BILL ANALYSIS



S.B. 372
By: Armbrister (Black)
04-27-95
Committee Report (Unamended)


BACKGROUND

The Texas Department of Agriculture was created in 1907 by the
Texas Legislature.  The Texas Department of Agriculture is
responsible for the expansion of agricultural markets, regulating
the use of agricultural chemicals, protecting consumers through
agricultural standards, and ensuring commercial goods are
properly measured, priced, and marketed.  The Texas Department of
Agriculture carries out its programs and functions through an
elected Commissioner, who directs Department activities and
program policy.  To carry out these programs, the Texas
Department of Agriculture had a budget of $24,274,180 and 524
employees for fiscal year 1994.

The Texas Department of Agriculture is subject to the Sunset Act
and will be abolished September 1, 1995 unless continued by the
Legislature.  As a result of its review of the Texas Department
of Agriculture, the Sunset Advisory Commission recommended
continuation and several statutory modifications that are
contained in this legislation.


PURPOSE

The purpose of this bill is to continue the Texas Department of
Agriculture for a 12-year  period and make statutory
modifications recommended by the Sunset Advisory Commission and
provide for other changes.  The modifications proposed by this
bill:

     -     restructure and refocus the Agriculture Resources
           Protection Authority for pesticide regulation;
     
     -     place all Texas agricultural finance programs under
           the Texas Agricultural Finance Authority and modify
           these programs;
  
     -     remove statutory fee limits and require TDA to set
           fees to recover 100 percent of the cost of regulatory
           programs;
 
     -     require biennial cost-benefit studies of agricultural
           finance programs and encourage outreach efforts;

     -     authorize TDA to privatize the official inspections
           of weighing and measuring devices;

     -     require TDA to adopt egg regulation standards that
           meet U.S. Department of Agriculture and federal Food
           and Drug Administration standards;

     -     transfer TDA's hearings function to the State Office
           of Administrative Hearings;

     -     consolidate administrative penalty provisions and
           expand the authority to other regulatory programs;

     -     change the registration schedule for pesticide
           products and exempt certain products from
           registration; and

     -     repeal obsolete regulatory programs. 


RULEMAKING AUTHORITY

It is the committee's opinion that this bill expressly grants
additional rulemaking authority to the Texas Department of 
Agriculture in the following sections of the Agriculture Code:
SECTION 2.01 - Section 12.0144, SECTION 2.02 - Section 12.018(a),
SECTION 2.03 - Section 12.021, SECTION 2.04 - Section 12.024,
SECTION 2.05 - Section 12.034, SECTION 2.06 - Sections 13.115(c)
- (f), SECTION 2.07 - Sections 13.1151(b) - (d), SECTION 2.08 -
Section 13.255(b), SECTION 2.11 - Section 14.005(b), SECTION 2.12
- Section 14.014(d), SECTION 2.13 - Section 14.107(c), SECTION
2.15 - Section 16.002(c), SECTION 2.19 - Section 18.006, SECTION
2.20 - Section 52.151(c), SECTION 2.21 - Section 53.006, SECTION
2.22 - Section 61.011(d), SECTION 2.25 - Section 64.006(a),
SECTION 2.26 - Section 71.005(c), SECTION 2.32 - Section
71.114(c), SECTION 2.33 - Section 74.090, SECTION 2.35 - Section
76.044(a), SECTION 2.41 - Section 95.034, SECTION 2.42 - Section
94.035, SECTION 2.43 - Section 101.006, SECTION 2.45 - Section
101.010(b), SECTION 2.46 - Section 102.006, SECTION 2.48 -
Section 102.010(b), SECTION 2.49 - Section 102.162, SECTION 2.50
- Section 103.005, SECTION 2.51 - Sections 103.011(a) - (c),
SECTION 2.52 - Section 121.004(c), SECTION 2.53 - Section
132.026(a), SECTION 2.54 - Section 132.027(a), SECTION 2.55 -
Section 132.028, SECTION 2.56 - Sections 132.043(a) and (b),
SECTION 2.57 - Section 134.014, SECTION 2.58 - Section
134.015(b), SECTION 3.01 - Section 12.032, SECTION 4.04 - Chapter
13, Subchapter H, Sections 13.403 and 13.404, SECTION 4.05 -
Section 13.1012(f) and (g), SECTION 6.03 - Section 76.043(a),
SECTION 8.01 - Section 12.033; and to the Texas Agricultural
Finance Authority in SECTION 5.07 - Section 44.007(j); the
Agriculture Resources Protection Authority in SECTION 6.01 -
Sections 76.009(k); and the State Office of Administrative
Hearings in SECTION 3.01 - Section 12.032(a).


SECTION BY SECTION ANALYSIS

                  ARTICLE 1. GENERAL PROVISIONS
                         Agriculture Code
 
     SECTION 1.01.  Amends Section 11.008.  Updates standard
language developed by the Sunset Commission. Requires the
department's funds to be managed in accordance with the State
Funds Reform Act.

     SECTION 1.02.  Amends Section 12.013.

     (a)  No change.
 
     (b)  Updates standard language developed by the Sunset
Commission. Requires the commissioner or a designee to develop a
system of annual performance evaluations based on documented
employee performance and upon which merit salary increases must
be based.

     (c)  Updates standard language developed by the Sunset
Commission. Requires the commissioner or a designee to develop an
intraagency career ladder program that addresses mobility and
advancement opportunities for employees within the department and
requires intraagency postings of job openings concurrently with
any public posting.

