1-1        By:  Armbrister                                  S.B. No. 372
    1-2        (In the Senate - Filed March 8, 1995; March 9, 1995, read
    1-3  first time and referred to Committee on Natural Resources;
    1-4  April 20, 1995, reported adversely, with favorable Committee
    1-5  Substitute by the following vote:  Yeas 8, Nays 0; April 20, 1995,
    1-6  sent to printer.)
    1-7  COMMITTEE SUBSTITUTE FOR S.B. No. 372               By:  Armbrister
    1-8                         A BILL TO BE ENTITLED
    1-9                                AN ACT
   1-10  relating to the continuation and functions of the Department of
   1-11  Agriculture and certain associated entities, including the Texas
   1-12  Agricultural Finance Authority, the Agriculture Resources
   1-13  Protection Authority, the State Seed and Plant Board, and the
   1-14  Produce Recovery Fund Board, and generally to matters regarding
   1-15  agriculture in this state; providing penalties.
   1-16        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-17                    ARTICLE 1.  GENERAL PROVISIONS
   1-18        SECTION 1.01.  Section 11.008, Agriculture Code, is amended
   1-19  to read as follows:
   1-20        Sec. 11.008.  FUNDS OF THE DEPARTMENT.  Except as otherwise
   1-21  provided by law, all money paid to the department is subject to
   1-22  Subchapter F, Chapter 404, Government Code <the department shall
   1-23  deposit all money collected or received by it in the state treasury
   1-24  to the credit of the general revenue fund>.
   1-25        SECTION 1.02.  Section 12.013, Agriculture Code, is amended
   1-26  to read as follows:
   1-27        Sec. 12.013.  Employees.  (a)  The department may employ
   1-28  personnel as the duties of the department require.  The
   1-29  commissioner shall provide to the department's employees, as often
   1-30  as necessary, information regarding their qualifications for
   1-31  employment and their responsibilities under applicable laws
   1-32  relating to standards of conduct for state employees.
   1-33        (b)  The commissioner or the commissioner's designee shall
   1-34  develop a system of annual performance evaluations that are based
   1-35  on documented employee performance.  All merit pay for department
   1-36  employees must be based on the system established under this
   1-37  subsection.
   1-38        (c)  The commissioner or the commissioner's designee shall
   1-39  develop an intraagency career ladder program that addresses
   1-40  opportunities for mobility and advancement for employees within the
   1-41  department.  The program shall require intraagency postings of all
   1-42  <nonentry level> positions concurrently with any public posting.
   1-43        (d)  The commissioner or the commissioner's designee shall
   1-44  prepare and maintain a written policy statement to assure
   1-45  implementation of a program of equal employment opportunity under
   1-46  which all personnel transactions are made without regard to race,
   1-47  color, disability <handicap>, sex, religion, age, or national
   1-48  origin.  The policy statement must include:
   1-49              (1)  personnel policies, including policies relating to
   1-50  recruitment, evaluation, selection, appointment, training, and
   1-51  promotion of personnel that comply with the requirements of Chapter
   1-52  21, Labor Code;
   1-53              (2)  a comprehensive analysis of the department work
   1-54  force that meets federal and state guidelines;
   1-55              (3)  procedures by which a determination can be made
   1-56  about the extent of underuse <of significant underutilization> in
   1-57  the department work force of all persons for whom federal or state
   1-58  guidelines encourage a more equitable balance; and
   1-59              (4)  reasonable methods to appropriately address those
   1-60  areas of underuse <significant underutilization>.
   1-61        (e)  A policy statement prepared under Subsection (d) of this
   1-62  section must cover an annual period, be updated <at least> annually
   1-63  and reviewed by the Texas Commission on Human Rights for compliance
   1-64  with Subsection (d)(1) of this section, and be filed with the
   1-65  governor's office.
   1-66        (f)  The governor's office shall deliver a biennial report to
   1-67  the legislature based on the information received under Subsection
   1-68  (e) of this section.  The report may be made separately or as a
    2-1  part of other biennial reports made to the legislature.
    2-2        SECTION 1.03.  Section 12.016, Agriculture Code, is amended
    2-3  to read as follows:
    2-4        Sec. 12.016.  RULES.  The department may adopt rules as
    2-5  necessary for the administration of its powers and duties under
    2-6  <Sections 12.001-12.015 of> this code.
    2-7        SECTION 1.04.  Chapter 12, Agriculture Code, is amended by
    2-8  adding Sections 12.0201 and 12.0202 to read as follows:
    2-9        Sec. 12.0201.  LICENSE SANCTIONS.  The department shall
   2-10  revoke, modify, suspend, or refuse to renew a license, assess an
   2-11  administrative penalty, place on probation a person whose license
   2-12  has been suspended, or reprimand a license holder for a violation
   2-13  of this code or a rule of the department.  If a license suspension
   2-14  is probated, the department may require the practitioner:
   2-15              (1)  to report regularly to the department on matters
   2-16  that are the basis of the probation;
   2-17              (2)  to limit practice to the areas prescribed by the
   2-18  department; or
   2-19              (3)  to continue or review professional education until
   2-20  the practitioner attains a degree of skill satisfactory to the
   2-21  department in those areas that are the basis of the probation.
   2-22        Sec. 12.0202.  ADMINISTRATIVE HEARINGS.  If the department
   2-23  proposes to suspend, revoke, or refuse to renew a person's license,
   2-24  the person is entitled to a hearing conducted by the State Office
   2-25  of Administrative Hearings.  Proceedings for a disciplinary action
   2-26  are governed by Chapter 2001, Government Code.  Rules of practice
   2-27  adopted by the department under Section 2001.004, Government Code,
   2-28  applicable to the proceedings for a disciplinary action may not
   2-29  conflict with rules adopted by the State Office of Administrative
   2-30  Hearings.
   2-31        SECTION 1.05.  Section 12.023, Agriculture Code, is amended
   2-32  to read as follows:
   2-33        Sec. 12.023.  Expiration of Registration or Licenses.  The
   2-34  department by rule may adopt a system under which registrations
   2-35  <the registration> or licenses required by the department <Section
   2-36  14.004, 61.013, 71.043, 71.057, 75.004, 76.071, 76.105, or 132.021
   2-37  of this code> expire on various dates during the year.  For the
   2-38  year in which the registration or license expiration date is
   2-39  changed, <fees payable on renewal of the> registration or license
   2-40  fees shall be prorated on a monthly basis so that each registrant
   2-41  or licensee pays <shall pay> only that portion of the fee that is
   2-42  allocable to the number of months during which the registration or
   2-43  license is valid.  On renewal of the registration or license on the
   2-44  new expiration date, the total renewal fee is payable.
   2-45        SECTION 1.06.  Section 12.025, Agriculture Code, is amended
   2-46  to read as follows:
   2-47        Sec. 12.025.  PROGRAM ACCESSIBILITY PLAN.  The department
   2-48  shall comply with federal and state laws related to program and
   2-49  facility accessibility.  The commissioner <department> shall also
   2-50  prepare and maintain a written plan that describes how a person who
   2-51  does not speak English <or who has a physical, mental, or
   2-52  developmental disability> can be provided reasonable access to the
   2-53  department's programs and services.
