BILL ANALYSIS                                                                                                                                                                                                    Ķ



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          Date of Hearing:   April 29, 2014

                   ASSEMBLY COMMITTEE ON WATER, PARKS AND WILDLIFE
                                Anthony Rendon, Chair
                     AB 2019 (Fong) - As Amended:  April 23, 2014
           
          SUBJECT  :   Commercial Drift Gill Net Shark and Swordfish Fishery

           SUMMARY  :   Prohibits the use of drift gill nets to take shark  
          and swordfish for commercial purposes.  Specifically,  this bill  :

          1)Prohibits the take of shark and swordfish for commercial  
            purposes with a drift gill net of any mesh size.  

          2)Allows for the incidental take of up to two thresher sharks  
            and two shortfin mako sharks in drift gill nets  with a mesh  
            size smaller than eight inches while fishing for barracuda or  
            white sea bass, as specified.  Requires any thresher shark  
            taken to not have the fin severed from the carcass until after  
            the shark is brought ashore.

          3)Repeals existing law authorizing the Department of Fish and  
            Wildlife (DFW) to issue permits for take of shark and  
            swordfish with drift gill nets for commercial purposes, and  
            related provisions.

          4)Requires DFW to issue a shark and swordfish permit to any  
            person who held a valid drift gill net shark and swordfish  
            permit as of January 1, 2015 that has not been suspended or  
            revoked.  

          5)Authorizes the Fish and Game Commission (FGC) to establish  
            conditions for the issuance of a permit if the person's permit  
            was revoked or the person did not apply for renewal on or  
            before April 30th, and provides for an appeal under such  
            circumstances.

          6)Establishes the fee for a shark and swordfish permit at $330.

          7)Requires persons issued a shark and swordfish commercial  
            permit after January 31, 2015 to fish only with hand-held hook  
            line or handthrusted harpoon. 

          8)Authorizes persons issued a shark or swordfish permit to also  
            fish with other experimental gear if they have a permit for  








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            the use of such gear.  Prohibits the FGC from issuing an  
            experimental gear permit authorizing the use of drift gill  
            nets, pelagic long-lines, or fishing lines anchored to the  
            ocean bottom.

          9)Authorizes one transfer of a shark and swordfish permit to  
            another vessel per year upon request and payment of a transfer  
            fee between February 1 and April 30.  Authorizes DFW to  
            approve additional transfers only after receipt of proof of a  
            compelling reason such as the sinking of a vessel. 

          10)Establishes a state policy that in all relevant state and  
            federal proceedings affecting the shark and swordfish fishery,  
            the State of California shall support prohibition of drift  
            gill nets targeting swordfish and sharks in the exclusive  
            economic zone off the West Coast, and oppose the transfer of  
            state permitting authority over the shark and swordfish  
            fishery to the federal government.

          11)Authorizes the director of the DFW to close the shark and  
            swordfish fishery, or any area where the fishery is conducted,  
            if after a public hearing the director determines the action  
            is necessary to protect the swordfish or thresher shark and  
            mako shark resources, and to reopen a fishery previously  
            closed upon a determination that the conditions necessitating  
            the closure no longer exist.

          12)States legislative intent not to permit or encourage the  
            taking of marlin for commercial purposes, makes it a  
            misdemeanor to sell or possess for sale or personal use any  
            marlin, and requires immediate notification of the DFW of any  
            incidental take of marlin.

          13)Provides that this bill shall be known as the Swordfish  
            Fishery Sustainability and Marine Wildlife Conservation Act,  
            and states legislative findings and declarations concerning  
            the importance of California's ocean ecosystem and the impacts  
            of drift gill nets.  States legislative intent that drift gill  
            nets targeting swordfish and sharks be prohibited in state and  
            federal waters off California, that pelagic longlines remain  
            prohibited, and that the state take steps to eliminate drift  
            gill nets in state and federal proceedings affecting shark and  
            swordfish fisheries on the West Coast.  

