BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 1148
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          Date of Hearing:   June 26, 2012

                   ASSEMBLY COMMITTEE ON WATER, PARKS AND WILDLIFE
                                Jared Huffman, Chair
                    SB 1148 (Pavley) - As Amended:  June 21, 2012

           SENATE VOTE  :   24-14
           
          SUBJECT  :   Fish and Game Commission: Department of Fish and Game

           SUMMARY  :   Makes numerous changes to implement policy 
          recommendations arising out of a Strategic Vision process for 
          the Department of Fish and Game (DFG) and the Fish and Game 
          Commission (FGC) in order to improve the effectiveness of these 
          entities in protecting and managing state fish and wildlife 
          resources.    Specifically,  this bill  : 

          1)States legislative findings and declarations regarding the 
            Strategic Vision process that was initiated as a result of the 
            passage of AB 2376 in 2010 and the need for reforms to improve 
            and enhance the capacity of DFG and FGC.  States legislative 
            intent to focus more of the work of the FGC on implementing 
            state hunting and fishing laws, and to enhance DFG's ability 
            to focus on managing its lands, its enforcement 
            responsibilities, its conservation programs, and enhancing the 
            scientific basis of DFG's decisions.

          2)Requires the Office of Planning & Research (OPR) to include 
            trustee agencies such as DFG in developing the state 
            Environmental Goals and Policy Report.

          3)Modifies and updates requirements related to sustainable 
            management of the state's hatchery program and native 
            fisheries, including the following:
               a)     States legislative findings and declarations 
                 regarding the role of hatcheries and the importance of 
                 genetic diversity in managing California native trout 
                 species, and that DFG seek to provide diverse 
                 recreational angling opportunities.
               b)     Requires DFG to make publicly available on its 
                 Internet website information on the inventory of 
                 California trout streams maintained by DFG.
               c)     Requires the FGC to produce a report every other 
                 year, instead of every year as required by existing law, 
                 regarding progress in implementing the state's wild trout 








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                 program.
               d)     Requires DFG every 5 years to update the state 
                 Strategic Plan for Trout Management adopted in 2003, and 
                 specifies objectives the plan shall be intended to 
                 ensure, including providing angling opportunities, 
                 conserving wild and native trout, and ensuring 
                 environmental sustainability and overall ecosystem 
                 watershed health.
               e)     Requires the plan to be guided by specified 
                 considerations including adaptive management of trout 
                 populations to be self-sustaining, increasing angler 
                 satisfaction, ensuring appropriate age distribution of 
                 wild trout, and establishing ecologically and 
                 environmentally sustainable hatchery and stocking 
                 practices for native and wild trout.
               f)     Requires DFG to prepare trout management plans 
                 consistent with the Strategic Plan for Trout Management, 
                 for all wild trout waters within three years following 
                 designation of a wild trout water by the FGC, and to 
                 update the plans every 5 years.
               g)     Requires priority to be given for stocking native 
                 hatchery-produced species where stocking is determined 
                 appropriate by DFG.  Requires hatchery-produced trout to 
                 be stocked to support sustainable angling opportunities 
                 and trout fishing access, including urban fisheries.
               h)     Requires all hatchery-produced California native 
                 trout to be marked and, with limited exceptions, requires 
                 all hatchery-produced fish to be sterile.
               i)     Requires DFG to establish a Hatchery Independent 
                 Science Panel, as specified.  Among other things, the 
                 panel shall provide DFG recommendations on adaptive 
                 management of stocking plans on a watershed basis, and on 
                 fisheries assessments for California native trout 
                 species.  Requires the Panel to submit an annual report.
               j)     States that the purpose of the Hatcheries and Inland 
                 Fisheries Fund (HIFF) is to promote angling opportunities 
                 and conserve wild and native trout, and to ensure 
                 thriving, self-sustaining native trout populations.
               aa)    Deletes outdated obsolete provisions relating to 
                 state hatchery production goals and clarifies that the 
                 state hatchery production goal is 2.75 pounds of released 
                 trout per sport fishing license sold, and that a 
                 predominant number of released fish are of catchable size 
                 or larger.
               bb)    States that the $2 million dedicated under existing 








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                 law to the Heritage and Wild Trout program from the HIFF 
                 may be used for development of trout management plans, 
                 and that up to 25% may be expended for watershed 
                 restoration projects, resource assessment and scientific 
                 inquiry.  Clarifies that funds from the HIFF may be used 
                 for development of the state Strategic Plan for Trout 
                 Management, and states that funding for Heritage Trout 
                 Waters is a priority for the HIFF.
               cc)    Authorizes DFG to obtain hatchery-produced fish from 
                 privately owned hatcheries to supplement state hatchery 
                 production if necessary to meet state targets for 
                 hatchery production, provided specified criteria are met, 
                 including that DFG has determined, following an 
                 inspection, that the private hatchery meets standards to 
                 prevent spread of disease and invasive species that are 
                 at least as stringent as those in effect at state 
                 hatcheries, and that the cost per pound does not exceed 
                 the cost to DFG of state produced hatchery fish.  
                 Requires DFG to report annually to the fiscal committees 
                 of the Legislature on implementation of these 
                 requirements.

