BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 505
                                                                  Page  1

          Date of Hearing:   June 24, 2011

                   ASSEMBLY COMMITTEE ON WATER, PARKS AND WILDLIFE
                                 Jared Huffman, Chair
                     SB 505 (La Malfa) - As Amended:  May 3, 2011

           SENATE VOTE  :   39-0
           
          SUBJECT  :   Fish Licenses: Trout Hatcheries

           SUMMARY  :   Authorizes the Department of Fish and Game (DFG), if 
          they are not able to meet statutory goals for production of 
          hatchery fish through fish produced at state hatcheries, to 
          contract with privately owned hatcheries to procure up to 20% of 
          the pounds of fish needed to meet the goals.  Specifically,  this 
          bill  :

          1)Authorizes DFG, if goals specified in existing law for the 
            production and release of hatchery produced trout are not 
            projected to be met by state hatcheries, to contract with 
            privately owned hatcheries located in the state to procure up 
            to 20 percent of the pounds of fish necessary to meet the 
            goals.  Provides that the cost per fish or pound of fish 
            provided by privately owned hatcheries shall not exceed the 
            cost to DFG of state hatchery fish.

          2)Authorizes funds deposited in the Hatchery and Inland Fisheries 
            Fund from sport fishing license fees to be used for purchase of 
            fish from private hatcheries, subject to appropriation.

          3)Requires DFG by July 1, 2012 and annually thereafter to report 
            to the fiscal and policy committees of the Legislature on 
            implementation of provisions of law relating to hatcheries.  
            Requires the report to contain specified information, including 
            revenues to and expenditures from the Hatchery and Inland 
            Fisheries Fund, the total number of fish planted from the Fund, 
            the hatcheries from which the fish were procured, and all loans 
            made from the Fund.    

           EXISTING LAW  :

          1)Requires 33.33% of all sport fishing license fees collected to 
            be deposited into the Hatchery and Inland Fisheries Fund.  
            Authorizes monies in the fund, upon appropriation by the 
            Legislature, to support programs of DFG related to California's 








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            fish hatcheries, the Heritage and Wild Trout Program, related 
            enforcement activities, and other activities eligible to be 
            funded from sport fishing license fees.

          2)Requires sport fishing license fees in the Hatchery and Inland 
            Fisheries Fund to be used:

               a)     To achieve specified production goals for state 
                 hatcheries, including a goal that by July 1, 2009 and 
                 thereafter a minimum of 2.75 pounds of trout be released 
                 per sport fishing license sold, 2.25 pounds of which are 
                 of catchable size or larger.
               b)     Two million dollars to be used for the Heritage and 
                 Wild Trout Program, for permanent positions, seasonal 
                 aides and other activities necessary to the program.
               c)     To ensure that that numbers of native California 
                 trout produced are sufficient to equal or exceed 25% of 
                 the number of trout produced by state fish hatcheries.  
                 Requires DFG to attain 15% production of native trout by 
                 2010, 20% by 2011, and 25% by 2012.

          3)Requires DFG to report by July 1, 2008 and annually thereafter 
            to the Legislature on implementation of these provisions.

           FISCAL EFFECT  :   According to the Senate Appropriations 
          Committee, pursuant to Senate Rule 28.8, negligible state costs. 

           COMMENTS  :   This bill seeks to assist the state in meeting goals 
          for hatchery trout production and release by authorizing DFG to 
          purchase up to 20% of the pounds of fish needed to meet the goal. 
           The author asserts that AB 7, legislation passed by the 
          Legislature in 2005, required DFG to plant a certain number of 
          trout in California waters by specified dates, and that DFG has 
          failed to meet those goals due to a lack of hatchery capacity.  
          The author and sponsors note there are numerous 
          privately-operated hatcheries in California that could assist DFG 
          in meeting the goals.

