GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1995

H	2 

HOUSE BILL 1076*
Committee Substitute Favorable 5/30/96

Short Title:  Fishery Resource Grant Program.	(Public)

─────────────────────────────────────── 
Sponsors:

─────────────────────────────────────── 
Referred to:  

─────────────────────────────────────── 

May 13, 1996

A BILL TO BE ENTITLED
AN ACT TO COORDINATE THE FISHERY RESOURCE GRANT PROGRAM IN THE NORTH CAROLINA SEA GRANT COLLEGE PROGRAM AT THE UNIVERSITY OF NORTH CAROLINA.
The General Assembly of North Carolina enacts:
Section 1.  Article 15 of Chapter 113 of the General Statutes is amended by adding a new section to read:
"§ 113-190.  Fishery Resource Grant Program.
(a)	Creation. – There is created within the Sea Grant College Program at The University of North Carolina, the Fishery Resource Grant Program.  The purpose of the program is to work within priorities established by the Marine Fisheries Commission to protect and enhance the State's coastal fishery resources through individual grants in the following areas:
(1)	New fisheries equipment or gear;
(2)	Environmental pilot studies, including water quality and fisheries habitat;
(3)	Aquaculture or mariculture of marine dependent species; or
(4)	Seafood technology.
(b)	Annual Establishment of Priorities. – The Commission shall, in cooperation with fishermen, the Division of Marine Fisheries, and the Sea Grant College Program, establish priorities effective July 1 of each year for the grant program.  The adoption of priorities by the Commission shall not be considered rule making within the meaning of the Administrative Procedure Act.  The Commission shall provide public notice of its proposed priorities at least 30 days before the Commission meeting prior to a final determination of its priorities for the fiscal year.
(c)	Procedure to Solicit Proposals. – Following the establishment of priorities by the Commission, Sea Grant shall hold workshops within each of the coastal regions to solicit applications and to assist persons involved in fishing industries in writing proposals. For purposes of this act, the term 'fishing industry' includes persons involved in: (i) commercial or recreational fishing; (ii) aquaculture or mariculture; or (iii) handling fish products such as seafood dealers or processors.  Sea Grant shall encourage preproposal conferences between individuals in the fisheries industry and those with technical or research background to work as partners in developing and writing the proposals and in writing final report results.  If the grants approved by the Commission do not utilize all available funds, Sea Grant may advertise and solicit additional applications during the applicable fiscal year.
(d)	Application for Grant Program. – An applicant may apply for grant funds to the Sea Grant College Program.  For purposes of this subsection, every proposal shall include substantial involvement of active North Carolina persons involved in a fishing industry.  A proposal generated by a person not involved in a fishing industry may be eligible for funding only if the proposal includes written endorsements supporting the project from persons or organizations representing fishing industries.  An application shall include, but not be limited to, the following:
(1)	Name and address of the primary applicant;
(2)	List of licenses issued to the applicant by the State of North Carolina;
(3)	A description of the project;
(4) 	A detailed statement of the projected costs of the project including the cost to plan and design the project;
(5)	An explanation of how the project will enhance the fishery resource;
(6)	List of names and addresses of any other persons who will participate in the project; and
(7)	Any other information necessary to make a recommendation on the application.
(e)	Review Process. –  Sea Grant shall conduct an anonymous peer review of all applications for fisheries grants. At least one of the peer reviewers shall be a person involved in a fishing industry.  Applications shall be confidential and shall not be defined as a public record as defined under G.S. 132-1 until after the closing date for submission of applications.  Following the review of all proposals, Sea Grant shall rank proposals in order of priority and shall present the recommendations to the Commission.  Any criterion used by Sea Grant in ranking proposals shall not require rule making within the meaning of the Administrative Procedure Act, but such criteria shall be public records as defined in G.S. 132-1.
(f)	Award Process. – The Commission shall review the ranking of proposals, and if consistent with the priority rankings established under subsection (e) of this section, shall fund those proposals.  Applications that include involvement by fishermen in the project shall be accorded a priority in funding by the Commission.  Following approval by the Commission, the Sea Grant College Program shall award the grants.  To the extent practicable, the Sea Grant College Program shall distribute grant funding among the northern, southern, central, and Pamlico coastal regions.
(g)	Restrictions on Grants. –  No member of the Commission may benefit financially from a grant.  If a grant recipient from a prior year has failed to perform a grant project to the satisfaction of the Sea Grant College Program or the Commission, the Sea Grant College Program may decline to fund any new application involving the principal applicant.
(h)	Grant Reports and Funding. – Grant recipients shall provide quarterly progress reports to the Sea Grant College Program and shall submit invoices for expenditures for each quarter. Twenty-five percent (25%) of the total grant award shall be held until the grant recipient has completed the project and submitted a final written report.  The remainder of the grant award shall be distributed upon approval of each quarterly report and upon verification of the expenditures.
(i)	Report on Grant Program. – The Sea Grant College Program shall report on an annual basis to the Marine Fisheries Commission and the Joint Legislative Commission on Seafood and Aquaculture."
Sec. 2.  Of the funds appropriated to the Department of Environment, Health, and Natural Resources, the sum of one million dollars ($1,000,000) shall be transferred to the Board of Governors of The University of North Carolina for the Sea Grant College Program to administer the Fishery Resource Grant Program.  The Sea Grant College Program may use up to twenty-five thousand dollars ($25,000) for administrative expenses relating to the Fishery Resource Grant Program.
Sec. 3.  Notwithstanding subsection (b) of Section 1 of this act, the Marine Fisheries Commission may establish priorities by September 1, 1996, for the 1996-97 fiscal year.  The Marine Fisheries Commission may adopt temporary rules to implement the provisions set forth in this act.
Sec. 4.  This act is effective upon ratification.