BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 987
                                                                  Page  1

          Date of Hearing:   June 17, 2014

                   ASSEMBLY COMMITTEE ON WATER, PARKS AND WILDLIFE
                                Anthony Rendon, Chair
                     SB 987 (Monning) - As Amended:  May 12, 2014

           SENATE VOTE  :   27-9
           
          SUBJECT  :   California Sea Otter Fund: Department of Fish and  
          Wildlife: Coastal Conservancy

           SUMMARY  :   Authorizes the Department of Fish and Wildlife (DFW)  
          and the State Coastal Conservancy (SCC) to use a portion of the  
          funds these entities receive from the California Sea Otter Fund  
          from tax check-off contributions to publicize information about  
          the Fund.  Specifically,  this bill  :

          1)Authorizes the portion of the funds received by DFW from the  
            California Sea Otter Fund from tax check-off contributions to  
            be used for sea otter conservation, including but not limited  
            to, for increased investigation, prevention and enforcement  
            actions related to sea otter mortality.

          2)Authorizes DFW to use a portion of the funds received for  
            public outreach activities that encourage taxpayers to make  
            contributions by voluntary check-off on a tax return to the  
            California Sea Otter Fund.  Similarly authorizes the SCC to  
            use a portion of the funds it receives from the California Sea  
            Otter Fund for public outreach activities that encourage  
            taxpayers to make contributions by voluntary check-off on a  
            tax return to the Fund.  

           EXISTING LAW  :

          1)Authorizes a taxpayer to designate on their state tax return  
            that a contribution in excess of tax liability, if any, be  
            made to the California Sea Otter Fund, as a voluntary  
            check-off.

          2)Creates the California Sea Otter Fund to receive contributions  
            made by taxpayers to the Fund through voluntary check-off on  
            tax returns.

          3)Requires that 50% of the revenues received from voluntary  
            contributions to the Fund, after reimbursement of the  








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            Franchise Tax Board (FTB) and State Controller's costs, be  
            allocated to the DFW for the purposes of establishing a sea  
            otter fund to be used within DFW's indexed coding system for  
            increased investigation, prevention and enforcement actions.

          4)Requires the other 50%, after reimbursement of the FTB and  
            Controller's costs, be allocated to the SCC for competitive  
            grants and contracts to public agencies and nonprofit  
            organizations for research, science, protection, projects, or  
            programs related to the federal Sea Otter Recovery Plan, or  
            for improving the near-shore ocean ecosystem, including, but  
            not limited to, program activities to reduce sea otter  
            mortality, and projects to address pathogens and water and  
            wastewater treatment technologies.

          5)Provides that these provisions shall sunset effective January  
            1, 2016. 

           FISCAL EFFECT  :   According to the Senate Appropriations  
          Committee analysis, cost pressures of approximately $20,000  
          annually to the California Sea Otter Fund (special fund) 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. 

           COMMENTS  :   The California Sea Otter Fund was created in 2006  
          and is funded through a voluntary taxpayer check-off on state  
          tax returns.  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 author indicates this bill is needed to make it explicitly  
          clear that the DFW and SCC can use a portion of the moneys they  
          receive from the California Sea Otter Fund to publicize the Fund  
          and encourage taxpayers to make voluntary contributions to the  
          Fund through a tax check-off.  This bill also clarifies that  
          DFW's expenditures from the fund must be related to sea otter  
          conservation and sea otter mortality. 

          Sea otters are listed as a threatened species under the federal  
          endangered species act, and are a fully protected species under  








                                                                  SB 987
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          the California Fish and Game Code.  Populations of sea otters  
          significantly declined in the early 1900's due to hunting.   
          Today there are less than 3,000 sea otters along the state's  
          coastline and the population continues to decline.  Scientists  
          at the DFW indicate that fifty to sixty percent of southern sea  
          otter deaths are the result of diseases, parasites and  
          toxicants. Many of these have land-sea connections and can be  
          seen as forms of, or the result of, pollution. The specific  
          causes of sea otter mortality have links to terrestrial sources  
          and are forms of pollution and habitat degradation. Most are the  
          result of non-point source pollution, but some point sources are  
          being discovered.  One known source is a parasitic disease  
          carried in the feces of cats.  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.  

           REGISTERED SUPPORT / OPPOSITION  :

           Support  
          Defenders of Wildlife
          Friends of the Sea Otter
          Insurance Commissioner Dave Jones
          National Wildlife Federation
          Natural Resources Defense Council
          Ocean Conservancy
          Sierra Club

           Opposition  
          None on file.


           Analysis Prepared by  :    Diane Colborn / W., P. & W. / (916)  
          319-2096