BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           489 (Huffman)
          
          Hearing Date:  08/17/2009           Amended: 07/14/2009
          Consultant:  Brendan McCarthy   Policy Vote: NR&W 7-3














































          AB 489 (Huffman)
          Page 2


          _________________________________________________________________ 
          ____
          BILL SUMMARY: This bill will replace the existing system of  
          species specific landing taxes for commercial fish with an  
          ad-valorem landing fee.
          _________________________________________________________________ 
          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2009-10      2010-11       2011-12     Fund
           
          Fish and Game          $50        $350        $300      Special  
          *
             implementation

          Additional revenues               ($250)      ($500)    Special  
          *                                                       
          *Fish and Game Preservation Fund.
          _________________________________________________________________ 
          ____

          STAFF COMMENTS: 
          
          Under current law a landing tax is imposed on the commercial  
          catch of fish. The landing tax is determined by the weight of  
          the catch and the tax rate for each species of fish. Most of the  
          landing tax rates are set by statute and have not been adjusted  
          in recent years. Revenues from landing taxes are deposited in  
          the Fish and Game Preservation Fund and are used for the  
          regulation, management, and enforcement of laws relating to the  
          state's fisheries.  According to the Department of Fish and  
          Game, the state receives between $1.0 million and $1.5 million  
          per year in landing taxes and about $3.7 million in commercial  
          fishing permit fees, while the Department spends about $22  
          million per year on commercial fishery management and  
          enforcement.

          This bill replaces the existing landing tax structure with an ad  
          valorem landing fee based on the value of the catch and a  
          specified fee rate. Beginning on January 1, 2011, the landing  
          fee will be 1.5 percent of the average ex-vessel price for a  
          given species of fish, as determined by the Department. On  
          January 1, 2013, the landing fee will rise to 3.0 percent of the  
          average ex-vessel price. The bill specifies that landing fee  








          AB 489 (Huffman)
          Page 2


          revenues will be used only for commercial fishery management.  
          The bill also requires the Department to report to the  
          Legislature by January 2012 on the regulation of imported fish  
          that are sold in the state but not subject to landing fees.

          Staff estimates that the Department will incur additional costs  
          to educate fishermen about the change, to determine the  
          ex-vessel price for the various commercial fish species, and to  
          enforce the requirements of the bill, with total costs of  
          between $300,000 and $350,000 per year. The Department estimates  
          that when fully implemented, the increased landing fees will  
          generate about $500,000 per year in additional revenues, rising  
          to about $2.2 million in additional revenues after 2013.