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 only:
 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 in the [of this]
1-12     state.
1-13                 (3)  "Aquaculturist" or "fish farmer" means any person
1-14     engaged [licensed under this chapter to engage] in aquaculture or
1-15     fish farming.
1-16                 (4)  "Aquaculture" or "fish farming" means the business
1-17     of producing and selling cultured species raised in private
1-18     facilities. Aquaculture or fish farming is an agricultural
1-19     activity.
1-20                 (5)  "Private facility" means a pond, tank, cage, or
1-21     other structure capable of holding cultured species in confinement
1-22     wholly within or on private land or water or within or on permitted
1-23     public land or water.
1-24                 (6)  "Operator" means any person or entity in control
 2-1     of or having responsibility for the daily operation of an
 2-2     aquaculture facility ["Owner" means an aquaculturist operating a
 2-3     facility licensed by the department].
 2-4                 (7)  "Commercial aquaculture facility" means an
 2-5     aquaculture facility designed primarily for the production of
 2-6     cultured species for the purposes of sale, barter, or exchange.
 2-7                 (8)  "New aquaculture facility" means a commercial
 2-8     aquaculture facility whose owner or operator initially sought waste
 2-9     discharge authorization from the Texas Natural Resource
2-10     Conservation Commission after January 19, 1999.
2-11                 (9)  "Coastal zone" has the meaning assigned by Section
2-12     33.004, Natural Resources Code.
2-13           Sec. 134.002.  Aquaculture Program.  The department may
2-14     [shall establish an aquaculture program that]:
2-15                 (1)  promote [develops and conducts a plan for
2-16     promoting] aquaculture products;
2-17                 (2)  provide [licenses and regulates aquaculture
2-18     operations;]
2-19                 [(3)  provides] technical assistance, including
2-20     demonstrations, to aquaculturists;
2-21                 (3)  provide [(4)  provides] coordinated support
2-22     through colleges and universities and other governmental entities;
2-23                 (4)  solicit [(5)  solicits] financial support from the
2-24     federal government for the aquaculture industry;
2-25                 (5)  develop [(6)  develops] and expand [expands] the
2-26     aquaculture industry to:
 3-1                       (A)  stimulate the state's economy; and
 3-2                       (B)  offer alternative crop opportunities; and
 3-3                 (6)  perform [(7)  performs] other functions and
 3-4     activities as required by law.
 3-5           Sec. 134.003.  Program Administrator; Staff.  (a)  The
 3-6     department shall designate a person to administer the department's
 3-7     aquaculture program.
 3-8           (b)  The department or the department's program administrator
 3-9     may employ the necessary staff to carry out the functions and
3-10     duties of the department under this chapter.
3-11           Sec. 134.004.  Contracts.  The department, the Texas Natural
3-12     Resource Conservation Commission, the Texas Animal Health
3-13     Commission, and the Parks and Wildlife Department may contract with
3-14     state, federal, or private entities for assistance in carrying out
3-15     the purposes of this chapter.
3-16           Sec. 134.005.  Rules.  (a)  The department and the Parks and
3-17     Wildlife Commission shall adopt rules to carry out their respective
3-18     duties under this chapter [the aquaculture program].
3-19           (b)  The department by rule shall establish record-keeping
3-20     requirements for a commercial aquaculture facility.
3-21           (c)  The rules may not conflict with rules issued under
3-22     Section 134.020 [of this code].
3-23           Sec. 134.006.  Aquaculture Fund.  (a)  The aquaculture fund
3-24     is established in the state treasury.
3-25           (b)  The department shall deposit to the credit of the fund
3-26     the fees received from licenses issued under this chapter.
 4-1           (c)  The aquaculture fund may be used only to administer this
 4-2     chapter.
 4-3           SECTION 2.  Sections 134.011, 134.012, 134.013, and 134.014,
 4-4     Agriculture Code, are amended to read as follows:
 4-5           Sec. 134.011.  LICENSING [AQUACULTURE LICENSE REQUIRED].
