BILL ANALYSIS                                                                                                                                                                                                    �



                                                                      



           ------------------------------------------------------------ 
          |SENATE RULES COMMITTEE            |                  AB 2402|
          |Office of Senate Floor Analyses   |                         |
          |1020 N Street, Suite 524          |                         |
          |(916) 651-1520         Fax: (916) |                         |
          |327-4478                          |                         |
           ------------------------------------------------------------ 
           
                                         
                                 THIRD READING


          Bill No:  AB 2402
          Author:   Huffman (D)
          Amended:  8/21/12 in Senate
          Vote:     21

           
           SENATE NATURAL RESOURCES AND WATER COMM.  :  5-3, 6/26/12
          AYES:  Pavley, Evans, Kehoe, Simitian, Wolk
          NOES:  La Malfa, Cannella, Fuller
          NO VOTE RECORDED:  Padilla
           
          SENATE APPROPRIATIONS COMMITTEE  :  5-2, 8/16/12
          AYES:  Kehoe, Alquist, Lieu, Price, Steinberg
          NOES:  Walters, Dutton

           ASSEMBLY FLOOR  :  50-27, 5/30/12 - See last page for vote


            SUBJECT  :    Department of Fish and Game:  Fish and Game 
                      Commission

           SOURCE  :     Author


           DIGEST  :    This bill makes a number of changes to the 
          operations of the Department of Fish and Game (DFG) and the 
          Fish and Game Commission (FGC).

           ANALYSIS  :    Existing law establishes DFG and FGC and sets 
          forth the powers and duties of DFG and FGC.

          Under existing law, the changes in the Implicit Price 
          Deflator for State and Local Government Purchases of Goods 
                                                           CONTINUED





                                                               AB 2402
                                                                Page 
          2

          and Services is used as the index to determine an annual 
          rate of increase or decrease in the fees for licenses, 
          stamps, permits, and tags.  Under existing law, DFG issues 
          scientific collecting permits, lifetime hunting licenses, 
          guide licenses, abalone report cards, kelp harvester 
          licenses, and marine aquaria collector's permits, and 
          existing law establishes base fees for those entitlements, 
          adjusted annually pursuant to the index. 

          Existing law, except as expressly provided otherwise, makes 
          violations of the Fish and Game Code, or of any rule, 
          regulation, or order made or adopted under that code, a 
          misdemeanor. Existing law sets prescribed fines and 
          penalties for specified violations.

          Existing law requires, unless otherwise provided, that all 
          money collected under the provisions of the Fish and Game 
          Code and of any other law relating to the protection and 
          preservation of birds, mammals, fish, reptiles, or 
          amphibian be paid into the State Treasury to the credit of 
          the Fish and Game Preservation Fund.

          Existing law establishes specific accounts within the Fish 
          and Game Preservation Fund, including, but not limited to, 
          the Big Game Management Account, and DFG has established 
          other accounts within the fund.

          Existing law requires DFG to operate lands, or lands and 
          water, acquired for public shooting grounds, state marine 
          recreational management areas, or wildlife management areas 
          on a nonprofit basis (collectively, department-operated 
          lands).  Existing law states that multiple recreational use 
          of wildlife management areas is desirable and requires the 
          FGC to encourage multiple recreational use. Existing law 
          authorizes the FGC to determine and fix the amount of, and 
          authorizes DFG to collect, fees for any use privileges. 

          Existing law establishes the Fish and Game Mitigation and 
          Protection Endowment Principal Account in the Special 
          Deposit Fund, with money in the account available upon 
          appropriation by the Legislature.  Existing law also 
          establishes the Fish and Game Mitigation and Protection 
          Expendable Funds Account in that fund, with money in the 
          account continuously appropriated to DFG for specified 

                                                           CONTINUED





                                                               AB 2402
                                                                Page 
          3

          purposes.  DFG is authorized to deposit moneys in these 
          accounts for purposes that include mitigating adverse 
          biological impacts of a specific project, activity, spill, 
          or release, and protecting, conserving, restoring, 
          enhancing, managing, and maintaining fish, wildlife, native 
          plants, or their habitats.  Existing law requires the 
          Treasurer, at DFG's request, to transfer those funds from 
          the Pooled Money Investment Account to another account 
          within the State Treasury system to increase earnings over 
          time while providing adequate liquidity.  Existing law also 
          authorizes the department to retain investment advisers to 
          develop and maintain the investment strategy for these 
          accounts. 

          Existing law, the Uniform Prudent Management of 
          Institutional Funds Act (UPMIFA) governs the management and 
          use of endowed institutional funds held by charitable 
          institutions.  UPMIFA, among other things, provides that a 
          rebuttable presumption of imprudence is created by the 
          appropriation for expenditure in any year of an amount 
          greater than 7% of the fair market value of an endowment 
          fund, calculated as prescribed.