   2-54        SECTION 1.07.  Subsections (c) and (d), Section 12.026,
   2-55  Agriculture Code, are amended to read as follows:
   2-56        (c)  The department shall keep an information file about each
   2-57  complaint filed with the department <that the department has
   2-58  authority to resolve>.  The information shall include:
   2-59              (1)  the date the complaint is received;
   2-60              (2)  the name of the complainant;
   2-61              (3)  the subject matter of the complaint;
   2-62              (4)  a record of all persons contacted in relation to
   2-63  the complaint;
   2-64              (5)  a summary of the results of the review or
   2-65  investigation of the complaint; and
   2-66              (6)  for complaints for which the agency took no
   2-67  action, an explanation of the reason the complaint was closed
   2-68  without action.
   2-69        (d)  The department shall keep a file about each written
   2-70  complaint filed with the department that the department has
    3-1  authority to resolve.  The department shall provide to the person
    3-2  filing the complaint and the persons or entities complained about
    3-3  the department's policies and procedures pertaining to complaint
    3-4  investigation and resolution.  The <If a written complaint is filed
    3-5  with the department that the department has authority to resolve,
    3-6  the> department, at least quarterly and until final disposition of
    3-7  the complaint, shall notify the person filing <parties to> the
    3-8  complaint and the persons or entities complained about of the
    3-9  status of the complaint unless the notice would jeopardize an
   3-10  undercover investigation.
   3-11        SECTION 1.08.  Chapter 12, Agriculture Code, is amended by
   3-12  adding Section 12.0261 to read as follows:
   3-13        Sec. 12.0261.  ADMINISTRATIVE PROCEDURE.  The department is
   3-14  subject to Chapter 2001, Government Code.
   3-15        SECTION 1.09.  Chapter 12, Agriculture Code, is amended by
   3-16  adding Sections 12.035, 12.036, and 12.037 to read as follows:
   3-17        Sec. 12.035.  NOTICE TO EXAMINEE.  Not later than the 30th
   3-18  day after the date on which a licensing or registration examination
   3-19  is administered under this code, the department shall notify each
   3-20  examinee of the results of the examination.  However, if an
   3-21  examination is graded or reviewed by a national testing service,
   3-22  the department shall notify examinees of the results of the
   3-23  examination not later than the 14th day after the date on which the
   3-24  department receives the results from the testing service.  If the
   3-25  notice of examination results graded or reviewed by a national
   3-26  testing service will be delayed for longer than 90 days after the
   3-27  examination date, the department shall notify the examinee of the
   3-28  reason for the delay before the 90th day.  The department may
   3-29  require a testing service to notify examinees of the results of an
   3-30  examination.
   3-31        Sec. 12.036.  LICENSING OUT-OF-STATE APPLICANTS.  The
   3-32  department may waive any prerequisite to obtaining a license or
   3-33  registration for an applicant after reviewing the applicant's
   3-34  credentials and determining that the applicant holds a valid
   3-35  license from another state that has license or registration
   3-36  requirements substantially equivalent to those of this state.
   3-37        Sec. 12.037.  CONTINUING EDUCATION.  The department may
   3-38  recognize, prepare, or administer continuing education programs for
   3-39  its license holders.
   3-40        SECTION 1.10.  Subsection (a), Section 14.015, Agriculture
   3-41  Code, is amended to read as follows:
   3-42        (a)  The department may deny an application for a license or
   3-43  license renewal if the applicant fails to comply with a requirement
   3-44  of this subchapter or a rule adopted by the department under this
   3-45  subchapter.
   3-46        SECTION 1.11.  Section 52.085, Agriculture Code, is amended
   3-47  to read as follows:
   3-48        Sec. 52.085.  Voting.  (a)  Except as provided by Subsection
   3-49  (b) of this section, a member of a marketing association is
   3-50  entitled to one vote.
   3-51        (b)  A marketing association may provide in its articles of
   3-52  incorporation or bylaws for a member association or group to have
   3-53  more than one vote if the association providing for the vote:
   3-54              (1)  is organized primarily for the production,
   3-55  cultivation, and care of citrus groves or for processing and
   3-56  marketing citrus products;
   3-57              (2)  has its principal office in a county that has at
   3-58  least 500 acres of land planted in citrus groves; and
   3-59              (3)  includes as members one or more associations or
   3-60  groups organized on a cooperative basis.
   3-61        (c)  A marketing association that provides for a member
   3-62  association or group to have more than one vote under Subsection
   3-63  (b) shall comply with Section 52.012(a)(2).
   3-64        (d)  In accordance with a bylaw adopted under Section 52.052
   3-65  of this code, a marketing association may provide for its members
   3-66  to vote by proxy or by mail.
   3-67        SECTION 1.12.  Section 58.012, Agriculture Code, is amended
   3-68  by adding Subsection (f) to read as follows:
   3-69        (f)  Appointments to the board shall be made without regard
   3-70  to the race, color, disability, sex, religion, age, or national
    4-1  origin of the appointees.
    4-2        SECTION 1.13.  Subsection (a), Section 58.013, Agriculture
    4-3  Code, is amended to read as follows:
    4-4        (a)  The governor shall designate a member of the board as
    4-5  <appoint> the chairman of the board to serve in that capacity at
    4-6  the pleasure of the governor.  The board shall elect a
    4-7  vice-chairman biennially from its members and shall elect a
    4-8  secretary, a treasurer, and other officers it considers necessary.
    4-9        SECTION 1.14.  The heading to Section 58.014, Agriculture
   4-10  Code, is amended to read as follows:
   4-11        Sec. 58.014.  MEETINGS; ADMINISTRATIVE PROCEDURE.
   4-12        SECTION 1.15.  Section 58.014, Agriculture Code, is amended
   4-13  by adding Subsections (c) and (d) to read as follows:
   4-14        (c)  The board shall develop and implement policies that
   4-15  provide the public with a reasonable opportunity to appear before
   4-16  the board and to speak on any issue under the jurisdiction of the
   4-17  board.
   4-18        (d)  The board is subject to Chapter 551, Government Code,
   4-19  and Chapter 2001, Government Code.
   4-20        SECTION 1.16.  Chapter 58, Agriculture Code, is amended by
   4-21  adding Sections 58.0172, 58.0173, 58.0174, 58.0175, and 58.0176 to
   4-22  read as follows:
   4-23        Sec. 58.0172.  BOARD CONFLICT OF INTEREST.  (a)  An officer,
   4-24  employee, or paid consultant of a Texas trade association in the
   4-25  field of agriculture may not be a member of the board.
   4-26        (b)  A person who is the spouse of an officer, manager, or
   4-27  paid consultant of a Texas trade association in the field of
   4-28  agriculture may not be a member of the board.
   4-29        (c)  For the purposes of this section, a Texas trade
   4-30  association is a nonprofit, cooperative, and voluntarily joined
   4-31  association of business or professional competitors in this state
   4-32  designed to assist its members and its industry or profession in
   4-33  dealing with mutual business or professional problems and in
   4-34  promoting their common interest.
   4-35        (d)  A person may not serve as a member of the board or act
   4-36  as the general counsel to the board if the person is required to
   4-37  register as a lobbyist under Chapter 305, Government Code, because
   4-38  of the person's activities for compensation on behalf of a
   4-39  profession related to the operation of the board.
