By:  Brown                                            S.B. No. 1124

                                A BILL TO BE ENTITLED

                                       AN ACT

 1-1     relating to the regulation of aquaculture.

 1-2           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-3           SECTION 1.  Subchapter A, Chapter 134, Agriculture Code, is

 1-4     amended to read as follows:

 1-5                      SUBCHAPTER A.  GENERAL PROVISIONS

 1-6           Sec. 134.001.  DEFINITIONS.  In this chapter:

 1-7                 (1)  "Cultured species" means aquatic [plants or]

 1-8     animals raised under conditions where at least a portion of their

 1-9     life cycle is controlled by an aquaculturist.

1-10                 (2)  "Exotic species" means a nonindigenous plant or

1-11     animal not normally found in the public waters of this state.

1-12                 (3)  "Aquaculturist" or "fish farmer" means any person

1-13     licensed under this chapter to engage in aquaculture or fish

1-14     farming.

1-15                 (4)  "Aquaculture" or "fish farming" means the business

1-16     of producing or [and] selling cultured species raised in private

1-17     facilities. Aquaculture or fish farming is an agricultural

1-18     activity.

1-19                 (5)  "Private facility" means a pond, tank, cage, or

1-20     other structure capable of holding cultured species in confinement

1-21     wholly within or on private land or water or within or on permitted

1-22     public land or water.

1-23                 (6)  "Owner" means an aquaculturist owning or operating

 2-1     a facility licensed by the commission [department].

 2-2                 (7)  "Commission" means the Texas Animal Health

 2-3     Commission.

 2-4           Sec. 134.002.  AQUACULTURE PROGRAM.  The department shall

 2-5     [establish an aquaculture program that]:

 2-6                 (1)  promote [develops and conducts a plan for

 2-7     promoting] aquaculture products;

 2-8                 (2)  provide [licenses and regulates aquaculture

 2-9     operations;]

2-10                 [(3)  provides] technical assistance, including

2-11     demonstrations, to aquaculturists;

2-12                 (3)  provide [(4)  provides] coordinated support

2-13     through colleges and universities and other governmental entities;

2-14                 (4)  solicit [(5)  solicits] financial support from the

2-15     federal government for the aquaculture industry;

2-16                 (5)  develop [(6) develops] and expand [expands] the

2-17     aquaculture industry to:

2-18                       (A)  stimulate the state's economy; and

2-19                       (B)  offer alternative crop opportunities; and

2-20                 (6)  perform [(7)  performs] other functions and

2-21     activities as required by law.

2-22           Sec. 134.0025.  LICENSING.  The commission shall establish an

2-23     application process for an aquaculture license and license

2-24     aquaculture facilities.

2-25           Sec. 134.003.  PROGRAM ADMINISTRATOR; STAFF.  (a)  The

 3-1     department shall designate a person to administer the department's

 3-2     aquaculture program.

 3-3           (b)  The department or the department's program administrator

 3-4     may employ the necessary staff to carry out the functions and

 3-5     duties of the department under this chapter.

 3-6           Sec. 134.0035.  LICENSING ADMINISTRATOR; STAFF.  (a)  The

 3-7     commission shall designate a person to administer the commission's

 3-8     aquaculture licensing program.

 3-9           (b)  The commission or the commission's program administrator

3-10     may employ the necessary staff to carry out the functions and

3-11     duties of the commission under this chapter.

3-12           Sec. 134.004.  CONTRACTS.  The department and the commission

3-13     may contract with state, federal, or private entities for

3-14     assistance in carrying out the purposes of this chapter.

3-15           Sec. 134.005.  RULES.  (a)  The department, the commission,

3-16     and the Parks and Wildlife Department may [shall] adopt rules to

3-17     carry out their respective duties under this chapter [the

3-18     aquaculture program].

3-19           (b)  The commission may adopt rules to control a disease or

3-20     agent of disease transmission that affects, or has the potential to

3-21     affect, cultured species or other aquatic species.

3-22           (c)  The commission by rule may establish recordkeeping

3-23     requirements for an aquaculture facility.

3-24           (d)  The rules may not conflict with rules issued as

3-25     otherwise provided by [under Section 134.020 of] this code.

 4-1           Sec. 134.006.  AQUACULTURE FUND.  (a)  The aquaculture fund

 4-2     is established in the state treasury.

 4-3           (b)  The commission [department] shall deposit to the credit

 4-4     of the fund the fees received from licenses issued under this

 4-5     chapter.

