1-1 By: Patterson, Truan S.B. No. 750 1-2 (In the Senate - Filed February 24, 1995; February 27, 1995, 1-3 read first time and referred to Committee on Natural Resources; 1-4 March 21, 1995, reported adversely, with favorable Committee 1-5 Substitute by the following vote: Yeas 9, Nays 0; March 21, 1995, 1-6 sent to printer.) 1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 750 By: Lucio 1-8 A BILL TO BE ENTITLED 1-9 AN ACT 1-10 relating to the creation of a license management program for 1-11 certain commercial fishing. 1-12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-13 SECTION 1. Chapter 77, Parks and Wildlife Code, is amended 1-14 by adding Subchapter F to read as follows: 1-15 SUBCHAPTER F. SHRIMP LICENSE MANAGEMENT 1-16 Sec. 77.111. SHRIMP LICENSE MANAGEMENT PROGRAM. For the 1-17 purposes of promoting efficiency and economic stability in the 1-18 shrimping industry and of conserving economically important shrimp 1-19 resources, the department shall implement a shrimp license 1-20 management program in accordance with the shrimp management plan 1-21 adopted by the commission under Section 77.007 and as prescribed by 1-22 this subchapter. 1-23 Sec. 77.112. ISSUANCE AND RENEWAL OF COMMERCIAL BAY AND BAIT 1-24 SHRIMP BOAT LICENSES. (a) After August 31, 1995, the department 1-25 may not issue a new commercial bay or bait shrimp boat license 1-26 unless the person seeking to obtain the license documents to the 1-27 satisfaction of the department that the vessel for which the 1-28 license is sought: 1-29 (1) is owned by the person; 1-30 (2) was under construction and at least 50 percent 1-31 completed on April 1, 1995; and 1-32 (3) is intended to be licensed and used as a 1-33 commercial bay or bait shrimp boat. 1-34 (b) For the license year ending August 31, 1996, the 1-35 department may renew a commercial bay or bait shrimp boat license 1-36 only if the person seeking renewal of the license: 1-37 (1) owns the commercial bay or bait shrimp boat for 1-38 which the license renewal is sought; and 1-39 (2) held the license to be renewed on April 1, 1995, 1-40 or, after that date, obtained the license to be renewed by a 1-41 transfer authorized by Section 77.113. 1-42 (c) After August 31, 1996, the commission may renew a 1-43 commercial bay or bait shrimp boat license only if the person 1-44 seeking to renew the license: 1-45 (1) owns the commercial bay or bait shrimp boat for 1-46 which the license renewal is sought; and 1-47 (2) held the license to be renewed during the 1-48 preceding license year. 1-49 (d) An applicant for a new or renewed commercial bay or bait 1-50 shrimp boat license for a vessel that is required by United States 1-51 Coast Guard rules to be documented by the United States Coast Guard 1-52 must submit to the department with the license application the 1-53 United States Coast Guard certificate of documentation for the 1-54 vessel. 1-55 Sec. 77.113. LICENSE TRANSFER. (a) Except as provided by 1-56 this section, a commercial bay or bait shrimp boat license may not 1-57 be transferred from one person to another before September 1, 1999. 1-58 (b) A commercial bay or bait shrimp boat license may be 1-59 transferred at any time, by sale or otherwise: 1-60 (1) between holders of a commercial bay or bait shrimp 1-61 boat license; 1-62 (2) between a holder of a commercial bay or bait 1-63 shrimp boat license and a historical shrimp boat captain as defined 1-64 by the shrimp license management review board and approved by the 1-65 executive director; or 1-66 (3) to an heir or devisee of the deceased holder of 1-67 the commercial bay or bait shrimp boat license, but only if the 1-68 heir or devisee is a person who in the absence of a will would be 2-1 entitled to all or a portion of the deceased's property. 2-2 Sec. 77.114. LIMIT ON NUMBER OF LICENSES HELD; DESIGNATED 2-3 LICENSE HOLDER. (a) Except as provided by Subsection (b), no 2-4 person may hold or directly or indirectly control more than four 2-5 commercial bay and four commercial bait shrimp boat licenses. 2-6 (b) A person who qualifies to renew a license under Section 2-7 77.112 on September 1, 1995, may hold each license renewed and 2-8 after that date may retain and renew the licenses until the 2-9 licenses are transferred, not renewed, or revoked. A person may 2-10 not hold or renew more than four commercial bay and four commercial 2-11 bait shrimp boat licenses under this subsection after August 31, 2-12 2002. 2-13 (c) A commercial bay or bait shrimp boat license must be 2-14 issued to an individual. A person other than an individual who 2-15 wishes to retain or seeks to renew a license of either type must 2-16 designate an individual to whom the license will be issued. 