S.B. No. 251
                                        AN ACT
    1-1  relating to the handling and marketing of citrus fruits and
    1-2  vegetables and to the produce recovery fund.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION 1.  Section 101.002, Agriculture Code, is amended by
    1-5  amending Subsection (a) to read as follows:
    1-6        (a)  This chapter applies to vegetables, whether or not
    1-7  packed in ice or held in cold storage<,> but only if grown in this
    1-8  state, and does not apply to vegetables that have been manufactured
    1-9  into an article of food of a different kind or character.
   1-10        SECTION 2.  Section 101.003, Agriculture Code, is amended by
   1-11  adding Subsection (c) to read as follows:
   1-12        (c)  A person who holds a license under this section is also
   1-13  considered, without paying an additional fee, to hold a license or
   1-14  be registered under Section 102.003 of this code.
   1-15        SECTION 3.  Section 101.004, Agriculture Code, is amended to
   1-16  read as follows:
   1-17        Sec. 101.004.  License Categories.  (a)  A person who is
   1-18  required by Section 101.003 of this code to be licensed or
   1-19  registered shall apply to the department for the appropriate
   1-20  <licensing in the> category described by this section that is
   1-21  appropriate to the actions of the person.
   1-22        (b)  A person shall apply for a license <licensing as a
   1-23  commission merchant> if the person:
   1-24              (1)  purchases vegetables on credit;
    2-1              (2)  takes possession of vegetables for consignment or
    2-2  handling on behalf of the producer or owner of the vegetables; or
    2-3              (3)  takes possession of vegetables for consignment or
    2-4  handling in a manner or under a contract that does not require or
    2-5  result in payment to the producer, seller, or consignor of the full
    2-6  amount of the purchase price in United States currency at the time
    2-7  of delivery or at the time that the vegetables pass from the
    2-8  producer, seller, or consignor to the person.
    2-9        (c)  A person shall register <apply for licensing> as a cash
   2-10  dealer if the person purchases vegetables and pays for the
   2-11  vegetables in United States currency before or at the time of
   2-12  delivery or taking possession.
   2-13        <(d)  A person shall apply for licensing as a retailer if the
   2-14  person:>
   2-15              <(1)  has annual sales of vegetables and citrus fruit
   2-16  that comprise 75 percent or more of the retailer's total sales; or>
   2-17              <(2)  employs a buying agent who buys directly from a
   2-18  producer.>
   2-19        SECTION 4.  Subsection (a), Section 101.005, Agriculture
   2-20  Code, is amended to read as follows:
   2-21        (a)  A person required under Section 101.003 of this code to
   2-22  be licensed or registered shall apply <for a license> to the
   2-23  department on a form furnished by the department.  The application
   2-24  must be made under oath and contain the following information:
   2-25              (1)  the full name of the applicant and whether the
   2-26  applicant is an individual, partnership, corporation, exchange, or
   2-27  association;
    3-1              (2)  the full name and address of the principal
    3-2  business office of the applicant;
    3-3              (3)  the address of the applicant's principal business
    3-4  office in this state;
    3-5              (4)  if the applicant is a foreign corporation, the
    3-6  state in which the corporation is chartered and the name and
    3-7  address of an agent in this state for service of legal process; and
    3-8              (5)  the length of time that the applicant has been
    3-9  engaged in business in this state<; and>
   3-10              <(6)  the category of license for which the applicant
   3-11  is applying>.
   3-12        SECTION 5.  Section 101.006, Agriculture Code, is amended to
   3-13  read as follows:
   3-14        Sec. 101.006.  <LICENSE> FEE.  (a)  Except as otherwise
   3-15  provided by this section, a person applying for a license shall
   3-16  include with the license application a license fee of $75.
   3-17        (b)  The registration <license> fee for a cash dealer is $25.
   3-18        <(c)  Except as otherwise provided by this section, a person
   3-19  who applies for a license as a commission merchant or retailer
   3-20  under both this chapter and Chapter 102 of this code is entitled to
   3-21  pay a single license fee of $75.  The person's license shall
   3-22  reflect that the person is licensed to handle both citrus fruit and
   3-23  vegetables.>
   3-24        <(d)  A person who applies for a license under Subsection (b)
   3-25  of this section and Subsection (b) of Section 102.006 of this code
   3-26  is entitled to pay a single license fee of $25.  The person's
   3-27  license shall reflect that the person is licensed to handle both
    4-1  citrus fruit and vegetables.>
    4-2        SECTION 6.  Subsections (a) and (b), Section 101.010,
    4-3  Agriculture Code, are amended to read as follows:
    4-4        (a)  In accordance with the rules of the department, a
    4-5  license holder <person licensed as a commission merchant or
    4-6  retailer> may apply to the department for a reasonable number of
    4-7  identification cards for:
    4-8              (1)  transporting agents to act for the license holder
    4-9  <licensee> in the transporting of vegetables; and
   4-10              (2)  buying agents to act for the license holder
   4-11  <licensee> in any act requiring licensing under Section 101.003 of
   4-12  this code.
