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.