BILL ANALYSIS Ó AB 2443 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 2443 (Williams) As Amended August 21, 2012 Majority vote ----------------------------------------------------------------- |ASSEMBLY: |52-25|(May 30, 2012) |SENATE: |23-6 |(August 23, | | | | | | |2012) | ----------------------------------------------------------------- Original Committee Reference: W., P. & W. SUMMARY : Imposes a Quagga and Zebra mussel infestation prevention fee on vessel registrations to fund a grant program for implementation and administration of dreissenid mussel infestation inspection and prevention programs. The Senate amendments : 1)Require the Department of Motor Vehicles (DMV) when collecting vessel registration and renewal fees to collect an additional Quagga and Zebra mussel infestation prevention fee in an amount established by the Department of Boating and Waterways (DBW). DMV would be required to provide documentation of its administrative costs to DBW. 2)Provide that the prevention fee shall not be more than $10 for vessels initially registered in even years, $20 for vessels registered in odd years, and $20 for renewals. 3)Require emergency regulations adopted by DBW to include rules for administering grants to be awarded from the prevention fee revenue collected. 4)Delete the creation of a new Quagga and Zebra mussel Account and instead require the fee revenue to be deposited in the Harbors and Watercraft Revolving Fund and used exclusively for the grants program and administrative costs. The fee revenue would be available upon appropriation of the Legislature to cover DBW's reasonable administrative costs, the Department of Fish and Game's (DFG) reasonable costs, not to exceed 15% of the remaining revenues in the fund, and not less than 85% of the remaining revenues deposited in the fund to be available for grants for infestation prevention programs. AB 2443 Page 2 5)Require DBW in awarding grants to take into consideration benefits of regional-scale plans and impacts to rural and urban reservoirs. 6)Require as a condition of receiving grant funding that an entity report data to DBW on programs implemented with the funding. 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. AS PASSED BY THE ASSEMBLY , this bill required that a Quagga and Zebra mussel infestation prevention fee be imposed in an amount not to exceed $10, on every vessel subject to registration fees in California. The fees would 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, with 85% being made available for grants to local governments to implement a dreissenid mussel infestation prevention plan, and 15% to the Department of Fish and Game (DFG) for inspections and other actions to prevent spread of dreissenid mussels in areas of the state where a dreissenid mussel infestation plan has not been adopted . FISCAL EFFECT : According to the Senate Appropriations AB 2443 Page 3 Committee, estimated revenues of $5.1 million annually to the Harbors and Watercraft Revolving Fund from new vessel registration fee, as follows: 1)$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. 2)$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. 3)$410,000 annually from the Harbors and Watercraft Revolving Fund to DFG to implement a Quagga and Zebra mussel prevention plan. 4)Up to $4.2 million annually from the Harbors and Watercraft Revolving Fund to DBW for local grants to fund infestation prevention programs. COMMENTS : This bill would establish a dedicated funding source to cover the costs of local inspection programs 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 Senate amendments make procedural changes related to collection of the fees, reimbursement of administrative expenses, and fund management, and add reporting requirements. Analysis Prepared by : Diane Colborn / W., P. & W. / (916) 319-2096 AB 2443 Page 4 FN: 0005342