BILL ANALYSIS Ó SB 987 Page 1 Date of Hearing: August 6, 2014 ASSEMBLY COMMITTEE ON APPROPRIATIONS Mike Gatto, Chair SB 987 (Monning) - As Amended: May 12, 2014 Policy Committee: Water, Parks and Wildlife Vote: 12-0 Revenue and Taxation 7-0 Urgency: No State Mandated Local Program: No Reimbursable: SUMMARY This bill revises and clarifies the use of funds collected by contributions to the California Sea Otter Fund (Fund) collected from the voluntary tax check-off. Specifically, this bill: 1)Authorizes funds allocated to the Department of Fish and Wildlife (DFW) to be used for sea otter conservation, including increased investigation, prevention and enforcement actions related to sea otter mortality. 2)Authorizes funds allocated to the Department of Fish and Wildlife (DFW) and the State Coastal Conservancy (SCC) to be used for public outreach activities to encourage taxpayers to make contributions on their tax returns. FISCAL EFFECT Potential minor cost pressures of less than $50,000 annually to the Fund for DFW and SCC to conduct public outreach activities. COMMENTS 1)Purpose. According to the author, recently there has been confusion regarding the ability of DFW and SCC to use moneys received from the Sea Otter fund to publicize the tax check-off and encourage taxpayers to contribute. This bill clarifies that use and also specifies that DFW's expenditures from the fund must be related to sea otter conservation and sea otter mortality. SB 987 Page 2 2)Background. The California Sea Otter Fund was created in 2006 and is funded through a voluntary taxpayer check-off on state tax returns. Half of the revenues raised, less the Franchise Tax Board's collection costs, are allocated to the DFW for increased investigation, prevention, and enforcement actions. The other half is allocated to the conservancy for competitive grants and contracts for research, science, ecosystem protection and programs related to the Federal Sea Otter Recovery Plan. Between 2007 and 2013, more than $2 million was contributed by California taxpayers through the tax return check-off. In 2013, taxpayers contributed $307,544 to the Fund. To date the Fund has supported the advancement of a long-term study on sea otter health, including chemical and pathogen pollution, and has supported other projects benefitting sea otter conservation. The Sea Otter tax check-off sunsets January 1, 2016. 3)Sea Otters. Sea otters are listed as a threatened species under the federal endangered species act, and are a fully protected species under California law. Populations of sea otters significantly declined in the early 1900's due to hunting. Currently, DFW scientists estimate that 50% to 60% of sea otter deaths are the result of diseases, parasites and toxicants. All sea otters that die in California are examined at the DFW Marine Wildlife Center in Santa Cruz, a DFW Office of Spill Prevention and Response facility. This work is supported variously by the Sea Otter tax check-off, SCC, U.S. Fish and Wildlife Service, and other funding sources. Analysis Prepared by : Jennifer Galehouse / APPR. / (916) 319-2081