BILL ANALYSIS Ó
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THIRD READING
Bill No: SB 987
Author: Monning (D), et al.
Amended: 5/12/14
Vote: 21
SENATE NATURAL RESOURCES AND WATER COMM. : 8-1, 4/22/14
AYES: Pavley, Cannella, Evans, Hueso, Jackson, Lara, Monning,
Wolk
NOES: Fuller
SENATE APPROPRIATIONS COMMITTEE : 5-2, 5/5/14
AYES: De León, Hill, Lara, Padilla, Steinberg
NOES: Walters, Gaines
SUBJECT : California Sea Otter Fund: Department of Fish and
Wildlife: State Coastal Conservancy
SOURCE : Friends of the Sea Otter
National Wildlife Federation
1.DIGEST : This bill requires the Department of Fish and
Wildlife (DFW) and the Coastal Conservancy (Conservancy) to
conduct public outreach activities that encourage taxpayers to
make contributions by voluntary checkoff on a tax return to
the California Sea Otter Fund (Fund); and specifies that the
DFW's expenditures for investigation, prevention, and
enforcement actions from the Fund must be related to sea otter
mortality.
ANALYSIS :
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Existing law:
1.Establishes the DFW and outlines the duties of the DFW.
2.Establishes the Marine Mammal Protection Act, which charges
federal agencies with managing marine mammals to their optimum
sustainable population level. In 2003, the U.S. Fish and
Wildlife Service formed a Southern Sea Otter Recovery Team and
finalized a recovery plan, the "Recovery Plan for the Southern
Sea Otter."
3.Establishes the Fund (AB 2485, Jones, Chapter 296, Statutes of
2006). In 2011, AB 971 (Monning, Chapter 209, Statutes of
2011) clarified a mechanism of funding the program and
extended provisions of the Fund until 2016. The DFW is
authorized, but not required, to undertake public outreach and
education about sea otters.
4.Requires the Franchise Tax Board (FTB) to include a checkbox
on tax returns for the Fund that allows an individual to
donate, in whole dollar amounts, a contribution to the Fund.
From the Fund, a sum is allotted to the FTB and the State
Controller to reimburse costs incurred related to the Fund.
50% of the remaining revenues are allocated to the DFW for
investigation, prevention, and enforcement. The Conservancy
receives the remaining 50% for competitive grants and
contracts to organizations for research, science, protection,
projects, and programs related to the Federal Sea Otter
Recovery Plan or improving nearshore ocean ecosystems.
This bill:
1.Specifies that the DFW's expenditures for investigation,
prevention, and enforcement actions from the Fund must be
related to sea otter mortality.
2.Requires the DFW and the Conservancy to conduct public
outreach activities that encourage taxpayers to make
contributions by voluntary checkoff on a tax return to the
Fund. These costs will be paid for, upon legislative
appropriation, with money allocated to the DFW and the
Conservancy from the Fund.
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Background
California or Southern sea otters (Enhydra lutris nereis) are
charismatic marine mammals that are currently found along the
coast from San Mateo to Santa Barbara County. Hunted primarily
for their fur, sea otters were driven to near-extinction during
the 18th and 19th centuries and received protection in 1911
through the International Fur Seal Treaty. Historical
populations reached approximately 16,000 animals. However,
population counts have ranged between 1,250 and 2,300 animals
since the early 1970s. This stabilization at depressed levels
is attributable to elevated mortality caused by shark attacks,
shootings, entanglement in fishing gear, and starvation. In
1977, the species was listed under the Endangered Species Act.
Under existing state law, California sea otters are "fully
protected" mammals. To consider removing the California sea
otter from the provisions of the Marine Mammal Protection Act
requires reaching population levels of 8,400 animals for the
entire California coast (50-80% of the current carrying
capacity).
Pursuant to statute, the FTB must estimate whether contributions
will meet or exceed the minimum contribution amount required to
keep the Fund on the tax return for the next calendar year.
This minimum contribution amount is equal to the value from last
year multiplied by an inflation factor. From this minimum
contribution, 2% is reserved for administrative costs during the
first year of the Fund. In subsequent years, 1% is reserved for
this purpose. The Fund has met the minimum contribution amount
during every year of its existence. For 2013, $307,544 was
raised, exceeding the minimum contribution of $273,025. Over
its seven-year span, the Fund has acquired slightly over $2
million for sea otter research and conservation efforts. Thus
far, these funds have been used to support a study of factors
impacting sea otter health in Monterey and Big Sur. The study
revealed that increasing rates of shark bite mortality, harmful
algal blooms, limited food resources, and infectious
diseases/bacterial infections heavily limit sea otter population
recovery.
The DFW has had statutory authority to encourage donations for
the Endangered and Rare Fish, Wildlife, and Plant Species
Conservation and Enhancement Account (Rare and Endangered
Species Preservation Fund) since 1983. In 2013, this
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preservation fund collected $476,933 in contributions. This
amount was the highest collected out of all of the voluntary tax
contribution funds and is $169,389 higher than the sum collected
for the California Sea Otter Fund.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
According to the Senate Appropriations Committee, cost pressures
of approximately $20,000 annually to the Fund (special) and
potentially to other special funds and the General Fund to the
DFW and the Conservancy to conduct public outreach activities to
encourage participation in the sea otter tax check-off.
SUPPORT : (Verified 5/12/14)
Friends of the Sea Otter (co-source)
National Wildlife Federation (co-source)
Dave Jones, Insurance Commissioner
Defenders of Wildlife
Natural Resources Defense Council
Ocean Conservancy
ARGUMENTS IN SUPPORT : Friends of the Sea Otter and the
National Wildlife Federation report that the Fund is the main
source of funding for sea otter research and conservation
efforts in California.
The Natural Resources Defense Council reports, "For the
California Sea Otter Fund to continue to succeed, the public
must be aware of this important donation opportunity. This bill
will ensure that the Department [DFW] has the opportunity to
advance public education and awareness about sea otters and the
program."
The Ocean Conservancy states that the money raised from the Fund
has been instrumental in supporting sea otter research,
conservation, and education projects critical for sea otter
recovery. The Fund has supported a "long-term study to
determine the impacts of toxic chemicals and disease-carrying
pollution on sea otters living along developed areas of the
California coast." This bill ensures that California taxpayers
remain informed about the opportunity to contribute to sea otter
research and conservation.
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Insurance Commissioner Dave Jones, author of AB 2485 which
established the Fund, states that using portions of the Fund for
promotion purposes is consistent with the original intent of the
Fund. According to Commissioner Jones, the Fund may be "in
danger of falling off the tax form due to low contributions."
RM:k 5/12/14 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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