originally created by legislation in 2006 and last appeared on the 2024 return. The total annual contributions to the Fund for the past three years are as follows:

From 2008 to 2026, the State Coastal Conservancy was awarded a total of $2,211,017.18 in grants and contracts from the Fund. The program that received the largest amount of funding is the Be Otter Savvy Program ($337,800), which educated the wildlife-viewing public (such as kayakers and photographers) on responsible viewing of wild sea otters to reduce the stress and harassment and is collecting data on disturbance impacts. Other projects include the Sea Otter Savvy's Sea Recovery Community Engagement program ($121,400), conceptual planning for sea otter reintroduction ($155,200), supporting sea otter surrogacy at the Monterey Bay Aquarium ($79,750), and contributing to the construction of sea otter surrogacy enclosures at the Aquarium of the Pacific.

Additionally, the Fund has supported research partnerships between California universities and public agencies to better understand sea otter population dynamics, and human-induced threats.

1. So many causes, so little space: There are countless worthy causes that would benefit from the inclusion of a VCF on the state's income tax returns. At the same time, space on the returns is limited. Thus, it could be argued that the current system for adding VCFs to the form is subjective and essentially rewards organizations and causes that can convince the Legislature to include their fund on the form.

According to the Author

Senate Bill 575 re-establishes the California Sea Otter Voluntary Contribution Fund to allow taxpayers to continue supporting sea otter conservation efforts through voluntary tax return donations. I authored the bill that created this fund in 2006 in the Assembly. Since then, the fund has supported sea otter recovery efforts and reintroduction planning, community engagement and education, and sea otter rescue and rehabilitation.

The Sea Otter Fund failed to meet its minimum contribution requirement in 2024 thereby making the fund inoperative. SB 575 will re-establish the fund with a sunset of 2033 […]

Arguments in Support

This bill is supported by Defenders of Wildlife, which notes:

As part of our work towards sea otter recovery, Defenders of Wildlife works collaboratively with state agencies each year to promote the California Sea Otter VCF. Facing economic uncertainty and reductions in federal funding for wildlife conservation, much of the important sea otter research and restoration work will be at risk without this essential funding pot. The California Sea Otter VCF has been successfully raising critical funding for nearly two decades and deserves to continue. Senate Bill 575 will re-establish the VCF with an expiration date of 2033, providing another seven years of meaningful funding for a still-struggling sea otter population hoping to resurge.

Arguments in Opposition

None on file.

FISCAL COMMENTS

According to the Assembly Committee on Appropriations:

1. Beginning fiscal year 2027-28, annual General Fund revenue loss of approximately $6,000. FTB generally assumes $6,000 in GF revenue loss for every $250,000 in Fund contributions.
2. Minor and absorbable costs to the FTB and the SCO to administer another voluntary contribution fund (VCF) program, likely offset by Fund contributions.
3. Minor and absorbable costs to DFW and the SCC to continue administering sea otter programs and report specified information, likely offset by Fund contributions.

VOTES

SENATE FLOOR: 39-0-1

YES: Allen, Alvarado-Gil, Archuleta, Arreguín, Ashby, Becker, Blakespear, Cabaldon, Caballero, Cervantes, Choi, Cortese, Dahle, Durazo, Grayson, Grove, Hurtado, Jones, Laird, Limón, McGuire, McNerney, Menjivar, Niello, Ochoa Bogh, Padilla, Pérez, Reyes, Richardson, Rubio, Seyarto, Smallwood-Cuevas, Stern, Strickland, Umberg, Valladares, Wahab, Weber Pierson, Wiener

ABS, ABST OR NV: Gonzalez

ASM REVENUE AND TAXATION: 7-0-0

YES: Gipson, Sanchez, Carrillo, DeMaio, McKinnor, Quirk-Silva, Michelle Rodriguez

ASM APPROPRIATIONS: 15-0-0

YES: Wicks, Hoover, Aguiar-Curry, Calderon, Caloza, Dixon, Fong, Mark González, Krell, Pacheco, Pellerin, Sharp-Collins, Solache, Ta, Tangipa

UPDATED

VERSION: June 1, 2026

CONSULTANT: Wesley Whitaker / REV. & TAX. / (916) 319-2098 FN: 0003204

Date of Hearing: June 24, 2026

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Buffy Wicks, Chair

SBPCA Bill Id:SB 575

Author:(Laird) – As Amended Ver:June 1, 2026

Urgency: No State Mandated Local Program: No Reimbursable: No

SUMMARY:

This bill establishes the California Sea Otter Voluntary Tax Contribution Fund (Fund) on the Personal Income Tax (PIT) return.

