By Swinford H.B. No. 2505
74R3731 MWV-D
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) "Contract feeder" means a person who:
2-6 (A) contracts with the owner of animals to care
2-7 for and feed the animals solely at the person's place of business;
2-8 (B) uses only the person's own feed facilities,
2-9 labor, supplies, and feedstuffs; and
2-10 (C) bills the owner of the animals at regular
2-11 intervals on the basis of the cost of the feedstuffs and a charge
2-12 for the use of the person's facilities and services.
2-13 (7) "Cotton plant by-products" means the residue from
2-14 the ginning of cotton.
2-15 (8) <(7)> "Customer-formula feed" means a mixture of
2-16 commercial feed or feed material all or part of which is furnished
2-17 by the person who processes, mixes, mills, or otherwise prepares
2-18 the mixture and which is mixed according to the specific
2-19 instructions of the purchaser. The term includes a special formula
2-20 feed or a made-to-order feed.
2-21 (9) <(8)> "Director" means the director of the Texas
2-22 Agricultural Experiment Station.
2-23 (10) <(9)> "Distribute" means sell, offer for sale,
2-24 barter, exchange, or otherwise supply.
2-25 (11) "Feed facility" means a site where feed, a
2-26 component of feed, or feed ingredients are mixed, custom blended,
2-27 ground, unground, manufactured, milled, bagged, or processed.
3-1 (12) <(10)> "Ingredient" means a constituent material
3-2 of commercial feed.
3-3 (13) <(11)> "Label" means a display of written,
3-4 printed, or graphic matter on or affixed to or wrapped with a
3-5 container or on an invoice or delivery slip.
3-6 (14) "Licensee" means a person who obtains a license
3-7 to operate a feed facility under this chapter.
3-8 (15) <(12)> "Official sample" means a sample of feed
3-9 taken by the service and designated as official by the service.
3-10 (16) "Product" means the name of the commercial feed
3-11 that identifies it to kind, class, or specific use and includes the
3-12 brand, term, trademark, or other specific designation under which
3-13 commercial feed is distributed in this state.
3-14 (17) <(13)> "Purchaser" means a person who buys or
3-15 otherwise acquires a commercial feed, customer-formula feed, or
3-16 custom-mix or custom-mill service.
3-17 (18) <(14) "Registrant" means a person who registers a
3-18 commercial feed under this chapter.>
3-19 <(15)> "Service" means the Texas Feed and Fertilizer
3-20 Control Service.
3-21 (19) <(16)> "Ton" means a net weight of 2,000 pounds
3-22 avoirdupois or 1,000 kilograms metric.
3-23 (20) <(17)> "Weight" means net weight of a container
3-24 of commercial feed expressed in either the avoirdupois or metric
3-25 system.
3-26 SECTION 2. Section 141.002(c), Agriculture Code, is amended
3-27 to read as follows:
4-1 (c) The following are not commercial feeds subject to this
4-2 chapter:
4-3 (1) unground hay not containing toxins or chemical
4-4 adulterants;
4-5 (2) whole grain or whole seed not containing toxins or
4-6 chemical adulterants;
4-7 (3) unadulterated cotton plant by-products or any
4-8 unadulterated <cottonseed, peanut, or rice> hulls;
4-9 (4) a feed product produced and sold by a farmer or a
4-10 feed that is produced and consumed by a contract feeder;
4-11 (5) an individual mineral substance not mixed with
4-12 another material; <or>
4-13 (6) a material furnished by a purchaser for use in a
4-14 customer-formula feed that was produced by the purchaser or
4-15 acquired by the purchaser from a source other than the person whose
4-16 services are engaged in the milling, mixing, or processing of a
4-17 customer-formula feed; or
4-18 (7) a feed or feed ingredient handled by a broker.
4-19 SECTION 3. Section 141.021, Agriculture Code, is amended to
4-20 read as follows:
4-21 Sec. 141.021. LICENSE <PERMIT AND REGISTRATION> REQUIRED.
4-22 (a) A person may not manufacture or distribute commercial feed in
4-23 this state without a valid current license for each feed facility
4-24 that manufacturers or distributes commercial feed. A person making
4-25 only retail sales of commercial feed bearing the label of a
4-26 licensed manufacturer, guarantor, or distributor is not required to
4-27 obtain a license <permit issued by the service, and a person may
5-1 not manufacture or distribute a commercial feed in this state,
5-2 other than a customer-formula feed, unless the person first
5-3 registers the feed with the service>.
