BILL ANALYSIS
AB 408
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Date of Hearing: January 21, 2010
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Kevin De Leon, Chair
AB 408 (Saldana) - As Amended: January 4, 2010
Policy Committee: Water, Parks, and
Wildlife Vote: 8-2
Urgency: No State Mandated Local Program:
No Reimbursable: No
SUMMARY
This bill imposes, for five years, a $300 surcharge on the price
of a lobster permit to fund long-term conservation and
management of the California spiny lobster fishery.
Specifically, this bill:
1)Imposes, from April 1, 2011, to March 31, 2016, a $300
surcharge, on the price of a lobster permit, bringing the
total base permit price to $565.
2)Directs that revenues from the surcharge be deposited into the
yet-to-be-created Lobster Management Enhancement Account
(LMEA), a subaccount of the Fish and Game Preservation Fund.
3)Specifies that revenue in the LMEA, upon appropriation, fund
projects to improve lobster conservation and management,
including repaying of California Fisheries Fund loans,
conducting research, and developing a lobster fishery
management plan.
4)Creates a five-member Lobster Management Enhancement Advisory
Committee that recommends projects to be funded from the LMEA
to DFG.
5)Limits administrative overhead to implement the bill to 15% of
annual expenditures from the LMEA.
6)Recasts the dimensions and characteristics of lobster traps
authorized for use in California.
FISCAL EFFECT
AB 408
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1)Annual revenue of approximately $30,000 in 2011-12, and
approximately $60,000 annually from 2012-13 through 2015-16.
(LMEA)
2)Minor costs, no more than $37,000 from 2011-12 through
2015-15, to DFG to administer the surcharge and to support the
committee. (LMEA)
3)Possible additional annual costs of an unknown amount, not to
exceed about $30,000 annually, from the General Fund or other
fund source, should the LMEA administrative costs exceed the
15% administrative cost cap.
COMMENTS
1) Rationale . The bill's sponsors contend the revenue
generated by the surcharge provides a stable fund source
for projects that help ensure the viability of California's
commercial lobster fishing industry.
2) Lobster Fishing in California . Current law prohibits
taking lobster for commercial purposes without a valid
annual lobster permit, issued by DFG. The current base
price of a lobster permit is $265. In 2007, DFG issued 214
lobster operator permits.
According to the California Lobster and Trap Fishermen's
Association-a cosponsor of this bill-the average commercial
weight of lobsters caught in California is down from a
range of around 3.5-4 pounds to 1.25-2 pounds, indicating a
stressed lobster fishery. The Association voted to pursue
legislation to require that all commercial lobster
fishermen pay a fee to generate funds to support lobster
fishery conservation and management. It is unclear what
percentage of the state's commercial lobster fishermen and
women are members of the association or support the
surcharge described in the bill.
3) Are administrative costs covered? The bill establishes
a 15% cap on administrative costs. Presumably, this cap is
sufficient to cover all cost of administering the new
AB 408
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surcharge and fund and supporting the advisory committee.
Certainly, the administrative cap is more generous than
administrative caps included in bond measures passed by the
Legislature and approved by voters in recent years, many of
which include administrative cost caps of 5%. DFG,
nonetheless, estimates that annual administrative costs my
run as high as $40,000, an amount that would gobble up
two-thirds of surcharge revenue collected, absent the cap.
Should DFG's predictions hold true-an unlikely but feasible
outcome-other funding sources would need to cover the
excess administrative costs resulting from this bill.
4) Related legislation. This bill is similar to AB 571
(Salda?a), which passed the Assembly 50-25. The governor
vetoed the bill, stating the surcharge might drive some
fishermen or women out of business and that the bill
imposes new, unfunded duties on DFG.
5) Support. Supporters believe this bill ensures
sustainability and economic viability of the lobster
fishery in California. They further assert this bill
establishes a reliable mechanism for funding projects to
achieve these goals.
There is no registered opposition to this bill.
Analysis Prepared by : Jay Dickenson / APPR. / (916) 319-2081