BILL ANALYSIS
AB 571
Page 1
Date of Hearing: April 14, 2009
ASSEMBLY COMMITTEE ON WATER, PARKS AND WILDLIFE
Jared William Huffman, Chair
AB 571 (Saldana) - As Amended: April 13, 2009
SUBJECT : Commercial Fishing: Lobster Management Enhancement
Supplement [surcharge]
SUMMARY : Requires, for a period of five years beginning in
2010, the payment of a $300 surcharge for purchase of a lobster
permit, thereby increasing the base permit fee to $565, to fund
projects to improve long-term conservation and management of the
California spiny lobster fishery. Specifically, this bill :
1)Increases the base fee for a lobster permit from $265 to $565,
and provides that $300 of the fee shall be a surcharge and
shall be known as the Lobster Management Enhancement
Supplement. Requires that the surcharge revenues received by
the Department of Fish and Game (DFG) shall be deposited
monthly, along with any interest earned on the revenues, in
the Lobster Management Enhancement Account which this bill
would create within the Ocean Protection Trust Fund. Requires
the additional $300 fee to be collected from April 1, 2010 to
March 31, 2015, after which time the permit fee would revert
back to $265.
2)Provides that monies in the Lobster Management Enhancement
Account created by the bill shall be continuously appropriated
to the Ocean Protection Council (OPC) for projects to improve
lobster conservation and management, and prohibits moneys in
the account from being expended for a project or program
unless the expenditure has been approved by both the OPC
Secretary and a majority of the members of the Lobster
Management Enhancement Advisory Committee.
3)Requires the OPC to appoint a Lobster Management Enhancement
Advisory Committee consisting of five members, including one
member representing commercial lobster fishermen or
fisherwomen, two from the California Lobster Trap Fishermen's
Association, the Secretary of the OPC, and the Director of
DFG.
4)Allows funds from the Lobster Management Enhancement Account
to be used for specified purposes, including but not limited
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to, purchasing lobster permits or trap certificates to address
overcapitalization, obtaining Marine Stewardship Council
sustainability certification, implementing new management
approaches, repaying of any California Fisheries Fund loans,
conducting research, and developing a lobster fishery
management plan. Authorizes funds to be used for DFG and OPC
administrative costs, not to exceed one percent each of annual
account revenues.
5)Authorizes the OPC to contract with or offer grants to
nonprofit commercial fishery organizations, and to act as
fiscal agent for the advisory committee. Requires OPC to
prepare and submit an annual report to the advisory committee.
6)Authorizes the OPC to deposit funds in the Lobster Management
Enhancement Account from sources other than the sale of
commercial lobster permits, including federal funds, private
foundation grants, court settlement funds, and donations from
individuals, if the source of the funds designates in writing
that the funds are intended solely for deposit to that
account.
7)Contains a sunset clause providing that this article shall
remain in effect only until January 1, 2016 unless extended.
8)States various legislative findings and declarations regarding
the importance of California's spiny lobster fishery, the
values of having commercial and recreational lobster fishermen
and associations participate in development of new approaches
to manage lobster fishing, and the need for a steady source of
funds for long term conservation and management projects.
EXISTING LAW : Prohibits the taking of lobsters for commercial
purposes without a valid lobster permit issued annually by DFG,
and subject to regulations adopted by the Fish and Game
Commission (FGC). Establishes a base fee of $265 for a lobster
permit, which with statutorily authorized adjustments for
inflation is currently $333.25. Establishes seasons, minimum
size limits, and conditions on the use of traps for the taking
of lobsters. 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.
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FGC regulations establish qualifications for transferable
lobster permits, and set procedures, timelines and limits on
permit transfers. FGC regulations also establish restricted
lobster fishing areas, requirements for release of bycatch, and
record log keeping requirements.
FISCAL EFFECT : Unknown
COMMENTS :
Purpose : The author and sponsors introduced this bill 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.
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.
Is this bill necessary ? 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
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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. If the purpose of
this bill is to create a stable funding source for programs to
support the lobster industry, could the members of the
association 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.
Role of DFG versus OPC : Under other similar programs, such as
the commercial salmon stamp program, the stamp advisory
committee makes recommendations for project expenditures to DFG,
which works with the advisory committee. This bill would have
the advisory committee make recommendations instead to the OPC.
The Director of DFG would serve as one member of the advisory
committee. All projects to be funded would require the support
of a majority of the members of the advisory committee and the
OPC Secretary. OPC would be required to provide an annual
accounting of the fund to the Advisory Committee, including the
number of permits sold and funds generated. This bill also
specifies that potential uses of the funds include purchase of
transferable lobster permits and implementation of new
management approaches. Other provisions of existing law, which
are not changed by this bill, give DFG and the FGC regulatory
authority over transferable permits and management of the
fishery. Therefore, any projects proposed for funding would
still have to meet applicable regulatory requirements imposed by
the FGC or as specified in the Fish and Game Code.
California Fisheries Fund : This bill specifies that one of the
potential uses of the fund may be to repay any California
Fisheries Fund loan. The California Fisheries Fund is a newly
created, public/private revolving loan fund that supports
fishing communities working to improve the sustainability of
their fisheries. The California Fisheries Fund is not defined
in statute. The partners participating in the fund announced
creation of the fund on March 31st of this year with $5 million
in investments. Investors in the fund include the OPC, which
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has invested $2 million, the Gordon & Betty Moore Foundation
which has invested $1 million, and other private family
foundations which have invested an additional $2 million. The
fund provides loans to fishing associations to support efforts
to improve fisheries management, loans for infrastructure
investments, and individual business loans. The committee may
wish to consider whether this bill should be amended to either
define the California Fisheries Fund and the types of loans
which would qualify for repayment, or delete the reference to
the fund and instead authorize funds in the account to be used
for repayment of loans for lobster fishery management
improvement projects, subject to approval, without specifying
the particular loan fund.
Continuous Appropriation : This bill also provides that funds in
the account shall be continuously appropriated to the OPC for
projects to improve lobster conservation and management.
Continuously appropriated funds are not subject to annual
appropriation and oversight by the Legislature, and are
generally disfavored, though there are some instances in which
continuous appropriation is appropriate. The commercial salmon
stamp account, for instance, provides for continuous
appropriation. The salmon stamp program also requires an annual
report to the Legislature on stamp sales, fund expenditures, and
the status of programs funded, whereas this bill does not.
Particularly if the continuous appropriation remains in the
bill, the author and committee may wish to consider an amendment
requiring an annual report to the Legislature on the status of
the Lobster Management Enhancement Account fund and program
expenditures.
REGISTERED SUPPORT / OPPOSITION :
Support
California Lobster and Trap Fishermen's Association (co-sponsor)
Environmental Defense Fund (co-sponsor)
American Albacore Fishing Association
California Abalone Association
California Fisheries Fund
Dana Cove Commercial Fisherman's Association
The Nature Conservancy
Opposition
AB 571
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None on file
Analysis Prepared by : Diane Colborn / W., P. & W. / (916)
319-2096