5-4 (b) An application for a license <permit or registration>
5-5 shall be submitted on a form prescribed and provided by the service
5-6 and accompanied by a license fee not to exceed $75 for each
5-7 facility, as provided by department rule.
5-8 (c) A licensee or license applicant shall provide the
5-9 service copies of labels and labeling and other information that
5-10 the service by rule requires <Registration is required for each
5-11 distinct mixture, formulation, or type of commercial feed
5-12 manufactured or distributed in this state>.
5-13 (d) A person applying for a license after the 30th day
5-14 following receipt of notice to obtain a license and a licensee
5-15 applying late for a license renewal shall pay a $75 late fee in
5-16 addition to the license fee <is not required to register a
5-17 commercial feed that has been registered by another person>.
5-18 SECTION 4. Section 141.023, Agriculture Code, is amended to
5-19 read as follows:
5-20 Sec. 141.023. TERM OF LICENSE <PERMIT AND REGISTRATION>. A
5-21 license <permit or registration> issued under this chapter is
5-22 permanent unless:
5-23 (1) the service revokes, suspends, annuls, or amends
5-24 the license <permit or registration>;
5-25 (2) the licensee <permittee or registrant> withdraws
5-26 or cancels the license <permit or registration>; <or>
5-27 (3) the licensee's report to the service indicates no
6-1 activity for one year; or
6-2 (4) the service requires a new license <permit or new
6-3 registration>.
6-4 SECTION 5. Section 141.025, Agriculture Code, is amended to
6-5 read as follows:
6-6 Sec. 141.025. REFUSAL OR REVOCATION OF LICENSE <PERMIT>.
6-7 Following notice and a hearing, the service may revoke, suspend,
6-8 annul, or amend an existing license <permit> or may refuse to issue
6-9 a license <permit> if it finds that the licensee <permittee> or
6-10 applicant has:
6-11 (1) been convicted of a crime for which a license
6-12 <permit> may be revoked, suspended, annulled, amended, or refused
6-13 under Article 6252-13c, Revised Statutes;
6-14 (2) refused or after notice failed to comply with this
6-15 chapter and rules adopted under this chapter; or
6-16 (3) used fraudulent or deceptive practices in
6-17 attempting evasion of this chapter or a rule adopted under this
6-18 chapter.
6-19 SECTION 6. Section 141.051(a), Agriculture Code, is amended
6-20 to read as follows:
6-21 (a) Except as provided by Subsection (d) of this section,
6-22 each container of commercial feed distributed in this state, other
6-23 than customer-formula feed, must have a label with the following
6-24 information:
6-25 (1) the name and principal address of the person
6-26 responsible for manufacture and distribution;
6-27 (2) the brand or name under which the feed is to be
7-1 distributed;
7-2 (3) the quantity <net weight> of the feed in the
7-3 container, in either net weight, net volume contents, or net fluid
7-4 content according to rules adopted by the service <with specific
7-5 designation of the weight system used>;
7-6 (4) the guaranteed analysis of nutrients in the feed,
7-7 listing a maximum or minimum quantity determinable by laboratory
7-8 methods of protein, fat, fiber, and other components of commercial
7-9 feed;
7-10 (5) the common or usual name of each ingredient used
7-11 in the feed;
7-12 (6) <the name and percentage of any hulls, shells,
7-13 screenings, straw, stalks, corncobs, or other low grade feeding
7-14 materials or fillers in the feed, if any;>
7-15 <(7)> an appropriate warning statement and directions
7-16 for use relating to each medicine, drug, mineral, vitamin,
7-17 antibiotic, or antioxidant in the feed; and
7-18 (7) <(8)> other information that the service may by
7-19 rule require.
7-20 SECTION 7. Section 141.071, Agriculture Code, is amended to
7-21 read as follows:
7-22 Sec. 141.071. Inspection Fee. (a) For each state fiscal
7-23 year, a person who manufactures or distributes commercial feed or a
7-24 component of commercial feed in this state, including a person who
7-25 mixes, mills, or processes customer-formula feed, shall pay to the
7-26 service an inspection fee prescribed by this section.
7-27 (b) Except as otherwise provided by this section, the
8-1 inspection fee is 17 <15> cents per ton of commercial feed. With
8-2 the approval of the board, the director may reduce or increase the
8-3 inspection in increments of 1 cent up to a maximum of 2 cents per
8-4 fiscal year, except that the board and director shall reduce the
8-5 inspection fee by 1 cent increments when the balance of the Texas
8-6 feed control fund exceeds one-half the operating expenses of the
8-7 service at the end of a fiscal year.
