BILL ANALYSIS S.B. 750 By: Patterson (Uher) March 31, 1995 Committee Report (Unamended) BACKGROUND The Parks and Wildlife Department has devised a licensing program to oversee shrimp harvesting in Texas bays. This plan is a limited entry plan to manage shrimp licenses in Texas that attempts to balance overfishing with the interests of the local fishing economy. Similar plans have already been implemented in other coastal states. PURPOSE As proposed, S.B. 750 requires the Parks and Wildlife Department to implement a shrimp license management program and a shrimp license management review board to regulate the commercial shrimping industry. RULEMAKING AUTHORITY It is the committee's opinion that rulemaking authority is expressly delegated to the Parks and Wildlife Commission under SECTION 1 (Sections 77.117(d)(5), 77.119(b) and 77.121(b), Chapter 77F, Parks and Wildlife Code) of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Chapter 77, Parks and Wildlife Code, by adding Subchapter F, as follows: SUBCHAPTER F. SHRIMP LICENSE MANAGEMENT Sec. 77.111. SHRIMP LICENSE MANAGEMENT PROGRAM. Requires the Parks and Wildlife Department (department) to implement a shrimp license management program to promote economic stability in the shrimping industry and to conserve economically important resources. Sec. 77.112. ISSUANCE AND RENEWAL OF COMMERCIAL BAY AND BAIT SHRIMP BOAT LICENSE. (a) Prohibits the department from issuing a new commercial bay or bait shrimp boat license (license) after August 31, 1995, unless the person seeking to obtain the license documents certain information about the vessel to the satisfaction of the department. (b) Authorizes the department to renew a license for the license year ending August 31, 1996, only if the person seeking license renewal owns the vessel and held the license to be renewed on April 1, 1995, or attained the license through a transfer. (c) Authorizes the Parks and Wildlife Commission (commission) to renew a license after August 31, 1996, only if the person owns the vessel and held the license to be renewed during the preceding license year. (d) Requires an applicant for a new or renewed license for a vessel required by U.S. Coast Guard rules to be documented by the U.S. Coast Guard to submit to the department a U.S. Coast Guard certificate of documentation for the vessel with the license application. Sec. 77.113. LICENSE TRANSFER. (a) Prohibits a license from being transferred before September 1, 1999, except as provided by this section. (b) Authorizes a license to be transferred at any time, by sale or otherwise between certain parties. Sec. 77.114. LIMIT ON NUMBER OF LICENSES HELD; DESIGNATED LICENSE HOLDER. (a) Prohibits a person from holding or directly or indirectly controlling more than four commercial bay and commercial boat licenses. (b) Authorizes a person who qualifies to renew a license to hold each renewed license and after that date is authorized to retain and renew the licenses until the licenses are transferred, not renewed or revoked. Prohibits a person from holding or renewing more than four commercial bay and four commercial boat licenses after August 31, 2002. (c) Requires a license to be issued to an individual. Requires a person other than the individual who wishes to retain or seek a new license of either type to designate an individual to whom the license will be issued. Sec. 77.115. TRANSFER FEE. Authorizes the commission to set a fee for the transfer of a license. Prohibits the transfer fee from exceeding the amount of the license fee. Sec. 77.116. LENGTH AND ENGINE LIMITS; VESSEL UPGRADE. (a) Sets forth engine horsepower and length limits of a licensed vessel. (b) Prohibits a licensed vessel from being lengthened or having the horsepower increased more than once by September 1, 1995. (c) Prohibits a vessel from being lengthened more than 15 percent of its length. (d) Authorizes a license to be renewed for a vessel that on September 1, 1995, is licensed as a commercial bay or bait shrimp boat and exceeds the length or horsepower limit of Subsection (a). Prohibits that vessel from being lengthened or having the horsepower increased. Requires the replacement vessel, if the original vessel is replaced, to meet the engine and length requirements under Subsection (a). (e) Requires the vessel length to be determined by U.S. Coast Guard specifications in effect on September 1, 1995. Sec. 77.117. LICENSE SUSPENSION AND REVOCATION. (a) Authorizes the executive director of the Parks and Wildlife Department (executive director), after notice and a hearing, to suspend a license if the license holder or any other operator of the licensed vessel is convicted of one or more flagrant offenses totalling three flagrant offenses for the licensed vessel. Sets forth the circumstances that may result in a suspension and the time period of each suspension. (b) Provides that a license