Commission Agenda Item No. 8
Exhibit A

HOUSE BILL 1260 - SHRIMP UNLOADING LICENSE RULES
PROPOSED PREAMBLE

1. Introduction

        The Texas Parks and Wildlife Department proposes an amendment to §58.161, concerning Shrimping in Outside Waters. The proposed amendment provides that a person  who is required to obtain a shrimp unloading license in order to unload (or allow to be unloaded) shrimp or other aquatic products at a port or point in Texas must stow all shrimp trawls and doors while in Texas waters. The amendment is necessary to comply with the provisions of House Bill 1260, which was enacted by the 85th Texas Legislature.

        House Bill 1260 amended the Parks and Wildlife Code by adding new §77.034, which provides that except for holders of a Texas gulf shrimp boat license, no person may unload or allow to be unloaded at a port or point in this state shrimp or other aquatic products caught or taken from the outside water or from salt water outside the state without having been previously unloaded in some other state or foreign country, unless the person has obtained a commercial gulf shrimp unloading license and a federal commercial vessel permit for gulf shrimp from the National Oceanic and Atmospheric Administration. The bill also requires the commission to adopt rules for the requirements of trawl gear storage for vessels required to obtain a shrimp unloading license.

        To facilitate enforcement of commercial shrimp licensing rules and to protect marine resources from unlawful exploitation, the proposed amendment would require any shrimp boat required to obtain a shrimp unloading license to stow all trawls and doors within the confines of the hull while in Texas waters.

2. Fiscal Note.

        Brandi Reeder, Fisheries Law Administrator, has determined that for each of the first five years that the rule as proposed is in effect, there will be no fiscal implications to state and local governments as a result of enforcing or administering the rule as proposed, as department personnel currently allocated to the administration and enforcement of shrimping regulations will administer and enforce the rule as part of their current job duties and resources.

3. Public Benefit/Cost Note.

        Ms. Reeder also has determined that for each of the first five years the new rule as proposed is in effect:

        (A) The public benefit anticipated as a result of enforcing or administering the rule as proposed will be the management, protection, and enhancement of the shrimp resources of the state, thus ensuring the public of continued recreational and commercial access to shrimp and the continued beneficial economic impacts of the shrimp fishery to Texas.

        There will be no adverse economic effect on persons required to comply with the rule as proposed.

        (B) Under the provisions of Government Code, Chapter 2006, a state agency must prepare an economic impact statement and a regulatory flexibility analysis for a rule that may have an adverse economic effect on small businesses and micro-businesses. As required by Government Code, §2006.002(g), in April 2008, the Office of the Attorney General issued guidelines to assist state agencies in determining a proposed rule’s potential adverse economic impact on small businesses. These guidelines state that “[g]enerally, there is no need to examine the indirect effects of a proposed rule on entities outside of an agency’s regulatory jurisdiction.” The guidelines state that an agency need only consider a proposed rule’s “direct adverse economic impacts” to small businesses and micro-businesses to determine if any further analysis is required. The guidelines also list examples of the types of costs that may result in a “direct economic impact.” Such costs may include costs associated with additional recordkeeping or reporting requirements; new taxes or fees; lost sales or profits; changes in market competition; or the need to purchase or modify equipment or services.

        The department has determined that the rule as proposed will not affect small businesses, micro-businesses, or rural communities, since the rule requires certain vessels to house shrimping gear while transiting Texas state waters, where such vessels are not permitted to harvest shrimp. Therefore, the department has not prepared the economic impact statement or regulatory flexibility analysis described in Government Code, Chapter 2006.

        (C) The department has not drafted a local employment impact statement under the Administrative Procedures Act, §2001.022, as the agency has determined that the rule as proposed will not impact local economies.

        (D) The department has determined that Government Code, §2001.0225 (Regulatory Analysis of Major Environmental Rules), does not apply to the proposed rule.

        (E) The department has determined that there will not be a taking of private real property, as defined by Government Code, Chapter 2007, as a result of the proposed rule.

        (F) The department has determined that because the rule as proposed does not impose a cost on regulated persons, it is not necessary to repeal or amend any existing rule.

        (G) In compliance with the requirements of Government Code, §2001.0221, the department has prepared the following Government Growth Impact Statement (GGIS).  The rule as proposed, if adopted, will:

                 (1) neither create nor eliminate a government program;

                 (2) not result in an increase or decrease in the number of full-time equivalent employee needs;

                 (3) not result in a need for additional General Revenue funding;

                 (4) not affect the amount of any fee;

                 (5) create a new regulation;

                 (6) not expand, limit, or repeal an existing regulation;

                 (7) neither increase nor decrease the number of individuals subject to regulation; and

                 (8) have an insignificant positive impact on the state’s economy.

4. Request for Public Comment.