By Gutierrez H.B. No. 2233
74R5417 JRD-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the certification of Texas agricultural products and
1-3 production processes by the Department of Agriculture; authorizing
1-4 the imposition of fees; and providing penalties.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Chapter 18, Agriculture Code, is amended to read
1-7 as follows:
1-8 CHAPTER 18. CERTIFICATION AND AGRICULTURAL PRODUCT
1-9 <ORGANIC> STANDARDS <AND CERTIFICATION>
1-10 SUBCHAPTER A. ORGANIC STANDARDS AND CERTIFICATION
1-11 Sec. 18.001. DEFINITIONS. In this subchapter <chapter>:
1-12 (1) "Distributor" means a person engaged in the
1-13 business of selling food or fiber for resale, including a
1-14 wholesaler, broker, packer, repacker, shipper, or shipping agent.
1-15 (2) "Logo" means the department's copyrighted "Texas
1-16 Department of Agriculture Certified Organic" or "Texas Department
1-17 of Agriculture Organic Certification Pending--Transitional"
1-18 logotype.
1-19 (3) "Organic certifying agent" means a private organic
1-20 certification organization accredited under this subchapter
1-21 <chapter>.
1-22 (4) "Organic farming" means a system of ecological
1-23 soil management that relies on building humus levels through crop
1-24 rotations, recycling organic wastes, and applying balanced mineral
2-1 amendments and that uses, when necessary, mechanical, botanical, or
2-2 biological controls with minimum adverse effects on health and
2-3 environment.
2-4 (5) "Organic food" includes only food that is produced
2-5 under a system of organic farming and processed, packaged,
2-6 transported, and stored to retain maximum nutritional value without
2-7 the use of artificial preservatives, coloring or other additives,
2-8 ionizing radiation, or synthetic pesticides.
2-9 (6) "Organic fiber" includes only fiber that is
2-10 produced under a system of organic farming and processed, packaged,
2-11 transported, and stored to maintain segregation and prevention of
2-12 contamination from other fiber or synthetic pesticides, prohibited
2-13 defoliants, or desiccants.
2-14 (7) "Processor" means a person who is engaged in the
2-15 business of manufacturing raw agricultural commodities into food,
2-16 feed, or fiber products.
2-17 (8) "Producer" means a person who is engaged in the
2-18 business of growing or producing food, feed, or fiber.
2-19 (9) "Retailer" means a person, other than a restaurant
2-20 operator, who is engaged in the business of selling food at retail,
2-21 other than at a restaurant, to its ultimate consumer.
2-22 Sec. 18.002. RULES. The department may adopt rules necessary
2-23 for the enforcement and administration of this subchapter
2-24 <chapter>.
2-25 Sec. 18.003. ORGANIC CERTIFICATION. (a) The department
2-26 shall certify producers, processors, distributors, and retailers of
2-27 organic food and fiber in this state. The department by rule shall
3-1 adopt minimum standards for certification under this subchapter
3-2 <chapter>.
3-3 (b) A person may apply for an organic certification, or a
3-4 renewal of an organic certification, by submitting an application
3-5 and a nonrefundable annual fee prescribed by the department.
3-6 (c) An organic certification expires on August 31 of each
3-7 year. A person who fails to submit a renewal fee on or before the
3-8 expiration date of the certification must pay, in addition to the
3-9 renewal fee, the late fee provided by Section 12.024 of this code.
3-10 (d) A person who is certified under this subchapter
3-11 <chapter> may use department logos as provided by department rule.
3-12 Sec. 18.004. ORGANIC CERTIFYING AGENT ACCREDITATION PROGRAM.
3-13 (a) The department by rule may accredit a person as an organic
3-14 certifying agent. On receipt of a certificate of accreditation
3-15 under this section, an organic certifying agent may certify for the
3-16 department a producer, processor, distributor, or retailer of
3-17 organic food or fiber under this subchapter <chapter>.
3-18 (b) A person may apply for a certificate of accreditation,
3-19 or a renewal of a certificate of accreditation, by submitting an
3-20 application and a nonrefundable annual fee prescribed by the
3-21 department.
3-22 (c) The department may issue a certificate of accreditation
3-23 under this section only if it determines that the applicant's
3-24 certification standards are equivalent to department certification
3-25 standards.
3-26 (d) A certificate of accreditation expires on the first
3-27 anniversary of the date of issuance. A person who fails to submit
4-1 a renewal fee on or before the expiration date of the certificate
4-2 of accreditation must pay, in addition to the renewal fee, the late
4-3 fee provided by Section 12.024 of this code.