2-17 Sec. 77.115. TRANSFER FEE. The commission may set a fee for 2-18 the transfer of a commercial bay or bait shrimp boat license. The 2-19 amount of the transfer fee may not exceed the amount of the license 2-20 fee for the license being transferred. 2-21 Sec. 77.116. LENGTH AND ENGINE LIMITS; VESSEL UPGRADE. 2-22 (a) Except as provided by Subsection (d), a vessel licensed as a 2-23 commercial bay or bait shrimp boat may not: 2-24 (1) have an engine that is rated by the manufacturer 2-25 of the engine at more than 400 horsepower; or 2-26 (2) exceed 60 feet in length. 2-27 (b) A vessel licensed as a commercial bay or bait shrimp 2-28 boat may not be lengthened or have the engine horsepower increased 2-29 more than once after September 1, 1995. 2-30 (c) A vessel may not be lengthened by more than 15 percent 2-31 of the vessel's length. 2-32 (d) The license for a vessel that on September 1, 1995, is 2-33 licensed as a commercial bay or bait shrimp boat and exceeds the 2-34 length or horsepower limit set by Subsection (a) may be renewed, 2-35 but the vessel may not be lengthened or have the horsepower of the 2-36 vessel increased. If the vessel is replaced, the replacement 2-37 vessel must meet the engine and length requirements described in 2-38 Subsection (a). 2-39 (e) For purposes of this section, vessel length shall be 2-40 determined according to United States Coast Guard specifications in 2-41 effect on September 1, 1995. 2-42 Sec. 77.117. LICENSE SUSPENSION AND REVOCATION. (a) The 2-43 executive director, after notice and the opportunity for a hearing, 2-44 may suspend a commercial bay or bait shrimp boat license if the 2-45 license holder or any other operator of the licensed vessel is 2-46 convicted of one or more flagrant offenses totalling three flagrant 2-47 offenses for the licensed vessel. The suspension may be for: 2-48 (1) six months, if: 2-49 (A) the date of each offense is within a 2-50 24-consecutive-month period beginning not earlier than September 1, 2-51 1995; and 2-52 (B) the license holder has not previously had a 2-53 commercial bay or bait shrimp boat license suspended under this 2-54 section; or 2-55 (2) 12 months, if the date of each offense is within a 2-56 24-consecutive-month period and the license holder has previously 2-57 had a commercial bay or bait shrimp boat license suspended under 2-58 this section. 2-59 (b) Except as provided by Subsection (c), a license 2-60 suspension under this section does not affect the license holder's 2-61 eligibility to renew the license after the suspension expires. 2-62 (c) The executive director, after notice and the opportunity 2-63 for a hearing, may permanently revoke a commercial bay or bait 2-64 shrimp boat license if: 2-65 (1) the license holder has previously had a commercial 2-66 bay or bait shrimp boat license suspended twice under this section; 2-67 (2) the license holder or any other operator of the 2-68 licensed vessel is convicted of one or more flagrant offenses 2-69 totalling three flagrant offenses for the licensed vessel; and 2-70 (3) the date of each offense is in a 3-1 24-consecutive-month period beginning not earlier than the date of 3-2 the most recent previous suspension under this section. 3-3 (d) For purposes of this section, a flagrant offense 3-4 includes: 3-5 (1) trawling in a nursery area in violation of this 3-6 code or of a proclamation of the commission issued under this code; 3-7 (2) shrimping longer than 30 minutes before or 30 3-8 minutes after legal shrimping hours prescribed by this code or by a 3-9 proclamation of the commission issued under this code; 3-10 (3) exceeding possession limits, in violation of this 3-11 code or of a proclamation of the commission issued under this code, 3-12 by 100 or more pounds; 3-13 (4) exceeding legal net size, in violation of this 3-14 code or of a proclamation of the commission issued under this code, 3-15 by five feet or more; or 3-16 (5) falsifying information required by this subchapter 3-17 or a commission rule adopted under this subchapter for the issuance 3-18 of a commercial bay or bait shrimp boat license. 3-19 (e) The same flagrant offense may not be counted for more 3-20 than one suspension under this section. 3-21 Sec. 77.118. SHRIMP LICENSE MANAGEMENT REVIEW BOARD. 3-22 (a) The holders of commercial bay and bait shrimp boat licenses 3-23 shall elect a shrimp license management review board of nine 3-24 members. 3-25 (b) A member of the review board must be a holder of a 3-26 commercial bay or bait shrimp boat license. 