MARINE AQUACULTURE DEVELOPMENT ACT.

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View NCGA Bill Details2017-2018 Session
House Bill 524 (Public) Filed Wednesday, March 29, 2017
AN ACT TO CREATE A PROGRAM FOR THE PERMITTING OF MARINE AQUACULTURE ACTIVITIES AND TO REQUIRE THE DIVISION OF MARINE FISHERIES OF THE DEPARTMENT OF ENVIRONMENTAL QUALITY TO REQUEST THE ISSUANCE OF FEDERAL RULES TO ALLOW MARINE AQUACULTURE IN FEDERAL WATERS OFF THE COAST OF THE STATE.
Intro. by Boswell, Shepard.

Status: Ref to the Com on Environment, if favorable, Regulatory Reform (House Action) (Mar 30 2017)
H 524

Bill Summaries:

  • Summary date: Mar 29 2017 - View Summary

    Identical to S 410 filed on 3/28/17.

    Enacts Article 16A to GS Chapter 113, Marine Aquaculture, directing the Marine Fisheries Commission to designate by rule the species of fish, crustaceans, and shellfish that can by produced and sold under a Marine Aquaculture Propagation and Production Facility License pursuant to new Article 16A. In designating the species, the Board is to consider: (1) the potential domestic and export market for the species; (2) the potential for genetic contamination of or undesired interbreeding with wild stocks of species if the species is not native to State waters or is a genetically engineered variant of a native species; and (3) whether public access and use of waters of the State would be unduly impacted by the private licensing of public submerged lands and the superjacent water column necessary to support propagation or production facilities for the species when compared to the potential economic impact of those facilities. Defines marine aquaculture as the propagation and rearing of aquatic species in controlled or selected environments, including but not limited to ocean ranching, marine hatcheries, and other deep water fish farming operations in the coastal and ocean waters of the State, and to the extent not inconsistent with federal law, to the limits of the US exclusive economic zone, as the term is defined in 16 USC 1801, et seq. (the Magnuson-Stevens Fishery Conservation and Management Act). Defines marine aquatic species to mean any species of finfish, mollusk, crustacean, or other aquatic invertebrate, amphibian, reptile, or aquatic plant, and including but not limited to fish and fishes as defined in GS 113-129(7) found exclusively or for part of its life cycle in coastal fishing waters.

    Authorizes the Marine Fisheries Commission (Commission) to, by rule, authorize and license the operation of fish hatcheries and production facilities for species of fish designated as specified above. Directs the Commission to (1) consult with the National Marine Fisheries Service regarding appropriate measures to protect wild stocks from disease and genetic contamination, and (2) enter into memoranda of agreement with the US Army Corps of Engineers and any other appropriate State and federal regulatory agencies regarding appropriate standards and markings for marine aquaculture structures to avoid impairment of navigation. States that marine aquaculture facilities that require the use of public bottom lands underlying waters of the State or the superajacent water column also require a lease pursuant to Article 16B of GS Chapter 113, as enacted below. Defines marine aquaculture facility to mean any land, structure, or other appurtenance that is used for aquaculture, including but not limited to any laboratory, hatchery, rearing pond, raceway, pen, incubator, or other equipment used in aquaculture. 

    Allows the Commission to prescribe standards of operation, qualifications of operators, and the conditions under which fish can by commercially reared, transported, possessed, bought, and sold. Establishes that Marine Aquaculture Propagation and Production Facility Licenses issued by the Department of Environmental Quality are valid for five years.

    Makes it a Class A1 misdemeanor punishable by a fine not to exceed $5,000 for any person, other than the holder of a Marine Aquaculture Propagation and Production Facility License and associated lease under Article 16B of GS Chapter 113, to take or attempt to take marine species being produced under the license and associated lease from any privately leased, franchised, or deeded marine aquaculture operation without written authorization of the holder and with actual knowledge it is a marine aquaculture leased area. Establishes that actual knowledge is presumed when the marine species are taken or attempted to be taken either (1) from within the confines of posted boundaries of the areas as identified by sign, whether the whole or any part of the area is posted, or (2) when the area has been regularly posted and identified and the person knew the area to be the subject of private marine aquaculture rights. Provides that a written authorization must include the lease number or deed reference, the name and address of the authorized person, the date of issuance, the date of expiration, and it must be signed by the holder of the marine aquaculture rights. Requires the identification signs to include the lease number or deed reference and the name of the lease or deed holder. 