4-4 (e) An organic certifying agent may not:
4-5 (1) provide an organic certification for a person with
4-6 whom the organic certifying agent, or an employee of the organic
4-7 certifying agent, has, or has had, a commercial relationship,
4-8 including providing consulting services;
4-9 (2) accept payment, gifts, or other favors of any kind
4-10 from a person seeking certification, other than fees permitted by
4-11 this subchapter <chapter>; or
4-12 (3) charge a fee other than a fee prescribed by this
4-13 subchapter <chapter> for providing advice about organic practices
4-14 or techniques.
4-15 Sec. 18.005. USE OF TERM "ORGANIC". A person may not label,
4-16 market, advertise, or represent as "organic" any food or fiber that
4-17 is sold, kept, offered, or exposed for sale, unless that person is:
4-18 (1) certified directly by the department under Section
4-19 18.003 of this code; or
4-20 (2) certified by an organic certifying agent under
4-21 Section 18.004 of this code.
4-22 Sec. 18.006. FEES. (a) The department may charge an annual
4-23 fee not to exceed $2,500 for each applicant certified as a
4-24 producer, distributor, or retailer and a fee not to exceed $5,000
4-25 for each applicant certified as a processor of organic food or
4-26 fiber produced in this state.
4-27 (b) The department may charge an annual fee not to exceed
5-1 $2,500 for each applicant certified as a distributor or retailer
5-2 and a fee not to exceed $5,000 for each applicant certified as a
5-3 processor of organic food or fiber produced outside of this state.
5-4 (c) The department may charge an annual fee not to exceed
5-5 $2,500 for a person who obtains a certificate of accreditation as
5-6 an organic certifying agent.
5-7 (d) The department shall set fees under this subchapter
5-8 <chapter> in amounts that enable it to recover the costs of
5-9 administering this subchapter <chapter>.
5-10 Sec. 18.007. DENIAL, SUSPENSION, OR REVOCATION OF ORGANIC
5-11 CERTIFICATION OR ORGANIC CERTIFYING AGENT ACCREDITATION. The
5-12 department may deny, suspend, or revoke a certification of a
5-13 producer, processor, distributor, or retailer or a certificate of
5-14 accreditation issued to an organic certifying agent under this
5-15 subchapter <chapter> if the person to whom the certification or
5-16 accreditation was issued:
5-17 (1) makes a false representation material to a matter
5-18 governed by this subchapter <chapter>; or
5-19 (2) violates or refuses to comply with this subchapter
5-20 <chapter> or a rule or instruction of the department under this
5-21 subchapter <chapter>.
5-22 Sec. 18.008. PENALTY. (a) A person commits an offense if
5-23 the person knowingly:
5-24 (1) violates this subchapter <chapter>; or
5-25 (2) fails to comply with a notice, order, or rule of
5-26 the department under this subchapter <chapter>.
5-27 (b) An offense under this section is a Class C misdemeanor.
6-1 Sec. 18.009. CIVIL PENALTY; INJUNCTION. (a) A person who
6-2 violates this subchapter <chapter> or a rule adopted under this
6-3 subchapter <chapter> is liable to the state for a civil penalty not
6-4 to exceed $500 for each violation. Each day a violation continues
6-5 is a separate violation for purposes of a civil penalty assessment.
6-6 (b) On request of the department, the attorney general or
6-7 the county attorney or district attorney of the county in which the
6-8 violation is alleged to have occurred shall file suit to collect
6-9 the penalty.
6-10 (c) A civil penalty collected under this section shall be
6-11 deposited in the general revenue fund. All civil penalties
6-12 recovered in suits instituted by a county or district attorney
6-13 under this section shall be divided between the state and the
6-14 county in which the county or district attorney brought suit, with
6-15 50 percent of the recovery to be paid to the general revenue fund
6-16 and 50 percent to the county.
6-17 (d) The department is entitled to appropriate injunctive
6-18 relief to prevent or abate a violation of this subchapter <chapter>
6-19 or a rule adopted under this subchapter <chapter>. On request of
6-20 the department, the attorney general or the county or district
6-21 attorney of the county in which the alleged violation is threatened
6-22 or occurring shall file suit for the injunctive relief. Venue is
6-23 in the county in which the alleged violation is threatened or is
6-24 occurring.
6-25 (e) This section is applicable only if the department
6-26 chooses to use civil remedy as opposed to criminal penalty under
6-27 Section 18.008.
7-1 Sec. 18.010. STOP-SALE ORDER. (a) If food or fiber is
7-2 being sold in violation of this subchapter <chapter> or a rule
7-3 adopted under this subchapter <chapter>, the department may issue a
7-4 written order to stop the sale of that item of food or fiber by a
7-5 person in control of the item. The person named in the order may
7-6 not sell the item until:
7-7 (1) permitted by a court under Subsection (b) of this
7-8 section; or
7-9 (2) the department determines that the sale of the
7-10 item is in compliance with this subchapter <chapter> and rules
7-11 adopted under this subchapter <chapter>.