           EXISTING LAW  :








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          1)Authorizes the DFW to issue permits for the take of shark and  
            swordfish with drift gill nets.  Prohibits the take of shark  
            and swordfish for commercial purposes with drift gill nets  
            except under a valid drift gill net shark and swordfish permit  
            issued by the DFW.  Provides that a permit is not required for  
            the taking of shark and swordfish with drift gill nets with a  
            mesh size smaller than eight inches in stretched mesh and  
            twine size no. 18.

          2)Regulates the shark and swordfish drift gill net fishery under  
            state law as a limited entry fishery.  Requires permits to be  
            issued to any prior permittee with a valid permit.  Allows for  
            limited transfers of permits to other vessels.  Establishes  
            seasons and other time and area restrictions for shark and  
            swordfish drift gill net fishing, and regulates the size,   
            length and allowed depth of gill nets.

          3)Under federal law, known as the Magnuson-Stevens Fishery  
            Conservation and Management Act , authorizes the federal  
            Pacific Fishery Management Council to manage the shark and  
            swordfish drift gill net fishery under the Highly Migratory  
            Species Fishery Management Plan.  The Act requires efforts to  
            minimize bycatch, while enabling sustainable catch of  
            marketable species to meet consumer demand for locally sourced  
            seafood.

          4)Under federal law, known as the Marine Mammal Protection Act  
            (MMPA), prohibits with certain exceptions, the take of marine  
            mammals in U.S. waters.  Requires fisheries to reduce  
            incidental mortality and serious injury of marine mammals to  
            insignificant levels approaching a zero rate, known as the  
            Zero Mortality Rate Goal.

           FISCAL EFFECT  :   Unknown

           COMMENTS  :   This bill would ban the use of drift gill nets to  
          take shark and swordfish for commercial purposes.  It would  
          authorize the take of shark and swordfish with a valid permit  
          using hand held hook and line or harpoon.  Drift gill nets are  
          mile long mesh nets used to fish for swordfish and sharks.  The  
          nets are left in the water for extended periods of time and  
          allowed to drift in the current.  While the nets are in the  
          water, non-target "bycatch", including fish, marine mammals, and  
          other marine species can become entangled in the nets. Gear  








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          modifications implemented in the 1990s, such as acoustic pingers  
          and net extenders, and other regulatory restrictions such as  
          season and area closures, have reduced but not eliminated  
          unintentional bycatch.  Recent estimates are that over 60% of  
          the total catch in drift gill nets off California are non-target  
          bycatch that is discarded.  Over 100 marine mammals, including  
          dolphins, whales, sea lions, seals, and other species are killed  
          in drift gill nets every year.  Non-target species that have  
          been observed and documented to be killed in drift gill nets  
          include but are not limited to, bottlenose dolphins, long-beaked  
          common dolphins, short-beaked common dolphins, northern right  
          whale dolphins, Pacific white-sided dolphins, California sea  
          lions, northern elephant seals, Risso's dolphins, short-finned  
          pilot whales, gray whale, humpback whale, sperm whale and minke  
          whale.  Thousands of common molas (ocean sunfish), blue sharks  
          and other non-target fish are also unintentionally caught in the  
          nets.  While many of these non-target fish are released alive,  
          the survival rate of these animals is unknown, since the fish  
          can be injured or cut in the nets and may be susceptible to  
          subsequent infection.

          Drift gill net fisheries are managed by state and federal  
          agencies with overlapping jurisdictions, including the National  
          Marine Fisheries Service (NMFS), the Pacific Fisheries  
          Management Council, the state DFW, and the FGC.

          The author and sponsors of this bill assert that drift gill nets  
          are a draconian method of fishing that indiscriminately kills  
          too many non-target animals.  While gear modifications have  
          reduced the bycatch of some species, they assert that there are  
          still too many non-target animals killed in the nets and the  
          bycatch level is unacceptably high.  They are particularly  
          concerned that over 100 marine mammals on average are killed in  
          the drift gill nets each year, including whales and dolphins.   
          While drift gill net vessels are subject to federal observation  
          requirements, the rate of observations is low, with only 15.6%  
          of fishing vessels observed on average over the past 5 years.   
          In 2010, two sperm whales, an endangered species, were observed  
          taken in drift gill nets.  As a result, in 2013 the drift gill  
          net fishery was designated a Category 1 fishery under the MMPA,  
          and emergency regulations were adopted requiring 100%  
          observation on all drift gill net vessels fishing in areas where  
          sperm whales migrate, with a requirement that the fishery  
          immediately be shut down if any sperm whale were observed taken.
            