     (d) and (e)  Updates standard language developed by the
Sunset Commission. Requires the commissioner or a designee to
develop an equal employment policy that is annually updated,
reviewed by the Texas Commission on Human Rights, and filed with
the governor's office. 

     (f)  No change.

     SECTION 1.03.  Amends Section 12.016.  Authorizes the
department to adopt rules for all Agriculture Code chapters
administered by TDA.
 
     SECTION 1.04.  Amends Chapter 12, by adding Sections 12.0201
and 12.0202.

     Section 12.0201.  Adds standard language developed by the
Sunset Commission. Requires the department to use a full range of
penalties, such as reprimand, suspension or revocation, for
violations of state laws or agency rules.  

     Section 12.0202.  Adds standard language developed by the
Sunset Commission. Entitles licensees to a hearing conducted by
the State Office of Administrative Hearings before any sanction
may be taken against their license.

     SECTION 1.05.  Amends Section 12.023.  Updates standard
language developed by the Sunset Commission. Authorizes the
department to adopt a staggered license renewal system.

     SECTION 1.06.  Amends Section 12.025.  Updates standard
language developed by the Sunset Commission. Requires the
department to comply with state and federal program and facility
accessibility laws and requires the commissioner to develop a
plan that describes how non-English speaking persons can be
provided reasonable access to the department's programs and
services.

     SECTION 1.07.  Amends Sections 12.026(c) and (d).

     (c)  Updates standard language developed by the Sunset
Commission. Requires the department to collect and maintain
information about all complaints filed with the department.

     (d)  Updates standard language developed by the Sunset
Commission. Requires the department to maintain files on written
complaints that the department has the authority to resolve and
to notify the parties regarding the status of the complaint
quarterly until disposition.

     SECTION 1.08.  Amends Chapter 12, by adding Section 12.0261. 
Adds standard language developed by the Sunset Commission.
Requires the department to comply with the administrative
procedure law.

     SECTION 1.09.  Amends Chapter 12, by adding Sections 12.035,
12.036, and 12.037. 

     Section 12.035.  Adds standard language developed by the
Sunset Commission. Requires the department to notify license
applicants of licensing examination results within a reasonable
time of the examination date.

     Section 12.036.  Adds standard language developed by the
Sunset Commission. Authorizes the department to waive any
prerequisite license requirements and grant a license to an
applicant with a valid license from another state that has
license requirements substantially equivalent to those of this
state.

     Section 12.037.  Adds language developed by the Sunset
Commission.  Authorizes the department to develop and administer
continuing education programs for licensees.

     SECTION 1.10.  Amends Section 14.015(a).  Authorizes the
department to deny license renewal for the same reasons as the
denial of the initial license.
  
     SECTION 1.11.  Amends Section 52.085.  Requires marketing
associations that allow a member association or group to have
more than one vote to be subject to Section 52.012(a)(2),
Agriculture Code. 

     SECTION 1.12.  Amends Section 58.012, by adding Subsection
(f).  Adds standard language developed by the Sunset Commission.
Requires appointments to the Texas Agricultural Finance Authority
(TAFA) board be made without regard to race, color, disability,
sex, religion, age or national origin.

     SECTION 1.13.  Amends Section 58.013(a).  Updates standard
language developed by the Sunset Commission. Requires the
governor to designate the chairman of the TAFA board.

     SECTION 1.14.  Makes technical change to Section 58.014
header.

     SECTION 1.15.  Amends Section 58.014, by adding Subsections
(c) and (d).  

     (c)  Adds standard language developed by the Sunset
Commission. Requires the TAFA board to give the public reasonable
opportunity to appear before it regarding issues under the
jurisdiction of the board.

     (d)  Adds standard language developed by the Sunset
Commission. Requires the TAFA board to comply with the open
meetings and administrative procedure laws.

     SECTION 1.16.  Amends Chapter 58, by adding Sections
58.0172, 58.0173, 58.0174, 58.0175, and 58.0176.

     Section 58.0172.  Adds standard language developed by the
Sunset Commission. Prohibits  TAFA board members or their spouses
from being an officer of an agriculture-related Texas trade
association. Also defines Texas trade association. Prohibits
registered lobbyists from serving as a member of the TAFA board
or from being employed as the board's general counsel.

     Section 58.0173.  Adds standard language developed by the
Sunset Commission. Defines the grounds for removing a TAFA board
member and requires notification of the board's chairman, the
governor and the attorney general if knowledge that a potential
ground for removal exists.  Affirms that an action of the board
is valid even if it is taken when a ground for removal exists for
one of the members.

     Section 58.0174.  Adds standard language developed by the
Sunset Commission. Requires the commissioner or a designee to
inform TAFA board members of the qualifications for office and
each person's responsibilities under the law.

     Section 58.0175. Adds standard language developed by the
Sunset Commission. Requires the TAFA board to clearly separate
its policymaking responsibilities from the management
responsibilities of the commissioner and staff of the department.

     Section 58.0176.  Adds standard language developed by the
Sunset Commission. Requires the TAFA board members to be provided
with information and training about the laws, rules, and budgets
of the programs TAFA administers prior to assuming their duties
and being confirmed by the senate.

     SECTION 1.17.  Amends Section 62.002, by amending Subsection
(d) and adding Subsection (e).

     (d)  Adds standard language developed by the Sunset
Commission. Requires the governor to designate the chairman of
the State Seed and Plant Board (SSP Board). 

     (e)  Adds standard language developed by the Sunset
Commission. Requires appointments to the SSP Board be made
without regard to race, color, disability, sex, religion, age or
national origin.

