1-1  By:  Danburg (Senate Sponsor - Bivins)                H.B. No. 2446
    1-2        (In the Senate - Received from the House May 10, 1993;
    1-3  May 11, 1993, read first time and referred to Committee on Natural
    1-4  Resources; May 14, 1993, reported favorably by the following vote:
    1-5  Yeas 7, Nays 0; May 14, 1993, sent to printer.)
    1-6                            COMMITTEE VOTE
    1-7                          Yea     Nay      PNV      Absent 
    1-8        Sims               x                               
    1-9        Truan              x                               
   1-10        Armbrister         x                               
   1-11        Barrientos                                    x    
   1-12        Bivins             x                               
   1-13        Brown                                         x    
   1-14        Carriker                                      x    
   1-15        Lucio              x                               
   1-16        Montford           x                               
   1-17        Ratliff            x                               
   1-18        Shelley                                       x    
   1-19                         A BILL TO BE ENTITLED
   1-20                                AN ACT
   1-21  relating to the establishment of an organic standards and
   1-22  certification program; providing penalties.
   1-23        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-24        SECTION 1.  Title 2, Agriculture Code, is amended by adding
   1-25  Chapter 18 to read as follows:
   1-26           CHAPTER 18.  ORGANIC STANDARDS AND CERTIFICATION
   1-27        Sec. 18.001.  DEFINITIONS.  In this chapter:
   1-28              (1)  "Distributor" means a person engaged in the
   1-29  business of selling food or fiber for resale, including a
   1-30  wholesaler, broker, packer, repacker, shipper, or shipping agent.
   1-31              (2)  "Logo" means the department's copyrighted "Texas
   1-32  Department of Agriculture Certified Organic" or "Texas Department
   1-33  of Agriculture Organic Certification Pending--Transitional"
   1-34  logotype.
   1-35              (3)  "Organic certifying agent" means a private organic
   1-36  certification organization accredited under this chapter.
   1-37              (4)  "Organic farming" means a system of ecological
   1-38  soil management that relies on building humus levels through crop
   1-39  rotations, recycling organic wastes, and applying balanced mineral
   1-40  amendments and that uses, when necessary, mechanical, botanical, or
   1-41  biological controls with minimum adverse effects on health and
   1-42  environment.
   1-43              (5)  "Organic food" includes only food that is produced
   1-44  under a system of organic farming and processed, packaged,
   1-45  transported, and stored to retain maximum nutritional value without
   1-46  the use of artificial preservatives, coloring or other additives,
   1-47  ionizing radiation, or synthetic pesticides.
   1-48              (6)  "Organic fiber" includes only fiber that is
   1-49  produced under a system of organic farming and processed, packaged,
   1-50  transported, and stored to maintain segregation and prevention of
   1-51  contamination from other fiber or synthetic pesticides, prohibited
   1-52  defoliants, or desiccants.
   1-53              (7)  "Processor" means a person who is engaged in the
   1-54  business of manufacturing raw agricultural commodities into food,
   1-55  feed, or fiber products.
   1-56              (8)  "Producer" means a person who is engaged in the
   1-57  business of growing or producing food, feed, or fiber.
   1-58              (9)  "Retailer" means a person, other than a restaurant
   1-59  operator, who is engaged in the business of selling food at retail,
   1-60  other than at a restaurant, to its ultimate consumer.
   1-61        Sec. 18.002.  RULES.  The department may adopt rules
   1-62  necessary for the enforcement and administration of this chapter.
   1-63        Sec. 18.003.  ORGANIC CERTIFICATION.  (a)  The department
   1-64  shall certify producers, processors, distributors, and retailers of
   1-65  organic food and fiber in this state.  The department by rule shall
   1-66  adopt minimum standards for certification under this chapter.
   1-67        (b)  A person may apply for an organic certification, or a
   1-68  renewal of an organic certification, by submitting an application
    2-1  and a nonrefundable annual fee prescribed by the department.
    2-2        (c)  An organic certification expires on August 31 of each
    2-3  year.  A person who fails to submit a renewal fee on or before the
    2-4  expiration date of the certification must pay, in addition to the
    2-5  renewal fee, the late fee provided by Section 12.024 of this code.
    2-6        (d)  A person who is certified under this chapter may use
    2-7  department logos as provided by department rule.
    2-8        Sec. 18.004.  ORGANIC CERTIFYING AGENT ACCREDITATION PROGRAM.
