BILL ANALYSIS
H.B. 2505
By: Swinford (Bivins)
Natural Resources
05-11-95
Senate Committee Report (Unamended)
BACKGROUND
Current law subjects the animal feed industry to the Texas
Commercial Feed Control Act administered by the Texas Feed and
Fertilizer Control Service (service). Each feed and fertilizer
product must be registered with the service. To insure compliance,
the service reviews the product labels to ensure compliance with
all guidelines before distribution. The label must contain certain
information, including the name and percentage of any roughage.
Later in the process, a field inspector may test the product. All
feed industry inspection fees are paid into the Feed Control Fund
which helps pay for administration of service duties.
PURPOSE
As proposed, H.B. 2505 amends licensing and regulation of
commercial feed.
RULEMAKING AUTHORITY
It is the committee's opinion that rulemaking authority is granted
to the Department of Agriculture under SECTION 4 (Section
141.021(b), Agriculture Code) and the Texas Feed and Fertilizer
Control Service under SECTIONS 4, 7, 8, and 18 (Sections
141.021(c), 141.051(a)(3), 141.055(a)(1), 141.149(a), Agriculture
Code) of this bill.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Section 141.001, Agriculture Code, to define
"broker," "feed facility," "licensee," and "product." Redefines
"label." Deletes the definitions of "brand" and "registrant."
SECTION 2. Amends Section 141.002(c), Agriculture Code, to set
forth feeds which are not commercial feeds subject to this chapter,
including unground hay not containing toxins or chemical
adulterants; unadulterated cotton plant by-products or any
unadulterated hulls, rather than cotton seed, peanut, or rice; feed
mixed and used by a person who contracts with the owner of animals
to care for and feed the animals; or a feed or feed ingredient
handled by a broker.
SECTION 3. Amends the heading to Chapter 141B, Agriculture Code,
as follows:
SUBCHAPTER B. LICENSE
SECTION 4. Amends Section 141.021, Agriculture Code, as follows:
Sec. 141.021. New heading: LICENSE REQUIRED. (a) Prohibits
a person from manufacturing or distributing commercial feed
without a valid current license issued by the Texas Feed and
Fertilizer Control Service (service) for each feed facility
that manufactures or distributes commercial feed. Provides
that a person making only retail sales of commercial feed
bearing the label of a licensed manufacturer, guarantor, or
distributor is not required to obtain a license. Deletes
language requiring a person to have a permit issued by the
service and prohibiting a person without a permit from
manufacturing or distributing commercial feed.
(b) Requires an application for a license, rather than a
permit or registration, to be submitted on a form prescribed
and provided by the service and accompanied by a license fee
not to exceed $75 for each facility, as provided by
Department of Agriculture rule.
(c) Requires a licensee or license applicant to provide the
service copies of labels, labeling, and other information
the service, by rule, requires. Deletes language requiring
registration for each mixture, formulation, or type of
commercial feed.
(d) Requires a person applying for a license after the 30th
day after the receipt of notice to obtain a license and a
licensee applying for a license renewal to pay a $75 late
fee in addition to the license fee. Deletes language
providing that a person is not required to register a
commercial feed registered by another person.
SECTION 5. Amends Section 141.023, Agriculture Code, as follows:
Sec. 141.023. New heading: TERM OF LICENSE. Provides that
a license issued under this chapter is permanent unless the
licensee's report to the service indicates no activity for one
year, among other criteria. Makes conforming changes.
SECTION 6. Amends Section 141.025, Agriculture Code, as follows:
Sec. 141.025. New heading: REFUSAL OR REVOCATION OF LICENSE.
Makes conforming changes.
SECTION 7. Amends Section 141.051(a), Agriculture Code, to set
forth information on a label required to be on each distributed
container of commercial feed, other than customer-formula feed,
including the quantity of the feed in the container, in either net
weight, net volume contents, or net fluid content according to
rules adopted by the service. Deletes language requiring the label
to state the net weight of the feed in the container.
SECTION 8. Amends Chapter 141C, Agriculture Code, by adding Section
141.055, as follows:
Sec. 141.055. REQUEST FOR LABEL REVIEW. (a) Requires the
service to establish a method and rules to review labels
submitted by a licensee.
(b) Prohibits the service from charging a fee for a review,
report, or advice under this section.
