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.