BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 505
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          SENATE THIRD READING
          SB 505 (La Malfa)
          As Amended  June 30, 2011
          Majority vote 

           SENATE VOTE  :39-0  
           
           WATER, PARKS & WILDLIFE      13-0                   
          APPROPRIATIONS      17-0        
           
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          |Ayes:|Huffman, Halderman, Bill  |Ayes:|Fuentes, Harkey,          |
          |     |Berryhill, Blumenfield,   |     |Blumenfield, Bradford,    |
          |     |Campos, Fong, Gatto,      |     |Charles Calderon, Campos, |
          |     |Roger Hernández, Hueso,   |     |Davis, Donnelly, Gatto,   |
          |     |Jones, Lara, Olsen,       |     |Hall, Hill, Lara,         |
          |     |Yamada                    |     |Mitchell, Nielsen, Norby, |
          |     |                          |     |Solorio, Wagner           |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           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% 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)Provides that DFG's authority to procure fish from a privately 
            owned hatchery is contingent upon a determination by DFG, 
            following an inspection, that the privately owned hatchery is 
            in compliance with operations, management, and monitoring 
            standards that are 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 








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            fisheries.

          3)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.

          4)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 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 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.








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          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 Assembly Appropriations 
          Committee, potential minor, absorbable costs to DFG to inspect 
          privately owned hatcheries and report to the Legislature.  
          (Special fund.)  DFG indicates that trout from privately owned 
          hatcheries are more costly than trout from state hatcheries.  
          However, this price differential will not result in increased 
          costs to DFG because the authority provided to DFG to purchase 
          trout from privately owned hatcheries is limited by DFG's 
          ability to do so at a cost that is no more than the cost of 
          state hatchery fish. 

           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 (Cogdill), Chapter 689, 
          Statutes of 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 (Cogdill), 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 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 








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          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 
          environmental impact report.

          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 will 
          increase DFG license-sale revenues.


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










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