BILL ANALYSIS                                                                                                                                                                                                    �





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          |                                                                 |
          |         SENATE COMMITTEE ON NATURAL RESOURCES AND WATER         |
          |                   Senator Fran Pavley, Chair                    |
          |                    2013-2014 Regular Session                    |
          |                                                                 |
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          BILL NO: AB 504                    HEARING DATE: June 24, 2014  
          AUTHOR: Chesbro                    URGENCY: No  
          VERSION: April 24, 2014            CONSULTANT: Toni Lee 
          DUAL REFERRAL: No                  FISCAL: Yes  
          SUBJECT: Fish: sea cucumbers: transgenic fish.
          
          BACKGROUND AND EXISTING LAW
          AB 504 is an omnibus aquatic animal bill that addresses sea  
          cucumber fishing permits and hatchery production and stocking of  
          transgenic fish. 

          1) Sea Cucumbers
          Existing law (Fish and Game Code (FGC) �8405 et seq.)  
          establishes a limited-entry permitting program for the sea  
          cucumber fishery in California. These provisions will remain in  
          effect until April 1, 2015 and will be repealed as of January 1,  
          2016.

          Sea cucumbers are long, soft-bodied marine invertebrates that  
          feed on organic detritus and small organisms through ingesting  
          sediments and muds. In California, commercial fisheries exist  
          for two species of sea cucumber: the California or giant red sea  
          cucumber, Parastichopus californicus, and the warty sea cucumber  
          Parastichopus parvimensis. The California sea cucumber is fished  
          almost exclusively through diving, while the warty sea cucumber  
          is caught primarily through trawling. Most of the California  
          harvest is shipped to overseas (Hong Kong, Taiwan, mainland  
          China, and South Korea) or domestic Asian markets. Consumption  
          of sea cucumbers within many Asian communities is thought to  
          provide health benefits. Western medical researchers are also  
          investigating the efficacy of certain cucumber chemical extracts  
          as arthritis treatments or nutritional supplements. 

          In 1992, the legislature enacted a moratorium on the issuance of  
          sea cucumber permits and a prohibition on the transfer of  
          permits to encourage the study of the state of the sea cucumber  
          fishery. Sea cucumbers are an important part of the ocean  
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          ecosystem and populations are particularly vulnerable to  
          overfishing due to a variety of factors. AB 2628 (Ch. 585,  
          Stats. 1996) established a limited entry sea cucumber permitting  
          program in 1997, capping the maximum number of active permits in  
          subsequent years at the amount issued between April 1st, 1997  
          and March 31st, 1998 (114 diving and 36 trawl permits). This  
          legislation also created separate permits for sea cucumber  
          fishing through diving and trawling, established a permit  
          transfer procedure, and added a permit transfer fee.

          DFW reports that in 2006, fishing revenue from the commercial  
          harvest of sea cucumber was $188,000 ex-vessel (pre-processed  
          sea cucumbers) and contributed $363,000 of business output in  
          California. In addition, total employment and wages from sea  
          cucumber that year equated to 7 jobs and $167,000, respectively.  



          2) Hatchery Production and Stocking of Transgenic Fish
          Existing law, the Salmon, Steelhead Trout, and Anadromous  
          Fisheries Program Act, requires DFW to prepare and maintain a  
          comprehensive program for the protection and increase of salmon  
          and steelhead trout (FGC �6900 et seq.). Anadromous fish, those  
          that live in the ocean and spawn in freshwater, fill critical  
          ecosystem roles as both top predators and as a food source for  
          others. California species include salmon (Chinook, coho and, to  
          a lesser extent, pink, sockeye) and the steelhead form of  
          rainbow trout. Almost all stocks are in decline compared to  
          historic populations due to a variety of causes. Many species  
          are listed under the California Endangered Species Act (CESA)  
          and the federal Endangered Species Act (ESA). 

          California is also home to several native species of freshwater  
          trout including cutthroat, golden, and resident rainbow trout.  
          Although, again, populations of many species are declining,  
          several species serve as popular gamefish. In particular,  
          rainbow trout has become one of the most widespread hatchery  
          fish due to their rapid reproductive capabilities and disease  
          resistance. This popularity, however, has drawbacks as rainbows  
          can hybridize with other species (leading to the extirpation and  
          near extinction of native species in some locations), introduce  
          diseases, and compete with or consume other fish. Their large  
          size and history of use in science have also allowed rainbow  
          trout to become a model organism for carcinogenesis, toxicology,  
          comparative immunology, disease ecology, physiology, and  
          nutrition studies.

