1-1     By:  Brown                                             S.B. No. 873
 1-2           (In the Senate - Filed March 4, 1999; March 8, 1999, read
 1-3     first time and referred to Committee on Natural Resources;
 1-4     March 22, 1999, reported adversely, with favorable Committee
 1-5     Substitute by the following vote:  Yeas 5, Nays 0; March 22, 1999,
 1-6     sent to printer.)
 1-7     COMMITTEE SUBSTITUTE FOR S.B. No. 873                    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 only:
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 in the [of this]
1-21     state.
1-22                 (3)  "Aquaculturist" or "fish farmer" means any person
1-23     engaged [licensed under this chapter to engage] in aquaculture or
1-24     fish farming.
1-25                 (4)  "Aquaculture" or "fish farming" means the business
1-26     of producing and selling cultured species raised in private
1-27     facilities. Aquaculture or fish farming is an agricultural
1-28     activity.
1-29                 (5)  "Private facility" means a pond, tank, cage, or
1-30     other structure capable of holding cultured species in confinement
1-31     wholly within or on private land or water or within or on permitted
1-32     public land or water.
1-33                 (6)  "Operator" means any person or entity in control
1-34     of or having responsibility for the daily operation of an
1-35     aquaculture facility ["Owner" means an aquaculturist operating a
1-36     facility licensed by the department].
1-37                 (7)  "Commercial aquaculture facility" means an
1-38     aquaculture facility designed primarily for the production of
1-39     cultured species for the purposes of sale, barter, or exchange.
1-40                 (8)  "New aquaculture facility" means a commercial
1-41     aquaculture facility whose owner or operator initially sought waste
1-42     discharge authorization from the Texas Natural Resource
1-43     Conservation Commission after January 19, 1999.
1-44                 (9)  "Coastal zone" has the meaning assigned by Section
1-45     33.004, Natural Resources Code.
1-46           Sec. 134.002.  Aquaculture Program.  The department may
1-47     [shall establish an aquaculture program that]:
1-48                 (1)  promote [develops and conducts a plan for
1-49     promoting] aquaculture products;
1-50                 (2)  provide [licenses and regulates aquaculture
1-51     operations;]
1-52                 [(3)  provides] technical assistance, including
1-53     demonstrations, to aquaculturists;
1-54                 (3)  provide [(4)  provides] coordinated support
1-55     through colleges and universities and other governmental entities;
1-56                 (4)  solicit [(5)  solicits] financial support from the
1-57     federal government for the aquaculture industry;
1-58                 (5)  develop [(6)  develops] and expand [expands] the
1-59     aquaculture industry to:
1-60                       (A)  stimulate the state's economy; and
1-61                       (B)  offer alternative crop opportunities; and
1-62                 (6)  perform [(7)  performs] other functions and
1-63     activities as required by law.
1-64           Sec. 134.003.  Program Administrator; Staff.  (a)  The
 2-1     department shall designate a person to administer the department's
 2-2     aquaculture program.
 2-3           (b)  The department or the department's program administrator
 2-4     may employ the necessary staff to carry out the functions and
 2-5     duties of the department under this chapter.
 2-6           Sec. 134.004.  Contracts.  The department, the Texas Natural
 2-7     Resource Conservation Commission, the Texas Animal Health
 2-8     Commission, and the Parks and Wildlife Department may contract with
 2-9     state, federal, or private entities for assistance in carrying out
2-10     the purposes of this chapter.
2-11           Sec. 134.005.  Rules.  (a)  The department and the Parks and
2-12     Wildlife Commission shall adopt rules to carry out their respective
2-13     duties under this chapter [the aquaculture program].
2-14           (b)  The department by rule shall establish record-keeping
2-15     requirements for a commercial aquaculture facility.
2-16           (c)  The rules may not conflict with rules issued under
2-17     Section 134.020 [of this code].
2-18           Sec. 134.006.  Aquaculture Fund.  (a)  The aquaculture fund
2-19     is established in the state treasury.
2-20           (b)  The department shall deposit to the credit of the fund
2-21     the fees received from licenses issued under this chapter.
2-22           (c)  The aquaculture fund may be used only to administer this
2-23     chapter.
2-24           SECTION 2.  Sections 134.011, 134.012, 134.013, and 134.014,
2-25     Agriculture Code, are amended to read as follows:
2-26           Sec. 134.011.  LICENSING [AQUACULTURE LICENSE REQUIRED].
2-27     (a)  A person may not operate an aquaculture facility without first
2-28     having acquired from the department an aquaculture license.
