BILL ANALYSIS


                                                     C.S.S.B. 372
                                                   By: Armbrister
                                                      Agriculture
                                                          4-21-95
                                   Committee Report (Substituted)
BACKGROUND

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

The department is subject to the Sunset Act and will be abolished
September 1, 1995, unless continued by the legislature.  As a
result of reviewing the department, the Sunset Advisory Commission
recommended continuation and several statutory modifications.

PURPOSE

As proposed, C.S.S.B. 372 continues the Texas Department of
Agriculture (department) for a 12-year period; expands the
provisions related to membership on the board of directors of the
Texas Agricultural Finance Authority (TAFA); grants the department
the authority to set fees rather than having the fees set by
statute; authorizes the State Office of Administrative Hearings to
conduct hearings for the department; sets forth provisions for the
licensing of inspectors of weighing and measuring devices;
transfers authority from the commissioner of agriculture to the
board of directors of TAFA in the creation, establishment, and
administration of certain agricultural programs; and expands the
membership and modifies the duties of the Agriculture Resources
Protection Authority.

RULEMAKING AUTHORITY

It is the committee's opinion that rulemaking authority is granted
to the Texas Department of Agriculture under SECTIONS 1.03-1.07,
1.09-1.10, 1.15-1.16, 1.18-1.20, 1.22-1.23, 2.01-2.08, 2.11-2.13,
2.15, 2.19-2.22, 2.25-2.26, 2.33-2.34, 2.36, 2.42-2.47, 2.49-2.59,
3.01, 4.01, 4.04-4.05, 5.07, 5.14, 5.16, 6.02-6.03, 7.01-7.03, and
8.01 (Sections 12.013(c)-(e), 12.016, 12.0201-12.0203, 12.025-12.206(c)-(d), 12.035-12.037, 14.015(a), 58.014(c), 58.0175-58.0176, 62.0025-62.0027, 62.0065(a), 76.110(b) and (d),
103.004(b)-(c), 103.019, 12.0144, 12.018(a) and (c), 12.021,
12.024, 12.034, 13.1012(c)-(d) and (f)-(g), 13.115(b)-(f),
13.1151(b)-(d), 13.207(d), 13.255(b), 14.005(b), 14.014(d),
14.107(c), 16.002(c), 18.006, 52.151(c), 53.006, 61.011(d),
64.006(a), 71.005(c), 71.0114(b) and (c), 74.090, 76.044(a),
93.053, 95.034, 94.035, 101.006, 101.007(e), 101.008(c),
101.010(b), 102.006, 102.007(e), 102.008(c), 102.010(b), 102.162,
103.005, 103.011(a)-(c), 112.004, 121.004(c), 132.026(a),
132.027(a), 132.028, 132.043(a) and (b), 134.015(b), 12.032,
13.002, and 13.111, Subchapter H, Sections 44.007, 58.017, 58.0177,
76.041, 76.043(a), 132.003, 132.004, 132.008, 12.033, Agriculture
Code); the State Office of Administrative Hearings under SECTION
3.01 (Section 12.032, Agriculture Code), the board of directors of
the Texas Agricultural Finance Authority under SECTION 5.07
(Section 44.007(j), Agriculture Code), the Texas Agricultural
Finance Authority under SECTION 6.01 (Section 76.009(k),
Agriculture Code) of this bill.

SECTION BY SECTION ANALYSIS

                  ARTICLE 1.  GENERAL PROVISIONS

SECTION 1.01.  Amends Section 11.008, Agriculture Code, to subject
all money paid to the Department of Agriculture (department) to
Chapter 404F, Government Code.

SECTION 1.02.  Amends Section 12.013, Agriculture Code, to require
the commissioner of agriculture (commissioner) or designee to
develop annual performance evaluations based on documented employee
performance and an interagency career ladder program addressing
opportunities for employee mobility and advancement, and to prepare
a policy statement including policies in compliance with Chapter
21, Labor Code, which must be reviewed by the Texas Commission on
Human Rights for compliance with Subsection (d)(1) of this section.

SECTION 1.03.  Amends Section 12.016, Agriculture Code, to
authorize the department to adopt rules as necessary for the
administration of its powers and duties under this code, rather
than certain sections of this code.

SECTION 1.04.  Amends Chapter 12, Agriculture Code, by adding
Sections 12.0201 and 12.0202, as follows:

     Sec. 12.0201.  LICENSE SANCTIONS.  Requires the department to
     revoke, modify, suspend, or refuse renewal of a license,
     assess an administrative penalty, place on probation a person
     whose license has been suspended, or reprimand a license
     holder in violation of this code or a department rule.  Sets
     forth provisions concerning probation of a license suspension.
     
     Sec. 12.0202.  ADMINISTRATIVE HEARINGS.  Entitles to a hearing
     a person whose license the department proposes to suspend,
     revoke, or refuse to renew.
     
     SECTION 1.05.  Amends Section 12.023, Agriculture Code, to make
nonsubstantive changes.

SECTION 1.06.  Amends Section 12.025, Agriculture Code, to require
the department to comply with federal and state laws related to
program and facility accessibility.  Requires the commissioner,
instead of the department, to prepare a plan for department service
accessibility to non-English speakers.  Deletes the requirement
that the plan address persons with physical, mental, or
developmental disabilities.

SECTION 1.07.  Amends Sections 12.026(c) and (d), Agriculture Code,
to list the required contents of the complaint information files,
and to require the department to keep a file about each written
complaint that the department has the authority to resolve.

SECTION 1.08.  Amends Chapter 12, Agriculture Code, by adding
Section 12.0261, as follows:

     Sec. 12.0261.  ADMINISTRATIVE PROCEDURE.  Subjects the
     department to Chapter 2001, Government Code.
SECTION 1.09.  Amends Chapter 12, Agriculture Code, by adding
Sections 12.035-12.037, as follows:

     Sec. 12.035.  NOTICE TO EXAMINEE.  Requires the department to
     notify an examinee of the results of a licensing or
     registration examination within 30 days of its administration. 
     Establishes provisions for notification if the examination is
     graded or reviewed by a national testing service.
     
