1-1     By:  Brown                                            S.B. No. 1124

 1-2           (In the Senate - Filed March 11, 1997; March 13, 1997, read

 1-3     first time and referred to Committee on Natural Resources;

 1-4     April 4, 1997, reported adversely, with favorable Committee

 1-5     Substitute by the following vote:  Yeas 11, Nays 0; April 4, 1997,

 1-6     sent to printer.)

 1-7     COMMITTEE SUBSTITUTE FOR S.B. No. 1124                   By:  Brown

 1-8                            A BILL TO BE ENTITLED

 1-9                                   AN ACT

1-10     relating to the regulation of aquaculture.

1-11           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-12           SECTION 1.  Subchapter A, Chapter 134, Agriculture Code, is

1-13     amended to read as follows:

1-14                      SUBCHAPTER A.  GENERAL PROVISIONS

1-15           Sec. 134.001.  DEFINITIONS.  In this chapter:

1-16                 (1)  "Cultured species" means aquatic [plants or]

1-17     animals raised under conditions where at least a portion of their

1-18     life cycle is controlled by an aquaculturist.

1-19                 (2)  "Exotic species" means a nonindigenous plant or

1-20     animal not normally found in the public waters of this state.

1-21                 (3)  "Aquaculturist" or "fish farmer" means any person

1-22     licensed under this chapter to engage in aquaculture or fish

1-23     farming.

1-24                 (4)  "Aquaculture" or "fish farming" means the business

1-25     of producing or [and] selling cultured species raised in private

1-26     facilities. Aquaculture or fish farming is an agricultural

1-27     activity.

1-28                 (5)  "Private facility" means a pond, tank, cage, or

1-29     other structure capable of holding cultured species in confinement

1-30     wholly within or on private land or water or within or on permitted

1-31     public land or water.

1-32                 (6)  "Owner" means an aquaculturist owning or operating

1-33     a facility licensed by the commission [department].

1-34                 (7)  "Commission" means the Texas Animal Health

1-35     Commission.

1-36           Sec. 134.002.  AQUACULTURE PROGRAM.  The department shall

1-37     [establish an aquaculture program that]:

1-38                 (1)  promote [develops and conducts a plan for

1-39     promoting] aquaculture products;

1-40                 (2)  provide [licenses and regulates aquaculture

1-41     operations;]

1-42                 [(3)  provides] technical assistance, including

1-43     demonstrations, to aquaculturists;

1-44                 (3)  provide [(4)  provides] coordinated support

1-45     through colleges and universities and other governmental entities;

1-46                 (4)  solicit [(5)  solicits] financial support from the

1-47     federal government for the aquaculture industry;

1-48                 (5)  develop [(6) develops] and expand [expands] the

1-49     aquaculture industry to:

1-50                       (A)  stimulate the state's economy; and

1-51                       (B)  offer alternative crop opportunities; and

1-52                 (6)  perform [(7)  performs] other functions and

1-53     activities as required by law.

1-54           Sec. 134.0025.  LICENSING.  The commission shall establish an

1-55     application process for an aquaculture license and license

1-56     aquaculture facilities.

1-57           Sec. 134.003.  PROGRAM ADMINISTRATOR; STAFF.  (a)  The

1-58     department shall designate a person to administer the department's

1-59     aquaculture program.

1-60           (b)  The department or the department's program administrator

1-61     may employ the necessary staff to carry out the functions and

1-62     duties of the department under this chapter.

1-63           Sec. 134.0035.  LICENSING ADMINISTRATOR; STAFF.  (a)  The

1-64     commission shall designate a person to administer the commission's

 2-1     aquaculture licensing program.

 2-2           (b)  The commission or the commission's program administrator

 2-3     may employ the necessary staff to carry out the functions and

 2-4     duties of the commission under this chapter.

 2-5           Sec. 134.004.  CONTRACTS.  The department and the commission

 2-6     may contract with state, federal, or private entities for

 2-7     assistance in carrying out the purposes of this chapter.

 2-8           Sec. 134.005.  RULES.  (a)  The department, the commission,

 2-9     and the Parks and Wildlife Department may [shall] adopt rules to

2-10     carry out their respective duties under this chapter [the

2-11     aquaculture program].

2-12           (b)  The commission may adopt rules to control a disease or

2-13     agent of disease transmission that affects, or has the potential to

2-14     affect, cultured species or other aquatic species.

2-15           (c)  The commission by rule may establish recordkeeping

2-16     requirements for an aquaculture facility.

