Oyster reefs; clarify the designation of public reefs for purposes of leasing.

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To: Marine Resources
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Representative Anderson (122nd)

HOUSE BILL NO. 734
(As Passed the House)

AN ACT TO AMEND SECTIONS 49-15-27 AND 49-15-36, MISSISSIPPI 1
CODE OF 1972, WHICH RELATE TO THE REGULATION AND LEASING OF OYSTER 2
REEFS, FOR PURPOSES OF IDENTIFYING PUBLIC REEFS AND INCREASING THE 3
PERCENTAGE THAT MAY BE DESIGNATED AS STATE-OWNED REEFS; AND FOR 4
RELATED PURPOSES. 5
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 6
SECTION 1. Section 49-15-27, Mississippi Code of 1972, is 7
amended as follows: 8
49-15-27. The department is hereby granted full and complete 9
authority to lease the bottoms within its jurisdiction upon the 10
following terms and conditions: 11
(1) * * * The historical reefs of Pass Christian Tonging, 12
Pass Christian Dredging, Henderson Point, Pass Marianne and the 13
eastern edge of St. joe reef are designated as state public reefs. 14
All others not currently leased, including, but not limited to, 15
Telegraph reef, the western end of St. Joe reef and St. Stanislaus 16
reef, including natural reefs and all areas not within the 17
boundaries of riparian property owners may be leased by the 18
department. 19
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(2) All individual lessees shall be residents of the State 20
of Mississippi, or if a firm or corporation, such firm or 21
corporation shall be organized under the laws of the State of 22
Mississippi * * *. 23
(3) No individual, corporation, partnership or association 24
may lease less than one (1) acre nor more than two thousand five 25
hundred (2,500) acres total; however, in the case of an individual 26
there shall be counted towards such limitation any lands leased by 27
a corporation, partnership or association in which such individual 28
owns ten percent (10%) or less interest and, in the case of a 29
corporation, partnership or association, there shall be counted 30
toward such limitation any lands leased by an individual 31
stockholder, partner or associate thereof who owns ten percent 32
(10%) or less interest in such corporation, partnership or 33
association. 34
(4) Individuals, firms or corporations desiring to lease 35
bottoms shall make application to the department in writing, 36
describing the area to be leased. Applications must include a 37
plat showing the proposed lease area and description of cultch 38
material type and amount to be deployed on the leased area. 39
(5) (a) Any person who qualifies and who desires to lease a 40
part of the bottom or bed of any of the waters of this state as 41
provided in this section shall present to the department a written 42
application, and pay an application fee in the amount of Fifty 43
Dollars ($50.00). This application shall contain the name and 44
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address of the applicant and a reasonably definite description of 45
the location and amount of land covered by water desired by the 46
applicant. The department shall establish a system to determine 47
qualifications of applicants. The department shall prioritize 48
applications based on the following criteria, each of which shall 49
be weighted equally: 50
(i) Experience in oyster reef development; 51
(ii) Experience in oyster cultivation and 52
harvesting; 53
(iii) Whether lease applicant is registered with 54
the U.S. Food & Drug Administration Interstate Certified Shellfish 55
Shippers List for Mississippi, and the length of time the 56
applicant has been registered; 57
(iv) Amount of acreage to be leased; and 58
(v) Evidence of applicant's financial ability to 59
perform cultivation and propagation requirements. 60
The department shall then order an examination to determine 61
whether the water bottoms applied for are leasable. 62
(b) If the applicant is found to be qualified and the 63
area is found to be leasable, the department shall determine the 64
acreage upon which the rent shall be fixed and enter into a lease 65
with the applicant, who shall pay the prorated annual rent in 66
advance for the remainder of the calendar year. If the applicant 67
is not eligible for a lease, the department shall issue a written 68
notice declining the application with specific reasons for same. 69
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(c) The department has the authority to lease an area 70
to an applicant who has no experience in oyster cultivation as 71
long as the applicant can demonstrate their financial stability 72
and the area applied for has not been requested by another 73
applicant with demonstrated experience. 74
(d) The department has the authority to reconfigure the 75
lease areas from that requested by the applicant in the manner 76
that promotes maximum utilization of the state's resources. In 77
the event the area requested by the applicant has to be 78
reconfigured, the applicant has the right to refuse the 79
reconfigured area and withdraw their application and receive a 80
refund of their application fee. 81
(e) The department shall require that the bottoms of 82
water areas to be leased be as definable as possible, taking into 83