 4-6           (c)  The aquaculture fund may be used only to administer this

 4-7     chapter.

 4-8           SECTION 2.  Sections 134.011, 134.012, 134.014, 134.015, and

 4-9     134.016, Agriculture Code, are amended to read as follows:

4-10           Sec. 134.011.  AQUACULTURE LICENSE REQUIRED.  A person may

4-11     not operate an aquaculture facility without first having acquired

4-12     from the commission [department] an aquaculture license.

4-13           Sec. 134.012.  FISH FARM VEHICLE LICENSE REQUIRED.

4-14     (a)  Except as provided by Subsection (b) [of this section], a

4-15     vehicle used to transport cultured species [fish] from a private

4-16     facility [fish farm] for sale [from the vehicle] is required to

4-17     have a fish farm vehicle license.

4-18           (b)  A fish farm vehicle license is not required for a

4-19     vehicle owned and operated by the holder of an aquaculture license.

4-20           Sec. 134.014.  LICENSE FEES.  The commission [department]

4-21     shall issue an aquaculture license or a fish farm vehicle license

4-22     on the payment of a fee, as provided by commission [department]

4-23     rule.

4-24           Sec. 134.015.  FORM, DURATION, AND RENEWAL OF LICENSE.

4-25     (a)  An aquaculture license must be on a numbered form provided by

 5-1     the commission [department].

 5-2           (b)  A license is valid for two years after the date of

 5-3     issuance.  The commission [department] shall renew a license on

 5-4     submission by the licensee of a completed application and a renewal

 5-5     fee, as provided by commission [department] rule, unless the

 5-6     commission [department] determines that the licensee has violated

 5-7     this chapter or a rule adopted under this chapter.

 5-8           (c)  The commission [department] may suspend an aquaculture

 5-9     license if it is determined that the licensee has violated this

5-10     chapter or a rule adopted under this chapter.

5-11           Sec. 134.016.  RECORDS.  The holder of an aquaculture license

5-12     shall maintain a record of the shipment [sales] of aquatic

5-13     [cultured] species raised in an aquaculture facility as provided by

5-14     Chapters 47 and 66, Parks and Wildlife Code, and rules adopted by

5-15     the Parks and Wildlife Department[, regulated by a bag, possession,

5-16     or size limit for a period of time of not less than one year.  The

5-17     record is open for inspection by designated employees of the

5-18     department during normal business hours].

5-19           SECTION 3.  Subsection (b), Section 134.023, Agriculture

5-20     Code, is amended to read as follows:

5-21           (b)  A person who violates Section [134.019 or] 134.020 [of

5-22     this code] commits an offense that is a Class B misdemeanor.

5-23           SECTION 4.  Chapter 134, Agriculture Code, is amended by

5-24     adding Subchapter C to read as follows:

 6-1                   SUBCHAPTER C.  INTERAGENCY COOPERATION

 6-2           Sec. 134.031.  MEMORANDUM OF AGREEMENT.  (a)  The Texas

 6-3     Natural Resource Conservation Commission, the Parks and Wildlife

 6-4     Department, and the commission shall enter into a memorandum of

 6-5     agreement for the regulation of matters related to aquaculture.

 6-6           (b)  The memorandum of agreement must require that:

 6-7                 (1)  the Texas Natural Resource Conservation

 6-8     Commission, after receiving an application for a discharge permit

 6-9     from an aquaculture facility, shall provide a copy of the

6-10     application to the  Parks and Wildlife Department and the

6-11     commission;

6-12                 (2)  the Texas Natural Resource Conservation

6-13     Commission, the Parks and Wildlife Department, and the commission

6-14     shall each appoint one member of a three-member application review

6-15     committee to review the aquaculture discharge permit application to

6-16     ensure that the proposed discharge will not adversely affect a bay,

6-17     an estuary, or other waters of this state;

6-18                 (3)  the Texas Natural Resource Conservation

6-19     Commission, the Parks and Wildlife Department, and the commission

6-20     shall:

6-21                       (A)  expeditiously enforce all aquaculture

6-22     regulations under the authority of each; and

6-23                       (B)  coordinate their regulatory enforcement

6-24     efforts with regard to aquaculture-related activities;

6-25                 (4)  after discovering evidence of an occurrence of

 7-1     disease in an aquaculture facility, the owner of the aquaculture

 7-2     facility shall immediately notify the commission, and the

 7-3     commission shall immediately:

