BILL ANALYSIS



C.S.H.B. 2744
By: Romo
04-13-95
Committee Report (Substituted)


BACKGROUND

In 1991 the Texas Legislature passed the Omnibus Recycling Act
(S.B. 1340), which set a state goal to recycle 40 percent of the
state's municipal solid wastes by January 1, 1994.  A major
element of achieving the goal was creating incentives to increase
composting.  In 1993, the Texas Legislature approved S.B. 1051,
to decrease solid waste by creating markets for recycled products
such as compost.  Still, the state has not met its goal.

Compost is recycled waste that mainly consists of dead plant
materials such as dry leaves and grass, but may contain a variety
of elements ranging from chipped tire to sewage sludge.  Compost
may be used as a fertilizer, but must be applied in large amounts
since its nutrient concentration is considerably lower than most
commercial fertilizers. 

The Texas Feed and Fertilizer Control Service (the Service)
regulates the production of fertilizer.  Current law requires
fertilizer manufacturers to pay an inspection fee of $0.32 per
ton to cover the cost of registering fertilizers.  The inspection
fee may be applied to any substance that claims to contain
essential plant nutrients or to promote plant growth.  Such
claims would subject compost to fertilizer law requiring the
manufacturer to pay a high fertilizer inspection fee since
compost has a high moisture content resulting in a high weight to
low nutrient ratio.  Proponents of compost contend that the state
fertilizer law discourages composting and creates a market
disadvantage.


PURPOSE

This bill would exempt compost that makes no specific grade claim
from commercial fertilizer labeling and inspection fee
requirements.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does expressly grant
additional rulemaking authority to the Texas Feed and Fertilizer
Control Service in SECTION 3 [Section 63.051(e), Agriculture
Code].

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 63.001(8), Agriculture Code.  Expands
the definition of "fertilizer material" to include organic
material for which no specific grade claim is made.

SECTION 2.  Amends Section 63.051(a), Agriculture Code.  Sets
forth that Subsection (e), relating to compost, is an exception
to the provisions of this section which are related to the
labeling of commercial fertilizer.

SECTION 3.  Amends Section 63.051, Agriculture Code.  Exempts
compost that is sold without a specific grade content claim from
mandatory commercial fertilizer labeling and guaranteed content
analysis.  Requires the service to adopt rules for labeling such
compost.

SECTION 4.  Amends Section 361.421(1), Health and Safety Code.
Expands the definition of compost to include that it may be used
or sold as a fertilizer.

SECTION 5.  Effective Date: September 1, 1995.

SECTION 6.  Emergency Clause.


COMPARISON OF ORIGINAL TO SUBSTITUTE

The original legislation did not exempt compost from commercial
fertilizer labeling and inspection requirements, but did decrease
the inspection fee for compost to 25 percent of the set fee.  

The substitute exempts compost that claims no specific grade
content from the labeling and inspection requirements.  It also
authorizes the Texas Feed and Fertilizer Control Service to
develop and adopt rules for the labeling of compost.


SUMMARY OF COMMITTEE ACTION

H.B. 2744 was considered by the committee on Tuesday, March 28,
1995.

Representative Romo explained the bill.

The following persons testified in support of the bill:

     Mr. Malcolm Beck representing himself;

     Mr. A. Vance Kemler, President of and representing the Texas
Lone Star Chapter of     the Solid Waste Association of North
America and himself; and

     Mr. Jody Slagle, City of Austin Compost Manager,
representing himself.

The following persons testified against the bill:

     Mr. Durwood Tucker representing the Texas Farm Bureau;

     Mr. James Terrell representing the Texas Association of
Dairymen;

The following persons testified neutrally on the bill:

     Ms. Kitty Coley representing the Texas Natural Resource
Conservation Commission  (TNRCC);

     Mr. Allan Kimball representing the Texas General Land
Office;

     Mr. John Foseid, compost specialist, TNRCC, representing
himself; and

     Dr. George W. Latimer, Jr., State Chemist, representing the
Office of the Texas State          Chemist, Texas Agricultural
Experiment Station.

The bill was referred to a subcommittee consisting of
Representatives Rusling (Chair), Walker and Swinford.

After being recalled from subcommittee, the bill was considered
by the committee in a public hearing on Tuesday, April 4, 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 by a record vote of
6 ayes, 0 nays, 0 pnv, 3 absent.