Bill Summary – FastDemocracy

Legislative Analysis
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AMEND REQUIREMENTS RELATED TO FISH CATCH
                                                                            http://www.house.mi.gov/hfa
AND PURCHASE REPORTING
                                                                            Analysis available at
Senate Bill 441 (S-1) as reported from House committee                      http://www.legislature.mi.gov
Sponsor: Sen. Sue Shink
House Committee: Natural Resources, Environment,
  Tourism, and Outdoor Recreation
Senate Committee: Natural Resources and Agriculture
Complete to 11-8-23
SUMMARY:
       Senate Bill 441 would amend several sections of the Natural Resources and Environmental
       Protection Act (NREPA) relating to required reporting that must be done by certain individuals
       licensed to participate in commercial fishing and wholesale fish sales in Michigan waters. The
       bill would amend the following sections of NREPA:
       Section 44508
       The bill would amend this section by eliminating a requirement that the Department of Natural
       Resources (DNR) form a Catch Activity Committee (such a committee does not appear to be
       active, according to the DNR’s website) as well as by modifying the frequency of reports that
       must be submitted. Specifically, the frequency would shift reporting from once per month to
       twice per month, and the bill would also add language to this section stating that if a consent
       decree, decree, federal court order, memorandum of understanding, or other legally binding
       agreement established a more frequent reporting timeline, then charter boat operators must
       adhere to that more frequent reporting timeline. The DNR would determine that manner,
       frequency, and information contained in a catch activity report. Presently, reports must be
       submitted prior to the tenth of each month and a charter boat operator must submit a report for
       each boat under their control during the previous month. This current provision would be
       eliminated by the bill.
       Under the bill, if a charter boat operator failed to submit the required report within 30 days of
       being notified of the report being delinquent, then the DNR could revoke the state certificate
       of inspection issued for that vessel. Under current law, the delinquency notice for a report is
       issued 30 days after its due date and must be delinquent for 60 days before that action can be
       taken.
       Section 44524
       This section would be amended by adding penalties specific to a failure to submit a required
       catch activity report by its due date. Violations would be categorized as a state civil infraction
       and would carry a civil fine as follows:
           • First violation during a calendar year- $100 fine.
           • Second violation and subsequent violations during a calendar year- $200 fine.
       Additionally, individuals who fail to submit reports for two or more reporting periods during a
       calendar year and have been cited by the DNR for failure to submit those reports would have
       their authorization to operate a charter boat revoked until the reports are submitted.
House Fiscal Agency                                                                           Page 1 of 3
       Section 47325
       This section contains reporting requirements for individuals taking fish for market in bodies of
       water covered by Part 473 of NREPA (The Great Lakes and the Connecting Waters). The bill
       would strike those requirements from this section and replace them with language mirroring
       the DNR’s ability to determine the necessary information for these reports that applies to
       reports filed by charter boat operators. The bill would also add a similar provision regarding a
       legally binding agreement and reports having to be filed more frequently than twice per month.
       The penalties for failing to submit a required report would also mirror those that apply to
       charter boat operators, with a person who holds a commercial fishing license facing suspension
       of that license if they fail to submit reports in two or more reporting periods. If a license is
       suspended by the DNR, then its holder could not sell or transfer that license until the suspension
       is lifted.
       Section 47333
       This section requires any individual who deals in fish by operating a wholesale fish market or
       fish house, or who solicits the purchase of, or buys fish for, wholesale distribution to obtains a
       license from DNR. The bill would require that individuals holding this license submit reports
       of all fish purchases to the department twice per month in a manner prescribed by the
       department. Like the other reporting requirements added by the bill, if a legally binding
       agreement required reporting more frequently than twice per month, then that frequency would
       have to be followed. Penalties for failing to submit these reports as required would also follow
       the same penalty structure, with failure to report two or more reports cause for the department
       to suspend the individual’s license until the delinquent reports are submitted. Two or more
       delinquent reports would also be cause for the DNR to deny an individual a new license
       application or license renewal until the outstanding reports are submitted. The department
       would also be prohibited from issuing a wholesale fish dealer license to a person who would
       occupy the same business location as a wholesale fish dealer whose license is suspended.
       Section 47327
       The bill would also amend section 47327 by making complementary changes that incorporate
       the amendments described above.
        MCL 324.44508 et seq.
BACKGROUND AND BRIEF DISCUSSION:
       On August 24, 2023, a consent decree between the United States government, the state of
       Michigan, and Michigan’s five federally recognized tribes took effect. This decree updated an
       earlier 2000 agreement regarding fishing in waters covered by an 1836 treaty (which was itself
       an update to a 1985 agreement regarding hunting and fishing rights of the tribes on the lands).
       Those waters include portions of the Great Lakes that border Michigan1.
       Part of the consent decree requires the state of Michigan and the five tribes to share certain
       information about the fish caught by individuals licensed by each government. To facilitate
       this required information sharing, the DNR has requested statutory authority to revise the
1
 Maps of waters subject to the 1836 treaty: https://www.michigan.gov/dnr/-
/media/Project/Websites/dnr/Documents/Fisheries/TCU/2023GL_Decree/AppC_Maps.pdf
House Fiscal Agency                                  SB 441 as reported from House committee   Page 2 of 3
       reporting requirements for individuals they license who engage in commercial fishing, charter
       boat operations, and purchasing of fish on a wholesale level to match the provisions of the
       consent decree, as the tribes that are part of the consent decree are already doing.
        Waters that are eligible for commercial fishing operations are broken into units, with licensees
        only able to fish in their assigned units, taking the specified numbers and species of fish in
        accordance with other conditions of their license. The consent decree contains provisions
        relating to which government may license individuals to fish in each unit.
        While supporters of the bill say that it is a straightforward change to statute to allow the state
        to carry out its legal obligations under the consent decree, opponents take issue with requiring
        all Michigan licensees, not just those who are fishing in waters that fall under the purview of
        the 1836 treaty, to adhere to more frequent reporting requirements, as well as the broader
        authority offered to the DNR to implement reporting requirements rather than specifying that
        changes to reporting must only align to the consent decree.
FISCAL IMPACT:
        Senate Bill 441 may increase administrative costs for the Department of Natural Resources if
        enforcement actions allowable under the bill are executed; the extent of this potential cost
        increase is likely to vary with infraction frequency. The department’s FY 2023-24 budget totals
        $572.2 million Gross ($88.1 million GF/GP); Fisheries Division’s FY 2023-24 budget totals
        $34.5 million Gross ($1.2 million GF/GP). The bill is unlikely to affect departmental revenues,
        local government costs, or local government revenues.
POSITIONS:
        Representatives of the Department of Natural Resources testified in support of the bill.
        (10-12-23)
        The Upper Peninsula Environmental Coalition indicated support for the bill. (10-26-23)
        Representatives of the following entities testified in opposition to the bill (10-12-23):
           • Michigan Fish Producers Association
           • Michigan Charter Boat Association
                                                            Legislative Analyst: Josh Roesner
                                                                 Fiscal Analyst: Austin Scott
■ This analysis was prepared by nonpartisan House Fiscal Agency staff for use by House members in their
deliberations and does not constitute an official statement of legislative intent.
House Fiscal Agency                                   SB 441 as reported from House committee   Page 3 of 3
Statutes affected: 
Substitute (S-1): 324.44508
Substitute (H-1): 324.44508
Senate Introduced Bill: 324.44508
As Passed by the Senate: 324.44508
As Passed by the House: 324.44508
Senate Concurred Bill: 324.44508
Public Act: 324.44508
Senate Enrolled Bill: 324.44508