suspension does not affect the license holder's eligibility for license renewal, except as provided in Subsection (c). (c) Authorizes the executive director to permanently revoke a license, after notice and a hearing if the license holder's license has been previously suspended twice under this section; the license holder or any other operator of the licensed vessel is convicted of one or more flagrant offenses totalling three flagrant offenses for the licensed vessel; and the date of each offense is in a 24-consecutive-month period beginning after the date of the most previous suspension under this section. (d) Sets forth violations that are considered flagrant offenses. Sec. 77.118. SHRIMP LICENSE MANAGEMENT REVIEW BOARD. (a) Requires license holders to elect a nine-member shrimp license management review board (board). (b) Requires a member of the board to be a license holder. (c) Requires the nine members to be selected to reflect a certain geographical distribution according to the county of residence specified on the license of each member. (d) Requires the board to advise the commission and the department and make recommendations concerning the administrative aspects of the program, including hardship and appeal cases concerning eligibility; license transfer, renewal, suspension, and revocation; and the vessels. (e) Requires the executive director to adopt procedures for the election and operation of the board. Requires the executive director to consider recommendations from license holders regarding procedures. (f) Provides that the board is not subject to Article 6252-33, V.T.C.S. Sec. 77.119. LICENSE BUY-BACK PROGRAM. (a) Authorizes the department to implement a license buy-back program as part of the program. (b) Authorizes the commission, by rule, to establish criteria by which the department selects licenses to be purchased. Authorizes the commission to delegate to the executive director the authority to develop the criteria through rulemaking procedures. Requires the commission, by order, to adopt the rules establishing the criteria. Requires the commission or executive director to consult with the board concerning establishment of the criteria. (c) Requires the commission to retire each license purchased under the program until it finds that management of the shrimp fishery allows reissue of the old licenses through auction or lottery. Sec. 77.120. SHRIMP LICENSE BUY-BACK ACCOUNT; FEE INCREASE. Provides that the shrimp license buy-back account (account) is a separate account in the general revenue fund which consists of money deposited under this section. Provides that Sections 403.094 and 403.095, Government Code, do not apply to this section. (b) Authorizes the department to accept grants and money or material donations from private or public sources to be applied to the account. (c) Requires the department, in addition to fee increases the department is authorized to make under this code, to increase the fees for certain licenses by 15 percent, but not by more than $25. Requires the department to deposit the amount of the increase to the credit of the account. (d) Requires the department to deposit transfer fees from Section 77.115 to the credit of the account. (e) Authorizes money in the account to be used only to purchase a license from a willing license holder. Sec. 77.121. PROGRAM ADMINISTRATION; RULES. (a) Requires the executive director to establish administrative procedures to complete the requirements of this chapter. (b) Requires the commission to adopt rules necessary for the administration of the program. Sec. 77.122. REPORT TO LEGISLATURE. Requires the department to report to the governor and each legislative member an overview of the status of the program, including the biological, sociological, and economic effects of the program. Sec. 77.123. PREVAILING AUTHORITY. Provides that a proclamation of the commission prevails over any conflict of this chapter to the extent of the conflict. SECTION 2. Amends Section 11.032(b), Parks and Wildlife Code, to make conforming changes. SECTION 3. Amends Section 77.0361(c), Parks and Wildlife Code, to make a conforming change. SECTION 4. (a) Requires the commission to adopt any rules necessary for the administration of the program, as soon as practicable after the effective date of the Act. (b) Requires the executive director to adopt procedures for the election of the board, as soon as practicable after the effective date of this Act. Requires the election of the board to be held by November 1, 1995. SECTION 5. Emergency clause. Effective date: upon passage. SUMMARY OF COMMITTEE ACTION S.B. 750 was considered by the Committee on State Recreational Resources in a public hearing on March 29, 1995. The bill was reported favorably without amendment, with the recommendation that it do pass and be printed, by a record vote of 7 ayes, 0 nays, 0 pnv, 2 absent.