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.