BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           1052 (Caballero)
          
          Hearing Date:  08/17/2009           Amended: 08/17/2009
                                          Proposed to be amended
          Consultant:  Brendan McCarthy   Policy Vote: NR&W 9-1













































          AB 1052 (Caballero)
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          _________________________________________________________________ 
          ____
          BILL SUMMARY: This bill extends the sunset of the Bay-Delta  
          Sport Fishing Enhancement Stamp until 2013, but provides that it  
          is not necessary to purchase a stamp in 2010 and 2011. The bill  
          also makes a variety of changes to the Department of Fish and  
          Game's procedures for spending funds derived from stamp fees.
          _________________________________________________________________ 
          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2009-10      2010-11       2011-12     Fund
           
          Fish and Game          Absorbable within existing  
          resourcesSpecial *
             implementation

          Fee revenues           ($800)     ($1,600)    ($800)    Special  
          *

          * Fish and Game Preservation Fund.
          _________________________________________________________________ 
          ____

          STAFF COMMENTS: 
          
          Current law requires any person fishing in waters of the San  
          Francisco Bay Delta and the waters of the main stem of the  
          Sacramento and San Joaquin Rivers to hold a valid fishing  
          license with a Bay-Delta Sport Fishing Enhancement Stamp  
          (Bay-Delta Stamp). Currently, the Bay-Delta Stamp costs anglers  
          $6.30 per year. In 2007-08, Bay-Delta Stamp revenues were about  
          $1.6 million. Proceeds from the sale of the Bay-Delta Stamp are  
          deposited in the Sport Fish Enhancement Stamp Account (Account)  
          of the Fish and Game Preservation Fund and are to be used for  
          projects and activities that will provide a benefit to the  
          primary Bay-Delta sport fisheries, including salmon, surf perch,  
          steelhead trout, striped bass, sturgeon, and black bass. Current  
          law establishes an Advisory Committee, consisting of nine  
          members of the public selected by the Director of Fish and Game  
          from a list of candidates selected by anglers. The Advisory  
          Committee is charged with recommending projects to the  
          Department, to be funded with Bay-Delta Stamp proceeds. The  
          Bay-Delta Stamp is set to sunset on January 1, 2010.








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          In 2008, the Bureau of State Audits found that the Department  
          had been slow in spending funds from the Bay-Delta Stamp. As a  
          result, the Account had built up a fund balance of about $7  
          million. (The Bay-Delta Stamp generates about $1.6 million per  
          year in revenues. The Department has about $2.5 million in  
          spending authority in the current year. At the end of 2009-10,  
          the Department estimates the fund balance will be about $5  
          million.) In addition, the audit found that the Department's  
          accounting of funds in the Account was inadequate and  
          inaccurate. The audit made a series of recommendations to  
          improve accountability for use of the funds in the Account.

          This bill extends the sunset of the Bay-Delta Stamp to January  
          2013. However, due to the large fund balance, the bill also  
          provides that the purchase of a Bay-Delta Stamp shall not be  
          required from January 1, 2010 to January 1, 2012.

          The bill also sets out revised procedures for the Department and  
          the Advisory Committee to oversee the use of funds in the  
          Account. Specifically, the bill requires the Department, in  
          consultation with the Advisory Committee, to develop a spending  
          plan for funds in the Account. The bill directs the Department,  
          in consultation with the Advisory Committee, to determine  
          priority areas for funding and requires the Department to share  
          specific information on grant applications and grant funding  
          with the Advisory Committee. The bill requires the Department to  
          make information available to the Advisory Committee and the  
          public on the uses of funds from the Account. The bill also sets  
          out procedures for the Department to better track the use of  
          funds in the Account. Many of these changes reflect  
          recommendations made by the Bureau of State Audits.

          The Department indicates that the costs to comply with the new  
          procedures in the bill can be accomplished within existing  
          resources. Because the current balance in the Account is derived  
          from fishing license fees, those funds can not be used for  
          non-fish and game purposes. Even if the current Bay-Delta Stamp  
          program were to sunset, the Department would still be obligated  
          to use the remaining fund balance for sport fishing related  
          expenditures. Therefore there is no additional cost to continue  
          funding sport fishing related projects from the existing fund  
          balance.
          
          As proposed to be amended, the bill would revert to the July  
          14th version of the bill. These amendments would eliminate the  







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          fee holiday and extend the sunset of the fee until January 2012.