BILL ANALYSIS                                                                                                                                                                                                    





                                                                  AB 571

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          GOVERNOR'S VETO
          AB 571 (Saldana)
          As Amended  August 17, 2009
          2/3 vote

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          |ASSEMBLY:  |50-25|(May 26, 2009)  |SENATE: |28-7 |(August 31,    |
          |           |     |                |        |     |2009)          |
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          |ASSEMBLY:  |50-24|(September 2,   |        |     |               |
          |           |     |2009)           |        |     |               |
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          Original Committee Reference:    W., P. & W.

          SUMMARY  :  Requires, for a period of six years beginning in 2010,  
          the payment of a $300 Lobster Management Enhancement Supplement  
          (LMES) fee as a condition of taking lobster for commercial  
          purposes, in addition to the purchase of a lobster permit.   
          Requires that revenues from the LMES be used to fund projects to  
          improve the long-term sustainability and management of the  
          California spiny lobster fishery, and establishes an advisory  
          committee to advise the Department of Fish and Game (DFG) on  
          project expenditures.  

           The Senate amendments  modify the Assembly version as follows:

          1)Revise the legislative findings to reference sustainability  
            rather than conservation.

          2)Clarify that the $300 LMES fee required by this bill shall be  
            in addition to the $265 fee required for purchase of a lobster  
            permit under existing law.

          3)Provide that the Implicit Price Deflator index that otherwise  
            applies to annual rates of increase or decrease in fish and  
            game license fees shall not apply to the LMES.











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          4)Require that LMES revenues be deposited in the Lobster  
            Management Enhancement Account (LMEA) established by this  
            bill, which shall be an account within the Fish and Game  
            Preservation Fund.

          5)Require that the funds in the LMEA shall be expended by DFG  
            exclusively for projects and programs to improve lobster  
            sustainability and management.  Requires 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.

          6)Require the advisory committee to develop a plan to prioritize  
            expenditures that support long-term sustainability or improved  
            management of the lobster fishery, and modify the types of  
            projects that may be funded by deleting reference to purchase  
            of lobster permits or trap certificates as an authorized  
            expenditure, and by including coordination and collaboration  
            within the fishery on new management approaches.

          7)Delete the requirement for expenditures to be approved by the  
            Secretary of the Ocean Protection Council (OPC) and a majority  
            of the committee, and instead prohibit DFG from funding any  
            project the DFG director determines is inconsistent with the  
            priorities identified in this bill.

          8)Limit DFG administrative overhead to 15% of annual account  
            expenditures.

          9)Create an advisory committee known as the Lobster Management  
            Enhancement Committee and modify the makeup of the advisory  
            committee to include:

             a)   One member appointed by the DFG director who is a  
               representative of commercial lobster fishermen and  
               fisherwomen, or a biological scientist actively involved in  
               lobster research affiliated with a college or university in  
               California, chosen from a list of licensed lobster  
               permittees and scientists who have submitted their names  
               for consideration;










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             b)   Three members appointed by the California Lobster & Trap  
               Fishermen's Association; and,

             c)   The DFG director or their designee.

          10)Require that all five members of the advisory committee or  
            their alternates shall be required to be present in order for  
            a vote of the advisory committee to be valid.

          11)Delete the requirement for an annual report to the  
            Legislature.

          12)Make other conforming amendments replacing references to the  
            OPC with the DFG.

          13)Extend the effective period of the bill to 2016. 

          14)Establish detailed trap specifications for taking of spiny  
            lobsters.

           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 the 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.  FGC regulations  
            establish qualifications for transferable lobster permits; set  










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            procedures, timelines and limits on permit transfers;  
            establish restricted lobster fishing areas; establish  
            requirements for release of bycatch; and specify record  
            keeping requirements.

           AS PASSED BY THE ASSEMBLY  , this bill increased the base fee for  
          a lobster permit from $265 to $565, and provided that the  
          additional $300 of the fee would be a surcharge known as the  
          Lobster Management Enhancement Supplement.  The surcharge  
          revenues would be required to be deposited in the LMEA which the  
          bill would create within the Ocean Protection Trust Fund.   
          Monies in the LMEA would be continuously appropriated to the OPC  
          for projects to improve lobster conservation and management, and  
          moneys in the account would be prohibited from being expended  
          for a project or program unless the expenditure was approved by  
          both the OPC Secretary and a majority of the members of the  
          Lobster Management Enhancement Advisory Committee.  The Advisory  
          Committee would be appointed by the OPC, and consist of one  
          member representing commercial lobster fishermen and  
          fisherwomen, two members from the California Lobster and Trap  
          Fishermen's Association, the Secretary of the OPC, and the  
          director of DFG.

           FISCAL EFFECT  :  According to the Senate Appropriations  
          Committee, 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 would require  
          expenditure of non-dedicated funds in the FGPF to cover the  
          balance of administrative costs.   

           COMMENTS  :  This bill requires commercial lobster fishermen and  
          fisherwomen to pay an annual $300 supplemental fee as a  
          condition of taking lobsters.  This bill 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 the DFG on fund expenditures.  The main changes made in  










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          the Senate were to shift administration of the program from the  
          OPC to the DFG, and the addition of detailed specifications for  
          lobster trap requirements.
           
          GOVERNOR'S VETO MESSAGE  :

          "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."



           Analysis Prepared by:     Diane Colborn / W., P. & W. / (916)  
          319-2096 



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