GENERAL ASSEMBLY OF NORTH CAROLINA
1993 SESSION

CHAPTER 515
HOUSE BILL 297

AN ACT TO REQUIRE AN ENDORSEMENT TO SELL FISH TAKEN FROM COASTAL FISHING WATERS, TO CONSOLIDATE THE VESSEL FISHING LICENSE, AND TO AMEND OTHER MARINE FISHERIES STATUTES.

The General Assembly of North Carolina enacts:

Section 1.  G.S. 113-152 reads as rewritten:
"§ 113-152.  Consolidated license for vessels, equipment and operations; fees.
(a)	Consolidated Vessel License. – In order to promote efficiency and cost-effectiveness, the Marine Fisheries Commission may adopt rules to authorize the Division to issue a consolidated vessel license.  The fee for each individual license or endorsement issued through the consolidated license shall be paid when the application for the consolidated license is submitted.
(a1)	Vessel License Requirements. – The following vessels are subject to the vessel licensing requirements of this section:
(1)	All vessels engaged in commercial fishing operations in coastal fishing waters;
(2)	All North Carolina vessels engaged in commercial fishing operations without the State which result in landing fish in North Carolina.  North Carolina vessels are those which have their primary situs in North Carolina.  Motorboats with North Carolina numbers under the provisions of Chapter 75A of the General Statutes are deemed to have their primary situs in North Carolina: documented vessels which list a North Carolina port as home port are deemed to have their primary situs in North Carolina; and
(3)	All nonresident vessels engaged in commercial fishing operations within the State.
'Commercial fishing operations' are all operations preparatory to, during, and subsequent to the taking of fish:
(1)	With the use of commercial fishing equipment; or
(2)	By any means, if a primary purpose of the taking is to sell the fish.
Commercial fishing operations also include taking people fishing for hire.
It is unlawful for the owner of a vessel subject to licensing requirements to permit it to engage in commercial fishing operations without having first procured the appropriate licenses including vessel, gear, or other license required by the Commission.  It is unlawful for anyone to command such a vessel engaged in commercial fishing operations without complying with the provisions of this section and of rules made under the authority of this Article.  It is unlawful for anyone to command such a vessel engaged in commercial fishing operations that does not meet the license requirements of this Article or of rules made under the authority of the Article, or without making reasonably certain that all persons on board are in compliance with the provisions of this Article and rules made under the authority of this Article.  It is unlawful to participate in any commercial fishing operation in connection with which there is a vessel subject to licensing requirements not meeting the licensing requirements under the provisions of this Article or of rules made under the authority of this Article.
Nothing in this section shall require the licensing of any vessel used solely for oystering, scalloping, or clamming by a person not required to have an oyster, scallop, and clam license under the provisions of G.S. 113-154.  Spears or gigs shall not be deemed commercial fishing equipment unless used in an operation the purpose of which is the taking of fish for commercial purposes.
(b)	License Format/Consolidated License. – Any license that may be required by this section is to be issued in the name of the owner of the vessel.   The format of the license shall include the name of the owner of the vessel, date of birth, expiration date of the license, vessel identification, other license endorsements, and any other information the Division deems necessary to accomplish the purposes of this Subchapter.  The license shall be issued on a card made of hard plastic or metal capable of being used to make imprints.  It is unlawful for the individual or corporate owner of a licensed vessel or any persons with the authority to authorize the use of a licensed vessel to permit any individual who is not eligible to have the license issued to him in his own right to command such licensed vessel for the purpose of engaging in commercial fishing operations.  It is unlawful for such an ineligible person to command a licensed vessel for such purposes.  The license application for a menhaden vessel must state the name of the person in command of the vessel.  Upon change in command of a menhaden vessel, the owner must notify the Secretary within 30 days.  Upon change in ownership of any licensed vessel, the new owner must notify the Secretary within 30 days.
