HBA-NIK S.B. 1303 76(R) BILL ANALYSIS Office of House Bill AnalysisS.B. 1303 By: Brown Natural Resources 4/19/1999 Engrossed BACKGROUND AND PURPOSE Current law does not allow a license management program for a commercial finfish fishery. A person can obtain a license to commercially harvest and sell finfish in Texas, however, this open access system has lead to overcapitalization of finfish fishery resulting in excess taking of finfish stocks and a decline in economic stability in the industry. The Parks and Wildlife Commission has placed restrictions on areas for fishing, times for fishing, size limits, bag and possession limits, and quantity and type of gear under the authority of Chapters 47 (Commercial Fishing Licenses) and 66 (Fish), Parks and Wildlife Code. Additionally, current law does not allow for the creation of new licenses, which does not allow a mechanism to create new opportunities for fishery harvest. S.B. 1303 specifies the duties of a member of the review board and authorizes the Parks and Wildlife Commission to create a license management program for the commercial finfish fishery, and would establish fees and license for commercial finfish fishing. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that rulemaking authority is expressly delegated to the Texas Parks and Wildlife Commission in SECTION 7 (Sections 47.079, 47.081, and 47.084, Parks and Wildlife Code) of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Sections 47.001(1) and (2), Parks and Wildlife Code, to redefine "commercial fisherman" and "commercial finfish fisherman." SECTION 2. Amends Section 47.002, Parks and Wildlife Code, by adding Subsection (i), to provide that a person who engages in commercial finfish fishing under Subchapter D and who holds a commercial finfish fisherman's license issued under Subchapter D and possesses that license on board is not required to obtain or possess a general commercial fisherman's license. SECTION 3. Amends Section 47.007, Parks and Wildlife Code, by adding Subsection (f), to provide that a person who engages in commercial finfish fishing under Subchapter D and who holds a commercial finfish fisherman's license issued under Subchapter D and possesses that license on board is not required to obtain or possess a commercial fishing boat license. SECTION 4. Amends Section 47.0091, Parks and Wildlife Code, to prohibit a wholesale fish dealer from purchasing for resale or receiving for sale, barter, exchange, or any other commercial purpose any aquatic product from any person or entity in this state unless the fish dealer purchases the product from the holder of, among other enumerated licenses, a commercial crab fisherman's license or a commercial finfish fisherman's license. SECTION 5. Amends Section 47.0111, Parks and Wildlife Code, to make conforming changes by inserting references to commercial crab fisherman and commercial finfish fisherman licenses. SECTION 6. Amends Section 47.012, Parks and Wildlife Code, to make conforming changes by inserting references to commercial crab fisherman and commercial finfish fisherman licenses. SECTION 7. Amends Chapter 47, Parks and Wildlife Code, by adding Subchapters D and E, as follows: SUBCHAPTER D. FINFISH LICENSE MANAGEMENT Sec. 47.071. FINFISH LICENSE MANAGEMENT PROGRAM. Requires the Parks and Wildlife Department (department) to implement, not later than September 1, 2000, a finfish license management program in accordance with proclamations adopted by the Parks and Wildlife Commission (commission) under Chapter 61 (Uniform Wildlife Regulatory Act) and this subchapter to promote efficiency and economic stability in the commercial finfish industry and to conserve economically important finfish resources. Sec. 47.072. DEFINITION. Defines "license." Sec. 47.073. FINFISH LICENSE MANAGEMENT REVIEW BOARD. Requires the license holders under this subchapter to elect a finfish license management review board (board) of nine members. Prohibits a majority of the members of the board from being residents of the same county. Requires the board to advise the commission and the department and make recommendations concerning the administrative aspects of the finfish licensing program. Requires the executive director of the department (executive director) to adopt procedures for the operation of the board and the election and terms of board members. Requires the executive director to solicit and consider recommendations regarding these procedures from persons who purchased commercial finfish fisherman's licenses after September 1, 1997 and through December 17, 1998. Requires a member of the board to qualify to obtain a commercial finfish fisherman's license under this subchapter, or be a person who has knowledge of the commercial finfish industry, subject to Chapter 2110 (State Agency Advisory Committees), Government Code. Provides that a member of the board serves without compensation or a per diem allowance. Sec. 47.074. LICENSING. Prohibits a person from engaging in business as a commercial