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 | | ------------------------------------------------------------ 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 SB 505 Page 2 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. SB 505 Page 3 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 SB 505 Page 4 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 SB 505 Page 5 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 **** END ****