BILL ANALYSIS Ó SB 369 Page 1 SENATE THIRD READING SB 369 (Evans) As Amended August 15, 2011 Majority vote SENATE VOTE :24-16 WATER, PARKS & WILDLIFE 7-4APPROPRIATIONS 12-5 ----------------------------------------------------------------- |Ayes:|Huffman, Blumenfield, |Ayes:|Fuentes, Blumenfield, | | |Campos, Fong, Gatto, | |Bradford, Charles | | |Roger Hernández, Yamada | |Calderon, Campos, Davis, | | | | |Gatto, Hall, Hill, Lara, | | | | |Mitchell, Solorio | | | | | | |-----+--------------------------+-----+--------------------------| |Nays:|Halderman, Bill |Nays:|Harkey, Donnelly, | | |Berryhill, Jones, Olsen | |Nielsen, Norby, Wagner | | | | | | ----------------------------------------------------------------- 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; SB 369 Page 2 d) Requires each trap that is fished to have a tag fastened to the main buoy and an additional tag provided by the permit holder 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; f) Authorizes permit holders 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; and, 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. SB 369 Page 3 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 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 Fish and Game Commission (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 two-thirds 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 SB 369 Page 4 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 January 1, 2019. These sections will otherwise become inoperative as of April 1, 2012, and be repealed effective January 1, 2013. 12)Authorizes a crab vessel permit holder whose vessel is lost or destroyed, upon approval of DFG, to transfer the permit to another vessel owned by the permit holder within 2 years after the original vessel is lost or destroyed. Provides that if the permit is not so transferred within two years, the permit shall be revoked. 13)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 five 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. SB 369 Page 5 3)Sets forth requirements and restrictions on transfers of crab vessel permits and authorizes a permit holder to temporarily transfer a permit to a replacement vessel for up to six months if the permitted vessel is seriously damaged, lost or destroyed. 4)Provides 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 sunset on January 1, 2011. FISCAL EFFECT : According to the Assembly Appropriations Committee: 1)One-time costs over 2011-12 and 2012-13 to DFG, possibly reaching around $700,000, to develop regulations and the program, procure crab trap tags, develop a new permit within DFG's automated permitting system and publicize requirement to crab fishermen (Fish and Game Preservation Fund (FGPF)). 2)Ongoing annual costs of approximately $175,000 to DFG, starting in 2012-13, to administer and oversee crab trap limit program. (Dungeness Crab Account). 3)Ongoing annual costs of approximately $175,000 to DFG, starting in 2012-13, to enforce crab trap limit program. (Dungeness Crab Account.) 4)Ongoing annual costs of approximately $25,000 for staff to support the work of the taskforce. (Dungeness Crab Account.) 5)Ongoing annual fee and permit revenue to DFG, starting in 2013-14, of an unknown amount but likely sufficient to cover DFG's ongoing costs. (Dungeness Crab Account). 6)One-time costs during 2011-12 and 2012-13 in the range of $50,000 to $200,000 to DFG to establish civil penalty program. (FGPF.) 7)Potential annual ongoing civil penalty and fine revenue of an SB 369 Page 6 unknown amount. (General Fund). 8)Cost pressure on the OPC to make a grant of an unknown amount, but likely in the tens of thousands of dollars, to fund development and administration of the task force and DFG's related staffing costs (Special fund). 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 increased safety and 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 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 now one of the most 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 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 sunset 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. The Environmental Defense Fund in support asserts this bill will SB 369 Page 7 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 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. Analysis Prepared by : Diane Colborn / W., P. & W. / (916) 319-2096 FN: 0002210