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 2075                   HEARING DATE: June 10, 2014
          AUTHOR: Alejo                      URGENCY: No
          VERSION: March 28, 2014            CONSULTANT: Katharine Moore
          DUAL REFERRAL: No                  FISCAL: No
          SUBJECT: Crimes: importation or sale of endangered animals.
          
          BACKGROUND AND EXISTING LAW
          1.Existing law makes it unlawful to import into California for  
            commercial purposes, to possess with intent to sell, or to  
            sell within the state, the dead body, or any part or product  
            thereof, of specified wild animal species that are not native  
            to California.  Violation of this prohibition is punishable as  
            a misdemeanor subject, as specified, to fine, imprisonment, or  
            both.

          2.Existing law makes it unlawful starting on January 1, 2015 to  
            import into California for commercial purposes, to possess  
            with intent to sell, or to sell within the state, the dead  
            body, or any part or product thereof, of a crocodile or  
            alligator.  Importation, possession and sale of such products  
            are allowed in the state until that date, although the law  
            does not authorize the importation or sale of any alligator or  
            crocodile species, or any products thereof, that are listed as  
            endangered under the federal Endangered Species Act or where  
            such action would violate federal law or international treaty  
            to which the United States is a party.

          3.Prior to 2006, California law prohibited the importation of  
            products made from alligators or crocodiles for commercial  
            purposes.  SB 1485 (Hollingsworth, c. 660, Statutes of 2006)  
            lifted the prohibition until January 1, 2010.  Analyses of  
            that bill noted that this action could put increased pressure  
            on wild stocks or lead to more harvesting of endangered or  
            threatened species that resemble species taken legally.  SB  
            609 (Hollingsworth, c. 15, Statutes of 2009) extended the  
            sunset until January 1, 2015.

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          4.The American alligator was listed as endangered under federal  
            law in 1967.  Due to substantial recovery of the species, it  
            was reclassified in 1987 to "threatened due to similarity of  
            appearance" with other endangered or threatened alligator or  
            crocodile species.  The US Fish and Wildlife Service regulates  
            the harvest of and legal trade in alligators and alligator  
            products and parts, as part of its efforts to prevent the  
            illegal take and trafficking of endangered, but similar  
            looking, species.

          5.Trade in the American alligator represents about 60% of  
            world-wide trade in alligator and crocodile species.  While  
            the American alligator is recognized as an example of  
            successful conservation through sustainable management, nearly  
            20 other species of alligators and crocodiles are listed as  
            endangered or threatened world-wide.  Nine of these species  
            are used in commercial trade.

          6.The Convention on International Trade in Endangered Species of  
            Wild Flora and Fauna (CITES) regulates trade of alligators and  
            crocodiles and requires that all legal hides be tagged to  
            distinguish them from listed species that are not permitted to  
            be legally traded. The export of alligator skins and products  
            has been regulated by CITES since 1975. The American alligator  
            is listed on Appendix II of CITES because of its similarity of  
            appearance with other endangered crocodilian species. Once the  
            hides are made into products, however, the products do not  
            carry tags.

          7.All countries are required to submit annual reports on  
            alligator and crocodile harvest to CITES, but not all do.   
            While the U.S. files reports, some countries, including  
            Bolivia, Cambodia, Ethiopia, Guyana, Malawi, Panama and  
            Nicaragua, have not.  The 2012 CITES report notes significant  
            improvement in reporting, but adds that "incomplete data due  
            to late submission or failure to submit CITES annual reports  
            remains an impediment to conducting trade studies using CITES  
            trade data."  CITES attempts to match import data with  
            original export permit information.

          8.In Louisiana, the hunting season for American alligators was  
            reopened in select areas starting in 1972, and then statewide  
            in 1981. In order to export alligator hides and products, the  
            state of Louisiana is required by USFWS and CITES regulations  
            to certify annually that the harvest programs will not be  
            detrimental to the survival of the species. In the summer 2012  
            survey, the Louisiana Department of Wildlife and Fisheries  
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            (LDWF) estimated that there were 42,151 wild alligator nests  
            present in coastal marsh habitats, an 18% increase from 2011.  
            Annual harvest quotas are established for different habitat  
            areas based upon these surveys. The LDWF estimates the current  
            statewide population of alligators at approximately 1.5  
            million animals. The LDWF also regulates the collection of  
            alligator eggs from the wild which are then grown in captivity  
            on alligator farms. Egg collection is subject to permitting  
            and is estimated to be less than half of the total number of  
            eggs produced in the wild statewide. Additionally, the LDWF  
            requires that 12% of the juvenile alligators hatched from the  
            eggs be returned to the wild within 2 years of hatching, and  
            the released alligators are tagged for follow-up monitoring.   
            According to the Association of Fish and Wildlife Agencies,  
            the recent annual harvest in Louisiana is approximately 34,000  
            wild alligators and 290,000 farm-raised alligators.

          9.Lately, issues have been raised regarding the appropriate  
            humane methods for slaughter of farm-raised alligators.  
            Research has been conducted and a report, "Best Management  
            Practices for Louisiana Alligator Farming," issued.  The  
            recommended methods have been approved by the American  
            Veterinary Medicine Association. The LDWF plans to promulgate  
            regulations for the humane slaughter of farm-raised alligators  
            within the next few months.

