BILL ANALYSIS �
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| SENATE COMMITTEE ON NATURAL RESOURCES AND WATER |
| Senator Fran Pavley, Chair |
| 2013-2014 Regular Session |
| |
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BILL NO: SB 987 HEARING DATE: April 22, 2014
AUTHOR: Monning URGENCY: No
VERSION: April 3, 2014 CONSULTANT: Toni Lee
DUAL REFERRAL: None FISCAL: Yes
SUBJECT: California Sea Otter Fund: Department of Fish and
Wildlife: State Coastal Conservancy.
BACKGROUND AND EXISTING LAW
Existing law (Fish and Game Code (FGC) �700 et seq.) establishes
the Department of Fish and Wildlife (DFW) and outlines the
duties of the department.
Existing law 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."
Existing law establishes the California Sea Otter Fund (Fund)
(Revenue and Taxation Code (RTC) �18754.1 et seq.) (AB 2485,
Jones, Ch. 296, Stats. 2006). In 2011, AB 971 (Monning, Ch. 209,
Stats. 2011) clarified a mechanism of funding the program and
extended provisions of the Fund until 2016. DFW is authorized
but not required to undertake public outreach and education
about sea otters.
Existing law also requires the Franchise Tax Board to include a
checkbox on tax returns for the Fund that would allow an
individual to donate, in whole dollar amounts, a contribution
to the Fund. From the Fund, a sum is allotted to the Franchise
Tax Board and the 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
California Coastal Conservancy (CCC) receives the remaining 50%
for competitive grants and contracts to organizations for
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research, science, protection, projects, and programs related to
the Federal Sea Otter Recovery Plan or improving nearshore ocean
ecosystems.
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,
shooting, entanglement in fishing gear, and starvation. In 1977,
the species was listed under the Endangered Species Act. Under
current 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 would require
reaching population levels of 8,400 animals for the entire
California coast (50-80% of the current carrying capacity).
Pursuant to statute, the Franchise Tax Board 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 Sea Otter
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 7-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.
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) (FGC �1772) since 1983. In 2013, this
fund collected $476,933 in contributions. This amount was the
highest collected out of all of the voluntary tax contribution
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funds and is $169,389 higher than the sum collected for the
California Sea Otter Fund.
PROPOSED LAW
This bill would require DFW and CCC to encourage taxpayers to
make contributions to the California Sea Otter Fund. In
addition, the bill would require DFW and CCC to disseminate
information to the public on the status of California sea
otters. The costs of both actions would be paid for, upon
legislative appropriation, with money allocated to DFW and CCC
from the fund.
ARGUMENTS IN SUPPORT
The author's office states, "recently, there has been some
confusion as to if the DFW has explicit authority to use the
moneys it receives from the Fund to publicize the Fund to
California taxpayers. The DFW has the authority to publicize the
Rare and Endangered Species Fund. SB 987 will clarify that the
DFW can utilize moneys from the California Sea Otter Fund to
disseminate information to the public concerning the Fund."
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 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
California Sea Otter 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." SB 987 would ensure that
California taxpayers remain informed about the opportunity to
contribute to sea otter research and conservation.
Insurance Commissioner Dave Jones, author of the bill that
established the Sea Otter 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
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contributions."
ARGUMENTS IN OPPOSITION
None received
COMMENTS
1.In previous years, the DFW has engaged in promoting the
California Sea Otter Fund to taxpayers. This bill would codify
in statue current practice.
2.As the CCC receives half of the available Fund monies, the
bill also extends the advertising responsibility to the CCC.
Splitting the advertising costs among these entities may
foster more collaboration and encourage dissemination of
information to a wider audience.
3.The bill does not provide that DFW and CCC contribute any
specific dollar amount towards promoting the Fund among
taxpayers, allowing the department and conservancy flexibility
in adverse economic conditions.
4.In the past four years, the Rare and Endangered Species
Preservation Fund has garnered the greatest amount of
contributions among all voluntary contribution funds on
California tax returns. This popularity may stem from the
mandatory advertising requirements.
5.Tax check-off money collected in 2013 for voluntary
contribution funds are detailed below:
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| Fund Name | Total Contributions |
| | in 2013 |
|------------------------------------------+----------------------|
| Alzheimer's Disease/Related Disorders | $405,080 |
| Fund | |
|------------------------------------------+----------------------|
| California Breast Cancer Research Fund | $369,425 |
|------------------------------------------+----------------------|
| California Cancer Center Research Fund | $389,759 |
|------------------------------------------+----------------------|
| California Firefighter's Memorial Fund | $126,158 |
|------------------------------------------+----------------------|
| California Fund for Senior Citizens | $234,247 |
|------------------------------------------+----------------------|
| California Peace Officer Memorial | $128,581 |
| Foundation Fund | |
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|------------------------------------------+----------------------|
| California Sea Otter Fund | $307,544 |
|------------------------------------------+----------------------|
| California Seniors Special Fund | $60,961 |
|------------------------------------------+----------------------|
|California YMCA Youth and Government Fund | $72,435 |
|------------------------------------------+----------------------|
| California Youth Leadership Fund | $55,505 |
|------------------------------------------+----------------------|
| Child Victims of Human Trafficking Fund | $220,119 |
|------------------------------------------+----------------------|
| Emergency Food for Families Fund | $459,291 |
|------------------------------------------+----------------------|
| Municipal Shelter Spay-Neuter Fund | $217,883 |
|------------------------------------------+----------------------|
| Rare and Endangered Species Preservation | $476,933 |
| Program | |
|------------------------------------------+----------------------|
| School Supplies for Homeless Children | $367,868 |
| Fund | |
|------------------------------------------+----------------------|
|State Children's Trust for the Prevention | $305,438 |
| of Child Abuse | |
|------------------------------------------+----------------------|
| State Parks Protection Fund/Parks Pass |$396,921 |
| Purchase | |
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SUPPORT
Friends of the Sea Otter (Sponsor)
National Wildlife Federation (Sponsor)
Dave Jones, Insurance Commissioner
Defenders of Wildlife
Natural Resources Defense Council
Ocean Conservancy
OPPOSITION
None Received
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