Assembly Bill 1354, authored by Assemblymember Patty Berg (D - Eureka) was signed into law by the Governor. AB 1354, also known as the Commercial Fisheries Capacity Reduction Program, will allow for the purchase of federal ground-fish permits from willing sellers should the fishing industry vote to participate.

Earlier this year, Congress established a buy-back program and loan fund for the pacific groundfish fishery after the U.S. Secretary of Commerce declared the pacific groundfish fishery a disaster.

The fishing industry must now decide, by passing a referendum, whether to participate in the buy-back program. The fishing industry ballots will be sent to groundfish, pink shrimp, and crab fishermen this week, and must be returned by October 29, 2003. If the referendum is successful, the money made available for this program will be in the form of a loan from the federal government and will be repaid by those fishermen remaining in the fishery.

AB 1354 establishes California's mechanism to allow fisherman to repay the loan. Oregon and Washington have already passed legislation authorizing buy-back programs within their states for their commercial groundfish fishermen. Without assistance from the buy back program to reduce the fleet, some fisherman could fall into bankruptcy.

Berg said, “ I am pleased that the Governor has signed this important legislation. My bill gives fishermen the choice to reduce fishing efforts to participate in the federal buyback program."