BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 197
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          Date of Hearing:   June 18, 2013

                   ASSEMBLY COMMITTEE ON WATER, PARKS AND WILDLIFE
                                Anthony Rendon, Chair
                  SB 197 (Evans) - As Introduced:  February 7, 2013

          SENATE VOTE  :   34-3
           
          SUBJECT  :   Commercial Fishing Salmon Stamp

           SUMMARY  :   Extends the sunset date on the commercial fishing  
          salmon stamp program and related provisions from 2014 to 2019.

           EXISTING LAW  :

          1)Establishes the Commercial Salmon Trollers Enhancement and  
            Restoration Program.  Prohibits the take of salmon for  
            commercial purposes unless the person taking the salmon has a  
            current commercial fishing salmon stamp affixed to his or her  
            commercial fishing license.  Exempts persons below the age of  
            16 or over the age of 70 years from the requirement to  
            purchase a commercial fishing salmon stamp.

          2)Requires the Department of Fish and Wildlife (DFW) to issue  
            commercial fishing salmon stamps upon payment of a base fee of  
            $85.  The salmon stamp fee is increased for landings over  
            3,000,000 pounds, not to exceed $260.

          3)Requires revenues from the sale of commercial fishing salmon  
            stamps, after deduction of the DFW's administrative costs for  
            issuance of the stamps, to be deposited in the Commercial  
            Salmon Stamp Account in the Fish and Game Preservation Fund  
            (FGPF).  Authorizes monies in the Salmon Stamp Account to be  
            expended, upon appropriation by the Legislature, for new or  
            expanded salmon restoration and enhancement programs that  
            increase ocean salmon landings.  Up to $30 of the fees from  
            the sale of each salmon stamp are required to be used by DFW  
            for raising Chinook salmon in hatcheries, subject to certain  
            limitations.  Administrative costs which can be paid from the  
            Salmon Stamp Account are capped at 15%.  Requires the DFW to  
            post on its Internet Website an accounting of projects funded  
            with Commercial Salmon Stamp Account funds, and the costs to  
            administer the program.

          4)Authorizes additional funds received by the DFW on behalf of  








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            the Commercial Salmon Trollers Enhancement and Restoration  
            Program to be deposited in the Commercial Salmon Stamp  
            Account, including but not limited to, grants from the federal  
            government, and other nonfederal sources if the grantor  
            designates in writing prior to the deposit that the funds are  
            intended solely for deposit into the Salmon Stamp Account.  

          5)States legislative intent that the DFW use moneys from the  
            sale of salmon stamps, plus other matching funds provided by  
            the DFW, to raise two million Chinook salmon annually to  
            yearling size to help replenish California's salmon resource.   
            Requires that only one half of the cost for the hatchery  
            production come from the Salmon Stamp Account.  Prohibits  
            state General Fund monies from being used for the required  
            match.

          6)Establishes the Commercial Salmon Trollers Advisory Committee  
            to recommend programs and a budget for expenditures from the  
            Salmon Stamp Account to the DFW, including the creation and  
            sale of artwork and a collectible salmon stamp for sale to the  
            public.

          7)Provides that all of the above described provisions shall  
            remain in effect until January 1, 2014, and as of that date  
            are repealed, unless a later enacted statute enacted before  
            January 1, 2014 extends that date.         

           FISCAL EFFECT  :   According to the Senate Appropriations  
          Committee:

          1)Annual revenues to the Commercial Salmon Stamp Account within  
            the Fish and Game Preservation Fund of approximately $250,000,  
            but varying between $50,000 and $500,000 depending on the  
            health of that year's salmon runs; 

          2)Annual expenditures from the Commercial Salmon Stamp Account  
            in the low hundreds of thousands of dollars;

          3)Annual cost pressures in the low hundreds of thousands of  
            dollars on the non-dedicated portion of the FGPF to provide  
            the required match for expenditures from the Stamp Account for  
            hatchery production of Chinook salmon;

          4)Annual administrative costs of $30,000 from the Salmon Stamp  
            Account, and annual costs of approximately $50,000 from the  








                                                                  SB 197
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            FGPF (non-dedicated portion) for administrative costs above  
            the 15% cap.

           COMMENTS  :   This bill extends the sunset date on the existing  
          commercial salmon stamp program from 2014 to 2019 and makes no  
          other substantive changes to the program.  The commercial salmon  
          fishermen who pay the stamp fee support the extension of the  
          program, which provides funding for salmon enhancement and  
          restoration projects, and also establishes the Commercial Salmon  
          Trollers Advisory Committee.  The commercial salmon industry  
          asserts that the program is a result of 30 years of legislative  
          efforts by commercial salmon fishermen who believe the stamp  
          program is important for improving salmon stock and salmon  
          catch. 

           Are other changes to the commercial salmon program warranted  ? In  
          the past, there have been discussions regarding other proposed  
          changes to the stamp program.  For example, a bill in the  
          2009-10 Session proposed to increase the salmon stamp fee to a  
          fixed fee of $350 but that proposal was not pursued.  In  
          addition, there is currently a substantial fund balance in the  
          Commercial Salmon Stamp Account (approximately $1.3 million),  
          but the DFW's annual expenditure authority under the program is  
          limited to $295,000.  It has been suggested by some that the DFW  
          should be encouraged, in consultation with the Salmon Stamp  
          Advisory Committee, to come up with an expenditure plan to draw  
          down the balance in the Account to a prudent reserve.  In  
          addition, since the DFW's current administrative costs for the  
          program exceed the 15% cap on the amount of administrative costs  
          that can be paid for out of the Stamp Account, the balance of  
          the DFW's administrative costs for the program are being paid  
          from other non-dedicated funds in the FGPF.  In light of the  
          significant existing balance in the Stamp Account, it is unclear  
          what the continued justification is for either the 15% cap on  
          administrative expenditures that can be paid from the Stamp  
          Account, or for some of the other limitations on program  
          expenditures.            

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          Pacific Coast Federation of Fishermen's Associations (Sponsor)
          California Association of Professional Scientists (CAPS)
          California Salmon Council








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          Fisherman's Marketing Association of Bodega Bay
          Humboldt Fishermen's Marketing Association, Inc.
           
           Opposition 
           
          None on file.

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