BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          AB 1259 (Levine) - Bees:  apiculture:  state-owned lands
          
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          |Version: June 24, 2015          |Policy Vote: AGRI. 3 - 0        |
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          |Urgency: Yes                    |Mandate: No                     |
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          |Hearing Date: July 13, 2015     |Consultant: Marie Liu           |
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          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  







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            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  








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          §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  








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          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.




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