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          Existing law defines "transgenic" as genetically altered by 1)  
          introducing DNA from another species or 2) manipulating DNA  
          within the organism to achieve gene addition, deletion,  
          doubling, or movement in the genome (14 CCR �1.92). This  
          definition excludes individuals containing multiple copies of  
          the whole genome, including triploids (three copies).

          Existing law prohibits the cultivation of salmonids (including  
          salmon, trout, whitefish, and char), transgenic fish, and exotic  
          finfish in the Pacific Ocean within the jurisdiction of the  
          state (FGC �15007). Existing regulation does, however, allow DFW  
          to issue permits to import, possess, transport, rear, or  
          research transgenic aquatic animals, provided the animals are  
          maintained in closed-water systems equipped with an effluent  
          discharge and disinfection system that ensures against their  
          release (14 CCR �671.1). Release of transgenic aquatic animals  
          or their progeny into waters of the state is prohibited (14 CCR  
          �671.1(a)(8)(D)). 

          DFW owns and/or operates several anadromous fish and trout  
          hatcheries. These include ten salmon and steelhead hatcheries  
          serving as mitigation for spawning ground loss from dam  
          construction and 14 trout hatcheries used to provide stock  
          primarily for recreational fishing. Trout reared for  
          recreational stocking including rainbow, golden, cutthroat,  
          brown lake, and brook trout, as well as kokanee, coho, and  
          Chinook salmon. These species are stocked in "inland water,"  
          waters inaccessible to fish migrating from the ocean, for  
          recreational fishing opportunities. The ten DFW-operated salmon  
          and steelhead hatcheries rear and stock primarily Chinook, coho,  
          and steelhead in sea-connected waters. 

          Hatchery production of salmonids is associated with a number of  
          detrimental ecological effects. As hatchery fish exhibit reduced  
          survival, hybridization with wild fish can reduce the viability  
          of the population as a whole. While data are incomplete,  
          hatchery production appears to be almost entirely responsible  
          for the salmonid population in some reaches. Aside from  
          hatchery-related stocking, DFW oversees a number of additional  
          programs that release fish in state waters. Fish stocking has  
          been shown to spread disease and increase competition with and  
          consumption of native fish. 

          In 1989, the Canadian company AquaBounty genetically engineered  
          (GE) transgenic Atlantic salmon capable of growing to market  
          size (4-6 kg) a year earlier than their wild counterparts.   
          These AquAdvantage salmon contain DNA from Pacific Chinook  
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          salmon and ocean pout that elevate growth rates, allowing the  
          fish to reach full size faster than their wild counterparts.   
          Advocates tout the potential benefits of more efficient  
          aquaculture due to this technology.

          Since 1995, AquaBounty has sought approval of their GE Atlantic  
          salmon from US Food and Drug Administration (FDA). The proposal  
          would allow the retail sale of AquAdvantage salmon in the United  
          States, provided the fish are grown in land-based facilities in  
          Panama with a number of simultaneous and redundant containment  
          measures (i.e. cultivation of sterile females in fenced tanks).  
          There are considerable environmental concerns from scientific  
          and nonprofit entities about how effective these containment  
          measures will be in practice and the risks associated with the  
          release of these GE fish in the wild and to wild salmonid  
          stocks. The public-comment period for the draft environmental  
          assessment ended on April 26th, 2013, marking the most recent  
          update on the status of the application. 

          In response to AquaBounty's ongoing FDA approval process, there  
          have been numerous unsuccessful legislative attempts to  
          introduce regulations to label, restrict production, or limit  
          import of transgenic salmonid products. Three bills (AB 791 of  
          2001, Strom-Martin; AB 2962 of 2002, Strom-Martin; AB 88 of  
          2011, Huffmann) were introduced that would have mandated the  
          labeling of transgenic fish products. Additionally, AB 307  
          (Strom-Martin, 2002) would have prohibited the importation,  
          transport, possession, or live release of transgenic fish  
          without a permit, while SB 1525 (Sher, 2002) would have  
          completely banned the importation of transgenic fish and related  
          products into California. More directly, AJR 38 (Nation, 2002)  
          would have urged the FDA to deny AquaBounty's petition to market  
          GE salmon to consumers as food and impose a moratorium on the  
          domestic marketing, importation, and exportation of transgenic  
          fish. 