Specifically, this bill:

1. Requires the Franchise Tax Board (FTB) to revise the PIT return form to designate a space for the Fund and allows, for taxable years beginning January 1, 2026, and before January 1, 2033, a taxpayer to donate a portion of their PIT refund to the Fund.
2. Establishes the Fund in the State Treasury, requires the FTB to notify the State Controller (SCO) of the amount of refund money designated by taxpayers for the Fund, and requires the SCO to transfer this designated amount from the PIT Fund to the Fund.
3. Provides a continuous appropriation from the Fund to the FTB and the SCO for reimbursement of related administrative costs, with 50% of remaining revenues allocated to each of the following:
4. Department of Fish and Wildlife (DFW) to establish a sea otter fund for sea otter conservation and for public outreach activities to encourage taxpayers to make contributions to the Fund.
5. State Coastal Conservancy (SCC) for competitive grants and contracts to public agencies and nonprofit organizations for activities related to the Federal Sea Otter Recovery Plan or improving the nearshore ocean ecosystem and for public outreach activities to encourage taxpayers to make contributions to the Fund.
6. Requires the SCC to solicit available federal, private, matching, and other dollars to maximize Fund revenues to provide the greatest benefit for sea otters, and requires DFW and the SCC to comply with certain online reporting requirements regarding Fund expenditures.
7. Requires the FTB to annually estimate whether the Fund will receive the minimum contribution amount ($250,000) to remain on the PIT return in the next taxable year.

FISCAL EFFECT:

1. Beginning fiscal year 2027-28, annual General Fund revenue loss of approximately $6,000. FTB generally assumes $6,000 in GF revenue loss for every $250,000 in Fund contributions.
2. Minor and absorbable costs to the FTB and the SCO to administer another voluntary contribution fund (VCF) program, likely offset by Fund contributions.
3. Minor and absorbable costs to DFW and the SCC to continue administering sea otter programs and report specified information, likely offset by Fund contributions.

COMMENTS:

1. Purpose. According to the author:

[This bill] re-establishes the California Sea Otter [VCF] to allow taxpayers to continue supporting sea otter conservation efforts through voluntary tax return donations. I authored the bill that created this fund in 2006 in the Assembly. Since then, the fund has supported sea otter recovery efforts and reintroduction planning, community engagement and education, and sea otter rescue and rehabilitation.

This bill is sponsored by Defenders of Wildlife and supported by other conservation and environmental organizations.

1. Background. VCFs. Existing law allows a taxpayer to donate an amount in excess of their PIT liability to one or more VCFs listed on the PIT return. There were 18 VCFs listed on the 2025 return. Generally, a VCF remains on the PIT return until a statutory sunset date, but if the FTB determines the VCF fails to meet a $250,000 minimum contribution amount, the VCF is statutorily repealed and the FTB removes the VCF from the return.

California Sea Otter VCF. Legislation enacted in 2006 created the original California Sea Otter VCF to support sea otter conservation and recovery, which has been extended several times over the decades. Most recently, SB 587 (Monning), Chapter 229, Statutes of 2020, extended this VCF to 2028 or earlier if estimated contributions fall below the minimum contribution amount. Although the California Sea Otter VCF received $301,979 in 2023 and $254,601 in 2024, the VCF received only $228,948 in 2025, resulting in the FTB removing the VCF from the 2025 PIT return.

This bill re-establishes the California Sea Otter VCF on the 2026 PIT return and the next six PIT returns if the VCF meets the $250,000 minimum contribution amount. However, unlike other VCF programs that impose a limit on state agencies’ use of funds for related administrative costs (for example, the University of California, which distributes grants from the California Pediatric Cancer Research VCF, may use up to 5% of allocations for administering and promoting the program), this bill contains no such limitation and explicitly authorizes DFW and the SCC to use funds for public outreach activities to encourage taxpayers to make contributions through the PIT return.

