BILL ANALYSIS                                                                                                                                                                                                              1










                    SENATE COMMITTEE ON NATURAL RESOURCES AND WATER
                                           

                             Senator Sheila Kuehl, Chair
                              2005-2006 Regular Session

               BILL NO:       AB 749
               AUTHOR:   Leno
               AMENDED:       As Introduced
               FISCAL:        Yes            HEARING DATE:June 28, 2005
               URGENCY:       No        CONSULTANT:Julia McIver
               SUBJECT:       Fish and Game: Dungeness crab

               Summary:       This bill would place a limitation on the  
               number of traps crab fishing vessels could use at one time  
               in certain Department of Fish and Game ("the department")  
               designated districts in the state, authorize the Fish and  
               Game Commission ("the Commission") to adopt regulations for  
               the crab fishery and subsequently adjust as indicated, and  
               extend the initial entry program for Dungeness crab fishing  
               permits.

               This bill is analyzed as proposed to be amended, as shown  
               in the accompanying mockup.

               Existing Law:  Fish and Game Code Sections 8275 - 8284  
               regulate the Dungeness crab fishery, defining, among other  
               things, the dates the season opens, depending on the  
               district, and the permit program, which regulates the  
               number of vessels taking crabs. In Department of Fish and  
               Game (DFG) designated districts roughly north of the  
               Mendocino County line, Districts 6, 7, 8, and 9, the season  
               is December 1 - July 15, but south of that line the season  
               is November 15 - June 30 of each year. The director of DFG  
               may adjust these dates based on the status of the crabs  
               that year.

               Sections 8279.1 et seq describe the permit program,  
               initiated in 1994 and known colloquially as the "limited  
               entry program", that requires permits for the taking of  











               Dungeness crab in the state. The intent of this program was  
               to limit the number of vessels that take crab commercially  
               from the state's waters in order to maintain an  
               economically and ecologically sustainable fishery. This  
               program sunsets in April of 2006.
                 
               In Section 8280(b), the Legislature finds that, in order to  
               protect the Dungeness crab fishery, it is necessary to  
               limit the number of vessels participating in that fishery  
               and it may be necessary to limit the quantity and capacity  
               of the fishing gear used on each vessel taking Dungeness  
               crab.

               Section 8280.5 provides for the director of DFG to convene  
               a Dungeness crab review panel ("the panel"), to assist in  
               the review of permit applications for Dungeness crab  
               vessels.

               Section 7701 allows the Commission to generally regulate a  
               fishery to prevent the deterioration and waste of fish.  
               Section 7704(a) provides that it is unlawful to cause or  
               permit any deterioration or waste of any fish taken in the  
               waters of this state, or brought into this state, or to  
               take, receive or agree to receive more fish than can be  
               used without deterioration, waste, or spoilage.

               Proposed Law:  This bill would:
         1.   Find that, to ensure the sustainability of the crab fishery,  
               it is necessary that limitations be placed on the number of  
               traps used by the fishery in District 10 and south until  
               the commission, based on recommendations from the  
               department, the panel, the best available science, and the  
               public, adopts another limit or other regulation to control  
               the fishery;
         2.   Authorize the Commission, in concert with the Dungeness crab  
               review panel and the department, to adopt regulations as  
               necessary to ensure the protection of the fishery and  
               provide for an orderly crab fishery;
         3.   Add to the panel's duties the requirement that it advise the  
               commission and the department on proposed Dungeness crab  
               regulations, and as well as generate an annual report on  
               the fishery with recommendations on its management;
         4.   Extend the panel's sunset from April 1, 2006 to April 2012;











         5.   Limit the number of traps that may be used by a single  
               permitted vessel to 250 in District #10 and south within  
               the state until June 30, 2008;
         6.   Require the Commission, on or after March 15, 2008, to  
               consider recommendations from the department, the panel,  
               and permit holders on potential adjustments to the trap  
               limit;
         7.   Prohibit more than one crab permit on a single vessel;
         8.   Provide a penalty for the first violation of the 250 crab  
               trap limit of up to $5,000 and/or six months in jail, and  
               provide that, for a second offense, the penalty is  
               permanent revocation of a crab permit and five years'  
               revocation of the offender's commercial fishing license.
         9.   Require the Commission to adjust the vessel permit fee or  
               establish a landing fee or vessel stamp to cover all  
               reasonable costs of administering this section.

               Arguments in Support:  The Pacific Coast Federation of  
               Fishermen's Associations (PCFFA), one of the bill's  
               sponsors, states that this bill is needed to protect the  
               resource, fishing men and women and consumers. They helped  
               draft the legislation (AB 3337, Hauser, 1994) that limits  
               the number of vessels operating in the crab fishery and  
               created the limited entry program in force today. It was  
               recognized even then, their letter states, that limiting  
               the equipment used might also be needed, as evidenced in  
               the Legislative findings (see Section 8280(b) in the  
               "Existing Law" section above). PCFFA points out that this  
               bill is supported by a very large number of fishing men and  
               women from District 10 and south, and many from the ports  
               in northern California as well.