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          The author and sponsors are also concerned about potential of  
          endangered sea turtles being entangled in the nets, though the  
          number of observed take of sea turtles has declined  
          significantly since the designation of the Pacific Leatherback  
          Conservation Area in 2001 (discussed further below).  The author  
          and sponsors also note that drift gill nets are already  
          prohibited by the states of Washington and Oregon.

          History of the Fishery:  The swordfish drift gill net fishery  
          takes place in federal waters, primarily off the coast of  
          southern California with some effort occurring from Morro Bay  
          north to Monterey Bay.  Fishery effort and landings in the  
          fishery have been declining for some time.  In terms of  
          poundage, swordfish landings have declined from 4 million pounds  
          in the year 2000, to just slightly over 600,000 pounds in 2012.   
          The dollar value of California swordfish landings similarly fell  
          from a high of $23 million in 1985, to $1.2 million in 2009, to  
          less than $1 million in 2012.  Consequently, landings are now  
          less than 10% of what they were 30 years ago, and are currently  
          on average less than 1% of the total value of commercial fish  
          landings in the state.   The number of vessels actively  
          participating in the fishery is also at an historic low.  In  
          2011 there were 76 permits in effect but only 19 vessels  
          actively engaged in fishing.  In 2013 the number of actively  
          fishing vessels dropped to 17. 

          According to the DFW, in 2013, the total value of catch landed  
          with drift gillnet gear was $823,256. Of this, swordfish  
          accounted for $600,670 of the total, while thresher shark  
          accounted for $92,029 of the total. Tuna catches totaled  
          $58,497, opah $41,366, mako shark $28,420, and louvar $2,275.  
          The tax revenue paid to DFW for 2013 catches made with drift  
          gillnet gear was $4,457.35.  It should also be noted that  
          fishermen currently participating in the drift gill net fishery  
          note that these landings support other processing and service  
          jobs in local port communities. 
              
          NMFS perspective:  NMFS as the federal fishery management agency  
          maintains that, with the exception of sperm whales, the bycatch  
          of marine mammals in the fishery is not having a population  
          level impact on the species, and has not been determined to  
          exceed the "potential biological removal (PBR) level".  PBR is  
          defined as the maximum number of animals, not including natural  
          mortalities that may be removed from a marine mammal stock while  
          allowing that stock to reach or maintain its optimum sustainable  








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          population.   NMFS maintains that the west coast drift gill net  
          fishery operates under strict regulations including area  
          closures and special gear restrictions.  Recent correspondence  
          from NMFS's west coast fishery managers indicates that federal  
          fishery managers are concerned about the future viability of the  
          west coast swordfish fishery because the fishery has declined  
          substantially, due in large part to increased regulation to  
          protect sea turtles and marine mammals.  As a result, the stock  
          of swordfish is underutilized. Development of alternative,  
          economically feasible, low-bycatch types of gear is thus a  
          priority objective of the agency.  Experiments with alternative  
          gear types are ongoing off the southern California coast with  
          deep-set buoy gear which is used in the commercial swordfish  
          fishery in the East Coast.  Sea Grant, a research program of  
          NMFS housed at Scripps Institute in San Diego, is also  
          experimenting with new deep-set long-line gear that involves  
          setting hooks at depths below the layer inhabited by sea  
          turtles.  Reports indicate experimental deployments of this gear  
          have so far been inconclusive and more testing is needed.
           