     SECTION 1.18.  Amends Chapter 62, by adding Sections
62.0022, 62.0023, 62.0024, 62.0025, 62.0026, and 62.0027.

     Section 62.0022.  Adds standard language developed by the
Sunset Commission. Prohibits SSP Board members or their spouses
from being an officer of an agriculture-related Texas trade
association. Also defines Texas trade association. Prohibits
registered lobbyists from serving as a member of the SSP Board or
from being employed as the board's general counsel. 

     Section 62.0023.  Adds standard language developed by the
Sunset Commission.  Defines the grounds for removing SSP Board
member and requires notification of the board's chairman, the
governor and the attorney general if knowledge that a potential
ground for removal exists.  Affirms that an action of the board
is valid even if it is taken when a ground for removal exists for
one of the members.

     Section 62.0024.  Adds standard language developed by the
Sunset Commission. Requires the commissioner or a designee to
inform SSP Board members of the qualifications for office  and
each person's responsibilities under the law.

     Section 62.0025.  Adds standard language developed by the
Sunset Commission. Requires the SSP Board to give the public
reasonable opportunity to appear before it regarding issues under
the jurisdiction of the board. Requires the SSP Board to comply
with the open meetings and administrative procedures laws.

     Section 62.0026.  Adds standard language developed by the
Sunset Commission.  Requires the SSP Board to clearly separate
its policymaking responsibilities from the management
responsibilities of the commissioner and staff of the department.

     Section 62.0027.  Adds standard language developed by the
Sunset Commission. Requires the SSP Board members to be provided
with adequate information and training to perform their duties
prior to assuming their duties and being confirmed by the senate.

     SECTION 1.19.  Amends Section 62.0065(a).  Updates standard
language developed by the Sunset Commission. Specifies that the
SSP Board may require a testing service to notify license
applicants of licensing examination results.
 
     SECTION 1.20.  Amends Sections 76.110(b) and (d).  

     (b)  Updates standard language developed by the Sunset
Commission. Specifies that the appropriate regulatory agency may
require a testing service to notify (pesticide) license
applicants of licensing examination results.

     (d)  Updates standard language developed by the Sunset
Commission. Authorizes the appropriate regulatory agency to waive
any (pesticide) license requirements and grant a license to an
applicant with a valid license from another state that has
license requirements substantially equivalent to those of this
state.

     SECTION 1.21.  Amends Section 103.003, by adding Subsections
(e) - (g).

     (e)  Adds standard language developed by the Sunset
Commission. Requires appointments to the Produce Recovery Fund
Board (PRF Board) be made without regard to race, color,
disability, sex, religion, age or national origin. 

     (f)  Adds standard language developed by the Sunset
Commission.  Requires the governor to designate the chairman of
the PRF Board.

     (g)  Adds standard language developed by the Sunset
Commission. Requires the PRF Board to comply with the open
meetings and administrative procedures laws.

     SECTION 1.22.  Amends Section 103.004.  

     (a)  Reletters Subsection.

     (b)  Adds standard language developed by the Sunset
Commission. Requires the PRF Board to give the public reasonable
opportunity to appear before it regarding issues under the
jurisdiction of the board. 

     (c)  Adds standard language developed by the Sunset
Commission. Requires the PRF Board to clearly separate its
policymaking responsibilities from the management
responsibilities of the commissioner and staff of the department.

     SECTION 1.23.  Amends Chapter 103, by adding Sections
103.016, 103.017, 103.018 and 103.019.

     Section 103.016.  Adds standard language developed by the
Sunset Commission. Prohibits PRF Board members or their spouses
from being an officer of an agriculture-related Texas trade
association. Also defines Texas trade association. Prohibits
registered lobbyists from serving as a member of the PRF Board or
from being employed as the board's general counsel.

     Section 103.017.  Adds standard language developed by the
Sunset Commission. Defines the grounds for removing a PRF Board
member and requires notification of the board's chairman, the
governor and the attorney general if knowledge that a potential
ground for removal exists.  Affirms that an action of the board
is valid even if it is taken when a ground for removal exists for
one of the members.

     Section 103.018.  Adds standard language developed by the
Sunset Commission. Requires the commissioner or a designee to
inform PRF Board members of the qualifications for office and
each person's responsibilities under the law.

     Section 103.019.  Adds standard language developed by the
Sunset Commission.  Requires the PRF Board members to be provided
with adequate information and training to perform their duties
prior to assuming their duties and being confirmed by the senate.

                         ARTICLE 2. FEES
                         Agriculture Code

     SECTION 2.01.  Amends Chapter 12, by adding Section 12.0144. 
Requires the department to adopt a fee schedule by rule. Requires
that, except those programs exempted by the General Appropriation
Act, each fee be set at a level that offsets the department's
costs of administering its regulatory activities.

     SECTION 2.02.  Amends Sections 12.018(a) and (c).  Deletes
the aflatoxin testing fee limits and requires the department to
set the fee by rule.

     SECTION 2.03.  Amends Section 12.021.  Deletes the
phytosanitation certification fee limit and authorizes the
department to set the fee by rule.

     SECTION 2.04.  Amends Section 12.024.  Adds standard
language developed by the Sunset Commission. Establishes a method
for license renewal and a time-frame and penalty structure for
delinquent renewals. Deletes fee schedule language and requires
the department to set the fee by rule. Makes all department
licenses subject to the renewal process.

     SECTION 2.05.  Amends Chapter 12, by adding Section 12.034. 
Authorizes the department, by rule, to provide for the full or
partial refund of fees collected by the department.

