3.__Expenditures; purpose.__The commissioner may make expenditures from the fund to develop effective and cost- efficient water quality licensing and monitoring criteria, analyze and evaluate monitoring data and process lease applications.__The commissioner shall expend the fund amounts in proportion to the amounts of revenue from finfish sources and shellfish sources.__In developing a program of expenditures, the commissioner shall consult with the Aquaculture Advisory Council established under Title 5, section 12004-I, subsection 57-C.__The commissioner may contract for services privately or under memoranda of agreement with other state agencies.

4.__Additional revenues.__The commissioner may expend annual revenues that are in excess of the operating expenses of a program under subsection 3 to address matters that the commissioner determines are of an emergency nature to the State's aquaculture industry, to address matters that the commissioner determines are of long-term interest to the State's aquaculture industry and to rebate revenues to all those persons who paid fees under subsection 2.__A rebate must be in the same proportion to the total of all rebates as the recipient's fees for that period are to the total of all fees levied for that period.__The commissioner shall consult with the Aquaculture Advisory Council established under Title 5, section 12004-I, subsection 57-C when determining expenditures under this subsection.

5.__Reports.__On or before February 1st of each year, the commissioner shall report to the joint standing committee of the Legislature having jurisdiction over marine resources matters on all expenditures made from the fund in the previous fiscal year and on all work accomplished and planned.__The joint standing committee may introduce and report out legislation it determines necessary to modify the provisions of this section.

6.__Rules.__The commissioner may adopt rules pursuant to this section only after consultation with the aquaculture industry that clearly establish the recommended framework for lease rents, application fees and production fees as well as the related personnel or contracting costs funded by the recommended fee increases.__Rules adopted pursuant to this subsection are major substantive rules as defined in Title 5, chapter 375, subchapter 2-A.

Sec. 20. 12 MRSA §6080, as amended by PL 1999, c. 156, §5, is further amended to read:

§6080. Aquaculture Advisory Council