BILL ANALYSIS �
SB 987
Page 1
Date of Hearing: June 25, 2014
ASSEMBLY COMMITTEE ON REVENUE AND TAXATION
Raul Bocanegra, Chair
SB 987 (Monning) - As Amended: May 12, 2014
Majority vote. Fiscal committee.
SENATE VOTE : 27-9
SUBJECT : California Sea Otter Fund: Department of Fish and
Wildlife: State Coastal Conservancy
SUMMARY : Modifies the statutory provisions governing the
allocation of moneys from the California Sea Otter Fund (Fund).
Specifically, this bill :
1)Replaces a reference to the "Department of Fish and Game" with
a reference to the "Department of Fish and Wildlife."
2)Provides that Fund moneys allocated to the Department of Fish
and Wildlife shall be used for sea otter conservation,
including increased investigation, prevention, and enforcement
actions related to sea otter mortality.
3)Authorizes the Department of Fish and Wildlife to use Fund
moneys for public outreach activities that encourage taxpayers
to contribute to the Fund.
4)Replaces references to the "California Coastal Conservancy"
with references to the "State Coastal Conservancy."
5)Authorizes the State Coastal Conservancy to use Fund moneys
for public outreach activities that encourage taxpayers to
contribute to the Fund.
EXISTING LAW :
1)Establishes the Department of Fish and Wildlife with specified
duties.
2)Establishes the State Coastal Conservancy with prescribed
powers and responsibilities for implementing a program of
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agricultural land protection, area restoration, and resource
enhancement within the coastal zone, as defined.
3)Allows taxpayers to contribute to one or more of 20 voluntary
contribution funds (VCFs) on the 2013 personal income tax
(PIT) return.
4)Authorizes the Fund as a VCF on the PIT return.
5)Provides that all money transferred to the Fund, upon
appropriation by the Legislature, shall first be allocated to
the Franchise Tax Board (FTB) and the Controller for
reimbursement of all costs incurred in administering the VCF.
The remaining funds are divided equally between the:
a) Department of Fish and Game (sic) for the purposes of
establishing a sea otter fund to be used within the
department's index coding system for increased
investigation, prevention, and enforcement actions; and,
b) California Coastal Conservancy (sic) 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 improving the nearshore ocean ecosystem, including
program activities to reduce sea otter mortality.
6)Requires the California Coastal Conservancy (sic) to solicit
available federal, private, matching, and other dollars to
maximize or leverage appropriated funds to provide the
greatest benefit for sea otters.
7)Sunsets the Fund's statutory provisions on January 1, 2016.
FISCAL EFFECT : Unknown. The FTB has not provided a revenue
estimate for this bill.
COMMENTS :
1)The author has provided the following statement in support of
this bill:
Recently, there has been some confusion as to [whether] the
Department of Fish and Wildlife has explicit authority to
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use the moneys it receives from the Sea Otter Fund to
publicize the Fund to California taxpayers. SB 987 will
clarify that the DFW can utilize moneys from the Fund to
disseminate information to the public concerning the Fund.
2)Proponents of this bill note the following:
Sea otters are a keystone species in California's ocean
ecosystem, playing a critical role in maintaining healthy
kelp forests and balanced near-shore ecosystems. They are
also indicators of overall ocean health and water quality,
providing important information to resource managers and
the public. Today, there are estimated to be just under
3,000 sea otters in California, a number that is
drastically lower than the historic population before the
fur trade decimated these now iconic animals.
As you know, the Sea Otter Fund is the main source of
funding for sea otter research and conservation efforts in
California, with state taxpayers having contributed more
than $2 million to the Fund since it went into effect in
2006. It is important that California taxpayers are aware
that they have the option of contributing to the future of
the Sea Otter Fund.
3)Committee Staff Comments
a) Legislative history : The Fund first appeared on the
2006 PIT return. The original legislation provided for the
Fund provisions' automatic repeal on January 1 of the fifth
taxable year following the Fund's first appearance on the
tax return. As such, the original Fund provisions were
repealed by their own terms on January 1, 2011. AB 971
(Monning), Chapter 209, Statutes of 2011, then reauthorized
the addition of the Fund checkoff to the PIT form beginning
with the 2011 return.
In the last three years alone, the Fund has generated over
$1 million. Specifically, the Fund received valid
contributions of $359,699 in 2011; $351,037 in 2012; and
$307,544 in 2013. According to the author, the Fund has,
to date, supported the advancement of a long-term study
identifying impacts to sea otter health, including chemical
and pathogen pollution. Findings from this study will
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hopefully inform governmental agencies, scientists, and
other conservation supporters on how best to protect
California's sea otter population, which is currently
estimated at fewer than 3,000.
b) What does this bill do ? According to the author, this
bill is needed to make it explicitly clear that the
Department of Fish and Wildlife and the State Coastal
Conservancy may use Fund moneys for public outreach
activities that encourage taxpayers to contribute to the
Fund. This bill also clarifies that the Department of Fish
and Wildlife's Fund expenditures must be related to sea
otter conservation.
c) Double referral : This bill was double referred to the
Assembly Committee on Water, Parks and Wildlife, which
passed this bill out on June 17, 2014, with a vote of 12-0.
For additional discussion of this bill, please refer to
the analysis prepared by the Assembly Committee on Water,
Parks and Wildlife.
REGISTERED SUPPORT / OPPOSITION :
Support
Dave Jones, Insurance Commissioner
Oceana
Opposition
None on file
Analysis Prepared by : M. David Ruff / REV. & TAX. / (916)
319-2098