1. Related Legislation. AB 703 (Lee), Chapter 63, Statutes of 2025, added the California Pediatric Cancer Research VCF to the PIT return.

AB 829 (Sharp-Collins), Chapter 99, Statutes of 2025, added the Parkinson’s Disease Research VCF on the PIT return.

AB 611 (Lee) was recently amended to strike the bill’s previous contents and instead add the California Spinal Cord Injury Research VCF on the PIT return. AB 611 is pending hearing in the Senate Revenue and Taxation Committee.

SB 881 (McNerney) extends the sunset dates for the Emergency Food for Families VCF and the Donated Fresh Fruits and Vegetables tax credit. SB 881 is pending on the Assembly Revenue and Taxation Committee’s suspense file.

SB 1073 (Smallwood-Cuevas) adds the Black Cultural District VCF on the PIT return. SB 1073 is pending hearing by the Assembly Arts, Entertainment, Sports, and Tourism Committee.

Analysis Prepared by: Irene Ho / APPR. / (916) 319-2081

Date of Hearing: June 8, 2026

ASSEMBLY COMMITTEE ON REVENUE AND TAXATION

Mike Gipson, Chair

SBPCA Bill Id:SB 575

Author:(Laird) – As Amended Ver:June 1, 2026

Majority vote. Fiscal committee.

SENATE VOTE: 39-0

SUBJECT: California Sea Otter Voluntary Tax Contribution Fund

SUMMARY: Requires the Franchise Tax Board (FTB) to revise the personal income tax (PIT) return to add the California Sea Otter Voluntary Tax Contribution Fund (Fund) as a voluntary contribution fund (VCF). Specifically, this bill:

1. Establishes the Fund in the State Treasury.
2. Provides that all of the moneys transferred to the Fund shall be continuously appropriated and first allocated to the FTB and the State Controller for reimbursement of all administrative costs incurred. Additionally, the allocation of remaining revenues is as follows:
   1. 50% to the California Department of Fish and Wildlife (CDFW) 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 Fund; and,
   2. 50% 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 Fund. The projects or programs may also address pathogens and water and wastewater treatment technologies.
3. Requires the State Coastal Conservancy to solicit available federal, private, matching, and other dollars to maximize or leverage contributions made to the Fund to provide the greatest benefit for sea otters.
4. Requires the CDFW and State Coastal Conservancy to post on their websites information regarding the process for awarding money, the amount of money spent on administration, and an itemization of how program funds were awarded by the agency, including, but not limited to, information regarding recipients of funds.
5. Provides that the VCF shall be operative for taxable years beginning on or after January 1, 2026, and before January 1, 2033.
6. Requires the Fund to meet a standard minimum contribution amount of $250,000 to remain in effect.

EXISTING LAW:

1. Allows taxpayers to contribute to one or more of 18 VCFs on the 2025 PIT return. (Revenue and Taxation Code (R&TC) Section 18700 et seq.)
2. Requires each VCF to meet an annual minimum contribution amount to remain in effect, except for the California Firefighters' Memorial Voluntary Tax Contribution Fund, the California Peace Officer Memorial Foundation Voluntary Tax Contribution Fund, the California Senior Citizen Advocacy Voluntary Tax Contribution Fund, and the California Seniors Special Fund. (R&TC Sections 18801 et seq., 18805 et seq., 18730 et seq., and 18771 et seq.)
3. Provides a specific sunset date for each VCF, except for the California Seniors Special Fund and the State Parks Protection Fund. (R&TC Sections 18771 et seq. and 18900.1 et seq.)
4. Requires the statutory provisions establishing a VCF to remain in effect only until January 1 of the seventh calendar year following the VCF's first appearance on the PIT return. (R&TC Section 18873.)

FISCAL EFFECT: The FTB estimates that this bill would reduce General Fund revenues by approximately $6,000 in both fiscal year (FY) 2027-28 and 2028-29.