          PROPOSED LAW
          This bill:
                 Extends the operation of provisions governing the sea  
               cucumber fishery in the state until April 1, 2020 and would  
               repeal those provisions on January 1, 2021. 
                 Prohibits the hatchery production, stocking, spawning,  
               incubation, or cultivation any transgenic salmonid in  
               California.
                 Adds clarifying language to define "transgenic" using  
               the current (filed May 14, 2003) reading in Section 1.92 of  
               Title 14 of the California Code of Regulations.
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          ARGUMENTS IN SUPPORT
          The Natural Resources Defense Council and the Ocean Conservancy  
          state that stocking California waters with transgenic fish may  
          increase competition with native stocks for food and habitat,  
          leading to significant negative impacts on wild populations. The  
          Northcoast Environmental Center notes that Purdue University  
          researchers have found that "releasing transgenic fish to the  
          wild could damage native populations even to the point of  
          extinction." In addition the North Coast Environmental Center  
          references a University of Gothenburg study reporting that  
          transgenic fish are more resistant to toxics, potentially  
          leading to "increased ingestion of hazardous substances by  
          consumers."

          The Southern California Trawlers Association supports both the  
          ban on hatchery production and stocking of transgenic fish and  
          the extension of the sea cucumber permitting system. They  
          believe that negative effects could come through interbreeding  
          (despite claims that fish can be made sterile), competition for  
          food, predation, and the introduction of parasites and/or  
          diseases. Concerning the sea cucumber permitting program, the  
          Trawlers Association notes that sea cucumbers are "an important  
          part of the "portfolio" of species needed to keep our local  
          fishing community healthy and intact, or at a minimum, slow its  
          decline due to "the graying of the fleet." regulations and other  
          pressures on commercial fishing in the 21st Century." 

          ARGUMENTS IN OPPOSITION
          The opposition states that this bill "completely eliminates the  
          ability for the Department to grant a permit under very limited  
          circumstances to universities or other private research  
          companies related to transgenic salmon." They argue that a  
          blanket ban on transgenic salmon would significantly impact the  
          ability of DFW to authorize any research or development in the  
          future if warranted to study the safety and benefits from these  
          fish even in indoor controlled settings. To address these  
          concerns, the opposition suggests amending the bill to reflect  
          current DFW regulations to allow a permit to be granted under  
          very strict circumstances. 

          COMMENTS 
           Sea Cucumber Permitting
           1.Unless the provisions creating and guiding the sea cucumber  
            permitting program are extended, restraints on the commercial  
            fishing of sea cucumbers will become inoperative on April 1st,  
            2015 and will be repealed on January 1st, 2016. While this  
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            sunset date has been repeatedly extended in the past, it is  
            unknown if the current levels of fishing effort and harvest  
            are sustainable. DFW has recently conducted water surveys on  
            sea cucumber populations that will likely become available in  
            2015. The precautionary principle argues for extending the  
            sunset given the overfishing risks and potentially significant  
            adverse effects on the fishery and the ecosystem that could  
            result. If the studies reveal critically low population  
            levels, this legislation does not prevent the Fish and Game  
            Commission from adopting additional regulations necessary to  
            protect the resource and ensure sustainability pursuant to FGC  
            �8405.3. 

          2.The restricted access regulations imposed on the dive and  
            trawl sea cucumber fisheries in 1997 have contributed to a  
            reduction in the number of licensed harvesters engaged in sea  
            cucumber fishing. In 2000, there were 113 sea cucumber diving  
            permitees and 36 trawl sea cucumber permitees generating a  
            collective take of 600,875 pounds of sea cucumbers. By 2012,  
            83 diving and 6 trawl permitees remained, collecting a total  
            of 470,475 pounds. Current law also encourages a reduction in  
            trawl permits; Sea cucumber dive permits are not transferrable  
            to trawl permits, while trawl permits may remain trawl permits  
            or may be converted to dive permits. Trawling has been linked  
            to the disturbance of sea cucumber habitats.  