     Sec. 12.036.  LICENSING OUT-OF-STATE APPLICANTS.  Authorizes
     the department to waive licensing or registration
     prerequisites if it determines that the applicant holds a
     valid license from another state having licensing and
     registration requirements equivalent to those of Texas.
     
     Sec. 12.037.  CONTINUING EDUCATION.  Authorizes the department
     to recognize, prepare, or administer continuing education
     programs for license holders.
     
     SECTION 1.10.  Amends Section 14.015(a), Agriculture Code, to
authorize the department to deny an application for a license
renewal if the applicant fails to comply with a requirement of
Subchapter A or a rule adopted by the department under that
subchapter.

SECTION 1.11.  Amends Section 52.085, Agriculture Code, to require
a marketing association that provides for a member association or
group to have more than one vote under Subsection (b) of this
section to comply with Section 52.012(a)(2) of this code.

SECTION 1.12.  Amends Section 58.012, Agriculture Code, by adding
Subsection (f), to require appointments to the board of directors
(board) of the Texas Agricultural Finance Authority (TAFA) to be
made without regard to personal characteristics.

SECTION 1.13.  Amends Section 58.013(a), Agriculture Code, to
require the governor to designate a board member as the chairman of
the board to serve at the pleasure of the governor.

SECTION 1.14.  Amends the heading to Section 58.014, Agriculture
Code, to read: MEETINGS; ADMINISTRATIVE PROCEDURE.

SECTION 1.15.  Amends Section 58.014, Agriculture Code, by adding
Subsections (c) and (d), as follows:

     (c) Requires the board to develop and implement policies that
     provide the public with a reasonable opportunity to appear and
     speak before the board.
     
     (d) Subjects the board to Chapters 551 and 2001, Government
     Code.     
     SECTION 1.16.  Amends Chapter 58, Agriculture Code, by adding
Sections 58.0172-58.0176, as follows:

     Sec. 58.0172.  BOARD CONFLICT OF INTEREST.  Excludes certain
     persons involved in a Texas trade association or related
     lobbying efforts from membership of the board.
     
     Sec. 58.0173.  REMOVAL OF BOARD MEMBER.  Sets forth guidelines
     and the grounds for removal of a board member.
     
     Sec. 58.0174.  STANDARDS OF CONDUCT.  Requires the
     commissioner or a designee to provide board members with
     information regarding their qualification for and
     responsibilities of office.
     
     Sec. 58.0175.  SEPARATION OF RESPONSIBILITIES.  Requires the
     board to develop and implement policies that clearly separate
     policymaking responsibilities of the board and the management
     responsibilities of the commissioner and department staff.
     
     Sec. 58.0176.  BOARD MEMBER TRAINING.  Requires a board
     member, before assumption of duties and confirmation by the
     senate, to complete at least one course of the training
     program described under this section.
     
     SECTION 1.17.  Amends Section 62.002, Agriculture Code, by amending
Subsection (d) and adding Subsection (e), to require the governor
to designate a State Seed and Plant Board (SSP) member as the
chairman, serving at the pleasure of the governor, and to require
board appointments to be made on an equal opportunity basis.

SECTION 1.18.  Amends Chapter 62, Agriculture Code, by adding
Sections 62.0022-62.0027, as follows:

     Sec. 62.0022.  BOARD CONFLICT OF INTEREST.  Excludes certain
     persons involved in a Texas trade association or related
     lobbying efforts from membership in SSP.
     
     Sec. 62.0023.  REMOVAL OF BOARD MEMBER.  Sets forth guidelines
     and the grounds for removal of an SSP member.
     
     Sec. 62.0024.  STANDARDS OF CONDUCT.  Requires the
     commissioner or a designee to provide SSP members with
     information regarding their qualification for and
     responsibilities of office.
     
     Sec. 62.0025.  BOARD MEETINGS; ADMINISTRATIVE PROCEDURE. 
     Requires SSP to develop and implement policies that provide
     the public with a reasonable opportunity to appear and speak
     before SSP.  Subjects SSP to Chapters 551 and 2001, Government
     Code.
     
     Sec. 62.0026.  SEPARATION OF RESPONSIBILITIES.  Requires SSP
     to develop and implement policies that clearly separate
     policymaking responsibilities of SSP and the management
     responsibilities of the commissioner and department staff.
     
     Sec. 62.0027.  BOARD MEMBER TRAINING.  Requires an SSP member,
     before assumption of duties and confirmation by the senate, to
     complete at least one course of the training program described
     under this section.
SECTION 1.19.  Amends Section 62.0065(a), Agriculture Code, to
authorize SSP to require a testing service to notify examinees of
the results of the examination.

SECTION 1.20.  Amends Sections 76.110(b) and (d), Agriculture Code,
to authorize the appropriate regulatory agency to require a testing
service to notify examinees of results, and to waive license
prerequisites if it determines that the applicant holds a valid
license from another state having licensing and registration
requirements equivalent to those of Texas.

SECTION 1.21.  Amends Section 103.003, Agriculture Code, by adding
Subsections (e)-(g), as follows:

     (e) Requires the Produce Recovery Fund Board (PRFB)
     appointments to be made without regard to personal
     characteristics.
     
     (f) Requires the governor to designate a PRFB member as the
     chairman of the board to serve in that capacity at the
     pleasure of the governor.
     
     (g) Subjects PRFB to Chapters 551 and 2001, Government Code.
     
     SECTION 1.22.  Amends Section 103.004, Agriculture Code, to require
PRFB to develop and implement policies that provide the public with
a reasonable opportunity to appear and speak before PRFB and that
clearly separate policymaking responsibilities of PRFB and the
management responsibilities of the commissioner and department
staff.

SECTION 1.23.  Amends Chapter 103, Agriculture Code, by adding
Sections 103.016-103.019, as follows:

     Sec. 103.016.  BOARD CONFLICT OF INTEREST.  Excludes certain
     persons involved in a Texas trade association or related
     lobbying efforts from membership of PRFB.
     
     Sec. 103.017.  REMOVAL OF BOARD MEMBER.  Sets forth guidelines
     and the grounds for removal of a PRFB member.
     
     Sec. 103.018.  QUALIFICATIONS AND STANDARDS OF CONDUCT. 
     Requires the commissioner or a designee to provide PRFB
     members with information regarding their qualification for and
     responsibilities of office.
     