2-29           (b)  The department shall:
2-30                 (1)  maintain an application process for an aquaculture
2-31     license;
2-32                 (2)  license aquaculture facilities; and
2-33                 (3)  regulate aquaculture operations.
2-34           (c)  The department shall provide a copy of each aquaculture
2-35     license application to the Parks and Wildlife Department and the
2-36     Texas Natural Resource Conservation Commission.
2-37           (d)  The department may not issue a license for a new
2-38     aquaculture facility unless the facility has been authorized by the
2-39     Texas Natural Resource Conservation Commission to dispose of
2-40     wastewater or the facility will not dispose of wastewater into
2-41     waters in the state.
2-42           Sec. 134.012.  Fish Farm Vehicle License Required.
2-43     (a)  Except as provided by Subsection (b) [of this section], if a
2-44     vehicle is used to transport cultured species from a private
2-45     facility and the cultured species are sold from the vehicle, the
2-46     vehicle [a vehicle used to transport fish from a fish farm for sale
2-47     from the vehicle] is required to have a fish farm vehicle license.
2-48           (b)  A fish farm vehicle license is not required for a
2-49     vehicle owned and operated by the holder of an aquaculture license.
2-50           (c)  A person who operates a vehicle that is owned by the
2-51     holder of an aquaculture license must keep a copy of the license in
2-52     the vehicle when transporting cultured species from a private
2-53     facility.
2-54           Sec. 134.013.  ADDITIONAL REQUIREMENTS FOR SHRIMP PRODUCTION
2-55     WITHIN THE COASTAL ZONE.  (a)  A commercial aquaculture facility
2-56     located within the coastal zone and engaged in the production of
2-57     shrimp:
2-58                 (1)  must obtain a site-specific wastewater discharge
2-59     permit from the Texas Natural Resource Conservation Commission
2-60     before the facility may discharge wastewater if the facility will
2-61     discharge wastewater or another substance into waters in the state;
2-62                 (2)  must provide the report described by Subsection
2-63     (b) and is subject to the review described in Section 134.031(c) if
2-64     the aquaculture facility applies for wastewater disposal
2-65     authorization after receiving exemption or registration by rule
2-66     from the Texas Natural Resource Conservation Commission;
2-67                 (3)  must obtain an amendment to its site-specific
2-68     discharge permit from the Texas Natural Resource Conservation
2-69     Commission before the facility may increase the amount of discharge
 3-1     or change the nature of the discharge above levels allowed by the
 3-2     wastewater discharge permit issued by the Texas Natural Resource
 3-3     Conservation Commission, except as otherwise provided by Section
 3-4     26.0191, Water Code; and
 3-5                 (4)  must provide the report described by Subsection
 3-6     (b) and is subject to the review described in Section 134.031(c)
 3-7     before the facility may increase the amount of discharge, or change
 3-8     the nature of the discharge above levels allowed by the wastewater
 3-9     discharge permit issued by the Texas Natural Resource Conservation
3-10     Commission, except as otherwise provided by Section 26.0191, Water
3-11     Code.
3-12           (b)  Before issuing a license to a new aquaculture facility
3-13     designed for the commercial production of shrimp that will
3-14     discharge wastewater into waters in the state within the coastal
3-15     zone, the department shall require the applicant to provide a
3-16     report describing the existing environmental conditions at the
3-17     proposed site, including aquatic habitat and the conditions of the
3-18     waters in the state into which a discharge is proposed.  The report
3-19     must provide an assessment of any potential impacts of wastewater
3-20     discharges on sensitive aquatic habitats in the area of the
3-21     proposed site, significant impacts related to the construction or
3-22     operation of the facility, and any mitigation actions proposed by
3-23     the applicant.
3-24           (c)  The applicant must provide the report required under
3-25     Subsection (b) to the Texas Natural Resource Conservation
3-26     Commission and the Parks and Wildlife Department.  The Texas
3-27     Natural Resource Conservation Commission may not issue a wastewater
3-28     discharge permit to a new aquaculture facility designed for the
3-29     commercial production of shrimp and located within the coastal zone
3-30     without consideration of the report described by Subsection (b).
3-31     [BILL OF LADING REQUIRED.  A person operating a vehicle
3-32     transporting fish regulated by a bag, possession, or size limit and
3-33     prohibited from sale if taken from the public waters of this state
3-34     shall carry a bill of lading that shows the number and species
3-35     carried, the name of the owner and the location and license number
3-36     of the aquaculture facility from which the species were
3-37     transported, and the destination of the cargo.]
