BILL ANALYSIS
C.S.S.B. 251
By: Bivins
Natural Resources
03-08-95
Committee Report (Substituted)
BACKGROUND
In 1939, the Texas Legislature enacted the Agricultural Protective
Act (APA) and made the Texas Department of Agriculture (department)
responsible for its administration. The APA was passed to enable
those producers and dealers selling Texas-grown fruits, vegetables,
or nuts on credit to recover their losses when they do not receive
payment from merchants and retailers to whom they have extended
credit. APA provides this protection by licensing and regulating
those who handle, buy, sell, or deal in those commodities.
Major revisions to APA in 1977 included the creation of the produce
recovery fund, a trust fund administered by the department without
appropriation and financed with annual fees paid by licensed
commissioned merchants. The department investigates all complaints
and conducts hearings. If a licensee is ordered to make payment
but does not do so, the settlement will be from the produce
recovery fund within the allowable statutory limits. The licensee
must then reimburse the fund and pay any remaining amount due to
the aggrieved party. Failure to do so will result in revocation of
the license.
PURPOSE
As proposed, C.S.S.B. 251 provides for the handling and marketing
of citrus fruits and vegetables and amends language relating to the
produce recovery fund.
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. Amends Section 101.002, Agriculture Code, by amending
Subsection (a), to make this chapter applicable to vegetables
whether or not packed in ice or held in cold storage, but only if
grown in this state.
SECTION 2. Amends Section 101.003, Agriculture Code, by adding
Subsection (c), to provide that a person who holds a license under
this section is considered, without paying an additional fee, to
hold a license or be registered under Section 102.003 of this code.
SECTION 3. Amends Section 101.004, Agriculture Code, as follows:
(a) Requires a person who is required by Section 101.003 of
this code to be licensed or registered to apply to the Texas
Department of Agriculture (department) for the appropriate
category.
(b) Requires a person to apply for a license, rather than
licensing as a commission merchant, if that person purchases
or takes possession of vegetables in a certain manner.
(c) Requires a person to register, rather than apply for
licensing, as a cash dealer. Deletes existing Subsection (d).
SECTION 4. Amends Section 101.005, Agriculture Code, to delete the
category of license for which the applicant is applying from
information required on the license or registration application
form.
SECTION 5. Amends Section 101.006, Agriculture Code, as follows:
Sec. 101.006. New heading: FEE. (a) Makes no change.
(b) Provides that the registration, rather than the license,
fee for a cash dealer is $25. Deletes existing Subsections
(c) and (d).
SECTION 6. Amends Sections 101.010(a) and (b), Agriculture Code,
to authorize a license holder to apply to the department for
identification cards. Makes conforming changes.
SECTION 7. Amends Section 101.020(a), Agriculture Code, to delete
certain acts which, if committed, create an offense. Makes
conforming changes. Makes a nonsubstantive change.
SECTION 8. Amends Section 102.003, Agriculture Code, by adding
Subsection (c), to make a conforming change.
SECTION 9. Amends Section 102.004, Agriculture Code, to make
conforming changes. Deletes existing Subsection (d).
SECTION 10. Amends Section 102.005(a), Agriculture Code, to make
conforming changes.
SECTION 11. Amends Section 102.006, Agriculture Code, as
follows:
Sec. 102.006. New heading: FEE. (a) Makes no change.
(b) Makes a conforming change. Deletes existing Subsections
(c) and (d).
SECTION 12. Amends Sections 102.010(a) and (b), Agriculture
Code, to make conforming changes.
SECTION 13. Amends Section 102.016, Agriculture Code, to require
a licensee who buys citrus fruits by weight to weigh the fruit on
state-registered scales.
SECTION 14. Amends Section 102.021(a), Agriculture Code, to make
conforming and nonsubstantive changes.
SECTION 15. Amends Section 103.005, Agriculture Code, as
follows:
Sec. 103.005. INITIATION OF CLAIM. (a) Authorizes a person
aggrieved by a violation of a contract made by a license
holder for the sale of Texas grown produce to initiate a claim
against the fund by filing a fee of $25. Makes conforming
changes.
(b) Requires a complaint and the fee to be filed within a
year of the violation or recovery is barred.
SECTION 16. Amends Section 103.0055, Agriculture Code, to make
conforming changes.
SECTION 17. Amends Section 103.006(a), Agriculture Code, to make
a conforming change.
SECTION 18. Amends Section 103.007(a), Agriculture Code, to make
a conforming change.
SECTION 19. Amends Section 103.008, Agriculture Code, by
amending Subsections (a)-(d) and adding Subsection (f), as follows:
(a) Provides that in making payments from the fund, the
department can pay the aggrieved party all of the first $1,000
of a claim and no more than 60 percent of the claim above
$1,000.
(b) Prohibits the total payment of all claims arising from the
same contract with a license holder from exceeding $20,000.
(c) Prohibits the total amount of claims against a license
holder from exceeding $50,000 in one calendar year.
(d) Prohibits the department from paying a claim against a
person who was not licensed on the date the contract on which
the claim is based was entered into, or the cash dealer
licensed under Chapter 101 or 102 of this code.
(e) Makes no change.
(f) Requires the department to offset amount owed to the fund
at the time the license holder files a claim against the fund.
SECTION 20. Amends Sections 103.009(a), (c), and (d),
Agriculture Code, to make conforming changes.
SECTION 21. Amends Section 103.010, Agriculture Code, to make
conforming changes.
SECTION 22. Amends Section 103.011, Agriculture Code, as
follows:
Sec. 103.011. FEE. (a) Makes a conforming change.
(b) and (c) Redesignate existing Subsections (d) and (e).
Makes a conforming change. Deletes existing Subsections (b)
and (c).
SECTION 23. Amends Section 103.013(a), Agriculture Code, to make
a conforming change.
SECTION 24. Provides that a license, registration, or
identification card that is issued under Chapters 101 and 102,
Agriculture Code, and is valid on the effective date of this Act
remains valid until expiration, revocation, or suspension.
SECTION 25. Effective date: September 1, 1995.
SECTION 26. Emergency clause.