BILL ANALYSIS Ó AB 2443 Page 1 ASSEMBLY THIRD READING AB 2443 (Williams) As Amended May 3, 2012 Majority vote WATER, PARKS & WILDLIFE 7-3 APPROPRIATIONS 12-5 ----------------------------------------------------------------- |Ayes:|Huffman, Campos, Fong, |Ayes:|Fuentes, Blumenfield, | | |Williams, Hueso, Lara, | |Bradford, Charles | | |Yamada | |Calderon, Campos, Davis, | | | | |Gatto, Ammiano, Hill, | | | | |Lara, Mitchell, Solorio | | | | | | |-----+--------------------------+-----+--------------------------| |Nays:|Halderman, Beth Gaines, |Nays:|Harkey, Donnelly, | | |Jones | |Nielsen, Norby, Wagner | | | | | | ----------------------------------------------------------------- SUMMARY : Imposes a registration fee not to exceed $10 on vessels to fund implementation and administration of a dreissenid mussel monitoring, inspection and eradication program. Specifically, this bill : 1)States legislative findings and declarations regarding the immediate and significant threat posed by Quagga and Zebra mussels to California's water supply, flood control, power generation and aquatic recreation infrastructure, and the financial burden on local governments and economies to prevent and respond to infestations of these invasive species. 2)Provides that the fees required by this bill shall be used solely for the reasonable regulatory costs of performing investigations and inspections necessary to prevent and control infestation of California waters by Quagga and Zebra mussels. States legislative intent that the amount of the fees shall not exceed the cumulative reasonable regulatory costs of performing inspections and investigations necessary to prevent infestation. 3)Requires that a Quagga and Zebra mussel infestation prevention fee be imposed in an amount determined by the Department of Boating and Waterways (DBW) but not to exceed $10, on every AB 2443 Page 2 vessel subject to registration fees in California. Requires DBW in determining the amount of the fee to consult with a technical advisory group appointed by the DBW director that includes but is not limited to recreational boating and reservoir operation representatives. 4)Provides that the fee established by this bill shall not apply to vessels that are used exclusively in marine waters. 5)Requires DBW to adopt emergency regulations for collection and use of the fees. 6)Provides that the fees shall be deposited into a Quagga and Zebra Mussel Infestation Prevention Account which this bill would create, and expended solely for the purposes of this bill. Funds in the Account would be available to DBW upon appropriation of the Legislature for the following: a) 85% for grants to local governments, including cities, counties, special districts and joint power authorities for the reasonable regulatory costs of implementation of a dreissenid mussel infestation plan adopted before or after January 1, 2013, and that is consistent with existing law governing such plans. b) 15% to the Department of Fish and Game (DFG) for reasonable regulatory costs of implementing provisions of existing law which authorize DFG to conduct inspections and take other actions to prevent spread of dreissenid mussels in areas of the state where a dreissenid mussel infestation plan has not been adopted. 7)Requires DBW in awarding grants for dreissenid mussel infestation prevention to give priority to plans that include visual and manual inspection standards and other infestation prevention procedures consistent with DFG's Invasive Mussel Guidebook for Recreational Water Managers and Users, or the Natural Resource Agency's Aquatic Invasive Species Management Plan. 8)Provides that for purposes of this bill reasonable regulatory costs include costs associated with investigations and inspections of a conveyance (defined as a boat or other watercraft and associated vehicles, containers, and trailers AB 2443 Page 3 that may carry or contain dreissenid mussels) for the presence of dreissenid mussels prior to contact with a reservoir. 9)Provides that this bill does not preempt a special district, city, county, or joint powers authority from adopting local regulations or ordinances related to the prevention and eradication of invasive aquatic species. EXISTING LAW : 1)Makes it unlawful to possess, import, ship or transport dreissenid mussels in California, or to place, plant or cause to be placed or planted dreissenid mussels in any waters of the state. 2)Provides for regulation of dreissenid mussels as invasive species. Authorizes DFG to conduct inspections, order quarantines, and take other actions as necessary to prevent the spread of invasive mussels. 3)Requires water reservoir operators and managers where recreational boating is allowed to conduct a vulnerability assessment and to develop plans to prevent mussel infestation. 