     Sec. 103.019.  BOARD MEMBER TRAINING.  Requires a PRFB member,
     before assumption of duties and confirmation by the senate, to
     complete at least one course of the training program described
     under this section.
     
                      ARTICLE 2.  FEES
     
     SECTION 2.01.  Amends Chapter 12, Agriculture Code, by adding
Section 12.0144, as follows:

     Sec. 12.0144.  FEE SCHEDULE.  Requires the department, by
     rule, to adopt a schedule for all fees set under this code. 
     Requires the department, except for those activities exempted
     in the General Appropriations Act, to set fees in an amount
     which offsets the state costs of administering regulatory
     activities.
     
SECTION 2.02.  Amends Sections 12.018(a) and (c), Agriculture Code,
to make conforming changes.

SECTION 2.03.  Amends Section 12.021, Agriculture Code, to make
conforming changes.

SECTION 2.04.  Amends Section 12.024, Agriculture Code, as follows:

     (a) Authorizes a person, otherwise eligible to renew a license
     or registration, to renew an unexpired license or registration
     by paying the required fee to the department before the
     license or registration expiration date.  Prohibits a person
     whose license or registration has expired from engaging in
     activities requiring a license or registration until renewal.
     
     (b) Authorizes a person, if the person's license or
     registration has been expired for 90 days or less, to renew
     the license or registration by paying 1-1/2 times the required
     renewal fee.
     
     (c) Authorizes a person, if the person's license or
     registration has been expired for longer than 90 days but less
     than one year, to renew the license or registration by paying
     two times the required renewal fee.
     
     (d) Prohibits a person, if the person's license or
     registration has been expired for at least a year, from
     renewing the license or registration, and authorizes the
     person to obtain a new license or registration through
     reexamination and compliance with original license or
     registration requirements.
     
     (e) Authorizes a person, if the person was licensed or
     registered in this state and moved to another state and has
     been licensed or registered there for at least the two years
     preceding current application in this state, to renew an
     expired license or registration without reexamination. 
     Requires the person to pay a fee equal to two times the
     required renewal fee.
     
     (f) Requires the department, at least 30 days before a
     person's license or registration expiration, to send written
     notice to the person.
     
     (g) Requires the department, by rule, to set fees required by
     this section.
     
     SECTION 2.05.  Amends Chapter 12, Agriculture Code, by adding
Section 12.034, as follows:

     Sec. 12.034.  REFUND OF FEES.  Authorizes the department, by
     rule, to provide for the full or partial refund of a fee
     collected by the department.
SECTION 2.06.  Amends Sections 13.115(b)-(f), Agriculture Code, to
make conforming changes.

SECTION 2.07.  Amends Sections 13.1151(b)-(d), Agriculture Code, to
make conforming changes.

SECTION 2.08.  Amends Section 13.255(b), Agriculture Code, to make
conforming changes.

SECTION 2.09.  Amends Sections 13.304(a) and (b), Agriculture Code,
to make conforming changes.

SECTION 2.10.  Amends Sections 13.354(a) and (b), Agriculture Code,
to make conforming changes.

SECTION 2.11.  Amends Section 14.005(b), Agriculture Code, to make
conforming changes.

SECTION 2.12.  Amends Section 14.014(d), Agriculture Code, to make
conforming changes.

SECTION 2.13.  Amends Section 14.107(c), Agriculture Code, to make
conforming changes.

SECTION 2.14.  Amends Section 14.118(c), Agriculture Code, to make
conforming changes.

SECTION 2.15.  Amends Section 16.002(c), Agriculture Code, to make
conforming changes.

SECTION 2.16.  Amends Section 17.008, Agriculture Code, to make
conforming changes.

SECTION 2.17.  Amends Section 18.003(b), Agriculture Code, to make
conforming changes.

SECTION 2.18.  Amends Section 18.004(b), Agriculture Code, to make
conforming changes.

SECTION 2.19.  Amends Section 18.006, Agriculture Code, to make
conforming changes.

SECTION 2.20.  Amends Section 52.151(c), Agriculture Code, to make
conforming changes.

SECTION 2.21.  Amends Section 53.006, Agriculture Code, to make
conforming changes.

SECTION 2.22.  Amends Section 61.011(d), Agriculture Code, to make
conforming changes.

SECTION 2.23.  Amends Section 62.005(d), Agriculture Code, to make
conforming changes.

SECTION 2.24.  Amends Section 62.005(d), Agriculture Code, to make
conforming changes.

SECTION 2.25.  Amends Section 64.006(a), Agriculture Code, to make
conforming changes.

SECTION 2.26.  Amends Section 71.005(c), Agriculture Code, to make
conforming changes.

SECTION 2.27.  Amends Section 71.043(b), Agriculture Code, to make
conforming changes.

SECTION 2.28.  Amends Section 71.050(a), Agriculture Code, to
require nursery products or florist items offered for sale or
lease, consigned for shipment, or shipped, to be accompanied by a
copy of the certificate of inspection issued by the department when
required by foreign countries or other states for agricultural
products exported from this state.

SECTION 2.29.  Repeals Section 71.051(c), Agriculture Code,
(Importation Certificates), and amends Section 71.051(d), by
renumbering it as (c) and amending it to delete reference to the
Texas Importation Certificate.

SECTION 2.30.  Amends Section 71.056(a), Agriculture Code, to
require the department to fix by rule and collect a fee for
inspection of nursery products or florist items when the inspection
is required by foreign countries or other states for nursery
products or florist items exported from this state.

SECTION 2.31.  Amends Section 71.057(e), Agriculture Code, to make
conforming changes.

SECTION 2.32.  Amends Sections 71.114(b) and (c), Agriculture Code,
to make conforming changes.

SECTION 2.33.  Amends Section 74.090, Agriculture Code, to make
conforming changes.

SECTION 2.34.  Amends Section 75.004(d), Agriculture Code, to make
conforming changes.

SECTION 2.35.  Amends Section 76.044(a), Agriculture Code, to make
conforming changes.

SECTION 2.36.  Amends Section 76.073(a), Agriculture Code, to make
conforming changes.

