BILL ANALYSIS Ó ------------------------------------------------------------ |SENATE RULES COMMITTEE | SB 369| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 445-6614 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ UNFINISHED BUSINESS Bill No: SB 369 Author: Evans (D) Amended: 9/2/11 Vote: 21 SENATE NATURAL RES. & WATER COMMITTEE : 5-2, 4/12/11 AYES: Pavley, Evans, Kehoe, Padilla, Wolk NOES: Cannella, Fuller NO VOTE RECORDED: La Malfa, Simitian SENATE APPROPRIATIONS COMMITTEE : 6-3, 5/2/11 AYES: Kehoe, Alquist, Lieu, Pavley, Price, Steinberg NOES: Walters, Emmerson, Runner SENATE FLOOR : 24-16, 5/9/11 AYES: Alquist, Calderon, Corbett, De León, DeSaulnier, Evans, Hancock, Hernandez, Kehoe, Leno, Lieu, Liu, Lowenthal, Negrete McLeod, Padilla, Pavley, Price, Rubio, Simitian, Steinberg, Vargas, Wolk, Wright, Yee NOES: Anderson, Berryhill, Blakeslee, Cannella, Correa, Dutton, Emmerson, Fuller, Gaines, Harman, Huff, La Malfa, Runner, Strickland, Walters, Wyland ASSEMBLY FLOOR : Not available SUBJECT : Dungeness crab SOURCE : Author DIGEST : This bill establishes a Dungeness crab trap CONTINUED SB 369 Page 2 limit program, reestablishes the Dungeness crab taskforce and makes other related changes. Assembly Amendments (1) extend the deadline for the Department of Fish and Game (DFG) to implement the crab trap program required by this bill from July 1, 2012, to March 31, 2013, and likewise change the deadline for submittal of appeals of trap tag allocations from July 1, 2013, to March 31, 2014; (2) clarify that the ex officio members of the crab advisory taskforce are nonvoting members; (3) extend the sunset date from 2019 to 2020 for various sections of law relating to Dungeness crab, including sections governing the opening and delay of opening of seasons, the existence of the Dungeness crab task force (DCTF), the crab trap program to be created by this bill, crab vessel permit and transfer requirements, penalties for violations, the existence of the Dungeness crab review panel, and fees for vessel permits; (4) extend the deadline for the DCTF to make recommendations on Dungeness crab management measures to the Joint Fisheries and Aquaculture Committee, DFG and the Fish and Game Commission, to January 15, 2015, for initial recommendations and January 15, 2017, for final recommendations, and extend to January 15, 2015, the deadline for the task force to make other specified recommendations related to the crab fishery; (5) authorize the Ocean Protection Council to include in grant funding monies to cover travel costs for the DFG representatives to the DCTF; and (6) require the crab limit program to contain 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. ANALYSIS : Sections 8275 - 8284 of the Fish and Game Code (FGC) contain much of the statutory language relevant to California's Dungeness crab fishery. Existing law: 1. Permits the Director of DFG to delay the opening of the fishery in certain circumstances, regulates certain preparations for the fishery's opening, and regulates the taking of crab during these delays; CONTINUED SB 369 Page 3 2. Establishes eligibility criteria to obtain a commercial Dungeness crab vessel permit and requires this permit to land crab; 3. Establishes the necessary criteria to transfer and/or revoke a Dungeness crab vessel permit; 4. Establishes fees for the permit; and 5. Requires the Director to convene a Dungeness crab review panel for the purpose of reviewing permits and application transfers. The sunset date for these provisions is April 1, 2012. This bill: 1. Requires DFG to adopt a Dungeness crab trap limit program by March 31, 2013. 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 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; CONTINUED SB 369 Page 4 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 March 31, 2014, 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 nonvoting members of the DCTF may be transmitted to the Direction of DFG 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 CONTINUED SB 369 Page 5 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 two members representing sport fishing interests, two representing crab processing interests, one representing commercial passenger fishing vessel interests, two nonvoting members representing nongovernmental organizations, one nonvoting member representing Sea Grant, two nonvoting members representing DFG, and 17 members representing commercial fishing interests elected by licensed Dungeness crab permit holders from different ports, as specified. Authorizes the OPC to include in grant funding monies to cover travel costs for the DFG representatives to the DCTF. 6. Requires the DCTF to review and evaluate Dungeness crab management measures and make initial recommendations to the Joint Fisheries and Aquaculture Committee, DFG and the Fish and Game Commission no later than January 15, 2015, with final recommendations no later than January 15, 2017. 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. CONTINUED SB 369 Page 6 9. States legislative intent that DFG, OPC and the DCTF 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 DCTF shall become inoperative on April 1, 2019, and be repealed as of January 1, 2020. 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, 2019, and repealed effective January 1, 2020. 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 two 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. Background In 2008, the Legislature passed SB 1690 (Wiggins), Chapter 727, Statutes 2008, which directed the creation of the DCTF. DCTF membership, representative of varied fishery interests, was specified in the bill. The DCTF was CONTINUED SB 369 Page 7 required to address certain issues of concern to the Dungeness crab fishery and to report its recommendations for management of the fishery to the Legislature, DFG and the Commission in early 2010. DCTF submitted its findings in two reports that contained multiple management objectives and recommendations for the fishery. The proposed management objectives focus primarily on reducing the threat of unsustainable expansion to the commercial fishery. The recommendations describe specific actions necessary to support these management objectives, including, in particular, a pilot program to assess the value of limiting the number of crab pots available to each permit holder based upon previously reported catch. Both Washington and Oregon have recently implemented similar "tiered" programs to limit total crab pot deployment. Last year, SB 1093 (Wiggins) sought to implement many of the DCTF's recommendations. FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes Local: Yes 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 (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) CONTINUED SB 369 Page 8 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 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) SUPPORT : (Verified 9/6/11) Crab Boat Owners Association of San Francisco Environmental Defense Fund Pacific Coast Federation of Fishermen's Associations ARGUMENTS IN SUPPORT : According to the author, this bill "is seen by crab fishermen and processers as vitally important to the state's crab industry. First of all, the bill in its current form extends Ýthe sunset in existing law from] next year to 2015, thereby allowing the current Dungeness Crab permitting program to continue without disruption. Secondly, it provides the platform for ongoing work with Crab Fishery stakeholders to craft a bill that will help conserve the resource, meet the regulatory requirements of the Department of Fish and Game, keep unneeded gear out of the water, and put a halt to the annual cross border race for crabs that threatens the livelihoods of our fishermen." CTW:kc 9/7/11 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END **** CONTINUED