A. To qualify for limited entry to the purse seine menhaden bait sector, the person or entity shall:

1. Have held a purse seine license in 2011 and landed menhaden in Virginia in 2009, 2010, and 2011, while using purse seine gear to harvest menhaden in one of those three years; and or

2. Provide the commission Marine Resources Commission receipts and landings reports or other requested reports as proof of landings and gear usage to demonstrate that the criteria described in subdivision 1 of this subsection have been met.

3. Have received a valid transfer of purse seine menhaden bait sector quota pursuant to subsection C of this section.

B. The commission Marine Resources Commission shall establish an individual transferable quota (ITQ) system for each purse seine menhaden bait licensee who meets the limited entry requirements in subsection A of this section. The quota for this sector will be allocated according to each qualified licensee's rounded percentage share of the average of the 2007 through 2011 menhaden landings. The quota for this sector will be allocated according to each qualified ITQ holder’s individual percentage share of the 2023 purse seine menhaden bait sector quota.

C. Each licensee qualified under the ITQ system may transfer quota to another licensee's ITQ upon approval of the commissioner. Any person or entity with an individual percentage share of the purse seine menhaden bait sector quota, as provided in subsection B of this section, may transfer purse seine menhaden bait sector quota to any person or entity. The transfer of purse seine menhaden bait sector quota by permanent percentage shareholders may be temporarily, within the same year only, or permanently transferred, and shall be documented on a form provided by the Marine Resources Commission, notarized by a lawful notary public, and approved by the commissioner, or his designee. Temporary percentage shareholders are not eligible to transfer purse seine menhaden bait sector quota to another entity or person except back to the original permanent shareholder the quota was received from.

D. Any person or entity with an individual percentage share of the purse seine menhaden bait sector quota, temporary or permanent, shall purchase a current Purse Seine Menhaden Bait Sector License before harvesting any purse seine menhaden bait sector quota. Only a person or entity with an individual percentage share of purse seine menhaden bait sector quota may purchase a Purse Seine Menhaden Bait Sector License.

E. It shall be unlawful for any person or entity without an individual share of the purse seine menhaden bait sector quota and a current Purse Seine Menhaden Bait Sector License to harvest any menhaden by purse seine for bait. It shall be unlawful for any Purse Seine Menhaden Bait Sector Licensee to harvest any menhaden from the purse seine menhaden bait sector once they no longer possess any unused purse seine menhaden bait sector quota for that year.

D. F. The season for vessels with a gross weight of less than 70 tons that use purse seine nets to take or catch menhaden for purposes other than use as fish meal or oil shall be from the first Monday in March up to, but not including, the first Monday in May.

A. Each licensee of any purse seine vessel who harvests menhaden shall complete a Captain's Daily Fishing Report on each non-weekend or non-holiday day that either purse seine sector is open for harvest. The Captain's Daily Fishing Report is produced by the National Marine Fisheries Service and provides preliminary estimates of harvest. Pursuant to § 28.2-204 of the Code of Virginia, those same licensees shall submit to the commission Marine Resources Commission the Captain's Daily Fishing Reports in addition to summarized weekly harvest reports that include vessel name and exact weight of menhaden landed, in pounds, by Wednesday of the following week.

1. Any menhaden landed by a limited entry purse seine menhaden bait licensee at a qualified menhaden processing factory, as indicated on the mandatory daily landings reports, shall be attributed to the purse seine menhaden reduction sector quota.

2. Once 97% of either purse seine sector's quota is projected and announced to have been taken, each licensee of that purse seine sector shall provide daily harvest totals to the commission's Marine Resources Commission Interactive Voice Recording System.

B. The non-purse seine menhaden bait sector shall submit daily reports according to the schedule and reporting requirements established by 4VAC20-610.