    2-9  (a)  The department by rule may accredit a person as an organic
   2-10  certifying agent.  On receipt of a certificate of accreditation
   2-11  under this section, an organic certifying agent may certify for the
   2-12  department a producer, processor, distributor, or retailer of
   2-13  organic food or fiber under this chapter.
   2-14        (b)  A person may apply for a certificate of accreditation,
   2-15  or a renewal of a certificate of accreditation, by submitting an
   2-16  application and a nonrefundable annual fee prescribed by the
   2-17  department.
   2-18        (c)  The department may issue a certificate of accreditation
   2-19  under this section only if it determines that the applicant's
   2-20  certification standards are equivalent to department certification
   2-21  standards.
   2-22        (d)  A certificate of accreditation expires on the first
   2-23  anniversary of the date of issuance.  A person who fails to submit
   2-24  a renewal fee on or before the expiration date of the certificate
   2-25  of accreditation must pay, in addition to the renewal fee, the late
   2-26  fee provided by Section 12.024 of this code.
   2-27        (e)  An organic certifying agent may not:
   2-28              (1)  provide an organic certification for a person with
   2-29  whom the organic certifying agent, or an employee of the organic
   2-30  certifying agent, has, or has had, a commercial relationship,
   2-31  including providing consulting services;
   2-32              (2)  accept payment, gifts, or other favors of any kind
   2-33  from a person seeking certification, other than fees permitted by
   2-34  this chapter; or
   2-35              (3)  charge a fee other than a fee prescribed by this
   2-36  chapter for providing advice about organic practices or techniques.
   2-37        Sec. 18.005.  USE OF TERM "ORGANIC."  A person may not label,
   2-38  market, advertise, or represent as "organic" any food or fiber that
   2-39  is sold, kept, offered, or exposed for sale, unless that person is:
   2-40              (1)  certified directly by the department under Section
   2-41  18.003 of this code; or
   2-42              (2)  certified by an organic certifying agent under
   2-43  Section 18.004 of this code.
   2-44        Sec. 18.006.  FEES.  (a)  The department may charge an annual
   2-45  fee not to exceed $2,500 for each applicant certified as a
   2-46  producer, distributor, or retailer and a fee not to exceed $5,000
   2-47  for each applicant certified as a processor of organic food or
   2-48  fiber produced in this state.
   2-49        (b)  The department may charge an annual fee not to exceed
   2-50  $2,500 for each applicant certified as a distributor or retailer
   2-51  and a fee not to exceed $5,000 for each applicant certified as a
   2-52  processor of organic food or fiber produced outside of this state.
   2-53        (c)  The department may charge an annual fee not to exceed
   2-54  $2,500 for a person who obtains a certificate of accreditation as
   2-55  an organic certifying agent.
   2-56        (d)  The department shall set fees under this chapter in
   2-57  amounts that enable it to recover the costs of administering this
   2-58  chapter.
   2-59        Sec. 18.007.  DENIAL, SUSPENSION, OR REVOCATION OF ORGANIC
   2-60  CERTIFICATION OR ORGANIC CERTIFYING AGENT ACCREDITATION.  The
   2-61  department may deny, suspend, or revoke a certification of a
   2-62  producer, processor, distributor, or retailer or a certificate of
   2-63  accreditation issued to an organic certifying agent under this
   2-64  chapter if the person to whom the certification or accreditation
   2-65  was issued:
   2-66              (1)  makes a false representation material to a matter
   2-67  governed by this chapter; or
   2-68              (2)  violates or refuses to comply with this chapter or
   2-69  a rule or instruction of the department under this chapter.
   2-70        Sec. 18.008.  PENALTY.  (a)  A person commits an offense if
    3-1  the person knowingly:
    3-2              (1)  violates this chapter; or
    3-3              (2)  fails to comply with a notice, order, or rule of
    3-4  the department under this chapter.
    3-5        (b)  An offense under this section is a Class C misdemeanor.
    3-6        Sec. 18.009.  CIVIL PENALTY; INJUNCTION.  (a)  A person who
    3-7  violates this chapter or a rule adopted under this chapter is
    3-8  liable to the state for a civil penalty not to exceed $500 for each
    3-9  violation.  Each day a violation continues is a separate violation
   3-10  for purposes of a civil penalty assessment.
   3-11        (b)  On request of the department, the attorney general or
   3-12  the county attorney or district attorney of the county in which the
   3-13  violation is alleged to have occurred shall file suit to collect
   3-14  the penalty.
