BILL ANALYSIS �
------------------------------------------------------------
|SENATE RULES COMMITTEE | AJR 39|
|Office of Senate Floor Analyses | |
|1020 N Street, Suite 524 | |
|(916) 651-1520 Fax: (916) | |
|327-4478 | |
------------------------------------------------------------
THIRD READING
Bill No: AJR 39
Author: Chesbro (D), et al.
Amended: 8/8/12 in Senate
Vote: 21
ASSEMBLY FLOOR : 76-0, 6/14/12 (Consent) - See last page
for vote
SUBJECT : California seafood
SOURCE : Author
DIGEST : 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.
ANALYSIS : This resolution makes the following
legislative findings:
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.
CONTINUED
AJR 39
Page
2
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
domestic marketing and promotion of California seafood.
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 1970s, 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 Fishery
Conservation and Management Act requirements, NMFS began
AJR 39
Page
3
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 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 introduced this resolution "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
AJR 39
Page
4
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 seafood industry for both the
health of its population and the health of the economy."
FISCAL EFFECT : Fiscal Com.: No
SUPPORT : (Verified 8/14/12)
California Salmon Council
California Sea Urchin Commission
ASSEMBLY FLOOR : 76-0, 6/14/12
AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Beall, Bill
Berryhill, Block, Blumenfield, Bonilla, Bradford,
Brownley, Buchanan, Butler, Charles Calderon, Campos,
Carter, Cedillo, Chesbro, Conway, Cook, Davis, Dickinson,
Donnelly, Eng, Feuer, Fletcher, Fong, Fuentes, Furutani,
Beth Gaines, Galgiani, Garrick, Gatto, Gordon, Gorell,
Grove, Hagman, Halderman, Harkey, Hayashi, Roger
Hern�ndez, Hill, Huber, Hueso, Jones, Knight, Lara,
Logue, Bonnie Lowenthal, Ma, Mansoor, Mendoza, Miller,
Mitchell, Monning, Morrell, Nestande, Nielsen, Norby,
AJR 39
Page
5
Olsen, Pan, Perea, Portantino, Silva, Skinner, Smyth,
Solorio, Swanson, Torres, Valadao, Wagner, Wieckowski,
Williams, Yamada, John A. P�rez
NO VOTE RECORDED: Hall, Huffman, Jeffries, V. Manuel P�rez
JJA:d 8/15/12 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
**** END ****