SENATE BUDGET AND APPROPRIATIONS COMMITTEE

STATEMENT TO

[First Reprint]

ASSEMBLY COMMITTEE SUBSTITUTE FOR

ASSEMBLY, No. 1830

STATE OF NEW JERSEY

DATED: MAY 8, 1997

      The Senate Budget and Appropriations Committee reports favorably Assembly Bill No. 1830 ACS (1R) of 1996.

      Assembly Bill No. 1830 ACS (1R), entitled the "New Jersey Aquaculture Development Act," establishes a program to encourage the development of an aquaculture industry in the State. The bill implements, in part, the "Aquaculture Development Plan," prepared by the Aquaculture Development Task Force pursuant to Executive Order No. 104 (1993).

      The bill:

      * defines aquaculture and identifies aquaculture as a component of agriculture;

      * designates the Department of Agriculture as the lead agency for aquaculture marketing, promotion, advocacy and business development in New Jersey, and continues the regulatory role of the Department of Environmental Protection (DEP) in waters of the State;       * designates the Aquaculture Technology Transfer Center, composed of the Multispecies Aquaculture Demonstration Facility at Rutgers, The State University, the Aquaculture Training and Information Center at Cumberland County College, and the Rutgers Cooperative Extension, as the primary State facility for aquaculture education, extension, demonstration, and industry development and commercialization in the State;

      * establishes the Office of Aquaculture Coordination;

      * establishes a 15-member Aquaculture Advisory Council of 13 voting and 2 non-voting members to advise the Department of Agriculture and other State agencies on aquaculture matters;

      * directs the Department of Agriculture, the DEP, the Department of Commerce and Economic Development, and the Department of Health and Senior Services, after consultation with the Aquaculture Advisory Council, to enter into interagency memoranda of agreement concerning certain aquaculture matters;

      * directs the DEP to establish appropriate policies for the use of aquaculture leases in public waters and for lands underneath public waters;

      * directs the DEP to review the laws, rules, and regulations pertaining to aquaculture and establish a program regulating the importation and transport of species used in aquaculture;

      * declares that all State financial and insurance programs that apply to agriculture would also apply to aquaculture;

      * directs the Department of Agriculture to prepare an aquatic health management plan to protect public and private aquaculturists and wild aquatic populations from the importation of non-endemic disease causing organisms;

      * directs the DEP to adopt a comprehensive animal waste management program to provide for the proper disposal of animal wastes generated from aquaculture;

      * directs the State Soil Conservation Committee to develop management practices for control of soil erosion and sedimentation for aquacultural systems;

      * directs the Department of Agriculture to establish a program for the licensure of the possession and ownership of aquacultured species;

      * directs the Office of State Planning to develop an aquaculture component for model planning and zoning ordinances;

      * directs the Department of Labor to review worker's compensation package coverages to assess their general applicability to aquaculture industry needs;

      * directs the Department of Commerce and Economic Development to develop and implement an information campaign to promote in-State and outside investments in aquaculture operations located or based in New Jersey;

      * directs the Department of Commerce and Economic Development to develop mechanisms for providing tax credits or reduced loan payments to a new aquaculture enterprise;

      *   directs the Department of Insurance to review product liability insurance within the State and determine how the coverage might be extended to various segments of the aquaculture industry;

      * adds the New Jersey Aquaculture Association to the list of organizations represented at the annual State Agricultural Convention; and,

      * directs the DEP to provide for the issuance of general permits for the discharge of pollutants from concentrated aquatic animal production facilities and aquacultural projects.

      As reported, this bill is identical to Senate Bill No. 1754 (1R) of 1996 (Singer/Bryant) as amended and reported by this committee on May 8, 1997.

FISCAL IMPACT

      In a fiscal note prepared by the Office of Legislative Services (OLS) on the original version of this bill, the Department of Agriculture estimated additional operating costs under the bill at $200,000 in the initial implementation year and $250,000 annually thereafter.

      The OLS notes that the departments's costs, as well as any additional expenses incurred by the other participating agencies under the bill, will be offset to some degree by the revenues generated by permits, licenses, and other economic benefits stemming from the growth of this industry. Potential revenues can not be estimated until such fee rates and other criteria are determined. The OLS further notes that the responsibilities given to the other State agencies under the bill largely appear to fall within the agencies' existing work parameters; hence, they can probably be carried out using current staff and resources.