2-17           (d)  The rules may not conflict with rules issued as

2-18     otherwise provided by [under Section 134.020 of] this code.

2-19           Sec. 134.006.  AQUACULTURE FUND.  (a)  The aquaculture fund

2-20     is established in the state treasury.

2-21           (b)  The commission [department] shall deposit to the credit

2-22     of the fund the fees received from licenses issued under this

2-23     chapter.

2-24           (c)  The aquaculture fund may be used only to administer this

2-25     chapter.

2-26           SECTION 2.  Sections 134.011, 134.012, 134.014, 134.015, and

2-27     134.016, Agriculture Code, are amended to read as follows:

2-28           Sec. 134.011.  AQUACULTURE LICENSE REQUIRED.  A person may

2-29     not operate an aquaculture facility without first having acquired

2-30     from the commission [department] an aquaculture license.

2-31           Sec. 134.012.  FISH FARM VEHICLE LICENSE REQUIRED.

2-32     (a)  Except as provided by Subsection (b) [of this section], a

2-33     vehicle used to transport cultured species [fish] from a private

2-34     facility [fish farm] for sale [from the vehicle] is required to

2-35     have a fish farm vehicle license.

2-36           (b)  A fish farm vehicle license is not required for a

2-37     vehicle owned and operated by the holder of an aquaculture license.

2-38           Sec. 134.014.  LICENSE FEES.  The commission [department]

2-39     shall issue an aquaculture license or a fish farm vehicle license

2-40     on the payment of a fee, as provided by commission [department]

2-41     rule.

2-42           Sec. 134.015.  FORM, DURATION, AND RENEWAL OF LICENSE.

2-43     (a)  An aquaculture license must be on a numbered form provided by

2-44     the commission [department].

2-45           (b)  A license is valid for two years after the date of

2-46     issuance.  The commission [department] shall renew a license on

2-47     submission by the licensee of a completed application and a renewal

2-48     fee, as provided by commission [department] rule, unless the

2-49     commission [department] determines that the licensee has violated

2-50     this chapter or a rule adopted under this chapter.

2-51           (c)  The commission [department] may suspend an aquaculture

2-52     license if it is determined that the licensee has violated this

2-53     chapter or a rule adopted under this chapter.

2-54           Sec. 134.016.  RECORDS.  The holder of an aquaculture license

2-55     shall maintain a record of the shipment [sales] of aquatic

2-56     [cultured] species raised in an aquaculture facility as provided by

2-57     Chapters 47 and 66, Parks and Wildlife Code, and rules adopted by

2-58     the Parks and Wildlife Department[, regulated by a bag, possession,

2-59     or size limit for a period of time of not less than one year. The

2-60     record is open for inspection by designated employees of the

2-61     department during normal business hours].

2-62           SECTION 3.  Subsection (b), Section 134.023, Agriculture

2-63     Code, is amended to read as follows:

2-64           (b)  A person who violates Section [134.019 or] 134.020 [of

2-65     this code] commits an offense that is a Class B misdemeanor.

2-66           SECTION 4.  Chapter 134, Agriculture Code, is amended by

2-67     adding Subchapter C to read as follows:

 3-1                   SUBCHAPTER C.  INTERAGENCY COOPERATION

 3-2           Sec. 134.031.  MEMORANDUM OF AGREEMENT.  (a)  The Texas

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

 3-4     Department, and the commission shall enter into a memorandum of

 3-5     agreement for the regulation of matters related to aquaculture.

 3-6           (b)  The memorandum of agreement must require that:

 3-7                 (1)  the Texas Natural Resource Conservation

 3-8     Commission, after receiving an application for a discharge permit

 3-9     from an aquaculture facility, shall provide a copy of the

3-10     application to the  Parks and Wildlife Department and the

3-11     commission;

3-12                 (2)  the Texas Natural Resource Conservation

3-13     Commission, the Parks and Wildlife Department, and the commission

3-14     shall each appoint one member of a three-member application review

3-15     committee to review the aquaculture discharge permit application to

3-16     ensure that the proposed discharge will not adversely affect a bay,

3-17     an estuary, or other waters of this state;

3-18                 (3)  the Texas Natural Resource Conservation

3-19     Commission, the Parks and Wildlife Department, and the commission

3-20     shall:

3-21                       (A)  expeditiously enforce all aquaculture

3-22     regulations under the authority of each; and

3-23                       (B)  coordinate their regulatory enforcement

3-24     efforts with regard to aquaculture-related activities;

