A BILL TO BE ENTITLED
AN ACT TO ESTABLISH A COASTAL RECREATIONAL FISHING LICENSE and A marine Resources Restoration fund to restore, protect, and enhance the marine resources of the state.
Whereas, the State of North Carolina has one of the most diverse fisheries in the United States; and
Whereas, the General Assembly recognizes that for many citizens fishing is an important recreational activity and that coastal recreational fishing is a source of great personal enjoyment and satisfaction; and
Whereas, the General Assembly recognizes the importance of providing plentiful fishery resources to maintain and enhance tourism as a major contributor to the economy of the State; and
Whereas, the General Assembly recognizes that commercial fishermen perform an essential function by providing wholesome food for the citizens of the State, nation, and world, and thereby properly earn a livelihood; and 
Whereas, the General Assembly recognizes the economic contribution and important heritage of traditional full‑time and part‑time commercial fishing; and
Whereas, the General Assembly recognizes the need to protect our coastal fishery resources and to balance the commercial and recreational interests through better management of these resources; and
Whereas, the General Assembly is committed to the continued viability of both recreational and commercial fishing industries in the State; and
Whereas, the General Assembly intends that the commercial fishing industry be allowed to continue to take fish by means of all methods traditionally employed in commercial fishing operations, including the use of nets and trawls; and
Whereas, the General Assembly finds that in order to protect coastal fishery resources, it is essential that the recreational as well as the commercial fishing sectors provide data on use of fishery resources for the development of scientifically valid plans to manage fishery resources; and
Whereas, the General Assembly finds that it is essential to the success of efforts to better manage fishery resources that both the recreational and commercial fishing sectors are involved in and support these efforts; and
Whereas, management of marine resources can achieve significant restoration of stocks as demonstrated by the role regulation of overfishing has played in restoring stocks of species such as striped bass; and
Whereas, implementing a system for licensing coastal recreational fishers and establishing a fund containing revenue generated by the licensing system would enable the Division of Marine Fisheries to better disseminate information to and gather information from recreational fishers, who are the largest marine resources user group in our State, and would enable the Division to better manage the marine resources of the State through habitat protection and research; and
Whereas, an objective poll conducted by North Carolina State University found that almost 80% of recreational fishers in North Carolina support the establishment of a system for licensing coastal recreational fishing, with the revenues from the license to be used to manage the marine resources of the State; and
Whereas, recreational fishers should help pay for the fishery regulation and management efforts of the State and should have a voice in this regulation and management; and
Whereas, North Carolina is the only coastal state between Delaware and Texas that is not benefiting from a system for licensing coastal recreational fishing; and
Whereas, the establishment of a system for licensing coastal recreational fishing and the revenue that such a license would generate for the protection, restoration, and enhancement of the marine resources of the State offer the best hope for the long‑term health of the coastal tourism, boating, and fishing industries of North Carolina; Now, therefore,
The General Assembly of North Carolina enacts:
SECTION 1.  Chapter 113 of the General Statutes is amended by adding two new Articles to read:
"Article 14B.
"Coastal Recreational Fishing Licenses.
"§ 113-174.  Definitions.
As used in this Article:
(1)	'Commission' means the Marine Fisheries Commission.
(2)	'CRFL' means Coastal Recreational Fishing License.
(3)	'Division' means the Division of Marine Fisheries in the Department of Environment and Natural Resources.
(4)	'North Carolina resident' means an individual who is a resident within the meaning of G.S. 113-130(4).
(5)	'RCGL' means Recreational Commercial Gear License.
(6)	'Recreational fishing' means any activity preparatory to, during, or subsequent to the taking of any fish, the taking of which is subject to regulation by the Commission, by any means:
a.	That does not constitute a commercial fishing operation as defined in G.S. 113-168.
b.	Except as provided in G.S. 113-261.
(7)	'RSCFL' means Retired Standard Commercial Fishing License issued pursuant to G.S. 113-168.3.
(8)	'SCFL' means Standard Commercial Fishing License issued pursuant to G.S. 113-168.2.
"§ 113-174.1.  General provisions governing recreational licenses.
