BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 369
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          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;








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             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.









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          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 








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            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.








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          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 








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            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 








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          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                                          


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          0002210