H.B. No. 2446
1-1 AN ACT
1-2 relating to the establishment of an organic standards and
1-3 certification program; providing penalties.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Title 2, Agriculture Code, is amended by adding
1-6 Chapter 18 to read as follows:
1-7 CHAPTER 18. ORGANIC STANDARDS AND CERTIFICATION
1-8 Sec. 18.001. DEFINITIONS. In this chapter:
1-9 (1) "Distributor" means a person engaged in the
1-10 business of selling food or fiber for resale, including a
1-11 wholesaler, broker, packer, repacker, shipper, or shipping agent.
1-12 (2) "Logo" means the department's copyrighted "Texas
1-13 Department of Agriculture Certified Organic" or "Texas Department
1-14 of Agriculture Organic Certification Pending--Transitional"
1-15 logotype.
1-16 (3) "Organic certifying agent" means a private organic
1-17 certification organization accredited under this chapter.
1-18 (4) "Organic farming" means a system of ecological
1-19 soil management that relies on building humus levels through crop
1-20 rotations, recycling organic wastes, and applying balanced mineral
1-21 amendments and that uses, when necessary, mechanical, botanical, or
1-22 biological controls with minimum adverse effects on health and
1-23 environment.
1-24 (5) "Organic food" includes only food that is produced
2-1 under a system of organic farming and processed, packaged,
2-2 transported, and stored to retain maximum nutritional value without
2-3 the use of artificial preservatives, coloring or other additives,
2-4 ionizing radiation, or synthetic pesticides.
2-5 (6) "Organic fiber" includes only fiber that is
2-6 produced under a system of organic farming and processed, packaged,
2-7 transported, and stored to maintain segregation and prevention of
2-8 contamination from other fiber or synthetic pesticides, prohibited
2-9 defoliants, or desiccants.
2-10 (7) "Processor" means a person who is engaged in the
2-11 business of manufacturing raw agricultural commodities into food,
2-12 feed, or fiber products.
2-13 (8) "Producer" means a person who is engaged in the
2-14 business of growing or producing food, feed, or fiber.
2-15 (9) "Retailer" means a person, other than a restaurant
2-16 operator, who is engaged in the business of selling food at retail,
2-17 other than at a restaurant, to its ultimate consumer.
2-18 Sec. 18.002. RULES. The department may adopt rules
2-19 necessary for the enforcement and administration of this chapter.
2-20 Sec. 18.003. ORGANIC CERTIFICATION. (a) The department
2-21 shall certify producers, processors, distributors, and retailers of
2-22 organic food and fiber in this state. The department by rule shall
2-23 adopt minimum standards for certification under this chapter.
2-24 (b) A person may apply for an organic certification, or a
2-25 renewal of an organic certification, by submitting an application
2-26 and a nonrefundable annual fee prescribed by the department.
2-27 (c) An organic certification expires on August 31 of each
3-1 year. A person who fails to submit a renewal fee on or before the
3-2 expiration date of the certification must pay, in addition to the
3-3 renewal fee, the late fee provided by Section 12.024 of this code.
3-4 (d) A person who is certified under this chapter may use
3-5 department logos as provided by department rule.
3-6 Sec. 18.004. ORGANIC CERTIFYING AGENT ACCREDITATION PROGRAM.
3-7 (a) The department by rule may accredit a person as an organic
3-8 certifying agent. On receipt of a certificate of accreditation
3-9 under this section, an organic certifying agent may certify for the
3-10 department a producer, processor, distributor, or retailer of
3-11 organic food or fiber under this chapter.
3-12 (b) A person may apply for a certificate of accreditation,
3-13 or a renewal of a certificate of accreditation, by submitting an
3-14 application and a nonrefundable annual fee prescribed by the
3-15 department.
3-16 (c) The department may issue a certificate of accreditation
3-17 under this section only if it determines that the applicant's
3-18 certification standards are equivalent to department certification
3-19 standards.
3-20 (d) A certificate of accreditation expires on the first
3-21 anniversary of the date of issuance. A person who fails to submit
3-22 a renewal fee on or before the expiration date of the certificate
3-23 of accreditation must pay, in addition to the renewal fee, the late
3-24 fee provided by Section 12.024 of this code.
3-25 (e) An organic certifying agent may not:
3-26 (1) provide an organic certification for a person with
3-27 whom the organic certifying agent, or an employee of the organic
4-1 certifying agent, has, or has had, a commercial relationship,
4-2 including providing consulting services;
4-3 (2) accept payment, gifts, or other favors of any kind
4-4 from a person seeking certification, other than fees permitted by
4-5 this chapter; or
4-6 (3) charge a fee other than a fee prescribed by this
4-7 chapter for providing advice about organic practices or techniques.
4-8 Sec. 18.005. USE OF TERM "ORGANIC." A person may not label,
4-9 market, advertise, or represent as "organic" any food or fiber that
4-10 is sold, kept, offered, or exposed for sale, unless that person is:
4-11 (1) certified directly by the department under Section
4-12 18.003 of this code; or
4-13 (2) certified by an organic certifying agent under
4-14 Section 18.004 of this code.
4-15 Sec. 18.006. FEES. (a) The department may charge an annual
4-16 fee not to exceed $2,500 for each applicant certified as a
4-17 producer, distributor, or retailer and a fee not to exceed $5,000
4-18 for each applicant certified as a processor of organic food or
4-19 fiber produced in this state.
