BILL ANALYSIS �
SENATE TRANSPORTATION & HOUSING COMMITTEE BILL NO: ab 2443
SENATOR MARK DESAULNIER, CHAIRMAN AUTHOR: williams
VERSION: 6/19/12
Analysis by: Carrie Cornwell FISCAL: yes
Hearing date: July 3, 2012
SUBJECT:
Vessel registration fee surcharge: Quagga and Zebra Mussel
Infestation Prevention Program
DESCRIPTION:
This bill adds a surcharge of $10 onto vessel registration fees
in California to fund a program to prevent the infestation of
the state's waters with invasive mussel species.
ANALYSIS:
It is illegal to operate a vessel on the waters of this state
without valid documentation, which can be either a valid U.S.
Bureau of Customs-issued marine document or a State of
California-issued number. To receive a number, owners of
vessels apply and pay a fee (typically $49 for an original
application) to the Department of Motor Vehicles (DMV). DMV
then issues a certificate of number to the owner, who must
display the number on both sides of the forward half of the
vessel. The owner must renew the certificate every two years
and pay a renewal fee of $20 in a process akin to a vehicle
registration. The owner gets both an updated set of stickers to
affix to the two sides of his or her vessel plus a registration
card.
Existing law makes it illegal to possess or transport dreissenid
(e.g., Quagga and Zebra) mussels and authorizes the Department
of Fish and Game to inspect vessels, including those traveling
on trailers on the state's roads, for these mussels. Fish and
Game inspectors may impound vessels on which they find the
mussels. Fish and Game may also inspect waterways and may close
to vessels those waterways where its inspectors discover these
mussels. Existing law also directs water reservoir operators
that allow recreational activities on their reservoirs to
develop and implement a program to prevent the introduction of
dreissenid mussels.
AB 2443 (WILLIAMS) Page 2
This bill :
1.Declares the intent of the Legislature that the fee this bill
imposes shall not exceed the cumulative reasonable regulatory
costs incident to performing investigations and inspections
necessary to prevent quagga and zebra mussel infestation.
2.Imposes a quagga and zebra mussel infestation prevention fee
on original and renewal vessel registrations. The bill
specifies that the fee shall be not more than $20 for every
two year registration period and shall fund, upon legislative
appropriation, the following:
DMV's reasonable costs, not to exceed three percent of
total revenues, for collection and administration of the
fee.
The Department of Boating and Waterways' reasonable
costs, not to exceed three percent of total revenues, in
determining the amount of the fee plus adopting regulations
and administering the associated grant program.
The Department of Fish and Game's reasonable costs, not
to exceed 15 percent of the remaining revenues, to fund its
dreissenid mussel infestation prevention plan.
The Department of Boating and Waterways' grant program,
which shall receive at least 85% of the remainder, which
shall provide grants to entities that operate water
reservoirs where recreational activities are allowed.
These grants shall pay the costs to implement a mussel
infestation prevention plan that is consistent with the
requirements on reservoir operators in existing law. The
bill directs the department to adopt emergency regulations
to create the grant program and to set priorities for the
grant program that are consistent with existing state law,
specified state guidebooks, and relevant management plans.
1.Directs the Department of Boating and Waterways to set the
exact amount of this fee after creating and consulting with a
technical advisory group consisting of recreational boating
representatives, reservoir operators, and other interested
persons.
2.Exempts from the fee vessels that operate exclusively in
AB 2443 (WILLIAMS) Page 3
marine waters.
3.Directs DMV to collect the fee with original and renewal
vessel registrations and to deposit the revenues into the
Harbors and Watercraft Revolving Fund.
COMMENTS:
1.Purpose . The author introduced this bill to address a severe
lack of funding for efforts to prevent the spread of quagga
and zebra mussels that threatens local water supply, flood
control, and aquatic recreation facilities across the state.
This bill would help offset local government and state agency
costs by establishing a new source of revenue to help protect
California's vulnerable waters from quagga and zebra mussel
infestation.
Supporters emphasize the need for continued monitoring and
inspection to prevent the spread of zebra and quagga mussels.
The lack of a statewide revenue source has impeded the ability
of California to develop a comprehensive approach to
protecting water bodies and hydropower facilities from the
mussels. Supporters also state that current funding is
sporadic and subject to cancellation as agencies undergo
budget cuts. They cite the funding source in this bill as a
practical, cost-reasonable solution that can help protect
California's lakes and rivers.
2.The spread of dreissenid mussels . Two species of dreissenid
mussels currently exist in California and the U.S., the zebra
mussel and the quagga mussel, both of which are native to
Eastern Europe and Western Asia and were first discovered in
the Great Lakes in the late 1980s. Since their first
introduction, both species have spread to lakes and rivers in
27 states and have caused billions of dollars in damage.
