BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1052
                                                                  Page  1

          Date of Hearing:   April 29, 2009 

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

               AB 1052 (Caballero) - As Introduced:  February 27, 2009 

          Policy Committee:                              WPW  Vote:12-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              No

           SUMMARY  

          This bill repeals the sunset authorizing expenditures funds from  
          the Bay-Delta Sport Fishing Enhancement Stamp Account (stamp  
          account) and the Stamp Advisory Committee, and deletes  
          provisions requiring purchase of the Bay-Delta Sport Fishing  
          Enhancement Stamp.  Specifically, this bill:

          1)Repeals existing law that sunsets authorization to expend  
            funds from the stamp account for projects that benefit  
            Bay-Delta sport fisheries and that provide for the advisory  
            committee.

          2)Retains provisions that sunset, as of January 1, 2010, the  
            requirement to purchase a Bay-Delta Sport Fishing Enhancement   
            (BDSFE) Stamp in order to fish in the Delta and other  
            specified areas.

          3)Requires the Department of Fish and Game (DFG), in  
            consultation with the advisory committee, to implement  
            recommendations made in a State Auditor's audit of the stamp  
            program.

          4)Requires DFG to report to the Legislature on compliance with  
            this bill and on its plan to expend stamp account revenues.

           FISCAL EFFECT  

          1)Continued expenditure of $7 million remaining in the stamp  
            account, beyond the current sunset date of January 1, 2010,  
            that otherwise may revert to the General Fund or to some other  
            fund for the benefit of fish and game.









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          2)Minor, absorbable costs to DFG to report to Legislature on  
            compliance with this bill. 

           COMMENTS  
             
          1)Rationale.   The author's intent is to ensure that DFG  
            implements the recommendations made in a state auditor's  
            report of the fish stamp program.  In addition, the author  
            wants to repeal the sunset date authorizing the expenditure of  
            funds in the stamp account to ensure there is the opportunity  
            to expend the $7 million remaining in the account on projects  
            that benefit Delta sport fish populations.  The author further  
            believes it is inappropriate to continue to collect the stamp  
            fees absent a departmental plan to expend stamp account funds  
            on projects that benefit Delta sport fisheries.  
             
           2)Background.  The BDSFE Stamp replaced the prior Striped Bass  
            Stamp in 2003.  Sales of the stamp have generated over $8  
            million dollars of revenue intended for use on projects for  
            the long-term sustainable benefit of Bay-Delta sport  
            fisheries.  

            Current law requires, until January 1, 2010, the purchase of a  
            BDSFE Stamp to sport fish in the tidal waters of the San  
            Francisco Bay-Delta and the main stem of the Sacramento and  
            San Joaquin Rivers, including major tributaries, below the  
            most downstream dam.  Revenue from sale of the stamps is  
            deposited in a separate account within the Fish and Game  
            Preservation Fund to be spent for the long-term sustainable  
            benefit of the primary Bay-Delta sport fisheries. 

            Current law also requires the director of DFG to appoint a  
            Bay-Delta Sport Fishing Enhancement Stamp Fund Advisory  
            Committee consisting of nine members representing Bay-Delta  
            anglers.  The advisory committee makes recommendations to DFG  
            about projects and budgets.
           
          3)State Audit.  In October of 2008, the State Auditor released  
            the results of an audit of DFG's administration of the BDSFE  
            Stamp program. Among other criticisms, the auditor stated that  
            DFG has made limited use of money collected from the BDSFE  
            Stamp, and that DFG and the advisory committee have been slow  
            to identify and approve projects.  As a result, the program  
            account had a balance of $7, with just over $8 million  
            collected. In addition, the auditor faulted DFG's accounting  








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            practices and found its reports to the advisory committee to  
            be incomplete.  Finally, the auditor found that, during fiscal  
            years 2005-06 through 2007-08, DFG spent an estimated $201,000  
            in stamp funds to pay costs unrelated to fish stamp program.   
            The state auditor made a number of recommendations for  
            administration of the fish stamp program consistent with the  
            requirements of this bill.  

             The Director of DFG, in a written statement, agreed with many  
            of the state auditor's findings and indicated that the  
            department was in the process of implementing needed changes.   
            It is unclear whether these changes have yet been implemented.

           4)Disposition of Funds.  Government Code Section 16346 states  
            that, absent language that identifies a successor fund, any  
            balance remaining in the Fish and Game Preservation Fund  
            (FGPF) upon abolishment shall be transferred to the General  
            Fund.  The stamp account is a subaccount of the FGPF;  
            presumably, funds in the stamp account would revert to the  
            General Fund upon sunset of the provisions creating the stamp  
            account.  

             However, the Government Code seems to be in conflict with  
            Article XVI, Section 99 of the Constitution, which provides  
            that money collected under any state law relating to the  
            protection or propagation of fish and game shall be used for  
            those purposes.  It is unclear, therefore, which account would  
            receive the funds remaining in the stamp account should the  
            existing sunset provisions take effect.

           Analysis Prepared by  :    Jay Dickenson / APPR. / (916) 319-2081