(b1)	Replacement/Consolidated Vessel License. – A replacement vessel license for a lost or destroyed license, including all endorsements, may be issued by the Marine Fisheries Commission upon receipt of a proper application together with a five dollar ($5.00) fee.  A replacement vessel license including all endorsements shall only be obtained from the Morehead City offices of the Division of Marine Fisheries.  The Division shall not accept an application for a replacement license unless the Division determines that the applicant's current license has not been suspended or revoked.  A copy of an application duly filed with the Division shall serve as the license until the replacement license has been received.  The Marine Fisheries Commission may provide by rule for the replacement of lost, obliterated, destroyed, or otherwise illegible license plates or decals upon tender of the original license receipt or upon other evidence that the Marine Fisheries Commission deems sufficient.  
(c)	Vessel License Fees. – Licenses are issued upon a fiscal year basis for vessels of various lengths (length measured straight through the cabin and along the deck, from end to end, excluding the sheer) and types as follows for the fees indicated:
(1)	Vessels, without motors, regardless of length when used in connection with other licensed vessels, no license required.
(2)	Vessels with or without motors not over 18 feet in length, one dollar ($1.00) per foot.
(3)	Vessels with or without motors over 18 feet but not over 38 feet in length, one dollar and fifty cents ($1.50) per foot.
(4)	Vessels with or without motors over 38 feet in length, three dollars ($3.00) per foot.
(4a)	Vessels owned by persons who are not residents of North Carolina, two hundred dollars ($200.00) or an amount equal to the nonresident fee charged by the nonresident's state, whichever is greater, in addition to the fee requirement otherwise applicable under this section.
(5)	Vessels engaged in menhaden fishing shall be taxed, based on tonnage, as prescribed in subsection (d).
(6)	Vessels engaged in commercial fishing operations for which the Commission requires a gear or equipment license shall be subject to fees as prescribed in subsection (g).
(7)	Vessels engaged in selling fish taken from coastal fishing waters shall be subject to the endorsement to sell fees as prescribed in subsection (h) of this section.
(d)	Vessel Fees/Menhaden Fishing. – Vessels engaging in menhaden fishing are subject to the following license and fee requirements:
(1)	For the mother ship, two dollars ($2.00) per ton, gross tonnage, customhouse measurements.
(2)	For each purse boat carrying a purse seine used in connection with a licensed mother ship, no license required.
(3)	Repealed by Session Laws 1983, c. 570, s. 6.
(e)	All licenses in this Article expire on June 30 of each year and are subject to the full license fee regardless of when issued unless otherwise indicated.
Nonresidents obtaining licenses must certify that their conviction record in their state of residence is such that they would not be denied a license under the standards in G.S. 113-166.  When a license application is denied for violations of fisheries laws, whether the violations occurred in North Carolina or another jurisdiction, the license fees shall not be refunded and shall be applied to the costs of processing the application.
(f)	Oyster, Scallop, and Clam Exemption. – No person exempt from the oyster, scallop, and clam license under the provisions of this Article may take more than:
(1)	One bushel of oysters per person per day, not to exceed two bushels per vessel per day;
(2)	One-half bushel of scallops per person per day, not to exceed one bushel per vessel; and
(3)	One hundred clams per person per day, not to exceed two hundred per vessel per day.
(g)	Gear or Equipment Licenses. – Gear or equipment licenses shall be issued upon the payment of fees as prescribed by the Commission in its duly adopted rules at a rate to be established by the Commission between twenty-five dollars ($25.00) and five hundred dollars ($500.00) per license.  The fee rate for gear or equipment licenses, at a minimum, shall be adequate to compensate the Department for the actual and administrative cost associated with the conservation and management of the fishery.  Gear or equipment licenses may be required for commercial fishing operations that do not involve the use of a vessel.
(h)	Endorsement to Sell. – A vessel license may include an endorsement to sell fish taken from coastal fishing waters subject to the requirements of G.S. 113-154.1.  A vessel license containing an endorsement to sell shall be capable of being used to make imprints of the sale or transaction.  Fees for an endorsement to sell on a vessel license are as follows:
(1)	Vessels with or without motors not over 18 feet in length, twenty-five dollars ($25.00).
