BILL ANALYSIS Ó ------------------------------------------------------------ |SENATE RULES COMMITTEE | AB 2443| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ THIRD READING Bill No: AB 2443 Author: Williams (D) Amended: 8/21/12 in Senate Vote: 21 SENATE NATURAL RESOURCES AND WATER COMM. : 6-1, 6/26/12 AYES: Pavley, Evans, Kehoe, Padilla, Simitian, Wolk NOES: La Malfa NO VOTE RECORDED: Cannella, Fuller SENATE TRANSPORTATION & HOUSING COMMITTEE : 6-2, 7/3/12 AYES: DeSaulnier, Kehoe, Lowenthal, Pavley, Rubio, Simitian NOES: Gaines, Wyland NO VOTE RECORDED: Harman SENATE APPROPRIATIONS COMMITTEE : 5-2, 8/16/12 AYES: Kehoe, Alquist, Lieu, Price, Steinberg NOES: Walters, Dutton ASSEMBLY FLOOR : 52-25, 5/30/12 - See last page for vote SUBJECT : Vessels: registration fee: Quagga and Zebra Mussel Infestation Prevention Program SOURCE : Monterey County Santa Barbara County San Luis Obispo County CONTINUED AB 2443 Page 2 DIGEST : This bill impose a vessel registration fee, as set forth in statute and determined by the Department of Boating and Waterways. This bill requires funds from the fee to be used to administer quagga and zebra mussel monitoring, inspection, and infestation prevention programs. ANALYSIS : 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 the Department of Fish and Game (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. This bill: 1. Declares the intent of the Legislature that the fee this bill imposes shall not exceed the cumulative reasonable regulatory costs incident to performing investigations and inspections necessary to prevent quagga and zebra mussel infestation. 2. Imposes a quagga and zebra mussel infestation prevention fee on original and renewal vessel registrations. The bill specifies that the fee shall be not more than $20 CONTINUED AB 2443 Page 3 for every two year registration period and shall fund, upon legislative appropriation, the following: A. The Department of Motor Vehicles (DMV's) reasonable costs, not to exceed three percent of total revenues, for collection and administration of the fee. B. The Department of Boating and Waterways' reasonable costs, not to exceed three percent of total revenues, in determining the amount of the fee plus adopting regulations and administering the associated grant program. C. DFG's reasonable costs, not to exceed 15 percent of the remaining revenues, to fund its dreissenid mussel infestation prevention plan. D. The Department of Boating and Waterways' grant program, which shall receive at least 85 percent of the remainder, which shall provide grants to entities that, operate water reservoirs where recreational activities are allowed. These grants shall pay the costs to implement a mussel infestation prevention plan that is consistent with the requirements on reservoir operators in existing law. The bill directs the Department of Boating and Waterways to adopt emergency regulations to create the grant program and to set priorities for the grant program that are consistent with existing state law, specified state guidebooks, and relevant management plans. 3. Directs the Department of Boating and Waterways to set the exact amount of this fee after creating and consulting with a technical advisory group consisting of recreational boating representatives, reservoir operators, and other interested persons. 4. Exempts from the fee vessels that operate exclusively in marine waters. 5. Directs DMV to collect the fee with original and renewal vessel registrations and to deposit the revenues into CONTINUED AB 2443 Page 4 the Harbors and Watercraft Revolving Fund. FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes Local: No According to the Senate Appropriation Committee: Estimated revenues of $5.1 million annually to the Harbors and Watercraft Revolving Fund from new vessel registration fee. $75,000 to $150,000 one-time to the Harbors and Watercraft Revolving Fund to adopt regulations and establish a grant program, similar annual costs to administer the grant program. $271,000 in 2012-13, $113,000 in 2013-14, and $47,000 in 2014-15 from the Harbors and Watercraft Revolving Fund for the DMV to revise vessel registration fee collection systems. $410,000 annually from the Harbors and Watercraft Revolving Fund to the DFG to implement a quagga and zebra mussel prevention plan. Up to $4.2 million annually from the Harbors and Watercraft Revolving Fund to the department for local grants to fund infestation prevention programs. SUPPORT : (Verified 8/21/12) Monterey County (co-source) Santa Barbara County (co-source) San Luis Obispo County (co-source) Association of California Water Agencies California Agricultural Commissioners and Sealers Association California Municipal Utilities Association Calleguas Municipal Water district Contra Costa Water District East Bay Municipal Utilities District Goleta Water District Humboldt Bay Municipal Water District Metropolitan Water District of Southern California CONTINUED AB 2443 Page 5 Pacific Gas and Electric Company Santa Clara County Board of Supervisors Santa Clara Valley Water District OPPOSITION : (Verified 8/21/12) California Association of Harbor Masters and Port Captains California Marine Parks and Harbor Association California Yacht Brokers Association Marina Recreation Association Northern California Marine Recreation Association Recreational Boaters of California Western Boaters Safety Group ARGUMENTS IN SUPPORT : Supporters emphasize the need for continued monitoring and inspection to prevent the spread of zebra and quagga mussels. The lack of a statewide revenue source has impeded the ability of California to develop a comprehensive approach to protecting water bodies and hydropower facilities from the mussels. Supporters also state that current funding is sporadic and subject to cancellation as agencies undergo budget cuts. This bill is a practical, cost-reasonable solution that can help protect California's lakes and rivers. ARGUMENTS IN OPPOSITION : Opponents agree that California must address the very serious problem of invasive mussel infestation. They contend, however, that boaters already contribute more than their fair share of funds to both DGF and Department of Food and Agriculture pest eradication programs through boater gas tax dollars, vessel registration fees, and principal and interest paid on loans for boating infrastructure, all of which flow into the Harbors and Watercraft Revolving Fund. Rather than the additional assessment in this bill, the opponents indicate they would not oppose budget allocations from that fund, and if it is insufficient, they recommend that other sources of revenue be sought. ASSEMBLY FLOOR : 52-25, 5/30/12 AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Beall, Block, Blumenfield, Bonilla, Bradford, Brownley, Buchanan, Charles Calderon, Campos, Carter, Cedillo, Chesbro, Davis, Dickinson, Eng, Feuer, Fong, Fuentes, CONTINUED AB 2443 Page 6 Furutani, Gatto, Gordon, Gorell, Hall, Hayashi, Roger Hernández, Hill, Hueso, Huffman, Lara, Bonnie Lowenthal, Ma, Mendoza, Mitchell, Monning, Pan, Perea, V. Manuel Pérez, Portantino, Skinner, Smyth, Solorio, Swanson, Torres, Wieckowski, Williams, Yamada, John A. Pérez NOES: Bill Berryhill, Conway, Cook, Donnelly, Beth Gaines, Galgiani, Garrick, Grove, Hagman, Halderman, Harkey, Huber, Jeffries, Jones, Knight, Logue, Mansoor, Miller, Morrell, Nestande, Nielsen, Norby, Olsen, Silva, Wagner NO VOTE RECORDED: Butler, Fletcher, Valadao CTW:d 8/21/12 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END **** CONTINUED