SECTION 2.37.  Amends Section 76.106(c), Agriculture Code, to make
conforming changes.

SECTION 2.38.  Amends Section 76.108(b), Agriculture Code, to make
conforming changes.

SECTION 2.39.  Amends Section 76.109(b), Agriculture Code, to make
conforming changes.

SECTION 2.40.  Amends Section 76.112(e), Agriculture Code, to make
conforming changes.

SECTION 2.41.  Amends Section 95.034, Agriculture Code, to make
conforming changes.

SECTION 2.42.  Amends Section 94.035, Agriculture Code, to make
conforming changes.

SECTION 2.43.  Amends Section 101.006, Agriculture Code, to make
conforming changes.

SECTION 2.44.  Amends Section 101.008(c), Agriculture Code, to make
conforming changes.

SECTION 2.45.  Amends Section 101.010(b), Agriculture Code, to make
conforming changes.

SECTION 2.46.  Amends Section 102.006, Agriculture Code, to make
conforming changes.

SECTION 2.47.  Amends Section 102.008(c), Agriculture Code, to make
conforming changes.

SECTION 2.48.  Amends Section 102.010(b), Agriculture Code, to make
conforming changes.

SECTION 2.49.  Amends Section 102.162, Agriculture Code, to make
conforming changes.

SECTION 2.50.  Amends Section 103.005, Agriculture Code, to make
conforming changes.

SECTION 2.51.  Amends Sections 103.011(a)-(c), Agriculture Code, to
make conforming changes.

SECTION 2.52.  Amends Section 121.004(c), Agriculture Code, to make
conforming changes.

SECTION 2.53.  Amends Section 132.026(a), Agriculture Code, to make
conforming changes.

SECTION 2.54.  Amends Section 132.027(a), Agriculture Code, to make
conforming changes.

SECTION 2.55.  Amends Section 132.028, Agriculture Code, to make
conforming changes.

SECTION 2.56.  Amends Sections 132.043(a) and (b), Agriculture
Code, to make conforming changes.

SECTION 2.57.  Amends Section 134.014, Agriculture Code, to make
conforming changes.

SECTION 2.58.  Amends Section 134.015(b), Agriculture Code, to make
conforming changes.

                       ARTICLE 3.  HEARINGS

SECTION 3.01.  Amends Chapter 12, Agriculture Code, by adding
Section 12.032, as follows:

     Sec. 12.032.  COOPERATION WITH STATE OFFICE OF ADMINISTRATIVE
     HEARINGS.  (a) Requires the commissioner and the chief
     administrative law judge (judge) of the State Office of
     Administrative Hearings (SOAH), by rule, to adopt a memorandum
     of understanding under which SOAH conducts hearings for the
     department under this code.  Requires the memorandum to
     require the judge, the department, and the commissioner to
     cooperate in connection with the hearings.  Authorizes the
     memorandum to authorize SOAH to perform an administrative act
     required of the department or commissioner under this code. 
     Requires the memorandum of understanding to also require that
     hearings under this section be held at a location agreed upon
     by SOAH and the department.
     
            (b) Authorizes the department and the commissioner to retain
       the authority to decide whether the judge shall enter the
       final decision in the case or propose to the department or
       commissioner a decision for final consideration.
       
       (c) Requires the department or commissioner to take action
       at a hearing, or SOAH to enter the final decision, if so
       directed by the department and the commissioner.
       
       (d) Requires the department to prescribe rules of procedure
       for cases not heard by SOAH.
       
       (e) Requires the department, by interagency contract, to
       reimburse SOAH for the costs incurred in conducting the
       hearings for the department.  Authorizes the department to
       pay an hourly fee for these hearings, or a fixed annual fee
       negotiated biennially by the department and SOAH to coincide
       with the department's legislative appropriations request.
       
       (f) Provides that this section does not apply to hearings
       under Chapter 103.
SECTION 3.02.  Amends Section 12.020, Agriculture Code, as follows:

     (a)-(j) Make conforming and nonsubstantive changes.
     
     (k) Requires the person charged with the penalty to pay the
     penalty in full, or, with or without paying the amount of the
     penalty, to file a petition for judicial review contesting the
     occurrence of the violation, the amount of the penalty, or
     both.  Deletes reference to an escrow account.
     
     (l) Authorizes a person who acts under Subsection (k)(3)
     within a 30-day period to stay enforcement of the penalty or
     request the court to stay enforcement of the penalty.  Deletes
     language regarding a person's financial inability to forward
     the amount of the penalty or post a bond.
     
     (m) Authorizes the department, on receipt of a copy of an
     affidavit under Subsection (l)(2), to file with the court a
     contest to the affidavit by a certain date.  Requires the
     court to hold a hearing on the facts alleged in the affidavit
     and to stay the enforcement of the penalty on finding that the
     alleged facts are true.  Places the burden of proving
     financial inability to pay the amount of the penalty and to
     give a supersedeas bond on the person who files an affidavit.
     
     (n) Authorizes the department, if the person does not pay the
     penalty and the enforcement of the penalty is not stayed, to
     refer the matter to the attorney general for collection of the
     penalty.
     
     (o) Declares that judicial review of the order of the
     commission is instituted by filing a petition and is under the
     substantial evidence rule.
     
     (p) Authorizes the court, if it sustains the occurrence of the
     violation, to uphold or reduce the amount of the penalty and
     order the person to pay that amount.  Requires the court, if
     it does not sustain the occurrence of the violation, to order
     that no penalty is owed.
     
     (q) Requires the court, when the judgment of the court becomes
     final, to take certain action.  Deletes existing Subsections
     (m)-(o) concerning failure to forward money, post a bond, or
     file an affidavit; judicial review; and remission of a
     penalty.
     
     (r) Redesignates existing Subsection (p).
     
     (s) Subjects all proceedings under this section to Chapter
     2001, Government Code, except as provided in Subsections (t)
     and (u).
     
     (t) Authorizes the commissioner to change a finding of fact or
     conclusion of law under certain circumstances.
     
     (u) Requires the commissioner to state in writing the specific
     reason and legal basis for a determination under Subsection
     (t).
SECTION 3.03.  Amends Section 13.2555(c), Agriculture Code, to make
conforming and nonsubstantive changes.

