BILL ANALYSIS                                                                                                                                                                                                    �




                    Senate Appropriations Committee Fiscal Summary
                            Senator Kevin de Le�n, Chair


          SB 987 (Monning) - California Sea Otter Fund: Department of Fish  
          and Wildlife: State Coastal Conservancy.
          
          Amended: April 3, 2014          Policy Vote: NR&W 8-1
          Urgency: No                     Mandate: No
          Hearing Date: May 5, 2014       Consultant: Marie Liu
          
          This bill does not meet the criteria for referral to the  
          Suspense File.
          
          
          Bill Summary: SB 987 would require the Department of Fish and  
          Wildlife (DFW) and the State Coastal Conservancy (conservancy)  
          to conduct public outreach to encourage voluntary contributions  
          to the California Sea Otter Fund (fund).

          Fiscal Impact: Cost pressures of approximately $20,000 annually  
          to the California Sea Otter Fund (special) and potentially to  
          other special funds and the General Fund to DFW and SCC to  
          conduct public outreach activities to encourage participation in  
          the sea otter tax check-off.

          Background: Existing state law allows taxpayers to contribute  
          money to voluntary contribution funds by checking a box on their  
          state income tax return.  AB 2485 (Jones) Chapter 296, Statutes  
          of 2006 established the California Sea Otter Fund which is  
          funded by such a tax check-off. AB 971 (Monning) Chapter 209,  
          Statutes of 2011 extended the sea otter tax check-off until  
          2016.

          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, protection, projects, or  
          programs related to the Federal Sea Otter Recovery Plan or  
          improving the nearshore ocean ecosystem.

          In 2013, the fund received $307,544 in tax check-off  
          contributions.

          Proposed Law: This bill would specify that DFW's expenditures  








          SB 987 (Monning)
          Page 1


          for enforcement actions from the fund must be related to sea  
          otter mortality.

          This bill would also require DFW and the conservancy to conduct  
          public outreach to encourage taxpayers to make contributions  
          through the tax check-off program.

          Staff Comments: This bill requires both DFW and the conservancy  
          to conduct public outreach to encourage participation in the sea  
          otter tax check-off program. Both agencies would be authorized  
          to use the California Sea Otter Fund for this purpose. Staff  
          notes that the requirement for DFW and the conservancy to  
          conduct public outreach would not sunset along with the tax  
          check off in 2016, nor would the agencies be restricted from  
          using other funds for the public outreach, potentially putting  
          cost pressures on other DFW and conservancy funds for these  
          activities. Staff notes that it is the author's intent that only  
          the California Sea Otter Fund be used for ou
          treach. (see recommended amendments).

          Recommended Amendments: 
             1.   Delete Section 1 and 2, inclusively.

             2.   On page 3, on line 22 delete "the" and lines 23-24,  
               inclusively and insert:
                    public outreach activities that encourage taxpayers to  
                    make contributions by voluntary check-off to the  
                    California Sea Otter Fund.

             3.   On page 3, delete lines 32-33, inclusively and insert:
                         for public outreach activities that encourage  
                    taxpayers to make contributions by voluntary check-off  
                    to the California Sea Otter Fund. The