BILL ANALYSIS Ó AB 2075 Page 1 Date of Hearing: April 8, 2014 ASSEMBLY COMMITTEE ON WATER, PARKS AND WILDLIFE Anthony Rendon, Chair AB 2075 (Alejo) - As Amended: March 28, 2014 SUBJECT : Alligators and crocodiles SUMMARY : Extends the sunset on provisions of existing law allowing the importation, possession and sale of alligator and crocodile products in California for ten years until 2025. EXISTING LAW : 1)Makes it unlawful to import into the state for commercial purposes, to possess with intent to sell, or to sell within the state, the dead body, or any part or product thereof, of specified wild animal species that are not native to California. Violation of this prohibition is punishable as a misdemeanor subject to a fine of not less than $1,000 and not more than $5,000, or six months imprisonment, or both the fine and imprisonment. 2)Makes it unlawful, commencing January 1, 2015, to import into this state for commercial purposes, to possess with intent to sell, or to sell within the state, the dead body, or any part or product thereof, of a crocodile or alligator. Importation, possession and sale of such products are currently allowed in California until that date, except that the law does not authorize importation or sale of any alligator or crocodilian species, or any products thereof, that are listed as endangered under the federal Endangered Species Act, or where such action would be in violation of any federal law or international treaty to which the United States is a party. FISCAL EFFECT : None; this bill was identified by Legislative Counsel as nonfiscal. COMMENTS : Prior to 2006, California law prohibited the importation of products made from alligators or crocodiles. The American Alligator was listed as endangered under federal law in 1967. Due to substantial recovery of the species, it was reclassified in 1987 as "threatened due to similarity of appearance" with other endangered or threatened alligator and crocodile species. The U.S. Fish and Wildlife Service (USFWS) AB 2075 Page 2 thus regulates the harvest of alligators and legal trade in the animals, their skins, and products made from them, as part of efforts to prevent the illegal take and trafficking of endangered "look-alike" species. The American Alligator has been internationally recognized as an exemplary example of successful conservation through sustainable management. However, nearly 20 other species of alligators and crocodiles in the world are listed as endangered or threatened. Nine species are used in commercial trade and the American Alligator constitutes about 60% of total world trade. In 2006, former Governor of Louisiana Kathleen Blanco sponsored SB 1485 (Hollingsworth), which lifted the ban on importation and sale of alligator and crocodile products in California. The state of Louisiana argued that permitting the sale of alligator products in California would encourage sustainable use management of alligator populations in Louisiana, benefit local communities and economic recovery in that state, and encourage conservation of wetlands. The Legislature agreed to lift the ban but added a sunset clause of 2010 in response to concerns that allowing importation could encourage increased production, putting increased pressure on wild stocks, or lead to more harvesting of endangered or threatened species that resemble species taken legally. An international treaty, known as the Convention on International Trade in Endangered Species of Wild Flora and Fauna (CITES) regulates trade of alligators and crocodiles and requires that all legal hides be tagged to distinguish them from listed species that are not permitted to be legally traded. In 2009, the law allowing importation and sale of alligator and crocodile products in California was extended for another five years to 2015 with the passage of SB 609 (Hollingsworth). The state of Louisiana was again the sponsor of that measure, and asserted that the opening up of the California market had helped to support a sustainable use program that generated significant annual economic revenue for coastal Louisiana. History of Alligator Harvest in Louisiana : The Louisiana 2012-13 annual report on their alligator management program indicates that since 1972 the state has farm-raised 4.8 million alligators, harvested 904,000 alligators from the wild, and collected 7.5 million eggs. The population of alligators declined in the 1950's due to over-exploitation and the alligator season was closed in Louisiana in 1962. The species AB 2075 Page 3 was listed as endangered in 1967. After the species recovered, the hunting season was reopened in select areas starting in 1972, and then statewide in 1981. The export of alligator skins and products has been regulated by CITES since 1975. The USFWS administers CITES for the U.S. The American Alligator is listed on Appendix II of CITES because of their similarity of appearance with other endangered crocodilian species. In order to export alligator hides and products, the state of Louisiana is required by USFWS and CITES regulations to certify annually that the harvest programs will not be detrimental to the survival of the species. The Louisiana Department of Wildlife and Fisheries (LDWF) annually inventories nest production throughout the state to assess population status. In the summer