          4)Establishes a program for review, approval and oversight of 
            mitigation and conservation banks as follows:
               a)     States legislative findings and declarations 
                 regarding the values and importance of conservation and 
                 mitigation banks in providing habitat lands which are 
                 managed to fulfill mitigation requirements, and the need 
                 for greater transparency to ensure mitigation 
                 requirements are fully met and to fund the regulatory 
                 costs of DFG related to mitigation and conservation 
                 banks.
               b)     Defines conservation bank, mitigation bank and 
                 related terms.
               c)     Requires any person seeking to establish a 
                 mitigation or conservation bank to submit a bank 
                 prospectus to DFG with a fee of $10,000 to cover the 
                 costs of DFG's review.  Specifies what must be included 
                 in a bank prospectus.  Establishes procedures for DFG's 
                 review and approval of a bank prospectus.
               d)     Authorizes any person interested in establishing a 
                 bank to submit an optional draft prospectus for review by 
                 DFG, accompanied by a fee of $1,500 to cover DFG's costs, 
                 with total review fees for a prospectus not to exceed 
                 $10,000.








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               e)     Once the bank prospectus is approved, allows the 
                 applicant to submit a bank agreement package to DFG.  
                 Requires the agreement package to be consistent with the 
                 prospectus and contain specified information including, 
                 among other things, a management plan, a bank closure 
                 plan, a draft conservation easement, a credit ledger and 
                 release schedule, an economic analysis of funding needed 
                 to support the bank in perpetuity, financial assurance 
                 estimates, and a phase 1 environmental assessment.  
                 Requires payment of a $25,000 fee to cover DFG's review.  
                 Establishes procedures for DFG's review and approval of 
                 the package, including authority for assessment of 
                 additional fees if necessary to cover DFG's review of new 
                 information or substantial changes.
               f)     Provides similar procedures and fee requirements for 
                 amendments to approved banks.
               g)     Prohibits any bank from being operative, vested or 
                 final, and prohibits any bank credits from being issued, 
                 until DFG has provided written approval of a bank and a 
                 conservation easement has been recorded on the site.
               h)     Requires DFG after a bank is approved to conduct 
                 compliance review and to establish and maintain a 
                 database, available on DFG's website or another federal 
                 or state government website that is linked to DFG's 
                 website, which allows bank sponsors to update information 
                 about mitigation and conservation banks.
               i)     Requires DFG to collect a fee of $250 per bank 
                 credit sold.
               j)     Requires DFG to annually adjust mitigation and 
                 conservation bank fees to reflect changes in the Implicit 
                 Price Deflator, and authorizes DFG to adopt guidelines 
                 and criteria to implement mitigation and conservation 
                 bank requirements.

          5)Makes the following changes relating to fees charged for fish 
            and game activities:
               a)     Requires FGC to adjust license, stamp, permit and 
                 tag fees for inflation based on changes in the Implicit 
                 Price Deflator, pursuant to Section 713 of the Fish and 
                 Game Code, at least every 5 years.
               b)     Requires, with regard to the fees for lifetime 
                 sportsmen's licenses, sport and commercial fishing 
                 licenses, commercial fish business and vessel licenses, 
                 hunting licenses, ocean sport fishing enhancement stamps, 
                 commercial fishing enhancement stamps, and trapping 








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                 licenses that the FGC adjust the license fees  to 
                 recover, but not exceed, all reasonable administrative 
                 and implementation costs of DFG and the FGC relating to 
                 those licenses. 
               c)     Requires DFG annually to adjust the fees for 
                 streambed alteration agreements to reflect changes in the 
                 Implicit Price Deflator, pursuant to Fish and Game Code 
                 Section 713.
               d)     Provides that except where the Fish and Game Code 
                 expressly prohibits the adjustment of statutorily imposed 
                 fees, the FGC may establish a fee or the amount thereof 
                 by regulation.  Requires that fees established by the FGC 
                 shall be in an amount sufficient to recover all 
                 reasonable administrative and implementation costs of the 
                 FGC and DFG relating to the program for which the fee is 
                 paid.  Authorizes the FGC to establish a fee structure to 
                 phase in fee adjustments to provide for full cost 
                 recovery within 5 years.
               e)     Clarifies the DFG's authority to establish and 
                 adjust fees for CEQA filings, streambed alteration 
                 agreements, and scientific collector permits.  Requires 
                 that the fees be sufficient to recover all reasonable 
                 administrative and implementation costs and authorizes 
                 DFG to establish a fee structure to phase in fee 
                 adjustments to provide for full cost recovery within 5 
                 years.