SECTION 3.04.  Amends Section 13.306(d), Agriculture Code, to make
conforming and nonsubstantive changes.

SECTION 3.05.  Amends Section 13.356(d), Agriculture Code, to make
conforming and nonsubstantive changes.

SECTION 3.06.  Amends Section 14.003(b), Agriculture Code, to make
conforming changes.

SECTION 3.07.  Amends Section 14.015(e), Agriculture Code, to make
conforming and nonsubstantive changes.

SECTION 3.08.  Amends Section 61.0135(c), Agriculture Code, to make
conforming and nonsubstantive changes.

SECTION 3.09.  Amends Section 62.010(d), Agriculture Code, to make
conforming changes.

SECTION 3.10.  Amends Section 75.0055(c), Agriculture Code, to make
conforming and nonsubstantive changes.

SECTION 3.11.  Amends Section 75.021(f), Agriculture Code, to make
nonsubstantive changes.

SECTION 3.12.  Amends Section 75.022(c), Agriculture Code, to make
a nonsubstantive change.

SECTION 3.13.  Amends Section 76.047(a), Agriculture Code, to make
conforming changes.

SECTION 3.14.  Amends Section 76.076(d), Agriculture Code, to make
conforming and nonsubstantive changes.

SECTION 3.15.  Amends Section 76.116, Agriculture Code, by amending
Subsection (b) and adding Subsection (e), to entitle a person, if
the department proposes to suspend, modify, or revoke the person's
license or certificate, to a hearing under Section 12.032. 
Provides that the department's decision is appealable as for
contested cases under Chapter 2001, Government Code.

SECTION 3.16.  Amends Section 76.1555, Agriculture Code, as
follows:

     (a) Authorizes the department, if a person violates a
     provision of Chapter 75 or 76, to assess an administrative
     penalty against the person as provided by Section 12.020,
     except that the penalty shall not exceed $4,000 for all
     violations related to a single incident.  Deletes language
     regarding a $2,000 limit for each violation.
     
     (b) Makes conforming and nonsubstantive changes.
     
     (c) Redesignates existing Subsection (q).  Deletes existing
     Subsections (c)-(p) concerning the payment of a penalty.
SECTION 3.17.  Amends Section 76.181(a), Agriculture Code, to make
nonsubstantive changes.

SECTION 3.18.  Amends Section 76.182(a), Agriculture Code, to make
nonsubstantive changes.

SECTION 3.19.  Amends Section 96.005, Agriculture Code, to make
conforming changes.

SECTION 3.20.  Amends Section 101.007(d), Agriculture Code, to make
conforming and nonsubstantive changes.

SECTION 3.21.  Amends Section 101.012(c), Agriculture Code, to make
conforming and nonsubstantive changes.

SECTION 3.22.  Amends Section 102.007(d), Agriculture Code, to make
conforming and nonsubstantive changes.

SECTION 3.23.  Amends Section 102.012(c), Agriculture Code, to make
conforming and nonsubstantive changes.

SECTION 3.24.  Amends Section 103.006(b), Agriculture Code, to make
nonsubstantive changes.

SECTION 3.25.  Amends Section 125.005(f), Agriculture Code, to make
conforming changes.

SECTION 3.26.  Amends Sections 125.016(c), (d), and (h),
Agriculture Code, as follows:

     (c) Makes conforming changes.
     
     (d) Deletes a provision regarding the failure of an employer
     or chemical manufacturer to comply with this chapter within 14
     days after receiving a written notice under this subsection. 
     Makes conforming and nonsubstantive changes.
     
     (h) Requires an action for civil or criminal penalties to be
     brought in the county in which the alleged violation occurred.
SECTION 3.27.  Amends Section 132.072(c), Agriculture Code, to make
conforming and nonsubstantive changes.

SECTION 3.28.  Amends Section 252.028(c), Agriculture Code, to make
conforming and nonsubstantive changes.

SECTION 3.29.  Amends Section 2003.021, Government Code, by adding
Subsection (d), to require SOAH to conduct hearings under Section
12.032, Agriculture Code, and to consider the applicable
substantive rules and policies of the department.

                 ARTICLE 4.  WEIGHTS AND MEASURES

SECTION 4.01.  Amends Section 13.002, Agriculture Code, to require
the department to allow another state agency, by interagency
contract covering the whole state or only a specified region,
tract, to execute the department's responsibilities under
Subsection (a).

SECTION 4.02.  Amends Section 13.110(a), Agriculture Code, to
authorize, rather than require, each sealer to inspect and test
weights and measures used in the sealer's assigned or appointed
locality.

SECTION 4.03.  Amends Section 13.111, Agriculture Code, by adding
Subsections (c) and (d), as follows:

     (c) Requires a person licensed under Subchapter H to offer to
     repair an incorrect weight or measure before taking the device
     out of service.  Requires the weights and measures inspector
     to collect a certain fee for repair.
     
     (d) Prohibits a person licensed under Subchapter F, G, or H,
     from collecting a fee for the first inspection of a device
     after the device is taken out of service under Subsection (b);
     and requires such licensed individuals to provide the owner or
     user of a device taken out of service under Subsection (b)
     with a detailed written estimate of the cost of repair of the
     device.
     
SECTION 4.04.  Amends Chapter 13, Agriculture Code, by adding
Subchapter H, as follows:

  SUBCHAPTER H.  LICENSED INSPECTORS OF WEIGHING AND MEASURING DEVICES

     Sec. 13.401.  LICENSE REQUIREMENT.  (a) Grants a person
     licensed under this subchapter all of the powers and duties of
     a sealer, with specific exceptions.
     
     (b) Makes it a defense to prosecution under Section 13.117
       or 13.118 that the sealer is acting under the authority of
       a license issued under this subchapter.
       
       (c) Authorizes a person licensed under this subchapter to
       also inspect or test liquefied petroleum gas meters under
       Subchapter F or a ranch scale under Subchapter G.
       
       (d) Prohibits a person, unless appointed a sealer under
       Subchapter C, from performing the functions of a sealer
       without a license under this subchapter.
       
       (e) Requires the department to issue a license to a person
       who meets the requirements of this subchapter.
       
