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.