SB 2263 — Approval of oyster leases by the Mississippi Department of Marine Resources; clarify authority.

Ports and Marine Resources COMMITTEE SUBSTITUTE FOR SENATE BILL NO.

2263 (As Sent to Governor) AN ACT TO AMEND SECTION 49-15-27, MISSISSIPPI CODE OF 1972, TO CLARIFY THE AUTHORITY OF THE MISSISSIPPI DEPARTMENT OF MARINE RESOURCES RELATING TO THE APPROVAL OF OYSTER LEASES;

2263 *SS26/R953CS**SS08/R953SG* ~ OFFICIAL ~ G1/2 25/SS26/R953CS25/SS08/R953SG PAGE 1 (3) No individual, corporation, partnership or association may lease less than one (1) acre nor more than two thousand five hundred (2,500) acres total;

2263 *SS26/R953CS**SS08/R953SG* ~ OFFICIAL ~ 25/SS26/R953CS25/SS08/R953SG PAGE 2 applications based on the following criteria, each of which shall be weighted equally:

*(c) *The department * ( * * *c)may, Thein departmentits hasdiscretion, thelease authorityan area to reconfigurean theapplicant leasewho areashas fromno thatexperience requested by the applicant in theoyster mannercultivation thatas promoteslong maximumas utilizationthe ofapplicant thecan state'sdemonstrate their S.

2263 *SS26/R953CS**SS08/R953SG* ~ OFFICIAL ~ 25/SS26/R953CS25/SS08/R953SG PAGE 3 resources.financial stability and the area applied for has not been requested by another applicant with demonstrated experience.

(d) The department has the authority to reconfigure the lease areas from that requested by the applicant in the manner that promotes maximum utilization of the state's resources.

((e) * * *d) The department shall require that the bottoms of water areas to be leased be as definable as possible, taking into consideration such factors as the shape of the body of water, permitted areas, and the condition of the bottom as to hardness or softness which would render it desirable or undesirable for the purpose of oyster cultivation.

((f) * * *e) A lease applicant may withdraw a lease application and receive a full refund from the department of all application fees, by submitting a written request for withdrawal to the department within ninety (90) days after the department received the application.

(6) Such leases shall be for an initial term of fifteen (15) years, with the lessee having the right of first renewal of the lease for an additional fifteen (15) years, and continue to renew at fifteen-year intervals, at the same ground rental rate so long as lessee actively cultivates and gathers oysters, and complies withS. the provisions of this chapter.

No lease may be transferred without approval by the department of the transfer.

(7) The terms of every lease issued hereunder shall ensure the maximum cultivation and propagation of oysters.

Throughout the term of every lease issued hereunder, each lessee shall add S.

2263 *SS26/R953CS**SS08/R953SG* ~ OFFICIAL ~ 25/SS26/R953CS25/SS08/R953SG PAGE 4 cultchwith and make other necessary efforts to ensure the maximumprovisions cultivation and propagation of oysters.this chapter.

No lease may be transferred without approval by the department of the transfer.

(7) The terms of every lease issued hereunder shall ensure the maximum cultivation and propagation of oysters.

Throughout the term of every lease issued hereunder, each lessee shall add cultch and make other necessary efforts to ensure the maximum cultivation and propagation of oysters.

The failure of the lessee to pay the rent punctually on or before the first of each March, ipso facto and without demand or putting in default, terminates and cancels the lease and forfeits to the department all the works, improvements, betterments,S. and oysters on the leased water bottom.

The department may at once enter on the water bottom and take possession thereof.

Such water bottom shall then be open for lease in accordance with subsections (5) through (8) of this section.

Ten (10) days thereafter the department shall enter the S.

2263 *SS26/R953CS**SS08/R953SG* ~ OFFICIAL ~ 25/SS26/R953CS25/SS08/R953SG PAGE 5 termination,betterments, cancellation, and forfeitureoysters on its books and give public notice thereof by publication in one (1) local paper in the county where the formerly leased water bottomsbottom. are located.

The department may at once enter on the water bottom and take possession thereof.

Such water bottom shall then be open for lease in accordance with subsections (5) through (8) of this section.

Ten (10) days thereafter the department shall enter the termination, cancellation, and forfeiture on its books and give public notice thereof by publication in one (1) local paper in the county where the formerly leased water bottoms are located.

(11) All funds derived from leasing shall be paid into the Seafood Fund under Section 49-15-17, for use by the department to further oyster production in this state, which includes plantings of oysters and cultch materials.

2263 *SS26/R953CS**SS08/R953SG* ~ OFFICIAL ~ 25/SS26/R953CS25/SS08/R953SG PAGE 6 (12)(11) All leasesfunds madederived byfrom theleasing department under the authority of this section shall be subjectpaid tointo the paramountSeafood rightFund ofunder theSection state49-15-17, andfor anyuse of its political subdivisions authorized by law,the department to promotefurther andoyster developproduction ports, harbors, channels, industrial or recreational projects, and all such leases shall contain a provision that in thethis eventstate, suchwhich authorizedincludes publicplantings bodyof shalloysters requireand thecultch areamaterials. so leased or any part thereof for such public purposes, that the lease shall be terminated on reasonable notice fixed by the department in such lease.

(12) All leases made by the department under the authority of this section shall be subject to the paramount right of the state and any of its political subdivisions authorized by law, to promote and develop ports, harbors, channels, industrial or recreational projects, and all such leases shall contain a provision that in the event such authorized public body shall require the area so leased or any part thereof for such public purposes, that the lease shall be terminated on reasonable notice fixed by the department in such lease.

and a fine not to exceedS. Five Thousand Dollars ($5,000.00) or not to exceed two (2) years in prison, or both such fine and imprisonment.

The department is enjoined to cooperate with the Jackson County Port Authority, the Harrison County Development Commission, S.

2263 *SS26/R953CS**SS08/R953SG* ~ OFFICIAL ~ 25/SS26/R953CS25/SS08/R953SG PAGE 7 theexceed municipalFive portThousand commissionDollars and($5,000.00) otheror portnot andto harborexceed agencies,two so(2) thatyears oysterin bedsprison, shallor notboth besuch plantedfine inand closeimprisonment. proximity to navigable channels.

The department is enjoined to cooperate with the Jackson County Port Authority, the Harrison County Development Commission, the municipal port commission and other port and harbor agencies, so that oyster beds shall not be planted in close proximity to navigable channels.

(14) In order to protect the health and safety of the residents of the State of Mississippi, the terms and conditions relating to the leasing of bottoms provided in this section shall be fully applicable to any lease executed by the Mississippi Department of Marine Resources prior to April 17, 2023, and the department shall revise any lease issued prior to April 17, 2023, asS. necessary in order to comply with the provisions of this section.

SECTION 2.

Section 49-15-36, Mississippi Code of 1972, is amended as follows:

S.

2263 *SS26/R953CS**SS08/R953SG* ~ OFFICIAL ~ 25/SS26/R953CS25/SS08/R953SG PAGE 8 49-15-36.as necessary in order to comply with the provisions of this section.

SECTION 2.

Section 49-15-36, Mississippi Code of 1972, is amended as follows:

49-15-36.