1-1  By:  Montford                                         S.B. No. 1208
    1-2        (In the Senate - Filed March 12, 1993; March 16, 1993, read
    1-3  first time and referred to Committee on Natural Resources;
    1-4  April 23, 1993, reported adversely, with favorable Committee
    1-5  Substitute by the following vote:  Yeas 6, Nays 0; April 23, 1993,
    1-6  sent to printer.)
    1-7                            COMMITTEE VOTE
    1-8                          Yea     Nay      PNV      Absent 
    1-9        Sims               x                               
   1-10        Truan              x                               
   1-11        Armbrister                                     x   
   1-12        Barrientos                                     x   
   1-13        Bivins                                         x   
   1-14        Brown              x                               
   1-15        Carriker                                       x   
   1-16        Lucio              x                               
   1-17        Montford           x                               
   1-18        Ratliff                                        x   
   1-19        Shelley            x                               
   1-20  COMMITTEE SUBSTITUTE FOR S.B. No. 1208                By:  Carriker
   1-21                         A BILL TO BE ENTITLED
   1-22                                AN ACT
   1-23  relating to grading, packing, and inspecting horticultural
   1-24  products.
   1-25        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-26        SECTION 1.  Subchapter A, Chapter 91, Agriculture Code, is
   1-27  amended by amending Sections 91.001, 91.003, 91.004, and 91.005 and
   1-28  adding Section 91.0051 to read as follows:
   1-29        Sec. 91.001.  Department to Administer.   (a)  The department
   1-30  shall administer this chapter and adopt rules necessary for its
   1-31  enforcement.
   1-32        (b)  The department may employ an assistant commissioner and
   1-33  other personnel to supervise the operation of an inspection service
   1-34  to carry out a cooperative agreement under Section 91.005 of this
   1-35  code <shall publish the rules and other information that will aid
   1-36  fruit growers, vegetable growers, and container manufacturers in
   1-37  complying with this chapter>.
   1-38        Sec. 91.003.  INSPECTION SERVICE <INSPECTIONS>.  (a)  To
   1-39  carry out a cooperative agreement entered into under Section 91.005
   1-40  of this code, the department may supervise the operation of a joint
   1-41  state-federal inspection service <The department shall appoint
   1-42  inspectors to inspect fruits and vegetables, other than potatoes,
   1-43  under this chapter>.  The terms of the cooperative agreement govern
   1-44  the operation of the inspection service, appointment of inspectors,
   1-45  and manner of conducting inspections.
   1-46        (b)  An individual appointed as an inspector or to work in
   1-47  another capacity with an inspection service under Subsection (a) of
   1-48  this section is performing work for the state under the supervision
   1-49  of the department and is a member of the employee class of the
   1-50  Employees Retirement System of Texas under Section 812.003,
   1-51  Government Code <Inspections shall be performed at the various
   1-52  shipping or loading stations in this state when requested by the
   1-53  growers or the shippers of fruits or vegetables, or by the
   1-54  shippers' agents, or by a person with a financial interest in the
   1-55  fruits or vegetables>.
   1-56        <(c)  Each person who requests an inspection shall pay a pro
   1-57  rata share of the expense of inspection.>
   1-58        Sec. 91.004.  Certificate of Inspection.  (a)  The department
   1-59  shall furnish certificates of inspection or other forms to evidence
   1-60  that an official inspection has been made.  The department may
   1-61  issue a joint state-federal inspection certificate for an
   1-62  inspection conducted under a cooperative agreement entered into
   1-63  under Section 91.005 of this code.
   1-64        (b)  <After an applicant has paid a pro rata share of the
   1-65  cost of an inspection performed under this chapter, an inspector
   1-66  shall issue to the applicant a form to evidence that an official
   1-67  inspection has been made or a certificate of inspection that shows
   1-68  the grade, classification, pack, or other standard requirements of
    2-1  the fruits or vegetables.>
    2-2        <(c)>  A certificate of inspection issued under this section
    2-3  is prima facie evidence of the grade, classification, pack, or
    2-4  other standard requirements of the fruits, nuts, or vegetables as
    2-5  of the time of inspection.
    2-6        Sec. 91.005.  Cooperative Agreements.  (a)  The department
    2-7  may enter into cooperative agreements with the United States
    2-8  Department of Agriculture, or with any <Texas> firm, corporation,
    2-9  or association to carry out shipping point and receiving market
   2-10  inspections under the Agricultural Marketing Act of 1946 (7 U.S.C.
   2-11  Section 1621 et seq.) <that is organized for that purpose, or
   2-12  both>.  An agreement also may provide for the certification of
   2-13  grades of fruits, nuts, and vegetables<, other than potatoes,>
   2-14  under this chapter.
   2-15        (b)  The department also may enter into cooperative
   2-16  agreements with the United States Department of Agriculture or with
   2-17  federal administrative committees established by the United States
   2-18  Department of Agriculture under the Agriculture Marketing Agreement
   2-19  Act of 1937 (7 U.S.C. Section 671 et seq.) to administer and
   2-20  enforce marketing orders and programs <Department inspectors and a
   2-21  firm, corporation, or association that has executed a cooperative
   2-22  agreement shall obtain a license from the department, which shall
   2-23  be issued under department rules>.