(2)	Vessels with or without motors over 18 feet but not over 38 feet in length, thirty-five dollars ($35.00).
(3)	Vessels with or without motors over 38 feet in length, forty-five dollars ($45.00).
A fee for an endorsement to sell shall be in addition to any other vessel license fee established under this section."
Sec. 2.  G.S. 113-153 reads as rewritten:
"§ 113-153.  Land or sell license; vessels fishing beyond territorial waters.
(a)	Persons aboard vessels not having their primary situs in North Carolina which are carrying a cargo of fish taken outside the waters of North Carolina may land or sell their catch in North Carolina by purchasing a land or sell license as set forth in this section with respect to the vessel in question.  The Marine Fisheries Commission may by rule modify the land or sell licensing procedure in order to devise an efficient and convenient procedure for licensing out-of-state vessels to only land, or after landing to permit sale of cargo.
(b)	The fee for a land or sell license for a vessel owned by a person who is not a resident of North Carolina is two hundred dollars ($200.00), or an amount equal to the nonresident fee charged by the nonresident's state, whichever is greater.  Persons aboard vessels having a primary situs in a jurisdiction that would allow North Carolina vessels without restriction to land or sell their catch, taken outside such jurisdiction, may land or sell their catch in North Carolina without complying with this section if such persons are in possession of a valid license from their state of residence."
Sec. 3.  Article 14 of Chapter 113 of the General Statutes is amended by adding a new section to read:
"§ 113-154.1.  Endorsement to sell fish.
(a)	Requirements. – Except as otherwise provided in this section, it is unlawful for any person who takes or lands any species of fish under the authority of the Marine Fisheries Commission from coastal fishing waters by any means whatever, including aquaculture operations, to sell, offer for sale, barter or exchange for merchandise such fish, without having first procured a current and valid endorsement to sell fish.  It is unlawful for fish dealers to buy fish unless the seller presents a current and valid vessel license with an endorsement to sell, or a separate endorsement to sell if no vessel is involved, at the time of the transaction.  Any subsequent sale of fish shall be subject to the licensing requirements of fish dealers under G.S. 113-156.
(b)	Fees. – The annual fee for an endorsement to sell fish on a vessel license for a resident of this State is set forth in G.S. 113-152(h).  The annual fee for an endorsement to sell fish when no vessel is involved for a resident of this State is fifteen dollars ($15.00) and for a nonresident of this State is one hundred dollars ($100.00) or an amount equal to the nonresident fee charged by the nonresident's state, whichever is greater.  The license shall be valid for the period July 1 through June 30 of a given year.
(c)	Non-Vessel Endorsement Format. – The format of an endorsement when the applicant is not seeking a vessel license shall include the name of the applicant, date of birth, expiration date of the endorsement, and any other information the Division deems necessary to accomplish the purposes of this Subchapter.  The endorsement shall be issued on a card made of hard plastic or metal capable of being used to make imprints of the sale or transaction.  An applicant who is applying for an endorsement on a vessel license shall comply with G.S. 113-152.
(d)	Application for Non-Vessel Endorsement. – An application for issuance or renewal of an endorsement to sell shall be filed with the Morehead City offices of the Division of Marine Fisheries or license agents authorized to sell licenses under this Article.  An application shall be accompanied by the fee established in subsection (b) of this section.  Applications shall not be accepted from persons ineligible to hold a license issued by the Marine Fisheries Commission, including any applicant whose endorsement is suspended or revoked on the date of the application.  The applicant shall be provided with a copy of the application marked received.  The copy shall serve as the endorsement to sell, until the endorsement issued by the Division is received or the Division determines that the applicant is ineligible to hold an endorsement.  In addition to the information required in subsection (c) of this section, the applicant shall disclose on the application a valid address, and such other information as the Division may require.
(e)	Application for Replacement Non-Vessel Endorsement to Sell. – A replacement endorsement shall only be obtained from the Morehead City offices of the Division of Marine Fisheries.  The Division shall not accept an application for a replacement endorsement unless the Division determines that the applicant's current license has not been suspended or revoked.  A copy of an application duly filed with the Division shall serve as the endorsement until the replacement license has been received.
