74R10132 E
By Swinford H.B. No. 2505
Substitute the following for H.B. No. 2505:
By Walker C.S.H.B. No. 2505
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to commercial animal feed; providing a penalty.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 141.001, Agriculture Code, is amended to
1-5 read as follows:
1-6 Sec. 141.001. Definitions. In this chapter:
1-7 (1) "Animal" means an animate being that is not human
1-8 and has the power of voluntary action.
1-9 (2) "Board" means the board of regents of The Texas
1-10 A&M University System.
1-11 (3) "Broker" means a person who is employed on a
1-12 commission basis to sell property for another person. The term
1-13 does not include a person who:
1-14 (A) has possession or absolute control over the
1-15 property that is to be sold;
1-16 (B) receives a salary; or
1-17 (C) acts for one party to the exclusion of all
1-18 others <"Brand" means the term, design, or trademark or other
1-19 specific designation under which a commercial feed is distributed
1-20 in this state>.
1-21 (4) "Bulk" means any lot of commercial feed that is
1-22 not in a closed container at the time it passes to the possession
1-23 of the consumer and includes that feed at any stage of
1-24 distribution.
2-1 (5) "Container" means a bag, box, barrel, bottle,
2-2 package, carton, object, apparatus, device, or appliance in which
2-3 commercial feed is packed, stored, or placed for handling,
2-4 transporting, or distributing.
2-5 (6) "Cotton plant by-products" means the residue from
2-6 the ginning of cotton.
2-7 (7) "Customer-formula feed" means a mixture of
2-8 commercial feed or feed material all or part of which is furnished
2-9 by the person who processes, mixes, mills, or otherwise prepares
2-10 the mixture and which is mixed according to the specific
2-11 instructions of the purchaser. The term includes a special formula
2-12 feed or a made-to-order feed.
2-13 (8) "Director" means the director of the Texas
2-14 Agricultural Experiment Station.
2-15 (9) "Distribute" means sell, offer for sale, barter,
2-16 exchange, or otherwise supply.
2-17 (10) "Feed facility" means a site where feed, a
2-18 component of feed, or feed ingredients are mixed, custom blended,
2-19 ground, unground, manufactured, milled, bagged, salvaged, or
2-20 processed.
2-21 (11) "Ingredient" means a constituent material of
2-22 commercial feed.
2-23 (12) <(11)> "Label" means a display of written,
2-24 printed, or graphic matter on or affixed to or wrapped with a
2-25 container or on an invoice or delivery slip.
2-26 (13) "Licensee" means a person who obtains a license
2-27 to operate a feed facility under this chapter.
3-1 (14) <(12)> "Official sample" means a sample of feed
3-2 taken by the service and designated as official by the service.
3-3 (15) "Product" means the name of the commercial feed
3-4 that identifies it to kind, class, or specific use and includes the
3-5 brand, term, trademark, or other specific designation under which
3-6 commercial feed is distributed in this state.
3-7 (16) <(13)> "Purchaser" means a person who buys or
3-8 otherwise acquires a commercial feed, customer-formula feed, or
3-9 custom-mix or custom-mill service.
3-10 (17) <(14) "Registrant" means a person who registers a
3-11 commercial feed under this chapter.>
3-12 <(15)> "Service" means the Texas Feed and Fertilizer
3-13 Control Service.
3-14 (18) <(16)> "Ton" means a net weight of 2,000 pounds
3-15 avoirdupois or 1,000 kilograms metric.
3-16 (19) <(17)> "Weight" means net weight of a container
3-17 of commercial feed expressed in either the avoirdupois or metric
3-18 system.
