BILL ANALYSIS                                                                                                                                                                                                    





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          |                                                                 |
          |         SENATE COMMITTEE ON NATURAL RESOURCES AND WATER         |
          |                   Senator Fran Pavley, Chair                    |
          |                    2009-2010 Regular Session                    |
          |                                                                 |
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          BILL NO: AB 571                    HEARING DATE: July 6, 2009  
          AUTHOR: Saldana                    URGENCY: No  
          VERSION: June 18, 2009             CONSULTANT: Marie Liu  
          DUAL REFERRAL: No                  FISCAL: Yes  
          SUBJECT: Commercial fishing: lobster management enhancement.  
          
          BACKGROUND AND EXISTING LAW
          Section 8254 of the Fish and Game Code requires that a person  
          hold a permit for the taking of spiny lobsters for commercial  
          purposes. The base price for commercial permits costs $265  
          ($333.25 adjusted for inflation) and a crew member permit is  
          $125 ($157.50 adjusted for inflation). The Department of Fish  
          and Game (DFG) may limit the number of commercial lobster  
          permits to prevent overutilization or to ensure efficient and  
          economic operation of the fishery.

          It is illegal under 8253 to pickle, can or otherwise preserve  
          any spiny lobster except for freezing. Spiny lobsters may be  
          cooked for consumption in the "fresh state."

          PROPOSED LAW
          This bill would create the Lobster Management Enhancement  
          Advisory Committee which would be responsible for distributing  
          funds generated from a surcharge on commercial lobster permits  
          to fund projects and programs that support the long-term  
          sustainability or improved management of the California spiny  
          lobster fishery. Specifically, this bill would:
           Raise the commercial permit fee to $565, commencing April 1,  
            2010 and sunsetting March 31, 2015. $300 of this increased fee  
            would be deposited into the Lobster Management Enhancement  
            Account (LMEA) within the Ocean Protection Trust Fund. Funds  
            would be continuously appropriated to the Ocean Protection  
            Council (OPC).
           Suggest as potential uses of the LMEA, the obtaining of Marine  
            Stewardship Council sustainability certification and the  
            planning and development of a lobster fishery management plan.
           Create the Lobster Management Enhancement Advisory Committee  
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            (committee) which would consist of the Secretary of the OPC or  
            his/her designee, the director of DFG or his/her designee, and  
            three representatives for commercial lobster fishermen. The  
            three fishermen members must be elected by a majority vote of  
            valid lobster permit holders. Their term duration also must be  
            determined by a majority vote. At least two of the three  
            fishermen members must be members of the California Lobster  
            and Trap Fishermen's Association.
           Require the committee to recommend to the OPC projects and  
            programs that will support long-term sustainability or  
            improved management of the lobster fishery.
           Require that any expenditure from the LMEA be approved by both  
            the Secretary of OPC and a majority of the advisory committee.
           Require that all five members of the advisory committee be  
            present for a vote to be valid.
           Restrict DFG and OPC overhead to 5% of the account's annual  
            expenditures.
           Require DFG to submit an annual report to the Legislature that  
            includes the LMEA revenues, the status and actual project  
            expenditures from the LMEA, and the OPC's rationale for any  
            expenditures that do not follow the advisory committee's  
            recommendations.
           Allow the LMEA to also receive deposit of grants from the  
            federal government, private foundations, court settlements,  
            and donations. 
           Sunsets the whole article relating to the management of the  
            commercial lobster fishery on January 1, 2016. 

          ARGUMENTS IN SUPPORT
          The author sates, "California lobster fishermen are interested  
          in engaging in and funding projects that would promote the  
          long-term conservation of the fishery while increasing fishing  
          profitability. A significant obstacle to doing so is the  
          fishermen's ability to establish a reliable mechanism for  
          collecting assessments to fund these projects on their own. To  
          address this problem, members of the commercial lobster  
          fishermen's trade group- the California Lobster and Trap  
          Fishermen's Association- voted in summer 2008 to pursue a new,  
          legislatively-required stamp on commercial lobster permits,  
          which would generate a steady source of funds to be used for  
          programs that support the lobster fishery."

          ARGUMENTS IN OPPOSITION
          None received.

          COMMENTS 
           DFG or the Ocean Protection Council?  DFG is charged with the  
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          management and regulation of the lobster fishery. The author's  
          office maintains that there is no intention for this bill to  
          transfer the regulatory powers of DFG to OPC. While this bill  
          would have the OPC administer the funds in the LMEA, the bill  
          requires DFG and OPC to be involved collaboratively in  
          determining expenditures from LMEA as they are both members of  
          the advisory committee. 
           
          Is it appropriate for the committee to have control over the  
          expenditure of stamp funds?  
           This bill would prohibit any expenditure without the approval of  
          both the Secretary of the OPC and a majority of the advisory  
          committee members. Presumably it is the author's intent to  
          guarantee that the OPC follow the committee's recommendations  
          and advice. However, the committee may wish to consider whether  
          it is instead more appropriate to achieve this goal through  
          Legislative oversight and establishing stronger planning  
          responsibilities for the committee. This bill already requires  
          OPC to justify its rationale for any expenditures that did not  
          follow the advisory committee's recommendations (8263(f)(2)).  
          This information can assist in Legislative oversight efforts to  
          assure that the LMEA funds are being used appropriately. The  
          author may wish to consider to adding language that requires the  
          advisory committee to develop spending priorities for the LMEA  
          and to require that all LMEA expenditures be consistent with  
          those priorities to assure a close working relationship between  
          OPC and the committee. [See amendment 1]

           Continuous appropriation and clarification on the use of LMEA  
          funds:  The author estimates that this bill would raise  
          approximately $65,000 annually. While this is a small amount of  
          funds, the committee may wish to consider whether continuous  
          appropriation is appropriate given this is a new program. The  
          committee may also wish to amend 8262 of this bill to clarify  
          that the actual uses of the LMEA fund must be to support  
          long-term sustainability or improved management, not just the  
          recommended uses of the fund. [See amendment 2]

          

          SUGGESTED AMENDMENTS 

               AMENDMENT 1  
               On page 4, delete lines 28-31 inclusively and insert:
          (c) The secretary shall only fund projects that are consistent  
          with the priorities identified in subdivision (b) and are  
          consistent with this article.
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               On page 4, delete line 3 inclusively and insert:
          (b) The committee shall develop a plan prioritizing expenditures  
          on projects and programs that

               On page 4, line 6 and 7, delete "Code. Potential projects  
          and programs" and insert:
          Code which 

               AMENDMENT 2 
                On page 3, line 37, delete "Notwithstanding" and delete  
               line 38-39 inclusively and insert: 
          The money in the account shall be used exclusively for projects  
          and 

               
          SUPPORT
          California Lobster and Trap Fishermen's Association (co-sponsor)
          Environmental Defense Fund (co-sponsor)
          American Albacore Fishing Association 
          Avicena Network, Inc.
          California Abalone Association, Inc.
          California Fisheries Fund
          Dana Cove Commercial Fisherman's Association
          The Nature Conservancy
          Ocean Conservancy
          SB Seafood
          7 individuals

          OPPOSITION
          None Received
















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