          3.Like earthworms, sea cucumbers can alter the structure of the  
            soils and sediments in a process called bioturbation. This  
            action releases nutrients trapped in sediment, reduces algal  
            growth, and creates habitat for other benthic organisms  
            through softening the seafloor. Studies have linked the  
            overfishing of sea cucumbers to seafloor hardening and habitat  
            destruction. In addition, sea cucumbers and their eggs,  
            larvae, and juveniles play a role in coral reef and temperate  
            food webs, serving as prey for fish, sea stars, sea otters,  
            and crustaceans. As filter feeders, sea cucumbers improve  
            water quality through affecting pH and reducing bacteria,  
            microalgae, and detritus levels.

          4.Sea cucumbers exhibit sporadic recruitment (juvenile  
            survival), relatively high natural mortality, and slow growth,  
            characteristics that render these animals particularly  
            vulnerable to overfishing. Fishery independent data obtained  
            through the Channel Islands National Parks Service demonstrate  
            that populations of warty sea cucumber experienced peak levels  
            in 1990, but have shown a general decline in subsequent years.  
            Evidence from sea cucumber fisheries in the Torres Strait near  
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            Australia, the Great Barrier Reef, and the Red Sea near Egypt  
            demonstrate that populations may take decades to recover, even  
            amidst complete harvest prohibitions.

           Transgenic Fish 
           1.Given the numerous existing threats to wild salmonid  
            populations, introducing an additional potential stressor may  
            prove contrary to the objectives of the Salmon, Steelhead  
            Trout, and Anadromous Fisheries Program Act. 

          2.As written, this bill has the potential to disrupt scientific  
            studies using transgenic salmonids. The author has agreed to  
            take amendments clarifying that scientific research using  
            these organisms can continue under a DFW-issued permit.

          3.According to DFW, while the history of private trout  
            production in California is strong and extends to the 1800s,  
            private salmon culture has been intermittent and  
            insubstantial. Land-based aquaculture of salmon, has never  
            contributed more than 5% to the total value of the industry's  
            production and no commercial farmed salmon operations existed  
            in California as of 2008. Laboratory tests have demonstrated  
            that rainbow trout can be genetically enhanced for faster  
            growth in a similar fashion as Atlantic salmon. This bill is  
            sufficiently broad to provide regulatory safeguards should  
            genetically enhanced rainbow trout become a commercial  
            possibility.

          4.With regards to limiting the cultivation and stocking of  
            transgenic fish, the bill is specific to salmonids. This bill  
            does not preclude those activities using other fish species. 

          5.According to the National Conference of State Legislatures,  
            although no state has banned the cultivation and stocking of  
            transgenic fish in state waters, four other states have passed  
            legislation restricting the use of these fish. In 2013, Alaska  
            issued a resolution urging the US Food and Drug Administration  
            to reconsider a preliminary finding that genetically modified  
            fish would not significantly impact the environment and  
            require labeling the fish as transgenic if the product is  
            approved. Maryland and Mississippi require permits for  
            stocking transgenic fish. In Maryland, a permit can only be  
            obtained if the operator can assure that the stock cannot  
            co-mingle with other fish stocks or be released in any body of  
            water. In addition to existing law, legislators in Alaska and  
            Oregon, exporters of wild salmon, have repeatedly (and  
            unsuccessfully) attempted to ban the use of transgenic fish to  
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            prevent contamination of wild stocks and drops in the price of  
            wild fish. 

          SUGGESTED AMENDMENTS
          Add language clarifying that scientific research using  
          transgenic salmonids can continue under a DFW-issued permit,  
          provided DFW finds that the fish are kept in closed systems and  
          do not detrimentally affect agriculture, ocean ecosystems,  
          native fish and wildlife, or public health or safety.
          
          






          SUPPORT
          CalTrout
          Golden Gate Salmon Association
          National Resources Defense Council
          Northcoast Environmental Center
          Ocean Conservancy
          Pacific Coast Federation of Fisherman's Associations
          Sierra Club California
          Southern California Trawlers Association 

          OPPOSITION
          All of the following are opposed unless amended as described in  
          the arguments in opposition:
          BayBio
          BIOCOM
          Biotechnology Industry Organization 
          California Healthcare Institute 













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