   4-13        (b)  The department may collect a fee not to exceed $5 for
   4-14  each card and shall issue transporting agent cards in a color
   4-15  different from buying agent cards.
   4-16        SECTION 7.  Subsection (a), Section 101.020, Agriculture
   4-17  Code, is amended to read as follows:
   4-18        (a)  A person commits an offense if the person:
   4-19              (1)  acts in violation of Section 101.003 of this code
   4-20  by not <without first> obtaining a license or registration or after
   4-21  receiving notice of cancellation of a license or registration;
   4-22              (2)  <acts or assumes to act as a commission merchant
   4-23  without first obtaining a license as a commission merchant;>
   4-24              <(3)>  acts or assumes to act as a transporting agent
   4-25  or buying agent without first obtaining an identification card;
   4-26              (3) <(4)>  as a transporting agent or buying agent,
   4-27  fails and refuses to turn over to the department an identification
    5-1  card in accordance with Section 101.010(e) of this code;
    5-2              (4) <(5)>  as a license holder <licensee>, fails to
    5-3  furnish information under Section 101.017 of this code before the
    5-4  11th day following the date of demand;
    5-5              (5) <(6)>  as a license holder <licensee>, fails to
    5-6  settle with a producer or seller on the grade and quality of
    5-7  vegetables in the manner provided by Section 101.015 of this code;
    5-8              (6) <(7)>  as a cash dealer, pays for vegetables by a
    5-9  means other than United States currency;
   5-10              (7) <(8)>  as a license holder <licensee>, transporting
   5-11  agent, or buying agent, violates a provision of this chapter; or
   5-12              (8) <(9)  acts or assumes to act as a retailer without
   5-13  first obtaining a license as a retailer; or>
   5-14              <(10)>  acts or assumes to act as a cash dealer without
   5-15  first registering <obtaining a license> as a cash dealer.
   5-16        SECTION 8.  Section 102.003, Agriculture Code, is amended by
   5-17  adding Subsection (c) to read as follows:
   5-18        (c)  A person who holds a license or is registered under this
   5-19  section is also considered, without paying an additional fee, to
   5-20  hold a license or be registered under Section 101.003 of this code.
   5-21        SECTION 9.  Section 102.004, Agriculture Code, is amended to
   5-22  read as follows:
   5-23        Sec. 102.004.  License Categories.  (a)  A person who is
   5-24  required by Section 102.003 of this code to be licensed or
   5-25  registered shall apply to the department for the appropriate
   5-26  <licensing in the> category described by this section that is
   5-27  appropriate to the actions of the person.
    6-1        (b)  A person shall apply for a license <licensing as a
    6-2  commission merchant> if the person:
    6-3              (1)  purchases citrus fruit on credit;
    6-4              (2)  takes possession of citrus fruit for consignment
    6-5  or handling on behalf of the producer or owner of the fruit; or
    6-6              (3)  takes possession of citrus fruit for consignment
    6-7  or handling in a manner or under a contract that does not require
    6-8  or result in payment to the producer, seller, or consignor of the
    6-9  full amount of the purchase price in United States currency at the
   6-10  time of delivery or at the time the citrus fruit passes from the
   6-11  producer or seller to the person.
   6-12        (c)  A person shall register <apply for licensing> as a cash
   6-13  dealer if the person purchases citrus fruit and pays for the citrus
   6-14  fruit in United States currency before or at the time of delivery
   6-15  or taking possession.