8-8 (c) <A person distributing in this state a commercial feed
8-9 product packaged in individual containers of five pounds or less
8-10 shall pay, for each distinct commercial feed product so
8-11 distributed, a flat rate inspection fee of $50 for each fiscal year
8-12 or part of a fiscal year in which the distribution is made.>
8-13 <(d)> A licensee <registrant> paying an inspection fee under
8-14 Subsection (b) of this section shall pay in advance a minimum
8-15 annual inspection fee of $100 per fiscal year. All advance
8-16 inspection fees collected under this section shall be credited
8-17 towards the first tonnage inspection fee owed by the licensee
8-18 <registrant> accruing in that fiscal year.
8-19 (d) <(e)> A person is not required to pay an inspection fee
8-20 on a portion of a customer-formula feed that is produced by the
8-21 purchaser or acquired by the purchaser from a source other than the
8-22 person who mixes, mills, or processes the mixture.
8-23 (e) <(f)> The service by rule may provide that a person is
8-24 not required to pay an inspection fee on commercial feed that the
8-25 person manufactures or distributes solely for investigational,
8-26 experimental, or laboratory use by qualified persons, if the
8-27 investigation or experiment is conducted in the public interest.
9-1 SECTION 8. Section 141.072, Agriculture Code, is amended to
9-2 read as follows:
9-3 Sec. 141.072. Quarterly Tonnage Reporting and Inspection Fee
9-4 Payment. (a) The person responsible for paying the inspection fee
9-5 for a feed facility generating $100 or more during a license year
9-6 from tonnage fees shall file with the service a quarterly sworn
9-7 report either stating that no tonnage of commercial feed was
9-8 distributed during the preceding quarter or setting forth the
9-9 tonnage of all commercial feed that the feed facility <person>
9-10 manufactured or distributed in this state during the preceding
9-11 quarter. Each quarterly tonnage report must be accompanied by
9-12 payment of the inspection fee due based on the tonnage reported for
9-13 that quarter.
9-14 (b) The person responsible for paying the inspection fee for
9-15 a feed facility producing less than $100 a license year in tonnage
9-16 fees shall file with the service an annual sworn report either
9-17 stating that no tonnage of commercial feed was distributed during
9-18 the preceding license year or stating the tonnage of all commercial
9-19 feed the facility manufactured and distributed in this state during
9-20 the preceding license year. Each annual tonnage report must be
9-21 accompanied by payment of the inspection fee due based on the
9-22 tonnage reported for that year.
9-23 (c) A quarterly tonnage report and inspection fee payment is
9-24 due on or before the 31st day following the last day of November,
9-25 February, May, and August for persons reporting quarterly. An
9-26 annual tonnage report and inspection fee payment is due on or
9-27 before the 31st day following the last day of August for persons
10-1 reporting annually.
10-2 (d) <(c)> The service may prescribe and furnish forms as
10-3 necessary under this section.
10-4 SECTION 9. Section 141.073(b), Agriculture Code, is amended
10-5 to read as follows:
10-6 (b) The penalty together with any delinquent inspection
10-7 fee<,> is due before the 61st <41st> day following the last day of
10-8 the quarter. The service shall cancel the license of a licensee
10-9 <registration of a registrant> who fails to pay the penalty and
10-10 delinquent inspection fee within that time period after notice.
10-11 SECTION 10. Section 141.074(a), (c), and (d), Agriculture
10-12 Code, are amended to read as follows:
10-13 (a) For the purpose of determining the accurate tonnage of
10-14 commercial feed distributed in this state or identify or verify
10-15 <quarterly> tonnage reports, the service may require each licensee
10-16 <registrant> to maintain records or file additional reports.
10-17 (c) Unless otherwise authorized by the service, a licensee
10-18 <registrant> shall preserve and maintain the records under this
10-19 section in usable condition for at least two years. The service
10-20 may require a licensee <registrant> to retain the records for a
10-21 period longer than two years if the service determines it to be in
10-22 the public interest.
10-23 (d) If a licensee <registrant> is located outside this
10-24 state, the licensee <registrant> shall maintain records required
10-25 under this section in this state or pay all costs incurred in the
10-26 auditing of the records at another location. The service shall
10-27 promptly furnish to the licensee <registrant> an itemized statement
11-1 of any costs incurred in an out-of-state audit and the licensee
11-2 <registrant> shall pay the costs before the 31st day following the
11-3 date of the statement.