               PCFFA further notes that trap limits are also used in  
               Alaska and Washington State, and that California has a trap  
               limit for sport-caught crab. Trap limits are also widely  
               used around the country in other fisheries, such as Maine's  
               lobster fishery. PCFFA believes the trap limits will  
               accomplish the following goals:
                     Prevent waste of the resource and assure consumers  
                 fresh, locally-caught crab over a longer season by  
                 spreading the catch over a longer period;
                     Provide safer conditions by removing the increased  
                 early pressure to fish caused by the increase in fishing  











                 activity at the start of the season, thus allowing boats  
                 to sit out bad weather without worrying about the crab  
                 being caught by others; and 
                     Halt the gear loss that results from using large  
                 numbers of traps on a single vessel - derelict gear can  
                 continue to "ghost fish", harming other ocean life and  
                 will foul other fishing gear.

               According to the PCFFA, the number of traps was determined  
               by the crab fishermen in the three principal ports in "the  
               area", presumably the San Francisco Area. They state that  
               250 is the average number of traps that can be run by an  
               average sized vessel in a day.

               The Crab Boat Owners Association describes the same goals,  
               but also strongly supports this bill because of the safety  
               issue that arises from the increased pressure to go out at  
               the beginning of the season regardless of the weather. The  
               fear that all the crabs will be fished out in the first two  
               weeks drives vessel owners to go out even if the conditions  
               are dangerous for smaller boats.

               The author's office states that there has been a 500%  
               increase in the past 20 years in the number of crab traps  
               used in the state's crab fishing grounds. Although there is  
               provision in the Fish and Game code (section 8280) to limit  
               the number of vessels taking crabs, there is no limit on  
               the number of traps or a catch limit. 

               The Farallones Marine Sanctuary and several environmental  
               groups note that controls are needed in order to maintain a  
               sustainable fishery. NRDC supports the bill, noting that  
               the fishery brought in over $40 million in 2004 and also  
               noting that the industry is volatile, as crab populations  
               fluctuate with environmental conditions. Given climate  
               change and the drastically increased pressure on the  
               fishery, they commend the bill for taking a proactive step  
               in attempting to assure the sustainability of the fishery.

               Osprey Seafood and other crab processors and retail stores  
               describe the waste that occurs when the market is inundated  
               with excessive catches of crab, and the decline in quality  
               and catch over the length of the crab season. They believe  











               the bill is extremely important to preventing the waste of  
               hundreds of thousands of pounds of local crab every year,  
               and supporting the retail seafood economy.

               Contrary to claims of opponents that limiting the number of  
               traps will harm consumers by increasing the price of  
               Dungeness crab, supporters such as The Golden Gate  
               Restaurant Association say the current system harms  
               consumers. After the first two weeks of the season, they  
               have to settle for frozen crab or more expensive crab  
               imported from Oregon, Washington and Alaska. Historically,  
               the crab season has lasted for seven months of the year  
               with fresh crab being available in local markets and  
               restaurants for much of that time.  

               Fishermen write that the price of crab fell to $1.50/pound  
               while the price of steel and fuel skyrocketed. They also  
               state that an unknown quantity of crab was illegally  
               disposed of at sea because the processors couldn't process  
               the huge quantities fast enough and the crabs died while  
               still on board. They also note that the fishery to consumer  
               relationship operated relatively smoothly until recent  
               years when, with the advent of the large vessels with 1,000  
               traps or more, an imbalance has occurred that needs to be  
               repaired.

               Arguments in Opposition: The California Fisheries and  
               Seafood Institute argues that this is not a resource issue  
               and that the fishery is already well regulated, noting the  
               rules about size limits and limiting the take to male  
               crabs. Neither of these is the subject of the bill. They  
               also argue that pot limits will stifle competition and lead  
               to higher prices and no crab for Californians during the  
               beginning of the season when demand is high. They also  
               state that this resource belongs to all Californians, and  
               many look forward to buying crab at the beginning of the  
               season. 
               
               Fishermen note that the 250 limit may not be appropriate  
               for all boats, and that costs vary and are escalating. They  
               also note that the bill provides for an undetermined  
               potential fee increase to cover the department's  
               administrative costs.











               
               Comments: The opponents' arguments that this is not a  
               resource issue are not consistent with the observations of  
               the waste of thousands of pounds of crab described by both  
               vessel owners and processors, nor with environmental  
               concerns about overfishing in the beginning of the season.  
               To argue that pot limitations will limit competition and  
               lead to higher prices and a lack of crab during the start  
               of the season is not borne out by statements from the  
               processors and retail operations who observe that the crab  
               supply has been steady for many years, and furthermore has  
               lasted over the seven months of the season in the past. To  
               observe that this resource belongs to Californians does the  
               opposition credit, and it's apparent from the support  
               letters that the other vessel owners, and, further, the  
               people who want to enjoy locally caught fresh crab for  
               seven months instead of two weeks, would agree with them.

