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 SB 505 Page 2 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 Page 3 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 SB 505 Page 4 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 SB 505 Page 5 United Anglers of Southern California Opposition None on file. Analysis Prepared by : Diane Colborn / W., P. & W. / (916) 319-2096