BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 987
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          SENATE THIRD READING
          SB 987 (Monning)
          As Amended  May 12, 2014
          Majority vote 

           SENATE VOTE  :27-9  
           
           WATER, PARKS & WILDLIFE       12-0                  REVENUE &  
          TAXATION                     7-0
           
           ----------------------------------------------------------------- 
          |Ayes:|Rendon, Allen, Bocanegra, |Ayes:|Bocanegra, Harkey,        |
          |     |Dahle, Fong, Frazier,     |     |Gordon, Bloom, Dahle,     |
          |     |Gatto, Gomez, Gonzalez,   |     |Pan, V. Manuel P�rez      |
          |     |Bloom, Patterson,         |     |                          |
          |     |Rodriguez                 |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           APPROPRIATIONS      17-0                                          
             
           
           -------------------------------- 
          |Ayes:|Gatto, Bigelow,           |
          |     |Bocanegra, Bradford, Ian  |
          |     |Calderon, Campos,         |
          |     |Donnelly, Eggman, Gomez,  |
          |     |Holden, Jones, Linder,    |
          |     |Pan, Quirk,               |
          |     |Ridley-Thomas, Wagner,    |
          |     |Weber                     |
          |-----+--------------------------|
          |     |                          |
           -------------------------------- 
           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  








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            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 California Sea Otter 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 California Sea Otter Fund, after  
            reimbursement of the 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  
            State 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 Assembly Appropriations  








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          Committee, potential minor cost pressures of less than $50,000  
          annually to the California Sea Otter Fund for DFW and SCC to  
          conduct public outreach activities.

           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  
          California Sea Otter Fund.  To date the California Sea Otter  
          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  
          California Sea Otter Fund and encourage taxpayers to make  
          voluntary contributions to the California Sea Otter 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  
          the California Fish and Game Code.  Populations of sea otters  
          significantly declined in the early 1900s 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 50% to 60% 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, United  
          States Fish and Wildlife Service, and other funding sources.










                                                                  SB 987
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           Analysis Prepared by  :    Diane Colborn / W., P. & W. / (916)  
          319-2096 


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