          NMFS asserts that the harpoon fishery and the deep-set buoy gear  
          research underway serve distinct market niches that are  
          artisanal in nature and cannot meet consumer demand like the  
          drift gill net or pelagic longline fisheries.  NMFS also asserts  
          that landings of swordfish are important for maintaining market  
          infrastructure at points of landing in west coast fishing  
          communities, and that disallowing the landings would increase  
          demand for more imports from foreign fleets which have higher  
          rates of bycatch.  The mandate under the Magnuson Stevens Act is  
          to minimize rather than eliminate bycatch, while enabling  
          sustainable catch of marketable species to meet consumer demand  
          for locally sourced seafood.  NMFS sees its role to minimize  
          bycatch and ensure at-risk species do not fall below levels that  
          support population replacement or growth, to ensure endangered  
          species are not likely to be jeopardized, and, for all marine  
          mammals protected under the MMPA, to reduce but not eliminate  
          bycatch. 
            
          The sponsors of this bill counter such arguments by pointing out  
          that the MMPA actually requires that fisheries reduce incidental  
          mortality and serious injury of all marine mammals to  
          insignificant levels approaching a zero rate.  To do this, NMFS  
          defines a species "insignificant threshold" as 10% of the PBR  
          for that species.  The sponsors and supporters, however,  
          maintain that having over 100 marine mammals killed every year  








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          in drift gill nets is nevertheless an unacceptably high level of  
          bycatch, and that PBR stock levels do not take into account   
          other ecosystem impacts of drift gill nets.  The fact that other  
          countries may have fishery practices that result in even higher  
          bycatch levels does not mean California should regulate to the  
          lowest common denominator.  They further assert that shark and  
          swordfish commercial landings are such a relatively small  
          percentage of the total commercial landings in California that  
          the banning of drift gill nets should have little economic  
          impact on port communities.  With existing fishing effort in the  
          drift gill net fishery at historic lows and only 17 vessels  
          actively participating in the fishery, the author and sponsors  
          assert resources should instead be directed to assisting these  
          fishermen in either transitioning to other fisheries, which many  
          of them already participate in, or into research on other gear  
          types that have less impact on the marine ecosystem.
            
          Whales:  In 2010, the take of 2 endangered sperm whales in drift  
          gill nets was observed.  One of the whales died and one was  
          seriously injured.  NMFS extrapolated, based on the percentage  
          of observed fishing trips, that an estimated total take of 16  
          sperm whales may have occurred.  In September 2013 NMFS  
          implemented temporary emergency regulations requiring 100%  
          certified observer coverage on all drift gill net vessels  
          fishing in waters deeper than 2,012 meters (seaward of the 1,100  
          fathom contour line), and required vessel monitoring systems on  
          all drift gill net vessels.  The regulations also required that  
          the fishery be shut down if the take of one sperm whale was  
          observed.   NMFS determined that with implementation of the  
          emergency rule, mortality incidental to the drift gill net  
          fishery would have a negligible impact for purposes of MMPA  
          permit requirements for fin whale, humpback whale and sperm  
          whale.  These temporary rules expired January 31, 2014 and to  
          date have not been renewed.  The Pacific Offshore Take Reduction  
          Team of NMFS has been reconvened to develop other long term  
          measures to reduce sperm whale mortality and serious injury.  In  
          addition to sperm whales, other whales that have been observed  
          entangled by drift gill nets in the past include gray whale,  
          humpback whale, pilot whale and minke whale.

          As a result of the observed sperm whale take in 2010, the drift  
          gill net fishery was reclassified as a Category 1 fishery in  
          2013.  A Category 1 fishery is defined as a commercial fishery  
          that has been determined to have frequent incidental mortality  
          and serious injury of marine mammals.  "Frequent" is defined as  








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          the fishery by itself being responsible for annual removal of  
          50% or more of any stock's PBR level.  

