By:  Montford                                         S.B. No. 1208
                                 A BILL TO BE ENTITLED
                                        AN ACT
    1-1  relating to grading, packing, and inspecting horticultural
    1-2  products.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION 1.  Subchapter A, Chapter 91, Agriculture Code, is
    1-5  amended by amending Sections 91.001, 91.003, 91.004, and 91.005 and
    1-6  adding Section 91.0051 to read as follows:
    1-7        Sec. 91.001.  Department to Administer.   (a)  The department
    1-8  shall administer this chapter and adopt rules necessary for its
    1-9  enforcement.
   1-10        (b)  The department may employ an assistant commissioner and
   1-11  other personnel to supervise the operation of an inspection service
   1-12  to carry out a cooperative agreement under Section 91.005 of this
   1-13  code <shall publish the rules and other information that will aid
   1-14  fruit growers, vegetable growers, and container manufacturers in
   1-15  complying with this chapter>.
   1-16        Sec. 91.003.  INSPECTION SERVICE <INSPECTIONS>.  (a)  To
   1-17  carry out a cooperative agreement entered into under Section 91.005
   1-18  of this code, the department may supervise the operation of a joint
   1-19  state-federal inspection service <The department shall appoint
   1-20  inspectors to inspect fruits and vegetables, other than potatoes,
   1-21  under this chapter>.  The terms of the cooperative agreement govern
   1-22  the operation of the inspection service, appointment of inspectors,
   1-23  and manner of conducting inspections, however no provision of the
   1-24  inspection service agreement may be in violation of state law.
    2-1        (b)  An individual appointed as an inspector or to work in
    2-2  another capacity with an inspection service under Subsection (a) of
    2-3  this section is performing work for the state under the supervision
    2-4  of the department and is a member of the employee class of the
    2-5  Employees Retirement System of Texas under Section 812.003,
    2-6  Government Code <Inspections shall be performed at the various
    2-7  shipping or loading stations in this state when requested by the
    2-8  growers or the shippers of fruits or vegetables, or by the
    2-9  shippers' agents, or by a person with a financial interest in the
   2-10  fruits or vegetables>.
   2-11        <(c)  Each person who requests an inspection shall pay a pro
   2-12  rata share of the expense of inspection.>
   2-13        Sec. 91.004.  Certificate of Inspection.  (a)  The department
   2-14  shall furnish certificates of inspection or other forms to evidence
   2-15  that an official inspection has been made.  The department may
   2-16  issue a joint state-federal inspection certificate for an
   2-17  inspection conducted under a cooperative agreement entered into
   2-18  under Section 91.005 of this code.
   2-19        (b)  <After an applicant has paid a pro rata share of the
   2-20  cost of an inspection performed under this chapter, an inspector
   2-21  shall issue to the applicant a form to evidence that an official
   2-22  inspection has been made or a certificate of inspection that shows
   2-23  the grade, classification, pack, or other standard requirements of
   2-24  the fruits or vegetables.>
   2-25        <(c)>  A certificate of inspection issued under this section
   2-26  is prima facie evidence of the grade, classification, pack, or
   2-27  other standard requirements of the fruits, nuts, or vegetables as
    3-1  of the time of inspection.
    3-2        Sec. 91.005.  Cooperative Agreements.  (a)  The department
    3-3  may enter into cooperative agreements with the United States
    3-4  Department of Agriculture, or with any Texas firm, corporation, or
    3-5  association to carry out shipping point and receiving market
    3-6  inspections under the Agricultural Marketing Act of 1946 (7 U.S.C.
    3-7  Section 1621 et seq.) <that is organized for that purpose, or
    3-8  both>.  An agreement also may provide for the certification of
    3-9  grades of fruits, nuts, and vegetables<, other than potatoes,>
   3-10  under this chapter.
