1350.HBR2

HOUSE BILL REPORT

HB 1350

As Reported By House Committee On:

Fisheries & Wildlife

Appropriations

Title: An act relating to commercial shrimp fishing licenses.

Brief Description: Requiring pink shrimp endorsements.

Sponsors: Representatives King, Fuhrman, Basich, Wood, Orr, Tate, Johanson and Foreman.

Brief History:

Reported by House Committee on:

Fisheries & Wildlife, February 12, 1993, DPS;

Appropriations, March 3, 1993, DPS(FW).

HOUSE COMMITTEE ON FISHERIES & WILDLIFE

Majority Report: The substitute bill be substituted therefor and the substitute bill do pass. Signed by 8 members: Representatives King, Chair; Orr, Vice Chair; Sehlin, Assistant Ranking Minority Member; Basich; Chappell; Foreman; Lemmon; and Scott.

Staff: Keitlyn Watson (786-7310).

Background: Entry into several commercial fisheries in Washington is restricted by statute. The harvest of ocean pink shrimp is not subject to any such limitations in Washington. Since the actual harvest occurs in the ocean outside of Washington waters, the state does not issue licenses for harvest. However, a shellfish delivery license is required to land shrimp, as well as all other commercially harvested shellfish, in Washington.

In 1979 the Oregon Legislature, in response to concerns about potential overcapitalization of the pink shrimp fishery as well as resource exploitation, limited the number of vessels that could land pink shrimp in Oregon. There is concern on the part of the pink shrimp industry that the potential for overcapitalization and resource exploitation still exist without a comparable limitation in Washington.

Summary of Substitute Bill: After December 31, 1993, an ocean pink shrimp delivery license or ocean pink shrimp single delivery license is required to deliver pink shrimp caught in offshore waters to a port in Washington state. The annual license fee for an ocean pink shrimp delivery license is $150 for residents and $300 for nonresidents, and this license is transferable. The license fee for an ocean pink shrimp single delivery license is $100. The ocean pink shrimp delivery license shall be issued to a vessel that:

!Landed 5,000 pounds of pink shrimp in Washington in any one year between January 1, 1983 and December 31, 1992;

!Possessed one of the following licenses each year since the most recent landing:

- a Washington delivery permit or delivery license or an other than Puget Sound trawl license;

- an Oregon vessel permit; or

- a California trawl permit;

!Was in the process on December 31, 1992, of constructing a vessel for the purpose of ocean pink shrimp harvest. A license issued in this instance would expire on December 31, 1994, unless the vessel lands 5,000 pounds of pink shrimp into Washington ports prior to that date; or

!Is a replacement vessel for a vessel otherwise eligible for an ocean pink shrimp delivery license.

After December 31, 1994, an ocean pink shrimp delivery license may only be issued to a vessel that held an ocean pink shrimp delivery license in 1994 and each year thereafter. If the failure to hold a license in any given year was the result of a license suspension, the vessel may qualify if the vessel held an ocean pink shrimp delivery license in the year immediately preceding the year of the suspension.

If the license is transferred to another vessel, the license history shall also be transferred.

The director of the Department of Fisheries is directed to appoint a three member advisory review board consisting of members of the commercial ocean pink shrimp industry to hear cases involving parties aggrieved under the ocean pink shrimp delivery license eligibility provisions. The director may reduce but may not waive landing requirements for pink shrimp if the advisory review board so recommends based on extenuating circumstances, which are to be defined by rule of the director.

The owner of an ocean pink shrimp fishing vessel which does not qualify for an ocean pink shrimp delivery license must obtain an ocean pink shrimp single delivery license in order to make a landing into a state port of ocean pink shrimp taken in offshore waters. Such a license may only be issued if a bona fide emergency exists. A maximum of six ocean pink shrimp single delivery licenses may be issued annually to any such vessel.

Substitute Bill Compared to Original Bill: The original bill creates a pink shrimp endorsement, free of charge, to land pink shrimp in Washington ports. The substitute bill creates two licenses: an ocean pink shrimp delivery license and an ocean pink shrimp single delivery license, and charges fees for these licenses.

The landing requirements that must be met in order for a vessel to land ocean pink shrimp in Washington are changed from 5,000 pounds in any single year prior to December 31, 1992, to the same amount in any single year between January 1, 1983 and December 31, 1992. The substitute bill also adds an eligibility requirement of possession of one of several specified commercial licenses issued in Washington, Oregon, or California, every year since the 5,000 pound landing.

Transferability requirements in the original bill are removed, but the license remains transferable. A provision is added that specifies that if the license is transferred to another vessel, the license history is transferred with the license.

The effective date of the ocean pink shrimp delivery licensing requirement is changed from the effective date of the act to December 31, 1993.

A provision is added that conditions issuance of an ocean pink shrimp delivery license after December 31, 1994, on possession of such a license in 1994 and each year thereafter.

The director's authority to waive landing requirements for certain extenuating circumstances in ocean pink shrimp delivery licensing is removed. Authorization is given to the director to reduce such a requirement.

The original bill allows vessels that do not qualify for or possess the shrimp endorsement to make six single landings per year of ocean pink shrimp in Washington if the vessel is licensed to commercially fish in another state. The substitute bill restricts the requirements for such landings to only those individuals that are owners of ocean pink shrimp fishing vessels and to situations that are bona fide emergencies.

Fiscal Note: Requested February 15, 1993.

Effective Date of Substitute Bill: Ninety days after adjournment of session in which bill is passed.

Testimony For (On Original Bill): The provisions of the bill will avoid overcapitalization of the fishery and resource depletion without eliminating existing fishers. The shrimp fleet is currently at capacity.

Testimony Against (On Original Bill): None.

Witnesses (On Original Bill): Mary Lou Mills, Department of Fisheries (supports concept of capping the fishery, but has concerns about constitutionality of the means used in the bill and some technicalities. These concerns are relieved in the substitute bill); Dave Duncan, John Oakes and Ray Toste, Fisherman's Marketing Association (pro); and Jim Blunt, Coast Draggers Association (pro).

HOUSE COMMITTEE ON APPROPRIATIONS

Majority Report: The substitute bill by Committee on Fisheries & Wildlife be substituted therefor and the substitute bill do pass. Signed by 25 members: Representatives Locke, Chair; Valle, Vice Chair; Silver, Ranking Minority Member; Carlson, Assistant Ranking Minority Member; Appelwick; Ballasiotes; Basich; Cooke; Dellwo; Dorn; Dunshee; Jacobsen; Lemmon; Linville; Morton; Peery; Rust; Sehlin; Sheahan; Sommers; Stevens; Talcott; Wang; Wineberry; and Wolfe.

Staff: Susan Nakagawa (786-7145).

Summary of Recommendation of Committee on Appropriations Compared to Recommendation of Committee on Fisheries & Wildlife: No new changes were recommended.

Fiscal Note: Available.

Effective Date: Ninety days after adjournment of session in which bill is passed.

Testimony For: This bill is necessary to avoid overcapitalization of the resource. The fishing industry supports the bill and is willing to pay license fees to make the program self-supporting. The department will generate revenue adequate to cover the costs.

Testimony Against: None.

Witnesses: Ed Owens, Coalition of Washington Ocean Fishermen (pro); and Cyreis Schmitt, Department of Fisheries (pro).