COMMENTS:

1. The author has provided the following statement in support of this bill:

Senate Bill 575 re-establishes the California Sea Otter Voluntary Contribution Fund to allow taxpayers to continue supporting sea otter conservation efforts through voluntary tax return donations. I authored the bill that created this fund in 2006 in the Assembly. Since then, the fund has supported sea otter recovery efforts and reintroduction planning, community engagement and education, and sea otter rescue and rehabilitation.

The Sea Otter Fund failed to meet its minimum contribution requirement in 2024 thereby making the fund inoperative. SB 575 will re-establish the fund with a sunset of 2033 […]

1. This bill is supported by Defenders of Wildlife, which notes:

As part of our work towards sea otter recovery, Defenders of Wildlife works collaboratively with state agencies each year to promote the California Sea Otter VCF. Facing economic uncertainty and reductions in federal funding for wildlife conservation, much of the important sea otter research and restoration work will be at risk without this essential funding pot. The California Sea Otter VCF has been successfully raising critical funding for nearly two decades and deserves to continue. Senate Bill 575 will re-establish the VCF with an expiration date of 2033, providing another seven years of meaningful funding for a still-struggling sea otter population hoping to resurge.

1. Committee Staff Comments:
   1. Prior sea otter VCF: As noted by the author and supporters, the Fund was originally created by legislation in 2006 and last appeared on the 2024 return. The total annual contributions to the Fund for the past three years are as follows:

From 2008 to 2026, the State Coastal Conservancy was awarded a total of $2,211,017.18 in grants and contracts from the Fund. The program that received the largest amount of funding is the Be Otter Savvy Program ($337,800), which educated the wildlife-viewing public (such as kayakers and photographers) on responsible viewing of wild sea otters to reduce the stress and harassment and is collecting data on disturbance impacts. Other projects include the Sea Otter Savvy's Sea Recovery Community Engagement program ($121,400), conceptual planning for sea otter reintroduction ($155,200), supporting sea otter surrogacy at the Monterey Bay Aquarium ($79,750), and contributing to the construction of sea otter surrogacy enclosures at the Aquarium of the Pacific.^[1]

Additionally, the Fund has supported research partnerships between California universities and public agencies to better understand sea otter population dynamics, and human-induced threats.

• 1. What would this bill do? For taxable years beginning on or after January 1, 2026 and before January 1, 2033, this bill would require the inclusion of the Fund as a VCF on the PIT return. After reimbursement of the FTB and State Controller for their administrative costs, all moneys in the Fund would be continuously appropriated to the State Coastal Conservancy and the CDFW to be used for sea otter conservation, research, and public outreach activities that encourage taxpayers to make contributions to the Fund via their PIT return.
  2. So many causes, so little space: There are countless worthy causes that would benefit from the inclusion of a VCF on the state's income tax returns. At the same time, space on the returns is limited. Thus, it could be argued that the current system for adding VCFs to the form is subjective and essentially rewards organizations and causes that can convince the Legislature to include their fund on the form.
  3. Leveling the field: In an effort to promote a fair playing field, the Legislature enacted a series of requirements for new and extended VCFs. Specifically, R&TC Section 18873 was added by SB 1476 (Committee on Governance and Finance), Chapter 597, Statutes of 2016, to bring a degree of uniformity and improvement to the disparate VCF statutes. Among other things, Section 18873 provides the following parameters:
     1. The words "voluntary tax contribution" shall be included as part of the name of the fund;
     2. The website of the fund's administering agency shall report the process for awarding money, the amount of money spent on administration, and an itemization of how program funds were awarded, as specified;
     3. The minimum contribution amount that must be received for the fund to continue appearing on the tax return is $250,000, without subsequent inflation adjustments; and,
     4. The statutory provisions establishing a VCF shall remain in effect only until January 1 of the seventh calendar year following the VCF's first appearance on the return.
  4. A note on administrative costs: VCFs often limit the amount of fund moneys the administering agency may use for its administrative costs to ensure that the bulk of fund proceeds go to their intended use. For example, the statutory provisions authorizing the Prevention of Animal Homelessness and Cruelty Voluntary Tax Contribution Fund specify that the Department of Food and Agriculture may only use up to 5% of the funds allocated to the department for administering its grant program. As such, the Committee may wish to consider a similar cap on the CDFW and State Coastal Commission's use of Fund proceeds for administrative purposes.
  5. Related legislation:
     
     1. SB 1073 (Smallwood-Cuevas) would create the Black Cultural District VCF and require the FTB to include it on the PIT return for taxable years beginning on or after January 1, 2026, and before January 1, 2033, provided it receives at least $250,000 in annual contributions. SB 1073 (Smallwood-Cuevas) will be heard by this Committee today.
        