          Existing law establishes the Renewable Energy Resources 
          Development Fee Trust Fund as a continuously appropriated 
          fund in the State Treasury to serve, and be managed, as an 
          optional, voluntary method for developers or owners of 
          eligible projects, as defined, to deposit fees sufficient 
          to complete mitigation actions established by the 
          department and thereby meet their requirements pursuant to 
          CESA or the certification authority of the State Energy 
          Resources Conservation and Development Commission. Existing 
          law requires that a specified sum of money be transferred, 
          as a loan, from the Renewable Resource Trust Fund to the 
          Renewable Energy Resources Development Fee Trust Fund and 
          be repaid from the fund to the Renewable Resource Trust 
          Fund no later than December 31, 2012.

          This bill:

          1.Makes specified statements of policy relating to the use 
            of ecosystem-based management, adaptive management, and 
            credible science, as defined.


                                                           CONTINUED





                                                               AB 2402
                                                                Page 
          4

          2.Requires DFG and FGC seek to create, foster, and actively 
            participate in effective partnerships and collaborations 
            with other agencies and stakeholders to achieve shared 
            goals and to better integrate fish and wildlife resource 
            conservation and management with the natural resource 
            management responsibilities of other agencies.  DFG and 
            FGC are encouraged to participate in interagency 
            coordination processes that facilitate consistency and 
            efficiency in review of projects requiring multiple 
            permits, including, but not necessarily limited to, joint 
            state, federal, and local permit review teams that enable 
            early consultation with project applicants, and provide 
            improved sharing of data, information, tools, and science 
            to achieve better alignment of planning, policies, and 
            regulations across agencies.

          3.States the intent of the Legislature, to extend the 
            conservation benefits derived from investments made as 
            part of compensatory mitigation to public lands, and that 
            the department work with the Bureau of Land Management 
            and interested stakeholders to develop a viable solution 
            that will ensure durable mitigation and protection of 
            mitigation lands on federal lands in perpetuity.

          4.Renames DFG as the Department of Fish and Wildlife, and 
            makes related changes.  This bill prohibits existing 
            supplies, forms, insignias, signs, logos, uniforms, or 
            emblems from being destroyed or changed as a result of 
            changing the name of DFG, and would require their 
            continued use until exhausted or unserviceable.

          5.Authorizes DFG to enter into agreements to accept funds, 
            services, or to assist DFG in its efforts to secure 
            long-term private funding sources for purposes relating 
            to conservation programs, projects, and activities by 
            DFG, as specified.

          6.Requires DFG to, on or before January 1, 2016, prepare 
            and submit to the relevant policy and fiscal committees 
            of the Legislature a feasibility study report on an 
            electronic system to manage citations issued by fish and 
            game wardens, exchange information on citations with the 
            courts, and transfer data on court dispositions to the 
            Automated License Data System.  The requirement for 

                                                           CONTINUED





                                                               AB 2402
                                                                Page 
          5

            submitting a report shall become inoperative January 1, 
            2017.

          7.Provides that moneys collected or received from gifts or 
            bequests, or from municipal or county appropriations, or 
            donations for purposes relating to conservation programs, 
            projects, and activities by DFG are to be deposited in 
            the State Treasury to the credit of the Fish and Game 
            Preservation Fund and used for prescribed purposes.

          8.Requires the Augmented Deer Tags Account, Bighorn Sheep 
            Permit Account, and Wild Pig Account within the fund to 
            be consolidated and any remaining funds in these accounts 
            transferred to the Big Game Management Account.  This 
            bill requires DFG, after consultation with the Department 
            of Finance and the Legislative Analyst's Office, to 
            provide recommendations to the Legislature for 
            consolidation of additional dedicated accounts within the 
            fund if, in the determination of DFG, consolidation would 
            serve to reduce administrative costs to DFG and enhance 
            its ability to meet current needs, while still preserving 
            the stated purposes of the dedicated accounts.

          9.Requires, commencing January 1, 2015, the purchase of an 
            entry permit, as specified, for access to 
            department-managed lands for uses other than hunting and 
            fishing, except as provided. This makes the failure to 
            obtain a permit an infraction, as specified. 

           10.Authorizes DFG to invest or direct the investment of 
             the assets of these accounts through the purchase, 
             holding, or sale of any investment, financial 
             instrument, or financial transaction when prudent in the 
             informed opinion of DFG. This bill authorizes DFG to 
             contract with a person or entity, as specified, that has 
             demonstrated expertise in the management of diverse 
             investment portfolios.

           11.Requires DFG to hold, manage, and invest all moneys in 
             the Fish and Game Mitigation and Protection Endowment 
             Principal Account and the Fish and Game Mitigation and 
             Protection Expendable Funds Account consistent with the 
             management and investment principles set forth in 
             UPMIFA.  This bill also continuously appropriates to DFG 

                                                           CONTINUED





                                                               AB 2402
                                                                Page 
          6

             moneys in the Fish and Game Mitigation and Protection 
             Endowment Principal Account, subject to the limitations 
             imposed by the presumption described above.