       (f) Requires a license holder to conduct inspecting or
       testing activities in compliance with department rules.
       
       (g) Requires a license holder to maintain and submit to the
       department a report and record of all inspecting or testing
       activities.
       
       Sec. 13.402.  GENERAL REQUIREMENTS FOR LICENSE ISSUANCE OR
     RENEWAL.  Requires, before the department issues or renews a
     license, an applicant for renewal to prove to the department
     completion of a course approved and required by the department
     and to file with the department certain insurance proof; and
     authorizes the department to inspect the applicant's
     facilities, inspecting and testing and repair and calibration
     equipment and procedures, and transportation equipment.
     
     Sec. 13.403.  LICENSE AND RENEWAL; FEES.  (a) Requires a
     license application to be submitted to the department on a
     department form and to be accompanied by an annual license fee
     as established by department rule.
     
     (b) Validates a license for one year, and authorizes its
       renewal by filing a renewal application accompanied by an
       annual renewal fee.
       
       (c) Requires a person who fails to submit a renewal fee
       before the license expires to pay, in addition to the
       renewal fee, the late fee provided by department rule.
       
       Sec. 13.404.  DUTIES OF DEPARTMENT.  (a) Authorizes the
     department, by rule, to adopt a system to periodically monitor
     and inspect or test scales inspected and tested by the license
     holder.
     
     (b) Requires the department, by rule, to adopt guidelines
       allowing a representative of the license holder to perform
       functions of the license holder.
       
       (c) Authorizes the department, by rule, to adopt additional
       requirements for license issuance and denial of issuance or
       renewal, designed to protect the public health, safety, and
       welfare, and the proper operation of weighing and measuring
       devices.
       
       (d) Requires the department, by rule, to adopt a fee
       schedule for services performed by a license holder.
       
       Sec. 13.405.  DENIAL, REVOCATION, MODIFICATION, OR SUSPENSION
     OF LICENSE.  (a) Authorizes the department to refuse to issue
     a license if the applicant fails to comply with this
     subchapter.
     
     (b) Requires the department to revoke, modify, or suspend a
       license, assess an administrative penalty, place on
       probation a person with a suspended license, or reprimand a
       license holder in violation of this subchapter.
       
       (c) Grants the department authority to make specific
       requirements of a person whose license suspension is
       probated.
       
       (d) Entitles a person, if the department proposed to deny a
       person's application or to revoke, modify, or suspend a
       person's license, to a hearing under Section 12.032.
       
       Sec. 13.406.  CIVIL PENALTY; INJUNCTION.  (a) Makes a person
     who violates this subchapter liable for a civil penalty from
     $250 to $10,000 per violation, and authorizes each day a
     violation continues to be considered a separate violation for
     penalty assessment.
     
     (b) Requires the attorney general or the county or district
       attorney, on department request, to file suit to collect the
       penalty.
       
       (c) Requires a civil penalty collected under this section to
       be deposited in the state treasury to the credit of the
       general revenue fund.  Sets forth provisions for civil
       penalties recovered in suits first instituted by a local
       government.
       
       (d) Entitles the department to appropriate injunctive relief
       to prevent or abate violation of this subchapter.  Requires
       the attorney general or the county or district attorney to
       file suit for injunctive relief on request of the
       department.
       
       Sec. 13.407.  CRIMINAL PENALTY.  Provides that an individual
     commits an offense, classified as a Class B misdemeanor, if
     required to be licensed, is not licensed, and performs or
     offers to perform an inspection or test on a weighing or
     measuring device for compensation.
     
     SECTION 4.05.  Amends Chapter 13, Agriculture Code, by adding
Section 13.1012, as follows:

     Sec. 13.1012.  SERVICE PERSON REGISTRATION REQUIREMENT.  (a)
     Prohibits a person from placing into service or removing any
     out-of-order tag from any weighing or measuring devices,
     unless the person holds a registration issued under this
     section or is licensed under Subchapters F, G, or H of this
     code.
     
     (b) Requires the department to register a person who meets
       the requirements of the department adopted under this
       section.
       
       (c) Requires each registrant under this section to conduct
       installation or service activities in compliance with the
       rules of the department.
       
       (d) Requires a registrant to maintain and submit to the
       department a report and record of all installation or
       service activities compiled in accordance with the rules of
       the department.
       
       (e) Authorizes the department to conduct an inspection of an
       applicant's or registrant's facilities, inspecting and
       testing equipment and procedures, repair and calibration
       equipment and procedures, and transportation equipment.
       
       (f) Requires an application for a registration or renewal to
       be submitted to the department on a form prescribed by the
       department and accompanied by the appropriate fee as
       established by department rule.
       
       (g) Requires a registration issued under this section to be
       for a period determined by department rule.
       
       (h) Authorizes the department to refuse to register an
       applicant for service of weighing and measuring devices if
       the applicant fails to comply with this section.
       
       (i) Requires the department to revoke, modify, or suspend a
       registration, assess an administrative penalty, place on
       probation a person whose registration has been suspended, or
       reprimand a registrant if the registrant fails to comply
       with this section or a rule adopted by the department under
       this section.
 ARTICLE 5.  OPERATIONS OF TEXAS AGRICULTURE FINANCE AUTHORITY

SECTION 5.01.  Amends Section 44.001(7), Agriculture Code, to
redefine "rural area."

SECTION 5.02.  Amends Section 44.002, Agriculture Code, to require
the board of directors of TAFA, rather than the commissioner, to
create an agricultural diversification program and a
microenterprise support program.

SECTION 5.03.  Amends Sections 44.004(a) and (d), Agriculture Code,
to make conforming changes.

SECTION 5.04.  Amends Sections 44.0045(a) and (d), Agriculture
Code, to make conforming changes.

SECTION 5.05.  Amends Sections 44.005(a) and (d), Agriculture Code,
to make conforming changes.

SECTION 5.06.  Amends Sections 44.006(a) and (d), Agriculture Code,
to make conforming changes.

SECTION 5.07.  Amends Section 44.007, Agriculture Code, to require
the board to establish a linked deposit program, and to authorize
the board to adopt rules, stating specific policy objectives, to
determine priorities for loans granted under this chapter.