SECTION 9. Amends Sections 141.071(b) and (d), Agriculture Code,
as follows:
(b) Authorizes the director of the Texas Agricultural
Experiment Station (director), with approval of the board of
regents of the Texas A&M University System (board), to reduce
or increase the inspection increments of one cent up to a
maximum of two cents per fiscal year. Requires the board and
the director to reduce the inspection fee by one cent
increments when the balance of the Texas feed control fund
exceeds one-half the projected operating expenses of the
service for the next fiscal year.
(d) Makes conforming changes.
SECTION 10. Amends Section 141.072, Agriculture Code, as
follows:
Sec. 141.072. QUARTERLY TONNAGE REPORTING AND INSPECTION FEE
PAYMENT. (a) Requires the person paying the inspection fee
for a feed facility generating at least $100 during a license
year in tonnage fees to file with the service a quarterly
sworn report stating certain information, including the
tonnage of all commercial feed that the feed facility, rather
than the person, manufactured or distributed during the
preceding quarter.
(b) Requires the person paying the inspection fee for a feed
facility producing less than $100 a license year in tonnage
fees to file with the service an annual sworn report stating
specified information. Requires each annual tonnage report
to be accompanied by payment of the inspection fee due based
on the tonnage report for that year.
(c) Sets forth the dates by which a quarterly tonnage report
and inspection fee payment is due for persons reporting
quarterly.
(d) Redesignates existing Subsection (c).
SECTION 11. Amends Section 141.073(b), Agriculture Code, to
provide that the penalty together with any delinquent inspection
fee is due before the 61st, rather than 41st, day following the
last day of the quarter. Requires the service to cancel the
license of a licensee who fails to pay the penalty and delinquent
inspection fee within the time period after notice. Makes a
conforming change.
SECTION 12. Amends Sections 141.074(a), (c), and (d),
Agriculture Code, as follows:
(a) Authorizes the service to require each licensee to
maintain records or file additional reports for determining
the tonnage of commercial feed distributed in this state or
identify or verify tonnage reports, rather than quarterly
tonnage reports. Makes a conforming change.
(c) and (d) Make conforming changes.
SECTION 13. Amends Section 141.075(b), Agriculture Code, to make
a conforming change.
SECTION 14. Amends Section 141.121(c), Agriculture Code, to
provide that a stop-sale order expires at the end of the 30th,
rather than 10th, day following the day on which it was affixed
unless the service has already instituted proceedings under Section
141.122 to condemn the feed.
SECTION 15. Amends Sections 141.122(c) and (d), Agriculture
Code, to make conforming changes.
SECTION 16. Amends Section 141.143, Agriculture Code, as
follows:
Sec. 141.143. New heading: DISTRIBUTION OF COMMERCIAL FEED
WITHOUT LICENSE, LABELING, OR PAYMENT OF INSPECTION FEE. (a)
Provides that a person commits an offense if the person
distributes, conspires to distribute, or causes another person
to distribute commercial feed in violation of Subchapter B of
this chapter, among other requirements. Deletes language
regarding an act that is a violation.
(b) Makes no change.
SECTION 17. Amends Section 141.148(a), Agriculture Code, to
provide that a person commits an offense if the person distributes,
conspires to distribute, or causes another person to distribute
certain types of commercial feed, including feed that has been
intentionally subjected to radiation, unless the use of the
radiation was in conformity with a regulation or exemption in
effect under 21 U.S.C. Section 348.
SECTION 18. Amends Chapter 141G, Agriculture Code, by adding
Section 141.149, as follows:
Sec. 141.149. RULES; PENALTY. (a) Requires the service to
adopt rules that conform to but are not more strict than
current manufacturing practices for the use of drugs in the
manufacture, processing, and packaging of commercial feed
unless the service determines that those practices are not
appropriate to conditions existing in this state.
(b) Provides that a person commits an offense for violating
a rule adopted under Subsection (a). Provides that an
offense is a Class C misdemeanor unless the person has been
previously convicted of an offense in this subchapter, in
which event it is a Class B misdemeanor.
SECTION 19. Repealer: Sections 141.022, 141.024, and 141.026,
Agriculture Code (Application for Registration-Changes in
Guaranteed Composition-Refusal or Revocation of Registration).
SECTION 20. Effective date: January 1, 1996.
SECTION 21. Makes application of Section 141.121(c) prospective.
SECTION 22. Emergency clause.