BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      



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          |SENATE RULES COMMITTEE            |                   SB 505|
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                              UNFINISHED BUSINESS


          Bill No:  SB 505
          Author:   La Malfa (R)
          Amended:  6/30/11
          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

           SENATE FLOOR  :  39-0, 5/23/11 (Consent)
          AYES:  Alquist, Anderson, Berryhill, Blakeslee, Calderon, 
            Cannella, Corbett, Correa, De León, DeSaulnier, Dutton, 
            Emmerson, Evans, Fuller, Gaines, Hancock, Hernandez, 
            Huff, Kehoe, La Malfa, Leno, Lieu, Liu, Lowenthal, 
            Negrete McLeod, Padilla, Pavley, Price, Rubio, Runner, 
            Simitian, Steinberg, Strickland, Vargas, Walters, Wolk, 
            Wright, Wyland, Yee
          NO VOTE RECORDED:  Harman

          ASSEMBLY FLOOR  :  Not available


           SUBJECT  :    Fish:  licenses:  trout hatcheries

           SOURCE  :     Author


           DIGEST  :    This bill 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 
                                                           CONTINUED





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          state hatcheries, to contract with privately owned 
          hatcheries to procure up to 20% of the pounds of fish 
          needed to meet the goals.  

           Assembly Amendments  make clarifying changes.

           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 
             Fisheries Fund within the State Treasury.

          2. States that the money in the fund may be expended, upon 
             appropriation, in support of 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 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 fisheries.







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          3. Authorizes funds deposited in the Hatchery and Inland 
             Fisheries Fund (HIFF) 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 HIFF, the total number of fish 
             planted from the HIFF, the hatcheries from which the 
             fish were procured, and all loans made from the HIFF.

           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, 
          and (3) other programs.

          The following fish production goals are met by state 
          hatcheries:

             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 







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             goal was to be met on the following schedule:

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

             o    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.  

          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  8/29/12)

          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 







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          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.


          CTW:d  8/31/12   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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