3-25                 (4)  after discovering evidence of an occurrence of

3-26     disease in an aquaculture facility, the owner of the aquaculture

3-27     facility shall immediately notify the commission, and the

3-28     commission shall immediately:

3-29                       (A)  notify the Parks and Wildlife Department and

3-30     the Texas Natural Resource Conservation Commission; and

3-31                       (B)  advise the Parks and Wildlife Department and

3-32     the Texas Natural Resource Conservation Commission regarding the

3-33     appropriate action to be taken by each agency;

3-34                 (5)  after receiving a notice from the commission under

3-35     Subdivision (4), the executive director of the Texas Natural

3-36     Resource Conservation Commission shall immediately order a halt to

3-37     all wastewater discharges emanating from the reporting aquaculture

3-38     facility or require the Texas Natural Resource Conservation

3-39     Commission to take other appropriate action;

3-40                 (6)  the commission, after receiving an application for

3-41     an aquaculture license under Subchapter A, shall provide the Parks

3-42     and Wildlife Department a copy of the application for review by the

3-43     department regarding possible adverse environmental consequences

3-44     resulting from the approval of the application; and

3-45                 (7)  the Texas Natural Resource Conservation

3-46     Commission, the Parks and Wildlife Department, and the commission

3-47     shall conduct a study regarding wastewater discharges from

3-48     aquaculture facilities that:

3-49                       (A)  generates scientific information regarding

3-50     waste discharge permitting, with particular attention to the study

3-51     of the environmental impact of suspended solids;

3-52                       (B)  establishes standards for waste discharge

3-53     permitting;

3-54                       (C)  contains a plan for the aquaculture industry

3-55     to contribute financing, including grants, for conducting the study

3-56     and publishing the report required by this subdivision; and

3-57                       (D)  serves as the basis of a joint report to be

3-58     made available to the public.

3-59           (c)  Representatives of the aquaculture industry, educational

3-60     institutions, and interested governmental agencies are entitled to

3-61     contribute to the study required by Subsection (b)(7).

3-62           (d)  The report required by Subsection (b)(7) shall be made

3-63     available to the public before December 31, 1998.  This subsection

3-64     expires December 31, 1998.

3-65           SECTION 5.  Subsections (b) and (f), Section 66.020, Parks

3-66     and Wildlife Code, are amended to read as follows:

3-67           (b)  This section applies to the possession, transportation,

3-68     sale, or purchase of any fish described by Subsection (a) of this

3-69     section without regard to where the fish was taken, caught, or

 4-1     raised, but does not apply to:

 4-2                 (1)  the transportation or possession of fish taken,

 4-3     caught, or raised outside this state and transported by common

 4-4     carrier without being unloaded from outside this state to a point

 4-5     of delivery outside this state;

 4-6                 (2)  fish raised by being continuously fed a prepared

 4-7     feed and sold by a licensed Texas fish farmer [if marked and

 4-8     identified as required under Chapter 134, Agriculture Code]; or

 4-9                 (3)  the lawful importation by the holder of a Texas

4-10     finfish import license into this state from another state or

4-11     foreign country of farm-raised red drum, bass of the genus

4-12     Micropterus, crappie, flathead catfish, striped bass, white bass,

4-13     or a hybrid of any of those fish that have been continuously fed a

4-14     prepared feed as a primary food source or lawfully taken, caught,

4-15     or raised blue marlin, jewfish, longbill spearfish, muskellunge,

4-16     northern pike, sailfish, sauger, snook, spotted sea trout, tarpon,

4-17     walleye, white marlin, yellow bass, or a hybrid of any of those

4-18     fish, if the fish are transported or sold when not alive and are

4-19     tagged, invoiced, packaged, and labeled under regulations of the

4-20     commission and if the license holder complies with any requirements

4-21     the commission may establish by proclamation that the fish enter

4-22     the stream of commerce for sale in this state in a condition

4-23     allowing ready identification of the species, including a

4-24     requirement that the fish come into the state with the head and

4-25     tail intact and tagged and a requirement that an invoice accompany

4-26     all imported fish regulated by this section through each sales

4-27     transaction, including transactions at the place of the final sale

4-28     to the consumer.