SECTION 5.08.  Amends Section 44.008, Agriculture Code, to make
conforming changes.

SECTION 5.09.  Amends Section 44.011, Agriculture Code, to make
conforming changes.

SECTION 5.10.  Amends Section 44.012, Agriculture Code, to make
conforming changes.

SECTION 5.11.  Amends Section 58.012(a), Agriculture Code, to
redesignate the numbers of members who must be appointed to the
board from certain categories.

SECTION 5.12.  Amends Section 58.015, Agriculture Code, to require
the board to reimburse the department for expenses incurred as
required by the business of TAFA with approval of the board, rather
than a majority of the board.  Makes conforming changes.

SECTION 5.13.  Amends Section 58.016(b), Agriculture Code, to
require the administrator of TAFA to file with the board the
proposed annual budgets for the young farmer loan guarantee program
under Chapter 253, the farm and ranch finance program under Chapter
59, and the programs administered by the board under this chapter
for the succeeding fiscal year.  Prohibits expenditures, if TAFA
does not accept an annual budget before September 2, from being
made from the funds until board approval of the budget.

SECTION 5.14.  Amends Chapter 58B, Agriculture Code, by adding
Section 58.017, as follows:

     Sec. 58.017.  COST-BENEFIT REPORT.  (a) Requires the board to
     perform a biennial cost-benefit study of the authority's
     active and inactive programs and prepare a report on the
     study.  Requires the study to examine the number of jobs
     created or retained in this state as a result of each program
     and the costs and benefits associated with those jobs.
     
     (b) Requires the commissioner to file the report with the
       state auditor before December 1 of each even-numbered year.
       
       (c) Requires the state auditor to review the report and send
       it, with the auditor's comments, to the governor and
       presiding officer of each legislative house not later than
       February 1 of each odd-numbered year.  Requires the state
       auditor to assist the department in preparing the report.
       
       SECTION 5.15.  Amends Chapter 58B, Agriculture Code, by adding
Section 58.0171, as follows:

     Sec. 58.0171.  REVIEW OF DEPARTMENT PLANS AND BUDGET REQUEST. 
     Requires the department to provide the board with sufficient
     opportunity to review and comment on the finance program-related portions of the department strategic plan and the
     department biennial appropriation request, and any revision of
     a finance program-related portion of the plan or request,
     before submission to the legislature.
SECTION 5.16.  Amends Chapter 58B, Agriculture Code, by adding
Section 58.0177, as follows:

     Sec. 58.0177.  APPOINTED MEMBER PREPARATION PROGRAM.  Requires
     each appointed member of the board to complete a financial
     education program adequate to prepare the member for the
     responsibilities of membership before beginning service.
     
SECTION 5.17.  Amends Section 58.021(c), Agriculture Code, to
declare that the maximum aggregate amount of loans made to a single
eligible agricultural business by TAFA from funds provided by the
authority is $1 million, rather than $2 million.  Authorizes the
authority to make a loan for a single eligible agricultural
business that results in an aggregate amount exceeding $1 million,
rather than $2 million, but not exceeding $2 million, rather than
$5 million, if the action is approved by a two-thirds vote of the
membership of the board.

SECTION 5.18.  Amends Chapter 58C, Agriculture Code, as follows:

     Sec. 58.0211.  LOAN LIMITS.  (a) Authorizes the authority to
     make, guarantee, insure, coinsure, or reinsure a loan up to
     the limits in this section and Section 58.021 of this code for
     a single eligible business which already has an active loan,
     if the action is approved by a two-thirds vote of the members
     present.
     
     (b) Requires TAFA to give preference to loans, loan
       guarantees, loan insurance, coinsurance, reinsurance, or
       other financing mechanisms to value-added agricultural
       businesses.  Authorizes TAFA to decline financial assistance
       to businesses whose primary purpose is to establish or
       expand conventional agricultural production.
       
       (c) Prohibits TAFA from guaranteeing more than 90 percent of
       a loan to an eligible agricultural business made by a
       private lender.
       
       ARTICLE 6.  AGRICULTURAL RESOURCES PROTECTION AUTHORITY
       
       SECTION 6.01.  Amends Section 76.009, Agriculture Code, as follows:

     (a) Adds to the members who compose the Agriculture Resources
     Protection Authority (ARPA).  Makes nonsubstantive changes.
     
     (b) Provides that a person who serves under Subdivisions (7)-(14) serves a two-year term.  Requires all appointments by the
     governor under this section to be made with the advice and
     consent of the senate.
     
     (c) Requires the governor, rather than the commissioner, to
     designate the presiding officer.
     
     (d) Deletes the voting requirements necessary for the
     authority to take an action.
     
     (e) and (f) Make no changes.
     
     (g) Deletes ARPA's authority to exempt agencies from
     regulatory provisions under emergency conditions and to hear
     and determine all appeals from orders entered by an agency for
     which ARPA is the coordinating body.  Makes conforming
     changes.
     
     (h) Authorizes a member of ARPA to designate a person to
     execute any responsibility of the member.
     
     (i) Requires ARPA to develop and implement policies providing
     the public with an opportunity to appear before ARPA to
     comment on the status of the state's pesticide regulation
     efforts.  Deletes a provision regarding due process.
     
     (j) Deletes the requirement that the commissioner administer
     the rules adopted by TAFA.
     
     (k) Requires ARPA to adopt rules requiring quarterly
     submission to ARPA by the department, State Soil and Water
     Conservation Board, Texas Agricultural Extension Service,
     Texas Department of Health, Texas Natural Resource
     Conservation Commission, and the Texas Structural Pest Control
     Board of a report regarding each agency's pesticide regulatory
     enforcement activity.
     
     (l) Requires ARPA to review and make comments, to be made
     available to the public, regarding the information received by
     the authority under Subsection (k).
     
     (m) Requires the department, State Soil and Water Conservation
     Board, Texas Agricultural Extension Service, Texas Department
     of Health, Texas Natural Resource Conservation Commission, and
     the Texas Structural Pest Control Board to provide ARPA with
     sufficient opportunity to review and comment on the strategic
     plan and biennial appropriation request of each agency, and
     any revision of a plan or request, before submission to the
     legislature.
     