consideration such factors as the shape of the body of water, 84
permitted areas, and the condition of the bottom as to hardness or 85
softness which would render it desirable or undesirable for the 86
purpose of oyster cultivation. 87
(f) A lease applicant may withdraw a lease application 88
and receive a full refund from the department of all application 89
fees, by submitting a written request for withdrawal to the 90
department within ninety (90) days after the department received 91
the application. 92
(6) Such leases shall be for an initial term of fifteen (15) 93
years, with the lessee having the right of first renewal of the 94
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lease for an additional fifteen (15) years, and continue to renew 95
at fifteen-year intervals, at the same ground rental rate so long 96
as lessee actively cultivates and gathers oysters, and complies 97
with the provisions of this chapter. No lease may be transferred 98
without approval by the department of the transfer. 99
(7) The terms of every lease issued hereunder shall ensure 100
the maximum cultivation and propagation of oysters. Throughout 101
the term of every lease issued hereunder, each lessee shall add 102
cultch and make other necessary efforts to ensure the maximum 103
cultivation and propagation of oysters. The department shall 104
promulgate regulations to set forth guidelines for lessees to 105
follow to ensure the maximum cultivation and propagation of 106
oysters under the lease. The lessee shall submit a written report 107
with supporting documentation to the department of efforts to 108
cultivate and propagate oysters for the previous year. If the 109
department finds a lessee is not making efforts to cultivate and 110
propagate oysters, and the lessee fails to take remedial steps to 111
address same, such lease shall be subject to termination as 112
provided for hereunder. 113
(8) The department shall fix a ground rental rate at Three 114
Dollars ($3.00) per acre per year. The annual rental payments 115
shall be due by December 31 for the next calendar year. 116
(9) Any lessee who pays the rent on or after the first day 117
of January shall pay the rent due plus an additional ten percent 118
(10%) penalty. The failure of the lessee to pay the rent 119
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punctually on or before the first of each March, ipso facto and 120
without demand or putting in default, terminates and cancels the 121
lease and forfeits to the department all the works, improvements, 122
betterments, and oysters on the leased water bottom. The 123
department may at once enter on the water bottom and take 124
possession thereof. Such water bottom shall then be open for 125
lease in accordance with subsections (5) through (8) of this 126
section. Ten (10) days thereafter the department shall enter the 127
termination, cancellation, and forfeiture on its books and give 128
public notice thereof by publication in one (1) local paper in the 129
county where the formerly leased water bottoms are located. On or 130
before the first day of each February, the department shall issue 131
a written notice of delinquency by certified mail to each lessee 132
who has not yet paid the rent. The department shall also publish 133
notice of such delinquency on its website. 134
(10) The department shall keep an accurate chart of the 135
areas within its jurisdiction and shall mark on such chart those 136
areas which are under lease. All leases shall be marked by 137
appropriate poles, stakes or buoys of such material as will not 138
injure watercraft, at the expense of the leaseholder. The 139
department shall keep an accurate book, designated "Mississippi 140
Oyster Farms" which shall contain copies of all leases. The 141
department shall maintain a map of designated state-owned, leased 142
areas, and areas available for lease on the department's website. 143
If any lease be cancelled or expire, such fact shall be noted on 144
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the face of such lease. Lessees shall be "oyster farmers" for the 145
purposes of any grants, aid, subsidies or other assistance from 146
the federal government or other governmental or private agencies. 147
(11) All funds derived from leasing shall be paid into the 148
Seafood Fund under Section 49-15-17, for use by the department to 149
further oyster production in this state, which includes plantings 150
of oysters and cultch materials. 151
(12) All leases made by the department under the authority 152
of this section shall be subject to the paramount right of the 153
state and any of its political subdivisions authorized by law, to 154
promote and develop ports, harbors, channels, industrial or 155
recreational projects, and all such leases shall contain a 156
provision that in the event such authorized public body shall 157
require the area so leased or any part thereof for such public 158
purposes, that the lease shall be terminated on reasonable notice 159
fixed by the department in such lease. On the termination of any 160
lease, the lessees shall have the right to remove any oysters 161
within the leased area within such time as may be fixed by the 162
department and in accordance with such reasonable rules and 163