 4-6     (a)  A person may not operate an aquaculture facility without first
 4-7     having acquired from the department an aquaculture license.
 4-8           (b)  The department shall:
 4-9                 (1)  maintain an application process for an aquaculture
4-10     license;
4-11                 (2)  license aquaculture facilities; and
4-12                 (3)  regulate aquaculture operations.
4-13           (c)  The department shall provide a copy of each aquaculture
4-14     license application to the Parks and Wildlife Department and the
4-15     Texas Natural Resource Conservation Commission.
4-16           (d)  The department may not issue a license for a new
4-17     aquaculture facility unless the facility has been authorized by the
4-18     Texas Natural Resource Conservation Commission to dispose of
4-19     wastewater or the facility will not dispose of wastewater into
4-20     waters in the state.
4-21           Sec. 134.012.  Fish Farm Vehicle License Required.
4-22     (a)  Except as provided by Subsection (b) [of this section], if a
4-23     vehicle is used to transport cultured species from a private
4-24     facility and the cultured species are sold from the vehicle, the
4-25     vehicle [a vehicle used to transport fish from a fish farm for sale
4-26     from the vehicle] is required to have a fish farm vehicle license.
 5-1           (b)  A fish farm vehicle license is not required for a
 5-2     vehicle owned and operated by the holder of an aquaculture license.
 5-3           (c)  A person who operates a vehicle that is owned by the
 5-4     holder of an aquaculture license must keep a copy of the license in
 5-5     the vehicle when transporting cultured species from a private
 5-6     facility.
 5-7           Sec. 134.013.  ADDITIONAL REQUIREMENTS FOR SHRIMP PRODUCTION
 5-8     WITHIN THE COASTAL ZONE.  (a)  A commercial aquaculture facility
 5-9     located within the coastal zone and engaged in the production of
5-10     shrimp:
5-11                 (1)  must obtain a site-specific wastewater discharge
5-12     permit from the Texas Natural Resource Conservation Commission
5-13     before the facility may discharge wastewater if the facility will
5-14     discharge wastewater or another substance into waters in the state;
5-15                 (2)  must provide the report described in Subsection
5-16     (b) and is subject to the review described in Section 134.031(c) if
5-17     the aquaculture facility applies for a site-specific discharge
5-18     permit;
5-19                 (3)  must obtain an amendment to its site-specific
5-20     discharge permit from the Texas Natural Resource Conservation
5-21     Commission before the facility may increase the amount of discharge
5-22     or change the nature of the discharge above levels allowed by the
5-23     wastewater discharge permit issued by the Texas Natural Resource
5-24     Conservation Commission, except as otherwise provided by Section
5-25     26.0191, Water Code; and
5-26                 (4)  must provide the report described by Subsection
 6-1     (b) and is subject to the review described in Section 134.031(c)
 6-2     before the facility may increase the amount of discharge, or change
 6-3     the nature of the discharge above levels allowed by the wastewater
 6-4     discharge permit issued by the Texas Natural Resource Conservation
 6-5     Commission, except as otherwise provided by Section 26.0191, Water
 6-6     Code.
 6-7           (b)  Before issuing a license to a new aquaculture facility
 6-8     designed for the commercial production of shrimp that will
 6-9     discharge wastewater into waters in the state within the coastal
6-10     zone, the department shall require the applicant to provide a
6-11     report describing the existing environmental conditions at the
6-12     proposed site, including aquatic habitat and the conditions of the
6-13     waters in the state into which a discharge is proposed.  The report
6-14     must provide an assessment of any potential impacts of wastewater
6-15     discharges on sensitive aquatic habitats in the area of the
6-16     proposed site, significant impacts related to the construction or
6-17     operation of the facility, and any mitigation actions proposed by
6-18     the applicant.
6-19           (c)  The applicant must provide the report required under
6-20     Subsection (b) to the Texas Natural Resource Conservation
6-21     Commission and the Parks and Wildlife Department.  The Texas
6-22     Natural Resource Conservation Commission may not issue a wastewater
6-23     discharge permit to a new aquaculture facility designed for the
6-24     commercial production of shrimp and located within the coastal zone
6-25     without consideration of the report described by Subsection (b).