finfish fisherman unless the person has obtained a commercial finfish fisherman's license or a license adopted by the commission under this subchapter. Prohibits a person from engaging in commercial finfish fishing aboard a boat operating under a license issued by the commission unless the person possesses on board the boat a commercial finfish fisherman's license issued to the person, or a general commercial fisherman's license issued to the person, a commercial finfish fisherman's license issued to another person, and a copy of an affidavit that contains specified information; or the person possesses on board a commercial finfish fisherman's license or a general commercial fisherman's license, and another person possesses on board the documentation described above. Authorizes the department to issue a commercial finfish fisherman's license only to a person who documents in a manner acceptable to the department that the person held a commercial finfish fisherman's license during the period after September 1, 1997, through December 17, 1998. Requires a proclamation issued under this section to establish a commercial finfish fisherman's license in accordance with the provisions of this subchapter. Sec. 47.075. LICENSE FEE. Provides that the fee for a commercial finfish fisherman's license issued under this subchapter is $300 or an amount set by the commission, whichever amount is more. Provides that all fees generated by the issuance of a license under this subchapter are to be sent to the comptroller for deposit to the credit of the game, fish, and water safety account subject to Section 47.081(d). Sec. 47.076. LICENSE RENEWAL. Provides that a person seeking to renew a license established by this subchapter must have held the license during the preceding license year. Sec. 47.077. LIMIT ON NUMBER OF LICENSES HELD. Prohibits a person from holding or directly or indirectly controlling more than one license issued under this subchapter. Provides a license issued to a person other than an individual must designate an individual in whose name the license is issued. Sec. 47.078. EXPIRATION OF LICENSE. Provides that a license required by this subchapter is valid only during the period for which it is issued without regard to the date on which the license is acquired. Provides that each period is one year beginning on September 1 or another date set by the commission. Sec. 47.079. LICENSE TRANSFER. Authorizes the commission, by rule, to set a fee for the transfer of a license. Prohibits the amount of the transfer fee from exceeding the amount of the license fee. Requires the commission to send all license transfer fees to the comptroller for deposit to the credit of the game, fish, and water safety account subject to Section 47.081(d). Requires the commission, by proclamation, to allow a license to be transferred beginning not later than September 1, 2002. Authorizes a license to be transferred at any time to an heir or devisee of a deceased license holder but only if the heir or devisee is a person who in the absence of a will, would be entitled to all or a portion of the deceased's property. Authorizes a license to be transferred at any time to a member of a license holder's immediate family. Defines "member of a license holder's immediate family" for purposes of this subsection. Sec. 47.080. LICENSE SUSPENSION AND REVOCATION. Authorizes the executive director to suspend a commercial finfish fisherman's license, after notice and opportunity for a hearing, if the license holder or any other operator of the licensed vessel is convicted of one or more flagrant offenses totaling three flagrant offenses for the licensed vessel or the license holder is convicted of theft of fishing gear or related products. Authorizes the suspension to be for six months or 12 months under certain conditions. Authorizes the executive director to permanently revoke a license issued under certain conditions. Prohibits the same flagrant offense from being counted for more than one suspension under this section. Provides that a flagrant offense includes enumerated actions. Sec. 47.081. LICENSE BUYBACK. (a) Authorizes the department to implement a license buyback program for licenses issued under this subchapter as part of the finfish license management program established by this subchapter. (b) Authorizes the commission, by rule, to establish criteria using reasonable classifications, by which the department selects licenses to be purchased. Authorizes the commission to delegate to the executive director, for purposes of this section only, the authority to develop the criteria through rulemaking procedures, but the commission by order must finally adopt the rules establishing the criteria. Provides that the commission or executive director must consult with the board concerning establishment of the criteria. (c) Provides that the commission must retire each license purchased under the license buyback program until the commission finds that management of the finfish fishery allows