BILL ANALYSIS Ó SB 197 Page 1 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 SB 197 Page 2 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 Page 3 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 SB 197 Page 4 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