SRC-ARR S.B. 873 76(R)BILL ANALYSIS Senate Research CenterS.B. 873 By: Brown Natural Resources 8/5/1999 Enrolled DIGEST Currently, Texas is the largest producer of farm-raised shrimp in the country. In 1998, shrimp farm harvest was approximately 3.2 million pounds, with a total economic impact estimated at $29.1 million. The volume and content of wastewater discharge from aquaculture facilities has sparked concern about state bays and estuaries: disease-contaminated wastewater discharge, water quality, and general location of coastal aquaculture facilities. S.B. 873 will regulate aquaculture. PURPOSE As enrolled, S.B. 873 regulates aquaculture. RULEMAKING AUTHORITY Rulemaking authority is granted to the Texas Department of Agriculture in SECTION 1 (Section 134.005(a), Agriculture Code), to the Texas Department of Parks and Wildlife and the Texas Parks and Wildlife Commission in SECTION 7 (Sections 66.007(g) and (h), Parks and Wildlife Code) an the Texas Natural Resources Conservation Commission in SECTION 10 (Section 26.0292(c), Water Code) of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Chapter 134A, Agriculture Code, as follows: Sec. 134.001. DEFINITIONS. Redefines "cultured species," exotic species," "aquaculturist" and "fish farmer." Defines "operator," "commercial aquaculture facility," "new aquaculture facility," and "coastal zone." Deletes the definition of "owner." Sec. 134.002. AQUACULTURE PROGRAM. Authorizes the Department of Agriculture (department) to promote aquaculture products, provide technical assistance, provide support through governmental entities, solicit financial support from the federal government for the aquaculture industry, and perform other functions. Makes conforming changes. Sec. 134.003. PROGRAM ADMINISTRATOR; STAFF. Requires the department to designate a person to administer the department's program. Makes a conforming change. Sec. 134.004. CONTRACTS. Authorizes the department, the Texas Natural Resource Conservation Commission (TNRCC), the Texas Animal Health Commission (TAHC) and the Parks and Wildlife Department (TPWD) to contract with state, federal, or private entities for assistance in carrying out the purposes of this chapter. Sec. 134.005. RULES. Requires the department and TPWD to adopt rules to carry out their respective duties under this chapter, rather than the aquaculture program. Requires the department, by rule, to establish record keeping requirements for a commercial aquaculture facility. Makes conforming changes. Sec. 134.006. AQUACULTURE FUND. Makes no change. SECTION 2. Amends Sections 134.011-134.014, Agriculture Code, as follows: Sec. 134.011. New heading: LICENSING. Requires the department to take certain actions. Requires the department to provide a copy of each aquaculture license application to the TPWD and the TNRCC. Prohibits the department from issuing a license for a new aquaculture facility unless the facility has been authorized by TNRCC to dispose of wastewater, or the facility will not dispose of wastewater into waters in the state. Sec. 134.012. FISH FARM VEHICLE LICENSE REQUIRED. Requires a vehicle to have a fish farm vehicle license, if the vehicle is used to transport cultured species from a private facility, and the cultured species are sold from the vehicle. Requires a person who operates a vehicle that is owned by the holder of an aquaculture license to keep a copy of the license in the vehicle when transporting culture species from a private facility. Deletes text regarding transporting fish. Sec. 134.013. New heading: ADDITIONAL REQUIREMENTS FOR SHRIMP PRODUCTION WITHIN THE COASTAL ZONE. Sets forth requirements for a commercial aquaculture facility located within the coastal zone engaged in the production of shrimp. Requires the department to require the applicant to provide a report describing the existing environmental conditions at the proposed site, including aquatic habitat and the conditions of the waters in the state into which a discharge is proposed. Requires the report to provide an assessment of any potential impact of the wastewater discharges on sensitive aquatic habitats in the areas of the proposed site, significant impacts related to the construction or operation of the facility, and any mitigation actions proposed by the applicant, before issuing a license to a new aquaculture facility. Requires the applicant to provide the report required under Subsection (b) to TNRCC and the TPWD. Prohibits TNRCC from issuing a wastewater discharge permit to a new aquaculture facility designed for the commercial production of shrimp located within the coastal zone without consideration of the report described by Subsection (b). Requires the TNRCC to establish guidelines relating to the report required by Subsection (b) that takes certain action, in consultation with the department and TPDW. Deletes existing section requiring a bill of lading. Sec. 134.014. LICENSE FEES. Requires the department to issue an aquaculture license or a fish farm vehicle license on completion of applicable license requirements and the payment of a fee by the applicant, as provided by department rule. SECTION 3. Amends Section 134.015(c), Agriculture Code, to authorize the department to suspend an aquaculture license if it is determined that the licensee has violated this chapter, a rule adopted under this chapter, or Section 66.007, Parks and Wildlife Code. SECTION 4. Amends Section 134.016, Agriculture Code, as follows: Sec. 134.016. RECORDS. Requires the holder of an aquaculture license to maintain a record of sale of cultured species for a period of time not