(a)	License Required to Engage in Recreational Fishing. – It is unlawful for any individual to engage in recreational fishing in coastal fishing waters without holding a license required by this Article. It is unlawful for any individual to engage in recreational fishing without complying with the provisions of this Article and rules adopted by the Commission under this Article.
(b)	Sale of Fish Prohibited. –  A license issued under this Article does not authorize an individual who takes or lands any species of fish under the authority of the Commission to sell, offer for sale, barter, or exchange the fish for anything of value. Except as provided in G.S. 113-168.4, it is unlawful for any individual who takes or lands any species of fish under the authority of the Commission by any means to sell, offer for sale, barter, or exchange these fish for anything of value.
(c)	Assignment and Transfer Prohibited. – Except as provided in G.S. 113‑174.3(e)(1), it is unlawful to buy, sell, lend, borrow, assign, or otherwise transfer a license issued under this Article or to attempt to buy, sell, lend, borrow, assign, or otherwise transfer a license issued under this Article.
(d)	Format. – A license issued under this Article shall be issued in the name of the applicant. A license shall show the type of license; the name, mailing address, physical or residence address, and date of birth of the licensee; the date on which the license is issued; the date on which the license expires; and any other information that the Commission or the Division determines to be necessary to accomplish the purposes of this Subchapter.
(e)	Licenses Available for Inspection. – It is unlawful for any individual to engage in recreational fishing in coastal fishing waters in the State without having ready at hand for inspection all licenses required under this Article. It is unlawful for an individual to refuse to exhibit any license required by this Article upon the request of an inspector or other law enforcement officer authorized to enforce federal or State laws, regulations, or rules relating to marine fisheries.
(f)	Replacement Licenses. – The Division shall issue a replacement license to a licensee for a license that has not been suspended or revoked. A licensee may apply for a replacement license for a license that has been lost, stolen, or destroyed and shall apply for a replacement license within 30 days of a change in the licensee's name or address. A licensee may apply for a replacement license in person at any office of the Division or by mail to the Morehead City office of the Division. A licensee may use a copy of the application for a replacement license that has been filed with the Division as a temporary license until the licensee receives the replacement license. The Commission may establish a fee for each type of replacement license, not to exceed five dollars ($5.00), that compensates the Division for the administrative costs associated with issuing the replacement license.
(g)	No Dual Residency. – It is unlawful for any individual to hold any license issued under this Article to the individual as a North Carolina resident if that individual holds any commercial or recreational fishing license issued by another state to the individual as a resident of that state.
(h)	Limitations on Eligibility. – An individual is not eligible to obtain a license under this Article if, at the time the individual applies for the license, any other license or endorsement issued to the individual under this Article is suspended or revoked. An individual is not eligible to obtain a license under this Article if, within the three years prior to the date of application, the individual has been determined to be responsible for four or more violations of State laws, regulations, or rules governing the management of marine and estuarine resources. An applicant for a license under this Article shall certify that the applicant has not been determined to be responsible for four or more violations of State laws, regulations, or rules governing the management of marine and estuarine resources during the previous three years. The Division may also consider violations of federal law and regulations governing the management of marine and estuarine resources in determining whether an applicant is eligible for a license.
(i)	Cancellation. – The Division may cancel a license issued on the basis of an application that contains false information supplied by the applicant. A cancelled license is void from the date of issuance. An individual in possession of a cancelled license shall surrender the cancelled license to the Division. It is unlawful to refuse to surrender a cancelled license upon demand of any authorized agent of the Division.
(j)	Reporting Requirements. – The holder of a license issued under this Article shall comply with the biological data sampling and survey programs of the Commission and the Division.
(k)	Confidentiality of Information. – Information collected pursuant to this Article, including the names and addresses of licensed individuals, is confidential and is not a public record under Chapter 132 of the General Statutes.
"§ 113-174.2.  Coastal Recreational Fishing License.
(a)	License Required. – Except as otherwise provided in this Article, it is unlawful for any individual to engage in recreational fishing in coastal fishing waters by means of recreational gear without holding a CRFL issued under this section. It is unlawful for any individual licensed under this section or fishing under a CRFL to possess fish in excess of recreational size or possession limits.