6-26           (d)  In coordination with the department and the Parks and
 7-1     Wildlife Department, the Texas Natural Resource Conservation
 7-2     Commission shall establish guidelines relating to the report
 7-3     required by Subsection (b) that:
 7-4                 (1)  give public notice as to what the reporting
 7-5     requirements include; and
 7-6                 (2)  minimize duplication of reporting requirements and
 7-7     other requirements related to the application for a wastewater
 7-8     discharge permit.  [BILL OF LADING REQUIRED.  A person operating a
 7-9     vehicle transporting fish regulated by a bag, possession, or size
7-10     limit and prohibited from sale if taken from the public waters of
7-11     this state shall carry a bill of lading that shows the number and
7-12     species carried, the name of the owner and the location and license
7-13     number of the aquaculture facility from which the species were
7-14     transported, and the destination of the cargo.]
7-15           Sec. 134.014.  License Fees.  The department shall issue an
7-16     aquaculture license or a fish farm vehicle license on completion of
7-17     applicable license requirements and the payment of a fee by the
7-18     applicant, as provided by department rule.
7-19           SECTION 3.  Subsection (c), Section 134.015, Agriculture
7-20     Code, is amended to read as follows:
7-21           (c)  The department may suspend an aquaculture license if it
7-22     is determined that the licensee has violated this chapter, [or] a
7-23     rule adopted under this chapter, or Section 66.007, Parks and
7-24     Wildlife Code.
7-25           SECTION 4.  Section 134.016, Agriculture Code, is amended to
7-26     read as follows:
 8-1           Sec. 134.016.  RECORDS.  (a)  The holder of an aquaculture
 8-2     license shall maintain a record of sales of cultured species[,
 8-3     regulated by a bag, possession, or size limit] for a period of time
 8-4     of not less than one year.  The record is open for inspection by
 8-5     designated employees of the Parks and Wildlife Department and the
 8-6     department during normal business hours.
 8-7           (b)  A record of sale for commercially protected finfish as
 8-8     provided by Section 66.020, Parks and Wildlife Code, shall contain
 8-9     at least the following information:
8-10                 (1)  invoice number;
8-11                 (2)  date of shipment;
8-12                 (3)  name and address of shipper;
8-13                 (4)  name and address of receiver; and
8-14                 (5)  number and weight of whole fish or fillets, by
8-15     species, contained in the shipment.
8-16           SECTION 5.  Subsection (b), Section 134.023, Agriculture
8-17     Code, is amended to read as follows:
8-18           (b)  A person who violates Section 134.019 or 134.020 [of
8-19     this code] commits an offense that is a Class B misdemeanor.
8-20           SECTION 6.  Chapter 134, Agriculture Code, is amended by
8-21     adding Subchapter C to read as follows:
8-22                   SUBCHAPTER C.  INTERAGENCY COOPERATION
8-23           Sec. 134.031.  MEMORANDUM OF UNDERSTANDING.  (a)  The
8-24     department, the Texas Natural Resource Conservation Commission, and
8-25     the Parks and Wildlife Department shall enter into a memorandum of
8-26     understanding for the regulation of matters related to aquaculture.
 9-1           (b)  The Texas Natural Resource Conservation Commission,
 9-2     after receiving an application for a wastewater discharge
 9-3     authorization from an aquaculture facility, shall provide a copy of
 9-4     the application to the department and the Parks and Wildlife
 9-5     Department.
 9-6           (c)  The department, the Texas Natural Resource Conservation
 9-7     Commission, and the Parks and Wildlife Department shall each
 9-8     appoint one member of a three-member application review committee
 9-9     to review the wastewater discharge authorization application to
9-10     ensure that the proposed discharge will not adversely affect a bay,
9-11     an estuary, or other waters in the state.
