CFSI Members,
For a number of months, we have been engaged in discussions relating to what has developed into a second allocation of federal funds that we refer to as CARES Act II. For the seafood industry and others engaged in fishing in some way (charter boats, commercial fishermen), the sum of $15.5 million has been allocated to the state to of California.
Last Friday, CFSI and others organizations participated in a call with the California Department of Fish and Wildlife (CDFW) to discuss the plan they hope to develop. It tracks what we suggested in many ways.
The original Coronavirus Aid, Relief, and Economic Security (CARES) Act provided $18 million to the industry in California and, while many of you received some $7800, it was a simplistic allocation that did not take into consideration the size of the affected businesses, which we argued (unsuccessfully) should be paid sums commensurate to the damages done/relief needed during the Q1 and Q2 2020. The state said they did not have the bandwidth to deal with it so they divided the $18 million by the number of businesses in the state that possessed a license or permit from the CDFW. The net result was the a larger seafood business received the same amount as a holder of a smaller commercial fishing or charter boat licensee. Adding insult to injury, some fishermen received three and four checks for $7800 because they held various permits, like pink shrimp, spot prawn, and so on.
There is a new spend plan in the works for the CARES Act II, a result of our steady messaging about the way allocations were made in the CARES Act I.
We’d like to share what you might expect to assure you receive an amount that more equitably reflects the hardship many of you experienced as a result of the COVID-19 pandemic, and what the CARES Act was intended to do.
Here’s a bullet point outline/timeline of what to expect in the coming weeks:
- By mid June, CDFW will send each commercial fishing business a postcard instructing them to follow the links that will provide details, including the application for relief, which will be administered by the Pacific States Marine Fisheries Commission (PSMFC).
- All claimants must state that they are filers of state taxes in California, to confirm state residency, and that you hold a commercial fish dealers license.
- Losses can be claimed for the entire 2020 year, must be for a minimum period of four weeks, and can be for the entire year 2020 (yes, including Q1 and Q2) as compared to a several year period prior to 2020. There will be an online application that should clarify.
- Claimants are self-certifying that the information they provide is true and accurate.
- There will be a 45-day deadline to submit your application, but we suggest you return your claim early in case you or staff at the PSMFC have questions.
- There is a formula in development by the CFDW the will drive fund allocations, however, funds will be distributed based on the size of the damages claimed by applicants and will be distributed on a pro-rata basis. We hope to have an explanation of the CDFW “formulation” soon. Of the number of qualified claimants, there are to be three tiers, each with a maximum distribution. Of course, relief amounts will not be known until all applications have been processed. This is the only way the PSMFC can ascertain the pro-rata share due your company.
Please let me know if you have any questions.
Rob Ross, Executive Director
info@calseafood.net
(916) 441-5560