     SECTION 2.06.  Amends Sections 13.115(c) - (f).  Deletes the
tolerance and precision testing fee amounts for weights,
measures, and other measuring devices and requires the department
to set the fees by rule.

     SECTION 2.07.  Amends Sections 13.1151(b) - (d).  Deletes
the registration  fee amounts for gas pumps, scales, and
liquified petroleum gas (LPG) meters and requires the department
to set the fees by rule.  

     SECTION 2.08.  Amends Section 13.255(b).  Deletes the state,
county, and deputy public weigher fee amounts and requires the
department to set the fees by rule. Authorizes fee refund for
deputy and county public weighers.

     SECTION 2.09.  Amends Sections 13.304(a) and (b).  Deletes
the LPG meter inspector license and renewal fee limits.
Authorizes fee refund.

     SECTION 2.10.  Amends Sections 13.354(a) and (b).  Deletes
the ranch scale inspector license and renewal fee limits.
Authorizes fee refund.

     SECTION 2.11.  Amends Section 14.005(b).  Deletes the public
grain warehouse license fee amount and requires the department to
set the fee by rule. Authorizes fee refund.

     SECTION 2.12.  Amends Section 14.014(d).  Deletes the public
grain warehouse inspection fee amount and requires the department
to set the fee by rule.

     SECTION 2.13.  Amends Section 14.107(c).  Deletes the
agriculture warehouse corporation certificate of qualification
filing fee amount and requires the department to set the fee by
rule.

     SECTION 2.14.  Amends Section 14.118(c).  Deletes the
agriculture warehouse corporation examination fee limits.

     SECTION 2.15.  Amends Section 16.002(c).  Deletes the
antifreeze registration fee amount and requires the department to
set the fee by rule. Also, eliminates the requirement for renewal
each December.

     SECTION 2.16.  Amends Section 17.008.  Deletes limits on the
fuel alcohol equipment registration and renewal fees.

     SECTION 2.17.  Amends Section 18.003(b).  Authorizes the
refund of the organic certification fee.

     SECTION 2.18.  Amends Section 18.004(b).  Authorizes the
refund of the organic certificate of accreditation fee.

     SECTION 2.19.  Amends Section 18.006.  Deletes the organics
licenses fee limits and requires the department to set the fees
by rule.

     SECTION 2.20.  Amends Section 52.151(c).  Deletes the
marketing association license fee amount and requires the
department to set the fee by rule.  

     SECTION 2.21.  Amends Section 53.006.  Deletes the financial
pool certificate of authority fee amount and requires the
department to set the fee by rule.

     SECTION 2.22.  Amends Section 61.011(d).  Deletes the
agricultural seed inspection late filing penalty fee limit and
requires the department to set the penalty fee by rule.

     SECTION 2.23.  Amends Section 62.005(d).  Deletes the
Foundation, Registered, and Certified producer of seed or plants
license fee limits. Authorizes fee refund.

     SECTION 2.24.  Amends Section 62.006(a).  Deletes plant
breeder registration fee limit and requires the State Seed and
Plant Board to determine the registration fee. Authorizes fee
refund.

     SECTION 2.25.  Amends Section 64.006(a).  Deletes the seed
arbitration filing fee amount and requires the department to set
the fee by rule. Authorizes fee refund. 

     SECTION 2.26.  Amends Section 71.005(c).  Deletes the limit
on the inspection fee required for the movement of plants to or
from quarantined areas and authorizes the department to set the
fee by rule.

     SECTION 2.27.  Amends Section 71.043(b).  Authorizes refund
of the nursery and floral registration fee.

     SECTION 2.28.  Amends Section 71.050(a).  Limits the
inspection requirement for nursery and floral products to those
products that other states and foreign countries require to be
inspected before export.

     SECTION 2.29.  Amends Section 71.051(c) and (d).  Strikes
the existing language in Subsection (c) that requires the
department to establish a Texas Importation Certificate which
allows a person, certified by another state, to ship nursery and
floral products into this state. Moves the existing language in
Subsection (d) to (c) and eliminates reference to the Texas
Importation Certificate.

     SECTION 2.30.  Amends Section 71.056(a).  Requires the
department to collect a fee for nursery and floral inspections,
rather than importation certificates, when the inspection is
required by foreign countries or other states.

     SECTION 2.31. Amends Section 71.057(e).  Authorizes refund
of the nursery dealer registration fee.

     SECTION 2.32.  Amends Sections 71.114(b) and (c).  Deletes
the plant inspection and sweet potato certificate and stamp fee
limits and requires the department to set the fees by rule.

     SECTION 2.33.  Amends Section 74.090.  Deletes the cotton
escrow account fee limit and requires the department to set the
fee by rule.

     SECTION 2.34.  Amends Section 75.004(d).  Deletes the
herbicide dealer license fee limit.

     SECTION 2.35.  Amends Section 76.044(a).  Deletes the
pesticide registration fee amount and requires the department to
set the fee by rule. Authorizes fee refund.

     SECTION 2.36.  Amends Section 76.073(a).  Deletes the
pesticide dealer registration fee limit. Authorizes fee refund.

     SECTION 2.37.  Amends Section 76.106(c).  Deletes the
pesticide applicator testing fee limit and authorizes the head of
the regulatory agency to set the fee. Authorizes fee refund.

     SECTION 2.38.  Amends Section 76.108(b).  Deletes the
pesticide commercial applicator fee limit. Authorizes fee refund.