Dreissenid mussels pose a threat because once established in
freshwater, they can latch onto pipes, valves, screens,
irrigation canals, and gates in quantities sufficient to
severely impede the movement of water and the operation of
critical water management infrastructure. In addition, their
feeding patterns disrupt the ecological balance of a water
body. Both species are prolific breeders, can spread rapidly,
and can adapt to a wide variety of aquatic environments. The
mussels most commonly move from one body of water to another
by attaching to boats and can survive for a week or longer out
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of water.
Currently dreissenid mussels are found in 25 bodies of
freshwater in California, primarily in Southern California.
The Department of Fish and Game reports that, while expensive,
it is possible to eradicate low-density populations of
dreissenid mussels. It is, however, currently not possible to
eradicate an established population. Preventing the further
spread of dreissenid mussels in California is much more cost
effective than controlling an established population.
3.Arguments in opposition . Opponents agree that California must
address the very serious problem of invasive mussel
infestation. They contend, however, that boaters already
contribute more than their fair share of funds to both
Department of Fish and Game and Department of Food and
Agriculture pest eradication programs through boater gas tax
dollars, vessel registration fees, and principal and interest
paid on loans for boating infrastructure, all of which flow
into the Harbors and Watercraft Revolving Fund. Rather than
the additional assessment in this bill, the opponents indicate
they would not oppose budget allocations from that fund, and
if it is insufficient, they recommend that other sources of
revenue be sought.
4.Cap on DMV costs of administration . This bill provides that
DMV, upon legislative appropriation, may receive up to three
percent of fee revenues to pay its associated collection and
administrative costs. Typically, legislation requiring DMV to
collect fees permits DMV to deduct its necessary and
reasonable costs without an arbitrary cap and prior to
remitting the funds to the designated fund in state
government. (See for example AB 1404 �Judiciary Committee]
also on today's calendar.) Requiring DMV to collect a fee,
but not paying the full costs of that collection and related
administrative activities, would transfer those collection
costs onto the state's motor vehicle owners, as DMV is fully
fee supported, primarily through the basic motor vehicle
registration fee. The committee may wish to delete the 3% cap
on DMV's collection costs and permit DMV to deduct its costs
prior to transmitting the funds to the Harbors and Watercraft
Revolving Fund.
5.Only freshwater . The bill exempts from payment of the fee it
imposes those vessels used exclusively in marine waters. It
is unclear how DMV when registering a boat would know where
AB 2443 (WILLIAMS) Page 5
the vessel will travel. DMV could include a check-off on its
application to register the vessel and then show on that
vessel's registration card some indication that the owner has
not paid the fee because the owner will use the vessel solely
in marine waters. This would be an honor system, under which
vessel owners choose to pay the fee rather than check a box
that the vessel will be used exclusively in marine waters.
6.Proposition 26 . Proposition 26, which amended the California
Constitution in November 2010, requires that any "change in
statute which results in a taxpayer paying a higher tax must
be imposed by an act passed by not less than two-thirds of all
members elected to each of the two houses of the Legislature."
The proposition, however, defined several charges as not
taxes, including a "charge imposed for the reasonable
regulatory costs to the State incident to issuing licenses and
permits, performing investigations, inspections, and audits, ?
and the administrative enforcement and adjudication thereof."
Legislative Counsel has designated this bill a majority-vote
measure because counsel believes the fee the bill imposes is
such a charge.
7.Technical amendment . On page 5, line 8, delete "Games" and
insert "Game"
8.Committee of second referral . The Rules Committee referred
this bill to the Natural Resources and Water Committee and to
the Transportation and Housing Committee. This bill passed
that committee on June 26 by a 6 to 1 vote. The Natural
Resources and Water Committee's analysis and hearing of the
bill dealt primarily with provisions establishing the grant
program to stop the spread of these invasive mussel species
and left the DMV administrative provisions for review in this
committee.
Assembly Votes:
Floor: 52 - 25
Appr: 12 - 5
WP&W: 7 - 3
POSITIONS: (Communicated to the committee before noon on
Wednesday, June 27,
2012)
SUPPORT: Monterey County (sponsor)
AB 2443 (WILLIAMS) Page 6
Santa Barbara County (sponsor)
San Luis Obispo County (sponsor)
Association of California Water Agencies
California Agricultural Commissioners and Sealers
Association
California Municipal Utilities Association
Calleguas Municipal Water district
Contra Costa Water District
East Bay Municipal Utilities District
Goleta Water District
Humboldt Bay Municipal Water District
Metropolitan Water District of Southern
California
Pacific Gas and Electric Company
Santa Clara County Board of Supervisors
Santa Clara Valley Water District
OPPOSED: California Association of Harbor Masters and Port
Captains
California Marine Parks and Harbor Association
California Yacht Brokers Association
Marina Recreation Association
Northern California Marine Recreation Association
Recreational Boaters of California
Western Boaters Safety Group