BILL ANALYSIS Ó AB 337 Page 1 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 AB 337 Page 2 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 AB 337 Page 3 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. AB 337 Page 4 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