reissue of those licenses through auction or lottery. (d) Requires the department to set aside at least 20 percent of the fees from licenses issued and license transfers approved under this subchapter to be used only for the purpose of buying back those licenses from a willing license holder. Requires that money to be sent to the comptroller for deposit to the credit of the game, fish, and water safety account. (e) Authorizes the department to solicit and accept grants and donations of money or materials from private or public sources for the purpose of buying back licenses issued under this subchapter from a willing license holder. (f) Provides that money to be used for the purpose of buying back licenses issued under this subchapter is not subject to Section 403.095 (Use of Dedicated Revenue), Government Code. Sec. 47.082. LINE LIMITS. Requires the commission, by proclamation and not later than September 1, 2000, to authorize the holder of a commercial finfish fisherman's license to use up to 20 trotlines not more than 600 feet long, or another number and length of line authorized by commission proclamation, to take or attempt to take finfish. Prohibits a holder of a commercial finfish fisherman's license from possessing on board more than the number of lines prescribed by this code or by commission proclamation issued under this code. Sec. 47.083. CRAB TRAPS. Requires the commission, by proclamation and not later than September 1, 2000, to authorize the holder of a commercial finfish fisherman's license to use up to 20 crab traps, or a number of traps authorized by commission proclamation, for use in commercial fishing for bait purposes only. Provides that this section does not authorize the taking of any product for pay or for the purpose of sale, barter, or exchange. Sec. 47.084. PROGRAM ADMINISTRATION; RULES. Requires the executive director to establish administrative procedures to carry out the requirements of this subchapter. Requires the commission to adopt any rules necessary for the administration of the program established under this subchapter. Requires the commission to prescribe all gear marking requirements for trotlines and crab traps under this subchapter in accordance with Chapter 66 (Fish), Parks and Wildlife Code. Sec. 47.085. DISPOSITION OF FUNDS. Requires money received for a license issued under this subchapter and fines for violations of this subchapter to be remitted to the department by the 10th day of the month following the date of collection. Sec. 47.086. PROCLAMATION; PROCEDURES. Provides that Subchapter D (Administrative Procedures), Chapter 61, and Sections 61.054 (Proclamations of the Commission) and 61.055 (Amendments and Revocations) apply to the adoption of proclamations under this subchapter. SECTION 8. Amends Section 66.016, Parks and Wildlife Code, to include a person on board a boat licensed or required to be licensed for commercial fishing activity under Chapter 78 (Mussels, Clams, and Crabs) among the other listed chapters who is prohibited from catching or retaining any fish species whose sale is prohibited when taken from Texas waters. Makes a conforming change. SECTION 9. Amends Subsection (f), Section 66.019, Parks and Wildlife Code, to include the general commercial fisherman's license number and the commercial finfish fisherman's license number or the general commercial fisherman's license number and the commercial crab fisherman's license number, as applicable, if the holder of the general commercial fisherman's license is selling finfish or crabs among the information that a cash sale ticket must include. Redesignates Subdivisions (3)-(6) to (4)-(7). Makes a conforming change. SECTION 10. Amends Section 66.206, Parks and Wildlife Code, effective September 1, 2000, by adding Subsection (e), to provide that this section does not apply to a person fishing trotlines under a commercial finfish fisherman's license. SECTION 11. Requires that the department, not later than September 1, 2000, implement a finfish license management program as provided by Section 47.071, Parks and Wildlife Code, as added by this Act. Provides that on the effective date of a proclamation issued by the commission under Subchapter D, Chapter 47, Parks and Wildlife Code, establishing requirements for a commercial finfish fisherman's license under that subchapter, Section 47.003 (Commercial Finfish Fisherman's License), Parks and Wildlife Code, is repealed. SECTION 12. Requires the department to issue a written report to the governor and the legislature not later than the beginning of the second regular legislative session to convene following the implementation of a finfish license management program under Subchapter D, Chapter 47, Parks and Wildlife Code, as added by this Act. Requires the report to include an overview of the administration and status of the license management program, including the biological, social, and economic effects of the program. SECTION 13. Effective date: September 1, 1999. SECTION 14. Emergency clause.