BILL ANALYSIS
AB 408
Page 1
Date of Hearing: January 12, 2010
ASSEMBLY COMMITTEE ON WATER, PARKS AND WILDLIFE
Jared William Huffman, Chair
AB 408 (Saldana) - As Amended: January 4, 2010
SUBJECT : Commercial fishing: Lobster management enhancement
SUMMARY : Requires the payment of a $300 Lobster Management
Enhancement Supplement (LMES) fee as a condition of taking
lobster for commercial purposes, to be used to fund projects to
improve the long-term sustainability and management of the
California spiny lobster fishery. Also revises the prescribed
dimensions and related construction requirements for lobster
traps.
Specifically, this bill :
1)Requires commercial lobster fishermen, for a period of five
years commencing April 1, 2011, to pay a LMES fee of $300, in
addition to the purchase of a lobster permit.
2)Requires that the fee revenues be deposited in an LMES account
in the Fish and Game Preservation Fund (FGPF), and be used to
fund projects to improve the long-term sustainability and
management of the California spiny lobster fishery. Requires
the Department of Fish and Game (DFG) to maintain internal
accountability and provide to the advisory committee created
by this bill an annual accounting of LMEA expenditures, and to
make the accounting available to the public.
3)Establishes an advisory committee to advise DFG on project
expenditures. Provides that the committee shall be composed
of five members, one who represents commercial lobster
fishermen and fisherwomen or is a biological scientist, three
who are appointed by the California Lobster and Trap
Fishermen's Association, and the director of DFG.
4)Requires the advisory committee to develop a plan for
prioritizing project expenditures. Project expenditures may
include but are not limited to preparation of a lobster
fishery management plan, repayment of loans for lobster
fishery management improvement projects, research, obtaining
sustainability certification, and development of new
management approaches that optimize catch per unit effort and
create incentives for ecosystem improvement.
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5)Limits DFG administrative overhead expenditures to no more
than 15% of account revenues.
6)Authorizes DFG to receive funds for deposit in the LMES
account from other sources if the person or entity providing
the funds specifically designates in writing that the funds
are intended solely for deposit to that account.
7)Modifies the prescribed dimensions and related construction
requirements for wire lobster traps.
EXISTING LAW :
1)Prohibits the taking of lobsters for commercial purposes
without a valid lobster permit issued annually by DFG, and
subject to regulations adopted by Fish and Game Commission
(FGC).
2)Establishes a base fee of $265 for a lobster permit, which
with statutorily authorized adjustments for inflation is
currently $333.25.
3)Establishes seasons, minimum size limits, and conditions on
the use of traps for the taking of lobsters.
4)Provides for suspension of commercial lobster permits by DFG
for violations. Authorizes the FGC to limit the number of
permits issued for the take of lobsters when necessary to
prevent overutilization of the resource or to ensure efficient
and economic operation of the fishery.
5)FGC regulations: establish qualifications for transferable
lobster permits; set procedures, timelines and limits on
permit transfers; establish restricted lobster fishing areas;
establish requirements for release of bycatch; and specify
record keeping requirements.
FISCAL EFFECT : According to the Senate Appropriations
Committee analysis of AB 571, which was substantially identical
to this bill, annual increased fee revenues of $31,000 in the
first year, and $62,000 per year in subsequent years (dedicated
funds). Because this bill caps administrative costs at 15% of
expenditures ($9,000 per year), and administrative costs are
estimated at $40,000 per year, this bill could require
expenditure of non-dedicated funds in the FGPF to cover the
balance of administrative costs.
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COMMENTS : This bill is substantially identical to AB 571
(Saldana) of 2009 which was vetoed by the Governor, except for a
date change to update the effective date of the bill. AB 571
passed this committee on a vote of 10-2 and passed the Assembly
on a vote of 50-24. This bill requires commercial lobster
fishermen and fisherwomen to pay an annual $300 supplemental fee
as a condition of taking lobsters, and is sponsored by
commercial lobster fishermen who are proposing to pay this fee
as a means of raising funds for projects and programs to support
long-term sustainability and enhancement of the lobster fishery.
This bill also specifies the types of projects that would be
eligible for funding, and establishes an advisory committee to
advise DFG on fund expenditures.
The author and sponsors indicate the purpose of this bill is to
generate a steady source of funds for programs that support the
spiny lobster fishery. According to the sponsors, the average
commercial weight of lobsters landed in California is down from
3.5-4 lbs. to 1.25-2 lbs. This bill would provide a self-funded
revenue stream through fees paid by lobster fishermen themselves
to fund projects to support the fishery. Members of the
California Lobster Trap Fishermen's Association voted to pursue
a legislatively mandated requirement that all commercial lobster
fishermen be required to pay a fee to generate a steady source
of funds to benefit the lobster fishery and support conservation
and management of lobsters.
The commercial spiny lobster fishery in California is a limited
access fishery. A total of 214 lobster operator permits were
issued in 2007, and 145 crew member permits. The total amount
of lobster landed in 2006-07 was 887,565 lbs.
Under this bill the payment of the increased fee would be
mandatory for all lobster permit holders. Although the
California Lobster Trap Fishermen's Association's members voted
to support a mandatory fee requirement, in effect agreeing to
tax themselves, it is unknown whether that position is shared by
other participants in the commercial lobster fishery in
California, or what percentage of the industry are members of
the Association. A survey of lobster fishermen conducted
through the University of California at Santa Barbara's
Southcoast Master's Thesis Group Project, found majority but not
unanimous support for a mandatory $300 surcharge among active
lobster fishermen. As the purpose of this bill is to create a
stable funding source for programs to support the lobster
fishery, the question could be raised whether the members of the
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association could assess themselves dues for these purposes,
without the need for legislation. While the association could
presumably do so, there would be no way to assess the fees on
nonmembers. In other cases where stamps or surcharges have been
imposed on specific fisheries, mandating a stamp or surcharge
has been viewed as a means of ensuring costs are shared
proportionally among all participants in the fishery who would
presumably benefit from enhanced management.
Arguments in Support : Supporters believe this bill is needed to
ensure sustainability and economic viability for the future of
the lobster fishery in California, and assert that this bill
establishes a reliable mechanism for collecting assessments to
fund projects to do so. Although there is a growing network of
collaborative fisheries and science projects in California that
is increasing capacity to sustainably manage marine resources,
there is need for a steady source of funds for programs to
support the lobster fishery.
The Governor in his veto of AB 571 stated that:
"This bill would establish a Lobster Management Enhancement
Supplement fee of $300 that commercial lobster fishermen and
women would be required to pay, in addition to their annual
lobster permit of $333. This supplement fee would be used to
assist the Department of Fish
and Game (Department) for lobster management activities and
would sunset on March 31, 2015.
In addition to increasing by almost 90 percent the cost of a
commercial lobster permit, thereby potentially driving some
permitees out of the fishery, the bill would also impose new
mandates and obligations upon the Department that still would
not be adequately funded. For these reasons, I am unable to
sign this bill."
As noted above under fiscal effect this bill places a cap on the
amount of administrative costs that can be paid out of the LMES
Account, thus the concern in the Governor's veto message that
Department costs may not be adequately funded. The author's
office indicates they are in discussions with the administration
on this issue.
REGISTERED SUPPORT / OPPOSITION :
Support
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Calif. Lobster and Trap Fishermen's Assoc. (co-sponsor)
Environmental Defense Fund (co-sponsor)
Avicena Network, Inc.
California Fisheries Fund
Ocean Conservancy
Seven UCSB scientific marine researchers
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Opposition
None on file.
Analysis Prepared by : Diane Colborn / W., P. & W. / (916)
319-2096