           Background
           
          The Department of Fish and Game is responsible for managing 
          the state's fish and wildlife resources.  DFG licenses 
          hunters and anglers, enforces hunting and fishing 
          regulations, and manages wildlife refuges.  DFG also has 
          enforcement authority over other environmental protection 
          laws, such as the Endangered Species Act.

          In addition, FGC has responsibilities for adopting hunting 
          and fishing regulations and determining whether species 
          should be listed as threatened or endangered under the 
          Endangered Species Act.

           FISCAL EFFECT  :    Appropriation:  Yes   Fiscal Com.:  Yes   
          Local:  No

          According to the Senate Appropriations Committee, many of 
          the bill's provisions will have a fiscal impact, as 
          described below.  Unless otherwise specified, the costs 
          would be paid from the Fish and Game Preservation Fund.

           Renaming it the "Department of Fish and Wildlife" - DFG 
            is likely to incur costs to update information technology 
            systems to accommodate the change.  The costs will likely 
            range from $150,000 to $300,000. While the bill directs 
            DFG not to change or destroy existing supplies, 
            information technology systems (such as Department web 
            sites and email systems) will likely have to be upgraded 
            all at once, rather than over time as system maintenance 
            occurs.

           Establishing an independent science panel - DFG will 
            likely incur costs to provide staff support and pay 
            administrative costs. Those costs are likely to be 
            between $100,000 and $200,000 per year.

           Adjusting licensing fees - DFG will incur costs of about 
            $100,000 per year to adjust fees and update regulations. 
            Potential fee increases in revenues are unknown, and will 

                                                           CONTINUED





                                                               AB 2402
                                                                Page 
          7

            depend upon DFG's actual costs to issue licenses. There 
            is general consensus that DFG's programs to support 
            wildlife and enforce the law are underfunded. However, 
            any fee increases that would occur under this bill would 
            only be available to offset DFG's costs to issue licenses 
            and would not be available to more broadly support DFG's 
            mission.

           Development of a Strategic Plan - one-time staff costs up 
            to $200,000.

           Partnering with nonprofit organizations - the bill 
            authorizes DFG to partner with nonprofit organizations to 
            raise revenues for Department activities. The extent to 
            which this will increase revenues is unknown.
           Creation of an environmental crimes taskforce - ongoing 
            costs up to $100,000 per year to provide staff support.

           Disability payments to game wardens - unknown costs to 
            pay annual salary rather than disability payments to 
            injured game wardens. Under current law, most state 
            employees on short term disability leave receive 2/3 of 
            their monthly salary. This bill requires game wardens to 
            receive their full salary. The number of game wardens 
            impacted is unknown. In general, the bill will increase 
            disability payments by 1/3 over current law.

           Delayed loan repayment - one-time cost of $10 million 
            from the delay in a required repayment of a loan from the 
            Renewable Resources Trust Fund (General Fund) to the 
            Renewable Energy Resources Development Fee Trust Fund.

           SUPPORT :   (Unable to verify at time of writing)

          Audubon California
          Endangered Habitats League
          Ocean Conservancy
          PawPac
          The Nature Conservancy

           OPPOSITION  :    (Unable to verify at time of writing)

          Agricultural Council of California
          California Association of Recreational Fishing

                                                           CONTINUED





                                                               AB 2402
                                                                Page 
          8

          California Bean Shippers Association
          California Cattlemen's Association
          California Farm Bureau Federation
          California Grain and Feed Association
          California Lobster and Trap Fishermen
          California Pear Growers Association
          California Sea Urchin Commission
          California Seed Association
          California Wheat Growers Association
          Pacific Egg and Poultry Association
          Point Conception Ground Fishermen's Association
          Western Growers


           ASSEMBLY FLOOR  :  50-27, 5/30/12
          AYES:  Alejo, Allen, Ammiano, Atkins, Beall, Block, 
            Blumenfield, Bonilla, Bradford, Brownley, Buchanan, 
            Butler, Charles Calderon, Campos, Carter, Cedillo, 
            Chesbro, Dickinson, Eng, Feuer, Fong, Fuentes, Furutani, 
            Galgiani, Gatto, Gordon, Hall, Hayashi, Hill, Huber, 
            Hueso, Huffman, Lara, Bonnie Lowenthal, Ma, Mendoza, 
            Mitchell, Monning, Pan, Perea, V. Manuel P�rez, 
            Portantino, Skinner, Solorio, Swanson, Torres, 
            Wieckowski, Williams, Yamada, John A. P�rez
          NOES:  Achadjian, Bill Berryhill, Conway, Cook, Donnelly, 
            Beth Gaines, Garrick, Gorell, Grove, Hagman, Halderman, 
            Harkey, Roger Hern�ndez, Jeffries, Jones, Knight, Logue, 
            Mansoor, Miller, Morrell, Nestande, Nielsen, Norby, 
            Olsen, Silva, Smyth, Wagner
          NO VOTE RECORDED:  Davis, Fletcher, Valadao


          CTW:RM:kn  8/21/12   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

                                ****  END  ****








                                                           CONTINUED