          10.In 2009, coastal flooding and tropical weather limited egg  
            collection and many farmers decided to skip collecting eggs  
            that year. The economic recession also decreased demand for  
            farm-raised alligator skins, and many farmers were unable to  
            sell the skins. The market has recovered since then and  
            reached pre-recession levels by 2013.

          PROPOSED LAW
          This bill would extend the sunset date by ten years - from  
          January 1, 2015 to January 1, 2025 - of the law permitting trade  
          and possession, as specified, in alligator and crocodile  
          species, product or parts thereof.

          ARGUMENTS IN SUPPORT
          According to the California Retailers Association, "The  
          alligator and crocodile trade is valued at approximately $1  
          billion per year globally.  In addition to product sales, the  
          significance of this trade's economic contribution to California  
          manufacturing, retail, and other fashion and design jobs and  
          commerce is truly remarkable. [?] AB 2075 would give these  
          important industries certainty by extending the sunset date for  
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          [Penal Code section] 653(o) to January 1, 2025 to allow for  
          trade to continue to benefit California's economy and protecting  
          all impacted industries in the trade such as manufacturing,  
          retail and fashion and design." 

          Numerous retailers located in Beverly Hills echoed these  
          comments and added, "the City of Beverly Hills is famous around  
          the world for its diverse and comprehensive luxury retail  
          offerings and the prohibition of these skins would place our  
          city - and our state - at a great competitive disadvantage with  
          other states where there is no such prohibition." 

          The Secretary of the Louisiana Department of Wildlife and  
          Fisheries states, "The economic incentive from legal, sustained  
          utilization of alligators leads to wetlands conservation, as  
          landowners manage, maintain, and enhance their wetlands to  
          ensure habitat is available for alligators and other fish and  
          wildlife species." 

          ARGUMENTS IN OPPOSITION
          According to the Humane Society of the United States, "The  
          rationale for Penal Code 653(o) is to ensure California does not  
          contribute to the commercial trade in species who face global  
          threats that are threatening or endangering them. All 23 species  
          of large crocodiles and alligators have been overexploited and  
          each species is in listed at some degree of threat on CITES  
          Appendix I or II. The skins of crocodiles and alligators that  
          are taken from farmed animals must attach a uniquely numbered,  
          non-reusable tag. But these tags are not included with every  
          individual finished product (e.g., purse, shoes, etc.) that is  
          made from those skins. Thus, Californians could end up  
          purchasing products made from critically endangered animals -  
          undermining the entire reason for California's protective  
          statute."

          "A ten year extension of the sunset on the existing law allowing  
          the importation of these skins is excessive, especially since  
          prior legislation only extended it four years and five years,  
          respectively. If this bill is to move forward, we strongly  
          recommend shortening the time horizon until this issue is  
          considered again."

          The Turtle Island Restoration Network writing in opposition  
          notes that, "the state of Louisiana is under fire from the  
          conservation and animal rights communities for its failure to  
          protect endangered species and other animals."

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          COMMENTS 
           Appropriate period for the sunset extension  ? Commercial trade in  
          kangaroo parts in California is currently allowed under a 5 year  
          sunset.  There are similar issues of potential trade in  
          endangered species parts, particularly after processing.   
          Additionally, according to information provided by the author's  
          office, most alligators are slaughtered at one year for their  
          skins - a short time horizon - and new regulations related to  
          harvesting have not yet been promulgated.  While compliance with  
          CITES is improving, gaps remain.  Therefore the Committee may  
          wish to extend the sunset for 5 years, instead of 10 years, to  
          ensure that efforts to improve harvesting and compliance  
          continue and that populations continue to thrive [Amendment 1]. 

          SUGGESTED AMENDMENTS 

               AMENDMENT 1  
               Page 2, line 5: delete "2025" and replace with "2020" so  
               the line reads:
               "(b)(1) Commencing January 1, 2020, it shall be unlawful"



          SUPPORT
          California Retailers Association (sponsor)
          Association of Fish and Wildlife Agencies
          American Tanning & Leather LLC
          American Watch Association
          Battaglia Beverly Hills
          Belair Time Corporation
          Beverly Hills Chamber of Commerce
          Brooks Brothers
          California Chamber of Commerce
          California Restaurant Association
          Crocodile Specialist Group
          Farbod Barsum 
          Fashion World, Inc.
          Fendi Beverly Hills Center
          Gearys Beverly Hills
          Horiuchi Trading Co.
          Hublot Boutique Beverly Hills
          IWC North America
          LANVIN
          Loro Piana
          Louisiana Alligator Advisory Council
          Louisiana Department of Wildlife and Fisheries 
          Maxfield
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          Rhonda Ochs, LLC
          Richard Mille Boutique
          Scoop NYC
          Sloane Two Rodeo, LLC
          Stefano Ricci
          Swatch Group, Ltd.
          United States Representative, Honorable Charles Boustany
          United States Senator, Honorable Mary Landrieu
          West Hollywood Chamber of Commerce
          Westime
          One Individual

          OPPOSITION
          The Humane Society of the United States
          Turtle Island Restoration Network
































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