 7-4                       (A)  notify the Parks and Wildlife Department and

 7-5     the Texas Natural Resource Conservation Commission; and

 7-6                       (B)  advise the Parks and Wildlife Department and

 7-7     the Texas Natural Resource Conservation Commission regarding the

 7-8     appropriate action to be taken by each agency;

 7-9                 (5)  after receiving a notice from the commission under

7-10     Subdivision (4), the executive director of the Texas Natural

7-11     Resource Conservation Commission shall immediately order a halt to

7-12     all wastewater discharges emanating from the reporting aquaculture

7-13     facility or require the Texas Natural Resource Conservation

7-14     Commission to take other appropriate action;

7-15                 (6)  the commission, after receiving an application for

7-16     an aquaculture license under Subchapter A, shall provide the Parks

7-17     and Wildlife Department a copy of the application for review by the

7-18     department regarding possible adverse environmental consequences

7-19     resulting from the approval of the application; and

7-20                 (7)  the Texas Natural Resource Conservation

7-21     Commission, the Parks and Wildlife Department, and the commission

7-22     shall conduct a study regarding wastewater discharges from

7-23     aquaculture facilities that:

7-24                       (A)  generates scientific information regarding

7-25     waste discharge permitting, with particular attention to the study

 8-1     of the environmental impact of suspended solids;

 8-2                       (B)  establishes standards for waste discharge

 8-3     permitting;

 8-4                       (C)  contains a plan for the aquaculture industry

 8-5     to contribute financing, including grants, for conducting the study

 8-6     and publishing the report required by this subdivision; and

 8-7                       (D)  serves as the basis of a joint report to be

 8-8     made available to the public.

 8-9           (c)  Representatives of the aquaculture industry, educational

8-10     institutions, and interested governmental agencies are entitled to

8-11     contribute to the study required by Subsection (b)(7).

8-12           (d)  The report required by Subsection (b)(7) shall be made

8-13     available to the public before December 31, 1998.  This subsection

8-14     expires December 31, 1998.

8-15           SECTION 5.  Subsections (b) and (f), Section 66.020, Parks

8-16     and Wildlife Code, are amended to read as follows:

8-17           (b)  This section applies to the possession, transportation,

8-18     sale, or purchase of any fish described by Subsection (a) of this

8-19     section without regard to where the fish was taken, caught, or

8-20     raised, but does not apply to:

8-21                 (1)  the transportation or possession of fish taken,

8-22     caught, or raised outside this state and transported by common

8-23     carrier without being unloaded from outside this state to a point

8-24     of delivery outside this state;

8-25                 (2)  fish raised by being continuously fed a prepared

 9-1     feed and sold by a licensed Texas fish farmer [if marked and

 9-2     identified as required under Chapter 134, Agriculture Code]; or

 9-3                 (3)  the lawful importation by the holder of a Texas

 9-4     finfish import license into this state from another state or

 9-5     foreign country of farm-raised red drum, bass of the genus

 9-6     Micropterus, crappie, flathead catfish, striped bass, white bass,

 9-7     or a hybrid of any of those fish that have been continuously fed a

 9-8     prepared feed as a primary food source or lawfully taken, caught,

 9-9     or raised blue marlin, jewfish, longbill spearfish, muskellunge,

9-10     northern pike, sailfish, sauger, snook, spotted sea trout, tarpon,

9-11     walleye, white marlin, yellow bass, or a hybrid of any of those

9-12     fish, if the fish are transported or sold when not alive and are

9-13     tagged, invoiced, packaged, and labeled under regulations of the

9-14     commission and if the license holder complies with any requirements

9-15     the commission may establish by proclamation that the fish enter

9-16     the stream of commerce for sale in this state in a condition

9-17     allowing ready identification of the species, including a

9-18     requirement that the fish come into the state with the head and

9-19     tail intact and tagged and a requirement that an invoice accompany

9-20     all imported fish regulated by this section through each sales

9-21     transaction, including transactions at the place of the final sale

9-22     to the consumer.