(b)	Purchase; Renewal. – Any license issued under this section may be purchased at designated offices of the Division or from the Division by mail. A license issued under subdivisions (1) and (2) of subsection (c) of this section may also be purchased through a license agent authorized under G.S. 113-174.5. Any license issued under this section may be renewed by mail.
(c)	Types of CRFLs; Fees; Duration. – The Division shall issue the following CRFLs:
(1)	Standard CRFL. – $10.00. This license is valid for a period of one year from the date of issuance.
(2)	Ten-Day CRFL. – $5.00. This license is valid for a period of 10 days.
(3)	Lifetime CRFL. – This license is valid for the lifetime of the licensee. The fee for the Lifetime CRFL, based on the age of the prospective licensee as of the date on which the application is filed with the Division, is:
a.	Younger than 18 years of age	$150.00
b.	18 years of age to younger than 62 years of age	$200.00
(4)	Disabled Individual CRFL. – An applicant for a license under this subdivision shall provide documentation to the Division to demonstrate that the applicant is disabled as determined by the United States Social Security Administration. A license issued under this subdivision shall be issued without charge and is valid for the lifetime of the individual so long as the individual remains disabled.
(5)	Disabled Veteran CRFL. – An applicant for a license under this subdivision shall provide documentation to the Division to demonstrate that the applicant is a fifty percent (50%) or more disabled veteran as determined by the United States Department of Veterans Affairs. A license issued under this subdivision shall be issued without charge and is valid for the lifetime of the individual so long as the individual remains fifty percent (50%) or more disabled.
(6)	Legally Blind Lifetime CRFL. – An applicant for a license under this subdivision shall provide documentation to the Division to demonstrate that the applicant is legally blind. A license issued under this subdivision shall be issued without charge and is valid for the lifetime of the licensee.
(d)	Exemptions. – An individual may engage in recreational fishing by means of recreational gear without holding a CRFL if the individual:
(1)	Is under 16 years of age.
(2)	Is 62 years of age or older.
(3)	Holds a SCFL or a RSCFL.
(4)	Holds a Lifetime Resident Comprehensive Fishing License under G.S. 113-271(d)(3) or a Lifetime Sportsman License under G.S. 113‑270.1D(b).
(5)	Is fishing from a public bridge.
(e)	Notwithstanding the fee for the Standard CRFL specified in subdivision (1) of subsection (c) of this section, if the Commission finds that a state has established a coastal recreational fishing license fee that exceeds the fee for the Standard CRFL, the Commission may increase the fee for the Standard CRFL applicable to residents of that state to an amount equal to the fee a North Carolina resident is required to pay for a coastal recreational fishing license in that state. The action of the Commission to increase a fee pursuant to this subsection is not subject to the provisions of Article 2A of Chapter 150B of the General Statutes. The action of the Commission to increase a fee pursuant to this subsection becomes effective on the date specified by the Commission."§ 113-174.3.  Recreational Commercial Gear License.
(a)	License Required. – Except as provided in subsection (e) of this section, it is unlawful for any individual to engage in recreational fishing by means of commercial fishing equipment or gear in coastal fishing waters without holding a RCGL. The RCGL entitles the licensee to use authorized commercial gear to take fish for personal use subject to recreational size and possession limits. It is unlawful for any individual licensed under this section or fishing under a RCGL to possess fish in excess of recreational size or possession limits.
(b)	Authorized Commercial Gear. – 
(1)	The Commission shall adopt rules authorizing the use of a limited amount of commercial fishing equipment or gear for recreational fishing under a RCGL. The Commission may authorize the limited use of commercial gear on a uniform basis in all coastal fishing waters or may vary the limited use of commercial gear within specified areas of the coastal fishing waters. The Commission shall periodically evaluate and revise the authorized use of commercial gear for recreational fishing. Authorized commercial gear shall be identified by visible colored tags or other means specified by the Commission in order to distinguish between commercial gear used in a commercial fishing operation as defined in G.S. 113-168 and commercial gear used for recreational purposes.
(2)	An individual who holds a RCGL may use up to 100 yards of gill net to take fish for recreational purposes. Two individuals who each hold a RCGL and who are fishing from a single vessel may use up to a combined 200 yards of gill net to take fish for recreational purposes. No more than 200 yards of gill net may be used to take fish for recreational purposes from a single vessel regardless of the number of individuals aboard the vessel who hold a RCGL.