     SECTION 2.39.  Amends Section 76.109(b).  Deletes the
pesticide noncommercial applicator fee limit. Authorizes fee
refund.

     SECTION 2.40.  Amends Section 76.112(e).  Deletes the
pesticide private applicator fee limit and requires the head of
the regulatory agency to set the fee. Authorizes fee refund.

     SECTION 2.41.  Amends Section 95.034.  Deletes the citrus
coloring inspection fee limit and requires the department to set
the fee by rule.

     SECTION 2.42.  Amends Section 94.035.  Deletes the citrus
seller and shipper inspection  fee limits and requires the
department to set the fees by rule.

     SECTION 2.43.  Amends Section 101.006.  Deletes the license
fee amounts for  vegetable dealer licenses and cash dealer
licenses and requires the department to set the fees by rule.
Deletes the license fee amount for a combined vegetable and
citrus dealer license and requires the department to set the fees
by rule. Authorizes fee refunds.

     SECTION 2.44.  Amends Section 101.008(c).  Deletes vegetable
dealer late renewal fee amount and requires the department to set
the fee as provided by Section 12.024 of the Agriculture Code.

     SECTION 2.45.  Amends Section 101.010(b).  Deletes the
vegetable merchant and retailer identification card fee limit and
requires the department to set the fee by rule.

     SECTION 2.46.  Amends Section 102.006.  Deletes the license
fee amounts for citrus fruit dealer licenses and cash dealer
licenses and requires the department to set the fees by rule.
Deletes the license fee amount for a combined vegetable and
citrus dealer license and requires the department to set the fees
by rule. Authorizes fee refunds.

     SECTION 2.47.  Amends Section 102.008(c).  Deletes the
citrus dealer late renewal fee limits and requires the department
to set the fee as provided by Section 12.024 of the Agriculture
Code.

     SECTION 2.48.  Amends Section 102.010(b).  Deletes citrus
merchant and retailer identification card fee limit and requires
the department to set the fee by rule.

     SECTION 2.49.  Amends Section 102.162.  Deletes the citrus
marketing agreement filing fee amount and requires the department
to set the fee by rule.

     SECTION 2.50.  Amends Section 103.005.  Deletes the Produce
Recovery Fund claim filing fee amount and requires the department
to set the fee by rule. 

     SECTION 2.51.  Amends Sections 103.011(a) - (c).  Deletes
the citrus and vegetable merchant and retailer Produce Recovery
Fund fee amounts and requires the department to set the fee by
rule.

     SECTION 2.52.  Amends Section 121.004(c).  Deletes rose
plant certificate of authority fee limits and requires the
department to set the fee by rule.

     SECTION 2.53.  Amends Section 132.026(a).  Deletes language
referring to a fee schedule for egg dealer-wholesaler licenses
and requires the department to set the fee by rule.

     SECTION 2.54.  Amends Section 132.027(a).  Deletes language
referring to a fee schedule for egg processor licenses and
requires the department to set the fee by rule.

     SECTION 2.55.  Amends Section 132.028.  Deletes the egg
broker fee amount and requires the department to set the fee by
rule. 

     SECTION 2.56.  Amends Sections 132.043(a) and (b).  Deletes
the egg producer and processor inspection fee amounts and
requires the department to set the fees by rule.

     SECTION 2.57.  Amends Section 134.014.  Deletes the
aquaculture and fish farm vehicle license fee limits and requires
the department to set the fees by rule.

     SECTION 2.58.  Amends Section 134.015(b).  Deletes the
aquaculture and fish farm vehicle renewal fee limit and requires
the department to set the fee by rule.

                       ARTICLE 3. HEARINGS
                         Agriculture Code

     SECTION 3.01.  Amends Chapter 12, by adding Section 12.032. 
Requires the commissioner and the chief administrative law judge
of the State Office of Administrative Hearings (SOAH) to develop
a memorandum of understanding (MOU) through which SOAH will
conduct hearings for the department. Requires the MOU to require
that hearings be held in mutually agreeable locations. Requires
the department to pay for the costs of hearings either by hourly
or fixed annual fee. Exempts produce recovery fund hearings from
the transfer.

     SECTION 3.02.  Amends Section 12.020.  Modifies language
concerning hearings on proposed administrative penalties against
department licensees to require that the hearings be conducted by
SOAH. Requires administrative proceedings to comply with the
constitutional right to judicial review. Updates references to
the state Administrative Procedure Act (APA). Authorizes the
commissioner to review and modify findings by administrative law
judges. Authorizes a $500 administrative penalty for the
regulation of organics (Chapter 18), citrus standards (Chapter
94), citrus coloring (Chapter 95), rose grading (Chapter 121),
farm worker right-to-know (Chapter 125), and aquaculture (Chapter
134). Expands this section to also include administrative
penalties for pesticides (Chapter 76), and herbicides (Chapter
75). 
     
     SECTION 3.03.  Amends Section 13.2555(c).  Modifies language
concerning hearings on proposed sanctions against a certified
public weigher to require that the hearings be conducted by SOAH.
Also, updates references to APA.

     SECTION 3.04.  Amends Section 13.306(d).  Modifies language
concerning hearings on proposed sanctions against a liquid
petroleum gas meter inspector to require that the hearings be
conducted by SOAH. Also, updates references to APA.

     SECTION 3.05.  Amends Section 13.356(d).  Modifies language
concerning hearings on proposed sanctions against a ranch scale
inspector to require that the hearings be conducted by SOAH.
Also, updates references to APA.

     SECTION 3.06.  Amends Section 14.003(b).  Modifies language
concerning hearings related to public warehouse regulation to
require that the hearings be conducted by SOAH. 

