BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1052
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          ASSEMBLY THIRD READING
          AB 1052 (Caballero)
          As Introduced  February 27, 2009
          Majority vote 

           WATER, PARKS & WILDLIFE      12-0                    
          APPROPRIATIONS      17-0                            
           
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          |Ayes:|Huffman, Fuller,          |Ayes:|De Leon, Nielsen, Ammiano, |
          |     |Anderson, Chesbro,        |     |                           |
          |     |Blumenfield, Caballero,   |     |Charles Calderon, Davis,   |
          |     |Fletcher, Krekorian,      |     |Duvall, Fuentes, Hall,     |
          |     |Bonnie Lowenthal,         |     |Harkey, Miller,            |
          |     |John A. Perez, Salas,     |     |John A. Perez, Price,      |
          |     |Yamada                    |     |Skinner, Solorio, Audra    |
          |     |                          |     |Strickland, Torlakson,     |
          |     |                          |     |Krekorian                  |
          |-----+--------------------------+-----+---------------------------|
          |     |                          |     |                           |
           ------------------------------------------------------------------ 
           SUMMARY  :   Repeals the sunset on provisions of existing law  
          authorizing expenditure of funds from the Bay-Delta Sport  
          Fishing Enhancement Stamp Account for projects to benefit  
          Bay-Delta sport fisheries, and providing for a Stamp Advisory  
          Committee.   Specifically,  this bill  :

          1)Repeals the sunset on provisions of existing law authorizing  
            expenditure of funds from the Bay-Delta Sport Fishing  
            Enhancement Stamp account for projects to benefit Bay-Delta  
            sport fisheries and providing for a Stamp Advisory Committee,  
            allowing these provisions to continue indefinitely, but  
            retains the January 1, 2010 sunset on the requirement to  
            purchase the stamp.

          2)Requires the Department of Fish and Game (DFG) to implement  
            recommendations of the state auditor contained in an October  
            2008 audit of the Bay-Delta Sport Fishing Enhancement Stamp  
            program, and requires DFG to report to the Legislature by an  
            unspecified date on compliance status, including development  
            of a plan for expenditure of available stamp revenues.

           EXISTING LAW  :  









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          1)Until January 1, 2010, requires the purchase of a Bay-Delta  
            Sport Fishing Enhancement 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.  Requires fee  
            revenue from sale of the stamps to be deposited in a separate  
            account within the Fish and Game Preservation Fund, and to be  
            spent for the long-term sustainable benefit of the primary  
            Bay-Delta sport fisheries, including but not limited to  
            striped bass, sturgeon, black bass, halibut, salmon, surf  
            perch, steelhead trout and American shad.  Requires  
            expenditures to benefit sport fishing populations, sport  
            fishing opportunities, and anglers within that geographic  
            area, consistent with endangered species laws and the  
            ecosystem restoration component of CALFED.  Funds are to be  
            used to augment and not replace funding that would otherwise  
            be allocated to Bay-Delta sport fisheries from other sources.

          2)Requires the DFG director to appoint a Bay-Delta Sport Fishing  
            Enhancement Stamp Fund Advisory Committee consisting of nine  
            members representing Bay-Delta anglers, which shall make  
            recommendations to DFG for projects and budgets.  Requires DFG  
            to give full consideration to the committee's recommendations.

          3)Requires DFG to give an annual accounting to the Legislature  
            on the fund and projects.

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee, continued expenditure of $7 million remaining in the  
          Bay-Delta Sport Fishing Enhancement Stamp Account, beyond the  
          current sunset date of January 1, 2010.  Minor, absorbable costs  
          to DFG to report to the Legislature on compliance with this  
          bill.

           COMMENTS  :   The Bay-Delta Sport Fishing Enhancement 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.  The State Auditor conducted an audit  
          of the program in 2008 at the request of the Legislature.  The  
          auditor's review of DFG's administration of the Bay-Delta Stamp  
          program included the following findings:  1) DFG's use of the  
          money collected from fish stamp sales has been limited, and DFG  
          and the fish stamp advisory committee have been slow in  








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          identifying and approving projects; 2) as of June 30, 2008, the  
          fish stamp account had an unspent balance of over $7 million,  
          although a portion of this amount was committed to approved  
          projects that had not yet been funded; 3) DFG does not have an  
          accurate accounting of either its administrative expenditures or  
          individual project expenditures for the program, and periodic  
          reports DFG provides to the committee do not include all the  
          required information; and, 4) during fiscal years 2005-06  
          through 2007-08 DFG spent an estimated $201,000 in fish stamp  
          funds to pay for payroll costs and goods and services unrelated  
          to fish stamp activities.

          The audit included a number of specific recommendations to  
          address these deficiencies which are spelled out in this bill.   
          The DFG Director, in a written response to the audit agreed with  
          many of the audit recommendations and indicated DFG was in the  
          process of implementing changes.  The author has introduced this  
          bill to ensure DFG follows the recommendations of the audit, and  
          to extend the operative date on the sections of law authorizing  
          expenditure of the monies in the fund and the existence of the  
          advisory committee, which would otherwise sunset at the end of  
          this year.  This bill, as currently drafted, does not extend the  
          sunset on the requirement for purchase of the stamp.     

          Multiple fish species in the Delta have recently experienced  
          precipitous declines, including native species such as Delta  
          smelt and Central Valley Chinook salmon, but other sport fish  
          species such as striped bass and American shad are also in  
          decline.   Multiple factors and stressors are suspected to be  
          contributing to these declines, including overall deteriorating  
          conditions in the Bay-Delta and its tributaries, pesticides and  
          other water quality pollutants, increased pumping of fresh water  
          from the Delta, invasive species and ocean conditions.  Revenue  
          from the Bay-Delta Sport Fishing Enhancement Stamp provides one  
          source of funds, paid for by sport fishing men and women, for  
          projects that may help provide some long-term sustainable  
          benefit to these sport fish species. 

          The Legislature previously approved AB 2162 (Mullin), Chapter  
          637, Statutes of 2008, which extended the effective date of the  
          Bay-Delta stamp from January 1, 2009 to January 1, 2010.











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           Analysis Prepared by  :    Diane Colborn / W., P. & W. / (916)  
          319-2096

                                                                FN: 0001191