(c)	Purchase; Renewal. – A RCGL may be purchased at designated offices of the Division and from a license agent authorized under G.S. 113-174.5. A RCGL may be renewed by mail.
(d)	Duration; Fees. – The RCGL shall be valid for a one-year period from the date of purchase. The fee for a RCGL for a North Carolina resident shall be thirty-five dollars ($35.00). The fee for a RCGL for an individual who is not a North Carolina resident shall be two hundred fifty dollars ($250.00).
(e)	Exemptions. – 
(1)	An individual who is under 16 years of age may engage in recreational fishing by means of authorized commercial gear without holding a RCGL if the individual is accompanied by a parent, grandparent, or guardian who holds a valid RCGL or if the individual has in the individual's possession a valid RCGL issued to the individual's parent, grandparent, or guardian.
(2)	An individual may engage in recreational fishing for crabs by means of one or more crab pots attached to the shore along privately owned land or to a privately owned pier without holding a RCGL provided that the crab pots are attached with the permission of the owner of the land or pier.
(3)	An individual who is on a vessel may engage in recreational fishing by means of authorized commercial gear without holding a RCGL if there is another individual on the vessel who holds a valid RCGL. This exemption does not authorize the use of commercial gear in excess of that authorized for use by the individual who holds the valid RCGL or, if more than one individual on the vessel holds a RCGL, in excess of that authorized for use by those individuals.
(4)	An individual using nonmechanical means may take shellfish for personal use within the limits specified in G.S. 113-169.2(i) without holding a RCGL.
(5)	An individual may take fish for recreational purposes by means of a gig without holding a RCGL.
"§ 113-174.4.  License agents.
(a)	The Secretary shall designate license agents for the Department. At least one license agent shall be designated for each county that contains or borders on coastal fishing waters. The Secretary may designate additional license agents in any county if the Secretary determines that additional agents are needed to provide efficient service to the public. The Division and license agents designated by the Secretary under this section shall issue licenses authorized under this Article in accordance with this Article and the rules of the Commission.
(b)	The Secretary may require license agents to enter into a contract that provides for their duties and compensation, post a bond, and submit to reasonable inspections and audits. If a license agent violates any provision of this Article, the rules of the Commission, or the terms of the contract, the Secretary may initiate proceedings for the forfeiture of the license agent's bond and may summarily suspend, revoke, or refuse to renew a designation as a license agent and may impound or require the return of all licenses, moneys, record books, reports, license forms, and other documents, ledgers, and materials pertinent or apparently pertinent to the license agency. The Secretary shall report evidence of misuse of State property, including license fees, by a license agent to the State Bureau of Investigation as provided by G.S. 114-15.1.
(c)	A license agent may deduct a fee of six percent (6%) from the amount collected for each license.
"Article 14C.
"Marine Resources Restoration Fund.
"§ 113-175.  Definitions.
As used in this section:
(1)	'Board of Trustees' means the Board of Trustees of the Fund.
(2)	'Fund' means the Marine Resources Restoration Fund.
(3)	'License revenues' means the net proceeds from the sale of licenses issued under G.S. 113-174.2 and interest earned from the investment of license proceeds. The term includes funds realized from the sale, lease, rental, or other grant of rights to real or personal property acquired or produced with license revenues and federal aid project reimbursements to the extent that license revenues originally funded the project for which the reimbursement is made.
"§ 113-175.1.  Marine Resources Restoration Fund.
The Marine Resources Restoration Fund is established as a special nonreverting fund within the Department. License revenues shall be deposited in the Fund. The State Treasurer shall invest the assets of the Fund in accordance with the provisions of G.S. 147-69.2 and G.S. 147‑69.3.
"§ 113-175.2.  Board of Trustees of the Marine Resources Restoration Fund.
(a)	Board of Trustees. – There is hereby established the Board of Trustees of the Marine Resources Restoration Fund. The Board of Trustees shall be independent, but for administrative purposes shall be located under the Department.