     SECTION 3.07.  Amends Section 14.015(e).  Modifies language
concerning hearings on proposed sanctions against a public
warehouse licensee to require that the hearings be conducted by
SOAH. Also, updates references to APA.

     SECTION 3.08.  Amends Section 61.0135(c).  Modifies language
concerning hearings on proposed sanctions against a vegetable
seed licensee to require that the hearings be conducted by SOAH.
Also, updates references to APA.

     SECTION 3.09.  Amends Section 62.010(d).  Modifies language
concerning hearings on proposed sanctions against plant breeders
and seed producers to require that the hearings be conducted by
SOAH.

     SECTION 3.10.  Amends Section 75.0055(c).  Modifies language
concerning hearings on proposed sanctions against a herbicide
dealer to require that the hearings be conducted by SOAH. Also,
updates references to APA.

     SECTION 3.11.  Amends Section 75.021(f).  Updates reference
to APA.

     SECTION 3.12.  Amends Section 75.022(c).  Makes technical
change to reference regarding herbicide administrative penalties.

     SECTION 3.13.  Amends Section 76.047(a).  Modifies language
concerning hearings on proposed sanctions against pesticide
registration to require that the hearings be conducted by SOAH.

     SECTION 3.14.  Amends Section 76.076(d).  Modifies language
concerning hearings on proposed sanctions against a pesticide
dealer to require that the hearings be conducted by SOAH. Also,
updates references to APA.

     SECTION 3.15.  Amends Section 76.116, by amending Subsection
(d) and adding Subsection (e).  

     (d)  Technical change.

     (e)  Specifies that, when action is proposed against a
license or certificate, a person is entitled to a hearing under
Section 12.032.

     SECTION 3.16.  Amends Section 76.1555.  Modifies language
concerning hearings on proposed penalties related to pesticide
and herbicide regulation to require that the hearings be
conducted by SOAH. Also, updates references to APA. Strikes
separate administrative penalty language so general provisions
apply.

     SECTION 3.17.  Amends Section 76.181(a).  Updates reference
to APA.

     SECTION 3.18.  Amends Section 76.182(a).  Updates reference
to APA.

     SECTION 3.19.  Amends Section 96.005.  Modifies language
concerning hearings on proposed sanctions against a grain sampler
to require that the hearings be conducted by SOAH.

     SECTION 3.20.  Amends Section 101.007(d).  Modifies language
concerning hearings on the refusal of an application for a
vegetable dealer license to require that the hearings be
conducted by SOAH. Also, updates references to APA.

      SECTION 3.21.  Amends Section 101.012(c).  Modifies
language concerning hearings on proposed sanctions against a
vegetable dealer to require that the hearings be conducted by
SOAH. Also, updates references to APA.

     SECTION 3.22.  Amends Section 102.007(d).  Modifies language
concerning hearings on the refusal of an application for a citrus
dealer license to require that the hearings be conducted by SOAH.
Also, updates references to APA.

     SECTION 3.23.  Amends Section 102.012(c).  Modifies language
concerning hearings on proposed sanctions against a citrus dealer
to require that the hearings be conducted by SOAH. Also, updates
references to APA.

     SECTION 3.24.  Amends Section 103.006(b).  Updates reference
to APA.

     SECTION 3.25.  Amends Section 125.005(f).  Modifies language
concerning hearings on right-to-know workplace chemical lists
violations to require that the hearings be conducted by SOAH.

     SECTION 3.26.  Amends Sections 125.016(c),(d) and (h).  

     (c)  Modifies language concerning hearings on right-to-know
complaints to require that the hearings be conducted by SOAH. 

     (d)  Deletes specific administrative penalty authority for
right-to-know violations so that provisions in the general
administrative penalty authority apply. Also, updates references
to APA.

     (h)  Specifies that civil or criminal penalty actions must
be brought in the county the alleged violation occurred.

     SECTION 3.27.  Amends Section 132.072(c).  Modifies language
concerning hearings on proposed sanctions against an egg dealer
to require that the hearings be conducted by SOAH. Also, updates
references to APA.

     SECTION 3.28.  Amends Section 252.028(c).  Removes language
requiring the commissioner to conduct hearings on loan defaults
to allow hearings to be conducted by SOAH. Updates reference to
APA.

     SECTION 3.29.  Amends Section 2003.021, Government Code, by
adding Subsection (d).  Requires SOAH to conduct hearings under
Section 12.032 of the Agriculture Code with consideration of the
substantive rules and policies of the department.
                                 
                 ARTICLE 4. WEIGHTS AND MEASURES
                         Agriculture Code

     SECTION 4.01.  Amends Section 13.002, Agriculture Code. 
Requires the department to enter into interagency contracts for
weights and measures inspections when practical and cost
effective. Reletters Subsection.

     SECTION 4.02.  Amends Section 13.110(a).  Allows, rather
than requires, state, county  or local sealers to perform
official department inspections.

     SECTION 4.03.  Amends Section 13.111, by adding Subsections
(c) and (d).  

     (c)  Requires licensed inspectors to offer to repair
inaccurate weighing and measuring devices before taking the
devices out of service. Allows an inspector to collect a fee for
the repair. 

     (d)  Requires private inspectors, including liquid petroleum
gas meter inspectors and ranch scale inspectors, to provide one
reinspection after failed inspection without charge. Requires
private inspectors to provide the customer with a written
estimate of the cost of repair of the device.  

