BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 2443
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          ASSEMBLY THIRD READING
          AB 2443 (Williams)
          As Amended  May 3, 2012
          Majority vote 

           WATER, PARKS & WILDLIFE       7-3                   
          APPROPRIATIONS      12-5        
           
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          |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 








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            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 








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            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).









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          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.








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          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









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