HOUSE BILL REPORT

2SSB 6310

BYSenate Committee on Ways & Means (originally sponsored by Senators Metcalf, Owen, DeJarnatt, McMullen, Smith, Amondson, Anderson, Warnke, Thorsness, von Reichbauer and Rasmussen; by request of Department of Fisheries)

Providing a funding mechanism for regional fisheries enhancement groups.

House Committe on Fisheries & Wildlife

Majority Report:  Do pass as amended.  (9)

      Signed by Representatives R. King, Chair; Morris, Vice Chair; S. Wilson, Ranking Republican Member; Basich, Bowman, Cole, Smith, Spanel and Vekich.

House Staff:Pamela Madson (786-7310)

Rereferred House Committee on Appropriations

Majority Report:  Do pass as amended by Committee on Fisheries & Wildlife.  (22)

      Signed by Representatives Locke, Chair; Grant, Vice Chair; H. Sommers, Vice Chair; Belcher, Bowman, Brekke, Brough, Dorn, Ebersole, Ferguson, Hine, Inslee, May, McLean, Peery, Rust, Sayan, Spanel, Sprenkle, Valle, Wang and Wineberry.

Minority Report:  Do not pass.  (3)

      Signed by Representatives Silver, Ranking Republican Member; Youngsman, Assistant Ranking Republican Member; and Nealey.

House Staff:      Randy Acker (786-7153)

AS PASSED HOUSE FEBRUARY 28, 1990

BACKGROUND:

The 1989 Legislature established regional fishery enhancement groups to encourage volunteer efforts to enhance the state's salmon resource.  Each regional group's effort must be coordinated with the Department of Fisheries' efforts to enhance the resource.

Though the governor indicated support for the concept of volunteer enhancement groups, he substantially vetoed the 1989 bill.  He indicated several concerns with the bill as written and outlined the following as reasons for the veto:  (1) the lack of accountability in statute for the use of state funds by the groups; (2) a requirement that the Legislature approve loans that could be authorized under the bill; and (3) a failure to require the groups to be formally incorporated as non-profit corporations.  The governor pledged, in his veto message, to direct the Department of Fisheries to implement the intent of the bill in a more workable and accountable manner.

In June, 1989, the Department of Fisheries formed a working task force that included advisors from the various interest groups.  A bill outlining a funding source and establishing a dedicated fund was recommended, and rules were proposed to organize and administer the groups.

Proposed administrative rules create 12 geographic groups, and require that the groups organize as non-profit corporations and obtain tax- exempt status under IRS regulations before being eligible for start-up funds.  The department will provide technical assistance and will work with each group through a representative member designated by the group.  Criteria is established for group formation and for selecting among competing groups in a region.

The Grays Harbor Fisheries Enhancement Task Force, operating since 1980, was used as a model for the proposed program and is a non- profit corporation with tax-exempt status.

SUMMARY:

Regional fishery enhancement groups are encouraged to include, in their membership, representatives from all user groups and other participants interested in salmon, plus members from the general public.  Groups must be organized and incorporated as non- profit corporations.

A dedicated account is created to be known as the regional fisheries enhancement group account.  The account is funded by a surcharge on both recreational and commercial salmon fishing licenses issued by the Department of Fisheries beginning January 1, 1991.  Recreational salmon license holders pay an additional $1 and commercial salmon license holders pay an additional $100 per license.  Additional account revenue may come from the sale of surplus salmon eggs and carcasses that return to a group's facility.  Only the director of the Department of Fisheries may authorize expenditures from the account.

An advisory board is established with members appointed by the director of the Department of Fisheries to include two commercial fishing representatives, two recreational fishing representatives, and three members from the general public.  Two additional members are nominated through the Northwest Indian Fisheries Commission and the Columbia River Intertribal Fish Commission, and serve ex officio.

The advisory board makes recommendations to the director on rearing project proposals made by the individual groups and on funding of the proposals.  The board also reviews and recommends what amount should be paid to the department for its assistance to the groups.  Payment to the department cannot exceed 20 percent of the annual contribution to the account.

Funds from the enhancement account cannot serve a replacement funding for current department-operated salmon projects.

A biennial report is required from the department and the advisory board beginning in October of 1991.

The Department of Fisheries must study methods of collecting and making available the names and addresses of surcharge license holders and report their findings to the Legislature by October 1, 1990.

Revenue:    The bill has a revenue impact.

Fiscal Note:      Requested February 15, 1990.

Effective Date:Section 3 of the bill takes effect on January 1, 1991.

House Committee ‑ Testified For:    (Fisheries & Wildlife) No one.  (A public hearing was held on the House version, HB 2267.  No testimony was taken on this companion Senate version.)

(Appropriations) No one.

House Committee - Testified Against:      (Fisheries & Wildlife) No one.

(Appropriations) No one.

House Committee - Testimony For:    (Fisheries & Wildlife) None.  (A public hearing was held on the House version, HB 2267.  No testimony was taken on this companion Senate version.)

(Appropriations) None.

House Committee - Testimony Against:      (Fisheries & Wildlife) None.

(Appropriations) None.