     SECTION 4.04.  Amends Chapter 13, by adding Subchapter H. 
Authorizes the department to license individuals to perform
official inspections of weighing and measuring devices. Licensees
are authorized to perform the powers and duties of sealers except
the authority related to the testing of a package, peace officer
status, entering premises, or conducting a stop. Also authorizes
licensed inspectors to inspect and test liquid petroleum gas
meters and ranch scales. Allows the licensed inspector to collect
a fee, established by department rule, for its services. Provides
penalties.

     SECTION 4.05.  Amends Subchapter C, Chapter 13, by adding
Section 13.1012.  Prohibits persons from installing a weighing
and measuring device or removing an out-of-order tag from a
device unless registered with the department. Authorizes the
department to establish a registration process, including
requirements for registration and reporting, and registration
fees.

  ARTICLE 5. OPERATIONS OF TEXAS AGRICULTURE FINANCE AUTHORITY 
                         Agriculture Code

     SECTION 5.01.  Amends Section 44.001(7).  Makes technical
change to definition.
 
     SECTION 5.02.  Amends Section 44.002.  Transfers the
authority to operate agricultural diversification finance
programs to the Texas Agricultural Finance Authority (TAFA)
board.

     SECTION 5.03.  Amends Sections 44.004(a) and (d).  Transfers
the authority to operate  the part of the diversification grant
program that supports research and innovation to the TAFA board.

     SECTION 5.04.  Amends Sections 44.0045(a) and (d). 
Transfers the authority to operate the microenterprise loan
program to the TAFA board.

     SECTION 5.05.  Amends Sections 44.005(a) and (d).  Transfers
the authority to operate the part of the diversification grant
program that increases training and assistance to new, expanding
businesses to the TAFA board.

     SECTION 5.06.  Amends Sections 44.006(a) and (d).  Transfers
the authority to operate the part of the diversification grant
program that supports small business incubators to the TAFA
board.

     SECTION 5.07.  Amends Section 44.007.  Transfers the
authority to establish and operate the linked deposit program to
the TAFA board. Allows the board to adopt rules that determine
priorities for making loans.

     SECTION 5.08.  Amends Section 44.008.  Transfers linked
deposit program-related compliance monitoring provisions to the
TAFA board.

     SECTION 5.09.  Amends Section 44.011.  Transfers grant
evaluation duties to the TAFA board.

     SECTION 5.10.  Amends Section 44.012.  Transfers the
authority to accept gifts and  grants for agricultural finance
programs to the TAFA board.

     SECTION 5.11.  Amends Section 58.012(a).  Modifies the
composition of the TAFA board.

     SECTION 5.12.  Amends Section 58.015.  Removes the
requirement that a majority of TAFA members approve the hiring of
staff, allowing the application of standard voting and approval
procedures.

     SECTION 5.13.  Amends Section 58.016(b).  Requires the TAFA
board to approve the annual budgets of the finance program funds
it operates and prohibits expenditures without an approved
budget.

     SECTION 5.14.  Amends Subchapter B, Chapter 58, by adding
Section 58.017.  Requires the TAFA board to conduct biennial
cost-benefit studies of the authority's active and inactive
programs. Requires the study to be reported to the state auditor.
Requires the state auditor to review the report and comment on
the authority's methodology. Requires the report and comments be
sent to the governor and the presiding officers of each
legislative house. Requires the state auditor to assist the
department in the preparation of this report.  

     SECTION 5.15.  Amends Subchapter B, Chapter 58, by adding
Section 58.0171.  Requires the department to give the TAFA board
sufficient opportunity to review and comment on the finance
program-related parts of the strategic plan and the legislative
appropriation request before submission to the legislature.

     SECTION 5.16.  Amends Subchapter B, Chapter 58, by adding
Section 58.0177.  Requires TAFA to provide financial training for
appointed members of the TAFA board.

     SECTION 5.17.  Amends Section 58.021(c).  Lowers aggregate
allowable loan limits. 

     SECTION 5.18.  Amends Subchapter C, Chapter 58, by adding
Section 58.0211.  Requires two-thirds vote of approval by the
board for a loan to a business with an existing active loan.
Specifies the authority's preference for loans to value-added
businesses. Limits guarantees to 90 percent of the loan.

      ARTICLE 6. AGRICULTURE RESOURCES PROTECTION AUTHORITY
                         Agriculture Code

     SECTION 6.01.  Amends Section 76.009.  Restructures
composition of the Agriculture Resources Protection Authority
(ARPA). Requires the governor to designate the chair of the ARPA
board. Removes the requirement that actions be approved by a
majority of the total membership. Allows a designee to represent
a member of ARPA. Removes ARPA's authority to approve agency
rules and hear appeals of agency orders or enforcement actions.
Authorizes ARPA to review and make comments on agency pesticide
rules. Requires ARPA to develop policies that allow the public to
appear before the authority semiannually and comment on the
state's pesticide regulation efforts. Requires agencies subject
to ARPA oversight to submit quarterly reports to ARPA for review
and comment on the strategic plans, pesticide enforcement data,
and the latest legislative appropriation request.

     SECTION 6.02.  Amends Section 76.041, by amending Subsection
(a) and adding Subsection (d).  

     (a)  Makes technical change by adding new Subsection (d).

     (d)  Specifies that pesticide products are not required to
register, unless required by department rule, if the product is
exempt from registration by the U.S. Environmental Protection
Agency.

     SECTION 6.03.  Amends Sections 76.043(a) and (c).  Changes
the pesticide product registration program to a biennial
registration with staggered renewal.
 