          Turtles:  The NMFS website acknowledges that drift gillnetting  
          has been a major source of mortality for sea turtle species.   
          All sea turtles found in U.S. waters are listed as endangered or  
          threatened under the Endangered Species Act.  Incidental take or  
          bycatch in fishing gear is one of the main sources of sea turtle  
          injury and mortality nationwide.  In 2001, following litigation  
          by conservation organizations, the Pacific Leatherback  
          Conservation Area was established to protect migrating  
          leatherback sea turtles.  Drift gill net fishing is prohibited  
          in this area north of Point Conception from August 15 to  
          November 15 to protect the turtles.  Additional closures apply  
          south of Point Conception during El Niņo conditions in August  
          and January to protect migrating Pacific loggerhead turtles.   
          The closures have significantly reduced the numbers of sea  
          turtle deaths off California's coast.  However, proposals have  
          been made to modify the restrictions in recent years.  The  
          Pacific Leatherback Sea Turtle is also California's state marine  
          reptile.
               
          Other conservation measures have been enacted to reduce bycatch,  
          including specific gear requirements such as acoustic pingers  
          that emit sound to deter marine mammals, and net extenders that  
          drop the net below the surface to allow marine mammals and  
          turtles to pass over the nets.  NMFS data shows that there was a  
          significant reduction in bycatch for some species following the  
          implementation of pinger use requirements.  According to a NMFS  
          2010 report, since acoustic pingers were required in 1996,  
          overall cetacean (whales and dolphins) entanglement rates  
          declined by 50%, and bycatch was virtually eliminated for beaked  
          whales.  Significant reductions in bycatch were also documented  
          for northern elephant seals, however, bycatch of other pinnipeds  
          (seals and sea lions) increased.  Survival rates for whales,  
          dolphins and seals caught in drift gill nets is generally low.   
          Blue shark survival rates range from 24-49%.  With regard to  
          sperm whales, NMFS most current data indicates that between 1990  
          and 2012, 10 sperm whales were observed entangled in nets.  Five  
          died, 2 were seriously injured and 3 were released.  The current  
          annual estimate of bycatch for sperm whales is 3.2 over the five  
          year period of 2006-2010, resulting in a bycatch estimate of 16.  
           The report indicates that whether pingers are effective in  
          reducing sperm whale entanglements is inconclusive due to  
          limited data.








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           Support Arguments :  Supporters assert drift gill nets targeting  
          swordfish and thresher sharks are the single greatest direct  
          threat to ocean wildlife in this region.  More than half of all  
          the animals caught in the drift gill nets are thrown back into  
          the ocean.  More than 100 marine mammals are caught and drowned  
          in drift gill nets each year, and thousands of other non-target  
          animals are also caught, many of which die or are seriously  
          injured.  Alternative fishing gear is available and  
          participation in the drift gill net fishery is at a historic  
          low, making this the time to eliminate drift gill nets and  
          transition to more sustainable fishing methods.  In spite of  
          past efforts to reduce bycatch with pingers and other gear  
          modifications, drift gill nets continue to indiscriminately  
          impact sea mammals, turtles, sharks and even birds.  Swordfish  
          and sharks can continue to be caught with harpoons and fishing  
          lines, and other experimental gear is also being tested and may  
          soon be available.  Particularly promising are initial studies  
          with buoy gear in southern California, and increases in surface  
          hook and line landings of swordfish.  In addition to needlessly  
          killing dolphins, whales, seals and sea lions each year, drift  
          gill nets are a cruel and inhumane way to kill animals.  Marine  
          mammals drown in the nets, or if they break free may remain  
          entangled in netting which restricts movement and adds drag,  
          depleting energy reserves and in many cases eventually leading  
          to death.  Trying to keep marine mammal takes under PBR levels  
          is the wrong goal, since managers should be striving to  
          eliminate mortality and serious injury.  The MMPA's zero  
          mortality goal led to the availability of dolphin safe tuna, but  
          consumers still do not have dolphin safe swordfish in the drift  
          gillnet fishery off California.  Supporters also point to a lack  
          of evidence that banning drift gillnets off California will lead  
          to increased harvest by foreign fleets with higher bycatch, also  
                                                                    noting that the MMPA requires the Secretary of the Treasury to  
          ban importation of commercial fish caught in ways that result in  
          incidental take of marine mammals in excess of United States  
          standards.