3-19 SECTION 2. Section 141.002(c), Agriculture Code, is amended
3-20 to read as follows:
3-21 (c) The following are not commercial feeds subject to this
3-22 chapter:
3-23 (1) unground hay not containing toxins or chemical
3-24 adulterants;
3-25 (2) whole grain or whole seed not containing toxins or
3-26 chemical adulterants;
3-27 (3) unadulterated cotton plant by-products or any
4-1 unadulterated <cottonseed, peanut, or rice> hulls;
4-2 (4) a feed product produced and sold by a farmer;
4-3 (5) a feed mixed and used by a person who contracts
4-4 with the owner of animals to care for and feed the animals;
4-5 (6) an individual mineral substance not mixed with
4-6 another material; <or>
4-7 (7) <(6)> a material furnished by a purchaser for use
4-8 in a customer-formula feed that was produced by the purchaser or
4-9 acquired by the purchaser from a source other than the person whose
4-10 services are engaged in the milling, mixing, or processing of a
4-11 customer-formula feed; or
4-12 (8) a feed or feed ingredient handled by a broker.
4-13 SECTION 3. The heading to Subchapter B, Chapter 141,
4-14 Agriculture Code, is amended to read as follows:
4-15 SUBCHAPTER B. LICENSE <PERMIT AND REGISTRATION>
4-16 SECTION 4. Section 141.021, Agriculture Code, is amended to
4-17 read as follows:
4-18 Sec. 141.021. LICENSE <PERMIT AND REGISTRATION> REQUIRED.
4-19 (a) A person may not manufacture or distribute commercial feed in
4-20 this state without a valid current license issued by the service
4-21 for each feed facility that manufactures or distributes commercial
4-22 feed. A person making only retail sales of commercial feed bearing
4-23 the label of a licensed manufacturer, guarantor, or distributor is
4-24 not required to obtain a license <permit issued by the service, and
4-25 a person may not manufacture or distribute a commercial feed in
4-26 this state, other than a customer-formula feed, unless the person
4-27 first registers the feed with the service>.
5-1 (b) An application for a license <permit or registration>
5-2 shall be submitted on a form prescribed and provided by the service
5-3 and accompanied by a license fee not to exceed $75 for each
5-4 facility, as provided by department rule.
5-5 (c) A licensee or license applicant shall provide the
5-6 service copies of labels and labeling and other information that
5-7 the service by rule requires <Registration is required for each
5-8 distinct mixture, formulation, or type of commercial feed
5-9 manufactured or distributed in this state>.
5-10 (d) A person applying for a license after the 30th day
5-11 following receipt of notice to obtain a license and a licensee
5-12 applying late for a license renewal shall pay a $75 late fee in
5-13 addition to the license fee <is not required to register a
5-14 commercial feed that has been registered by another person>.
5-15 SECTION 5. Section 141.023, Agriculture Code, is amended to
5-16 read as follows:
5-17 Sec. 141.023. TERM OF LICENSE <PERMIT AND REGISTRATION>. A
5-18 license <permit or registration> issued under this chapter is
5-19 permanent unless:
5-20 (1) the service revokes, suspends, annuls, or amends
5-21 the license <permit or registration>;
5-22 (2) the licensee <permittee or registrant> withdraws
5-23 or cancels the license <permit or registration>; <or>
5-24 (3) the licensee's report to the service indicates no
5-25 activity for one year; or
5-26 (4) the service requires a new license <permit or new
5-27 registration>.
6-1 SECTION 6. Section 141.025, Agriculture Code, is amended to
6-2 read as follows:
6-3 Sec. 141.025. REFUSAL OR REVOCATION OF LICENSE <PERMIT>.
6-4 Following notice and a hearing, the service may revoke, suspend,
6-5 annul, or amend an existing license <permit> or may refuse to issue
6-6 a license <permit> if it finds that the licensee <permittee> or
6-7 applicant has:
6-8 (1) been convicted of a crime for which a license
6-9 <permit> may be revoked, suspended, annulled, amended, or refused
6-10 under Article 6252-13c, Revised Statutes;
6-11 (2) refused or after notice failed to comply with this
6-12 chapter and rules adopted under this chapter; or
6-13 (3) used fraudulent or deceptive practices in
6-14 attempting evasion of this chapter or a rule adopted under this
6-15 chapter.
