BILL ANALYSIS �
AJR 39
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Date of Hearing: June 12, 2012
ASSEMBLY COMMITTEE ON WATER, PARKS AND WILDLIFE
Jared Huffman, Chair
AJR 39 (Chesbro) - As Introduced: May 9, 2012
SUBJECT : California Seafood
SUMMARY : This resolution encourages the federal government to
support funding for domestic seafood marketing and promotional
activities which will provide sustainable marketing funds for
California fish and seafood producers. Specifically, this bill :
1)States legislative findings and declarations that:
a) California seafood products face increasing
competition from imported seafood products; effective
marketing of California seafood requires innovative and
consistent promotion; and despite money raised within
California, promotional activities are limited and
underfunded.
b) Annual funding for production of California seafood
is not sufficient to effectively develop thriving
markets.
c) The federal government collects hundreds of millions
of dollars annually through customs laws regulating
importation of seafood products.
d) Funds collected from the importation of seafood
products are not available for the domestic marketing of
American seafood.
e) Using a portion of revenue collected on importation
of foreign seafood products to promote American seafood
and sustainable fishing practices will expand consumer
appreciation of domestic fisheries, secure and improve
competition for American fisheries and seafood jobs,
create robust and enduring domestic markets, and attract
investors from all sectors of the economy.
2)States Legislative support for the use of a portion of
federally generated seafood product import revenues for
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domestic marketing and promotion of California seafood.
3)Directs the Chief Clerk of the Assembly to send copies of the
resolution to the President and Vice President of the United
States, the Speaker of the House of Representatives, the
President pro Tempore of the United States, and each member of
California's Congressional delegation.
FISCAL EFFECT : None. Non-binding resolution
COMMENTS :
The Saltonstall-Kennedy (S-K) Act of 1954 was created to provide
consistent funding for commercial fisheries research and
development with funds derived through the permanent
appropriation of a portion (30%) of income generated through the
custom laws regarding imports of fish and fish products. In the
late 1970's, Congress addressed changing needs of the commercial
fishing industry as well as those of the National marine
Fisheries Service (NMFS), the federal agency that manages the
U.S. commercial fishery industry and the marine resources, by
broadening the appropriation of funds to encompass a competitive
grants program for the commercial fishing industry to address
concerns related to fisheries research and development. As part
of the American Fisheries Promotion Act of 1980, congress
authorized the competitive grants program. As part of this Act
along with the FCMA requirements, NMFS began receiving S-K funds
as annual budgetary transfers to National Oceanic and
Atmospheric Administration's (NOAA) Operation, Research, and
Facilities account.
The objective of the S-K program was to address the needs of
fishing communities in providing economic benefits for
rebuilding and maintaining sustainable fisheries, and in dealing
with the impacts of conservation and management measures. The
S-K program has become very important in addressing issues of
immediate concern to the commercial fishing industry, by
producing many new gear innovations, markets, and management
options. Issues addressed have included fish harvesting, seafood
quality improvements, domestic and foreign market development,
efficiency and productivity improvements, and the
costs/profitability of potential fishing industry investments.
Unfortunately, the S-K allocation to NOAA has often been used
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for operating expenses and occurs at the expense of the
competitive grants program. Additionally, Congressional earmarks
in 2003 and 2006 effectively eliminated the competitive grants
programs.
The size of the revenue stream on the import of fish and fish
products has grown steadily as domestic seafood production has
dropped and imports have expanded. Today, the U.S. imports 84%
of its seafood, and is burdened by a $9.36 billion trade deficit
in seafood alone. Over the last decade, roughly $400 million
that should have been spent on U.S. fishing industry projects
have been diverted to NOAA operating costs.
The author and sponsors have introduced this bill "to encourage
the federal government to support funding for domestic seafood
marketing and promotional activities which will provide
sustainable marketing funds for California fish and seafood
producers. This investment will increase the value of the
state's fisheries, increase the viability of our fishing
industries, and create jobs based on a healthy and renewable
resource. This economic growth will also increase tax revenues
across local, regional, and state levels. The result of a
sustained investment in fish and seafood marketing will also
benefit consumers. The multiple health benefits of seafood have
been proven many times. Consumers who eat more fish and seafood
will be healthier, with less chronic diseases. With concerns
over the future of healthcare costs in the U.S., promotion of
healthy diets is an important policy issue."
Further, the author states that "American fish and seafood
products are increasingly forced to compete with imported
products. Consequently, the California seafood industry
struggles to maintain a healthy business profile. Fishing jobs
are being lost and fishery dependent communities are in decline,
promoting an unbalanced consolidation of the industry and a
consistently shrinking waterfront based economy. Frequently, our
fishing industry does not have adequate funds available for
market research and development of new products demanded by
consumers. The fish and seafood industry suffers from repeated
disasters, both natural and man-made. During these times, the
damages to the fish and seafood markets are significant. A
mature and long-term marketing program allows for a timely and
effective response during these troubled times which minimizes
market damages and maximizes marketing opportunities. It is in
the interest of the California to maintain a strong fish and
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seafood industry for both the health of its population and the
health of the economy."
REGISTERED SUPPORT / OPPOSITION :
Support
None on file.
Opposition
None on file.
Analysis Prepared by : Mandy Arens / W., P. & W. / (916)
319-2096