9-12           (d)  The Parks and Wildlife Department, in consultation with
9-13     the Texas Natural Resource Conservation Commission, may establish
9-14     general guidelines that identify sensitive aquatic habitat within
9-15     the coastal zone.  The general guidelines must include factors such
9-16     as the presence of sea grass beds, depth of receiving waters, and
9-17     amount of tidal exchange.
9-18           (e)  If the Parks and Wildlife Department establishes the
9-19     guidelines described in Subsection (d), the Parks and Wildlife
9-20     Department must provide the guidelines to the Texas Natural
9-21     Resource Conservation Commission and the department.
9-22           (f)  If the Parks and Wildlife Department has established the
9-23     guidelines described in Subsection (d), the Texas Natural Resource
9-24     Conservation Commission must consider the guidelines when reviewing
9-25     wastewater discharge authorization applications for new aquaculture
9-26     facilities located within the coastal zone, or expansion of
 10-1    existing facilities located within the coastal zone if the
 10-2    expansion will increase the amount of discharge, or change the
 10-3    nature of the discharge, above levels allowed by the wastewater
 10-4    discharge permit.
 10-5          (g)  In developing the guidelines under Subsection (d)
 10-6    applicable to aquaculture facilities engaged in the production of
 10-7    shrimp in the coastal zone, the Parks and Wildlife Department, in
 10-8    consultation with the Texas Natural Resource Conservation
 10-9    Commission, shall consider the best management practices that the
10-10    facilities developed under the direction of the Texas Natural
10-11    Resource Conservation Commission.
10-12          (h)  In the development of siting guidelines for aquaculture
10-13    facilities engaged in the production of shrimp in the coastal zone,
10-14    the best management practices developed by the facilities shall be
10-15    considered.
10-16          SECTION 7.  Section 66.007, Parks and Wildlife Code, is
10-17    amended by adding Subsections (g), (h), (i), (j), (k), and (l) to
10-18    read as follows:
10-19          (g)  The commission may adopt rules to control a disease or
10-20    agent of disease transmission that:
10-21                (1)  may affect penaeid shrimp species; and
10-22                (2)  has the potential to affect cultured species or
10-23    other aquatic species.
10-24          (h)  If one or more manifestations of disease is observed in
10-25    any cultured marine penaeid shrimp species, the department shall
10-26    immediately place the aquaculture facility under quarantine
 11-1    condition.  The department shall determine, by rule, the meaning of
 11-2    "manifestation of disease" and "quarantine condition" under this
 11-3    section.
 11-4          (i)  The department may coordinate with the Texas Animal
 11-5    Health Commission regarding testing for diseases.
 11-6          (j)  Except as provided in Subsection (k), an operator of an
 11-7    aquaculture facility under quarantine condition may not discharge
 11-8    waste or another substance from the facility except with approval
 11-9    of the department and a wastewater discharge authorization from the
11-10    Texas Natural Resource Conservation Commission.
11-11          (k)  Even if under quarantine condition, an aquaculture
11-12    facility shall discharge wastewater or another substance as
11-13    necessary to comply with an emergency plan that has been submitted
11-14    to and approved by the department and incorporated into a
11-15    wastewater discharge authorization issued by the Texas Natural
11-16    Resource Conservation Commission.
11-17          (l)  On receiving notice from an owner of the observance of
11-18    manifestations of disease, the department shall immediately:
11-19                (1)  notify the Department of Agriculture, the Texas
11-20    Natural Resource Conservation Commission, and the Texas Animal
11-21    Health Commission; and
11-22                (2)  advise the Department of Agriculture, the Texas
11-23    Natural Resource Conservation Commission, and the Texas Animal
11-24    Health Commission regarding the appropriate action to be taken.
