BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 589
                                                                  Page  1

          SENATE THIRD READING
          SB 589 (Harman)
          As Amended July 13, 2009
          Majority vote

           SENATE VOTE  :34-0  
           
           WATER, PARKS & WILDLIFE       12-0                   
          APPROPRIATIONS      15-0        
           
           ----------------------------------------------------------------- 
          |Ayes:|Huffman, Fuller,          |Ayes:|De Leon, Nielsen,         |
          |     |Arambula,                 |     |Ammiano, Coto, Davis,     |
          |     |Tom Berryhill,            |     |Duvall, Fuentes, Hall,    |
          |     |Blumenfield, Caballero,   |     |Harkey, Miller, John A.   |
          |     |Fletcher, Krekorian,      |     |Perez, Skinner, Solorio,  |
          |     |Bonnie Lowenthal, John A. |     |Audra Strickland,         |
          |     |Perez, Salas, Yamada      |     |Torlakson                 |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Establishes an Upland Game Bird Account and a Big Game  
          Management Account within the Fish and Game Preservation Fund  
          (FGPF).  Specifically,  this bill  :

          1)Establishes an Upland Game Bird Account (UGBA) within the  
            FGPF, and requires that all funds from the sale of upland game  
            bird validations and stamps be deposited in the UGBA to permit  
            separate accountability for the funds.  Requires that funds in  
            the UGBA be available for expenditure upon appropriation of  
            the Legislature to the Department of Fish and Game (DFG)  
            solely for acquisitions, projects and programs to benefit  
            upland game bird species and related public hunting  
            opportunities and public outreach.

          2)Authorizes DFG to use funds in the UGBA for contracts or  
            grants to nonprofit organizations for habitat projects, and  
            for related reasonable administrative and enforcement costs.   
            Requires an advisory committee to review and provide comments  
            to DFG on proposed projects, and requires DFG to post  
            information on its Web site on all projects funded from the  
            UGBA.

          3)Establishes a Big Game Management Account (BGMA) within the  
            FGPF, and requires that all revenues from the sale of  








                                                                  SB 589
                                                                  Page  2

            antelope, elk, deer, wild pig, bear, and sheep tags be  
            deposited in the BGMA to permit separate accountability for  
            the funds.  Requires that funds in the BGMA be available for  
            expenditure upon appropriation of the Legislature to DFG  
            solely for acquisitions, projects and programs to benefit  
            antelope, elk, deer, wild pigs, bear, and sheep, and public  
            hunting opportunities and related public outreach.  

          4)Authorizes DFG to use funds in the BGMA for contracts or  
            grants to nonprofit organizations for related conservation  
            projects, and for related reasonable administrative and  
            enforcement costs.  Requires an advisory committee to review  
            and provide comments to DFG on proposed projects, and requires  
            DFG to post information on its Web site on all projects funded  
            from the BGMA.

          5)Requires DFG to maintain on its Web site, and to include in  
            the annual State Budget, a fund condition statement that  
            displays information on the condition of revenues and  
            expenditures both for dedicated and nondedicated revenue  
            sources.


           EXISTING LAW  :  

           1)Requires that revenues from the sale of upland game bird  
            stamps and hunting validations be deposited in the FGPF and  
            used to benefit upland game bird species and for related  
            hunting opportunities and public outreach.  Requires DFG to  
            maintain internal accountability necessary to ensure  
            restrictions and requirements for expenditure of these funds  
            are met.

          2)Requires that revenues from the sale of tags for the taking of  
            antelope, elk, deer, wild pig, bear and sheep be deposited in  
            the FGPF, and requires that revenues from the sales of tags  
            for each game species, with some exceptions, be used only for  
            programs related to that game species.  Revenues from the sale  
            of deer tags are continuously appropriated for deer herd  
            management.

          3)Requires the director of DFG and the Secretary of the  
            Resources Agency, with DFG's annual budget submittal to the  
            Legislature, to submit a report on the fund condition for all  
            accounts and subaccounts within the FGPF.








                                                                  SB 589
                                                                  Page  3


           FISCAL EFFECT  :   Minor, absorbable one-time costs to establish  
          UGBA and BGMA (FGPF).  Redirection of approximately $9.5 million  
          from the FGPF to the two accounts created by this bill, with  
          about $8 million to the BGMA and about $1.5 million to the UGBA.  
           Minor ongoing costs to DFG, likely less than $50,000 annually,  
          to administer funds and maintain required fund information on  
          its Web site (FGPF).

           COMMENTS  :  This bill establishes a new consolidated BGMA within  
          the FGPF.  Proceeds from the sale of tags to hunt antelope, elk,  
          deer, wild pig, bear and sheep would be deposited in the BGMA  
          and available, upon appropriation, for use for programs  
          benefiting these species.  Currently, revenue from each of these  
          game species tag sales is deposited in the FGPF, but the law  
          requires that revenues from the sale of tags for each species be  
          used for expenditures related only to that species.  The aim of  
          this bill is to both provide for better accounting by requiring  
          that the funds go into a consolidated BGMA, and to provide for  
          greater flexibility by allowing the pooling and use of these  
          revenues on projects of benefit to more than just one species.   
          This bill also authorizes DFG to use the funds for grants to  
          nonprofits for related conservation projects, and provides for  
          an advisory committee to advise DFG on projects.

          This bill also creates in statute an UGBA.  Current law requires  
          that DFG maintain internal accountability necessary to ensure  
          that funds from the sale of upland game bird stamps are used for  
          programs, projects and acquisitions to benefit upland game bird  
          species and related hunting opportunities, but does not  
          specifically require that the funds be kept in a separate UGBA.   
          This bill also authorizes funds in the account to be used for  
          grants to nonprofit organizations for habitat projects, and  
          provides for an advisory committee to advise DFG on projects.

          Finally, this bill builds on existing law, which currently  
          requires DFG to report on the fund condition of all accounts and  
          subaccounts within the FGPF, by also requiring that DFG maintain  
          on its Web site and in the annual State Budget, a condition  
          statement showing revenues and expenditures for both dedicated  
          and nondedicated accounts. 

          The author states that this bill has been introduced to provide  
          greater transparency, government accountability and oversight,  
          and to ensure that hunting license tag and stamp funds are used  








                                                                  SB 589
                                                                  Page  4

          to benefit game species and their habitats.   

          Supporters assert this bill will provide oversight to ensure  
          that revenues generated through hunting license tag and stamp  
          sales are spent for conservation of game species and their  
          habitats.  Supporters cite to a 2006 Legislative Analyst's  
          Office (LAO) report which found that DFG had been addressing  
          shortfalls in certain accounts within the FGPF by shifting funds  
          to other accounts, and as a result some dedicated funds were  
          being used for purposes not authorized by statute.  According to  
          the LAO, DFG has taken steps since that report was released to  
          address those problems and to provide better accounting.   
          Supporters believe this bill will help to more fully address  
          this problem over the long-term, and ensure the funds are used  
          for their intended purposes by requiring DFG to consult with  
          nonprofit groups on proposed projects, while also giving DFG  
          greater flexibility by consolidating funds and allowing revenues  
          to be used to benefit all game species. 

          The Department of Finance opposed the prior version of this bill  
          because it did not appear to allow account funds to be used for  
          indirect administration costs such as accounting and information  
          technology support.  The author has taken amendments to address  
          those concerns.  Born Free USA opposes this bill because fees  
          deposited into the accounts would be used for hunting  
          opportunities.


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


                                                                FN: 0001785