BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      



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          |SENATE RULES COMMITTEE            |                   SB 369|
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                              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 
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          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;


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          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; 


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             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 

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             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. 


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          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 

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          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) 

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          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

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