6-16 SECTION 7. Section 141.051(a), Agriculture Code, is amended
6-17 to read as follows:
6-18 (a) Except as provided by Subsection (d) of this section,
6-19 each container of commercial feed distributed in this state, other
6-20 than customer-formula feed, must have a label with the following
6-21 information:
6-22 (1) the name and principal address of the person
6-23 responsible for manufacture and distribution;
6-24 (2) the brand or name under which the feed is to be
6-25 distributed;
6-26 (3) the quantity <net weight> of the feed in the
6-27 container, in either net weight, net volume contents, or net fluid
7-1 content according to rules adopted by the service <with specific
7-2 designation of the weight system used>;
7-3 (4) the guaranteed analysis of nutrients in the feed,
7-4 listing a maximum or minimum quantity determinable by laboratory
7-5 methods of protein, fat, fiber, and other components of commercial
7-6 feed;
7-7 (5) the common or usual name of each ingredient used
7-8 in the feed;
7-9 (6) <the name and percentage of any hulls, shells,
7-10 screenings, straw, stalks, corncobs, or other low grade feeding
7-11 materials or fillers in the feed, if any;>
7-12 <(7)> an appropriate warning statement and directions
7-13 for use relating to each medicine, drug, mineral, vitamin,
7-14 antibiotic, or antioxidant in the feed; and
7-15 (7) <(8)> other information that the service may by
7-16 rule require.
7-17 SECTION 8. Subchapter C, Chapter 141, Agriculture Code, is
7-18 amended by adding Section 141.055 to read as follows:
7-19 Sec. 141.055. REQUEST FOR LABEL REVIEW. (a) The service
7-20 shall:
7-21 (1) by rule adopt procedures that allow a licensee to
7-22 submit a product label to the service for review;
7-23 (2) review each product label submitted by a licensee
7-24 to determine compliance with the labeling requirements of this
7-25 subchapter;
7-26 (3) make a detailed report to the licensee regarding
7-27 changes to the label required for compliance with the service's
8-1 rules; and
8-2 (4) provide the licensee with the advice that the
8-3 service considers necessary to enable the licensee to comply with
8-4 the service's labeling rules.
8-5 (b) The service may not charge a fee for a review, a report,
8-6 or advice under this section.
8-7 SECTION 9. Sections 141.071(b) and (d), Agriculture Code,
8-8 are amended to read as follows:
8-9 (b) Except as otherwise provided by this section, the
8-10 inspection fee is 15 cents per ton of commercial feed. With the
8-11 approval of the board, the director may reduce or increase the
8-12 inspection in increments of 1 cent up to a maximum of 2 cents per
8-13 fiscal year, except that the board and director shall reduce the
8-14 inspection fee by 1 cent increments when the balance of the Texas
8-15 feed control fund exceeds one-half the projected operating expenses
8-16 of the service for the next fiscal year.
8-17 (d) A licensee <registrant> paying an inspection fee under
8-18 Subsection (b) of this section shall pay in advance a minimum
8-19 annual inspection fee of $100 per fiscal year. All advance
8-20 inspection fees collected under this section shall be credited
8-21 towards the first tonnage inspection fee owed by the licensee
8-22 <registrant> accruing in that fiscal year.
8-23 SECTION 10. Section 141.072, Agriculture Code, is amended to
8-24 read as follows:
8-25 Sec. 141.072. Quarterly Tonnage Reporting and Inspection Fee
8-26 Payment. (a) The person responsible for paying the inspection fee
8-27 for a feed facility generating $100 or more during a license year
9-1 in tonnage fees shall file with the service a quarterly sworn
9-2 report either stating that no tonnage of commercial feed was
9-3 distributed during the preceding quarter or setting forth the
9-4 tonnage of all commercial feed that the feed facility <person>
9-5 manufactured or distributed in this state during the preceding
9-6 quarter. Each quarterly tonnage report must be accompanied by
9-7 payment of the inspection fee due based on the tonnage reported for
9-8 that quarter.
9-9 (b) The person responsible for paying the inspection fee for
9-10 a feed facility producing less than $100 a license year in tonnage
9-11 fees shall file with the service an annual sworn report either
9-12 stating that no tonnage of commercial feed was distributed during
9-13 the preceding license year or stating the tonnage of all commercial
9-14 feed the facility manufactured and distributed in this state during
9-15 the preceding license year. Each annual tonnage report must be
9-16 accompanied by payment of the inspection fee due based on the
9-17 tonnage reported for that year.