   6-16        <(d)  A person shall apply for licensing as a retailer if the
   6-17  person:>
   6-18              <(1)  has annual sales of citrus fruit and vegetables
   6-19  that comprise 75 percent or more of the retailer's total sales; or>
   6-20              <(2)  employs a buying agent who buys directly from a
   6-21  producer.>
   6-22        SECTION 10.  Subsection (a), Section 102.005, Agriculture
   6-23  Code, is amended to read as follows:
   6-24        (a)  A person required under Section 102.003 of this code to
   6-25  be licensed or registered shall apply for a license or registration
   6-26  to the department on a form furnished by the department.  The
   6-27  application must be made under oath and contain the following
    7-1  information:
    7-2              (1)  the full name of the applicant and whether the
    7-3  applicant is an individual, partnership, corporation, exchange, or
    7-4  association;
    7-5              (2)  the full name and address of the principal
    7-6  business office of the applicant;
    7-7              (3)  the address of the applicant's principal business
    7-8  office in this state;
    7-9              (4)  if the applicant is a foreign corporation, the
   7-10  state in which the corporation is chartered and the name and
   7-11  address of an agent in this state for service of legal process; and
   7-12              (5)  <the category of license for which the applicant
   7-13  is applying; and>
   7-14              <(6)>  the length of time that the applicant has been
   7-15  engaged in business in this state.
   7-16        SECTION 11.  Section 102.006, Agriculture Code, is amended to
   7-17  read as follows:
   7-18        Sec. 102.006.  <LICENSE> FEE.  (a)  Except as otherwise
   7-19  provided by this section, a person applying for a license shall
   7-20  include with the license application a license fee of $75.
   7-21        (b)  The registration <license> fee for a cash dealer is $25.
   7-22        <(c)  Except as otherwise provided by this section, a person
   7-23  who applies for a license as a commission merchant or retailer
   7-24  under both this chapter and Chapter 101 of this code is entitled to
   7-25  pay a single license fee of $75.  The person's license shall
   7-26  reflect that the person is licensed to handle both citrus fruit and
   7-27  vegetables.>
    8-1        <(d)  A person who applies for a license under Subsection (b)
    8-2  of this section and Subsection (b) of Section 101.006 of this code
    8-3  is entitled to pay a single license fee of $25.  The person's
    8-4  license shall reflect that the person is licensed to handle both
    8-5  citrus fruit and vegetables.>
    8-6        SECTION 12.  Subsections (a) and (b), Section 102.010,
    8-7  Agriculture Code, are amended to read as follows:
    8-8        (a)  In accordance with the rules of the department, a
    8-9  license holder <person licensed as a commission merchant or
   8-10  retailer> may apply to the department for a reasonable number of
   8-11  identification cards for:
   8-12              (1)  transporting agents to act for the license holder
   8-13  <licensee> in the transporting of citrus fruits; and
   8-14              (2)  buying agents to act for the license holder
   8-15  <licensee> in any act requiring licensing under Section 102.003 of
   8-16  this code.
   8-17        (b)  The department may collect a fee not to exceed $1 for
   8-18  each card and shall issue transporting agent cards in a color
   8-19  different from buying agent cards.
   8-20        SECTION 13.  Section 102.016, Agriculture Code, is amended to
   8-21  read as follows:
   8-22        Sec. 102.016.  BUYING BY WEIGHT.  A licensee who buys citrus
   8-23  fruit by weight shall weigh the fruit on state-registered
   8-24  <state-tested> scales.
   8-25        SECTION 14.  Subsection (a), Section 102.021, Agriculture
   8-26  Code, is amended to read as follows:
   8-27        (a)  A person commits an offense if the person:
    9-1              (1)  acts in violation of Section 102.003 of this code
    9-2  by not obtaining <without> a license or after receiving notice of
    9-3  cancellation of a license;
    9-4              (2)  <acts or assumes to act as a commission merchant
    9-5  without a license as a commission merchant;>
    9-6              <(3)>  acts or assumes to act as a transporting agent
    9-7  or buying agent without an identification card or after receiving
    9-8  notice of cancellation of an identification card;
    9-9              (3) <(4)>  as a transporting agent or buying agent,
   9-10  fails and refuses to turn over to the department an identification
   9-11  card in accordance with Section 102.010(e) of this code;
   9-12              (4) <(5)>  as a license holder <licensee>, fails to
   9-13  furnish information under Section 102.018 of this code before the
   9-14  11th day following the date of demand;
   9-15              (5) <(6)>  as a license holder <licensee>, buys citrus
   9-16  fruit by weight and does not have the fruit weighed on
   9-17  state-registered <state-tested> scales;
   9-18              (6) <(7)>  as a license holder <licensee>, fails to
   9-19  settle with a producer or seller on the grade and quality of citrus
   9-20  fruit in the manner provided by Section 102.015 of this code;
   9-21              (7) <(8)>  as a cash dealer, pays for citrus fruit by a
   9-22  means other than United States currency;
   9-23              (8) <(9)>  fails to maintain records required by
   9-24  Section 102.017(b) of this code;
   9-25              (9) <(10)>  as a license holder <licensee>,
   9-26  transporting agent, or buying agent, violates a provision of this
   9-27  subchapter; or
   10-1              (10) <(11)  acts or assumes to act as a retailer
   10-2  without a license as a retailer; or>
   10-3              <(12)>  acts or assumes to act as a cash dealer without
   10-4  being registered <a license> as a cash dealer.