   4-40        Sec. 58.0173.  REMOVAL OF BOARD MEMBER.  (a)  It is a ground
   4-41  for removal from the board if a member:
   4-42              (1)  does not have at the time of appointment the
   4-43  qualifications required by Section 58.012;
   4-44              (2)  does not maintain during service on the board the
   4-45  qualifications required by Section 58.012;
   4-46              (3)  violates a prohibition established by Section
   4-47  58.0172;
   4-48              (4)  cannot because of illness or disability discharge
   4-49  the member's duties for a substantial part of the term for which
   4-50  the member is appointed; or
   4-51              (5)  is absent from more than half of the regularly
   4-52  scheduled board meetings that the member is eligible to attend
   4-53  during a calendar year unless the absence is excused by majority
   4-54  vote of the board.
   4-55        (b)  The validity of an action of the board is not affected
   4-56  by the fact that it is taken when a ground for removal of a board
   4-57  member exists.
   4-58        (c)  If the commissioner has knowledge that a potential
   4-59  ground for removal exists, the commissioner shall notify the
   4-60  chairman of the board of the potential ground.  The chairman shall
   4-61  then notify the governor and the attorney general that a potential
   4-62  ground for removal exists.  If the potential ground for removal
   4-63  involves the chairman, the commissioner shall notify the next
   4-64  highest officer of the board, who shall notify the governor and the
   4-65  attorney general that a potential ground for removal exists.
   4-66        Sec. 58.0174.  STANDARDS OF CONDUCT.  The commissioner or the
   4-67  commissioner's designee shall provide to members of the board, as
   4-68  often as necessary, information regarding their qualification for
   4-69  office under this chapter and their responsibilities under
   4-70  applicable laws relating to standards of conduct for state
    5-1  officers.
    5-2        Sec. 58.0175.  SEPARATION OF RESPONSIBILITIES.  The board
    5-3  shall develop and implement policies that clearly separate the
    5-4  policymaking responsibilities of the board and the management
    5-5  responsibilities of the commissioner and the staff of the
    5-6  department.
    5-7        Sec. 58.0176.  BOARD MEMBER TRAINING.  (a)  Before a member
    5-8  of the board may assume the member's duties and before the member
    5-9  may be confirmed by the senate, the member must complete at least
   5-10  one course of the training program established under this section.
   5-11        (b)  A training program established under this section shall
   5-12  provide information to the member regarding:
   5-13              (1)  the enabling legislation that created the board;
   5-14              (2)  the programs operated by the board;
   5-15              (3)  the role and functions of the board;
   5-16              (4)  the rules of the board;
   5-17              (5)  the current budget for funds the board
   5-18  administers;
   5-19              (6)  the results of the most recent formal audit of the
   5-20  board;
   5-21              (7)  the requirements of:
   5-22                    (A)  Chapter 551, Government Code;
   5-23                    (B)  Chapter 552, Government Code; and
   5-24                    (C)  Chapter 2001, Government Code;
   5-25              (8)  the requirements of the conflict of interest laws
   5-26  and other laws relating to public officials; and
   5-27              (9)  any applicable ethics policies adopted by the
   5-28  department or the Texas Ethics Commission.
   5-29        SECTION 1.17.  Section 62.002, Agriculture Code, is amended
   5-30  by amending Subsection (d) and by adding Subsection (e) to read as
   5-31  follows:
   5-32        (d)  The governor shall designate a member of the board as
   5-33  the chairman to serve in that capacity at the pleasure of the
   5-34  governor.  The board annually shall elect a <chairman,>
   5-35  vice-chairman<,> and secretary.  The board shall meet at times and
   5-36  places determined by the chairman.
   5-37        (e)  Appointments to the board shall be made without regard
   5-38  to the race, color, disability, sex, religion, age, or national
   5-39  origin of the appointees.
   5-40        SECTION 1.18.  Chapter 62, Agriculture Code, is amended by
   5-41  adding Sections 62.0022, 62.0023, 62.0024, 62.0025, 62.0026, and
   5-42  62.0027 to read as follows:
   5-43        Sec. 62.0022.  BOARD CONFLICT OF INTEREST.  (a)  An officer,
   5-44  employee, or paid consultant of a Texas trade association in the
   5-45  field of agriculture may not be a member of the board.
   5-46        (b)  A person who is the spouse of an officer, manager, or
   5-47  paid consultant of a Texas trade association in the field of
   5-48  agriculture may not be a member of the board.
   5-49        (c)  For the purposes of this section, a Texas trade
   5-50  association is a nonprofit, cooperative, and voluntarily joined
   5-51  association of business or professional competitors in this state
   5-52  designed to assist its members and its industry or profession in
   5-53  dealing with mutual business or professional problems and in
   5-54  promoting their common interest.
   5-55        (d)  A person may not serve as a member of the board or act
   5-56  as the general counsel to the board if the person is required to
   5-57  register as a lobbyist under Chapter 305, Government Code, because
   5-58  of the person's activities for compensation on behalf of a
   5-59  profession related to the operation of the board.
   5-60        Sec. 62.0023.  REMOVAL OF BOARD MEMBER.  (a)  It is a ground
   5-61  for removal from the board if a member:
   5-62              (1)  does not have at the time of appointment the
   5-63  qualifications required by Section 62.002;
   5-64              (2)  does not maintain during service on the board the
   5-65  qualifications required by Section 62.002;
   5-66              (3)  violates a prohibition established by Section
   5-67  62.0022;
   5-68              (4)  cannot because of illness or disability discharge
   5-69  the member's duties  for a substantial part of the term for which
   5-70  the member is appointed; or
    6-1              (5)  is absent  from more than half of the regularly
    6-2  scheduled board meetings that the member is eligible to attend
    6-3  during a calendar year unless  the absence is excused by majority
    6-4  vote of the board.
    6-5        (b)  The validity of  an action of the board is not affected
    6-6  by the fact that it is taken when a ground for removal of a board
    6-7  member exists.
    6-8        (c)  If the commissioner has knowledge that a potential
    6-9  ground for removal exists, the commissioner shall notify the
   6-10  chairman of the board of the potential ground.  The chairman shall
   6-11  then notify the governor and the attorney general that a potential
   6-12  ground for removal exists.  If the potential ground for removal
   6-13  involves the chairman, the commissioner shall notify the next
   6-14  highest officer of the board who shall notify the governor and the
   6-15  attorney general that a potential ground for removal exists.
   6-16        Sec. 62.0024.  STANDARDS OF CONDUCT.  The commissioner or the
   6-17  commissioner's designee shall provide to members of the board, as
   6-18  often as necessary, information regarding their qualification for
   6-19  office under this chapter and their responsibilities under
   6-20  applicable laws relating to standards of conduct for state officers
   6-21  or employees.
   6-22        Sec. 62.0025.  BOARD MEETINGS; ADMINISTRATIVE PROCEDURE.
   6-23  (a)   The board shall develop and implement policies that provide
   6-24  the public with a reasonable opportunity to appear  before the
   6-25  board and to speak on any issue under the jurisdiction of the
   6-26  board.
   6-27        (b)  The board is subject to Chapter 551, Government Code,
   6-28  and Chapter 2001, Government Code.
   6-29        Sec. 62.0026.  SEPARATION OF RESPONSIBILITIES.  The board
   6-30  shall develop and implement policies that clearly separate the
   6-31  policymaking responsibilities of the board and the management
   6-32  responsibilities of the commissioner and the staff of the
   6-33  department.
