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