3-27 (c) The nine members of the review board must be selected to 3-28 reflect the following geographical distribution according to the 3-29 county of residence specified on the member's commercial bay or 3-30 bait shrimp boat license: 3-31 (1) one member representing Orange, Jefferson, 3-32 Chambers, and Harris counties; 3-33 (2) two members representing Galveston County; 3-34 (3) two members representing Brazoria and Matagorda 3-35 counties; 3-36 (4) three members representing Calhoun, Aransas, 3-37 Nueces, San Patricio, and Refugio counties; and 3-38 (5) one member representing Kleberg, Cameron, and 3-39 Willacy counties. 3-40 (d) The review board shall advise the commission and 3-41 department and make recommendations concerning the administrative 3-42 aspects of the shrimp license management program, including 3-43 hardship and appeal cases concerning eligibility, license transfer, 3-44 license renewal, license suspension, license revocation, and vessel 3-45 length and engine changes. 3-46 (e) The executive director shall adopt procedures for the 3-47 election and operation of the review board. The executive director 3-48 shall solicit and consider recommendations from the commercial bay 3-49 and bait shrimp boat license holders regarding the procedures. 3-50 (f) The review board is not subject to Article 6252-33, 3-51 Revised Statutes. 3-52 Sec. 77.119. LICENSE BUYBACK PROGRAM. (a) The department 3-53 shall implement a license buyback program as part of the shrimp 3-54 license management program established by this subchapter. 3-55 (b) The commission by rule may establish criteria, using 3-56 reasonable classifications, by which the department selects 3-57 licenses to be purchased. The commission may delegate to the 3-58 executive director, for purposes of this section only, the 3-59 authority to develop the criteria through rulemaking procedures, 3-60 but the commission by order must finally adopt the rules 3-61 establishing the criteria. The commission or executive director 3-62 shall consult with the shrimp license management review board 3-63 concerning establishment of the criteria. 3-64 (c) The commission shall retire each license purchased under 3-65 the license buyback program until the commission finds that 3-66 management of the shrimp fishery allows reissue of those licenses 3-67 through auction or lottery. 3-68 Sec. 77.120. SHRIMP LICENSE BUYBACK ACCOUNT; FEE INCREASE. 3-69 (a) The shrimp license buyback account is a separate account in 3-70 the general revenue fund. The account consists of money deposited 4-1 to the account under this section. Sections 403.094 and 403.095, 4-2 Government Code, do not apply to the account. 4-3 (b) The department may accept grants and donations of money 4-4 or materials from private or public sources to be applied to the 4-5 shrimp license buyback account. 4-6 (c) In addition to fee increases the department is 4-7 authorized to make under this code, the department shall increase 4-8 by 15 percent, but not by an amount that exceeds $25, the fee for 4-9 the following licenses and shall deposit the amount of the increase 4-10 to the credit of the shrimp license buyback account: 4-11 (1) a bait-shrimp dealer's license issued under 4-12 Section 77.043; 4-13 (2) a wholesale fish dealer's license issued under 4-14 Section 47.009; 4-15 (3) a wholesale truck dealer's fish license issued 4-16 under Section 47.010; 4-17 (4) a retail fish dealer's license issued under 4-18 Section 47.011; 4-19 (5) a retail dealer's truck license issued under 4-20 Section 47.013; 4-21 (6) a shrimp house operator license issued under 4-22 Section 77.042; 4-23 (7) a commercial bait-shrimp boat license issued under 4-24 Section 77.033; 4-25 (8) a commercial bay shrimp boat license issued under 4-26 Section 77.031; 4-27 (9) a commercial gulf shrimp boat license issued under 4-28 Section 77.035; and 4-29 (10) an individual bait-shrimp trawl license issued 4-30 under Section 77.048. 4-31 (d) The department shall deposit to the credit of the shrimp 4-32 license buyback account transfer fees received under Section 4-33 77.115. 4-34 (e) Money in the shrimp license buyback account may be used 4-35 only to buy back from a willing license holder a commercial bay or 4-36 bait shrimp boat license. 4-37 Sec. 77.121. PROGRAM ADMINISTRATION; RULES. (a) The 4-38 executive director shall establish administrative procedures to 4-39 carry out the requirements of this subchapter. 4-40 (b) The commission shall adopt any rules necessary for the 4-41 administration of the program established under this subchapter. 