   6-34        Sec. 62.0027.  BOARD MEMBER TRAINING.  (a)  Before a member
   6-35  of the board may assume the member's duties and before the member
   6-36  may be confirmed by the senate, the member must complete at least
   6-37  one course of the training program established under this section.
   6-38        (b)  A training program established under this section shall
   6-39  provide information to the member regarding:
   6-40              (1)  Chapter 64, this chapter, and the enabling
   6-41  legislation that created the board;
   6-42              (2)  the programs operated by the board;
   6-43              (3)  the role and functions of the board;
   6-44              (4)  the rules of the board with an emphasis on the
   6-45  rules that relate to disciplinary and investigatory authority;
   6-46              (5)  the requirements of:
   6-47                    (A)  Chapter 551, Government Code;
   6-48                    (B)  Chapter 552, Government Code; and
   6-49                    (C)  Chapter 2001, Government Code;
   6-50              (6)  the requirements of the conflict of interest laws
   6-51  and other laws relating to public officials; and
   6-52              (7)  any applicable ethics policies adopted by the
   6-53  department or the Texas Ethics Commission.
   6-54        SECTION 1.19.  Subsection (a), Section 62.0065, Agriculture
   6-55  Code, is amended to read as follows:
   6-56        (a)  Not later than the 30th day after the date on which a
   6-57  licensing or registration examination is administered under this
   6-58  chapter, the board shall notify each examinee of the results of the
   6-59  examination.  However, if an examination is graded or reviewed by a
   6-60  national testing service, the board shall notify examinees of the
   6-61  results of the examination not later than the 14th day after the
   6-62  date on which the board receives the results from the testing
   6-63  service.  If the notice of examination results graded or reviewed
   6-64  by a national testing service will be delayed for longer than 90
   6-65  days after the examination date, the board shall notify the
   6-66  examinee of the reason for the delay before the 90th day.  The
   6-67  board may require a testing service to notify examinees of the
   6-68  results of an examination.
   6-69        SECTION 1.20.  Subsections (b) and (d), Section 76.110,
   6-70  Agriculture Code, are amended to read as follows:
    7-1        (b)  Not later than the 30th day after the date on which a
    7-2  licensing examination is administered under this section, the
    7-3  appropriate regulatory agency shall notify each examinee of the
    7-4  results of the examination.  However, if an examination is graded
    7-5  or reviewed by a national testing service, the appropriate
    7-6  regulatory agency shall notify examinees of the results of the
    7-7  examination not later than the 14th day after the date on which the
    7-8  appropriate regulatory agency receives the results from the testing
    7-9  service.  If the notice of examination results graded or reviewed
   7-10  by a national testing service will be delayed for longer than 90
   7-11  days after the examination date, the appropriate regulatory agency
   7-12  shall notify the examinee of the reason for the delay before the
   7-13  90th day.  The appropriate regulatory agency may require a testing
   7-14  service to notify examinees of the results of an examination.
   7-15        (d)  The appropriate <head of a> regulatory agency may waive
   7-16  <part or all of> any prerequisite to obtaining a license for an
   7-17  applicant after reviewing the applicant's credentials and
   7-18  determining that the applicant holds a valid license from another
   7-19  state that has license <examination> requirements <on a reciprocal
   7-20  basis with any other state or federal agency that has>
   7-21  substantially equivalent to those of this state <the same
   7-22  examination standards>.
   7-23        SECTION 1.21.  Section 103.003, Agriculture Code, is amended
   7-24  by adding Subsections (e), (f), and (g) to read as follows:
   7-25        (e)  Appointments to the board shall be made without regard
   7-26  to the race, color, disability, sex, religion, age, or national
   7-27  origin of the appointees.
   7-28        (f)  The governor shall designate a member of the board as
   7-29  the chairman of the board to serve in that capacity at the pleasure
   7-30  of the governor.
   7-31        (g)  The board is subject to Chapter 551, Government Code,
   7-32  and Chapter 2001, Government Code.
   7-33        SECTION 1.22.  Section 103.004, Agriculture Code, is amended
   7-34  to read as follows:
   7-35        Sec. 103.004.  DUTIES OF THE BOARD.  (a)  The board shall:
   7-36              (1)  advise the department on all matters relating to
   7-37  the fund, including the fund's budget and the revenues necessary to
   7-38  accomplish the purposes of the fund;
   7-39              (2)  advise the department in the adoption of rules
   7-40  relating to the payment of claims from the fund and to the
   7-41  administration of the fund; and
   7-42              (3)  conduct adjudicative hearings on disputed claims
   7-43  presented for payment from the fund.
   7-44        (b)  The board shall develop and implement policies that
   7-45  provide the public with a reasonable opportunity to appear before
   7-46  the board and to speak on any issue under the jurisdiction of the
   7-47  board.
   7-48        (c)  The board shall develop and implement policies that
   7-49  clearly separate the policymaking responsibilities of the board and
   7-50  the management responsibilities of the commissioner and the staff
   7-51  of the department.
   7-52        SECTION 1.23.  Chapter 103, Agriculture Code, is amended by
   7-53  adding Sections 103.016, 103.017, 103.018, and 103.019 to read as
   7-54  follows:
   7-55        Sec. 103.016.  BOARD CONFLICT OF INTEREST.  (a)  An officer,
   7-56  employee, or paid consultant of a Texas trade association in the
   7-57  field of agriculture may not be a member of the board.
   7-58        (b)  A person who is the spouse of an officer, manager, or
   7-59  paid consultant of a Texas trade association in the field of
   7-60  agriculture may not be a member of the board.
   7-61        (c)  For the purposes of this section, a Texas trade
   7-62  association is a nonprofit, cooperative, and voluntarily joined
   7-63  association of business or professional competitors in this state
   7-64  designed to assist its members and its industry or profession in
   7-65  dealing with mutual business or professional problems and in
   7-66  promoting their common interest.
   7-67        (d)  A person may not serve as a member of the board or act
   7-68  as the general counsel to the board if the person is required to
   7-69  register as a lobbyist under Chapter 305, Government Code, because
   7-70  of the person's activities for compensation on behalf of a
    8-1  profession related to the operation of the board.
    8-2        Sec. 103.017.  REMOVAL OF BOARD MEMBER.  (a)  It is a ground
    8-3  for removal from the board if a member:
    8-4              (1)  does not have at the time of appointment the
    8-5  qualifications required by Section 103.003;
    8-6              (2)  does not maintain during service on the board the
    8-7  qualifications required by Section 103.003;
    8-8              (3)  violates a prohibition established by Section
    8-9  103.016;
   8-10              (4)  cannot because of illness or disability discharge
   8-11  the member's duties for a substantial part of the term for which
   8-12  the member is appointed; or
   8-13              (5)  is absent from more than half of the regularly
   8-14  scheduled board meetings that the member is eligible to attend
   8-15  during a calendar year unless the absence is excused by majority
   8-16  vote of the board.
   8-17        (b)  The validity of an action of the board is not affected
   8-18  by the fact that it is taken when a ground for removal of a board
   8-19  member exists.
