SECTION 58.130. Shrimp License Buyback Program

(a) Delegation of Authority. The commission delegates power and authority to the executive director to administer the Shrimp License Buyback Program.

(b) License Buyback Bid Application Period.

(1) The department will open one or more license buyback bid offer application periods (hereafter referred to as application) per license year if available funds permit.

(2) The department shall establish during each application period a deadline for receipt of all applications.

(c) License Buyback Application Requirements.

(1) The department shall consider all applications to the Shrimp License Buyback Program provided the applicants meet the following requirements:

(A) A completed License Buyback Application form furnished by the department has been submitted to the department by the application deadline;

(B) The applicant is the owner of the license submitted for buyback; and

(C) The applicant has submitted to the department copies of all supplemental information as required in this subsection.

(2) A completed License Buyback Application shall contain:

(A) full name of the applicant;

(B) current address of applicant's residence;

(C) social security number of applicant;

(D) a copy of legal documentation that:

(i) documents applicant as the sole owner of the vessel and holds the sole rights and privileges to the license; or

(ii) documents that all members of a partnership or corporation are in agreement to apply to the license buyback program and the submitted bid offer for license buyback;

(E) USCG vessel documentation number or State of Texas registration number;

(F) a copy of current commercial bay and/or bait shrimp boat license; and

(G) the applicant's bid offer, in U.S. dollars.

(3) Department records will be used to verify all information supplied by or pertaining to the applicant's history in the shrimp fishery or will be used in cases where the applicant has not provided adequate information for proper consideration of the application.

(4) Applications received after the established application deadline shall be held for consideration during the next bid offer application period.

(d) Established Maximum Value Criteria.

(1) The department may establish each license year criteria which will be used as appropriate to assign an Established Maximum Value to each application.

(2) The department will assign an Established Maximum Value to each application according to criteria provided in this section.

(3) The Established Maximum Value for each application will be based on the following criteria:

(A) length of vessel;

(B) duration of license in fishery prior to enactment of Parks and Wildlife Code, §§77.117-77.123;

(C) amount of funds accumulated in the Shrimp License Buyback Account;

(D) number of bay and bait licenses in the fishery issued in the license year of the specific bid offer application period;

(E) bid offers from previous application periods;

(F) established open market prices for licenses;

(G) number of licenses offered for sale by applicant; and

(H) other relevant factors.

(4) Adjustments to Established Maximum Value: If an applicant offers both a commercial bay shrimp license and a commercial bait shrimp license issued for the same vessel, the department will add a premium of 7.5% to the Established Maximum Value of each license offered.

(e) Application Ranking Procedures.

(1) Ranking values will be assigned to all applications based on the greatest difference between the Established Maximum Value and the bid offers which are less than the Established Maximum Value.

(2) The department will purchase licenses beginning with the highest ranking to the lowest.

(3) Equally ranked bid offers:

(A) If bid offers are equally ranked and one vessel is larger in length, the department will rank the larger vessel ahead of the smaller;

(B) If bid offers are equally ranked and both vessels are the same length, the department will rank according to the ascending alphabetical order of the applicant's last name.

(4) The department may purchase licenses from applicants whose offers fall within 10% of the Established Market Value and are greater than the Established Market Value.

(f) Notification of Acceptance or Rejection of Application.

(1) Department will notify each applicant in writing within 45 days of receipt of application regarding acceptance or rejection of application bid offer.

(2) Applicants whose bids are accepted must then notify the department of their intent to accept or reject the offer from the department within 15 days of the postmark of the notification letter sent by the department.

(3) The department may retain unsuccessful applications and include them in the next application period.

(4) The unsuccessful applicant may withdraw, resubmit, or amend an application for consideration during any future application periods.

(5) The department will continue to purchase in rank order as the buyback fund permits.

(g) Delegation of purchasing authority.

(1) The department may designate other qualified agents to purchase licenses on behalf of the department provided all purchased licenses are surrendered to the department and retired.

(2) The designated qualified agents may utilize the Maximum Value Criteria established in subsection (d) this section to purchase licenses.

Source Note: The provisions of this §58.130 adopted to be effective October 3, 1996, 21 TexReg 9176.