   2-24        (c)  In addition to the grades established by this chapter,
   2-25  the department may adopt the United States standards for the
   2-26  fruits, nuts, and vegetables grown in this state by entering into a
   2-27  cooperative agreement with the United States Department of
   2-28  Agriculture under the Agriculture Marketing Act of 1946 (7 U.S.C.
   2-29  Section 1621 et seq.), or the department may adopt rules concerning
   2-30  the grades, grading, or regulation of fruits, nuts, and
   2-31  vegetables<, other than potatoes, under this chapter>.
   2-32        Sec. 91.0051.  FUNDING OF A COOPERATIVE INSPECTION.  (a)  The
   2-33  legislature may not appropriate funds for the operation of an
   2-34  inspection service organized to carry out a cooperative agreement
   2-35  under this chapter.  The legislature may appropriate funds
   2-36  necessary for the department to employ personnel to supervise an
   2-37  inspection service.
   2-38        (b)  Inspection activities conducted under a cooperative
   2-39  agreement under this chapter shall be self-financing.  The
   2-40  department shall charge fees to a person who receives inspection
   2-41  services under a cooperative agreement.
   2-42        (c)  The department shall set fees at amounts that are
   2-43  approximately equal to the cost of providing inspection services.
   2-44        (d)  Notwithstanding any other provision of law, the
   2-45  department shall hold and disburse the fees collected under this
   2-46  chapter under the terms of the cooperative agreement governing the
   2-47  inspection activities for which the fees were collected.
   2-48        SECTION 2.  Section 94.003, Agriculture Code, is amended to
   2-49  read as follows:
   2-50        Sec. 94.003.  Department to Administer.  (a)  The department
   2-51  shall direct and supervise the inspection and certification of
   2-52  maturity of citrus fruit under this chapter and may adopt rules
   2-53  relating to:
   2-54              (1)  the number and character of certificates of
   2-55  inspection and maturity;
   2-56              (2)  inspection requests; and
   2-57              (3)  seasonal requirements of citrus fruit for fitness
   2-58  for human consumption.
   2-59        (b)  The department may direct and supervise the inspection
   2-60  and certification of maturity of citrus fruit under this chapter
   2-61  through the operation of an inspection service organized under
   2-62  Subchapter A, Chapter 91, of this code.
   2-63        SECTION 3.  Subsection (b), Section 95.003, Agriculture Code,
   2-64  is amended to read as follows:
   2-65        (b)  The department shall enforce this chapter, and may
   2-66  direct and supervise the enforcement of this chapter through the
   2-67  operation of an inspection service organized under Subchapter A,
   2-68  Chapter 91, of this code <and the rules adopted under this chapter
   2-69  shall be under the direction of the chief of the maturity
   2-70  division>.
    3-1        SECTION 4.  All funds accumulated by fees previously
    3-2  collected under the terms of a cooperative agreement entered into
    3-3  under Chapter 91, Agriculture Code, and all property purchased with
    3-4  such fees shall be transferred to the inspection service authorized
    3-5  by Chapter 91, Agriculture Code, operating on the effective date of
    3-6  this legislation.  All funds and property transferred under this
    3-7  section shall be subject to the terms of the cooperative agreement
    3-8  in effect at the time of the transfer.
    3-9        SECTION 5.  This Act takes effect September 1, 1993.
   3-10        SECTION 6.  The importance of this legislation and the
   3-11  crowded condition of the calendars in both houses create an
   3-12  emergency and an imperative public necessity that the
   3-13  constitutional rule requiring bills to be read on three several
   3-14  days in each house be suspended, and this rule is hereby suspended.
   3-15                               * * * * *
   3-16                                                         Austin,
   3-17  Texas
   3-18                                                         April 23, 1993
   3-19  Hon. Bob Bullock
   3-20  President of the Senate
   3-21  Sir:
   3-22  We, your Committee on Natural Resources to which was referred S.B.
   3-23  No. 1208, have had the same under consideration, and I am
   3-24  instructed to report it back to the Senate with the recommendation
   3-25  that it do not pass, but that the Committee Substitute adopted in
   3-26  lieu thereof do pass and be printed.
   3-27                                                         Sims,
   3-28  Chairman
   3-29                               * * * * *
   3-30                               WITNESSES
   3-31                                                  FOR   AGAINST  ON
   3-32  ___________________________________________________________________
   3-33  Name:  Jerry A. Walzel                           x
   3-34  Representing:  Tx Citrus & Vegetable Assn.
   3-35  City:  Harlingen, Texas
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   3-37  Name:  Byron C. Warnken                          x
   3-38  Representing:  SW Peanut Shellers Assn.
   3-39  City:  Pleasanton, Texas
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   3-41  Name:  Barry R. McBee                                          x
   3-42  Representing:  Tx Dept of Agriculture
   3-43  City:  Austin, Texas
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   3-45  Name:  Waldo W. Morgan                                         x
   3-46  Representing:  Tx Dept of Agriculture
   3-47  City:  Austin, Texas
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