4)Grants immunity from criminal or civil liability for mussel infestation to operators of water storage and delivery facilities that have adopted, implemented, and kept up to date an approved plan to control and eradicate dreissenid mussels. FISCAL EFFECT : According to the Assembly Appropriations Committee: 1)One-time costs in 2012-13, ranging from $75,000 to $150,000, to DBW to establish and consult with the technical advisory group, to develop and adopt emergency regulations for collection and use of the fee, and to establish grant program procedures and criteria (Harbors and Watercraft Revolving Fund). 2)One-time costs in 2012-13 of approximately $150,000 to the Department of Motor Vehicles (DMV) to update vessel registration fee collection systems and information (Motor Vehicle Account). AB 2443 Page 4 3)Annual costs to DBW of approximately $150,000 (equivalent to one staff member, plus overhead and miscellaneous costs) to administer the local grant program (Quagga and Zebra Mussel Infestation Prevention Account). 4)Annual mussel infestation prevention fee revenue of as much as $8.5 million (assuming 850,000 registered vessels and $10 fee) beginning in 2012-13 (Quagga and Zebra Mussel Infestation Prevention Account). COMMENTS : This bill would establish a dedicated funding source to cover the costs of inspections to prevent the infestation or spread of infestation of Quagga and Zebra mussels in California waters. Quagga and Zebra mussels are non-native dreissenid mussels which were introduced to the United States from Europe in 1988 and first appeared in the Great Lakes region where they have caused billions of dollars in economic damages. Quagga mussels were first discovered in California in Lake Havasu in 2007 and have since been identified in 25 freshwater bodies in California, mostly in Southern California, and in the Colorado River Aqueduct. Zebra mussels were found in 2008 in San Justo Reservoir in San Benito County. Both mussels are highly invasive species that reproduce rapidly and in large quantities, and can severely hinder water delivery systems by clogging pipes, pumps and other water intake structures. The author of this bill notes that Quagga and Zebra mussels pose an immediate and significant threat to California's water supply, flood control, power generation and aquatic recreation infrastructures. Quagga and Zebra mussels are also filter feeders that consume large quantities of microscopic plants and animals upon which other species depend. As a result, the ecological balance of an entire water body can be disturbed, displacing native species. Boating poses one of the largest risks of introducing mussels and spreading infestations from one body of water to another. It is suspected that Quagga mussels were brought to the Western United States in the hull of a recreational boat. Between 2000 and 2010, widespread mussel infestation in the Great Lakes region resulted in over $5 billion in economic impact. Were it to become infested, Lake Tahoe alone would likely incur economic impacts over $20 million annually. Prevention of infestation and the spreading of infestation is a much more cost effective approach than control or eradication which may be impossible. AB 2443 Page 5 Currently a number of local governments, but not all, are conducting inspections of vessels before they are allowed to enter a water body and are incurring significant costs to do so. The author of this bill asserts that a statewide program is needed to effectively prevent the spread of infestation and to ensure consistency. DFG has played a lead role in providing training and public education to guide prevention and monitoring efforts. However, while DFG provides guidance and training, and has authority to conduct and require inspections, it does not have the resources or capacity to conduct inspections itself at all water bodies in the state. This bill would make a stable dedicated source of funding available for implementation of local programs, and also provide a source of funding for DFG oversight and response when necessary. Supporters emphasize this bill is needed to provide funding for implementation and administration of a mussel program statewide to ensure they do not continue to spread to unaffected water bodies. In addition to the local economic impacts, supporters also note that invasive mussels represent a significant risk for water supply operations at reservoirs and hatchery facilities developed to restore Coho Salmon. Opponents, while appreciating the need to address the problem of dreissenid mussels, oppose using vessel registration fees as the funding source, and assert that by assessing fees on all vessels, vessel owners that may never use a water body that is the focus of control measures would be required to pay fees. Opponents argue that if inspection fees are necessary to fund mussel monitoring, inspections and eradication efforts on a particular water body, a better approach would be to identify a funding source directly connected with that location, such as a local entrance or inspection fee. Opponents also note that DFG and the Department of Food and Agriculture receive funding for Quagga mussel regulatory activities from the Harbors and Watercraft Revolving Fund. Analysis Prepared by : Diane Colborn / W., P. & W. / (916) 319-2096 FN: 0003917 AB 2443 Page 6