(b)	Membership, Qualifications. – The Board of Trustees shall consist of seven members appointed to three‑year terms as follows:
(1)	One member appointed by the Governor to a term that expires on July 1 of years that precede by one year those years that are evenly divisible by three.
(2)	One member appointed by the Governor to a term that expires on July 1 of years that are evenly divisible by three.
(3)	One member appointed by the Governor to a term that expires on July 1 of years that follow by one year those years that are evenly divisible by three.
(4)	One member appointed by the General Assembly upon the recommendation of the Speaker of the House of Representatives to a term that expires on July 1 of years that precede by one year those years that are evenly divisible by three.
(5)	One member appointed by the General Assembly upon the recommendation of the Speaker of the House of Representatives to a term that expires on July 1 of years that are evenly divisible by three.
(6)	One member appointed by the General Assembly upon the recommendation of the President Pro Tempore of the Senate to a term that expires on July 1 of years that follow by one year those years that are evenly divisible by three.(7)	One member appointed by the General Assembly upon the recommendation of the President Pro Tempore of the Senate to a term that expires on July 1 of years that precede by one year those years that are evenly divisible by three.
(c)	Qualifications. – A person must hold a license issued under G.S. 113-174.2 at the time of appointment in order to be eligible for appointment to the Board of Trustees under subsection (b) of this section. A person appointed under subsection (b) must continue to hold a license issued under G.S. 113-174.2 in order to remain eligible to serve on the Board of Trustees.
(d)	Officers. – The Governor shall appoint the Chair and Vice-Chair of the Board of Trustees from among the persons appointed under subsection (b) of this section.
(e)	Vacancies. – If a vacancy occurs for a member subject to appointment by the General Assembly upon the recommendation of the Speaker of the House of Representatives or the President Pro Tempore of the Senate, the vacancy shall be filled in accordance with G.S. 120-122. All other vacancies shall be filled by the appointing official in the original manner.
(f)	Meetings; Frequency. – The Board of Trustees shall meet at least twice each year and may hold special meetings at the call of the Chair or a majority of the members. Four members of the Board of Trustees shall constitute a quorum for the transaction of business.
(g)	Per Diem and Expenses. – The Trustees shall receive per diem and necessary travel and subsistence expenses in accordance with the provisions of G.S. 138-5. Per diem, travel, and subsistence expenses shall be paid from the Fund.
"§ 113-175.3.  Allocation of moneys from the Fund.
The Secretary shall disburse moneys from the Fund only upon written direction from the Board of Trustees. The Board of Trustees shall use moneys that accrue to the Fund in each fiscal year for the administration of the provisions of Subchapter IV of Chapter 113 of the General Statutes related to marine fisheries as follows:
(1)	Resource and habitat enhancement. – Not less than thirty-five percent (35%) of the moneys in the Fund shall be used for resource and habitat enhancement, including, but not limited to, artificial reef construction, restoration and enhancement of submerged aquatic vegetation, acquisition of land or an interest in land that provides for the preservation of critical fisheries habitat, and studies used in the development of a Fishery Management Plan or a Coastal Habitat Protection Plan.
(2)	Marine fisheries research. – Not less than thirty-five percent (35%) of the moneys in the Fund shall be used for marine fisheries research, including, but not limited to, life history studies of commercially or recreationally significant marine and estuarine species or fisheries, sampling and statistical studies, data collection and analysis, fisheries habitat studies, commercial and recreational discard mortality studies, and studies used in the development of a Fishery Management Plan or a Coastal Habitat Protection Plan.
(3)	Administration. – Not more than ten percent (10%) of the moneys, exclusive of the license agent fees, in the Fund shall be used for administrative costs.
(4)	Public education and information. – Not less than five percent (5%) but no more than ten percent (10%) of the moneys in the Fund shall be used for public education and information.
(5)	Grants. – Not more than five percent (5%) of the moneys in the Fund shall be used to fund grants for coastal fishing programs, projects, and scholarships.
"§ 113-175.4.  Report.The Chair of the Board of Trustees shall submit to the Joint Legislative Commission on Seafood and Aquaculture and the Joint Legislative Commission on Governmental Operations by September 30 of each year a report on the Fund that shall include the source and amounts of all moneys credited to the Fund and the purpose and amount of all expenditures from the Fund during the prior fiscal year."
