BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                          SB 470 (Evans)
          
          Hearing Date: 05/26/2011        Amended: 04/26/2011
          Consultant: Brendan McCarthy    Policy Vote: NR&W 7-0
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          ____
          BILL SUMMARY: SB 470 extends the sunset of a requirement that 
          commercial salmon fishermen purchase a commercial salmon stamp. 
          The bill also extends the sunset of code provisions authorizing 
          the expenditure of commercial salmon stamp revenues.
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          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2011-12      2012-13       2013-14     Fund
           
          Future Stamp revenues  Between ($200) and ($500) per yearSpecial 
          *

          Future restoration and Between $170 and $425 per year   Special 
          *
             hatchery operations

          Allowed administrative costs      Between $30 and $75 per 
          yearSpecial *

          Administrative subsidy from       Up to $45 per year    Special 
          *
             other accounts

          * Fish and Game Preservation Fund.
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          STAFF COMMENTS: SUSPENSE FILE. AS PROPOSED TO BE AMENDED.
          
          Under current law, commercial salmon fishermen pay for a 
          commercial salmon stamp. The commercial salmon stamp cost is $85 
          plus an additional fee determined by a formula based on the 
          previous year's total industry catch. The maximum fee is $260. 
          The 2011-12 commercial salmon stamp costs $87.55 (which reflects 
          last year's very poor commercial salmon season).









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          Fee revenues are deposited into the Commercial Salmon Stamp 
          Account within the Fish and Game Preservation Fund. These funds 
          are continuously appropriated to the Department of Fish and Game 
          to fund programs to enhance commercial salmon fishing, including 
          habitat restoration projects and salmon hatchery operations. 
          Current law caps administrative expenditures at 3.3 percent of 
          total expenditures. Current law creates a Commercial Salmon 
          Trollers Advisory Committee to recommend projects for funding 
          from the program. 

          These statutory requirements sunset on January 1, 2012.

          SB 470 extends the sunset date of these provisions to January 1, 
          2014.

          Because funds in the Commercial Salmon Stamp Account are 
          continuously appropriated, this bill makes an appropriation.

          Staff notes that this bill has been keyed as a tax increase, 
          under Section 3, Article XIII A of the California Constitution.

          In recent years, due to poor commercial salmon seasons, revenues 
          into the Commercial Salmon Stamp Account have been about $50,000 
          per year. If the commercial salmon harvest returns to more 
          typical levels, revenues into the fund would likely be between 
          $200,000 and $500,000 per year.

          Current law, as proposed to be extended by this bill, caps 
          administrative costs for this program at 3.3 percent of 
          expenditures. Staff estimates that actual administrative costs, 
          once revenues return to normal levels, are likely to exceed this 
          administrative cap by $50,000 to $70,000 per year. This will 
          require the Department to subsidize the administration of this 
          program with other funds, such as license revenues from other 
          hunters and anglers.


          SB 778 (Wiggins, 2009) would have replaced the current fee 
          structure with a flat $350 commercial salmon stamp. That bill 
          was amended to address an unrelated issue on the Assembly floor.

          
          The proposed Committee amendments raise the allowed 
          administrative cost to 15 percent of expenditures, delete the 








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          continuous appropriation, and require additional reporting on 
          expenditures by the Department of Fish and Game.