     2. SB 881 (McNerney) would, among other things, extend the statutory provisions authorizing the Emergency Food for Families Voluntary Tax Contribution Fund until January 1, 2037, as provided. SB 881 (McNerney) is scheduled to be heard by this Committee on June 15, 2026.
        
  6. Prior legislation:
     1. AB 2485 (Jones and Laird), Chapter 296, Statutes of 2006, created the initial California Sea Otter Voluntary Contribution Fund.
     2. AB 971 (Monning), Chapter 209, Statutes of 2011, extended the Fund's sunset date to January 1, 2016.
     3. SB 17 (Monning), Chapter 136, Statutes of 2015, extended the Fund's sunset date to January 1, 2021.
     4. SB 587 (Monning), Chapter 229, Statutes of 2020, extended the Fund's sunset date to 2028 or earlier if estimated contributions fall below $250,000.

REGISTERED SUPPORT / OPPOSITION:

Support

350 Bay Area Action
Center for Biological Diversity
Clean Water Action
Defenders of Wildlife
Environment California
Monterey Bay Aquarium
Natural Resources Defense Council (NRDC)
Planning and Conservation League
Resource Renewal Institute
Sierra Club California
Surfrider Foundation

Opposition

None on file

Analysis Prepared by: Wesley Whitaker / REV. & TAX. / (916) 319-2098

1. "Sea Otter Recovery Fund." California State Coastal Conservancy. https://scc.ca.gov/grants/sea-otter-recovery-fund/. ↑

 CONSENT  

Bill No: SB 575

Author: Laird (D)

Amended: 1/15/26

Vote: 21

SENATE REVENUE AND TAXATION COMMITTEE: 5-0, 1/14/26

AYES: McNerney, Valladares, Ashby, Grayson, Umberg

SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8

SUBJECT: California Sea Otter Voluntary Tax Contribution Fund

SOURCE: Defenders of Wildlife

DIGEST:

This bill reestablishes the California Sea Otter Voluntary Tax Contribution Fund and authorizes a taxpayer to make a voluntary contribution to the fund on their state personal income tax return for tax years 2026 through 2033.

ANALYSIS:

Existing law:

1. Allows taxpayers to contribute money from their own resources in excess of the amount they owe in taxes to Voluntary Contribution Funds (VCF) by checking a box on their state Personal Income Tax (PIT) return.
   
2. Establishes several VCFs to be listed on the PIT Return.
   
3. Generally requires the Franchise Tax Board (FTB) to remove a VCF due to a sunset provision or if the VCF fails to meet the statutory minimum contribution amount.
   
4. Generally requires FTB to annually determine whether estimated contributions to each VCF will exceed $250,000 to remain on the PIT form.
   
5. Provides that after a taxpayer contributes to a VCF, the FTB deposits all contributions, minus its administration costs, into a fund named for the VCF.
   
6. Requires that VCFs meet certain best practices, such as:
   
7. Include “voluntary tax contribution” in the fund name;
   
8. Requires the administering agency’s internet website to report specific data related to the usage of the amounts received from a VCF;
   
9. Be repealed following January 1 of the seventh calendar year following the first appearance of the contribution on the tax return and be repealed as of December 1 of that year.

This bill:

1. Reestablishes the California Sea Otter Voluntary Tax Contribution Fund.
   
2. Authorizes a taxpayer to make a voluntary contribution to the fund on their state personal income tax return for tax years 2026 through 2033.
   
3. Exempts the VCF from the annual $250,000 minimum contribution requirement to remain on the PIT form.
   
4. Repeals the VCF on December 1, 2033.
   
5. Directs that contributions to this fund are allocated to the Department of Fish and Wildlife and the State Coastal Conservancy for the purposes of researching and preventing sea otter mortality.

