Oyster reef leases; bring forward sections.

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To: Ports and Marine
Resources
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Senator(s) DeLano

SENATE BILL NO. 2635

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