BILL ANALYSIS Ó AB 120 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 120 (Budget Committee) As Amended June 8, 2011 Majority vote. Budget Bill Appropriation Takes Effect Immediately ----------------------------------------------------------------- |ASSEMBLY: | |(February 22, |SENATE: |22-13|(June 10, | | | |2011) | | |2011) | ----------------------------------------------------------------- (vote not relevant) SUMMARY : Contains necessary statutory changes in the area of natural resources and environmental protection to implement changes to the Budget Act of 2011. The Senate Amendments delete the Assembly version of this bill, and instead: 1)Enable the Department of Conservation (Conservation) to use the Oil, Gas, and Geothermal Administration fund as its main appropriation, or clearing account. 2)Amend the Water Code to authorize the deposit of all monies collected by the Wastewater Operator Certification Program (WOCP) into the Wastewater Operator Certification Fund (WOCF) and to ensure the funds are utilized in accordance with an appropriation. 3)Narrow the state's liability for closed or partially closed parks to only that needed by the Department of Parks and Recreation. 4)Implement the Administration's proposal to reduce the Department of Food and Agriculture's (CDFA) General Fund budget by $15 million for 2011-12 Fiscal Year by utilizing Special Funds, assessments and fee-for-service and reducing program scope, workload, and activities. In addition, this item discontinues General Fund support for three programs: Weed Management Area (WMA), Noxious Weed, and Agriculture Security and Emergency Response (ASER). 5)Extend the moratorium on issuance of suction dredge permits for an additional five years, or until such time as new regulations that fully mitigate all identified significant AB 120 Page 2 environmental impacts, and a proposed fee structure that will fully cover all program costs, are in place. 6)Implement the elimination of three Advisory Committees/Review Panels at the Department of Fish and Game: State Interagency Oil Spill Committee Review Subcommittee; State Interagency Oil Spill Committee; and, Commercial Abalone Advisory Committee. 7)Add an appropriation allowing this bill to take effect immediately upon enactment. AS PASSED BY THE ASSEMBLY , this bill expresses the intent of the Legislature to enact statutory changes relating to the 2011 Budget Act. COMMENTS : Currently, Conservation uses the General Fund as its clearing account which has a $4.5 million annual appropriation. Enabling Conservation to use the Oil, Gas, and Geothermal Administration Fund is consistent with the common practice recommended by the State Controller's Office that a department should use the fund with the largest appropriation as its clearing account. The WOCF receives deposits of fees from persons applying for an operator certificate or renewing an operator certificate. However, the WOCF does not receive deposits of fees from persons applying for a contract operator registration or renewing such a contract. The proposed amendments would allow the State Water Resources Control Board to deposit all interest earnings and fees collected by the WOCP into the WOCF and utilize the funds for program activities. When the Legislature passed the State Budget earlier this year, it included an unprecedented, broad immunity to the state for claims involving closed or partially closed state parks. Given the timing, it was impossible to amend the language at that time. The language presented now as a substitute gives the state full protection for liability under the current Government Code Sections without unprecedented reductions in the legal rights of Californians. CDFA held a number of stakeholder meetings to help identify the most appropriate way to reduce the CDFA's General Fund budget. According to the CDFA, ASER activities will continue through the counties. CDFA states that it will explore alternative funding AB 120 Page 3 solutions for WMA and the Noxious Weed Program. However, in the absence of a solution, CDFA weed management activities will be discontinued or substantially reduced. Networks of local weed management areas will need to collaborate to leverage funding from federal and private sources. County agriculture commissioners will need to coordinate and maximize resources to eradicate, contain, or control noxious weeds. Absent a solution, incipient infestations of noxious weeds will become established and spread predominately in Northern California. The Department of Fish and Game (DFG) has acknowledged in previous years that the current fees for suction dredge mining permits are inadequate to cover the full costs of the program. The current statutory base fee for a permit is $25, which when adjusted for inflation equates to approximately $40. The base fee is $130 if an onsite inspection is required. Nonresident base fees are $100 for a basic permit and $220 for onsite inspection. The Senate Natural Resources and Water Committee's analysis for SB 670 (Wiggins), Chapter 62, Statutes of 2009, notes that DFG "has previously estimated that the permits cost an average of $450 to process and to cover the costs of the program, which if extrapolated to the approximate 3,000 permits would result in an expenditure of about $1.3 million." DFG's new estimate of revenue from 4,000 permits and onsite inspection fees is $373,000. If the DFG's previous cost estimates are accurate, the program will cost $1.8 million. The gap between the current fees and the costs of the program result in an estimated $1.5 million subsidy of the program from the Fish and Game Preservation Fund and/or the General Fund. The advisory groups proposed for elimination are no longer necessary, have been non-functional for many years, or have completed their statutory requirements. Analysis Prepared by : Gabrielle Meindl / BUDGET / (916) 319-2099 FN: 0001240 AB 120 Page 4