less than one year. Provides that the record is open for inspection by designated employees of the Parks and Wildlife Department and the department during normal business hours. Requires a record of sale for commercially protected finfish to contain certain information. SECTION 5. Amends Section 134.023(b), Agriculture Code, to make a conforming change. SECTION 6. Amends Section 134, Agriculture Code, by adding Subchapter C, as follows: SUBCHAPTER C. INTERAGENCY COOPERATION Sec. 134.031. MEMORANDUM OF UNDERSTANDING. Requires the department, TNRCC, and TPWD to enter into a memorandum of understanding for the regulation of matters related to aquaculture. Requires TNRCC, after receiving an application for a wastewater discharge authorization from an aquaculture facility, to provide a copy of the application to the department and the TPWD. Requires the department, TNRCC, and TPWD, to each appoint one member of a three-member application review committee to review the wastewater discharge authorization application to ensure that the proposed discharge will not adversely affect a bay, an estuary, or other waters in the state. Authorizes TPWD, in consultation with TNRCC, to establish general guidelines that identify sensitive aquatic habitat within the coastal zone. Requires the general guidelines to include factors such as presence of sea grass beds, depth of receiving waters and amount of tidal exchange. Requires TPWD to provide the guidelines to the TNRCC and the department, if TPWD establishes the guidelines in Subsection (d). Requires TNRCC to consider the guidelines when reviewing wastewater facilities located within the coastal zone, or expansion or existing facilities located within the coastal zone if the expansion will increase the amount of discharge, or change the nature of the discharge, above levels allowed by the wastewater discharge permit. Requires the TPDW, in consultation with the TNRCC, to consider the best management practices that the facilities developed under the direction of the TNRCC, in developing the guidelines under Subsection (d) applicable to aquaculture facilities engaged in the production of shrimp in the coastal zone. Requires the best management practices developed by the facilities to be considered, in the development of siting guidelines for aquaculture facilities engaged in the production of shrimp in the coastal zone. SECTION 7. Amends Section 66.007, Parks and Wildlife Code, by adding Subsections (g)-(l), to authorize the Texas Parks and Wildlife Commission (commission) to adopt rules to control a disease or agent of disease transmission that may affect penaeid shrimp species and has the potential to affect cultured species or other aquatic species. Requires the department to immediately place the aquaculture facility under quarantine condition, if one or more manifestations of disease is observed in any cultured marine penaeid shrimp species. Requires the TDPW to determine, by rule, the meaning of "manifestation of disease" and "quarantine condition." Authorizes TPDW to coordinate with TAHC regarding testing for diseases. Prohibits an operator of an aquaculture facility under quarantine from discharging waste or another substance from the facility except with approval of the department and wastewater discharge authorization from the TNRCC, except as provided in Subsection (k). Requires an aquaculture facility to discharge wastewater or another substance as necessary to comply with an emergency plan that has been submitted to and approved by the department and incorporated into a wastewater discharge authorization issued by the TNRCC. Requires the TPWD to perform certain immediate actions, on receiving notice from an owner of the observance of manifestations of disease. SECTION 8. Amends Section 66.020(f), Parks and Wildlife Code, to authorize the TPWD, rather than the commission, to provide a prenumbered invoice to a person importing any of the fish described in by Subsection (a). SECTION 9. Amends Chapter 26B, Water Code, by adding Section 26.0345, as follows: Sec. 26.0345. DISCHARGE FROM AQUACULTURE FACILITIES. Requires TNRCC, in consultation with the Department of Agriculture, and TPWD, to establish permit conditions relating to suspended solids in a discharge permit for an aquaculture facility located within the coastal zone and engaged in shrimp production that are based on levels and measures adequate to prevent certain actions, in addition to wastewater permit conditions established under the authority of Sections 5.102, 5.103, 5.120, and 26.040, Water Code. Defines "coastal zone." SECTION 10. Amends Chapter 26B, Water Code, by adding Section 26.0292 Natural Resources Code, as follows: Sec. 26.0292. FEES CHARGED TO AQUACULTURE FACILITIES. Defines "aquaculture facility." Prohibits the combined fees charged to an aquaculture facility under those sections from totaling more than $5,000 in any year, notwithstanding Sections 26.0135 and 26.0291. Requires the TNRCC by rule to provide that among aquaculture facilities, the fees charged under this section are reasonably assessed according to the pollutant load of the facility. SECTION 11. Repealer: Chapter 1D, Parks and Wildlife Code, effective September 1, 1999. Abolishes the aquaculture executive committee on that date. SECTION 12. Effective date: September 1, 1999. SECTION 13. Requires the Department of Agriculture, TNRCC, and TPWD as soon as practicable on or after the effective date of this Act, enter into a memorandum of understanding required by Section 134.031, Agriculture Code, as added by this Act. SECTION 14. Emergency clause.