Commission Agenda Item No. 4
Exhibit A

FINANCE PROCLAMATION
PROPOSAL PREAMBLE

1. Introduction.

        The Texas Parks and Wildlife Department proposes an amendment to §53.12, concerning Commercial Fishing Licenses and Tags. The proposed amendment would establish a $25 fee for the replacement of a commercial gulf shrimp unloading license.

        The 85th Legislature (2017) enacted Senate Bill (S.B.) 1260, amending the Texas Parks and Wildlife Code by adding new §77.034, which created the commercial gulf shrimp unloading license and established a fee of $1,485 (or a higher amount established by the commission) for that license.

        Parks and Wildlife Code, §77.0361, provides the commission with the authority to prescribe fees for duplicate licenses issued under the authority of Chapter 77. The rules currently prescribe a $25 fee for several commercial fishing replacement licenses. Staff have determined that it is appropriate to provide for the issuance of a duplicate commercial shrimp unloading license and prescribe a fee of $25 for that action.

2. Fiscal Note.

        Lance Robinson, Deputy Director of the Coastal Fisheries Division, has determined that there will be minimal fiscal implications to state government as a result of administering the amendment. Department records indicate that over the last five years 61 duplicate licenses issued under the authority of Parks and Wildlife Code, Chapter 77, have been issued, an average of 12 per year; thus, the department estimates that the rule will result in an increase of approximately $300 per year in revenue, assuming the five-year historical trend is indicative of future events. There will be no other fiscal implications to the department, as the issuance of duplicate licenses will be performed by existing staff as part of current job duties. There will be no fiscal implications to other units of state or local government.

3. Public Benefit/Cost Note.

        Mr. Robinson also has determined that each of the first five years the amendment as proposed is in effect:

        (A) The public benefit anticipated as a result of enforcing or administering the amendment as proposed will be the ability of licensees to obtain duplicate commercial shrimp unloading licenses for a nominal fee instead of having to purchase a new license at $1,485.

        (B) There will be an adverse economic effect on persons required to comply with the amendment as proposed, namely, the $25 fee for a replacement commercial shrimp unloading license.

        (C) 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 or amendment that may have an adverse economic effect on small businesses, micro-businesses, or rural communities. 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 or amendment’s potential adverse economic impact on small businesses. These guidelines state that “generally, there is no need to examine the indirect effects of a proposed rule or amendment on entities outside of an agency’s regulatory jurisdiction.” The guidelines state that an agency need only consider a proposed rule or amendment’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 amendment as proposed could affect small businesses, micro-businesses, or rural communities, as it establishes a $25 fee for a replacement commercial gulf shrimp unloading license. The commercial gulf shrimp unloading license authorizes persons who are not licensed to shrimp in Texas waters to unload shrimp caught in other waters at Texas ports, which has not been permitted until this time; therefore, the department has no data specifically associated with this license, historical or otherwise, upon which to base an estimate of how many small or microbusinesses will be affected. For purposes of this analysis, the department assumes all purchasers of the commercial gulf shrimp unloading licenses are a small or microbusiness. Based on the historical issuance rate of replacement licenses for other shrimping licenses, the department estimates that the proposed amendment would affect approximately 12 small or microbusinesses per year. The department also notes, however, that in the absence of a replacement fee, a license that is lost, stolen, or destroyed must be replaced at the $1,485 value established by statute. Therefore, the proposed amendment if adopted would provide a cost-effective solution to a lost, destroyed, or stolen license.

        The proposed amendment will have no effect on rural communities.

        The department considered several alternatives to achieve the goals of the proposed amendment while reducing potential adverse impacts on small and micro-businesses and persons required to comply.

        One alternative was to issue replacement commercial gulf shrimp unloading licenses at no cost. This alternative was rejected because it would be unfair to those who must pay a fee to obtain replacements for other license types, and because eliminating the fee for replacement of other license types to create parity would result in adverse fiscal impacts to the department.

        Another alternative considered was to proceed status quo, which was rejected because then the holder of a commercial gulf shrimp unloading license would be forced to purchase a new license at a cost of $1,485 in the event that a license was lost, stolen, or destroyed, which would also be unfair.

        A third alternative considered was to allow license holders whose license was lost, stolen, or destroyed to continue engaging in permitted activities and relying upon department records to verify licensure. This alternative was rejected because it would be more difficult and time consuming for the vessel as well as law enforcement personnel. They would have to try and access and search license records while on board the vessel and doing other parts of the law enforcement activities aboard the vessel in the event that the license was purported to have been lost, stolen, or destroyed, to verify that a license had in fact been purchased.

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

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

        (F) 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 amendment.

        (G) The department has determined that because the amendment as proposed does not require a person to purchase a replacement commercial gulf shrimp unloading license, but instead merely offers a method to continue conducting a regulated activity in the event that a license is lost, stolen, or destroyed, it does not impose a cost on regulated persons and it is not necessary to repeal or amend any existing rule.

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

                 (1) not 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) create a new regulation (to provide for the replacement of the commercial gulf shrimp unloading license);

                 (5) neither increase nor decrease the number of individuals subject to regulation through time;

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

                 (7) not significantly affect the state’s economy positively or adversely.

4. Request for Public Comment.