BILL ANALYSIS 1
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| SENATE COMMITTEE ON NATURAL RESOURCES AND WATER |
| Senator Fran Pavley, Chair |
| 2009-2010 Regular Session |
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BILL NO: AB 1052 HEARING DATE: June 23, 2009
AUTHOR: Caballero URGENCY: No
VERSION: June 17, 2009 CONSULTANT: Marie Liu
DUAL REFERRAL: No FISCAL: Yes
SUBJECT: Bay-Delta Sport Fishing Enhancement Stamp.
BACKGROUND AND EXISTING LAW
Section 7360 of the Fish and Game Code requires any person
fishing within the tidal waters of San Francisco Bay Delta and
the main stem of the Sacramento and San Joaquin Rivers below the
most downstream dam to hold a valid fishing license with a
Bay-Delta Sport Fishing Enhancement Stamp (Bay-Delta stamp). The
Bay-Delta stamp was created in 2003 in SB 692 (Kuehl) to succeed
the striped bass stamp. The intent of SB 692, which was
sponsored by the Department of Fish and Game (DFG), was to
reflect DFG's shift from single-species management to an
ecosystem approach.
Proceeds from the Bay-Delta Stamp are deposited in a separate
account in the Fish and Game Preservation Fund (Fund) and may
only be expended for the "long-term, sustainable benefit" of the
primary Bay-Delta sport fisheries including salmon, surf perch,
steelhead trout, striped bass, sturgeon, and black bass.
Expenditures must benefit sport fish populations in a manner
that is consistent with the California Endangered Species Act,
the federal Endangered Species Act, the ecosystem restoration
component of CalFed, and commission policies. The stamp
currently costs $6.30. There was a total of $1.6 million
deposited into the Fund from the sale of Bay-Delta stamps.
Section 7362 establishes a Bay-Delta Sport Fishing Enhancement
Stamp Fund Advisory Committee (advisory committee), consisting
of nine members that are selected by the DFG director from a
list of persons submitted by anglers and associations
representing Bay-Delta anglers. The advisory committee members
serve for no more than four years at the discretion of the
director. Members must have experience in "subjects of specific
value to the committee" and attempt to balance the perspective
of different anglers. The advisory committee is charged with
recommending to DFG projects and budgets for the expenditure of
the Bay-Delta stamp fund.
Additionally under 7362, beginning this year, DFG is required
to submit to the advisory committee and the Legislature a report
accounting the following: the Bay-Delta stamp funds generated
and expended, the status of projects that are undertaken with
Bay-Delta stamp funds, and the rationale for any expenditure
that DFG undertakes that did not follow the recommendations of
the advisory committee. According to DFG, this year's report is
awaiting final approval from the Governor's office.
The Bay-Delta stamp was originally set to sunset on January 1,
2009; however, AB 2162 (Mullin, Statutes of 2008) extended the
program for one year to 2010 in order to allow the Legislature
to review the findings of a pending audit. The State Auditor
submitted its audit on the program in October 2008.
PROPOSED LAW
This bill would codify recommendations from the state auditor
report to improve expenditures of the Bay-Delta Stamp Fund as
well as accounting of these expenditures. Specifically this bill
would:
Extend the sunset of the Bay-Delta Stamp to January 1, 2015.
Require the department to develop a spending plan for the fund
in consultation with the advisory committee.
Require greater tracking and accountability of fund
expenditures.
Require a written report of expenditures, status of funded
projects, total administrative expenditures.
Require DFG to correct inappropriate previous expenditures of
the Bay-Delta Stamp Fund.
Require DFG to submit a report to the Legislature by January
1, 2011 that outlines the steps that DFG is taking to come
into compliance with this bill, including a plan for
expenditures of available stamp revenues.
Require DFG to receive approval from the advisory committee
for all expenditures from the Bay-Delta Stamp Fund.
ARGUMENTS IN SUPPORT
The author states that the intent of this bill is to require DFG
to follow the State Auditor's recommendations to address
concerns with DFG's handling of stamp funds, including
inadequate monitoring of fish stamp project activity, incomplete
expenditure reports, and inappropriate charges funded from the
stamp program.