(f)	Sale of Fish. – It is unlawful for any person licensed under this section to sell fish taken outside the territorial waters of North Carolina or to sell fish taken from coastal fishing waters except to:
(1)	Fish dealers licensed under G.S. 113-156; or
(2)	The public, if the seller is also licensed as a fish dealer under G.S. 113-156.
(g)	Recordkeeping Requirements. – The fish dealer shall record each transaction on a form provided by the Department.  The transaction form shall include the information on the endorsement to sell of the seller, the quantity of the fish, the identity of the fish dealer, and such other information as the Division deems necessary to accomplish the purposes of this Subchapter.  The person who records the transaction shall provide a completed copy of the transaction form to the Department, and to the other party of the transaction.  The Department copy of each transaction from the preceding month shall be transmitted to the Department by the fish dealer on or before the tenth day of the following month.
(h)	Non-Vessel Endorsement to Sell Nontransferable. – An endorsement to sell fish issued under this section is nontransferable.  It is unlawful to use an endorsement to sell issued to another person in the sale or attempted sale of fish or for a licensee to lend or transfer a license to sell with the following two exceptions: (i) an individual under the age of 16 may sell fish under the license of a relative or guardian; or (ii) a license may be transferred within a single fishing operation if the person to whom it is transferred is a U.S. citizen.  It is unlawful for a licensee to lend or transfer a license to sell for the purpose of circumventing the requirements of this section.
(i)	Penalties. – Any person who violates any provision of this section or any rule by the Marine Fisheries Commission to implement this section is guilty of a misdemeanor.
(1)	A violation of subsections (a), (f), or (h) or a rule of the Marine Fisheries Commission implementing any of those subsections is a misdemeanor punishable as follows:
a.	For a first conviction, a fine of not less than fifty dollars ($50.00) or double the value of the fish which are the subject of the transaction, whichever is greater, not to exceed two hundred fifty dollars ($250.00), or imprisonment not to exceed 30 days.
b.	For a second conviction within three years, a fine of not less than two hundred fifty dollars ($250.00) or double the value of the fish which are the subject of the transaction, whichever is greater, not to exceed five hundred dollars ($500.00), or imprisonment not to exceed 90 days, or both.
c.	For a third or subsequent conviction within three years, a fine of not less than five hundred dollars ($500.00) or double the value of the fish which are the subject of the transaction, whichever is greater, or imprisonment not to exceed six months, or both.
(2)	A violation of any other provision of this section other than subsections (a), (f), or (h), or of any rule of the Marine Fisheries Commission other than a rule implementing subsections (a), (f), or (h) of this section, is punishable under G.S. 113-135(a).
(j)	Use of Fees. – Fees paid under G.S. 113-152(h) or G.S. 113-154.1 for an endorsement to sell fish shall be applied to the cost of a fisheries data information system that compiles fisheries data obtained from the endorsement program established by G.S. 113-152 and this section or to marine fisheries programs or research projects that enhance knowledge and use of marine and estuarine resources."
Sec. 4.  G.S. 113-156 reads as rewritten:
"§ 113-156.  Licenses for fish dealers.
(a)	License Requirement. – Except as otherwise provided in this section, it is unlawful for any person involved in a fishing operation not licensed pursuant to this section:
(1)	To buy fish for resale from any person involved in a coastal fishing operation that takes any species of fish under the authority of the Marine Fisheries Commission from coastal fishing waters.  For purposes of this subdivision, a retailer who purchases fish from a fish dealer shall not be liable if the fish dealer has not complied with the licensing requirements of this section;
(2)	To sell fish to the public subject to the licensing requirements of G.S. 113-153(b); or
(3)	To sell to the public any species of fish under the authority of the Marine Fisheries Commission taken from coastal fishing waters by that coastal fishing operation.
Any person subject to the licensing requirements of this section is a fish dealer.  Any person subject to the licensing requirements of this section shall obtain a separate license or set of licenses for each location conducting activities required to be licensed under this section.
