BILL ANALYSIS
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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: SB 889 HEARING DATE: March 23, 2010
AUTHOR: Aanestad URGENCY: Yes
VERSION: As introduced CONSULTANT: Katharine Moore
DUAL REFERRAL: No FISCAL: Yes
SUBJECT: Vacuum or suction dredge equipment: refund for permits
BACKGROUND AND EXISTING LAW
Suction dredge mining uses a vacuum system to pull gravel and
other materials up from a river, stream or lake bed. On-board
equipment is used to process the collected matter and remove any
trace amounts of gold before exhausting the remainder back into
the water. A permit is required to operate suction dredge mining
equipment in California. In the last decade, the California
Department of Fish and Game (DFG) sold approximately 3,200
resident and additional non-resident suction dredge mining
permits annually. In 2009, the permit for state residents cost
$47, increasing to $185.25 for non-residents.
Recently, lawsuits and legislative action have required
environmental review of suction dredge mining. On July 9, 2009,
a court issued a preliminary injunction restricting DFG from
issuing suction dredge mining permits (Leeon Hillman et al., vs.
California Department of Fish and Game et al ., Alameda Co.
Superior Ct., No. RG09- 434444) until the litigation was resolved
or the court issued a new order . On August 6, 2009, suction
dredge mining was suspended in any California river, stream or
lake when SB 670 (Wiggins, c.62, Statutes of 2009) became law.
There are limited exceptions to the mining ban and suction
dredging operations for regular maintenance of energy or water
supply management infrastructure, flood control or navigational
purposes are still allowed. Suction dredge mining will remain
prohibited until DFG completes an environmental impact report
and updates its regulations, and the regulations take effect.
DFG estimates the review will be completed in late summer of
2011.
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DFG issued 3,643 suction dredge mining permits in 2009. However,
no suction dredge mining was allowed after August 6. Current law
does not allow DFG to provide refunds to permit holders. Suction
dredge permit fees are deposited in the Fish and Game
Preservation Fund where they are used to support DFG functions.
DFG does not specifically track employee time spent on suction
dredge mining. The department estimates its costs for
enforcement and permit processing at approximately $50,000 and
$6,000, respectively, of the $175,000 collected in permit fees
in 2008.
PROPOSED LAW
This bill directs DFG to refund upon request the 2009 permit fee
paid by the suction dredge mining permit holder.
ARGUMENTS IN SUPPORT
According to the author, "the bill provides relief for the
miners who bought their permits on the assumption they would be
valid throughout the year. SB 889 is an issue of fairness to
allow those miners to be reimbursed, upon request, for the cost
of their prohibited permit."
ARGUMENTS IN OPPOSITION
Opponents of the bill "are supportive of providing miners
pro-rated refunds of their permit fees but do not believe that
new legislation is needed for this purpose. Instead, the
Governor could direct DFG to provided refunds in the same manner
as he did in 2008 and 2009 when the commercial salmon fishing
seasons were cancelled." The opponents indicate they would
support this approach.
COMMENTS
Has the state refunded license fees in the past? In general,
permit and license fees paid to DFG are not refundable. However,
permit refunds have been given in the past to the commercial
salmon fishery following the closure of the 2008 - 2009 and 2009
- 2010 seasons. Governor Schwarzenegger specifically directed
DFG to refund the commercial salmon fishing licenses purchased
for those seasons prior to the closure of the salmon fishing
season in his April 10, 2008 and April 21, 2009 proclamations
declaring states of emergency. Further, DFG was specifically
directed not to deduct any administrative charges prior to
refunding the license fees.
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It is not clear that the Governor had or has the emergency
authority to order the commercial salmon fishing license
refunds, but his order was not challenged.
Cost of refund: DFG estimates passage of SB 889 as introduced
will cost approximately $270,000 ($253,000 in permit refunds,
and the remainder in administrative costs).
Should the Legislature pro-rate the refund? The commercial
salmon fishing licenses were refunded in full, and, unlike the
dredgers, these licenses were purchased before the start of the
cancelled seasons. Prior to 2009, a suction dredge mining permit
purchased at any time was valid for the remainder of the
calendar year. A suction dredge miner with a 2009 permit issued
before the July 9 injunction had the opportunity to dredge prior
to August 6. DFG has the date of issue readily available for
approximately 83% of the permits. Of the remaining 17%, at least
some - but not all - have the issue date on file. DFG would have
to manually examine each of this sub-set of applications at
additional expense. The ban on mining took effect with
approximately 40% of 2009 remaining. According to the New
49'ers, mining can occur throughout the year in different parts
of California, although anecdotally the most mining activity is
in August and September. DFG was unable to offer quantitative
information on the seasonality of mining activity on which to
base a prorata refund. Pro-rating the refund may cause DFG to
incur additional administrative expense beyond that included
above.
Other issues : The author has assured the committee that the
bill will deal only with the issue of refunds. The committee, of
course, would request that the bill return for review if other
amendments are made. The author is aware of this circumstance.
SUPPORT
The New 49'ers
Siskiyou County Board of Supervisors
OPPOSITION
Friends of the River
Klamath Tribe of California
Klamath Riverkeeper
Pacific Federation of Fishermen's Associations
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