SECTION 2.  G.S. 113‑168(1) reads as rewritten:
"(1)	'Commercial fishing operation' means any activity preparatory to, during, or subsequent to the taking of any fish, the taking of which is subject to regulation by the Commission, either with the use of commercial fishing equipment or gear, or by any means if the purpose of the taking is to obtain fish for sale. Commercial fishing operation does not include (i) the taking of fish as part of a recreational fishing tournament, unless commercial fishing equipment or gear is used, (ii) the taking of fish under a RCGL, or (iii) the taking of fish as provided in G.S. 113-261."
SECTION 3.  The catch line of G.S. 113‑168.1 reads as rewritten:
"§ 113‑168.1.  General provisions governing commercial licenses and endorsements."
SECTION 4.  G.S. 113‑168.1(a) reads as rewritten:
"(a)	Duration, Fees. – All licenses and endorsements issued under this Article expire on the last day of the license year. An applicant for any license or endorsement shall pay the full annual fee at the time the applicant applies for the license or endorsement regardless of when application is made."
SECTION 5.  G.S. 113‑168.1(f) reads as rewritten:
"(f)	License Issuance and Renewal. – The Division shall issue licenses and endorsements under this Article to eligible applicants at any office of the Division or by mail from the Morehead City office of the Division. A license or endorsement may be renewed in person at any office of the Division or by mail to the Morehead City office of the Division. Eligibility to renew an expired SCFL shall end one year after the date of expiration of the SCFL."
SECTION 6.  G.S. 113‑172 is repealed.
SECTION 7.  G.S. 113‑173 is repealed.
SECTION 8.  G.S. 143B‑289.52(a) is amended by adding a new subdivision to read:
"(13)	To adopt rules to define fishing gear as either recreational gear or commercial gear for purposes of implementing Article 14B of Chapter 113 of the General Statutes."
SECTION 9.  In order to provide for a system of staggered three‑year terms for members of the Board of Trustees of the Marine Resources Restoration Fund established by G.S. 113‑175.2, as enacted by Section 1 of this act, the following provisions shall apply:
(1)	The term of the member initially appointed to serve in the position established by G.S. 113‑175.2(1) shall be five years and shall expire on July 1, 2009.
(2)	The term of the member initially appointed to serve in the position established by G.S. 113‑175.2(2) shall be three years and shall expire on July 1, 2007.
(3)	The term of the member initially appointed to serve in the position established by G.S. 113‑175.2(3) shall be four years and shall expire on July 1, 2008.
(4)	The term of the member initially appointed to serve in the position established by G.S. 113‑175.2(4) shall be five years and shall expire on July 1, 2009.
(5)	The term of the member initially appointed to serve in the position established by G.S. 113‑175.2(5) shall be three years and shall expire on July 1, 2007.
(6)	The term of the member initially appointed to serve in the position established by G.S. 113‑175.2(6) shall be four years and shall expire on July 1, 2008.
(7)	The term of the member initially appointed to serve in the position established by G.S. 113‑175.2(7) shall be five years and shall expire on July 1, 2009.
SECTION 10.  The first report required by G.S. 113‑175.4, as enacted by Section 1 of this act, shall be submitted by September 30, 2004.
SECTION 11.  Unless otherwise expressly provided, every agency to which this act applies shall adopt rules to implement the provisions of this act only in accordance with the provisions of Chapter 150B of the General Statutes.  This act constitutes a recent act of the General Assembly within the meaning of G.S. 150B‑21.1.  Every agency to which this act applies that is authorized to adopt rules to implement the provisions of this act may adopt temporary rules to implement the provisions of this act.  This section shall continue in effect until all rules necessary to implement the provisions of this act have become effective as either temporary rules or permanent rules.
SECTION 12.  If any section or provision of this act is declared unconstitutional or invalid by the courts, the unconstitutional or invalid section or provision does not affect the validity of this act as a whole or any part of this act other than the part declared to be unconstitutional or invalid.
SECTION 13.  Sections 8, 11, 12, and 13 of this act are effective when this act becomes law. All other sections of this act become effective March 1, 2004.