4-29           (f)  The commission by proclamation may require fish imported

4-30     under this section, fish raised and sold by a fish farmer licensed

4-31     by this state, or fish shipped by a fish farmer licensed by this

4-32     state to be tagged, packaged, and labeled and to be accompanied by

4-33     an invoice.  The commission may provide a prenumbered invoice to a

4-34     person importing any of the fish described by Subsection (a) of

4-35     this section into this state from another state or foreign country

4-36     and may charge a fee for the invoice in an amount determined by the

4-37     commission that is reasonable to defray the administrative costs

4-38     incurred under this subsection.  The invoice shall be used to

4-39     report shipments of any of the fish described by Subsection (a) of

4-40     this section.  A person who receives invoices under this subsection

4-41     must account to the department for all invoices received as

4-42     required by rules adopted by the commission.  A person commits an

4-43     offense if the person fails or refuses to account for an invoice as

4-44     required by commission rules.

4-45           SECTION 6.  Sections 134.013 and 134.019, Agriculture Code,

4-46     are repealed.

4-47           SECTION 7.  Effective September 1, 1998, Subchapter D,

4-48     Chapter 1, Parks and Wildlife Code, is repealed.  The aquaculture

4-49     executive committee is abolished on that date.

4-50           SECTION 8.  (a)  The Texas Animal Health Commission, the

4-51     Texas Natural Resource Conservation Commission, and the Parks and

4-52     Wildlife Department shall enter into a memorandum of agreement to

4-53     conduct a joint study.

4-54           (b)  The memorandum of agreement must:

4-55                 (1)  require that the joint study be completed and a

4-56     report made public before August 31, 1999;

4-57                 (2)  require that the joint study focus on the

4-58     occurrence of disease in discarded seafood and seafood processing

4-59     plant waste and the possibility of transmission of disease to

4-60     aquaculture facilities or to cultured species or other aquatic

4-61     species as a result of direct or indirect exposure to infected

4-62     waste;

4-63                 (3)  provide a strategy for the Texas Animal Health

4-64     Commission to ensure that a seafood processing plant disposes of

4-65     its waste in a manner that will minimize the transmission of

4-66     disease from the seafood processing plant to an aquaculture

4-67     facility or to cultured species or other aquatic species;

4-68                 (4)  include a plan for the seafood processing industry

4-69     to contribute financing, including grants, for conducting the joint

 5-1     study; and

 5-2                 (5)  provide that representatives of the aquaculture

 5-3     industry, representatives of  the seafood processing industry,

 5-4     educational institutions, and interested governmental agencies may

 5-5     contribute to the joint study.

 5-6           (c)  The Texas Natural Resource Conservation Commission, the

 5-7     Parks and Wildlife Department, and the Texas Animal Health

 5-8     Commission shall enter into the memorandum of agreement required by

 5-9     this section as soon as practicable on or after the effective date

5-10     of this Act.

5-11           SECTION 9.  This Act takes effect September 1, 1997.

5-12           SECTION 10.  (a)  The Department of Agriculture, the Parks

5-13     and Wildlife Department, and the Texas Animal Health Commission

5-14     shall coordinate any necessary transfer of files, personnel,

5-15     equipment, or related materials as soon as practicable on or after

5-16     the effective date of this Act.

5-17           (b)  A rule adopted by the Department of Agriculture with

5-18     regard to aquaculture licensing or regulation in effect immediately

5-19     before September 1, 1997, becomes a rule of the Texas Animal Health

5-20     Commission and the Parks and Wildlife Department and remains in

5-21     effect until amended or repealed by the commission or the

5-22     department, as applicable.

5-23           (c)  The validity of any action taken before September 1,

5-24     1997, by the Department of Agriculture with regard to an

5-25     aquaculture license or fish farm vehicle license is not affected by

5-26     this Act.  To the extent an action of the department continues to

5-27     have any effect on or after September 1, 1997, the action is

5-28     considered to be an action of the Texas Animal Health Commission.

5-29           (d)  The Texas Natural Resource Conservation Commission, the

5-30     Parks and Wildlife Department, and the Texas Animal Health

5-31     Commission shall, as soon as practicable on or after the effective

5-32     date of this Act, enter into the memorandum of agreement required

5-33     by Section 134.031, Agriculture Code, as added by this Act.

5-34           (e)  The aquaculture executive committee and the application

5-35     review committee shall coordinate any necessary transfer of files,

5-36     personnel, equipment, or related material not later than August 31,

5-37     1998.

5-38           SECTION 11.  The importance of this legislation and the

5-39     crowded condition of the calendars in both houses create an

5-40     emergency and an imperative public necessity that the

5-41     constitutional rule requiring bills to be read on three several

5-42     days in each house be suspended, and this rule is hereby suspended.

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