          It should be noted that the goals of AB 7, which include that a 
          minimum of 2.75 pounds of trout be released per fishing license 
          sold, with 2.25 pounds of catchable size or larger, are in fact 
          goals rather than hard requirements. DFG's report to the 
          Legislature on implementation of AB 7 notes that the Governor's 
          signing message acknowledged the goals of the law would be 
          difficult to achieve, and should therefore be modified with more 








                                                                  SB 505
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          reasonable goals so that expectations are better aligned to 
          reflect what is sustainable.  DFG nevertheless indicates it has 
          made progress in implementing AB 7 and has stocked from 3,600,000 
          and 4,300,000 pounds of trout per year, while selling from 
          1,862,000 to 2,077,000 licenses.  This equates to a ratio of 1.9 
          to 2.2 pounds of mostly catchable size fish per license.  Given 
          the AB 7 overall production goal of 2.75 pounds per license in 
          2009, DFG is approximately 30% below the target goal currently.  
          However, DFG notes in its report that planting enough fingerling 
          and sub-catchable trout to meet the overall production goal would 
          be biologically unsound, and, therefore, overall trout production 
          goals must be achieved primarily through planting of catchable 
          and larger fish.   For 2009, the total pounds of catchable and 
          larger trout planted were 21.2% below the statutory goal.  DFG 
          currently operates 11 state hatcheries with two planting bases, 
          with facilities located throughout the state.  DFG also indicates 
          they have invested Hatchery and Inland Fishery Fund monies in 
          capital improvements at several state hatcheries which they 
          expect to increase their capacity to meet the statutory goals in 
          the near future using existing state facilities.

          DFG's annual report also notes spread of invasive species is a 
          significant risk with hatchery production.  Of particular note, 
          New Zealand Mud Snails and both Quagga and Zebra mussels, all 
          highly invasive species, have been found in state waters near 
          several fish hatcheries.  All state hatcheries take special 
          precautions to prevent transport of invasive species by hatchery 
          operations, and a statewide protocol of monitoring for aquatic 
          invasive species has been implemented at all DFG hatcheries.  
          Additionally, a statewide protocol for monitoring at both DFG and 
          private aquaculture facilities is being developed as part of 
          mitigation measures identified in DFG's fish stocking EIR.

           Support Arguments  :  Supporters emphasize the economic and 
          recreational benefits of increased trout planting, and the 
          availability of private hatchery fish to assist DFG in meeting 
          the production goals.  The author also emphasizes that due to a 
          lack of capacity and despite significant revenue increases DFG 
          has been unable to meet the AB 7 goals and has experienced an 
          actual decline in fish production.  Some supporters also point 
          out that the counties in which the fish are planted will benefit 
          from the economic stimulus created as a result of increased 
          fishing opportunities and increased angler visits, which means 
          more sales tax revenue and jobs.  In addition, higher angler 
          success will encourage more fishing licenses to be sold which 








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          will increase DFG license-sale revenues.

           Opposition Arguments (prior version)  : SEIU Local 1000 opposed the 
          prior version of this bill which mandated that up to 20% of the 
          pounds of fish to be stocked be purchased by DFG from 
          privately-operated hatcheries.  SEIU asserted that by mandating 
          the state purchase fish from private hatcheries, this bill was 
          duplicative of the state's own resources, created unnecessary 
          risks of introduction of invasive species or disease which could 
          cause devastating environmental impact to state fisheries, and 
          lacked oversight.  This bill was amended in the Senate to remove 
          the mandate and in its current form only authorizes but does not 
          require DFG to acquire up to 20% of fish stock from private 
          hatcheries.  SEIU is neutral on this bill as amended.

           Suggested Amendment  : While fish stocking programs are a long 
          standing and integral part of recreational and commercial fishing 
          in California, in recent years scientific advances in fish 
          genetics and biology have given rise to significant concerns 
          about current hatchery practices and calls for reform of hatchery 
          operations.  A 2010 EIR/EIS of DFG's hatchery and fish stocking 
          programs recognized the need to address the risks of the spread 
          of invasive species and disease into the state's inland waters 
          through fish stocking, and noted hatchery raised fish can be a 
          source of disease and introduction of invasive species.  For 
          these reasons, committee staff recommends, if the committee 
          chooses to approve this bill, that an amendment be added 
          conditioning DFG's procurement of fish from private hatcheries on 
          a determination by DFG, following an inspection, that the private 
          hatchery is in compliance with operations, management and 
          monitoring standards at least as stringent as those in effect at 
          state hatcheries, in order to minimize the risk of the spread of 
          disease or invasive species into inland state waters and 
          fisheries.    

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          Alpers Trout, LLC
          Calaveras Trout Farm, Inc.
          California Association for Recreational Fishing
          Mt. Lassen Trout Farm, Inc.
          The California Aquaculture Association
          The California Parks Company








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          United Anglers of Southern California

           
            Opposition 
           
          None on file.

           Analysis Prepared by  :    Diane Colborn / W., P. & W. / (916) 
          319-2096