4-20 (b) The department may charge an annual fee not to exceed
4-21 $2,500 for each applicant certified as a distributor or retailer
4-22 and a fee not to exceed $5,000 for each applicant certified as a
4-23 processor of organic food or fiber produced outside of this state.
4-24 (c) The department may charge an annual fee not to exceed
4-25 $2,500 for a person who obtains a certificate of accreditation as
4-26 an organic certifying agent.
4-27 (d) The department shall set fees under this chapter in
5-1 amounts that enable it to recover the costs of administering this
5-2 chapter.
5-3 Sec. 18.007. DENIAL, SUSPENSION, OR REVOCATION OF ORGANIC
5-4 CERTIFICATION OR ORGANIC CERTIFYING AGENT ACCREDITATION. The
5-5 department may deny, suspend, or revoke a certification of a
5-6 producer, processor, distributor, or retailer or a certificate of
5-7 accreditation issued to an organic certifying agent under this
5-8 chapter if the person to whom the certification or accreditation
5-9 was issued:
5-10 (1) makes a false representation material to a matter
5-11 governed by this chapter; or
5-12 (2) violates or refuses to comply with this chapter or
5-13 a rule or instruction of the department under this chapter.
5-14 Sec. 18.008. PENALTY. (a) A person commits an offense if
5-15 the person knowingly:
5-16 (1) violates this chapter; or
5-17 (2) fails to comply with a notice, order, or rule of
5-18 the department under this chapter.
5-19 (b) An offense under this section is a Class C misdemeanor.
5-20 Sec. 18.009. CIVIL PENALTY; INJUNCTION. (a) A person who
5-21 violates this chapter or a rule adopted under this chapter is
5-22 liable to the state for a civil penalty not to exceed $500 for each
5-23 violation. Each day a violation continues is a separate violation
5-24 for purposes of a civil penalty assessment.
5-25 (b) On request of the department, the attorney general or
5-26 the county attorney or district attorney of the county in which the
5-27 violation is alleged to have occurred shall file suit to collect
6-1 the penalty.
6-2 (c) A civil penalty collected under this section shall be
6-3 deposited in the general revenue fund. All civil penalties
6-4 recovered in suits instituted by a county or district attorney
6-5 under this section shall be divided between the state and the
6-6 county in which the county or district attorney brought suit, with
6-7 50 percent of the recovery to be paid to the general revenue fund
6-8 and 50 percent to the county.
6-9 (d) The department is entitled to appropriate injunctive
6-10 relief to prevent or abate a violation of this chapter or a rule
6-11 adopted under this chapter. On request of the department, the
6-12 attorney general or the county or district attorney of the county
6-13 in which the alleged violation is threatened or occurring shall
6-14 file suit for the injunctive relief. Venue is in the county in
6-15 which the alleged violation is threatened or is occurring.
6-16 (e) This section is applicable only if the department
6-17 chooses to use civil remedy as opposed to criminal penalty under
6-18 Section 18.008.
6-19 Sec. 18.010. STOP-SALE ORDER. (a) If food or fiber is
6-20 being sold in violation of this chapter or a rule adopted under
6-21 this chapter, the department may issue a written order to stop the
6-22 sale of that item of food or fiber by a person in control of the
6-23 item. The person named in the order may not sell the item until:
6-24 (1) permitted by a court under Subsection (b) of this
6-25 section; or
6-26 (2) the department determines that the sale of the
6-27 item is in compliance with this chapter and rules adopted under
7-1 this chapter.
7-2 (b) The person named in the order may bring suit in a court
7-3 in the county where the item is located. After a hearing, the
7-4 court may permit the item to be sold if the court finds the item is
7-5 not being sold in violation of this chapter or a department rule
7-6 issued under this chapter.
7-7 (c) This section does not limit the department's right to
7-8 act under another section of this chapter.
7-9 SECTION 2. Section 12.0175, Agriculture Code, is amended to
7-10 read as follows:
7-11 Sec. 12.0175. GROWN IN TEXAS PROGRAM<; NATURAL, LEAN, OR
7-12 ORGANIC CERTIFICATION>. <(a)> If the department establishes a
7-13 program to promote products grown in the state or products made
7-14 from ingredients grown in the state, the department may charge a
7-15 membership fee not to exceed $50, as provided by department rule,
7-16 for each producer that participates in the program. The fee shall
7-17 be designed to recover the costs of promotion.
7-18 <(b) If the department establishes an organic certification
7-19 program, the department may charge, as provided by department rule,
7-20 an annual fee not to exceed $500 for each participant certified by
7-21 the department as a processor and a fee not to exceed $150 for each
7-22 participant certified by the department as a producer, distributor,
7-23 or retailer. The fee shall be designed to recover the costs of
7-24 inspection for purposes of certification.>
7-25 SECTION 3. Section 12.024(a), Agriculture Code, is amended
7-26 to read as follows:
7-27 (a) This section is applicable only to a renewal fee under
8-1 Section 14.005, 18.003, 18.004, 71.043, 71.057, 75.004, 76.044,
8-2 76.073, 76.113, or 132.025 of this code.
8-3 SECTION 4. The importance of this legislation and the
8-4 crowded condition of the calendars in both houses create an
8-5 emergency and an imperative public necessity that the
8-6 constitutional rule requiring bills to be read on three several
8-7 days in each house be suspended, and this rule is hereby suspended,
8-8 and that this Act take effect and be in force from and after its
8-9 passage, and it is so enacted.