BILL ANALYSIS                                                                                                                                                                                                    �



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          ASSEMBLY THIRD READING
          AB 1886 (Chesbro)
          As Amended  April 11, 2012
          Majority vote 

           WATER, PARKS & WILDLIFE          8-4                
          APPROPRIATIONS      12-4        
          
           ----------------------------------------------------------------- 
          |Ayes:|Huffman, Campos, Fong,    |Ayes:|Fuentes, Blumenfield,     |
          |     |Gatto, Roger Hern�ndez,   |     |Bradford, Charles         |
          |     |Hueso, Lara, Yamada       |     |Calderon, Campos, Davis,  |
          |     |                          |     |Gatto, Hall, Hill, Lara,  |
          |     |                          |     |Mitchell, Solorio         |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Halderman, Bill           |Nays:|Donnelly, Nielsen, Norby, |
          |     |Berryhill,                |     |Wagner                    |
          |     |Beth Gaines, Jones        |     |                          |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Increases the regulatory fees for aquaculture 
          facilities and expands the duties of the aquaculture program 
          coordinator position within the Department of Fish and Game 
          (DFG).  Specifically,  this bill  :

          1)Expands the duties of the existing aquaculture coordinator 
            position within DFG to include coordinating with the 
            Aquaculture Development Committee, and provides that the 
            duties of the aquaculture coordinator are to be performed as 
            part of DFG's aquaculture program.

          2)Increases the registration, renewal, surcharge and penalty 
            base fees for aquaculture facilities, effective 2013, as 
            follows:

               a)     Increases the base registration fee from $549 to 
                 $800;

               b)     Increases the base registration renewal fee from 
                 $250 to $500;

               c)     Increases the registration surcharge for facilities 
                 with gross annual sales of over $25,000 from $412 to 








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                 $600; and,

               d)     Increases the penalty for engaging in aquaculture 
                 without paying registration fees from $50 to $150.

          3)Requires DFG to provide an accounting of the aquaculture 
            program account balance and expenditures upon request of the 
            Aquaculture Development Committee or the Joint Committee on 
            Fisheries and Aquaculture, and requires DFG to provide a 
            report to the Legislature by February 1, 2017, regarding the 
            aquaculture coordinator program as specified.

          4)Requires that revenues received from the payment of 
            aquaculture registration fees and surcharges be used only for 
            costs incurred in the administration and enforcement of the 
            program.

          5)Sunsets the fee increases authorized by this bill after five 
            years, effective January 1, 2018, after which time the fees 
            would revert to existing levels unless a later enacted statute 
            continues the fee increases in effect. 


           EXISTING LAW  :

          1)Requires the owner of an aquaculture facility to register 
            annually with DFG and provide specified information regarding 
            the aquaculture operation, and to pay a registration fee or 
            registration renewal fee.  Makes it unlawful to conduct 
            aquaculture operations unless registered.

          2)Authorizes DFG to review information provided in aquaculture 
            registrations to ensure the operation will not be detrimental 
            to native wildlife, and requires DFG to impose fees for the 
            costs of reviewing registrations.  The amount of the 
            registration fees are set in statute and are required to be 
            adjusted annually for inflation.

          3)Authorizes DFG to prohibit an aquaculture operation or the 
            culturing of any species at any location where it is 
            determined it would be detrimental to adjacent native 
            wildlife.

          4)Provides for an aquaculture coordinator position within DFG 








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            whose duties include promoting understanding of aquaculture, 
            proposing methods of reducing the negative impact of public 
            regulation on the aquaculture industry, and providing 
            information on regulatory compliance to various sectors of the 
            aquaculture industry.

          5)Establishes the amount of fees in statute for registration and 
            renewal of aquaculture facilities and surcharges, and requires 
            those fees to be adjusted by DFG annually based on changes in 
            the Implicit Price Deflator.  The current statutory base fees 
            are $549 for registration, $275 for renewals, and $412 
            surcharge for larger aquaculture facilities.  With annual 
            adjustments, the 2012 fees are effectively $736 for 
            registration, $372.25 for renewal, and $554.25 for the 
            surcharge.    

          FISCAL EFFECT  :  According to the Assembly Appropriations 
          Committee, 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)); and absorbable annual costs to DFG for its 
          aquaculture coordinator to coordinate with the Aquaculture 
          Development Committee (FGPF).

           COMMENTS  :  This bill increases aquaculture registration fees, 
          clarifies that the aquaculture coordinator position at DFG is 
          part of DFG's aquaculture program, requires an annual accounting 
          of account balances and expenditures, and requires a report to 
          the Legislature after four years.  The fee increases are subject 
          to a five year sunset, after which time the fees would revert to 
          current fee levels.  The author notes that DFG relates to the 
          aquaculture industry as both a regulator and a lead agency.  The 
          aquaculture industry, which is the sponsor of this bill, 
          indicates its members are willing to pay increased fees to 
          assist DFG in offsetting DFG's costs for the services that the 
          Aquaculture Coordinator provides for the industry and to ensure 
          that funds are efficiently spent and accounted for.  Examples of 
          the services the industry wants DFG to provide to meet industry 
          needs include but are not limited to a Programmatic 
          Environmental Impact Report for Coastal Marine Aquaculture, 
          state land leases for aquaculture, and private stocking permits.

          The aquaculture coordinator position at DFG, whose function it 








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          is to assist the aquaculture industry with regulatory 
          compliance, has been vacant for about one year.  A search for 
          candidates to fill the position is currently under way.  This 
          bill, among other things, adds to the aquaculture coordinator's 
          duties the duty to coordinate with the Aquaculture Development 
          Committee.  The Aquaculture Development Committee is an advisory 
          committee which consists of 12 members appointed by the DFG 
          director representing all sectors of the aquaculture industry.  
          The committee also includes one member from DFG, two members 
          from the University of California, and one member each from the 
          Department of Food and Agriculture, the California Coastal 
          Commission, the State Lands Commission, the State Water 
          Resources Control Board, the State Department of Health 
          Services, and the Joint Legislative Committee on Fisheries and 
          Aquaculture.


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


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