of 2012 they estimated based on aerial surveys that 42,151 wild alligator nests were present in coastal marsh habitats, an 18% increase from 2011. Based on the surveys, annual harvest quotas are established for different habitat areas. The LDWF estimates the current statewide population of alligators at approximately 1.5 million animals. The LDWF also regulates the collection of alligator eggs from the wild which are then grown in captivity on alligator farms. The number of eggs collected, which are collected on specific lands pursuant to permits, is estimated to be somewhat less than half the total number of eggs produced in the wild statewide. The LDWF requires that 12% of the juvenile alligators hatched from the eggs be returned to the wild within 2 years of hatching. Alligators released are tagged so the LDWF can monitor their fate following release. The LDWF believes that the survival rate of released alligators is similar to that of wild-hatched alligators. In 2009, coastal flooding and tropical weather limited egg collections. Many farmers decided to forego egg collections in 2009. The economic recession also decreased demand for farm-raised alligator skins, and many farmers were unable to sell the skins. The department indicates that the market has since recovered and by 2013 was back to pre-recession levels. CITES Regulation : Under CITES, all hides sold commercially are required to be tagged, however, once the hides are made into products the products do not carry tags. All countries are also required to submit annual reports on alligator and crocodile harvest to CITES. The CITES 2012 report indicates that "incomplete data due to late submission or failure to submit AB 2075 Page 4 CITES annual reports remains an impediment to conducting trade studies using CITES trade data." The U.S. has filed all required annual reports. Countries failing to file reports include Bolivia, Cambodia, Ethiopia, Guyana, Malawi, Nicaragua and Panama. The report also notes accuracy of data and the quality of some of the submitted reports are further limitations. CITES' attempts to reduce errors to a minimum by cross matching import data with original export permit information. The report indicates that "significant improvement in reporting of crocodilian trade continues; however, absence of annual reports from some countries continues to be a hindrance to timely analysis of the trade." In recent years some issues have been raised regarding appropriate humane methods for slaughter of farm-raised alligators. The LDWF, along with the Louisiana State University School of Veterinary Medicine has conducted research to determine the most humane slaughter methods, the results of which have been incorporated into a report entitled "Best Management Practices for Louisiana Alligator Farming." The recommended methods have been approved by the American Veterinary Medicine Association. The LDWF plans to move forward within the next few months with regulations on humane slaughter of farm-raised alligators. Support Arguments : The LDWF expresses strong support for this bill and notes that wise, sustained utilization of commercially valuable wildlife species can be a conservation tool. The trade creates an economic incentive to conserve wetlands, and the legal trade of alligators is a multi-million dollar industry benefiting the citizens of their state. They note that Louisiana's management program has been recognized by CITES as a world-wide model for sustainable conservation. Other supports also note that trade in crocodile and alligator products is internationally recognized as an integral part of one of the great wildlife conservation success stories, and creates economic incentives to conserve predatory species that might otherwise be considered pests. Supporters also include retailers who sell alligator products in California and assert that this bill helps to foster economic growth in the retail, fashion and design industries. Opposition Arguments : Opponents assert that since finished products made from alligator or crocodile hides do not carry tags, it is difficult to determine whether these products come AB 2075 Page 5 from legally traded hides or from critically endangered animals. The law could therefore end up threatening endangered or threatened species or contribute to the inhumane treatment of animals. They also recommend that the 10 year extension should be shortened. REGISTERED SUPPORT / OPPOSITION : Support American Tanning & Leather LLC American Watch Association Battaglia Beverly Hills Beverley Hills Chamber of Commerce California Chamber of Commerce California Restaurant Association California Retailers Association Crocodile Specialist Group of the Species Survival Commission, of the International Union for the Conservation of Nature Fashion World, Inc., dba Bijan Fendi, Rodeo Drive Fendi, Beverly Center Gearys Beverly Hills Horiuchi Trading Co, Ltd. Hublot Boutique IWC Schaffhausen LANVIN, Rodeo Drive Loro Piana Louisiana Alligator Advisory Council Louisiana Department of Wildlife and Fisheries Maxfield Richard Mille Boutique Rhonda Ochs, LLC Stefano Ricci Swatch Group, Ltd. West Hollywood Chamber of Commerce Westime Opposition Humane Society of the United States Analysis Prepared by : Diane Colborn / W., P. & W. / (916) 319-2096 AB 2075 Page 6