ARGUMENTS IN OPPOSITION
None received.
COMMENTS
Findings of the 2008 State Audit of the Bay-Delta Stamp Program:
The auditor found that DFG has been slow in using revenues from
fish stamp sales and slow in identifying and approving projects.
As a result, as of June 2008, the fund had generated $8.6
million in revenue and interest, yet only 17 projects for a
total of $1.6 million have been authorized, leaving a surplus of
$7 million. The auditor found that DFG's accounting for project
activity or administrative expenditures was inadequate and, at
times, inaccurate. Periodic reports from DFG to the advisory
committee did not include project expenditures or detailed
information on project status. Additionally, the auditor found
that the advisory committee has been slow to identify and
recommend projects.
The audit made a number of recommendations to improve
accounting, improve reporting, and correct charges to the
Bay-Delta Stamp fund and the General Fund. The requirements that
would apply to DFG in this bill closely mirror the auditor's
recommendations.
In its response to the audit, DFG stated that it agreed with all
of the audit's recommendations and that it is taking action to
address them. Specifically, DFG stated that it is in the process
of developing a formal spending plan for the Bay-Delta Stamp
Funds.
Is it appropriate for an advisory committee to have control over
the expenditure of stamp funds?
This bill would prohibit any expenditure unless both DFG and a
majority of the members of the advisory committee have approved
it. Presumably it is the author's intent to force the department
to follow the advisory committee's recommendations and advice.
However, the committee may wish to consider whether this
objective can be met with existing statute and language in this
bill requiring the following:
DFG to give full consideration to the advisory committee's
recommendation for expenditures (existing law, 7362(b)),
DFG, in its annual report, to include it's rational for any
expenditure that did not follow the advisory committee's
recommendations (existing law, 7362(c)), and
DFG to develop a spending plan in consultation with the
advisory committee (as proposed by this bill, 7363(a)(1)).
Furthermore, there are very minimal statutory requirements
regarding the qualifications of the advisory committee other
than requiring the director to attempt to assemble a committee
that represents a balance of different anglers. The committee
may to consider whether it is appropriate for an entity, which
was designed to be advisory, to control DFG's spending. [See
amendment 1]
Repetitive reporting requirements and language: Under current
law, DFG is required to submit to the Legislature and advisory
committee a report on the number of stamps sold, the funds
generated and expended, and the status of projects funded by the
stamp proceeds. This bill would require a second annual report
with nearly identical information. The only additional
information this bill's report would include is regarding
administrative expenditures. The committee may wish to eliminate
the annual report required under this bill and instead add
administrative expenditures to the data that must be included in
the currently required report. [See amendment 2]
Additionally, this bill requires DFG to identify appropriate
projects for the expenditure of the fund in two separate
subdivisions in section 7363. The committee may wish to delete
duplicative language. [See amendment 3]
SUGGESTED AMENDMENTS
AMENDMENT 1
On page 4, delete lines 8-11 inclusively.
AMENDMENT 2
On page 3, beginning on line 16, delete 7363(a)(3)(A) and
add the following amendment to 7362:
7362(c) The department shall submit to the advisory
committee and the Chief Clerk of the Assembly and the Secretary
of the Senate for distribution to the appropriate fiscal and
policy committees of the Legislature, at least annually, on or
before January 10 of each year, an accounting of funds derived
from the Bay-Delta Sport Fishing Enhancement Stamps and
validations, including the number of stamps and validations
sold, funds generated and expended, administrative expenditures,
and the status of programs funded pursuant to this article. In
addition, the department shall report, at least annually, to the
committee on the status of projects undertaken with funds from
that stamp or validation, including reporting the department's
reasoning in cases where committee recommendations are not
followed.
AMENDMENT 3
On page 4, delete lines 1-7 inclusively and on page 3, line
4, delete "revenues." and insert: "revenues in a manner
consistent with the purposes described in Section 7361.
SUPPORT
Allied Fishing Groups (Sponsor)
California Sport Fishing Protection Alliance
OPPOSITION
None Received