(b)	Exceptions to License Requirements. – The Marine Fisheries Commission may make reasonable rules to implement this subsection including rules to clarify the status of the listed classes of exempted persons, require submission of statistical data, and require that records  be kept in order to establish compliance with this section.  Any person not licensed pursuant to this section is exempt from the licensing requirements of this section if all fish handled within any particular licensing category meet one or more of the following requirements:
(1)	The fish are sold by persons whose dealings in fish are primarily educational, scientific, or official, and who have been issued a permit by the Division that authorizes the educational, scientific, or official agency to sell fish harvested or processed in connection with research or demonstration projects; 
								(2)	The fish are sold by individual employees of fish dealers when transacting the business of their duly licensed employer;
(3)	The fish are shipped to a person by a dealer from without the State;
	(4)	The fish are of a kind the sale of which is regulated exclusively by the Wildlife Resources Commission; or
(5)	The fish are purchased from a licensed dealer.
	
(c)	Fees. – Every fish dealer subject to licensing requirements must secure an annual license at each established location for each of the following activities transacted there, upon payment of the fee set out:
(1)	Dealing in oysters:
a.	Oyster shucker-packer (including sale of shell stock), one hundred dollars ($100.00).
b.	Oyster shell stock shipper, fifty dollars ($50.00).
(2)	Dealing in scallops:
a.	Scallop shucker-packer (including sale of shell stock), one hundred dollars ($100.00).
b.	Scallop shell stock shipper, fifty dollars ($50.00).
(3)	Dealing in clams:
a.	Clam shucker-packer (including sale of shell stock), one hundred dollars ($100.00).
b.	Clam shell stock shipper, fifty dollars ($50.00).
(4)	Dealing in hard and soft crabs:
a.	Crab processor (including dealing in unprocessed crabs), one hundred dollars ($100.00).
b.	Unprocessed crab dealer, fifty dollars ($50.00).
(5)	Dealing in shrimp:
a.	Shrimp processor (including dealing in unprocessed shrimp), one hundred dollars ($100.00).
b.	Unprocessed shrimp dealer, fifty dollars ($50.00).
(6)	Dealing in finfish:
a.	Finfish processor (including dealing in unprocessed finfish), one hundred dollars ($100.00).
b.	Unprocessed finfish dealer, fifty dollars ($50.00).
(7)	Operating menhaden processing plant, one hundred dollars ($100.00).
(8)	Operating any other fish-dehydrating or oil-extracting plant, fifty dollars ($50.00).
Any person subject to fish-dealer licensing requirements who deals in fish not included in the above categories must secure a finfish dealer license.  The Marine Fisheries Commission may make reasonable rules implementing and clarifying the dealer categories of this subsection.
(d)	License Format. – The format of the license shall include the name of the licensee, date of birth, name and address of each business location, expiration date of the license, and any other information the Division deems necessary to accomplish the purposes of this Subchapter.
(e)	Application for License. – An application for a fish dealer's license shall be filed with the Morehead City offices of the Division of Marine Fisheries.  An application shall be accompanied by the fee established in subsection (c) of this section.  Applications shall not be accepted from persons ineligible to hold a license issued by the Marine Fisheries Commission, including any applicant whose license is suspended or revoked on the date of the application.  The applicant shall be provided with a copy of the application marked received.  The copy shall serve as the fish dealer's license until the license issued by the Division is received or the Division determines that the applicant is ineligible to hold a license.  Where an applicant does not have an established location for transacting the fisheries business within the State, the license application must be denied unless the applicant satisfies the Secretary that his residence, or some other office or address, within the State, is a suitable substitute for an established location and that records kept in connection with licensing, sale, and purchase requirements will be available for inspection when necessary.  Fish dealers' licenses are issued on a fiscal year basis upon payment of a fee as set forth herein upon proof, satisfactory to the Secretary, that the license applicant is a resident of North Carolina.
