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: SB 1093                   HEARING DATE: August 27, 2010
          AUTHOR: Wiggins                    URGENCY: No  
          VERSION: August 20, 2010           CONSULTANT: Katharine Moore  
          DUAL REFERRAL: No                  FISCAL: Yes  
          SUBJECT: Ocean Protection Council: Dungeness Crab task force.  
          
          BACKGROUND AND EXISTING LAW
          The California Dungeness crab fishery is a valuable state  
          resource - approximately $24 million of crab are landed annually  
          - and one of the most profitable fisheries remaining in the  
          state.    The optimal long-term management strategy for the  
          fishery is a contentious issue due to the competing interests of  
          the multiple stakeholders.   

          In 2008, the Legislature passed SB 1690 (Wiggins, c.727, Stats.  
          2008) which directed the Ocean Protection Council (OPC), upon  
          receipt of appropriate funding, to make a grant to develop and  
          administer a Dungeness Crab Task Force (DCTF). DCTF membership,  
          representative of varied fishery interests, was specified in the  
          bill. The DCTF was required to address certain issues of concern  
          to the Dungeness crab fishery and to report its recommendations  
          for management of the fishery to the Legislature, the Department  
          of Fish and Game (DFG) and the Fish and Game Commission by  
          January 15, 2010. The DCTF was convened, held multiple meetings  
          and issued two reports - one to meet the deadline and the second  
          on March 31, 2010 - containing multiple management objectives  
          and recommendations. The proposed management objectives focus  
          primarily on reducing the threat of unsustainable expansion to  
          the commercial fishery.  The recommendations describe specific  
          actions necessary to support these management objectives,  
          including, in particular, a pilot program to assess the value of  
          limiting the number of crab pots available to each permit holder  
          based upon previously reported catch.  Both Washington and  
          Oregon have recently implemented similar "tiered" programs to  
          limit total crab pot deployment.  The DCTF has continued to meet  
          in 2010 to discuss outstanding and unresolved issues, including  
          this bill.  The current sunset date for SB 1690's provisions,  
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          including termination of the DCTF, is January 1, 2011.
           
          PROPOSED LAW
          This bill implements most of DCTF's recommendations in the two  
          reports.  Specifically, this bill would:  
                 Permit the sale of crabs taken under the pre-season  
               quality testing program 
                 Extend the term of the DCTF to January 1, 2015.
                 Affirms that eligibility to participate in the  
               commercial crab fishery may be restricted for permits that  
               have been minimally used in the recent past or if DFG's  
               director (director) institutes a trap limit pilot program. 
                 Establishes legislative intent that DFG, the OPC and the  
               DCTF work with the Pacific States Marine Fisheries  
               Commission and the Tri-State Dungeness Crab Commission to  
               evaluate, subject to specific provisions, moving the "fair  
               start" line for the fishery south to the California -  
               Mexico border.

          This bill proposes a tiered crab pot pilot program.  The pilot  
          program, subject to modification by the director, would:
                 Establish a seven tier trap limit program for California  
               permit holders based upon previous California landing  
               receipts.  Permit holders with the highest receipts will be  
               eligible to purchase the most tags, and those with the  
               lowest receipts, the fewest tags.  All tags must be  
               purchased by the permit holder and each trap must have a  
               trap tag.
                 Allow appeals on a permit-by-permit basis for trap tag  
               allocations due to hardship.  All costs of the appeal are  
               the responsibility of the permit holder.
                 Impose penalties and fines for non-compliance
                 Last no longer than three years barring industry  
               consensus
                 Require DFG to report on the results of the pilot  
               program with the assistance of the OPC.

          In order to implement, modify and/or eliminate the pilot  
          program, the director  must consult  with DCTF and can only  
          proceed if the director specifically finds that the proposals  
          represent the "consensus in the crab fishing industry."  Should  
          the DCTF disagree with the director's findings, it can recommend  
          a delay of up to 18 months in the proposal's implementation.   
          The director shall delay implementation based upon DCTF's  
          recommendation, but can thereafter implement the program and/or  
          change.  Both DCTF and the director have reporting requirements  
          to each other and also to the Legislature. Additionally, DCTF  
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          may periodically evaluate the program and recommend changes to  
          the director.  

          The funding of the pilot program is established as follows:
                 DFG shall seek additional funding for the costs of the  
               pilot program and/or charge no more than $2/tag annually or  
               $4/tag for a two-year period.
                 All fees collected under this program will be deposited  
               in the newly-established Dungeness Crab Account within the  
               Fish and Game Preservation Fund. The fees will be  
               continuously appropriated to DFG for the purposes of the  
               pilot program.  
                 If necessary, the director may borrow funds for initial  
               expenses from the OPC which must be repaid within one year  
               from the fees collected.
                 The OPC will place a high priority on providing funds  
               and services to DFG to help develop and implement the pilot  
               program.