   8-20        (c)  If the commissioner has knowledge that a potential
   8-21  ground for removal exists, the commissioner shall notify the
   8-22  chairman of the board of the potential ground.  The chairman shall
   8-23  then notify the governor and the attorney general that a potential
   8-24  ground for removal exists.  If the potential ground for removal
   8-25  involves the chairman, the commissioner shall notify the next
   8-26  highest officer of the board who shall notify the governor and the
   8-27  attorney general that a potential ground for removal exists.
   8-28        Sec. 103.018.  QUALIFICATIONS AND STANDARDS OF CONDUCT.  The
   8-29  commissioner or the commissioner's designee shall provide to
   8-30  members of the board, as often as necessary, information regarding
   8-31  their qualification for office under this chapter and their
   8-32  responsibilities under applicable laws relating to standards of
   8-33  conduct for state officers or employees.
   8-34        Sec. 103.019.  BOARD MEMBER TRAINING.  (a)  Before a member
   8-35  of the board may assume the member's duties and before the member
   8-36  may be confirmed by the senate, the member must complete at least
   8-37  one course of the training program established under this section.
   8-38        (b)  A training program established under this section shall
   8-39  provide information to the member regarding:
   8-40              (1)  this chapter;
   8-41              (2)  the programs operated by the board;
   8-42              (3)  the role and functions of the board;
   8-43              (4)  the rules of the board with an emphasis on the
   8-44  rules that relate to disciplinary and investigatory authority;
   8-45              (5)  the current budget for the produce recovery fund;
   8-46              (6)  the requirements of:
   8-47                    (A)  Chapter 551, Government Code;
   8-48                    (B)  Chapter 552, Government Code; and
   8-49                    (C)  Chapter 2001, Government Code;
   8-50              (7)  the requirements of the conflict of interest laws
   8-51  and other laws relating to public officials; and
   8-52              (8)  any applicable ethics policies adopted by the
   8-53  department or the Texas Ethics Commission.
   8-54                           ARTICLE 2.  FEES
   8-55        SECTION 2.01.  Chapter 12, Agriculture Code, is amended by
   8-56  adding Section 12.0144 to read as follows:
   8-57        Sec. 12.0144.  FEE SCHEDULE.  The department shall by rule
   8-58  adopt a schedule for all fees set by the department under this
   8-59  code.  Except for those activities exempted in the General
   8-60  Appropriations Act, the department shall set fees in an amount
   8-61  which offsets, when feasible, the direct and indirect state costs
   8-62  of administering its regulatory activities.
   8-63        SECTION 2.02.  Subsections (a) and (c), Section 12.018,
   8-64  Agriculture Code, are amended to read as follows:
   8-65        (a)  On request of any person, the department may test an
   8-66  agricultural product  for aflatoxins.  The department may set and
   8-67  charge a fee, as provided by department rule, <of not less than $20
   8-68  nor more than $40> for each test.
   8-69        (c)  <The department shall charge a fee of not less than $5
   8-70  nor more than $150 for each laboratory analysis performed under
    9-1  Subsection (b) of this section.>  The department shall set by rule
    9-2  the fee for each type of laboratory analysis.  <Each fee shall be
    9-3  designed to recover at least half of the costs of performing the
    9-4  analysis.>
    9-5        SECTION 2.03.  Section 12.021, Agriculture Code, is amended
    9-6  to read as follows:
    9-7        Sec. 12.021.  FEE FOR PHYTOSANITATION CERTIFICATE INSPECTION.
    9-8  The department shall collect an inspection fee, as provided by
    9-9  department rule, <of not less than $25> for <the issuance of> a
   9-10  phytosanitation inspection <fee certificate> required by foreign
   9-11  countries or other states for agricultural products exported from
   9-12  this state.
   9-13        SECTION 2.04.  Section 12.024, Agriculture Code, is amended
   9-14  to read as follows:
   9-15        Sec. 12.024.  Late Renewal of License or Registration.
   9-16  (a)  A person who is otherwise eligible to renew a license or
   9-17  registration may renew an unexpired license or registration by
   9-18  paying the required renewal fee  to the department before the
   9-19  expiration date of the license or registration.  A person whose
   9-20  license or registration has expired may not engage in activities
   9-21  that require a license or registration until the license or
   9-22  registration has been renewed under the provisions of this section.
   9-23  <This section is applicable only to a renewal fee under Section
   9-24  13.304, 13.354, 14.005, 18.003, 18.004, 71.043, 71.057, 75.004,
   9-25  76.044, 76.073, 76.113, or 132.025 of this code.>
   9-26        (b)  If the person's license or registration has been expired
   9-27  for 90 days or less, the person may renew the license or
   9-28  registration by paying to the department 1-1/2 times the required
   9-29  renewal fee.  <A late fee is assessed according to the following
   9-30  schedule:>
   9-31                <Days Late                     Late Fee Amount>
   9-32          <at least 1 but less than 31       20% of the renewal fee>
   9-33          <at least 31 but less than 91      50% of the renewal fee>
   9-34          <at least 91 but less than 365     100% of the renewal fee>
   9-35        (c)  If the person's license or registration has been expired
   9-36  for longer than 90 days but less than one year, the person may
   9-37  renew the license or registration by paying to the department two
   9-38  times the required renewal fee.
   9-39        (d)  If the person's license or registration has been expired
   9-40  for one year or longer, the person may not renew the license or
   9-41  registration.  The person may obtain a new license or registration
   9-42  by submitting to reexamination, if applicable, and complying with
   9-43  the requirements and procedures for obtaining an original license
   9-44  or registration.
   9-45        (e)  If the person was licensed or registered in this state,
   9-46  moved to another state, and is currently licensed or registered and
   9-47  has been in practice in the other state for the two years preceding
   9-48  application, the person may renew an expired license or
   9-49  registration without reexamination, if required.  The person must
   9-50  pay to the department a fee that is equal to two times the required
   9-51  renewal fee for the license or registration.
   9-52        (f)  At least 30 days before the expiration of a person's
   9-53  license or registration, the department shall send written notice
   9-54  of the impending license or registration expiration to the person
   9-55  at the license holder's or registrant's last known address
   9-56  according to the records of the department.
   9-57        (g)  The department by rule shall set fees required by this
   9-58  section. <A person who fails to pay the renewal fee and the
   9-59  applicable late fee within one year after the due date of the
   9-60  renewal fee is not eligible to renew a license.  The ineligible
   9-61  person may reapply for an initial license or registration.>
   9-62        SECTION 2.05.  Chapter 12, Agriculture Code, is amended by
   9-63  adding Section 12.034 to read as follows:
   9-64        Sec. 12.034.  REFUND OF FEES.  The department by rule may
   9-65  provide for the full or partial refund of a fee collected by the
   9-66  department.