                    ARTICLE 7. EGG REGULATION
                         Agriculture Code

     SECTION 7.01.  Amends Section 132.003.  Deletes obsolete
provisions requiring statistical reporting and rule approval by
the attorney general.

     SECTION 7.02.  Amends Section 132.004.  Requires the
department's egg inspection and regulation standards be at least
equal to the United States Department of Agriculture and the
federal Food and Drug Administration.

     SECTION 7.03.  Amends Subchapter A, Chapter 132, by adding
Section 132.008.  Requires the department to establish a
memorandum of understanding with the Texas Department of Health
regarding egg regulation.

     SECTION 7.04.  Amends Section 132.021(b).  Exempts retailers
from egg license requirements.

                ARTICLE 8. LICENSE CONSOLIDATION 
                         Agriculture Code

     SECTION 8.01.  Amends Chapter 12, by adding Section 12.033. 
Authorizes the department to issue consolidated licenses to
grocers and combine the fees and inspections required by each
component license.  

              ARTICLE 9. CONTINUATION OF DEPARTMENT
                         Agriculture Code

     SECTION 9.01.  Amends Section 11.003.  Updates the
department's sunset review date to September 1, 2007, which
provides for the usual 12-year review.
  
  ARTICLE 10. TRANSITION PROVISIONS; REPEALER; EFFECTIVE DATE;
                           EMERGENCY
                         Agriculture Code
     SECTION 10.01.  Provides that changes made by this bill
relating to fees only apply to fees that become due on or after
September 1, 1996.

     SECTION 10.02.  Provides that changes made by this bill
relating to administrative hearings conducted by State Office of
Administrative Hearings only apply to hearings that begin on or
after January 1, 1996. The commissioner and chief administrative
law judge may agree to transfer hearings pending before the
department on January 1, 1996.

     SECTION 10.03.  Requires the department to demonstrate to
the Legislative Budget Board that performance goals for the
liquid petroleum gas meter and ranch scale inspector licensing
programs will be attained before developing the licensed
inspector program, established by SECTION 4.04 of this bill, and
expanding privatized inspections to other weighing and measuring
devices.

     SECTION 10.04.  Requires the Agriculture Resources
Protection Authority (ARPA) to study the consistency of penalties
in pesticide enforcement matters among the Texas Department of
Agriculture, State Soil and Water Conservation Board, Texas
Agricultural Extension Service, Texas Department of Health, Texas
Natural Resources Conservation Commission, and the Texas
Structural Pest Control Board. Requires the ARPA board to file a
report with the governor, the lieutenant governor, and the
speaker regarding ARPA's plan to make the use of penalties in
pesticide enforcement matters consistent among the agencies
studied by ARPA. 

     SECTION 10.05.  Provides that registration of a pesticide on
the effective date of this bill remain in effect until expiration
or revocation.

     SECTION 10.06.  Provides that changes made by this bill
relating to collection of administrative penalties only apply to
actions commenced on or after the effective date of this bill.

     SECTION 10.07.  Provides that changes made by this bill
relating to requirements for members of ARPA and Texas
Agriculture Finance Authority (TAFA) only apply to appointments
on or after the effective date of this bill. Requires the
governor to make appointments to the ARPA board, as terms expire
or vacancies occur, according to the membership plans prescribed
by the Agriculture Code, as amended by this bill. Requires the
governor to make appointments for newly created  members of the
board soon after the effective date of this bill.   

     SECTION 10.08.  Provides that changes made by this bill
relating to TAFA loan limits only apply if S.J.R. 51, H.J.R. 92
or similar legislation fail.  If either of these constitutional
amendments pass and are approved by the voters, the changes made
by SECTION 5.17 of this bill have no effect.

     SECTION 10.09.  Repeals statutes, as follows:

           (1) Repeals authority to create agencies for sale
               of agricultural products;

           (2) Repeals provision related to the competitive
           cost review program;

           (3) Repeals the authority for the office of chief
               deputy of weights and measures;

           (4) Repeals standards for packaged weight of
           processed grain products;
           
           (5) Repeals provisions specifying department
               activity in testing the accuracy of raw milk
               storage tanks;

           (6) Repeals license requirements for butterfat
           testers;

           (7) Repeals provisions related to agricultural
           warehouse corporations;

           (8) Repeals provisions related to farmers' market
nutrition program;

           (9) Repeals antifreeze registration requirement;

           (10)     Repeals provisions related to agricultural
                    development corporations;

           (11)     Repeals provision related to agricultural
                    loan programs that were moved to other
                    locations in statute;

           (12)     Repeals provisions requiring the governor to
                    appoint citrus inspectors;

           (13)     Repeals provisions allowing deductions from
                    refunded vegetable dealer license application
                    fees;
           (14)     Repeals provisions allowing deductions from
                    refunded citrus dealer license application
                    fees;

           (15)     Repeals license requirements for cotton
           classers;

           (16)     Repeals license requirements for egg
           retailers;

           (17)     Repeals egg dealer-wholesaler license fee
schedule;

           (18)     Repeals egg processor license fee schedule;
and

           (19)     Repeals brake fluid registration requirement.

     SECTION 10.10.  Establishes the effective date of this bill
as September 1, 1995.

     SECTION 10.11.  Emergency clause.       

SUMMARY OF COMMITTEE ACTION

S.B. 372 was considered by the committee in a formal hearing on
Thursday, April 27, 1995.

The bill was reported favorably without amendments, with the
recommendation that it do pass and be printed, by a record vote
of 8 ayes, 0 nays, 0 pnv, 1 absent.