regulations as the department may adopt. 164
Any person convicted of taking oysters from leased land or 165
from waters that are not of a safe sanitary quality without a 166
permit as provided in Section 49-15-37 shall, on the first 167
offense, forfeit all equipment used, exclusive of any boat or 168
boats; and be fined not to exceed Two Thousand Dollars ($2,000.00) 169
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or sentenced not to exceed one (1) year in the county jail, or 170
both. Subsequent convictions shall be punishable by forfeiture of 171
all equipment, including any boat or boats; and a fine not to 172
exceed Five Thousand Dollars ($5,000.00) or not to exceed two (2) 173
years in prison, or both such fine and imprisonment. 174
The department is enjoined to cooperate with the Jackson 175
County Port Authority, the Harrison County Development Commission, 176
the municipal port commission and other port and harbor agencies, 177
so that oyster beds shall not be planted in close proximity to 178
navigable channels. The department or lessee shall have no right 179
of action as against any such public body for damages accruing to 180
any natural reef or leased reef by any necessary improvement of 181
such channel in the interest of shipping, commerce, navigation or 182
other purpose authorized by law. 183
(13) A lessee has the exclusive use of the water bottoms 184
leased and all oysters and cultch grown or placed thereon. 185
However, this exclusive right is subordinate to the rights and 186
responsibilities of the state, any political subdivision of the 187
state, the United States, or any agency or agent thereof, to take 188
action in furtherance of coastal protection, conservation or 189
restoration. 190
(14) In order to protect the health and safety of the 191
residents of the State of Mississippi, the terms and conditions 192
relating to the leasing of bottoms provided in this section shall 193
be fully applicable to any lease executed by the Mississippi 194
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Department of Marine Resources prior to April 17, 2023, and the 195
department shall revise any lease issued prior to April 17, 2023, 196
as necessary in order to comply with the provisions of this 197
section. 198
SECTION 2. Section 49-15-36, Mississippi Code of 1972, is 199
amended as follows: 200
49-15-36. (1) The Department of Marine Resources shall have 201
full jurisdiction and control of all designated state-owned reefs 202
and oyster bottoms of the State of Mississippi. * * * In no event 203
shall the department designate more than fifty percent (50%) of 204
the permitted areas available as state-owned reefs. Permitted 205
areas not subject to a lease under this chapter shall remain open 206
to the public. 207
(2) State-owned reefs may be opened for harvest of oysters 208
during the season on a rotating basis. If the department 209
determines that a particular reef has been overharvested or that a 210
high percentage of sublegal size oysters exist on a particular 211
reef and that harvest could damage future oyster crops, the 212
department may close designated reef areas and keep them closed 213
during the season. 214
(3) The department shall promulgate regulations regarding 215
the closing of oyster reefs to protect the public health. When 216
that testing indicates the oysters on the closed reef are suitable 217
for consumption, the reef shall be opened for the taking of 218
oysters as soon as notice of that opening may be made to 219
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ST: Oyster reefs; clarify the designation of
public reefs for purposes of leasing.
interested parties. The authority to open or close oyster reefs 220
under this chapter shall be solely within the discretion of the 221
department. The Gulf Coast Research Laboratory or other certified 222
laboratory shall cooperate with the department and shall conduct 223
necessary tests to determine the condition of oyster reefs at the 224
request of the department. The department may limit the sale of 225
oysters for human consumption. 226
(4) (a) The department may issue special permits for the 227
purpose of catching oysters outside the open season or in areas 228
not normally open to harvest to those nonprofit organizations that 229
are tax exempt under Section 501(c) of the United States Internal 230
Revenue Code and which have on file with the Department of Revenue 231
a tax exemption letter issued by the United States Internal 232
Revenue Service. 233
(b) The department shall promulgate rules and 234
regulations governing the taking of oysters by the nonprofit 235
organization and shall issue such regulations to all organizations 236
upon request and at the issuance of the special permit. 237
(5) The department shall establish a reasonable period of 238
time for depuration of oysters replanted from restricted waters. 239
That period of time shall be consistent with the maintenance of 240
the public health and may vary from time to time and from one reef 241
to another in accordance with environmental conditions. 242
SECTION 3. This act shall take effect and be in force from 243
and after July 1, 2026, and shall stand repealed on June 30, 2026. 244