BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      



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          |SENATE RULES COMMITTEE            |                  AB 2443|
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                                 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


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           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 

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          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 

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             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

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          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, 

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            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

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