   10-5        SECTION 15.  Section 103.005, Agriculture Code, is amended to
   10-6  read as follows:
   10-7        Sec. 103.005.  Initiation of Claim.  (a)  A person who deals
   10-8  with a license holder <commission merchant or retailer licensed>
   10-9  under Chapter 101 or 102 of this code in the purchasing, handling,
  10-10  selling, and accounting for sales of vegetables or citrus fruit and
  10-11  who is aggrieved by an action of the license holder <commission
  10-12  merchant or retailer> as a result of a violation of terms or
  10-13  conditions of a contract made by the license holder for the sale of
  10-14  Texas-grown produce <commission merchant or retailer> may initiate
  10-15  a claim against the fund by filing with the department:
  10-16              (1)  a sworn complaint against the license holder
  10-17  <commission merchant or retailer>; and
  10-18              (2)  a filing fee of $15.
  10-19        (b)  A complaint and the fee under Subsection (a) of this
  10-20  section must be filed on or before the first anniversary of the
  10-21  date of the violation, or recovery from the fund is barred.
  10-22        SECTION 16.  Section 103.0055, Agriculture Code, is amended
  10-23  to read as follows:
  10-24        Sec. 103.0055.  Bankruptcy of Merchant or Retailer.  For
  10-25  purposes of this chapter, the amount due an aggrieved party by a
  10-26  license holder <commission merchant or retailer> is not affected by
  10-27  a final judgment of a bankruptcy court that releases the license
   11-1  holder <commission merchant or retailer> from the legal duty to
   11-2  satisfy the claim.
   11-3        SECTION 17.  Subsection (a), Section 103.006, Agriculture
   11-4  Code, is amended to read as follows:
   11-5        (a)  After a claim is initiated, the department shall
   11-6  investigate the complaint and determine the amount due the
   11-7  aggrieved party.  If the amount determined by the department is
   11-8  disputed by the license holder <commission merchant or retailer> or
   11-9  the aggrieved party, the board shall conduct a hearing on the claim
  11-10  and determine the amount due the aggrieved party.
  11-11        SECTION 18.  Subsection (a), Section 103.007, Agriculture
  11-12  Code, is amended to read as follows:
  11-13        (a)  If the amount determined by the department's
  11-14  investigation to be due the aggrieved party is not disputed by the
  11-15  license holder <commission merchant or retailer> or the aggrieved
  11-16  party, the department shall pay the claim within the limits
  11-17  prescribed by this chapter.
  11-18        SECTION 19.  Section 103.008, Agriculture Code, is amended by
  11-19  amending Subsections (a), (b), (c), and (d) and adding Subsection
  11-20  (f) to read as follows:
  11-21        (a)  In making payments from the fund the department can <may
  11-22  not> pay the aggrieved party all of the first $1,000 of any claim
  11-23  and no more than 60 percent of the <any> claim above <for more
  11-24  than> $1,000.
  11-25        (b)  The total payment of all claims arising from the same
  11-26  contract with a license holder <transaction> may not exceed
  11-27  $20,000.
   12-1        (c)  The total payment of claims against a single license
   12-2  holder <commission merchant or retailer> may not exceed $50,000 in
   12-3  any one calendar year.
   12-4        (d)  The department may not pay a claim against:
   12-5              (1)  a person <commission merchant or retailer> who was
   12-6  not licensed on the date the contract <at the time of the
   12-7  transaction> on which the claim is based was entered into; or
   12-8              (2)  a cash dealer licensed under Chapter 101 or 102 of
   12-9  this code.
  12-10        (f)  If a license holder owes money to the produce recovery
  12-11  fund at the time the license holder makes a claim against the fund,
  12-12  the department shall offset the amount owed to the fund from the
  12-13  amount dispensed.