   3-15        (c)  A civil penalty collected under this section shall be
   3-16  deposited in the  general revenue fund.  All civil penalties
   3-17  recovered in suits instituted by a county or district attorney
   3-18  under this section shall be divided between the state and the
   3-19  county in which the county or district attorney brought suit, with
   3-20  50 percent of the recovery to be paid to the general revenue fund
   3-21  and 50 percent to the county.
   3-22        (d)  The department is entitled to appropriate injunctive
   3-23  relief to prevent or abate a violation of this chapter or a rule
   3-24  adopted under this chapter.  On request of the department, the
   3-25  attorney general or the county or district attorney of the county
   3-26  in which the alleged violation is threatened or occurring shall
   3-27  file suit for the injunctive relief.  Venue is in the county in
   3-28  which the alleged violation is threatened or is occurring.
   3-29        (e)  This section is applicable only if the department
   3-30  chooses to use civil remedy as opposed to criminal penalty under
   3-31  Section 18.008.
   3-32        Sec. 18.010.  STOP-SALE ORDER.  (a)  If food or fiber is
   3-33  being sold in violation of this chapter or a rule adopted under
   3-34  this chapter, the department may issue a written order to stop the
   3-35  sale of that item of food or fiber by a person in control of the
   3-36  item.  The person named in the order may not sell the item until:
   3-37              (1)  permitted by a court under Subsection (b) of this
   3-38  section; or
   3-39              (2)  the department determines that the sale of the
   3-40  item is in compliance with this chapter and rules adopted under
   3-41  this chapter.
   3-42        (b)  The person named in the order may bring suit in a court
   3-43  in the county where the item is located.  After a hearing, the
   3-44  court may permit the item to be sold if the court finds the item is
   3-45  not being sold in violation of this chapter or a department rule
   3-46  issued under this chapter.
   3-47        (c)  This section does not limit the department's right to
   3-48  act under another section of this chapter.
   3-49        SECTION 2.  Section 12.0175, Agriculture Code, is amended to
   3-50  read as follows:
   3-51        Sec. 12.0175.  GROWN IN TEXAS PROGRAM<; NATURAL, LEAN, OR
   3-52  ORGANIC CERTIFICATION>.  <(a)>  If the department establishes a
   3-53  program to promote products grown in the state or products made
   3-54  from ingredients grown in the state, the department may charge a
   3-55  membership fee not to exceed $50, as provided by department rule,
   3-56  for each producer that participates in the program.  The fee shall
   3-57  be designed to recover the costs of promotion.
   3-58        <(b)  If the department establishes an organic certification
   3-59  program, the department may charge, as provided by department rule,
   3-60  an annual fee not to exceed $500 for each participant certified by
   3-61  the department as a processor and a fee not to exceed $150 for each
   3-62  participant certified by the department as a producer, distributor,
   3-63  or retailer.  The fee shall be designed to recover the costs of
   3-64  inspection for purposes of certification.>
   3-65        SECTION 3.  Section 12.024(a), Agriculture Code, is amended
   3-66  to read as follows:
   3-67        (a)  This section is applicable only to a renewal fee under
   3-68  Section 14.005, 18.003, 18.004, 71.043, 71.057, 75.004, 76.044,
   3-69  76.073, 76.113, or 132.025 of this code.
   3-70        SECTION 4.  The importance of this legislation and the
    4-1  crowded condition of the calendars in both houses create an
    4-2  emergency and an imperative public necessity that the
    4-3  constitutional rule requiring bills to be read on three several
    4-4  days in each house be suspended, and this rule is hereby suspended,
    4-5  and that this Act take effect and be in force from and after its
    4-6  passage, and it is so enacted.
    4-7                               * * * * *
    4-8                                                         Austin,
    4-9  Texas
   4-10                                                         May 14, 1993
   4-11  Hon. Bob Bullock
   4-12  President of the Senate
   4-13  Sir:
   4-14  We, your Committee on Natural Resources to which was referred H.B.
   4-15  No. 2446, have had the same under consideration, and I am
   4-16  instructed to report it back to the Senate with the recommendation
   4-17  that it do pass and be printed.
   4-18                                                         Sims,
   4-19  Chairman
   4-20                               * * * * *
   4-21                               WITNESSES
   4-22                                                  FOR   AGAINST  ON
   4-23  ___________________________________________________________________
   4-24  Name:  Brent Wren Wiseman                                      x
   4-25  Representing:  Tx Department of Agriculture
   4-26  City:  Austin
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