9-23           (f)  The commission by proclamation may require fish imported

9-24     under this section, fish raised and sold by a fish farmer licensed

9-25     by this state, or fish shipped by a fish farmer licensed by this

 10-1    state to be tagged, packaged, and labeled and to be accompanied by

 10-2    an invoice.  The commission may provide a prenumbered invoice to a

 10-3    person importing any of the fish described by Subsection (a) of

 10-4    this section into this state from another state or foreign country

 10-5    and may charge a fee for the invoice in an amount determined by the

 10-6    commission that is reasonable to defray the administrative costs

 10-7    incurred under this subsection.  The invoice shall be used to

 10-8    report shipments of any of the fish described by Subsection (a) of

 10-9    this section.  A person who receives invoices under this subsection

10-10    must account to the department for all invoices received as

10-11    required by rules adopted by the commission.  A person commits an

10-12    offense if the person fails or refuses to account for an invoice as

10-13    required by commission rules.

10-14          SECTION 6.  Sections 134.013 and 134.019, Agriculture Code,

10-15    are repealed.

10-16          SECTION 7.  Effective September 1, 1998, Subchapter D,

10-17    Chapter 1, Parks and Wildlife Code, is repealed.  The aquaculture

10-18    executive committee is abolished on that date.

10-19          SECTION 8.  (a)  The Texas Animal Health Commission, the

10-20    Texas Natural Resource Conservation Commission, and the Parks and

10-21    Wildlife Department shall enter into a memorandum of agreement to

10-22    conduct a joint study.

10-23          (b)  The memorandum of agreement must:

10-24                (1)  require that the joint study be completed and a

10-25    report made public before August 31, 1999;

 11-1                (2)  require that the joint study focus on the

 11-2    occurrence of disease in discarded seafood and seafood processing

 11-3    plant waste and the possibility of transmission of disease to

 11-4    aquaculture facilities or to cultured species or other aquatic

 11-5    species as a result of direct or indirect exposure to infected

 11-6    waste;

 11-7                (3)  provide a strategy for the Texas Animal Health

 11-8    Commission to ensure that a seafood processing plant disposes of

 11-9    its waste in a manner that will minimize the transmission of

11-10    disease from the seafood processing plant to an aquaculture

11-11    facility or to cultured species or other aquatic species;

11-12                (4)  include a plan for the seafood processing industry

11-13    to contribute financing, including grants, for conducting the joint

11-14    study; and

11-15                (5)  provide that representatives of the aquaculture

11-16    industry, representatives of  the seafood processing industry,

11-17    educational institutions, and interested governmental agencies may

11-18    contribute to the joint study.

11-19          (c)  The Texas Natural Resource Conservation Commission, the

11-20    Parks and Wildlife Department, and the Texas Animal Health

11-21    Commission shall enter into the memorandum of agreement required by

11-22    this section as soon as practicable on or after the effective date

11-23    of this Act.

11-24          SECTION 9.  This Act takes effect September 1, 1997.

11-25          SECTION 10.  (a)  The Department of Agriculture, the Parks

 12-1    and Wildlife Department, and the Texas Animal Health Commission

 12-2    shall coordinate any necessary transfer of files, personnel,

 12-3    equipment, or related materials as soon as practicable on or after

 12-4    the effective date of this Act.

 12-5          (b)  A rule adopted by the Department of Agriculture with

 12-6    regard to aquaculture licensing or regulation in effect immediately

 12-7    before September 1, 1997, becomes a rule of the Texas Animal Health

 12-8    Commission and the Parks and Wildlife Department and remains in

 12-9    effect until amended or repealed by the commission or the

12-10    department, as applicable.

12-11          (c)  The validity of any action taken before September 1,

12-12    1997, by the Department of Agriculture with regard to an

12-13    aquaculture license or fish farm vehicle license is not affected by

12-14    this Act.  To the extent an action of the department continues to

12-15    have any effect on or after September 1, 1997, the action is

12-16    considered to be an action of the Texas Animal Health Commission.

12-17          (d)  The Texas Natural Resource Conservation Commission, the

12-18    Parks and Wildlife Department, and the Texas Animal Health

12-19    Commission shall, as soon as practicable on or after the effective

12-20    date of this Act, enter into the memorandum of agreement required

12-21    by Section 134.031, Agriculture Code, as added by this Act.

12-22          (e)  The aquaculture executive committee and the application

12-23    review committee shall coordinate any necessary transfer of files,

12-24    personnel, equipment, or related material not later than August 31,

12-25    1998.

 13-1          SECTION 11.  The importance of this legislation and the

 13-2    crowded condition of the calendars in both houses create an

 13-3    emergency and an imperative public necessity that the

 13-4    constitutional rule requiring bills to be read on three several

 13-5    days in each house be suspended, and this rule is hereby suspended.