   9-67        SECTION 2.06.  Subsections (c), (d), (e), and (f), Section
   9-68  13.115, Agriculture Code, are amended to read as follows:
   9-69        (c)  The department shall charge a fee, as provided by
   9-70  department rule, for tolerance testing of a weight by the
   10-1  department's metrology laboratory. <is:>
   10-2  <WEIGHT                                        FEE>
   10-3  <Less than 10 pounds                           $ 2>
   10-4  <10 pounds or more but less than 500 pounds    $ 5>
   10-5  <500 pounds or more but less than 2,500 pounds $10>
   10-6  <2,500 pounds or more                          $20>
   10-7        (d)  The department shall charge a fee, as provided by
   10-8  department rule, for tolerance testing of a measure by the
   10-9  department's metrology laboratory. <is:>
  10-10  <MEASURE CAPACITY                                 FEES>
  10-11  <5 gallons or less                                $10>
  10-12  <More than 5 gallons                              $10>
  10-13                   <plus 20 cents for each gallon over 5>
  10-14        (e)  The department shall charge a fee, as provided by
  10-15  department rule, for precision testing performed by the
  10-16  department's metrology laboratory. <is:>
  10-17  <WEIGHT                                               FEES>
  10-18  <Not more than 3 kilograms                            $25>
  10-19  <More than 3 kilograms but not more than 30 kilograms $50>
  10-20  <More than 30 kilograms                               $70>
  10-21        (f)  The department shall charge a fee, as provided by
  10-22  department rule, for precision testing of tapes, rules, glassware,
  10-23  and other measuring devices performed by the department's metrology
  10-24  laboratory <is $25 for each increment>.
  10-25        SECTION 2.07.  Subsections (b), (c), and (d), Section
  10-26  13.1151, Agriculture Code, are amended to read as follows:
  10-27        (b)  The department shall charge an annual fee, as provided
  10-28  by department rule, for registration of a pump <may not exceed
  10-29  $6.25>.
  10-30        (c)  The department shall charge an annual fee, as provided
  10-31  by department rule, for registration of a scale. <may not exceed
  10-32  the following amounts:>
  10-33  <SCALE CAPACITY                                       FEE>
  10-34  <Less than 4,999 pounds                               $12.50>
  10-35  <4,999 pounds or more                                 $100>
  10-36        (d)  The department shall charge an annual fee, as provided
  10-37  by department rule, for registration of a bulk or liquefied
  10-38  petroleum gas metering device <may not exceed $80>.
  10-39        SECTION 2.08.  Subsection (b), Section 13.255, Agriculture
  10-40  Code, is amended to read as follows:
  10-41        (b)  A state public weigher must submit a nonrefundable fee,
  10-42  as provided by department rule, <of $400> with the application for
  10-43  a certificate of authority.  A county public weigher or a deputy
  10-44  public weigher must submit a <nonrefundable> fee, as provided by
  10-45  department rule, <of $100> with the application  for a certificate
  10-46  of authority.
  10-47        SECTION 2.09.  Subsections (a) and (b), Section 13.304,
  10-48  Agriculture Code, are amended to read as follows:
  10-49        (a)  An application for a license shall be submitted to the
  10-50  department on a form prescribed by the department, accompanied by
  10-51  an <a nonrefundable> annual license fee in an amount established by
  10-52  department rule<, not to exceed $200>.
  10-53        (b)  A license issued under this subchapter expires on the
  10-54  anniversary date of the person's test equipment calibration, as
  10-55  such anniversary is defined by a department rule, and may be
  10-56  renewed by filing with the department a renewal application form
  10-57  prescribed by the department, accompanied by an <a nonrefundable>
  10-58  annual license renewal fee in an amount established by department
  10-59  rule<, not to exceed $200>.
  10-60        SECTION 2.10.  Subsections (a) and (b), Section 13.354,
  10-61  Agriculture Code, are amended to read as follows:
  10-62        (a)  An application for a license shall be submitted to the
  10-63  department on a form prescribed by the department, accompanied by
  10-64  an <a nonrefundable> annual license fee in an amount established by
  10-65  department rule<, not to exceed $200>.
  10-66        (b)  A license issued under this subchapter expires on the
  10-67  anniversary date of the person's test equipment calibration, as
  10-68  such anniversary is defined by department rule, and may be renewed
  10-69  by filing with the department a renewal application form prescribed
  10-70  by the department, accompanied by an <a nonrefundable> annual
   11-1  license renewal fee in an amount established by department rule<,
   11-2  not to exceed $200>.
   11-3        SECTION 2.11.  Subsection (b), Section 14.005, Agriculture
   11-4  Code, is amended to read as follows:
   11-5        (b)  An applicant must file a separate application for each
   11-6  license, renewal, or amendment and shall accompany each application
   11-7  for a license or renewal with an <a nonrefundable> annual license
   11-8  fee, as provided by department rule <of $75>.  The department shall
   11-9  prescribe the information to be contained in the application.  A
  11-10  person who fails to submit a renewal fee on or before the
  11-11  expiration date of the license must pay, in addition to the renewal
  11-12  fee, the late fee provided by Section 12.024 of this code.
  11-13        SECTION 2.12.  Subsection (d), Section 14.014, Agriculture
  11-14  Code, is amended to read as follows:
  11-15        (d)  The department shall collect from the warehouseman whose
  11-16  public grain warehouse is inspected an inspection fee for an annual
  11-17  inspection or an inspection requested by the warehouseman, but may
  11-18  not collect an inspection fee for other inspections.  The
  11-19  department by rule shall set the inspection fee <is $4 for each
  11-20  10,000 bushels or fraction of 10,000 bushels of licensed storage
  11-21  capacity of the warehouse inspected or $100, whichever is greater>.
  11-22        SECTION 2.13.  Subsection (c), Section 14.107, Agriculture
  11-23  Code, is amended to read as follows:
  11-24        (c)  The department shall collect a filing fee, as provided
  11-25  by department rule, <of $1> for the certificate of qualification.
  11-26        SECTION 2.14.  Subsection (c), Section 14.118, Agriculture
  11-27  Code, is amended to read as follows:
  11-28        (c)  The corporation shall pay to the department a just and
  11-29  reasonable fee, as determined by the department, for an examination
  11-30  under this section.  <The fee may not exceed:>
  11-31              <(1)  $5 for a corporation with a capital stock of less
  11-32  than $2,500;>
  11-33              <(2)  $10 for a corporation with a capital stock of
  11-34  $2,500 or more but not more than $10,000;>
  11-35              <(3)  $20 for a corporation with a capital stock of
  11-36  more than $10,000 but not more than $25,000; and>
  11-37              <(4)  $200 for a corporation with a capital stock of
  11-38  $1,000,000 or more.>
  11-39        SECTION 2.15.  Subsection (c), Section 16.002, Agriculture
  11-40  Code, is amended to read as follows:
  11-41        (c)  The <Each December, the> person responsible for
  11-42  registration shall apply for registration and pay a registration
  11-43  fee, as provided by department rule, <of $40> for each brand of
  11-44  antifreeze to be sold.  Unless canceled, the registration is valid
  11-45  for the following <calendar> year.
  11-46        SECTION 2.16.  Section 17.008, Agriculture Code, is amended
  11-47  to read as follows:
  11-48        Sec. 17.008.  Fees.  The department may prescribe and collect
  11-49  an initial registration fee and may prescribe and collect an annual
  11-50  renewal fee.  <Neither fee may exceed $100.>
  11-51        SECTION 2.17.  Subsection (b), Section 18.003, Agriculture
  11-52  Code, is amended to read as follows:
  11-53        (b)  A person may apply for an organic certification, or a
  11-54  renewal of an organic certification, by submitting an application
  11-55  and an <a nonrefundable> annual fee prescribed by the department.
