BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 337
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          Date of Hearing:   March 22, 2011

                   ASSEMBLY COMMITTEE ON WATER, PARKS AND WILDLIFE
                                Jared Huffman, Chair
                 AB 337 (Monning) - As Introduced:  February 10, 2011
           
          SUBJECT  :   Sustainable Seafood

           SUMMARY  :   Provides that the state's voluntary sustainable 
          seafood program and actions taken by the Ocean Protection 
          Council (OPC) to implement the program are exempt from the 
          Administrative Procedures Act (APA).  Specifically,  this bill  :  
          Provides that the state's voluntary sustainable seafood program 
          developed and implemented by the OPC, each component of the 
          program, and actions taken by the OPC to implement the program, 
          are exempt from provisions of the APA governing the public 
          process for adoption of state regulations (Government Code 
          Section 11346 et. seq.). 

           EXISTING LAW  :

          1)Requires the OPC to develop and implement a voluntary 
            sustainable seafood program containing the following four 
            components:
               a)     A protocol to guide entities on how to be 
                 independently certified to internationally accepted 
                 standards for sustainable seafood.
               b)     A marketing assistance program for California caught 
                 seafood certification.
               c)     A competitive grant and loan program for assisting 
                 California fisheries in qualifying for certification.
               d)     The design of a label to be used exclusively for 
                 California caught sustainable seafood.

          2)Requires the guidance protocol to be developed in a 
            transparent process by the OPC in a public meeting.  Also 
            requires the OPC to publicly document that statutorily 
            specified criteria for certification to internationally 
            accepted standards for sustainable seafood have been met, 
            including Guidelines for the Ecolabeling of Fish and Fishery 
            Products from Marine Capture Fisheries promulgated by the Food 
            and Agriculture Organization of the United Nations.

          3)Requires regulations adopted by state agencies to be adopted 
            in accordance with the procedures of the APA, which sets out 








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            specific requirements and timelines for public notice, public 
            hearings and public comments, and requires regulations to be 
            submitted to the Office of Administrative Law (OAL) for 
            approval.  The APA requires OAL to review proposed regulations 
            for conformity with the legal standards of necessity, clarity, 
            authority, nonduplication, reference and consistency.

          4)Defines a regulation to include every rule, regulation, order, 
            or standard of general application or the amendment, 
            supplement, or revision of any rule, regulation, order, or 
            standard adopted by any state agency to implement, interpret, 
            or make specific the law enforced or administered by it, or to 
            govern its procedure.   

           FISCAL EFFECT  :   Unknown

           COMMENTS  :   AB 1217 (Monning), Chapter 279, Statutes of 2009, 
          requires the OPC to develop a voluntary sustainable seafood 
          program for California fisheries.  AB 1217 was silent as to 
          whether the guidance protocol developed by OPC was required to 
          be adopted as a regulation following the procedures of the APA.  
          The APA contains specific and detailed requirements regarding 
          public notice, public hearings, opportunity for and response to 
          public comments, and review by OAL, which are generally required 
          for adoption of all state regulations unless expressly exempt.  
          The definition of a regulation, which triggers the APA 
          requirements, includes any standard of general applicability 
          adopted by the state agency to implement, interpret, or make 
          specific the law.  An argument can be made that although the 
          sustainable seafood program is voluntary, and the guidance 
          protocol developed by the OPC merely intended to guide and 
          assist applicants in obtaining certification, that the protocol 
          is nevertheless a standard of general applicability, and 
          therefore meets the definition of a regulation subject to the 
          APA.  The APA process for adoption of a regulation generally 
          takes up to a year.  In addition to establishing procedural 
          requirements for public participation, the APA also requires 
          that regulations meet legal standards for necessity, clarity, 
          authority, nonduplication, reference and consistency.   

          According to the author's office this bill is necessary to 
          clarify that the requirements of the APA do not apply to the 
          guidance protocol developed by the OPC to assist interested 
          parties in obtaining independent certification for sustainable 
          seafood for several reasons.  First, AB 1217 already requires 








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          the OPC to develop the protocol through a transparent process 
          and to adopt it in a public meeting. The OPC has also set up an 
          advisory panel of stakeholders consisting of California 
          fisheries which meets publicly.  In light of this existing 
          public process, the author and sponsors assert that requiring 
          the protocol to also be adopted as a regulation through the APA 
          rule making process would be duplicative and delay 
          implementation of an innovative voluntary sustainable seafood 
          program that promotes California's economic interests by 
          supporting fishermen.  Second, the protocol developed by OPC 
          will incorporate by reference the certification standards 
          specified in Public Resources Code Section 35550, which among 
          other things, require that the seafood certified as meeting 
          internationally accepted standards must meet or exceed the 
          Guidelines for the Ecolabeling of Fish and Fishery Products from 
          Marine Capture Fisheries promulgated by the Food and Agriculture 
          Organization of the United Nations (FAO).  As additional 
          information becomes available, and the international guidelines 
          and certifying methodologies are updated, it will be necessary 
          for the OPC to update the guidance protocol accordingly.  The 
          Coastal Conservancy indicates that it may be necessary to amend 
          the methodology as often as twice a year.  If the OPC is 
          required to undergo a formal rulemaking process every time there 
          is a change, the program could become too burdensome to 
          implement.

           Support Arguments  :  Supporters assert this bill is necessary to 
          ensure timely implementation of California's sustainable seafood 
          program, and that requiring the guidance protocol to go through 
          the formal APA rulemaking process would unnecessarily duplicate 
          the transparency and public participation already required under 
          the law.

           Opposition Arguments  :  The Turtle Island Restoration Network, a 
          member of the California Sustainable Seafood Advisory Panel, 
          opposes this bill unless the sustainable seafood statute is 
          amended to provide more specific requirements for public notice 
          and outreach to a broad range of stakeholders.

           Bagley-Keene Open Meeting Act  :  It should be noted that Section 
          35612 of the Public Resources Code requires that all OPC 
          meetings be open to the public.  OPC as a state body is also 
          subject to the Bagley-Keene Open Meeting Act which requires 10 
          days advance public notice of meetings.     









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           Issue for consideration  :  Although the existing law requires OPC 
          to develop and adopt the guidance protocol through a transparent 
          process and in a public meeting that has been publicly noticed, 
          the law does not clearly require that subsequent amendments to 
          the protocol be similarly adopted through a transparent and 
          public process.  If the committee approves the APA exemption as 
          proposed in this bill, the committee may wish to consider an 
          amendment requiring that subsequent amendments or revisions to 
          the protocol also be developed and adopted through a public 
          process as follows:

          35617. (b) The program shall consist of all of the following:
               (1)    A protocol to guide entities on how to be 
                 independently certified to internationally accepted 
                 standards for sustainable seafood.  The protocol  and any 
                 substantive amendments or revisions to the protocol  must 
                 be developed in a transparent process and adopted by the 
                 council in a public meeting.  The council shall identify 
                 in a public document that the provisions of subdivision 
                 (c) of Section 35550 have been met.           

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          California Coastal Conservancy
          Hayes Street Grill
          Monterey Bay Aquarium
          Monterey Fish Market
          State Coastal Conservancy

           Opposition 
           
          Turtle Island Restoration Network (unless amended)
           
          Analysis Prepared by  :    Diane Colborn / W., P. & W. / (916) 
          319-2096