BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 369
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          Date of Hearing:   June 28, 2011

                   ASSEMBLY COMMITTEE ON WATER, PARKS AND WILDLIFE
                                Jared Huffman, Chair
                     SB 369 (Evans) - As Amended:  June 22, 2011

           SENATE VOTE  :   24-16
           
          SUBJECT  :   Dungeness Crab

           SUMMARY  :  Establishes a Dungeness crab trap limit program, 
          reestablishes the Dungeness crab taskforce and makes other 
          related changes.   Specifically,  this bill  :

          1)Requires the Department of Fish and Game (DFG) to adopt a 
            Dungeness crab trap limit program by July 1, 2012.  Requires 
            the program to contain all of the following:

               a)     Seven tiers of trap limits based on California 
                 landings between November 15, 2003 and July 15, 2008, 
                 ranging from a maximum allocation of 500 traps for the 
                 highest landings tier, to a maximum allocation of 175 
                 traps for the lowest tier.

               b)     Requires participants to pay a biennial fee, not to 
                 exceed $5, for each trap tag issued to pay a pro rata 
                 share of program costs, and to purchase a biennial crab 
                 trap limit permit for not more than $1,000 per two-year 
                 period to pay for DFG's reasonable regulatory costs.

               c)     Prohibits leasing of a crab trap tag and allows 
                 transfer of a tag only with the purchase of a California 
                 permitted crab vessel.

               d)     Requires each trap that is fished to have a tag 
                 fastened to the first buoy and an additional tag provided 
                 by the permitholder attached to the trap.  Requires DFG 
                 to mandate the information that is required to appear on 
                 both the buoy and trap tags.

               e)     Requires DFG to provide an annual accounting of all 
                 costs of the program, and requires excess funds collected 
                 by DFG to be used to reduce the costs of the permit or 
                 tag fees in subsequent years.









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               f)     Authorizes permitholders to replace lost tags by 
                 application to DFG and payment of a fee, not to exceed 
                 DFG's reasonable costs, which fee may be waived or 
                 reduced by DFG in the case of catastrophic loss of tags.

               g)     Authorizes an appeal of a trap tag allocation by 
                 July 1, 2013 to the DFG director on a permit-by-permit 
                 basis, based on evidence California landings were reduced 
                 as a result of unusual circumstances constituting an 
                 unfair hardship.  Requires DFG to initiate the appeal 
                 process within 12 months of receiving an appeal request.  
                 Requires the appeal to be heard before an administrative 
                 law judge with the Office of Administrative Hearings 
                 whose decision shall constitute a final administrative 
                 decision.  Requires the individual requesting the appeal 
                 to pay all expenses, a nonrefundable filing fee, and 
                 DFG's reasonable costs.

          2)Provides that a violation of the requirements of the program 
            may be subject to existing criminal penalties and authorizes 
            new civil penalties ranging from a fine of not less than $250 
            and not more than $1,000 per illegal trap for a first offense; 
            not less than $500 and not more than $2,500 per trap for a 
            second offense, plus a one year suspension of the permit; and 
            not less than $1,000 and not more than $5,000 per trap for a 
            third offense.  The permit may also be permanently revoked 
            upon conviction of a third offense.

          3)Provides that recommendations for changes in the program that 
            are supported by an affirmative vote of at least 15 of the 
            non-ex officio members of the Dungeness crab task force may be 
            transmitted to the DFG director or the Legislature.

          4)Requires DFG to submit a proposed program to the task force 
            for review and prohibits DFG from implementing the program 
            until the task force has had 60 days to review the program and 
            make recommendations.  Authorizes DFG to modify the program 
            after consultation with the task force and after the task 
            force has had 60 days to review the proposed changes.

          5)Requires the Ocean Protection Council (OPC) to make a grant, 
            upon appropriation by the Legislature, for development and 
            administration of a Dungeness crab taskforce.  Provides that 
            the membership of the task force shall consist of 27 members, 
            including 2 members representing sport fishing interests, 2 








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            representing crab processing interests, 1 representing 
            commercial passenger fishing vessel interests, 2 ex officio 
            members representing nongovernmental organizations, 1 ex 
            officio member representing Sea Grant, 2 ex officio members 
            representing DFG, and 17 members representing commercial 
            fishing interests elected by licensed Dungeness crab permit 
            holders from different ports, as specified.

          6)Requires the Dungeness crab task force to review and evaluate 
            Dungeness crab management measures and make recommendations to 
            the Joint Committee on Fisheries and Aquaculture, DFG and the 
            FGC no later than January 1, 2014, with final recommendations 
            no later than January 15, 2016.  Recommendations may be 
            forwarded upon an affirmative vote of at least 2/3rds of the 
            task force members.

          7)Creates the Dungeness Crab Account in the Fish and Game 
            Preservation Fund and requires fees collected for crab trap 
            permits to be deposited in the account and used by DFG, upon 
            appropriation by the Legislature, for administering and 
            enforcing the crab trap limit program.

          8)Authorizes DFG to borrow funds to cover initial program costs, 
            to be repaid within one year from collection of fees.  
            Requires OPC to give high priority to providing funds or 
            services to DFG, in addition to loans, to assist in 
            development of the program.