4-42 Sec. 77.122. REPORT TO LEGISLATURE. Not later than January 4-43 1, 1999, the department shall report to the governor and each 4-44 member of the legislature an overview of the administration and 4-45 status of the shrimp license management program, including the 4-46 biological, sociological, and economic effects of the program. 4-47 Sec. 77.123. PREVAILING AUTHORITY. A proclamation of the 4-48 commission under this subchapter prevails over any conflicting 4-49 provision of this chapter to the extent of the conflict. 4-50 SECTION 2. Subsection (b), Section 11.032, Parks and 4-51 Wildlife Code, is amended to read as follows: 4-52 (b) The department shall deposit to the credit of the game, 4-53 fish, and water safety account all revenue, less allowable costs, 4-54 from the following sources: 4-55 (1) all types of fishing licenses and stamps and 4-56 shrimping licenses, except as provided by Section 77.120; 4-57 (2) all types of hunting licenses and stamps; 4-58 (3) trapping licenses and other licenses relating to 4-59 the taking, propagation, and sale of fur-bearing animals or their 4-60 pelts; 4-61 (4) sale of marl, sand, gravel, shell, and mudshell; 4-62 (5) oyster bed rentals and permits; 4-63 (6) federal funds received for fish and wildlife 4-64 research, management, development and conservation, resource 4-65 protection, and law enforcement, unless the funds are received for 4-66 the specific purposes of Subchapter F, Chapter 77; 4-67 (7) sale of property, less advertising costs, 4-68 purchased from this account or a special fund or account that is 4-69 now part of this account; 4-70 (8) fines and penalties collected for violations of a 5-1 law pertaining to the protection and conservation of wild birds, 5-2 wild fowl, wild animals, fish, shrimp, oysters, game birds and 5-3 animals, fur-bearing animals, alligators, and any other wildlife 5-4 resources of this state; 5-5 (9) sale of rough fish by the department; 5-6 (10) fees for importation permits; 5-7 (11) fees from supplying fish for or placing fish in 5-8 water located on private property; 5-9 (12) sale of seized pelts; 5-10 (13) sale or lease of grazing rights to and the 5-11 products from game preserves, sanctuaries, and management areas; 5-12 (14) contracts for the removal of fur-bearing animals 5-13 and reptiles from wildlife management areas; 5-14 (15) motorboat registration fees; 5-15 (16) motorboat manufacturer or dealer registration 5-16 fee; 5-17 (17) fines or penalties imposed by a court for 5-18 violation of water safety laws contained in Chapter 31 of this 5-19 code; 5-20 (18) alligator hunter's or alligator buyer's licenses; 5-21 (19) sale of alligators or any part of an alligator by 5-22 the department; 5-23 (20) fees and revenue collected under Section 5-24 11.027(b) or (c) of this code that are associated with the 5-25 conservation of fish and wildlife; and 5-26 (21) any other source provided by law. 5-27 SECTION 3. Subsection (c), Section 77.0361, Parks and 5-28 Wildlife Code, is amended to read as follows: 5-29 (c) All licenses issued under the authority of Chapter 77 of 5-30 this code may not be transferred to another person or vessel except 5-31 as provided by this subsection or by Section 77.113. The 5-32 commission, by regulation, may prescribe requirements necessary for 5-33 license transfers and may prescribe, by regulation, forms to be 5-34 used and fees to be charged for transfers of licenses in this 5-35 chapter and for duplicate license plates and/or duplicate or 5-36 replacement licenses. 5-37 SECTION 4. (a) As soon as practicable after the effective 5-38 date of this Act, the Parks and Wildlife Commission shall adopt any 5-39 rules necessary for the administration of the shrimp license 5-40 management program created by Subchapter F, Chapter 77, Parks and 5-41 Wildlife Code, as added by this Act. 5-42 (b) As soon as practicable after the effective date of this 5-43 Act, the executive director shall adopt procedures for the election 5-44 of the shrimp license management review board under Section 77.118, 5-45 Parks and Wildlife Code, as added by this Act. As soon as 5-46 practicable after the adoption of election procedures, but not 5-47 later than November 1, 1995, the election of the shrimp license 5-48 management review board shall be held. 5-49 SECTION 5. The importance of this legislation and the 5-50 crowded condition of the calendars in both houses create an 5-51 emergency and an imperative public necessity that the 5-52 constitutional rule requiring bills to be read on three several 5-53 days in each house be suspended, and this rule is hereby suspended, 5-54 and that this Act take effect and be in force from and after its 5-55 passage, and it is so enacted. 5-56 * * * * *