3-38           Sec. 134.014.  License Fees.  The department shall issue an
3-39     aquaculture license or a fish farm vehicle license on completion of
3-40     applicable license requirements and the payment of a fee by the
3-41     applicant, as provided by department rule.
3-42           SECTION 3.  Subsection (c), Section 134.015, Agriculture
3-43     Code, is amended to read as follows:
3-44           (c)  The department may suspend an aquaculture license if it
3-45     is determined that the licensee has violated this chapter, [or] a
3-46     rule adopted under this chapter, or Section 66.007, Parks and
3-47     Wildlife Code.
3-48           SECTION 4.  Section 134.016, Agriculture Code, is amended to
3-49     read as follows:
3-50           Sec. 134.016.  RECORDS.  (a)  The holder of an aquaculture
3-51     license shall maintain a record of sales of cultured species[,
3-52     regulated by a bag, possesion, or size limit] for a period of time
3-53     of not less than one year.  The record is open for inspection by
3-54     designated employees of the Parks and Wildlife Department and the
3-55     department during normal business hours.
3-56           (b)  A record of sale for commercially protected finfish as
3-57     provided by Section 66.020, Parks and Wildlife Code, shall contain
3-58     at least the following information:
3-59                 (1)  invoice number;
3-60                 (2)  date of shipment;
3-61                 (3)  name and address of shipper;
3-62                 (4)  name and address of receiver; and
3-63                 (5)  number and weight of whole fish or fillets, by
3-64     species, contained in the shipment.
3-65           SECTION 5.  Subsection (b), Section 134.023, Agriculture
3-66     Code, is amended to read as follows:
3-67           (b)  A person who violates Section 134.019 or 134.020 [of
3-68     this code] commits an offense that is a Class B misdemeanor.
3-69           SECTION 6.  Chapter 134, Agriculture Code, is amended by
 4-1     adding Subchapter C to read as follows:
 4-2                   SUBCHAPTER C.  INTERAGENCY COOPERATION
 4-3           Sec. 134.031.  MEMORANDUM OF UNDERSTANDING.  (a)  The
 4-4     department, the Texas Natural Resource Conservation Commission, and
 4-5     the Parks and Wildlife Department shall enter into a memorandum of
 4-6     understanding for the regulation of matters related to aquaculture.
 4-7           (b)  The Texas Natural Resource Conservation Commission,
 4-8     after receiving an application for a wastewater discharge
 4-9     authorization from an aquaculture facility, shall provide a copy of
4-10     the application to the department and the Parks and Wildlife
4-11     Department.
4-12           (c)  The department, the Texas Natural Resource Conservation
4-13     Commission, and the Parks and Wildlife Department shall each
4-14     appoint one member of a three-member application review committee
4-15     to review the wastewater discharge authorization application to
4-16     ensure that the proposed discharge will not adversely affect a bay,
4-17     an estuary, or other waters in the state.
4-18           (d)  The Parks and Wildlife Department, in consultation with
4-19     the Texas Natural Resource Conservation Commission, may establish
4-20     general guidelines that identify sensitive aquatic habitat within
4-21     the coastal zone.  The general guidelines must include factors such
4-22     as the presence of sea grass beds, depth of receiving waters, and
4-23     amount of tidal exchange.
4-24           (e)  If the Parks and Wildlife Department establishes the
4-25     guidelines described in Subsection (d), the Parks and Wildlife
4-26     Department must provide the guidelines to the Texas Natural
4-27     Resource Conservation Commission and the department.
4-28           (f)  If the Parks and Wildlife Department has established the
4-29     guidelines described in Subsection (d), the Texas Natural Resource
4-30     Conservation Commission must consider the guidelines when reviewing
4-31     wastewater discharge authorization applications for new aquaculture
4-32     facilities located within the coastal zone, or expansion of
4-33     existing facilities located within the coastal zone if the
4-34     expansion will increase the amount of discharge, or change the
4-35     nature of the discharge, above levels allowed by the wastewater
4-36     discharge permit.
4-37           SECTION 7.  Section 66.007, Parks and Wildlife Code, is
4-38     amended by adding Subsections (g), (h), (i), (j), (k), and (l) to
4-39     read as follows:
4-40           (g)  The commission may adopt rules to control a disease or
4-41     agent of disease transmission that:
4-42                 (1)  may affect penaeid shrimp species; and
4-43                 (2)  has the potential to affect cultured species or
4-44     other aquatic species.