          6)Shifts responsibility from the FGC to DFG for various aspects 
            related to updates to and adaptive management of Marine 
            Protected Areas (MPAs).  Requires DFG to act on petitions 
            every 3 years for modifications to MPAs.  Requires DFG to 
            establish a process for external peer review of the scientific 
            basis for any additions, deletions or modifications to MPAs.  
            Requires DFG prior to considering recommended actions on such 
            petitions to convene a workshop of interested parties in the 
            bio-geographical region.  Requires DFG every 7 years to 
            conduct a review of the effectiveness of the statewide MPA 
            network and provide a report to the Secretary for Natural 
            Resources.

          7)If DFG after 60 days' notice fails to act in its statutory 
            role as trustee for the state's fish and wildlife, authorizes 
            a trustee with standing to protect fish and wildlife to bring 
            a civil action in superior court.  Requires that any damages 
            for fish and wildlife and DFG's reasonable costs are payable 








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            to DFG.

          8)Clarifies that except where expressly provided otherwise, 
            violations of the Fish and Game Code are strict liability 
            offenses punishable as a misdemeanor.

           EXISTING LAW  :

          1)Establishes DFG in the Natural Resources Agency and provides 
            that wildlife resources are held in trust by DFG for the 
            people of the state, and generally charges DFG with 
            administration and enforcement of the Fish and Game Code, 
            along with the FGC.

          2)Establishes the FGC in the Constitution and authorizes the 
            Legislature to delegate to the FGC powers relating to the 
            protection and propagation of fish and game.  The Legislature 
            has delegated by statute to the FGC the power to regulate the 
            taking or possession of birds, mammals, fish, amphibians and 
            reptiles in accordance with prescribed laws.

          3)The numerous statutory responsibilities of DFG and the FGC 
            include but are not limited to: regulation of the catch and 
            take of species; protection of wildlife and their habitats; 
            conservation of endangered and threatened species; operation 
            of hatcheries for various fisheries; protection of streambeds 
            from harmful activities; management of lands set aside for 
            fish and wildlife habitat and access to lands for recreational 
            activities such as fishing and hunting.  DFG also is a 
            responsible agency under CEQA on proposed projects that may 
            have a significant impact on fish and wildlife resources.

          4)Provides in the Fish and Game Code for various licenses and 
            permits, the fees for which are in some cases set in statute 
            and in other cases set by DFG or the FGC.  Many but not all of 
            the fees are adjusted for inflation.

          5)Establishes a state policy to maintain wild trout fisheries 
            and discourages artificial planting of hatchery raised 
            nonnative fish in wild trout waters.  Provides for designation 
            of Heritage Trout Waters containing indigenous native trout 
            species. Requires that one third of sport fishing license fees 
            be used for attaining specified production goals for state 
            hatcheries by certain dates, and designates $2 million of 
            those funds for the Heritage and Wild Trout program.








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          6)Directs DFG to establish and update a database of wetlands 
            mitigation banks.  Establishes a state policy to preserve 
            wetlands habitat and requires DFG to develop and administer a 
            program for wetlands mitigation banks in the Sacramento/San 
            Joaquin Valley.

          7)Requires the FGC every three years after MPAs are established 
            to receive and consider petitions for modifications to the 
            MPAs.

          8)Provides that most of violations of the Fish and Game Code are 
            crimes punishable as misdemeanors.

          9) Requires the OPR to develop an Environmental Goals and Policy 
          Report.

