BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           1052 (Caballero)
          
          Hearing Date:  08/24/2009           Amended: 08/20/2009     
          Consultant:  Brendan McCarthy   Policy Vote: NR&W 9-1














































          AB 1052 (Caballero)
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          _________________________________________________________________ 
          ____
          BILL SUMMARY: This bill makes a variety of changes to the  
          Department of Fish and Game's procedures for spending funds  
          derived from Bay-Delta Sport Fishing Enhancement Stamp fees.
          _________________________________________________________________ 
          ____
                            Fiscal Impact (in thousands)

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

          * 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.

          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  







          AB 1052 (Caballero)
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          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 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 is allowed 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.