7-12 (b) The person named in the order may bring suit in a court
7-13 in the county where the item is located. After a hearing, the
7-14 court may permit the item to be sold if the court finds the item is
7-15 not being sold in violation of this subchapter <chapter> or a
7-16 department rule issued under this subchapter <chapter>.
7-17 (c) This section does not limit the department's right to
7-18 act under another section of this subchapter <chapter>.
7-19 (Sections 18.011-18.050 reserved for expansion
7-20 SUBCHAPTER B. AGRICULTURAL PRODUCT STANDARDS
7-21 Sec. 18.051. PRODUCT CERTIFICATION PROGRAMS. (a) The
7-22 department may establish certification programs relating to the
7-23 protection, sale, advertising, marketing, transporting, or other
7-24 commercial handling of agricultural, horticultural, or related
7-25 products in this state if the department determines that a
7-26 certification program is warranted to:
7-27 (1) ensure genetic purity, identity, or disease or
8-1 pest resistance; or
8-2 (2) help prevent the spread of insects, other pests,
8-3 diseases, or pathogens.
8-4 (b) The department may regulate the use of the term "Texas
8-5 Certified Product," other terms that indicate product quality
8-6 standards, and symbols connected with those terms as used with a
8-7 product regulated under this subchapter.
8-8 Sec. 18.052. STANDARDS. The department, by rule, may
8-9 develop minimum certification standards for the administration and
8-10 enforcement of this subchapter.
8-11 Sec. 18.053. FEES. The department may set fees under this
8-12 subchapter in amounts that do not exceed the amounts reasonably
8-13 necessary to enable the department to recover the costs of
8-14 administering this subchapter.
8-15 Sec. 18.054. CIVIL PENALTY; INJUNCTION. (a) A person who
8-16 violates this subchapter or a rule adopted by the department under
8-17 this subchapter is liable for a civil penalty not to exceed $500
8-18 for each violation. Each day a violation continues is a separate
8-19 violation for purposes of assessment of a civil penalty under this
8-20 section.
8-21 (b) A civil penalty recovered by the department under this
8-22 section shall be deposited in the general revenue fund. A civil
8-23 penalty recovered in an action instituted by a local government
8-24 under this section shall be equally divided between this state and
8-25 the local government, with 50 percent of the penalty recovered paid
8-26 to the general revenue fund and the other 50 percent to the general
8-27 fund of the local government first instituting the action.
9-1 (c) On request of the department, the attorney general or
9-2 the county attorney or district attorney of the county in which the
9-3 violation is alleged to have occurred shall bring an action to
9-4 collect the civil penalty.
9-5 (d) The department is entitled to appropriate injunctive
9-6 relief to prevent or abate a violation of this subchapter or a rule
9-7 adopted under this subchapter. On the request of the department,
9-8 the attorney general or the county attorney or district attorney of
9-9 the county in which the alleged violation is threatened or
9-10 occurring shall bring an action for the injunctive relief. Venue
9-11 for the action lies in the county in which the alleged violation is
9-12 threatened or occurring.
9-13 (Sections 18.055-18.070 reserved for expansion
9-14 SUBCHAPTER C. AGRICULTURAL PRODUCTION PROCESS
9-15 CERTIFICATION PROGRAM
9-16 Sec. 18.071. AGRICULTURAL CERTIFICATION. The department may
9-17 establish voluntary certification programs under this subchapter
9-18 relating to the protection, sale, advertising, marketing, or
9-19 related production processes in this state.
9-20 Sec. 18.072. CERTIFICATION STANDARDS. The department, by
9-21 rule, may develop programs establishing minimum certification
9-22 standards for production processes.
9-23 Sec. 18.073. FEES. The department may set fees under this
9-24 subchapter in amounts that do not exceed the amounts reasonably
9-25 necessary to enable the department to recover the costs of
9-26 administering this subchapter.
9-27 Sec. 18.074. ADMINISTRATIVE PENALTY. The department may
10-1 assess an administrative penalty under Section 12.020 of this code
10-2 if the department determines that a person is falsely claiming to
10-3 be certified under this subchapter.
10-4 SECTION 2. Section 12.020(c), Agriculture Code, is amended
10-5 to read as follows:
10-6 (c) The provisions of this code subject to this section and
10-7 the applicable penalty amounts are as follows:
10-8 Provision Maximum Penalty
10-9 Chapters 13, 14, 18, 61, 101, 102, 103, and 132 $ 500
10-10 Subchapter B, Chapter 71 $2,000
10-11 Subchapters A and C, Chapter 71
10-12 Chapters 72, 73, and 74 $5,000.
10-13 SECTION 3. This Act takes effect September 1, 1995.
10-14 SECTION 4. The importance of this legislation and the
10-15 crowded condition of the calendars in both houses create an
10-16 emergency and an imperative public necessity that the
10-17 constitutional rule requiring bills to be read on three several
10-18 days in each house be suspended, and this rule is hereby suspended.