           FISCAL EFFECT  :   Unknown

           COMMENTS  :   This bill implements numerous changes designed to 
          implement broad policy recommendations arising out of a 
          Strategic Vision process facilitated this past year to improve 
          the capacity of DFG and the FGC to carry out their public trust 
          mandates for protection and management of fish and wildlife.  AB 
          2376 (Huffman), Chapter 424, Statutes of 2010, directed the 
          Secretary of Natural Resources to appoint a state executive 
          committee, blue ribbon citizen commission (BRCC), and 
          broad-based stakeholder advisory group to engage in a public 
          deliberative process and develop recommendations on ways to 
          improve the effectiveness of DFG and the FGC.  The groups met 
          for several months, released a draft interim strategic vision in 
          November 2011, and a final report in April 2012.  The report 
          includes numerous recommendations on such issues as mission, 
          scope of responsibilities, scientific capacity and integrity, 
          principles that should guide natural resources management, 
          permitting and enforcement.  Senator Pavley and Assembly Member 
          Huffman, as the chairs of the two policy committees with subject 
          matter jurisdiction, introduced companion measures to serve as 
          vehicles for implementing various recommendations coming out of 
          or related to the strategic vision process.

          This bill contains five major themes: it modifies various fee 
          authorities of DFG and the FGC to allow for recovery of 
          administrative costs; establishes a process for review, approval 
          and oversight of mitigation and conservation banks; updates 








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          California's hatcheries and wild trout program; shifts 
          responsibility for certain aspects of MPA adaptive management 
          from the FGC to DFG; and creates a civil remedy for wildlife 
          violations.  While not all of the details in this bill are 
          mentioned specifically in the final Strategic Vision report, the 
          provisions are consistent with the general recommendations and 
          overall policy goals of the report.

           Mitigation and Conservation Banks  : This bill creates a program 
          for review, approval and oversight of mitigation and 
          conservation banks.  These changes will facilitate private 
          sector participation in providing necessary mitigation 
          opportunities and are supported by the mitigation and 
          conservation bank industry.  Mitigation and conservation banks 
          are entities established by private firms to offer mitigation to 
          project proponents for projects requiring permits from DFG.  
          Conservation banks are generally understood to provide 
          mitigation for species, while mitigation banks are generally 
          understood to provide mitigation for wetlands losses.  DFG has 
          found that mitigation and conservation banks can provide more 
          effective habitat conservation than piecemeal per project 
          mitigation, but available information on the status of banks has 
          been limited.  Although mitigation and conservation banks have 
          been an ongoing activity for many years, the policy has for the 
          most part not been codified or formalized.  Also, without an 
          established funding source, DFG has suspended approval of any 
          new mitigation banks at this time.  This bill provides the fee 
          revenue to cover DFG's program costs, which promotes the 
          Strategic Vision goal of ensuring that programs have identified 
          funding sources.  The database requirements also further the 
          goals of increasing transparency and accountability.  The option 
          allowing an applicant to submit a draft prospectus for 
          pre-review is a good example of one way to meet the goals, 
          identified in the Strategic Vision, of providing assistance to 
          applicants with pre-project planning and making the application 
          review process more consistent and transparent to applicants.

           Hatcheries and Native Trout  :  This bill makes numerous reforms 
          to update DFG's hatcheries and wild trout programs.  Among other 
          things, it reflects advancements in the scientific understanding 
          of the impacts of hatchery practices on native fish populations, 
          and the importance of genetic diversity in maintaining wild 
          self-sustaining populations.  This bill seeks to balance the 
          goal of providing quality outdoor recreational opportunities for 
          fishermen who pay license fees that support fishery programs, 








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          with the goal of sustainable ecosystem-based management.  The 
          Strategic Vision places a priority on science-based 
          decision-making and overall ecosystem health.  The inland trout 
          programs remain committed to providing angler opportunities and 
          will, through specific guidance, aim to better incorporate 
          science in the sustainable management of the fisheries.  Regular 
          updates to the existing Strategic Plan for Trout Management are 
          proposed to provide an overarching systematic framework for the 
          management of all trout species.  Many elements of existing 
          formal and informal science-based trout policy are codified to 
          ensure continuance, and stocking plans are to be developed 
          specific to individual waters to maintain ecosystem balance.  

          This bill seeks to incorporate best practices into hatchery 
          production.  Maintaining and promoting genetic diversity in 
          hatchery fish is recognized as critical to producing robust and 
          resilient fish and a healthy fishery.  A Hatchery independent 
          science panel under the independent science advisory panel 
          (proposed to be established by the companion bill AB 2402) will 
          provide expertise, oversight and an independent review capacity 
          as production practices evolve.  The Heritage and Wild Trout 
          Programs are specifically prioritized to continue, if not 
          accelerate, the protection of wild and heritage trout waters and 
          the native species that populate them.  The existing "AB 7" 
          policy to promote angler opportunities is retained, and its 
          goals are clarified to align with current practice and 
          scientific understanding.  The department is specifically 
          authorized to purchase trout from private hatcheries to meet 
          trout stocking goals, if specified conditions are satisfied.  
          Overall, these reforms are designed to provide  a reliable and 
          robust trout fishery that is sustainable and protective of the 
          environment state-wide.