Background

California Sea Otter Fund. First added to the tax return in 2006, the California Sea Otter Fund allocates funds equally between the California Coastal Conservancy and the Department of Fish and Wildlife (AB 2485, Jones, Chapter 296, Statutes of 2006). AB 2485 directed the Department to use funds for investigation, prevention, and enforcement actions related to sea otter mortality, as well as public outreach activities related to the VCF; the Department has used these funds primarily, but not exclusively, for staff costs for Department scientists to investigate causes of sea otter mortality and other potential factors limiting population growth. The Department also uses funds for marine wildlife research in conjunction with funds from other sources.

AB 2485 required the Coastal Conservancy to use funds from the sea otter VCF for research and programs related to the near-shore ecosystem, including sea otters. The Conservancy administers an annual grant program ($165,000 in 2019) funded in part by the VCF. The VCF has funded a variety of projects, including educating kayakers about sea otters, removing non-native carp from sea otter habitat in the City of Watsonville, and investigating sea otter mortality patterns.

The California Sea Otter Fund has consistently raised more than $300,000 per year, which exceeds its minimum contribution amount. As a result, the Legislature has extended the fund three times: AB 971 (Monning, Chapter 209, Statutes of 2011), SB 17 (Monning, Chapter 136, Statutes of 2015), and SB 587 (Monning, Chapter 229, Statutes of 2020). However, the sea otter VCF failed to meet the minimum annual contribution amount of $250,000 during 2025 and, as a result, was repealed, and will not appear on the tax return in the 2025 taxable year unless legislatively reauthorized.

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

SUPPORT: (Verified 1/20/26)

Defenders of Wildlife (Source)

OPPOSITION: (Verified 1/20/26)

None received

ARGUMENTS IN SUPPORT: According to the author, “Senate Bill 575 re-establishes the California Sea Otter Voluntary Contribution Fund to allow taxpayers to continue supporting sea otter conservation efforts through voluntary tax return donations. I authored the bill that created this fund in 2006 in the Assembly. Since then, the fund has supported sea otter recovery efforts and reintroduction planning, community engagement and education, and sea otter rescue and rehabilitation. The Sea Otter Fund failed to meet its minimum contribution requirement in 2024 thereby making the fund inoperative. SB 575 will re-establish the fund with a sunset of 2035 and remove the minimum contribution limit to ensure the state can continue funding sea otter conservation.”

Prepared by: Haley Summers / REV. & TAX. / (916) 651-4117 1/21/26 16:05:25

1/21/26 16:05:25 **** END ****

SENATE COMMITTEE ON REVENUE AND TAXATION

Senator Jerry McNerney, Chair

2025 - 2026 Regular

California Sea Otter Voluntary Tax Contribution Fund

Reestablishes the California Sea Otter Voluntary Tax Contribution Fund; authorizes a taxpayer to make a voluntary contribution to the fund on their state personal income tax return for tax years 2027 through 2034.

Background

Voluntary Tax Contribution Funds. California allows taxpayers to contribute money towards voluntary contribution funds (VCFs), commonly called “check-offs,” on their Personal Income Tax (PIT) return. Taxpayers may contribute money to one or more of these VCFs from the excess of the amount they owe in taxes and can claim a deduction for the year the contribution is made. Their contribution to a VCF is only made if their tax payments and credits exceed the taxes they owe to the state. Taxpayers can voluntarily contribute to one or several of the 18 organizations on their PIT return. These organizations include nonprofits that work on disease, natural resource conservation, and more.

The Legislature adds each VCF individually to PIT return forms through legislation. With a few exceptions, VCFs remain on the return until the Franchise Tax Board (FTB) removes the VCF due to a sunset provision or the VCF fails to meet the statutory minimum contribution amount. By September 1 of each calendar year, the FTB must determine whether estimated contributions to specified funds will be less than the minimum contribution amount required for that calendar year. If FTB estimates a fund will fail to meet the minimum contribution amount for a calendar year, the fund is repealed on January 1 of the following calendar year. In general, the annual minimum contribution amount is $250,000, beginning the fund’s second year, with some adjusted for inflation. The VCFs below do not have a minimum contribution requirement:

• California Firefighters’ Memorial Foundation Fund;
• California Peace Officer Memorial Foundation Fund;
• California Senior Citizen Advocacy Voluntary Tax Contribution Fund; and
• California Seniors Special Fund.

