BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session AB 1259 (Levine) - Bees: apiculture: state-owned lands ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: June 24, 2015 |Policy Vote: AGRI. 3 - 0 | | | | |--------------------------------+--------------------------------| | | | |Urgency: Yes |Mandate: No | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: July 13, 2015 |Consultant: Marie Liu | | | | ----------------------------------------------------------------- This bill meets the criteria for referral to the Suspense File. Bill Summary: This bill would allow the Department of Fish and Wildlife (DFW) to authorize the temporary placement of beehives on wildlife areas through simple lease or permit agreements that are not subject to competitive bidding requirements. This bill would also authorize the Department of General Services (DGS) to lease state lands for commercial apiary purposes at less than fair market value with the consent of the agency concerned. Fiscal Impact: Unknown administrative cost impacts, but potential minor savings, to the Wildlife Restoration Fund (special) to allow DFW-managed lands to be issued without competitive bidding. Unknown revenues losses, potentially in the tens to hundreds of thousands of dollars, to the General Fund and the Wildlife Restoration Fund (special) for leases made below fair market value. Increased costs for increased state liability (General Fund AB 1259 (Levine) Page 1 of ? and various special funds) for apiary activities on state lands Background: Commercial beekeepers are currently allowed to use some federal lands, including National Forests lands, for temporary foraging. Additionally, DFW has allowed bee keeping on its lands in some limited cases in the past, though DFW did not have an actual policy on allowing beekeeping, commercial or otherwise, on their lands until the passage of AB 2185 (Eggman) Chapter 338, Statutes of 2014. AB 2185 required DFW to consider permitting apiculture on department-managed wildlife areas, where it deemed appropriate. Additionally, AB 2185 required DFW to make several considerations regarding the use of wildlife areas for apiary purposes when developing or amending its land management plans. Since the passage of AB 2185, there have been questions raised to whether the permitting of apiculture on DFW lands requires a competitive bidding process and whether existing agreements to allow bee keeping were valid. DGS is authorized under §14670 of the Government Code to lease state property for periods not to exceed five years, if the lease is in the best interest of the state. The lease may be below fair market rental to a nonprofit for use as a self-help community vegetable garden so long as the lease is less than five acres and is allowable under local zoning ordinances. Revenues from such garden leases are deposited into a special fund. This statute also includes a Legislative finding and declaration that any lease for a community vegetable garden that is let at less than fair market rental is of broad public benefit. Proposed Law: This bill would allow DFW to authorize, rather than permit, the use of wildlife areas for the temporary use for apiary purposes without competitive bidding and would allow DFW to continue to any authorization for apiculture on wildlife areas that were granted before January 1, 2015 without taking further action. This bill would also authorize the DGS to lease state property, with the consent of the agency concerned, for up to five years for commercial apiary purposes, notwithstanding Government Code AB 1259 (Levine) Page 2 of ? §14670. These leases may be less than fair market value Related Legislation: AB 2185 (Eggman) Chapter 338, Statutes of 2014 required DFW to consider permitting apiculture on department-managed wildlife areas. AB 2777 (LaMalfa, 2008) would have required the Resources Agency to establish a statewide policy on the use of public lands for honeybee keeping. AB 2777 was held under submission by the Senate Appropriations Committee. AB 1912 (Evans) Chapter 585, Statutes of 2010 created the California Apiary Research Commission to conduct research and education programs regarding the health and welfare of honey bees and the beekeeping industry. Staff Comments: There has been limited used of DFW or other state lands for apiary purposes. However, the purpose of this bill, AB 2185, and previous legislative efforts, is generally to increase the potential for state lands to be used for apiary purposes. Therefore, past use of state lands for apiary purposes is not necessarily a reflection of potential future use. As all the costs associated with this bill are dependent on the extent that state lands are used for apiary purposes, the uncertainty on future use translates to uncertainty on potential future costs. This bill would allow DGS to issue leases below fair market value, thereby resulting in losses of potential state revenue. While bees play an essential role to billions of dollars of agricultural crops in California, staff notes that this bill essentially is allowing the use lands owned by the people of California for commercial purposes at below-market rates. Furthermore, by notwithstanding GOV §14670, the bill is removing these leases from the requirement that the lease be in best interest of the state. Presumably the bill has this provision to allow the issuance of a below-market value lease because usually the best interests of the state are protected by charging fair market value for leases, though there have been specific cases where the legislature has found that the interest of the state was maintained in below-market leases through other conditions AB 1259 (Levine) Page 3 of ? and requirements. By allowing DFW to authorize, rather than permit, apiculture on department-managed wildlife areas outside of competitive bidding requirements, there may be some administrative cost savings to DFW for future apiary agreements. However, this bill also implies that DGS would handle leasing responsibilities on behalf the concerned agency, which may include DFW. Staff recommends that the bill be clarified as to the responsibilities of DGS and DFW when state wildlife areas are involved. If DGS is to handle leasing responsibilities on behalf of DFW under this bill, it is unclear whether this will change administrative costs. Staff notes that the lack of a competitive bid process does not automatically imply that the lease will take minimal workload to execute. DGS notes that in its experience, leases offered below market value often lead to protracted and contentious negotiations as prospective lessees interpret legislative authorization for below-market value to mean nominal value. To the extent that state lands used for apiary purposes are open to the public or nearby to public areas, there may be increased liability exposure to the state for any increased hazards that the apiary activities may cause. -- END --