  11-56        SECTION 2.18.  Subsection (b), Section 18.004, Agriculture
  11-57  Code, is amended to read as follows:
  11-58        (b)  A person may apply for a certificate of accreditation,
  11-59  or a renewal of a certificate of accreditation, by submitting an
  11-60  application and an <a nonrefundable> annual fee prescribed by the
  11-61  department.
  11-62        SECTION 2.19.  Section 18.006, Agriculture Code, is amended
  11-63  to read as follows:
  11-64        Sec. 18.006.  Fees.  (a)  The department shall <may> charge
  11-65  an annual fee, as provided by department rule, <not to exceed
  11-66  $2,500> for each applicant certified as a producer, distributor, or
  11-67  retailer and a fee, as provided by department rule, <not to exceed
  11-68  $5,000> for each applicant certified as a processor of organic food
  11-69  or fiber produced in this state.
  11-70        (b)  The department shall <may> charge an annual fee, as
   12-1  provided by department rule, <not to exceed $2,500> for each
   12-2  applicant certified as a distributor or retailer and a fee, as
   12-3  provided by department rule, <not to exceed $5,000> for each
   12-4  applicant certified as a processor of organic food or fiber
   12-5  produced outside of this state.
   12-6        (c)  The department shall <may> charge an annual fee, as
   12-7  provided by department rule, <not to exceed $2,500> for a person
   12-8  who obtains a certificate of accreditation as an organic certifying
   12-9  agent.
  12-10        <(d)  The department shall set fees under this chapter in
  12-11  amounts that enable it to recover the costs of administering this
  12-12  chapter.>
  12-13        SECTION 2.20.  Subsection (c), Section 52.151, Agriculture
  12-14  Code, is amended to read as follows:
  12-15        (c)  Each marketing association shall pay to the department
  12-16  an annual license fee, as provided by department rule <of $10>.  A
  12-17  marketing association is exempt from all other franchise or license
  12-18  taxes, except that a marketing association is exempt from the
  12-19  franchise tax imposed by Chapter 171, Tax Code, only if exempted by
  12-20  that chapter.
  12-21        SECTION 2.21.  Section 53.006, Agriculture Code, is amended
  12-22  to read as follows:
  12-23        Sec. 53.006.  Certification.  The department shall issue to a
  12-24  financial pool a certificate of authority to do business under this
  12-25  chapter after the department:
  12-26              (1)  receives the bond required by Section 53.005 of
  12-27  this code;
  12-28              (2)  receives payment of a fee, as provided by
  12-29  department rule <of $10>; and
  12-30              (3)  determines that the bond is genuine.
  12-31        SECTION 2.22.  Subsection (d), Section 61.011, Agriculture
  12-32  Code, is amended to read as follows:
  12-33        (d)  Quarterly reports filed under Subsection (c)(2) of this
  12-34  section are due within 30 days after the last day of November,
  12-35  February, May, and August.  Unless filed in accordance with prior
  12-36  written approval of the department for late filing, a person who
  12-37  does not file the report within the allotted time shall pay to the
  12-38  department a penalty fee, as provided by department rule <not to
  12-39  exceed $25 or 10 percent of the amount of the fee due, whichever is
  12-40  greater>.
  12-41        SECTION 2.23.  Subsection (d), Section 62.005, Agriculture
  12-42  Code, is amended to read as follows:
  12-43        (d)  An application for licensing as a Foundation,
  12-44  Registered, or Certified producer of seed or plants must be
  12-45  accompanied by a <nonrefundable license> fee <not to exceed $100>,
  12-46  as provided by department rule.
  12-47        SECTION 2.24.  Subsection (a), Section 62.006, Agriculture
  12-48  Code, is amended to read as follows:
  12-49        (a)  A person engaging in the development, maintenance, or
  12-50  production of seed or plants for which standards of genetic purity
  12-51  and identity have been established by the board may apply to the
  12-52  board for registration as a plant breeder.  The applicant shall
  12-53  apply on forms prescribed by the board and shall include with the
  12-54  application a <nonrefundable> registration fee <of not more than
  12-55  $100>, as determined by the board.  To be registered as a plant
  12-56  breeder, a person must satisfy the board that the person is skilled
  12-57  in the science of plant breeding.  The board may require skill to
  12-58  be shown by evidence of accomplishments in the field and may
  12-59  require an oral or written examination in the subject.
  12-60        SECTION 2.25.  Subsection (a), Section  64.006, Agriculture
  12-61  Code, is amended to read as follows:
  12-62        (a)  A purchaser may begin arbitration by filing with the
  12-63  commissioner a sworn complaint and a <nonrefundable> filing fee, as
  12-64  provided by department rule <of $10>.  The purchaser shall send a
  12-65  copy of the complaint to the seller by certified mail.  Except in
  12-66  the case of seed that has not been planted, the complaint must be
  12-67  filed within the time necessary to permit effective inspection of
  12-68  the plants under field conditions.
  12-69        SECTION 2.26.  Subsection (c), Section 71.005, Agriculture
  12-70  Code, is amended to read as follows:
   13-1        (c)  The department<, by rule,> may charge a fee, as provided
   13-2  by department rule, <not to exceed $25> for an inspection required
   13-3  for the movement of plants into or out of a quarantined area.
   13-4        SECTION 2.27.  Subsection (b), Section 71.043, Agriculture
   13-5  Code, is amended to read as follows:
   13-6        (b)  A florist or nursery owner may apply for registration or
   13-7  renewal of registration by submitting an application prescribed by
   13-8  the department and an <a nonrefundable> annual fee.  The fee shall
   13-9  be based on the size and type of a location, as defined by
  13-10  department rule, where a florist or nursery owner grows for sale or
  13-11  lease or offers for sale or lease a florist item or nursery
  13-12  product.
  13-13        SECTION 2.28.  Subsection (a), Section 71.050, Agriculture
  13-14  Code, is amended to read as follows:
  13-15        (a)  Nursery products <Each nursery product> or florist items
  13-16  <item> offered for sale or lease, consigned for shipment, or
  13-17  shipped by freight, express, or other means of transportation shall
  13-18  be accompanied by a copy of the certificate of inspection issued by
  13-19  the department when required by foreign countries or other states
  13-20  for agricultural products exported from this state.
  13-21        SECTION 2.29.  Subsections (c) and (d), Section 71.051,
  13-22  Agriculture Code, are amended to read as  follows:
  13-23        (c)  <If the department approves a certificate of another
  13-24  state filed under this section, the department shall issue to the
  13-25  person filing the certificate a permit allowing the person to ship
  13-26  the nursery product or florist item into this state.  The permit
  13-27  shall be known as a Texas Importation Certificate.>
  13-28        <(d)>  Each car, box, bale, or package of a nursery product
  13-29  or florist item shall bear a tag printed with a copy of the <Texas
  13-30  Importation Certificate and the> certificate of inspection from the
  13-31  originating state.
  13-32        SECTION 2.30.  Subsection (a), Section 71.056, Agriculture
  13-33  Code, is amended to read as follows:
  13-34        (a)  The department shall fix by rule and collect a fee for
  13-35  inspection of nursery products or florist items when the inspection
  13-36  is required by foreign countries or other states for nursery
  13-37  products or florist items exported from this state <for the
  13-38  issuance of an importation certificate>.