          ARGUMENTS IN SUPPORT
          According to the author's office, "Given the complexity of the  
          fishery and its management structure, a comprehensive approach  
          to effective management reform requires attention to the  
          short-term and longer-term institutions and process. An advisory  
          committee to work with the Department of Fish and Game, and the  
          Ocean Protection Council, on recommendations to address problems  
          in commercial crab fishing has garnered a fragile compromise."

          The task force "agrees that while not perfect, the task force  
          has provided a platform for the industry to collaborate, and  
          work with regulators and decision-makers on Dungeness crab  
          fishery management issues."

          ARGUMENTS IN OPPOSITION
          None received.
          
          COMMENTS 
           Issues identified through the Dungeness crab task force process :  
           Three main concerns were raised that have the potential to  
          affect the sustainability of the California's Dungeness crab  
          fishery.  The first two are the potential for long-term  
          over-fishing due to the overhang of rarely-used or "latent"  
          permits, and the increase of gear in the water. The DCTF  
          supports the use of a tiered pot program - a cap on gear - in  
          order to reduce capacity in the fishery.  Currently any number  
          of pots can be used by any permit holder.  Roughly one quarter  
          of the approximately 600 valid crab permits issued by California  
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          have very limited recorded California landings.  A tiered pot  
          program will limit the risk these "latent" permits present to  
          the fishery.  This bill implements DCTF's recommended tiered pot  
          program in many respects and provides for extensive  
          communication between DFG and the DCTF.  The third concern  
          identified is the "derby dynamic" associated with enhanced  
          fishing in the beginning of the season as fisherman seek to  
          maximize their catch.  The experience in Washington and Oregon  
          suggests that implementing a tiered pot program does not affect  
          the derby dynamic.  This and other issues remain to be addressed  
          through the DCTF process. SB 1093 would, however, implement most  
          of the DCTF's current recommendations to promote a vibrant and  
          sustainable crab fishery. 

           Can trust be legislated?   The elaborate negotiated communication  
          and review requirements detailed in this legislation suggest a  
          lack of trust exists between DFG and the crab fishing industry  
          as represented by the DCTF.  Previous versions of this bill gave  
          DCTF effective veto power over the implementation of and/or  
          changes to the pilot program by DFG which is not legally  
          possible. The extreme level of detail regarding communication is  
          an attempt to keep the commercial crab industry involved and  
          engaged in the process of ensuring a sustainable fishery with  
          DFG.      

           The Dungeness crab quality testing program  :  A limited number of  
          crabs are caught prior to the start of the season under this  
          program in order to determine the season's appropriate start  
          date.  If the collected crabs are too small - insufficient meat  
          is recovered - the start of the season is delayed.  Historically  
          a seafood processor voluntarily paid for the expenses associated  
          with this pre-season program, but has recently reduced  
          contributions. Currently the crab from this program may be used  
          for charitable purposes only.  Under this bill, fishermen  
          participating in this program would be able to sell as much of  
          their catch as necessary to cover their expenses.

           "Fair start"provisions  :  These require fishermen to commit to  
          fishing in a specific location for a period of time prior to  
          leaving that location to fish in another area.  In the case of a  
          delayed season opening in Oregon or California, for example,  
          fishermen with permits in both states must commit to fishing in  
          one zone only.

           Inconsistent sunset dates:   Sections 8275 - 8284 of the Fish and  
          Game Code contain the statutory requirements for California's  
          crab fishery.  With the specific exception of the sub-section  
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          which created the DCTF, these sections become inoperative on  
          April 1, 2012. This bill extends the lifetime of the DCTF two  
          years beyond this repeal date.
           
          Anticipated costs:   According to Assembly Appropriations, there  
          will be an annual cost of $50,000 to DFG and another $50,000 to  
          the OPC to administratively support the DCTF.  DFG will have at  
          least $150,000 in costs annually associated with setting up and  
          implementing the pilot program.  DFG disagrees with this  
          estimate of expenses - they estimate costs on the order of  
          $650,000 annually plus any additional litigation costs.   
          Forecast receipts at $2/tag per year are estimated to be  
          approximately $350,000 annually.   
           

          SUPPORT
          Environmental Defense Fund
          Pacific Coast Federation of Fishermen's Associations
          San Francisco Crab Boat Owners Association
          OPPOSITION
          None Received


























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