  12-14        SECTION 20.  Subsections (a), (c), and (d), Section 103.009,
  12-15  Agriculture Code, are amended to read as follows:
  12-16        (a)  If the department pays a claim against a license holder
  12-17  <commission merchant or retailer>, the license holder <commission
  12-18  merchant or retailer> shall:
  12-19              (1)  reimburse the fund immediately or agree in writing
  12-20  to reimburse the fund on a schedule to be determined by rule of the
  12-21  department; and
  12-22              (2)  immediately pay the aggrieved party any amount due
  12-23  that party or agree in writing to pay the aggrieved party on a
  12-24  schedule to be determined by rule of the department.
  12-25        (c)  If the license holder <commission merchant or retailer>
  12-26  does not reimburse the fund or pay the aggrieved party, or does not
  12-27  agree to do so, in accordance with this section, the department
   13-1  shall issue an order canceling the license <of the commission
   13-2  merchant or retailer> and may not issue a new license to that
   13-3  person for four years from the date of cancellation.  If the
   13-4  license holder <commission merchant or retailer> is a corporation,
   13-5  an officer or director of the corporation or a person owning more
   13-6  than 25 percent of the stock in the corporation may not be licensed
   13-7  <as a commission merchant or retailer> under Chapter 101 or 102 of
   13-8  this code during the four-year period in which the corporation is
   13-9  ineligible for licensing.
  13-10        (d)  This section does not apply to a license holder
  13-11  <commission merchant or retailer> who is released by a final
  13-12  judgment of a bankruptcy court from the legal duty to satisfy the
  13-13  claim paid by the department.
  13-14        SECTION 21.  Section 103.010, Agriculture Code, is amended to
  13-15  read as follows:
  13-16        Sec. 103.010.  SUBROGATION OF RIGHTS.  If the department pays
  13-17  a claim against a license holder <commission merchant or retailer>,
  13-18  the department is subrogated to all rights of the aggrieved party
  13-19  against the license holder <commission merchant or retailer> to the
  13-20  extent of the amount paid to the aggrieved party.
  13-21        SECTION 22.  Section 103.011, Agriculture Code, is amended to
  13-22  read as follows:
  13-23        Sec. 103.011.  Fee.  (a)  Except as otherwise provided by
  13-24  this section, a license holder <commission merchant or retailer>
  13-25  licensed under Chapter 101 or 102 of this code shall pay an annual
  13-26  fee to the fund of $200.
  13-27        (b)  <A retailer who is licensed under Chapter 101 or 102 of
   14-1  this code and whose annual purchases of vegetables and citrus fruit
   14-2  are less than $15,000 a year shall pay an annual fee of $50.>
   14-3        <(c)  A person who is required by Subsection (a) of this
   14-4  section to pay a fee of $200 and who is licensed in one of those
   14-5  classifications under both Chapters 101 and 102 of this code may
   14-6  pay a single fee of $250.  A person who is required by Subsection
   14-7  (b) of this section to pay a $50 fee and who is licensed in that
   14-8  classification under both Chapters 101 and 102 of this code may pay
   14-9  a single fee of $75.>
  14-10        <(d)>  A person registered <licensed> as a cash dealer or a
  14-11  marketing association organized under Chapter 52 of this code that
  14-12  handles citrus fruit only for its members is exempt from payment of
  14-13  the fee under this section.
  14-14        (c) <(e)>  The fee is in addition to any licensing fee paid
  14-15  and is due at the time of making the license application.  The
  14-16  department may not issue a license to a person who fails to pay the
  14-17  fee.
  14-18        SECTION 23.  Subsection (a), Section 103.013, Agriculture
  14-19  Code, is amended to read as follows:
  14-20        (a)  A person commits an offense if the person acts or
  14-21  assumes to act as a license holder <commission merchant or
  14-22  retailer> under Chapter 101 or 102 of this code without first
  14-23  paying the fee required by this chapter.
  14-24        SECTION 24.  A license, registration, or identification card
  14-25  that is issued under Chapters 101 and 102, Agriculture Code, and
  14-26  that is valid on the effective date of this Act remains valid until
  14-27  it expires or is revoked or suspended.
   15-1        SECTION 25.  This Act takes effect September 1, 1995.
   15-2        SECTION 26.  The importance of this legislation and the
   15-3  crowded condition of the calendars in both houses create an
   15-4  emergency and an imperative public necessity that the
   15-5  constitutional rule requiring bills to be read on three several
   15-6  days in each house be suspended, and this rule is hereby suspended.