BILL ANALYSIS



C.S.H.B. 2536
By: Cuellar
April 27, 1995
Committee Report (Substituted)


BACKGROUND

Tristeza is a deadly virus that infects citrus trees.  There is
no cure for tristeza, so infected trees must be destroyed to keep
the virus from spreading.  Although tristeza is not yet a problem
in Texas, it has the potential to devastate the state's citrus
industry if more severe strains enter the state.  The only
effective way to control the disease is through prevention--avoiding the disease by using tristeza-resistant citrus budwood
varieties.

Budwood is a piece of living wood which bears buds and is used to
graft onto other trees.  A common practice of the citrus industry
is to purchase improved budwood varieties and graft them onto
grove trees.  However, grafting budwood infected with tristeza or
other fatal citrus diseases such as psorosis or exocortis would
ruin a healthy grove tree.  Recently, the Texas citrus industry
and the Texas A&M-Kingsville Citrus Center at Weslaco have
developed virus-free plants that will provide a source of
tristeza resistant citrus budwood.  

Presently, there are no nurseries in Texas that sell certified
budwood, guaranteed to be disease-free.  C.S.H.B. 2536 would give
the Texas Department of Agriculture (the department) the
authority to establish a budwood certification program that would
allow citrus growers to purchase certified disease-resistant
budwood.  Florida and California are in the process of
implementing similar programs.


PURPOSE

This Act establishes the Citrus Budwood Advisory Council to
administer the Texas Citrus Budwood Certification Program aimed
at eliminating the trade of diseased citrus budwood.


RULEMAKING AUTHORITY

It is the committee's opinion that this bill expressly grants
rulemaking authority to the Texas Department of Agriculture in
SECTION 1  [Sections 19.006 and 19.009].


SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Title 2, Agriculture Code, by adding Chapter
19, as follows:

       Chapter 19.  CITRUS BUDWOOD CERTIFICATION PROGRAM. 

     Section 19.001.  PURPOSE.  Sets forth the purpose of this
chapter.

     Section 19.002.  DEFINITIONS.  Defines for the purposes of
the chapter: "Advisory   Council," "Certified citrus budwood,"
"Citrus budwood," "Citrus grower" and   "Foundation grove."

     Section 19.003.  APPLICABILITY.  Sets forth that the chapter
applies only to citrus   budwood sold for citrus production.

     Section 19.004.  CITRUS BUDWOOD CERTIFICATION PROGRAM. 
Establishes    the citrus budwood certification program to be
administered by the Texas Department    of Agriculture (the
department).  Requires the department to establish and set  standards for foundation citrus groves and the certification of
budwood from such   groves.

     Section 19.005.  ADVISORY COUNCIL.  Sets forth that the
members of the      Advisory Council may not receive compensation
for expenses related to serving on the  council.  The Advisory
Council shall be composed of seven members appointed to     two-year terms by the commissioner of agriculture:

           -one representative of the department,

           -one representative of the Texas A&M University-Kingsville Citrus Center at                    Weslaco,

           -two representatives of the citrus nursery industry,

           -two representatives of citrus growers and

           -one specialist of citrus diseases and pests.


     Section 19.006.  RULES.  Provides the department the
authority to adopt rules      pertinent to executing the Texas
Citrus Budwood Certification Program.

     Section 19.007  CERTIFICATION STANDARDS.  Requires the
department to  establish procedures and standards for:
     
           Àinspecting and certifying citrus budwood,

           -preventing and testing for budwood diseases,

           -maintaining records,

           -maintaining a source of superior budwood varieties
for industry use, and

           -verifying the propagation of citrus varieties.

     Section 19.008.  APPLYING FOR FOUNDATION GROVE DESIGNATION
AND  BUDWOOD CERTIFICATION.  Requires a person who desires to
operate a  foundation grove and produce certified budwood to
apply for foundation grove    designation and citrus budwood
certification.

     Section 19.009.  REVOCATION.  Requires the department to
establish rules relating      to revoking a grove designation or
budwood certification.

     Section 19.010.  PROGRAM COST; FEES; ACCOUNT.  Sets forth
that the   department shall assess the costs of administering
the program through foundation     grove designation and
certification fees established by the department.  Also, sets
forth      that private funds received for the purpose of
administering the program will be  deposited in a general revenue
special fund to be appropriated to the department.

     Section 19.011.  STOP-SALE ORDER.  Permits the department to
issue a written     order to stop the sale of uncertified citrus
budwood.  Prohibits sale of the product until     it is found to
be in compliance with this chapter and department rules.  A court
may  permit the sale if it determines the budwood is not being
sold in violation.

     Section 19.012.  CRIMINAL PENALTY.  Establishes a Class "C"
misdemeanor,   punishable by a fine up to $500, for selling
uncertified citrus budwood or for failing to      comply with a
stop-sale order.


     Section 19.013.  CIVIL PENALTY; INJUNCTION.  
           
           (a)  Sets forth that a person who violates this
chapter may be charged a civil          penalty of up to $500 per
violation.  Each day a violation continues is a        separate
violation.

           (b) Requires the attorney general of the county or
district attorney of the           county where the violation
allegedly occurred to file suit upon request of the         department. 
     
           (c) The penalty shall be deposited in the general
revenue fund.  If the suit              is filed by a district or
county attorney, then the collected penalty will be         equally split between the county and the general revenue fund.  

           (d) Permits the department to invoke an injunction,
to be administered by the          attorney general, district
attorney or county attorney, to prevent or abate a          person from violating the Texas Citrus Budwood Certification
Program.

           (e) A person is not subject to both a criminal and
civil penalty for the same         violation.     

     Section 19.014.  ADMINISTRATIVE PENALTIES.  Permits the
department to assess     an administrative penalty for a person
who falsely claims to have certified citrus  budwood.

SECTION 2.  Amends Section 12.020(c), Agriculture Code.  Sets
forth that the maximum administrative penalty to be assessed
under this chapter is $2,000.

SECTION 3.  Emergency clause.  Effective upon passage.


COMPARISON OF ORIGINAL TO SUBSTITUTE

The substitute, drafted by the Legislative Council, includes all
major provisions of the original bill, which was not a
Legislative Council draft.  It also authorizes the department to
revoke a citrus producer's grove designation or budwood
certification, and establishes an administrative penalty cap of
$2,000.


SUMMARY OF COMMITTEE ACTION

The committee considered H.B. 2536 in a public hearing on
Tuesday, April 11, 1995.

The following persons testified in favor of the bill:

     Mr. Ray Prewett representing himself and Texas Citrus
Mutual; and

     Mr. Jerry Walzel representing himself and the Texas Citrus
and Vegetable Association.

The following person testified neutrally on the bill:

     Mr. Barry McBee representing the Texas Department of
Agriculture.

The committee considered a complete substitute for the bill.

The substitute was withdrawn without objection.

The bill was left pending.

The committee considered H.B. 2536 in a formal meeting on
Tuesday, April 25, 1995.

The committee considered a complete substitute for the bill.

The substitute was adopted without objection.

The bill was reported favorably as substituted, with the
recommendation that it do pass and be printed and be sent to the
Committee on Local and Consent Calendars, by a record vote of 8
ayes, 0 nays, 0 pnv, 1 absent.