9-18 (c) A quarterly tonnage report and inspection fee payment is
9-19 due on or before the 31st day following the last day of November,
9-20 February, May, and August for persons reporting quarterly. An
9-21 annual tonnage report and inspection fee payment is due on or
9-22 before the 31st day following the last day of August for persons
9-23 reporting annually.
9-24 (d) <(c)> The service may prescribe and furnish forms as
9-25 necessary under this section.
9-26 SECTION 11. Section 141.073(b), Agriculture Code, is amended
9-27 to read as follows:
10-1 (b) The penalty together with any delinquent inspection
10-2 fee<,> is due before the 61st <41st> day following the last day of
10-3 the quarter. The service shall cancel the license of a licensee
10-4 <registration of a registrant> who fails to pay the penalty and
10-5 delinquent inspection fee within that time period after notice.
10-6 SECTION 12. Sections 141.074(a), (c), and (d), Agriculture
10-7 Code, are amended to read as follows:
10-8 (a) For the purpose of determining the accurate tonnage of
10-9 commercial feed distributed in this state or identify or verify
10-10 <quarterly> tonnage reports, the service may require each licensee
10-11 <registrant> to maintain records or file additional reports.
10-12 (c) Unless otherwise authorized by the service, a licensee
10-13 <registrant> shall preserve and maintain the records under this
10-14 section in usable condition for at least two years. The service
10-15 may require a licensee <registrant> to retain the records for a
10-16 period longer than two years if the service determines it to be in
10-17 the public interest.
10-18 (d) If a licensee <registrant> is located outside this
10-19 state, the licensee <registrant> shall maintain records required
10-20 under this section in this state or pay all costs incurred in the
10-21 auditing of the records at another location. The service shall
10-22 promptly furnish to the licensee <registrant> an itemized statement
10-23 of any costs incurred in an out-of-state audit and the licensee
10-24 <registrant> shall pay the costs before the 31st day following the
10-25 date of the statement.
10-26 SECTION 13. Section 141.075(b), Agriculture Code, is amended
10-27 to read as follows:
11-1 (b) The Texas feed control fund shall be used, with the
11-2 approval and consent of the board, for administering this chapter,
11-3 including paying the cost of:
11-4 (1) equipment and facilities;
11-5 (2) inspection, sampling, and analysis;
11-6 (3) licensing <registration>;
11-7 (4) salaries; and
11-8 (5) publication of bulletins and reports.
11-9 SECTION 14. Section 141.121(c), Agriculture Code, is amended
11-10 to read as follows:
11-11 (c) A stop-sale order expires at the end of the 30th <10th>
11-12 day following the day on which it was affixed unless, prior to that
11-13 time, the service has instituted proceedings under Section 141.122
11-14 of this code to condemn the feed.
11-15 SECTION 15. Sections 141.122(c) and (d), Agriculture Code,
11-16 are amended to read as follows:
11-17 (c) If the court finds that a violation of this chapter may
11-18 be corrected by proper processing or labeling, the court may order
11-19 that the feed be delivered to the licensee <registrant> of the feed
11-20 for processing or labeling under the supervision of the service.
11-21 Before entering that order, the court shall:
11-22 (1) enter the decree;
11-23 (2) require that all costs, fees, and expenses be
11-24 paid; and
11-25 (3) require the licensee <registrant> of the feed to
11-26 post good and sufficient bond conditioned on the proper labeling
11-27 and processing of the feed.
12-1 (d) The licensee <registrant> of the feed shall pay all
12-2 costs incurred by the service in the supervision of labeling or
12-3 processing under Subsection (c) of this section. The court shall
12-4 return the bond to the licensee <registrant> when the service
12-5 notifies the court that the commercial feed is no longer in
12-6 violation of this chapter and that the licensee <registrant> has
12-7 paid the expenses of supervision.
12-8 SECTION 16. Section 141.143, Agriculture Code, is amended to
12-9 read as follows:
12-10 Sec. 141.143. Distribution of Commercial Feed Without
12-11 License <Registration>, Labeling, or Payment of Inspection Fee.