11-4 SECTION 11. Section 141.075(b), Agriculture Code, is amended
11-5 to read as follows:
11-6 (b) The Texas feed control fund shall be used, with the
11-7 approval and consent of the board, for administering this chapter,
11-8 including paying the cost of:
11-9 (1) equipment and facilities;
11-10 (2) inspection, sampling, and analysis;
11-11 (3) licensing <registration>;
11-12 (4) salaries; and
11-13 (5) publication of bulletins and reports.
11-14 SECTION 12. Section 141.121(c), Agriculture Code, is amended
11-15 to read as follows:
11-16 (c) A stop-sale order expires at the end of the 30th <10th>
11-17 day following the day on which it was affixed unless, prior to that
11-18 time, the service has instituted proceedings under Section 141.122
11-19 of this code to condemn the feed.
11-20 SECTION 13. Sections 141.122(c) and (d), Agriculture Code,
11-21 are amended to read as follows:
11-22 (c) If the court finds that a violation of this chapter may
11-23 be corrected by proper processing or labeling, the court may order
11-24 that the feed be delivered to the licensee <registrant> of the feed
11-25 for processing or labeling under the supervision of the service.
11-26 Before entering that order, the court shall:
11-27 (1) enter the decree;
12-1 (2) require that all costs, fees, and expenses be
12-2 paid; and
12-3 (3) require the licensee <registrant> of the feed to
12-4 post good and sufficient bond conditioned on the proper labeling
12-5 and processing of the feed.
12-6 (d) The licensee <registrant> of the feed shall pay all
12-7 costs incurred by the service in the supervision of labeling or
12-8 processing under Subsection (c) of this section. The court shall
12-9 return the bond to the licensee <registrant> when the service
12-10 notifies the court that the commercial feed is no longer in
12-11 violation of this chapter and that the licensee <registrant> has
12-12 paid the expenses of supervision.
12-13 SECTION 14. Section 141.148(a), Agriculture Code, is amended
12-14 to read as follows:
12-15 (a) A person commits an offense if the person distributes,
12-16 conspires to distribute, or causes another person to distribute
12-17 commercial feed:
12-18 (1) that is of a composition, quantity, or quality
12-19 that is below or is different from that which it is represented to
12-20 possess by its label;
12-21 (2) that is moldy, sour, heated, or otherwise damaged,
12-22 because of which it is injurious to animals;
12-23 (3) from which an ingredient has been omitted or
12-24 extracted in whole or in part;
12-25 (4) that is inferior or is damaged and the inferiority
12-26 or damage has been concealed;
12-27 (5) to which a substance has been added or with which
13-1 a substance has been mixed or packed so as to deceptively increase
13-2 its bulk or weight, reduce its quality or strength, or make it
13-3 appear better or of greater value than it is;
13-4 (6) that contains or bears a poisonous or deleterious
13-5 substance that may render it injurious to animals under ordinary
13-6 conditions of use;
13-7 (7) that contains a low-grade feeding material or
13-8 filler but is not labeled in accordance with Section 141.054 of
13-9 this code;
13-10 (8) that consists in whole or in part of a diseased,
13-11 filthy, putrid, or decomposed substance, unless the substance has
13-12 been rendered harmless by sterilization or other effective process;
13-13 <or>
13-14 (9) that is otherwise unfit for feeding to animals; or
13-15 (10) that has been intentionally subjected to
13-16 radiation, unless the use of the radiation was in conformity with a
13-17 regulation or exemption in effect under 21 U.S.C. Section 348.
13-18 SECTION 15. Subchapter G, Chapter 141, Agriculture Code, is
13-19 amended by adding Section 141.149 to read as follows:
13-20 Sec. 141.149. RULES; PENALTY. (a) The service shall adopt
13-21 rules that conform to current good manufacturing practices as
13-22 established under 21 U.S.C. Section 360b for the use of drugs in
13-23 the manufacture, processing, and packaging of commercial feed
13-24 unless the service determines that those practices are not
13-25 appropriate to conditions existing in this state.
13-26 (b) A person commits an offense if the person violates a
13-27 rule adopted under Subsection (a). An offense under this section
14-1 is a Class C misdemeanor unless it is shown that the person has
14-2 previously been convicted of an offense under this subchapter, in
14-3 which event it is a Class B misdemeanor.
14-4 SECTION 16. Sections 141.022, 141.024, and 141.026,
14-5 Agriculture Code, are repealed.
14-6 SECTION 17. This Act takes effect September 1, 1995.
14-7 SECTION 18. The importance of this legislation and the
14-8 crowded condition of the calendars in both houses create an
14-9 emergency and an imperative public necessity that the
14-10 constitutional rule requiring bills to be read on three several
14-11 days in each house be suspended, and this rule is hereby suspended.