4-45           (h)  If one or more manifestations of disease is observed in
4-46     any cultured marine penaeid shrimp species, the department shall
4-47     immediately place the aquaculture facility under quarantine
4-48     condition.  The department shall determine, by rule, the meaning of
4-49     "manifestation of disease" and "quarantine condition" under this
4-50     section.
4-51           (i)  The department may coordinate with the Texas Animal
4-52     Health Commission regarding testing for diseases.
4-53           (j)  If an aquaculture facility is under quarantine
4-54     condition, the operator may discharge waste or another substance
4-55     from the facility in accordance with an emergency plan that has
4-56     been submitted to and approved by the department and incorporated
4-57     into a wastewater discharge authorization issued by the Texas
4-58     Natural Resource Conservation Commission.
4-59           (k)  In the event of a natural catastrophe, the operator may
4-60     discharge wastewater or another substance from an aquaculture
4-61     facility under quarantine condition in accordance with an emergency
4-62     plan that has been submitted to and approved by the department and
4-63     incorporated into a wastewater discharge authorization issued by
4-64     the Texas Natural Resource Conservation Commission.
4-65           (l)  On receiving notice from an owner of the observance of
4-66     manifestations of disease, the department shall immediately:
4-67                 (1)  notify the Department of Agriculture, the Texas
4-68     Natural Resource Conservation Commission, and the Texas Animal
4-69     Health Commission; and
 5-1                 (2)  advise the Department of Agriculture, the Texas
 5-2     Natural Resource Conservation Commission, and the Texas Animal
 5-3     Health Commission regarding the appropriate action to be taken.
 5-4           SECTION 8.  Subsection (f), Section 66.020, Parks and
 5-5     Wildlife Code, is amended to read as follows:
 5-6           (f)  The commission by proclamation may require fish imported
 5-7     under this section to be tagged, packaged, and labeled and to be
 5-8     accompanied by an invoice.  The department [commission] may provide
 5-9     a prenumbered invoice to a person importing any of the fish
5-10     described by Subsection (a) of this section into this state from
5-11     another state or foreign country and may charge a fee for the
5-12     invoice in an amount determined by the commission that is
5-13     reasonable to defray the administrative costs incurred under this
5-14     subsection.  The invoice shall be used to report shipments of any
5-15     of the fish described by Subsection (a) of this section.  A person
5-16     who receives invoices under this subsection must account to the
5-17     department for all invoices received as required by rules adopted
5-18     by the commission.  A person commits an offense if the person fails
5-19     or refuses to account for an invoice as required by commission
5-20     rules.
5-21           SECTION 9.  Subchapter B, Chapter 26, Water Code, is amended
5-22     by adding Section 26.0345 to read as follows:
5-23           Sec. 26.0345.  DISCHARGE FROM AQUACULTURE FACILITIES.
5-24     (a)  In addition to wastewater permit conditions established under
5-25     the authority of Sections 5.102, 5.103, 5.120, and 26.040, the
5-26     Texas Natural Resource Conservation Commission, in consultation
5-27     with the Department of Agriculture and the Parks and Wildlife
5-28     Department, shall establish permit conditions relating to suspended
5-29     solids in a discharge permit for an aquaculture facility located
5-30     within the coastal zone and engaged in shrimp production that are
5-31     based on levels and measures adequate to prevent:
5-32                 (1)  potential significant adverse responses in aquatic
5-33     organisms, changes in flow patterns of receiving waters, or
5-34     untimely filling of bays with settled solids; or
5-35                 (2)  a potential significant adverse response in
5-36     aquatic plants from attenuation of light by suspended solids in
5-37     discharges.
5-38           (b)  In this section, "coastal zone" has the meaning assigned
5-39     by Section 33.004, Natural Resources Code.
5-40           SECTION 10.  Effective September 1, 1999, Subchapter D,
5-41     Chapter 1, Parks and Wildlife Code, is repealed and the aquaculture
5-42     executive committee is abolished.
5-43           SECTION 11.  This Act takes effect September 1, 1999.
5-44           SECTION 12.  The Department of Agriculture, the Texas Natural
5-45     Resource Conservation Commission, and the Parks and Wildlife
5-46     Department shall, as soon as practicable on or after the effective
5-47     date of this Act, enter into the memorandum of understanding
5-48     required by Section 134.031, Agriculture Code, as added by this
5-49     Act.
5-50           SECTION 13.  The importance of this legislation and the
5-51     crowded condition of the calendars in both houses create an
5-52     emergency and an imperative public necessity that the
5-53     constitutional rule requiring bills to be read on three several
5-54     days in each house be suspended, and this rule is hereby suspended.
5-55                                  * * * * *