    Provides that the definitions set forth in GS 113-128 and GS 113-129 also apply to new Article 16A.

    Enacts new Article 16B, Leasing of Bottom Land and Waters of the State for Marine Aquaculture, in GS Chapter 113. States General Assembly findings and declares that it is the policy of the state to encourage the development of private, commercial marine aquaculture in ways that are compatible with other public uses of marine and estuarine resources.

    New GS 113-216 allows the Secretary of Environmental Quality (Secretary) to grant marine aquaculture leases for the public bottom to state residents who have obtained a Marine Aquaculture Propagation and Production Facility License when the Secretary determines that the public interest will benefit from issuance of the lease. Sets out five minimum standards that must be met for an area to be suitable for marine aquaculture, including that the leased area not contain a natural shellfish bed and that the operation of a marine aquaculture operation in the leased area will not impinge upon the rights of riparian owners. Allows the Secretary to delete any part of an area proposed for a lease or condition a lease to protect the public interest; also prohibits the Secretary from granting a new lease in an area heavily used for recreational purposes. Sets out requirements to be met when applying for a lease, including that the application include a map or diagram, that must meet specified conditions, of the area proposed to be leased. Applicants must also pay a $200 filing fee. Sets out requirements to be met by the area of bottom applied for. Requires the Secretary to conduct a public hearing when the Secretary intends to approve an application; sets out notification requirements. After consideration of the public comment received and any additional investigations the Secretary orders to evaluate the comments, the Secretary is required to notify the applicant in person or by certified or registered mail of the decision on the lease application; the Secretary must also notify persons who submitted comments at the public hearing and requested notice of the decision. Allows an applicant who is dissatisfied with the Secretary's decision or another person aggrieved by the decision to commence a contested case by filing a petition under GS 150B‑23 within 20 days after receiving notice of the Secretary's decision. Specifies that initial leases begin upon the issuance of the lease by the Secretary and expire at noon on the first day of July following the 10th anniversary of the granting of the lease and renewal leases are issued for 10 years from the time of expiration of the previous lease. Applicants for a renewal of a lease must pay a $100 filing fee. Sets the price of the rental for initial leases at $10 per acre, per year. Rental must be paid annually in advance prior to the first day of April each year. Provides that leaseholds granted under new Article 16B are to be treated as if they were real property and are subject to all laws relating to taxation, sale, devise, inheritance, gift, seizure and sale under execution or other legal process, and the like. Leases properly acknowledged and probated are eligible for recordation in the same manner as instruments conveying an estate in real property. Provides the procedure for when ownership is transferred, with the lease terminated when it is transferred to a nonresident. Specifies seven occurrences upon which the Secretary must commence action to terminate the leasehold. Allows the Secretary to discontinue termination procedures when the leaseholder takes steps within 30 days to remedy the situation. Allows the leaseholder to initiate a contested case when the termination is not discontinued. Sets out additional requirements to be met when terminating a lease. Requires the Secretary to mail to all leaseholders a notice of the annual rental due and include forms for determining the amount of harvest gathered and gathering other pertinent information related to the utilization of the leasehold in the best interests of the aquaculture industry of the state. The form must be completed and returned by the leaseholder with the payment of the leaseholder's rental; it is a Class 1 misdemeanor for any leaseholder or the leaseholder's agent executing such forms to knowingly make a false statement.

    New GS 113-217 allows the Secretary to include in marine aquaculture leases issued under GS 113‑216 provisions to allow the use of the water column superjacent to the leased bottom when the Secretary determines the public interest will benefit from inclusion of water column provisions. Sets out six standards that must be met by areas where water column use is allowed, including that aquaculture use of the leased area does not significantly impair navigation, and that the leased area is not within an area traditionally used and available for fishing or hunting activities incompatible with the activities proposed by the leaseholder. 

    Effective October 1, 2017.

    Requires the Division of Marine Fisheries of the Department of Environmental Quality to: (1) request that the Mid‑Atlantic and South Atlantic Fishery Management Councils develop a Fishery Management Plan for regulating offshore aquaculture in federal waters offshore from the North Carolina coast and (2) petition the National Oceanic and Atmospheric Administration to initiate rule‑making proceedings to implement a comprehensive regulatory program for managing the development of an environmentally sound and economically sustainable aquaculture fishery in federal waters offshore from the North Carolina coast. Requires an interim report to the Joint Legislative Oversight Committee on Agriculture and Natural and Economic Resources no later than February 1, 2018, and a final report on or before May 1, 2018, that includes the request and petition.