          9)States legislative intent that DFG, OPC and the Dungeness crab 
            task force work with the Pacific States Marine Fisheries 
            Commission and the Tri-state Dungeness Crab Commission to 
            resolve issues pertaining to moving the fair start line south 
            to the border of California and Mexico and including District 
            10 in the tri-state agreement, as specified.

          10)Adds a sunset clause providing that the Dungeness Crab trap 
            limit program created by this bill and authorization for the 
            Dungeness crab task force shall become inoperative on April 1, 
            2018, and be repealed as of January 1, 2019.

          11)Extends the sunset on existing provisions of law, including 
            provisions authorizing DFG to order a delay in the opening of 
            the crab season, prohibiting commercial take of crab without a 
            vessel permit, and a Dungeness crab review panel, to continue 
            to be operative until April 1, 2018, and repealed effective 








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            January 1, 2019.  These sections will otherwise become 
            inoperative as of April 1, 2012, and be repealed effective 
            January 1, 2013.

          12)Increases the penalties for fishing without a Dungeness crab 
            vessel permit or using a permit to fish illegally on another 
            vessel, to include, in addition to existing criminal 
            penalties, a fine of not more than $20,000 and, at DFG's 
            discretion, revocation of the person's fishing license and the 
            commercial boat registration license for up to 5 years.    

           EXISTING LAW  :

          1)Regulates the commercial Dungeness crab fishery by, among 
            other things, restricting the size of crabs that may be 
            harvested, requiring a crab vessel permit to take crab 
            commercially, limiting the number and type of vessels, 
            limiting the season, and regulating the type of gear used to 
            take crab.

          2)Sets the crab season in Districts 6, 7, 8, and 9, for 
            Mendocino County north to extend from December 1 through July 
            15, and for all other districts south of Mendocino County from 
            November 15 through June 30.  Authorizes DFG to delay the 
            opening of the season under certain circumstances.

          3)Prior law also provided for the Dungeness crab task force, 
            which was funded with a grant from the OPC, and consisted of 
            members representing Dungeness crab fishermen and others.  The 
            law required the task force to review and make recommendations 
            to the Legislature on Dungeness crab management and related 
            objectives.  The provision of law providing for the Dungeness 
            crab task force sunsetted on January 1, 2011.

           FISCAL EFFECT  :   Unknown.

           COMMENTS  :   This bill extends the sunset date on the current 
          Dungeness crab limited entry program and establishes a new Crab 
          Trap Limits program.  The author believes this bill will improve 
          the long term sustainability of the fishery and end the annual 
          increase of crab traps in the ocean that leads to a glut of crab 
          on the market early in the season and increased safety risks to 
          fishermen who compete in a derby type race to fish.  The author 
          also believes this bill will reduce the amount of derelict gear 
          in the water, which will have both increased safety and 








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          environmental benefits, and protect California's crab fishery 
          from unfair competition from large out of state boats that are 
          limited in their own states.  The author notes that the 
          Dungeness crab fishery is a valuable state fishery that has an 
          average ex-vessel price for landed crabs of approximately $224.4 
          million per year.  With the reduction of the salmon fishery over 
          the last few years, the Dungeness crab fishery is one of the 
          most profitable and productive fisheries in California.

          SB 1690 (Wiggins), Chapter 727, Statutes of 2008, provided for 
          creation of a Dungeness crab task force, funded with a grant 
          from the OPC, and required the task force to make 
          recommendations to the Legislature on Dungeness crab management, 
          including options for pot limit restrictions.  The task force 
          met and made recommendations for a tiered crab pot-limit pilot 
          program.  The recommendations were incorporated into SB 1093 
          (Wiggins) of 2010 which was ultimately held in the Senate 
          Appropriations Committee due to concerns about costs of 
          implementation.

          The crab trap limits program established by this bill would be 
          paid for through trap and permit fees.  The Dungeness crab task 
          force, which sunsetted on January 1, 2011, would be recreated 
          and paid for through a new grant from the OPC, and would be 
          tasked with reviewing the program and making recommendations to 
          the Legislature, DFG and FGC at two year intervals.  The entire 
          program would be subject to a six year sunset.

           Technical Amendment  :  The June 22, 2011 amendments contain a 
          typographical error.  Subsection 8276.5(a)(1)(G) should be 
          amended to read: 

          (G) The California permits described in paragraphs (1) and (2) 
          of subdivision (  h   ) (g)  of Section 8276.4 shall receive a maximum 
          allocation of 175 tags. The tags in this tier shall not be 
          transferable for the first two years of the program.  

           Support Arguments  :  The Environmental Defense Fund asserts this 
          bill will greatly improve the long term sustainability of the 
          Dungeness crab fishery and protect the livelihood of fishermen 
          who depend on this resource.  They note the task force was a 
          diverse group of fishermen elected from all major crab ports and 
          representing both large and small boats.  The group met and came 
          to consensus on the need for a trap limit in the fishery.  The 
          Crab Boat Owners Association of San Francisco also supports this 








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          bill which they emphasize will ensure the long term 
          sustainability of the California crab fishery, give the state's 
          fishermen the ability to compete more fairly with out-of-state 
          fishermen, reduce the amount of derelict gear in the water, and 
          resolve other management issues.

           Opposition Arguments  :  None received    

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          Crab Boat Owners Association, Inc.
          Environmental Defense Fund
           
            Opposition 
           
          None on file.

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