In tax year 2025, there are 18 active VCFs. The contributions to these VCF during the year 2025 were as follows^[1]:

After a taxpayer contributes to a VCF, the FTB deposits all contributions, minus its administration costs, into a fund named for the VCF. State agencies administer most VCF funds to fund the purpose outlined in the legislation that placed the VCF on the PIT form. For other VCFs, the State Controller’s office allocates taxpayer contributions directly to the private organization without going through an administrative agency. For example, the State Controller’s office directly passes taxpayer contributions to the California Fire Foundation.

Senate Bill 1476. In December 2015, the Senate Committee on Governance and Finance held an oversight hearing on VCFs. The Committee identified best practices and reforms needed to ensure the state allocates taxpayer contributions toward charitable purposes transparently and in a timely manner. In 2016, the Legislature enacted SB 1476 (Committee on Governance and Finance), which codified those best practices and established general provisions for all VCFs enacted or extended after January 2, 2017. Specifically, the bill required VCFs:

• The words “voluntary tax contribution” must be included in the fund's name;
• The administering agency’s website shall report specific data related to the usage of the amounts received via voluntary contribution;
• A voluntary contribution fund must receive a minimum contribution of $250,000 for the second calendar year after it first appears on the tax return and each year after that to remain on the tax return; and
• A voluntary tax contribution would remain in effect only until January 1 of the seventh calendar year following the first appearance of the contribution on the tax return and be repealed as of December 1 of that year.

California Sea Otter Fund. First added to the tax return in 2006, the California Sea Otter Fund allocates funds equally between the California Coastal Conservancy and the Department of Fish and Wildlife (AB 2485, Jones). AB 2485 directed the Department to use funds for investigation, prevention, and enforcement actions related to sea otter mortality, as well as public outreach activities related to the VCF; the Department has used these funds primarily, but not exclusively, for staff costs for Department scientists to investigate causes of sea otter mortality and other potential factors limiting population growth. The Department also uses funds for marine wildlife research in conjunction with funds from other sources.

AB 2485 required the Coastal Conservancy to use funds from the sea otter VCF for research and programs related to the near-shore ecosystem, including sea otters. The Conservancy administers an annual grant program ($165,000 in 2019) funded in part by the VCF. The VCF has funded a variety of projects, including educating kayakers about sea otters, removing non-native carp from sea otter habitat in the City of Watsonville, and investigating sea otter mortality patterns.

The California Sea Otter Fund has consistently raised more than $300,000 per year, which exceeds its minimum contribution amount. As a result, the Legislature has extended the fund three times: AB 971 (Monning, 2011), SB 17 (Monning, 2015), and SB 587 (Monning, 2020). However, the sea otter VCF failed to meet the minimum annual contribution amount of $250,000 during 2025 and, as a result, was repealed, and won’t appear on the tax return in the 2025 taxable year unless legislatively reauthorized.

The author wants to reestablish the California Sea Otter VCF through tax year 2034.

Proposed Law

Senate Bill 575 reestablishes the California Sea Otter Voluntary Tax Contribution Fund, authorizes a taxpayer to make a voluntary contribution to the fund on their state personal income tax return, and repeals the VCF on January 1, 2035. Contributions to this fund are allocated to the Department of Fish and Wildlife and the State Coastal Conservancy for the purposes of researching and preventing sea otter mortality.

State Revenue Impact

Pending.

Comments

1. Purpose of the bill. According to the author, “Senate Bill 575 re-establishes the California Sea Otter Voluntary Contribution Fund to allow taxpayers to continue supporting sea otter conservation efforts through voluntary tax return donations. I authored the bill that created this fund in 2006 in the Assembly. Since then, the fund has supported sea otter recovery efforts and reintroduction planning, community engagement and education, and sea otter rescue and rehabilitation. The Sea Otter Fund failed to meet its minimum contribution requirement in 2024 thereby making the fund inoperative. SB 575 will re-establish the fund with a sunset of 2035 and remove the minimum contribution limit to ensure the state can continue funding sea otter conservation.”
   