               The bill puts in place the 250 trap limit for two fishing  
               seasons and, following that, requires the Commission to  
               reexamine that policy. Proposed amendments would increase  
               the fisherpeoples' participation in that process through  
               the participation of the panel, which is made up of one  
               nonvoting member of the department, one crab processor, and  
               two licensed crab fishers, one each representing the  
               geographic areas roughly north and south from the  
               Sonoma-Mendocino county line (reasonably equivalent to the  
               border of District 10). In addition, proposed amendments  
               address the concerns about sustainability, requiring the  
               Commission to include the best available science and the  
               panel to make recommendations for further improvements for  
               management of the fishery.

               One point that should be made clear about using the panel  
               is that doing so should not increase costs, nor drive up  
               the fees. The panel was established in 1994, and the  
               funding to support it comes from the existing $200 fee paid  
               for crab fishing permits.

               Fish and Game Commission landing reports for 2004 for  
               Dungeness crab in the San Francisco area ports show that  
               over 75% of the crabs are harvested during the first two  
               weeks after the season opening in November, with a dramatic  











               decline in landings in December, and an even smaller  
               harvest in January, from 2,700,000 pounds to 649,000 pounds  
               to 158,000 pounds from start to the eighth week. The  
               landing reports also show a steep increase in the amount of  
               crab harvested in the month of November in recent years  
               increasing from November of 2002, when 1.7 million pounds  
               were harvested, to November of 2004, when over 2.7 million  
               were caught. These numbers speak for themselves in painting  
               a vivid picture of the recent harvest trend.
               
               This bill is nearly identical to AB 2146 (Leno) that was  
               passed by the Legislature in 2004 and vetoed by the  
               Governor. The veto message said, in part, 
                    "However, I am concerned that the significant changes  
                    this bill mandates in the Dungeness crab fishery  
                    should be considered and addressed through the Fish  
                    and Game Commission following its thorough review and  
                    open public hearing
                    process.
                    
                    One of the principal tasks of the Fish and Game  
                    Commission is the regulation and management of our  
                    States fisheries...Such an effort...should not be made  
                    without significant scientific and biological  
                    analysis, public discussion and consideration of  
                    alternatives.  That is the role of the Fish and Game  
                    Commission.

                    I encourage the Legislature to vest the Commission  
                    with fishery management responsibility for Dungeness  
                    crab and then let the Commission proceed with the  
                    dozens of complex decisions necessary to effect  
                    sustainable fishery management."

               This bill responds to the message by vesting the management  
               of the fishery with the Commission, the panel, the  
               department and the public, and incorporating consideration  
               of scientific analysis, public discussion and consideration  
               of alternatives.
               
               SUPPORT: ASQEW Grill
               Bodega Bay Fishermen's Association
               California Coastkeeper Alliance











               Chinese Commercial Fishing Association
               City and County of San Francisco
               Crab Boat Owners Association, Inc.
               Crab Fishermen of Eureka California (67 individuals listed)
               Defenders of Wildlife
               Environmental Defense
               Farallones Marine Sanctuary Association
               Fishermen's Marketing Association of Bodega Bay
               Golden Gate Restaurant Association (co-sponsor)
               Gulf of the Farallones National Marine Sanctuary (U.S.  
               Dept. of Commerce)
               H. Young Enterprises
               Half Moon Bay Fishermen (36 individuals listed)
               Half Moon Bay Fishermen's Marketing Association
               Hawthorne Lane Restaurant
               Kimpton Hotels and Restaurants, LLC
               Martini House
               Max's Restaurant
               Mendonoma Marine Life Conservancy
               Monterey Commercial Fishermen's Association
               Monterey Fish Market
               Natural Resources Defense Council (NRDC)
               Next Seafood Company
               Osprey Seafood
               Pacific Coast Federation of Fishermen's Association  
               (co-sponsor)
               Palio d' Asti Resaturant
               Pier 23 Caf?
               Planning and Conservation League
               Ports Seafood
               Rickey's Restaurant
               San Francisco Tomorrow
               San Mateo County Harbor District
               Santa Cruz Commercial Fishermen's Association
               Save Our Shores
               Scoma's Restaurant
               Sierra Club
               Small Boat Commercial Salmon Fishermen's Association
               Sonoma County Water Agency
               The Brazen Head Restaurant and Public House
               The City Club
               The Grove Caf?
               The Ocean Conservancy











               The Puccini Restaurant Group 
               Vasco Restaurant
               Vine Solutions
               Numerous individuals
               
               OPPOSITION: California Seafood and Fisheries Institute
               Coalition Opposed to AB 749 (100 individuals listed)
               Numerous individuals