BILL ANALYSIS S.B. 237 By: Montford, Cain (Swinford) 4-26-95 Committee Report (Unamended) BACKGROUND In the 73rd Legislature, H.B. 2501 was passed, giving regulation of public warehouses that store non-agricultural commodities to Texas Department of Licensing & Regulation (department). The legislature intended that the department would license and regulate only those nonagricultural commodity warehouses that issue negotiable receipts. This resulted in confusion, however, because the department determined that legislative intent was for all nonagricultural commodity public warehouses, regardless of whether they issue negotiable receipts. Negotiable receipts are rarely used in the nonagricultural commodity warehouse industry, and exempting warehouses that do not issue negotiable receipts would leave less than 20 warehouses in Texas to be regulated. Proponents argue that regulation of these warehouses would not prove cost efficient or significantly benefit the department. PURPOSE As proposed, S.B. 237 repeals Article 9103, V.T.C.S., which provides for licensing and regulation of nonagricultural commodity public warehouses. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency or institution. SECTION BY SECTION ANALYSIS SECTION 1. Repealer: Article 9103, V.T.C.S. (Nonagricultural public warehouses). SECTION 2. Emergency clause. Effective date: upon passage. SUMMARY OF COMMITTEE ACTION SB 237 was heard in a Public Hearing on April 5, 1995. The Chair laid out SB 237, and recognized the House Sponsor, Rep. Swinford to explain the bill. The Chair recognized members for questions of Rep. Swinford. SB 237 was left pending in committee. There was no objection. SB 237 was considered in a Public Hearing on April 26, 1995. Rep. Kubiak moved to call up SB 237, which was pending in committee. There was no objection. The Chair laid out SB 237, and recognized Rep. Kubiak. Rep. Kubiak moved that the full committee adopt SB 237, and that it be reported favorably to the full House with the recommendation that it do pass and be printed and placed on the Local and Consent Calendar. The motion prevailed by the following vote: AYES: 9, NAYS: 0, ABSENT: 0.