           Opposition Arguments  :  Opponents include researchers who have  
          worked on reducing incidental mortality in the drift gill net  
          fishery and who assert those efforts have been successful, with  
          measures such as limiting fishing effort, time area closures,  
          fishing gear modifications, and mandatory use of acoustic  
          pingers, in dramatically reducing incidental mortality of  








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          cetaceans and turtles.  Opponents of this bill also claim that  
          most of the sea turtle deaths from fishing gear occur in other  
          regions of the Pacific, and banning drift gill nets here will  
          result in more sea turtle deaths, because the effort will be  
          transferred to these other areas.  They assert this bill would  
          shut down the swordfish drift gill net fishery because it is not  
          economically viable for the fishery to operate in the manner  
          proposed in this bill with hook and line or harpoons.  This bill  
          would eliminate a sustainable, highly regulated fishery and  
          promote more imports of fish from less sustainable fisheries,  
          which would be a net loss for conservation.  Opponents also  
          include fishermen currently participating in the drift gill net  
          fishery, whose families have participated in the fishery for  
          multiple generations.  They assert this bill will eliminate  
          their family livelihood and have significant economic impacts on  
          local port communities, potentially affecting hundreds of jobs.  
          Opponents also object to the sponsors' of this bill's  
          characterization of drift gill nets as curtains of death, and  
          assert that the fishery is one of the most heavily regulated and  
          responsibly managed fisheries in the world.  They note that  
          since 2001 there have only been three observed takes of sea  
          turtles in the drift gill net fishery, and that while there have  
          been takes of California sea lions in the nets, the sea lion  
          population overall has grown.  Opponents assert harpoon and hook  
          and line gear methods are not practical alternatives for  
          commercial harvest of swordfish, and note that the Monterey Bay  
          Aquarium's Seafood Watch program affords a "good alternative"  
          rating to both west coast drift gill net fisheries and the  
          Hawaii longline fishery.  As an alternative to this bill, some  
          opponents also recommend that NMFS and the Pacific Fisheries  
          Management Council be given more time to identify reasonable  
          alternatives to the drift gill net fishery with the goal of  
          maintaining an economically viable domestic swordfish fishery.

          The Nature Conservancy does not have a position on this bill but  
          submitted a letter of concern indicating they have chosen to  
          engage with the fishery in a collaborative working relationship  
          to help minimize bycatch while maintaining a profitable  
          swordfish fishery.  TNC's strategy focuses on reducing capacity  
          through a voluntary buyout of latent permits and drift gill net  
          gear, working on developing consensus on performance standards,  
          and testing of alternative gear and harvest methods.  TNC is a  
          member of the Pacific Offshore Cetacean Take Reduction Team.

           REGISTERED SUPPORT / OPPOSITION  :    








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           Support 
           
          Oceana (co-sponsor)
          Turtle Island Restoration Network (co-sponsor)
          Action for Animals
          American Cetacean Society
          California Association for Recreational Fishing
          Center for Biological Diversity
          Center for Oceanic Awareness, Research & Education
          Defenders of Wildlife
          Farallon Institute
          Friends of the Earth
          Greenpeace
          Humane Society of the United States
          I love blue sea
          Light & Motion
          Native Animal Rescue
          Ocean Revolution
          One World One Ocean
          Passionfish Restaurant
          Save Our Shores
          Save the Whales
          SeaWorld
          Shark Stewards
          Sierra Club California
          Supervisor Jane Parker, County of Monterey
          The National Humane Education Society
          The Otter Project
          Wild Aid
          Wildcoast
          Wyland

           Opposition 
           
          Aquarium of the Pacific
          California Drift Gill Net Alliance
          California Wetfish Producers Association
          Cascadia Research Collective
          Catalina Offshore Products
          Chesapeake Fish Co.
          Hawaii Longline Association
          Pfleger Institute of Environmental Research
          Seafood for the Future
          Seeadler Enterprises LLC, F.V. Seeadler








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          West Coast Seafood Processors Association
          Several individuals
           
          Analysis Prepared by  :    Diane Colborn / W., P. & W. / (916)  
          319-2096