(f)	Application for Replacement License. –  A replacement license shall only be obtained from the Morehead City offices of the Division of Marine Fisheries.  The Division shall not accept an application for a replacement license unless the Division determines that the applicant's current license has not been suspended or revoked.  A copy of an application duly filed with the Division shall serve as the license until the replacement license has been received.
(g)	Purchase and Sale of Fish. – It is unlawful for a fish dealer to buy fish unless the seller possesses a current and valid endorsement to sell and the dealer records the transaction on a form provided by the Department consistent with the recording requirements of G.S. 113-154.1.  It is unlawful for a fish dealer to possess or sell fish taken from coastal fishing waters in violation of this Subchapter or the rules adopted by the Marine Fisheries Commission implementing this Subchapter.
(h)	License Nontransferable. – Any fish dealer license issued under this section is nontransferable.  It is unlawful to use a fish dealer license issued to another person in the sale or attempted sale of fish or for a licensee to lend or transfer a fish dealer license for the purpose of circumventing the requirements of this section.
(i)	Penalties. – Any person who violates any provision of this section or any rule by the Marine Fisheries Commission to implement this section is guilty of a misdemeanor.
(1)	A violation of subsections (a), (g), or (h) or a rule of the Marine Fisheries Commission implementing any of those subsections is a misdemeanor punishable as follows:
a.	For a first conviction, a fine of not less than fifty dollars ($50.00) or double the value of the fish which are the subject of the transaction, whichever is greater, not to exceed two hundred fifty dollars ($250.00), or imprisonment not to exceed 30 days.
b.	For a second conviction within three years, a fine of not less than two hundred fifty dollars ($250.00) or double the value of the fish which are the subject of the transaction, whichever is greater, not to exceed five hundred dollars ($500.00), or imprisonment not to exceed 90 days, or both.
c.	For a third or subsequent conviction within three years, a fine of not less than five hundred dollars ($500.00) or double the value of the fish which are the subject of the transaction, whichever is greater, or imprisonment not to exceed six months, or both.
(2)	A violation of any other provision of this section other than subsections (a), (g), or (h), or of any rule of the Marine Fisheries Commission other than a rule implementing subsections (a), (g), or (h) of this section, is punishable under G.S. 113-135(a)."
Sec. 5.  G.S. 113-161 reads as rewritten:
"§ 113-161.  Nonresidents reciprocal agreements.
Persons who are not residents of North Carolina are not entitled to obtain licenses under the provisions of G.S. 113-152 or G.S. 154.1 except as hereinafter provided.  Residents of jurisdictions which sell commercial fishing licenses to North Carolina residents are entitled to North Carolina commercial fishing licenses under the provisions of G.S. 113-152 or G.S. 154.1.  Such licenses may be restricted in terms of area, gear and fishery by the Marine Fisheries Commission so that the nonresidents are licensed to engage in North Carolina fisheries on the same or similar terms that North Carolina residents can be licensed to engage in the fisheries of such other jurisdiction.  The Secretary may enter into such reciprocal agreements with other jurisdictions as are necessary to allow nonresidents to obtain commercial fishing licenses in North Carolina subject to the foregoing provisions."
Sec. 6.  G.S. 113-129(14) reads as rewritten:
"(14)	Shellfish. – Mollusca, specifically including oysters, clams, mussels, scallops, conchs and whelks."
Sec. 7.  The Marine Fisheries Commission may use such powers as may be reasonably necessary to accomplish the purposes of this act.  The Director of the Division of Marine Fisheries of the Department of Environment, Health, and Natural Resources shall report to the Joint Legislative Commission on Seafood and Aquaculture by December 1, 1993, on implementation of this act.

Sec. 8.  G.S. 113-154.1(i), as enacted by Section 3 of this act, becomes effective December 1, 1993, and applies to violations committed on or after that date.  The remainder of this act is effective upon ratification.  The fees for endorsements to sell apply to endorsements issued on or after that date.  This act expires July 1, 1996.
In the General Assembly read three times and ratified this the 24th day of July, 1993.

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Dennis A. Wicker
President of the Senate

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Daniel Blue, Jr.
Speaker of the House of Representatives