12-12 (a) A person commits an offense if the person distributes,
12-13 conspires to distribute, or causes another person to distribute
12-14 commercial feed:
12-15 (1) in violation of <that is required to be registered
12-16 but is not registered in accordance with> Subchapter B of this
12-17 chapter;
12-18 (2) that is not labeled in accordance with Subchapter
12-19 C of this chapter; or
12-20 (3) for which an inspection fee has not been paid in
12-21 accordance with Subchapter D of this chapter.
12-22 (b) An offense under this section is a Class C misdemeanor
12-23 unless it is shown that the person has previously been convicted of
12-24 an offense under this subchapter, in which event it is a Class B
12-25 misdemeanor.
12-26 SECTION 17. Section 141.148(a), Agriculture Code, is amended
12-27 to read as follows:
13-1 (a) A person commits an offense if the person distributes,
13-2 conspires to distribute, or causes another person to distribute
13-3 commercial feed:
13-4 (1) that is of a composition, quantity, or quality
13-5 that is below or is different from that which it is represented to
13-6 possess by its label;
13-7 (2) that is moldy, sour, heated, or otherwise damaged,
13-8 because of which it is injurious to animals;
13-9 (3) from which an ingredient has been omitted or
13-10 extracted in whole or in part;
13-11 (4) that is inferior or is damaged and the inferiority
13-12 or damage has been concealed;
13-13 (5) to which a substance has been added or with which
13-14 a substance has been mixed or packed so as to deceptively increase
13-15 its bulk or weight, reduce its quality or strength, or make it
13-16 appear better or of greater value than it is;
13-17 (6) that contains or bears a poisonous or deleterious
13-18 substance that may render it injurious to animals under ordinary
13-19 conditions of use;
13-20 (7) that contains a low-grade feeding material or
13-21 filler but is not labeled in accordance with Section 141.054 of
13-22 this code;
13-23 (8) that consists in whole or in part of a diseased,
13-24 filthy, putrid, or decomposed substance, unless the substance has
13-25 been rendered harmless by sterilization or other effective process;
13-26 <or>
13-27 (9) that is otherwise unfit for feeding to animals; or
14-1 (10) that has been intentionally subjected to
14-2 radiation, unless the use of the radiation was in conformity with a
14-3 regulation or exemption in effect under 21 U.S.C. Section 348.
14-4 SECTION 18. Subchapter G, Chapter 141, Agriculture Code, is
14-5 amended by adding Section 141.149 to read as follows:
14-6 Sec. 141.149. RULES; PENALTY. (a) The service shall adopt
14-7 rules that conform to but are not more strict than current good
14-8 manufacturing practices as established under 21 U.S.C. Section 360b
14-9 for the use of drugs in the manufacture, processing, and packaging
14-10 of commercial feed unless the service determines that those
14-11 practices are not appropriate to conditions existing in this state.
14-12 (b) A person commits an offense if the person violates a
14-13 rule adopted under Subsection (a). An offense under this section
14-14 is a Class C misdemeanor unless it is shown that the person has
14-15 previously been convicted of an offense under this subchapter, in
14-16 which event it is a Class B misdemeanor.
14-17 SECTION 19. Sections 141.022, 141.024, and 141.026,
14-18 Agriculture Code, are repealed.
14-19 SECTION 20. This Act takes effect January 1, 1996.
14-20 SECTION 21. The change in law made by this Act to Section
14-21 141.121(c), Agriculture Code, applies to a stop-sale order affixed
14-22 on or after the effective date of this Act. A stop-sale order
14-23 affixed before the effective date of this Act is governed by the
14-24 law as it existed immediately before the effective date of this
14-25 Act, and that law is continued in effect for that purpose.
14-26 SECTION 22. The importance of this legislation and the
14-27 crowded condition of the calendars in both houses create an
15-1 emergency and an imperative public necessity that the
15-2 constitutional rule requiring bills to be read on three several
15-3 days in each house be suspended, and this rule is hereby suspended.