BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 376
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          Date of Hearing:   April 6, 2011

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

               AB 376 (Fong and Huffman) - As Amended:  March 14, 2011 

          Policy Committee:                              Water, Parks and 
          Wildlife     Vote:                            13-0

          Urgency:     No                   State Mandated Local Program: 
          No     Reimbursable:              No

           SUMMARY  

          This bill bans the possession, sale, or distribution of shark 
          fins, except for individuals who possess fins consistent with a 
          permit for scientific research or recreational or commercial 
          activity.

           FISCAL EFFECT  

          1)Minor unknown annual costs, likely no more than tens of 
            thousands of dollars, to the Department of Fish and Game 
            (DFG), whose wardens may be involved in some aspects of 
            enforcement, such as investigations of shark fin sales in 
            local markets.  (Fish and Game Preservation Fund or General 
            Fund) 

            (DFG reports that it may incur costs of as high as hundreds of 
            thousands of dollars to investigate reports of illegal shark 
            finning and selling operations.  However, existing law 
            prohibits the practice of shark finning; presumably DFG would 
            be obligated to investigate such reports even if this bill did 
            not become law.  Therefore, the costs of DFG investigations 
            into reports of illegal shark finning and the subsequent 
            selling of fins obtained through that practice should not be 
            attributed to this bill.)

          2)Minor annual state and local revenue, likely in the tens of 
            thousands of dollars, resulting from fines levied for 
            possessing of or trading in shark fins.

           COMMENTS  









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           1)Rationale.   The author cites scientific documentation of sharp 
            declines in shark populations in recent years and notes that 
            consumption of shark fin soup is believed partly responsible 
            for the decline.  The author acknowledges that current law 
            bans the practice of shark finning, in which the fins of the 
            shark are removed and the remainder of the shark body returned 
            to the water and the practice by which many shark fins are 
            believed to have been obtained.  The author contends this 
            prohibition has proven insufficient to stem trade in shark 
            fins in California, thereby necessitating its prohibition.

           2)Background.
                
              a)   Shark Fin Soup-A Delicacy in Demand.   As described in 
               the policy committee analysis, shark fin soup has been a 
               luxury item in traditional Chinese culture.  The growing 
               middle class in China has created new market demand for the 
               soup, which is also popular among some Chinese Americans.  
               The policy committee analysis cites a San Francisco 
               Chronicle report that dried shark fin in San Francisco's 
               Chinatown today sells for $178 to $500 a pound, and shark 
               fin soup typically costs $250 to $500 for 10 people.  

             b)   Shark Populations in Decline, Despite Finning Bans.   
               Sharks are top-level predators crucial to ocean ecosystem 
               health.  They are especially susceptible to overfishing 
               because they take many years to mature and produce few 
               offspring.  In recognition of this susceptibility, both 
               federal and state laws ban the practice of finning, which 
               includes possession of shark fins or tails removed from the 
               carcass. 
                
               Despite these federal and state bans on finning, shark 
               populations have declined recently.  The policy committee 
               analysis cites several peer-reviewed studies conducted on 
               various shark species in differing geographic areas.  The 
               specific findings of the studies are summarized by 
               officials with the Monterey Bay Aquarium, who claim that 
               over one-third of shark species worldwide are currently 
               threatened with extinction.

           3)Fines This Low May Not Deter Shark Fin Trade.   Proponents and 
            Opponents this bill acknowledge that a bowl of shark fin soup, 
            which uses very little shark fin, can sell for hundreds of 
            dollars.  This bill envisions fines for the unlawful 








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            possession of shark fins that, according to the Fish and Game 
            Code, cannot exceed $1,000 or one year in jail.  Some shark 
            fin purveyors may view the potential for fines and jail time 
            as an acceptable cost of doing business.  Under such a 
            scenario, this bill would do little to dissuade trade in shark 
            fins.  
             
             Some advocates of shark fin bans note that other states have 
            enacted bans that carry penalties in the thousands of dollars. 
             Bill proponents contend such large fines might put small 
            restaurants out of business.  Proponents further contend that 
            restaurateurs who might otherwise serve shark fin soup may be 
            unwillilling to risk the inconvenience and social stigma 
            associated with fines and jail time, as well as possible state 
            and federal investigations. 

           4)Support.   Supporters, including a long list of conservation 
            organizations, contend the growing demand for shark fin soup 
            is driving the decline in shark populations, the practice by 
            which many of these fins are obtained is wasteful and cruel, 
            and bans on the practice of finning have been insufficient to 
            stop the trade in shark fins.  Supporters also argue that bans 
            on the importation of the fins of only endangered shark are 
            ineffective because it is difficult and costly to identify the 
            type of shark from which a fin came.

           5)Opposition  .  Though there are no opponents officially 
            registered to this bill at the time this analysis was 
            prepared, opponents of banning the shark fin trade have 
            claimed that such a ban unfairly eliminates a long-held 
            Chinese tradition and efforts should focus on better 
            enforcement of existing prohibitions against the practice of 
            shark finning.

           Analysis Prepared by  :    Jay Dickenson / APPR. / (916) 319-2081