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Enrolled Bill Summary

Enrolled Bill Summary

Legislative Session: 81(R)

Senate Bill 1016

Senate Author:  Estes et al.

Effective:  9-1-09

House Sponsor:  Flynn et al.


            Senate Bill 1016 amends the Agriculture Code, Alcoholic Beverage Code, Election Code, Government Code, Labor Code, Natural Resources Code, Occupations Code, and Transportation Code to make numerous changes relating to the Texas Department of Agriculture (TDA) and other agricultural matters.  It continues the TDA until September 1, 2021, and revises various statutes to incorporate standard provisions applicable to agencies under sunset review.  The bill revises eligibility requirements for the commissioner of agriculture to authorize the occupancy of that position by a person who, if not otherwise eligible, has worked for at least five preceding calendar years for an agricultural producer association.  It eliminates provisions requiring the TDA to report annually on gifts and grants.

            The bill increases membership on the board of directors of the Texas Agricultural Finance Authority (TAFA) and transfers the appointment of board members from the governor to the commissioner.  It gives the Texas Public Finance Authority (TPFA) the exclusive power to act on behalf of TAFA in issuing debt, and requires the TAFA board in consultation with TPFA to adopt rules containing criteria for evaluating the creditworthiness of loan applicants and the financial feasibility of debt-funded projects.  The bill reorganizes and adds to TAFA financial assistance programs and repeals the preference for assistance to value-added agricultural businesses.  The former linked deposit program becomes the interest rate reduction program, with goals that are more general than under previous law.  The bill sets a maximum loan amount of $500,000 for that program, eliminating dollar limits that applied previously to specific types of loans.  The bill adds a young farmer interest rate reduction program, with the same maximum loan amount, and a young farmer grant program, authorizing grants of between $5,000 and $20,000 and requiring a matching investment by the recipient.  Both programs target farmers who are at least 18 but less than 46 years of age.  The previous young farmer loan guarantee program becomes the agricultural loan guarantee program, under which tiered loan guarantee limits are to be set by the TAFA board.  The bill authorizes the board to establish a program to certify commercial lenders participating in that program.

            Senate Bill 1016 creates the Texas Rural Investment Fund to be used by the TDA to pay for grants or loans to public or private entities in rural communities to stimulate local entrepreneurship, job creation or retention, new capital investment, strategic economic development planning, individual economic and community development leadership training, housing development, or innovative workforce education.  A rural community under such provisions refers to a municipality with a population of less than 50,000 or a county with a population of less than 200,000.  The bill also creates a rural economic development and investment program for attracting new private enterprises including manufacturing, freight storage, and distribution warehouses, water or waste disposal facilities, transportation infrastructure, and land, easements, or rights-of-way.  Financial assistance under the program may go to a municipality with a population of not more than 50,000, a county with a population of not more than 75,000, or an economic development corporation or community development financial institution that primarily represents such a municipality or county.

            The bill modifies general TDA provisions relating to licensing, registration, inspections, complaints, and enforcement.  It increases the maximum administrative penalties for various Agriculture Code violations.  It authorizes the TDA in specified cases to obtain criminal history record information from the Department of Public Safety.

            Senate Bill 1016 modifies the state's regulatory system for public weighers to provide for the performance of public weigher responsibilities by businesses certified by the TDA rather than by elected or appointed officials.  It removes a requirement that cooperative marketing associations file articles of incorporation with the TDA and pay related filing fees.  The bill authorizes the TDA to develop an outreach program to promote better health and nutrition and prevent obesity among Texas children.  It creates a Texas Bioenergy Policy Council and a related consortium, the Texas Bioenergy Research Committee.  The bill abolishes the Texas-Israel Exchange Fund Board and the associated fund, but authorizes the TDA to establish the Texas‑Israel Exchange Advisory Committee to support joint agricultural research and development with  Israel.  Prior law provided for a mandatory wine marketing advisory committee and a wine industry development advisory committee appointed at the discretion of the commission.  The bill combines the functions of the committees into one committee and makes its appointment mandatory.

            The bill modifies the composition of the governing body of the Texas Beef Council and gives the council the authority to administer in Texas the beef check off program established by federal law.  The bill establishes that a livestock association authorized to inspect livestock under federal law has no duty to verify ownership at the point of sale.

            In provisions relating to handling and marketing perishable commodities, the bill eliminates the mandatory licensing of certain cash dealers in such commodities.  It revises provisions relating to claims against other licensees under produce recovery laws.  The bill amends provisions relating to the Produce Recovery Fund Board and the State Seed and Plant Board, to eliminate board appointments by the governor and to instead rest appointment powers with, respectively, the commissioner of agriculture and with the commissioner and specified university presidents.  The bill makes modifications to laws relating to quarantines, including quarantines relating to the Mexican fruit fly, and reduces requirements relating to labeling of rose plants and rose plant shipments.

            Amendments relating to the citrus budwood certification program make it a Class C misdemeanor offense if a person uses, for commercial purposes, citrus budwood that TDA rules require to be certified but that is not certified or does not come from a designated foundation grove.  The bill also authorizes assessment of an administrative penalty for the above-described prohibited activity.  It provides for a nonprofit Texas Citrus Pest and Disease Management Corporation, Inc., governed by a 15-member board to plan, implement, and operate programs to control and suppress the Asian citrus psyllid and the disease known as citrus greening.   The corporation's board is subject to sunset review, with an applicable expiration date, for the board and the related law, of September 1, 2021.

            Provisions relating to pesticide and herbicide regulation, with respect to horticultural diseases and pests, amend the TDA's inspection powers and remove a requirement that the TDA in certain cases before adopting rules conduct at least five regional hearings throughout the state.  Provisions relating to structural pest control, meaning pest control in or at buildings and other structures, revise and clarify who is construed to be in such a business or subject to regulation under the Texas Structural Pest Control Act.  The bill provides that manual laborers and clerical employees who do not identify pests, make inspections or recommendations, apply pesticides or similar substances regulated by the TDA, or make or provide certain estimates, bids, or contracts are not engaged in the pest control business.  It provides that a certified commercial applicator or technician license must be associated with a business license holder, but establishes that a certified commercial applicator, certified noncommercial applicator, or licensed technician need not obtain a separate license for each branch office of an employer.  The bill modifies provisions relating to pest control information that must be made available for indoor treatments at various indoor locations.  It authorizes the TDA to enter reciprocal licensing agreements, regarding structural pest control, with other states that have substantially equivalent license requirements.

            The bill continues the Prescribed Burning Board, applies to that board the same sunset date as that of the TDA, and revises provisions relating to sanctions under the prescribed burning laws and to a certified and insured prescribed burn manager.  The bill authorizes a certified and insured prescribed burn manager to conduct a burn in a county in which a state of emergency or disaster has been declared by the governor or president unless the declaration expressly prohibits all outdoor burning.