2. Many worthy causes. Today, the PIT return contains 18 VCFs. Even though the Legislature has added many VCFs over the years, total contributions for all funds have remained fairly consistent. As a result, extending current or adding new ones may make it more difficult for each to meet its minimum contribution requirement.
   
3. Minimum contribution requirement. The $250,000 minimum contribution requirement for VCFs, which SB 1476 made mandatory for all new or extended VCFs, was intended to ensure that only funds with significant taxpayer support remain on the tax return, thereby justifying administrative costs and competition among funds. While paper forms posed clear cost and space concerns, the minimum requirement persists even as taxpayers have shifted over time to filing returns mostly electronically. Additionally, despite the increased number of VCFs added to tax forms over the years, it is a rare occasion that a VCF fails to meet into minimum contribution requirement. In these cases, the Legislature has previously removed the minimum threshold for some VCFs, such as the California Senior Citizen Advocacy VCF (SB 309 (Rubio, 2019); extended by AB 559 (Boerner, 2023) with no minimum threshold).
   
4. Challenges presented by increased electronic filing. A key challenge for VCFs, from the increase in taxpayers using electronic filing, is that many taxpayers may never see these voluntary contribution options. Electronic tax preparation software often prioritizes credits and deductions, and VCF checkboxes may require proactive navigation or be otherwise unavailable in the software. As a result, even taxpayers who might want to contribute to a VCF may not be aware of the option to contribute, leading to reduced overall contributions and making it difficult for VCFs to meet the $250,000 minimum. The Committee may wish to consider whether this reduced visibility issue diminishes the practical impact of the minimum threshold requirement and the fairness of removing a fund solely due to low contributions.
   
5. SB 1476 requirements. With the exception of failing to meet the $250,000 minimum contribution requirement in 2025, the previous See Otter fund substantially complied with the best practices outlined in SB 1476, detailed above. The State Coastal Conservancy lists grant and project amounts, and the Department describes how funds are used.^[2] The available information indicates that these agencies will continue to fully comply with SB 1476’s requirement that the administering agency’s website report specific data on the use of amounts received via voluntary contribution. However, if the agencies fail to satisfy the reporting requirements specified in SB 1476, the Legislature may consider this factor when determining whether this fund should be extended in the future.
   
6. Related VCF. As noted in the chart in the background section, there is one other active VCF for wildlife, the Native California Wildlife Rehabilitation VCF, which was established to support the rehabilitation of injured, sick, or orphaned native wildlife and for wildlife conservation education.
   
7. Vital research. The California Coastal Conservancy and the Department of Fish and Wildlife will each be allocated 50% of the contributions. The California Coastal Conservancy will use the contributions for research and programs related to the near-shore ecosystem, including sea otters. The Department of Fish and Wildlife will use the contributions to establish a sea otter fund within the department’s index coding system to support increased investigation, prevention, and enforcement actions.
   
8. Committee amendments. The committee recommends the following technical amendments:

• To ensure that the Sea Otter VCF appears on the 2026 tax return, amend the bill to specify that the VCF shall appear on the 2026 tax returns.
• To comply with the seven-year limitation required by SB 1476, amend the bill's repeal date.
• To ensure that the fund does not repeal in future tax years due to the annual contributions falling below the $250,000 threshold, amend the bill to state that, notwithstanding subdivision (c) of Section 18873, this fund shall remain in effect until the repeal date.

Support and Opposition

(1/8/26)

Support: Defenders of Wildlife (Sponsor)
350 Bay Area Action
Center for Biological Diversity
Clean Water Action
Environment California
Monterey Bay Aquarium
Natural Resources Defense Council
Planning and Conservation League
Resource Renewal Institute
Sierra Club California
Surfrider Foundation

Opposition: None received.

-- END --

1. https://www.ftb.ca.gov/file/personal/voluntary-contribution-funds/annual-contribution/index.html. ↑

2. https://scc.ca.gov/grants/sea-otter-recovery-fund/; https://wildlife.ca.gov/Tax-Donation. ↑