BILL ANALYSIS


                                                         S.B. 237
                                                     By: Montford
                                             Economic Development
                                                         02-08-95
                                     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 grant any
additional rulemaking authority to a state officer, institution, or
agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Repealer: Article 9103, V.T.C.S. (Nonagricultural public
warehouses).

SECTION 2. Emergency clause.
           Effective date: upon passage.