SECTION 6.02.  Amends Section 76.041, Agriculture Code, by amending
Subsection (a), and adding Subsection (d), as follows:

     (a) Makes a conforming change.
     
     (d) Declares that registration is not required for a pesticide
     that is exempt from registration with the U.S. Environmental
     Protection Agency under federal law, unless otherwise required
     by department rule.
SECTION 6.03.  Amends Sections 76.043(a) and (c), Agriculture Code,
to declare that registration of a pesticide expires on the second
anniversary of the date of its approval or renewal, except that the
department, by rule, shall adopt a system under which registrations
expire on various dates during the year, rather than annually on
December 31.  Makes a conforming change.

                    ARTICLE 7.  EGG REGULATION

SECTION 7.01.  Amends Section 132.003, Agriculture Code, as
follows:

     (a) Deletes language requiring attorney general approval of
     department rules.
     
     (b) Redesignates existing Subsection (c)  Deletes existing
       Subsection (b) concerning the publication of information and
       reports by the department.
SECTION 7.02.  Amends Section 132.004, Agriculture Code, to require
the standards for the inspection and regulation of shell eggs,
including quality, grade, and size, to be at least equal to those
of the U.S. Department of Agriculture and the federal Food and Drug
Administration.

SECTION 7.03.  Amends Chapter 132A, Agriculture Code, by adding
Section 132.008, as follows:

     Sec. 132.008.  MEMORANDA OF UNDERSTANDING WITH OTHER STATE
     AGENCY.  (a) Requires the department to initiate negotiations
     for and enter into a memorandum of understanding with the
     Texas Department of Health (TDH) to coordinate regulatory
     programs and eliminate conflicting regulatory requirements and
     inspection standards.
     
     (b) Requires the department to enter into an agreement with
       TDH regarding the regulation of eggs.
       
       (c) Authorizes the department and TDH to enter into
       memoranda of understanding in other areas.
       
       (d) Requires a memorandum of understanding between the
       department and TDH to be adopted by the commissioner and the
       governing body of TDH.
       
       (e) Requires the department to publish the adopted
       memorandum in the Texas Register.
       
       SECTION 7.04.  Amends Section 132.021(b), Agriculture Code, to
exclude a retailer selling eggs to the ultimate consumer of the
eggs from the provisions of this section.

                ARTICLE 8.  LICENSE CONSOLIDATION

SECTION 8.01.  Amends Chapter 12, Agriculture Code, by adding
Section 12.033, as follows:

     Sec. 12.033.  MULTIPLE LICENSES.  (a) Defines "component
     license" and "grocer."
     
     (b) Authorizes a grocer holding more than one type of
       license issued by the department to obtain a single
       consolidated license, authorizing each activity of the
       component licenses, from the department.
       
       (c) Requires the department, by rule, to implement a program
       for issuing a consolidated license, including specific
       provisions.
       
          ARTICLE 9.  CONTINUATION OF DEPARTMENT
       
       SECTION 9.01.  Amends Section 11.003, Agriculture Code, to abolish
the department, unless continued in existence by Chapter 325,
Government Code, on September 1, 2007, rather than 1995.

  ARTICLE 10.  TRANSITION PROVISIONS; REPEALER; EFFECTIVE DATE; EMERGENCY

SECTION 10.01.  TRANSITION: FEES.  Makes application of this Act
relating to fee charges prospective beginning September 1, 1996.

SECTION 10.02.  TRANSITION: HEARINGS. Makes application of this Act
relating to hearings prospective beginning January 1, 1996.

SECTION 10.03.  TRANSITION: LICENSING.  Provides that Chapter 13H,
Agriculture Code, applies to a person only after the department
reasonably demonstrates to the Legislative Budget Board that the
department's licensing programs for inspection and testing of
liquefied petroleum gas meters and inspection and testing of ranch
scales under Chapters 13F and 13G have attained performance goals
established by the Legislative Budget Board.

SECTION 10.04.  TRANSITION: REVIEW OF ENFORCEMENT OF PESTICIDE
REGULATION.  Requires the Agricultural Resources Protection
Authority to review penalties used in enforcement of pesticide
regulation by the Department of Agriculture, the State Soil and
Water Conservation Board, the Texas Agricultural Extension Service,
the Texas Department of Health, the Texas Natural Resource
Conservation Commission, and the Texas Structural Pest Control
Board.  Requires the authority to file a report with the governor,
lieutenant governor, and speaker of the house of representatives
regarding the authority's plan for making the use of penalties in
pesticide enforcement matters consistent among the agencies studied
by the authority.

SECTION 10.05.  TRANSITION: PESTICIDE REGISTRATION.  Declares that
a pesticide that is in effect on the effective date of this Act
remains in effect until the earlier of the date on which the
registration expires or is revoked by the department.

SECTION 10.06.  TRANSITION: COLLECTION OF ADMINISTRATIVE PENALTY. 
Makes application of this Act prospective.

SECTION 10.07.  TRANSITION: COMPOSITION OF BOARDS.  Makes
application of this Act prospective relating to requirements for
the appointed members of the boards of directors of the
Agricultural Resources Protection Authority and the Texas
Agricultural Finance Authority.

SECTION 10.08.  Repealer: Section 12.027, Agriculture Code
(Competitive Cost Review Program); Section 13.115(b), Agriculture
Code (Fees for Department Inspection); Chapter 13D, Agriculture
Code (Measurement of Butterfat Content of Dairy Products); Chapter
14B (Agriculture Warehouse Corporations); Chapter 15B, (Program
Administered by Department); Chapter 16 (Antifreeze Regulation);
Chapter 57 (Agricultural Development Corporations); Section
58.021(d), Agriculture Code (Fund); Chapter 112, Agriculture Code
(Cotton Classing); Section 132.022(e), Agriculture Code (License
Categories); Section 132.026(c), Agriculture Code (Fee for Dealer-Wholesaler License); Section 132.027(c), Agriculture Code (Fee for
a Processor's License); and Article 6701i, V.T.C.S. (Brake fluids;
marketing regulated; penalties).

SECTION 10.09.  Effective date: September 1, 1995.

SECTION 10.10.  Emergency clause.