BILL ANALYSIS Ó
Senate Appropriations Committee Fiscal Summary
Senator Kevin de León, Chair
SB 197 (Evans) - Commercial fishing: commercial fishing salmon
stamp.
Amended: As introduced Policy Vote: NR&W 9-0
Urgency: No Mandate: Yes (see staff note)
Hearing Date: April 22, 2013 Consultant:
Marie Liu
This bill meets the criteria for referral to the Suspense File.
Bill Summary: SB 197 would extend the sunset date of the
commercial salmon stamp to January 1, 2019.
Fiscal Impact:
Likely annual salmon stamp revenues of approximately
$250,000 but varying between $50,000 and $500,000 to the
Commercial Salmon Stamp Account (CSSA) within the Fish and
Game Preservation Fund (special fund).
Annual expenditures in the low hundreds of thousands from
the CSSA for hatchery operations, scientific research and
monitoring, and habitat restoration from the CSSA.
Annual cost pressure in the low hundreds of thousands on
the non-dedicated portion of the Fish and Game Preservation
Fund (special fund) to match expenditures from the
Commercial Salmon Stamp Account for the hatchery production
of chinook salmon.
Approximate annual administrative costs of $30,000 from the
CSSA.
Approximate annual costs of $50,000 from the non-dedicated
portion of the Fish and Game Preservation Fund for
administrative costs not covered by the CSSA.
Background: A commercial fishing permit from the Department of
Fish and Wildlife (DFW) is required for the commercial take of
fish. Commercial salmon fishermen are also required to purchase
a commercial fishing salmon stamp under §7860 of the Fish and
Game Code. The base cost of the permit is $85. However, if more
than 3 million pounds of commercial troll salmon were landed in
the previous year, the permit fee may be increased based on the
salmon landed, with a cap of $260.
Proceeds from the commercial salmon stamp, less administrative
SB 197 (Evans)
Page 1
costs which are capped at 15%, must be deposited in the
Commercial Salmon Stamp Account (CSSA) in the Fish and Game
Preservation Fund. Monies in the fund, upon appropriation by the
Legislature, may be expended for salmon restoration and
enhancement programs to increase open salmon landings, and for
other related purposes. Thirty dollars of the salmon stamp fee
must be used by DFW for the hatchery production of chinook
salmon that are to be released into state waters. DFW must match
the stamp monies used for the hatcheries with non-stamp funds.
Existing law establishes the Commercial Salmon Trollers Advisory
Committee (committee) that is charged with recommending programs
and a budget for expenditures from the account to DFW.
The commercial salmon stamp requirements and the committee
sunset in 2014.
Proposed Law: This bill would extend the sunset date of the
commercial salmon stamp from January 1, 2014 to January 1, 2019.
Related Legislation: SB 470 (Evans) Chapter 565/2011 previously
extended the sunset date from 2012 to 2014.
Staff Comments: Since the Salmon Stamp Program was established,
over $14 million in revenues have been generated. Annual salmon
stamp revenues can vary substantially, depending on the health
of that year's salmon runs, from $50,000 in the early 2000's
when the commercial salmon season was canceled to more than
$500,000 in high catch years. According to DFW, the average
annual revenue to the CSSA for the past four years is
approximately $235,000. DFW has expenditure authority of up to
$295,000 annually.
Project expenditures in 2012 included: $180,000 for the Hatchery
Enhancement Fish Program, $50,000 for research and monitoring,
and $30,000 for habitat restoration. As statute requires DFW to
match CSSA's contribution to hatchery production of chinook
salmon, these expenditures required matching funds from the Fish
and Game Preservation Fund.
Staff notes that there is a substantial fund balance in the
CSSA. At the beginning of this year, it was $1.345 million.
Given that the expenditure authority is only $60,000 more than
the four-year revenue average, it will take many years for the
SB 197 (Evans)
Page 2
fund balance to be drawn down. Staff notes that it may be
desirable to have DFW, in consultation of the advisory
committee, develop a plan to draw down the balance to a more
reasonable reserve level.
DFW indicates that the administration of the salmon stamp
program includes a 0.3 PY program technician for stamp issuance
and renewal and a 0.5 PY environmental scientist to support the
Salmon Stamp Advisory Committee and other program support for a
total cost of $86,000 annually. This amount has been exceeding
the statutory 15% maximum on administrative costs charged to the
CSSA. In FY 2011-12, revenues were $219,000 which translates to
only $32,900 of the administrative costs being paid by the CSSA
with the remaining $53,100 being funded from other accounts
within the Fish and Game Preservation Fund.
Staff notes that there has been historic interest in changing
the salmon stamp fee to a fixed amount, irrespective of the
previous year's landings, in order to allow for better planning
and strategic expenditures from the CSSA. There also has been
past interest in changing the restrictions on CSSA expenditures.
The last sunset extension for the salmon stamp program, granted
in 2011, was limited to two years to encourage negotiations on
potential changes to the program. However, it does not appear
that any substantive discussions have taken place in the past
two years.
This bill does not create a reimbursable state mandate.