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: July 6, 2009  
          AUTHOR: Caballero                  URGENCY: No  
          VERSION: July 1, 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 stamp currently costs $6.30. In  
          2007-8, there was a total of $1.6 million deposited into the  
          Fund from the sale of Bay-Delta stamps.

          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. 

          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. This year's report has not yet been  
          received by the Legislature.

          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 audit to  
          improve expenditures of the Bay-Delta Stamp Fund as well as  
          accounting of those expenditures. Specifically this bill would:
           Extend the sunset of the Bay-Delta Stamp to January 1, 2012.
           Require DFG, in consultation with the advisory committee, to  
            develop a spending plan by January 31, 2010, and to provide a  
            copy of the plan to the Legislature. 
           Require greater tracking and accountability of fund  
            expenditures.
           Require DFG to correct inappropriate previous expenditures of  
            the Bay-Delta Stamp Fund.
           Adds administrative expenditures to the information that must  
            be included in DFG's annual report.
           Require DFG to put information on the funded projects on their  
            website.
           Require DFG to establish a grant program that reflects  
            spending priorities for the fund as determined with the  
            advisory committee. The advisory committee will also be  
            required to review all applications and to provide  
            recommendations to DFG.

          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. 

           Technical amendment:  The committee may wish to adopt an  
          amendment that would not limit the time that the advisory  
          committee receives to review a draft public solicitation notice.
          
          SUGGESTED AMENDMENTS 
               AMENDMENT 1  
                On page 4, line 8, delete "10 days" and insert:
          an opportunity

          SUPPORT
          Allied Fishing Groups (Sponsor)
          California Sport Fishing Protection Alliance
          
          OPPOSITION
          None Received