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