BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      



           ------------------------------------------------------------ 
          |SENATE RULES COMMITTEE            |                   SB 505|
          |Office of Senate Floor Analyses   |                         |
          |1020 N Street, Suite 524          |                         |
          |(916) 651-1520         Fax: (916) |                         |
          |327-4478                          |                         |
           ------------------------------------------------------------ 
           
                                         
                                 THIRD READING


          Bill No:  SB 505
          Author:   La Malfa (R)
          Amended:  5/3/11
          Vote:     21

           
           SENATE NATURAL RESOURCES & WATER COM.  :  9-0, 4/26/11
          AYES:  Pavley, La Malfa, Cannella, Evans, Fuller, Kehoe, 
            Padilla, Simitian, Wolk

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8


           SUBJECT  :    Fish:  licenses:  trout hatcheries

           SOURCE  :     Author


           DIGEST  :    This bill authorizes the Department of Fish and 
          Game to contract with privately owned hatcheries to procure 
          up to 20 percent of the pounds of fish necessary to meet 
          prescribed fish production and release goals, if it is 
          determined that those goals may not be met, and requires 
          related information to be included in an already produced 
          report.

           ANALYSIS  :    

           Existing law  :

          1. Requires 33 1/3 percent of the fees derived from the 
             issuance of sport fishing licenses, with certain 
             exceptions, to be deposited into the Hatchery and Inland 
                                                           CONTINUED





                                                                SB 505
                                                                Page 
          2

             Fisheries Fund within the State Treasury.

          2. States that the money in the fund may be expended, upon 
             appropriation, in support of Department of Fish and Game 
             (DFG) programs related to the management, maintenance, 
             and capital improvement of California's fish hatcheries, 
             the Heritage and Wild Trout Program, enforcement 
             activities, and other activities eligible to be funded 
             from revenue generated by sport fishing license fees.

          This bill:

          1. Authorizes the DFG to contract with privately owned 
             hatcheries to procure up to 20 percent of the pounds of 
             fish necessary to meet prescribed fish production and 
             release goals, if it is determined that those goals may 
             not be met.

          2. States that the cost per fish or per pound of fish 
             provided by privately owned hatcheries will not exceed 
             the cost to DFG hatchery fish, calculated equivalently.

          3. Requires information to be included in an existing 
             report.

           Background
          
          In 2005, the Legislature unanimously passed AB 7 (Cogdill) 
          which established clear production (fish stocking) goals 
          for recreational trout fisheries and a dedicated funding 
          mechanism to meet these goals.  These goals were revised by 
          SB 1262 (Cogdill), Chapter 1262, Statutes of 2008.  
          Specifically, AB 7 added section 13007 to the Fish and Game 
          Code (FGC) which requires, among other provisions, that, 
          one-third of all sport fishing license fees (with limited 
          exception) will be deposited in: the HIFF to support DFG 
          programs including:  (1) the management, maintenance and 
          capital improvement of the state's hatcheries, (2) to the 
          Heritage and Wild Trout Program and related enforcement, 
          (3) and other programs.

          The following fish production goals are met by state 
          hatcheries:


                                                           CONTINUED





                                                                SB 505
                                                                Page 
          3

              A minimum of 2.25/2.5/2.75 pounds of released trout by 
               July 1, 2007/2008/2009 and thereafter per number of 
               sport fishing license sold the preceding year. Most of 
               the fish planted must be of catchable size

              The Heritage and Wild Trout program receives 
               $2,000,000 from the HIFF for specified purposes.

              25 percent of the total amount of trout stocked be 
               native trout in their original source watersheds.  
               This goal was to be met on the following schedule:

                  1.        15 percent/20 percent/25 percent and at 
                    least 4/4/5 species (with restrictions) by July 
                    1, 2010/2011/2012 and thereafter.

                  2.        Required DFG to report by July 1, 2008 
                    and biennially thereafter to the Legislature on 
                    the implementation of AB 7.

          According to DFG has had partial, but by no means complete, 
          success at meeting the AB 7 goals.  More complete details 
          are provided in the second comment below.  In 2010, DFG 
          released a final environmental impact report/statement 
          (EIR/S) on its hatchery and fish stocking programs in 
          response to an earlier lawsuit.  Fish stocking was 
          disrupted temporarily in some locations throughout the 
          state in order to comply with provisions in the EIR/S.  DFG 
          has indicated that this disruption did not impact their 
          ability to meet AB 7 fish stocking goals.  

          Last year's AB 2376 (Huffman), Chapter 424, Statutes of 
          2010, requires, in part, that the Secretary of Natural 
          Resources convene a committee to develop a strategic plan 
          for DFG and the Fish and Game Commission to address 
          specified matters relating to statewide fish and wildlife 
          resource management.  The strategic plan must be completed 
          and reported by July 1, 2012.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes   
          Local:  No

           SUPPORT  :   (Verified  5/16/11)


                                                           CONTINUED





                                                                SB 505
                                                                Page 
          4

          Alpers Trout LLC
          California Association for Recreational Fishing
          Calaveras Trout Farm, Inc.
          California Guest Services, Inc.
          Mt. Lassen Trout Farm, Inc.
          United Anglers of Southern California


           ARGUMENTS IN SUPPORT  :    According to the author's office, 
          in 2005, the widely-supported AB 7 created a worthwhile 
          goal for DFG by requiring a certain number of trout to be 
          planted in California's waterways and ensuring that fishing 
          license fee revenues are used for the benefit of 
          California's anglers.  However, due to a lack of hatchery 
          capacity and despite significant revenue increases, DFG has 
          been unable to reach the fish planting requirements of AB 7 
          and has in fact experienced a decline in fish production 
          over the past several years.  DFG is now farther from 
          reaching the AB 7 planting requirements than it was just 
          three years ago.  The solution to this issue is simple, 
          low-cost and readily available, as the state is home to 
          numerous privately-operated fish hatcheries that would be 
          able to assist DFG in reaching its goal rapidly.  This bill 
          does not displace any existing DFG programs, facilities or 
          employees, it simply gives DFG a new tool to use in efforts 
          ensure that the Department fulfills the planting 
          requirements of AB 7."

          Alpers Trout LLC, a private trout farm operator stocking 
          waters in Mono and Inyo counties, emphasizes, "The eastern 
          Sierra is the premier destination outdoor recreation area 
          for southern California and trout fishing is the number one 
          activity for our visitors.  With over 12 million visitor 
          days per year, our region is one of the most heavily used 
          recreation areas in the United States.  The fishing 
          industry touches, literally, every household in our two 
          Counties."  Alpers Trout and other supporters also 
          emphasize the economic and recreational benefits of 
          increased trout planting, particularly in depressed rural 
          areas; state that DFG is incapable of meeting the AB 7 
          production goals without private assistance; and assert 
          that more fish would lead to the purchase of additional 
          licenses.


                                                           CONTINUED





                                                                SB 505
                                                                Page 
          5



          CTW:do  5/16/11   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

                                ****  END  ****
          





































                                                           CONTINUED