          With regard to the specific goals and recommendations of the 
          Strategic Vision, the hatchery and wild trout reforms in this 
          bill promote the identified goals of maintaining healthy 
          ecosystems, promoting public outdoor recreation opportunities, 
          practicing adaptive management, ensuring science-based 
                                                                                decisions, and promoting ecosystem based management informed by 
          credible science.  The requirement for DFG to make information 
          on trout inventories available on DFG's website also promotes 
          the Strategic Vision's goal of providing timely access to data 
          collected or used by DFG and the FGC.  Finally, these provisions 
          recognize the changing diversity of California by requiring that 
          areas where hatchery-produced trout are stocked to provide 








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          angling opportunities and fishing access include urban 
          fisheries.

           Cost Recovery  :  This bill includes provisions allowing DFG and 
          the FGC to adjust various licensing fees to achieve cost 
          recovery, with direction to phase in fee increases as necessary 
          for various programs.  These changes apply to both sport and 
          commercial fishermen and to hunters. The "Barriers to 
          Implementation" report accompanying the Strategic Vision final 
          report identified inadequate funding as one of the greatest 
          barriers to implementation of DFG's mission.  The report also 
          acknowledged that any meaningful change must include fiscal 
          reforms. The provisions in this bill giving DFG and the FGC 
          authority to adjust fees as necessary to recover program costs 
          is consistent with recent legislative actions giving more fee 
          setting authority for fishing and hunting to the FGC which would 
          set the fees through a regulatory process under the 
          Administrative Procedures Act (APA).   Information provided by 
          DFG and FGC staff early on in the Strategic Vision process 
          emphasized the need for financial stability, and the difficulty 
          both entities face with unfunded mandates.  In particular, DFG 
          and the FGC noted that 57% of the fees for licenses and permits 
          in the Fish and Game Code require legislative action in order to 
          adjust fees to bridge the gap between revenues and operational 
          costs.  The Legislature has frequently imposed new statutory 
          mandates on DFG without providing the funding necessary for 
          implementation. This bill begins the process of correcting that 
          problem by shifting authority from the Legislature to the FGC 
          and DFG to make adjustments in fees as necessary to recover 
          reasonable administrative and implementation costs relating to 
          the particular license or permit.

           Enforcement  :  A key recommendation of the Strategic Vision is to 
          seek statutory changes to create effective deterrents to illegal 
          take of fish and wildlife species.  One of the problems in 
          providing an effective deterrent has been the lack of 
          prosecution and adjudication of wildlife crimes which frequently 
          get dismissed by the courts if they are prosecuted at all.  This 
          bill seeks to partially address this problem by providing that 
          if the department or district attorney fails to prosecute a 
          violation, a private civil action could be brought by a 
          landowner to recover damages in superior court.  Any damages for 
          fish and wildlife would be payable to DFG, as the trustee for 
          all of the state's wildlife.  This bill also clarifies that, 
          except where otherwise specified, violations of the Fish and 








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          Game Code are strict liability offenses, much like traffic 
          violations.  Historically this has long been recognized to be 
          the case, however, a recent court decision in a completely 
          unrelated sex offender case resulted in a new criminal jury 
          instruction that has cast doubt on whether courts should apply 
          strict liability.  Similar to traffic violations, where a driver 
          cannot claim ignorance of the law to get out of a speeding 
          ticket, the Fish and Game Code does not require prosecutors to 
          prove an intent to violate the law, which is the meaning of 
          strict liability.  

           Environmental Goals and Policy Report  : The provision directing 
          specific involvement of DFG in development of the state's 
          Environmental Goals and Policy Report prepared by OPR was a 
          specific recommendation of the stakeholder advisory group in 
          order to ensure the best information on resource protection 
          activities across the state is included in the report. 

           Support Arguments  :  Supporters note the long overdue need for 
          reform of the state's wildlife management and in particular 
          highlight support for the provisions transferring responsibility 
          for ongoing management of California's MPAs, now that the 
          network of MPAs has been established, to DFG.

           Opposition Arguments  :  Opponents object to the clarification of 
          strict liability and the private cause of action allowing for 
          the filing of a civil action where the state fails to prosecute 
          wildlife violations.  They also argue that only recommendations 
          specifically referenced in the final report of the Strategic 
          Vision process should be included in this bill.    






           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          Defenders of Wildlife
          Endangered Habitats League
          Monterey Bay Aquarium
          Paw Pac
          The Nature Conservancy








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          The Wildlands Conservancy
           
            Opposition 
           
          California Farm Bureau Federation

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