HBA-EVB S.B. 873 76(R) BILL ANALYSIS Office of House Bill AnalysisS.B. 873 By: Brown State Recreational Resources 4/12/1999 Engrossed BACKGROUND AND PURPOSE Currently, Texas is the largest producer of farm-raised shrimp in the country. In 1998, the 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 regulates aquaculture. 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 (commission) in SECTION 1 (Section 134.005, Agriculture Code) and to the commission and the Texas Parks and Wildlife Department (TPWD) in SECTION 7 (Section 66.007, Parks and Wildlife Code) of this bill. Rulemaking authority previously delegated to TPWD is modified in SECTION 1 (Section 134.005, Agriculture Code) of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Subchapter A, Chapter 134, Agriculture Code, as follows: SUBCHAPTER A. GENERAL PROVISIONS Sec. 134.001. DEFINITIONS. Specifies that "cultured species" does not include aquatic plants. Nonsubstantively redefines "exotic species," "aquaculturist," and "fish farmer." Defines "operator," "commercial aquaculture facility," "new aquaculture facility," and "coastal zone" for the purposes of this chapter only. Deletes the definition of "owner." Sec. 134.002. AQUACULTURE PROGRAM. Authorizes the Department of Agriculture (department) to promote aquaculture products, provide technical assistance and coordinated support through colleges and universities and other governmental entities, solicit financial support from the federal government for the aquaculture industry, develop and expand the aquaculture industry to stimulate the state's economy and offer alternative crop opportunities, and perform other functions and activities as required by law. Makes conforming changes. Sec. 134.003. PROGRAM ADMINISTRATOR; STAFF. Requires the department to designate a person to administer the department's program. Authorizes the department or the department's program administrator to employ the necessary staff to carry out the functions and duties of the department under this chapter. Sec. 134.004. CONTRACTS. Authorizes the department, the Texas Natural Resource Conservation Commission (TNRCC), the Texas Animal Health Commission (TAHC), and the Texas 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. Requires the department, by rule, to establish record keeping requirements for a commercial aquaculture facility. Makes conforming and nonsubstantive changes. SECTION 2. Amends Sections 134.011-134.014, Agriculture Code, as follows: Sec. 134.011. New title: LICENSING. Requires the department to maintain an application process for an aquaculture license, license aquaculture facilities, and regulate aquaculture operations. 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. Provides that if a vehicle is used to transport cultured species from a private facility, and the cultured species are sold from the vehicle, the vehicle is required to have a fish farm vehicle license. Provides that a person who operates a vehicle that is owned by the holder of an aquaculture license must keep a copy of the license in the vehicle when transporting culture species from a private facility. Deletes text regarding fish transportation. Sec. 134.013. New title: ADDITIONAL REQUIREMENTS FOR SHRIMP PRODUCTION WITHIN THE COASTAL ZONE. (a) Sets forth the following requirements for a commercial aquaculture facility located within the coastal zone and engaged in the production of shrimp: (1) Such a facility must obtain a site-specific wastewater discharge permit from the TNRCC before the facility may discharge wastewater if the facility will discharge water or another substance into waters in the state; (2) Such a facility must provide the report described by Subsection (b) and is subject to the review described in Section 134.031(c) if the aquaculture facility applies for wastewater disposal authorization after receiving exemption or registration by rule from the TNRCC; (3) Such a facility must obtain an amendment to its site-specific discharge permit from the TNRCC before the facility is authorized to increase the amount of discharge, or change the nature of the discharge above levels allowed by the wastewater discharge permit issued by the TNRCC, except as otherwise provided by Section 26.0191 (Temporary or Emergency Order Relating to Discharge of Waste or Pollutants), Water Code; and (4) Such a facility must provide the report described by Subsection (b) and is subject to the review described in Section 134.031 (c) before the facility is authorized to increase the amount of discharge, or change the nature of the discharge above levels allowed by the wastewater discharge permit issued by the TNRCC, except as otherwise provided by Section 26.0191, Water Code. (b) Requires the department, before issuing a license to a new aquaculture facility designed for the commercial production of shrimp that will discharge wastewater into waters in the state within the coastal zone, to require the applicant to provide a report describing existing environmental conditions at the site. Specifies that the report must provide an assessment of any potential impacts of wastewater discharges on sensitive aquatic habitats in the area of the proposed site, significant impacts related to the construction or operation of the facility, and mitigation actions proposed by the applicant. (c) Specifies that the applicant must provide the report required under Subsection (b) to TNRCC and the TPWD. Prohibits the TNRCC from issuing a wastewater discharge permit to a new aquaculture facility designed for the commercial production of shrimp and located within the coastal zone without consideration of the report described under Subsection (b). Deletes text requiring a bill of lading, which previously constituted the entire text of this section. 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, rather than a cultured species regulated by a bag, possession, or size limit, 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 enumerated information. SECTION 5. Amends Section 134.023(b), Agriculture Code, to make a nonsubstantive change. SECTION 6. Amends Chapter 134, Agriculture Code, by adding Subchapter C, as follows: SUBCHAPTER C. INTERAGENCY COOPERATION Sec. 134.031. MEMORANDUM OF UNDERSTANDING. (a) Requires the department, TNRCC, and TPWD to enter into a memorandum of understanding for the regulation of matters related to aquaculture. (b) 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 TPWD. (c) 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. (d) Authorizes TPWD, in consultation with TNRCC, to establish general guidelines that identify sensitive aquatic habitat within the coastal zone. Provides that the general guidelines must include factors such as the presence of sea grass beds, depth of receiving waters, and amount of tidal exchange. (e) Provides that if TPWD establishes the guidelines in Subsection (d), TPWD must provide the guidelines to TNRCC and the department. (f) Provides that TNRCC must consider the guidelines when reviewing wastewater discharge authorization applications for new aquaculture facilities located within the coastal zone, or expansion of 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. SECTION 7. Amends Section 66.007, Parks and Wildlife Code, by adding Subsections (g)-(l), as follows: (g) Authorizes 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. (h) Requires TPWD 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 TPWD, by rule, to determine the meaning of "manifestation of disease" and "quarantine condition" under this section. (i) Authorizes TPWD to coordinate with TAHC regarding testing for diseases. (j) Authorizes the operator to discharge waste or another substance from the facility in accordance with an emergency plan that has been submitted to and approved by TPWD and incorporated into a wastewater discharge authorization issued by TNRCC, if an aquaculture facility is under quarantine. (k) Authorizes the operator to discharge wastewater or another substance from an aquaculture facility under quarantine condition in accordance with an emergency plan that has been submitted to and approved by TPWD and incorporated into a wastewater discharge authorization issued by TNRCC, in the event of a natural catastrophe. (l) Requires 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 Subchapter B, Chapter 26, Water Code, by adding Section 26.0345, as follows: Sec. 26.0345. DISCHARGE FROM AQUACULTURE FACILITIES. Requires TNRCC, in consultation with the department 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. Repealer: Subchapter D (Aquaculture Executive Committee and Liaison Officer), Chapter 1 (General Provisions), Parks and Wildlife Code. Abolishes the aquaculture executive committee. Provides that these actions are effective September 1, 1999. SECTION 11. Effective date: September 1, 1999. SECTION 12. Requires the Department of Agriculture, TNRCC, and TPWD, as soon as practicable on or after the effective date of this Act, to enter into the memorandum of understanding required by Section 134.031, Agriculture Code, as added by this Act. SECTION 13. Emergency clause.