11-25          SECTION 8.  Subsection (f), Section 66.020, Parks and
11-26    Wildlife Code, is amended to read as follows:
 12-1          (f)  The commission by proclamation may require fish imported
 12-2    under this section to be tagged, packaged, and labeled and to be
 12-3    accompanied by an invoice.  The department [commission] may provide
 12-4    a prenumbered invoice to a person importing any of the fish
 12-5    described by Subsection (a) of this section into this state from
 12-6    another state or foreign country and may charge a fee for the
 12-7    invoice in an amount determined by the commission that is
 12-8    reasonable to defray the administrative costs incurred under this
 12-9    subsection.  The invoice shall be used to report shipments of any
12-10    of the fish described by Subsection (a) of this section.  A person
12-11    who receives invoices under this subsection must account to the
12-12    department for all invoices received as required by rules adopted
12-13    by the commission.  A person commits an offense if the person fails
12-14    or refuses to account for an invoice as required by commission
12-15    rules.
12-16          SECTION 9.  Subchapter B, Chapter 26, Water Code, is amended
12-17    by adding Section 26.0345 to read as follows:
12-18          Sec. 26.0345.  DISCHARGE FROM AQUACULTURE FACILITIES.
12-19    (a)  In addition to wastewater permit conditions established under
12-20    the authority of Sections 5.102, 5.103, 5.120, and 26.040, the
12-21    Texas Natural Resource Conservation Commission, in consultation
12-22    with the Department of Agriculture and the Parks and Wildlife
12-23    Department, shall establish permit conditions relating to suspended
12-24    solids in a discharge permit for an aquaculture facility located
12-25    within the coastal zone and engaged in shrimp production that are
12-26    based on levels and measures adequate to prevent:
 13-1                (1)  potential significant adverse responses in aquatic
 13-2    organisms, changes in flow patterns of receiving waters, or
 13-3    untimely filling of bays with settled solids; or
 13-4                (2)  a potential significant adverse response in
 13-5    aquatic plants from attenuation of light by suspended solids in
 13-6    discharges.
 13-7          (b)  In this section, "coastal zone" has the meaning assigned
 13-8    by Section 33.004, Natural Resources Code.
 13-9          SECTION 10.  Subchapter B, Chapter 26, Water Code, is amended
13-10    by adding Section 26.0292 to read as follows:
13-11          Sec. 26.0292.  FEES CHARGED TO AQUACULTURE FACILITIES.
13-12    (a)  "Aquaculture facility" means a facility engaged in aquaculture
13-13    as defined in Section 134.001, Agriculture Code.
13-14          (b)  Notwithstanding Sections 26.0135 and 26.0291, the
13-15    combined fees charged to an aquaculture facility under those
13-16    sections may not total more than $5,000 in any year.
13-17          (c)  The commission by rule shall provide that among
13-18    aquaculture facilities, the fees charged under this section are
13-19    reasonably assessed according to the pollutant load of the
13-20    facility.
13-21          SECTION 11.  Effective September 1, 1999, Subchapter D,
13-22    Chapter 1, Parks and Wildlife Code, is repealed and the aquaculture
13-23    executive committee is abolished.
13-24          SECTION 12.  This Act takes effect September 1, 1999.
13-25          SECTION 13.  The Department of Agriculture, the Texas Natural
13-26    Resource Conservation Commission, and the Parks and Wildlife
 14-1    Department shall, as soon as practicable on or after the effective
 14-2    date of this Act, enter into the memorandum of understanding
 14-3    required by Section 134.031, Agriculture Code, as added by this
 14-4    Act.
 14-5          SECTION 14.  The importance of this legislation and the
 14-6    crowded condition of the calendars in both houses create an
 14-7    emergency and an imperative public necessity that the
 14-8    constitutional rule requiring bills to be read on three several
 14-9    days in each house be suspended, and this rule is hereby suspended.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I hereby certify that S.B. No. 873 passed the Senate on
         March 30, 1999, by the following vote:  Yeas 30, Nays 0; and that
         the Senate concurred in House amendments on May 28, 1999, by a
         viva-voce vote.
                                             _______________________________
                                                 Secretary of the Senate
               I hereby certify that S.B. No. 873 passed the House, with
         amendments, on May 25, 1999, by a non-record vote.
                                             _______________________________
                                                 Chief Clerk of the House
         Approved:
         _______________________________
                     Date
         _______________________________
                   Governor