   3-11        (b)  The department also may enter into cooperative
   3-12  agreements with the United States Department of Agriculture or with
   3-13  federal administrative committees established by the United States
   3-14  Department of Agriculture under the Agricultural Marketing
   3-15  Agreement Act of 1937 (7 U.S.C. Section 671 et seq.) to administer
   3-16  and enforce marketing orders and programs <Department inspectors
   3-17  and a firm, corporation, or association that has executed a
   3-18  cooperative agreement shall obtain a license from the department,
   3-19  which shall be issued under department rules>.
   3-20        (c)  In addition to the grades established by this chapter,
   3-21  the department may adopt the United States standards for the
   3-22  fruits, nuts, and vegetables grown in this state by entering into a
   3-23  cooperative agreement with the United States Department of
   3-24  Agriculture under the Agricultural Marketing Act of 1946 (7 U.S.C.
   3-25  Section 1621 et seq.), or the department may adopt rules concerning
   3-26  the grades, grading, or regulation of fruits, nuts, and
   3-27  vegetables<, other than potatoes, under this chapter>.
    4-1        Sec. 91.0051.  FUNDING OF A COOPERATIVE INSPECTION.  (a)  The
    4-2  legislature may not appropriate funds for the operation of an
    4-3  inspection service organized to carry out a cooperative agreement
    4-4  under this chapter.  The legislature may appropriate funds
    4-5  necessary for the department to employ personnel to supervise an
    4-6  inspection service.
    4-7        (b)  Inspection activities conducted under a cooperative
    4-8  agreement under this chapter shall be self-financing.  The
    4-9  department shall charge fees to a person who receives inspection
   4-10  services under a cooperative agreement.
   4-11        (c)  The department shall set fees at amounts that are
   4-12  approximately equal to the cost of providing inspection services.
   4-13        (d)  Notwithstanding any other provision of law, the
   4-14  department shall hold and disburse the fees collected under this
   4-15  chapter under the terms of the cooperative agreement governing the
   4-16  inspection activities for which the fees were collected.
   4-17        SECTION 2.  Section 94.003, Agriculture Code, is amended to
   4-18  read as follows:
   4-19        Sec. 94.003.  Department to Administer.  (a)  The department
   4-20  shall direct and supervise the inspection and certification of
   4-21  maturity of citrus fruit under this chapter and may adopt rules
   4-22  relating to:
   4-23              (1)  the number and character of certificates of
   4-24  inspection and maturity;
   4-25              (2)  inspection requests; and
   4-26              (3)  seasonal requirements of citrus fruit for fitness
   4-27  for human consumption.
    5-1        (b)  The department may direct and supervise the inspection
    5-2  and certification of maturity of citrus fruit under this chapter
    5-3  through the operation of an inspection service organized under
    5-4  Subchapter A, Chapter 91, of this code.
    5-5        SECTION 3.  Subsection (b), Section 95.003, Agriculture Code,
    5-6  is amended to read as follows:
    5-7        (b)  The department shall enforce this chapter, and may
    5-8  direct and supervise the enforcement of this chapter through the
    5-9  operation of an inspection service organized under Subchapter A,
   5-10  Chapter 91, of this code <and the rules adopted under this chapter
   5-11  shall be under the direction of the chief of the maturity
   5-12  division>.
   5-13        SECTION 4.  All funds accumulated by fees previously
   5-14  collected under the terms of a cooperative agreement entered into
   5-15  under Chapter 91, Agriculture Code, and all property purchased with
   5-16  such fees shall be transferred to the inspection service authorized
   5-17  by Chapter 91, Agriculture Code, operating on the effective date of
   5-18  this legislation.  All funds and property transferred under this
   5-19  section shall be subject to the terms of the cooperative agreement
   5-20  in effect at the time of the transfer and shall be used only for
   5-21  the operation of such inspection service.
   5-22        SECTION 5.  This Act takes effect September 1, 1993.
   5-23        SECTION 6.  The importance of this legislation and the
   5-24  crowded condition of the calendars in both houses create an
   5-25  emergency and an imperative public necessity that the
   5-26  constitutional rule requiring bills to be read on three several
   5-27  days in each house be suspended, and this rule is hereby suspended.