BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1886
                                                                  Page  1

          Date of Hearing:   April 25, 2012

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                   AB 1886 (Chesbro) - As Amended:  April 11, 2012 

          Policy Committee:                              Water, Parks and 
          Wildlife     Vote:                            8-4

          Urgency:     No                   State Mandated Local Program: 
          No     Reimbursable:              No

           SUMMARY  

          This bill adds to the duties of the aquaculture coordinator and 
          temporarily increases regulatory fees on the state's aquaculture 
          operators.  Specifically, this bill:

          1)Requires the Department of Fish and Game's (DFG) aquaculture 
            coordinator to coordinate with the Aquaculture Development 
            Committee-an existing committee of industry representatives, 
            state regulators and other stakeholders. 

          2)Increases, from $549 to $800, the base fee for registering an 
            aquaculture operation, and from $275 to $500, the base fee for 
            renewing such registration.  (The current registration fee is 
            $736 and the current renewal fee is $372.25, after adjusting 
            both fees for inflation.)

          3)Increases, from $412 to $600, the base registration surcharge 
            paid by aquaculture facilities with gross annual sales 
            exceeding $25,000.  (The current surcharge is $554.25, after 
            adjusting for inflation.)

          4)Increases, from $50 to $150, the base penalty for engaging in 
            aquaculture with paying registration or renewal fees.  (The 
            current penalty fee is $67.47, after adjusting for inflation.)

          5)Sunsets all fee, surcharge and penalty base increases as of 
            January 1, 2018, reverting them to their current bases.

          6)Limits the use of revenue from aquaculture charges to the cost 
            to administer and enforce DFG's aquaculture program.









                                                                  AB 1886
                                                                  Page  2

          7)Requires DFG to report, on or before February 1, 2017, to the 
            Legislature on the use of aquaculture program revenues and on 
            recommendations for the program.

           FISCAL EFFECT  

          1)Annual revenue increase of approximately $25,000 resulting 
            from increased fee and surcharge amounts paid by the state's 
            approximately 145 aquaculture operators with gross annual 
            sales greater than $25,000.  (Fish and Game Preservation Fund 
            (FGPF).)

          2)Absorbable annual costs to DFG for its aquaculture coordinator 
            to coordinate with the Aquaculture Development Committee.  
            (FGPF.) 

           

          COMMENTS  

           1)Rationale.   The California Aquaculture Association (sponsor) 
            intends this bill to increase funding available to DFG's 
            aquaculture coordinator so that the coordinator may better 
            regulate and permit the aquaculture industry.

           2)Background.    DFG regulates aquaculture operations and issues 
            permits for them.  Existing law requires aquaculture operators 
            to register annually with DFG and provides for registration 
            fees to cover DFG's regulatory and permitting costs. 

            DFG's aquaculture coordinator works with industry to help 
            ensure industry participants comply with regulatory 
            compliance.  The coordinator position currently is vacant.  
            Industry has complained that DFG has not used aquaculture fee 
            revenue efficiently or effectively; as a result, permitting 
            and other administrative duties critical to aquaculture 
            operations have lagged.  DFG describes its aquaculture program 
            as chronically underfunded.  While the department views as 
            beneficial the increased revenue that would result from this 
            bill, it concludes the amount would, nonetheless, be 
            insufficient to provide adequate program funding.

            DFG notes that the bill limits the department's use of revenue 
            from aquaculture charges to the cost to administer and enforce 
            DFG's aquaculture program.  DFG complains this restriction 








                                                                  AB 1886
                                                                  Page  3

            would prevent the department from funding important 
            aquaculture-related activities, such as research and 
            educational outreach.

           3)Support.   This bill is supported by the California Aquaculture 
            Association and other industry organizations.  

          4)There is no registered opposition to this bill.
           
           Analysis Prepared by  :    Jay Dickenson / APPR. / (916) 319-2081