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.