  13-39        SECTION 2.31.  Subsection (e), Section 71.057, Agriculture
  13-40  Code, is amended to read as follows:
  13-41        (e)  A nursery dealer or nursery agent may apply for
  13-42  registration or renewal of registration by submitting an
  13-43  application prescribed by the department and an <a nonrefundable>
  13-44  annual fee.  The fee shall be based on the size and type of a
  13-45  location, as defined by department rule, where a nursery dealer or
  13-46  nursery agent offers a nursery product for sale or lease.
  13-47        SECTION 2.32.  Subsections (b) and (c), Section 71.114,
  13-48  Agriculture Code, are amended to read as follows:
  13-49        (b)  The department shall charge an inspection fee <is $5
  13-50  plus not less than 25 cents nor more than $1>, as provided <set> by
  13-51  rule of the department, for each acre over five acres to be
  13-52  inspected.
  13-53        (c)  In addition to the inspection fee, a person applying for
  13-54  certification of sweet potatoes shall pay a fee, as provided by
  13-55  department rule, <of not less than one cent nor more than three
  13-56  cents> for each certificate tag or stamp issued.
  13-57        SECTION 2.33.  Section 74.090, Agriculture Code, is amended
  13-58  to read as follows:
  13-59        Sec. 74.090.  Escrow Fee.  From each escrow account, the
  13-60  department is entitled to deduct an escrow fee, as provided by
  13-61  department rule <not to exceed an amount equal to one percent of
  13-62  the total deposit>.  Fees collected under this section shall be
  13-63  used for the purpose of compensating inspectors and defraying other
  13-64  necessary costs in the administration of this subchapter.
  13-65        SECTION 2.34.  Subsection (d), Section 75.004, Agriculture
  13-66  Code, is amended to read as follows:
  13-67        (d)  The department by rule shall set the fee for a dealer's
  13-68  license <in an amount not to exceed $100>.
  13-69        SECTION 2.35.  Subsection (a), Section 76.044, Agriculture
  13-70  Code, is amended to read as follows:
   14-1        (a)  The department shall charge a <A nonrefundable> fee, as
   14-2  provided by department rule, <of $100> for each pesticide to be
   14-3  registered.  The fee must be submitted with an application for
   14-4  registration or renewal of registration.
   14-5        SECTION 2.36.  Subsection (a), Section 76.073, Agriculture
   14-6  Code, is amended to read as follows:
   14-7        (a)  An application for a pesticide dealer license must be
   14-8  accompanied by an <a nonrefundable> annual registration fee <of not
   14-9  more than $100>, as fixed by the department.
  14-10        SECTION 2.37.  Subsection (c), Section 76.106, Agriculture
  14-11  Code, is amended to read as follows:
  14-12        (c)  Each regulatory agency may charge a <nonrefundable>
  14-13  testing fee, as fixed by the head of the regulatory agency, <of not
  14-14  more than $20> for testing in each license use category.
  14-15        SECTION 2.38.  Subsection (b), Section 76.108, Agriculture
  14-16  Code, is amended to read as follows:
  14-17        (b)  A person shall apply for an original or renewal
  14-18  commercial applicator license on forms prescribed by the regulatory
  14-19  agency.  The application shall include information as required by
  14-20  rule of the head of the agency and must be accompanied by an <a
  14-21  nonrefundable> annual license fee <of no more than $150>, as fixed
  14-22  by the head of the agency.
  14-23        SECTION 2.39.  Subsection (b), Section 76.109, Agriculture
  14-24  Code, is amended to read as follows:
  14-25        (b)  A person shall apply for an original or renewal
  14-26  noncommercial applicator license on forms prescribed by the
  14-27  regulatory agency.  A nongovernmental applicant shall include with
  14-28  the application an <a nonrefundable> annual license fee <of not
  14-29  more than $100>, as fixed by the head of the regulatory agency.  A
  14-30  regulatory agency may not charge a governmental entity applicant a
  14-31  license fee.
  14-32        SECTION 2.40.  Subsection (e), Section 76.112, Agriculture
  14-33  Code, is amended to read as follows:
  14-34        (e)  A person shall apply for an original or renewal private
  14-35  applicator license on forms prescribed by the regulatory agency.
  14-36  The application shall include information as required by agency
  14-37  rule and must be accompanied by a <nonrefundable> fee, as fixed by
  14-38  the head of the regulatory agency <of $50>.
  14-39        SECTION 2.41.  Section 95.034, Agriculture Code, is amended
  14-40  to read as follows:
  14-41        Sec. 95.034.  Inspection Fees.  <(a)>  The department shall
  14-42  collect a fee, as provided by department rule, <in the following
  14-43  amount> from each person who applies coloring matter to citrus
  14-44  fruit<:>
  14-45              <(1)  no more than one cent per container for each
  14-46  container with a capacity greater than one-half bushel;>
  14-47              <(2)  no more than one-half cent per container for each
  14-48  container with a capacity that is one-half bushel or less; or>
  14-49              <(3)  no more than one cent per 80-pound lot, or
  14-50  portion of 80-pound lot, for each lot that is sold or transported
  14-51  in bulk>.
  14-52        <(b)  The department shall set the fees authorized by this
  14-53  section at amounts that are as nearly as possible equal to the cost
  14-54  of administering this chapter.>
  14-55        SECTION 2.42.  Section 94.035, Agriculture Code, is amended
  14-56  to read as follows:
  14-57        Sec. 94.035.  INSPECTION FEES.  (a)  A person who sells or
  14-58  ships citrus fruit after August 31 and before December 16 shall pay
  14-59  to the department a <maximum> fee, as provided by department rule
  14-60  <of:>
  14-61              <(1)  2.5 cents per standard box that is sold,
  14-62  transported, or delivered for transportation;>
  14-63              <(2)  1.5 cents per one-half standard box, or other
  14-64  container that is one-half the size of a standard container, that
  14-65  is sold, transported, or delivered for transportation; or>
  14-66              <(3)  2.5 cents per 80-pound lot, or portion of an
  14-67  80-pound lot, that is sold or transported in bulk>.
  14-68        (b)  <The commissioner shall set the fees authorized by this
  14-69  section at amounts that are as nearly as possible equal to the cost
  14-70  of administering this chapter, and will reduce fees as necessary to
   15-1  prevent the accumulation of a surplus.>
   15-2        <(c)>  The fees under this section are due when citrus fruit
   15-3  is prepared for market or transportation.
   15-4        SECTION 2.43.  Section 101.006,  Agriculture Code, is amended
   15-5  to read as follows:
   15-6        Sec. 101.006.  License Fee.  (a)  Except as otherwise
   15-7  provided by this section, a person applying for a license shall
   15-8  include with the license application a refundable license fee, as
   15-9  provided by department rule <of $75>.
  15-10        (b)  The department shall charge a license fee for a cash
  15-11  dealer <is $25>.
  15-12        (c)  Except as otherwise provided by this section, a person
  15-13  who applies for a license as a commission merchant or retailer
  15-14  under both this chapter and Chapter 102 of this code is entitled to
  15-15  pay a single license fee, as provided by department rule <of $75>.
  15-16  The person's license shall reflect that the person is licensed to
  15-17  handle both citrus fruit and vegetables.
  15-18        (d)  A person who applies for a license under Subsection (b)
  15-19  of this section and Subsection (b) of Section 102.006 of this code
  15-20  is entitled to pay a single license fee, as provided by department
  15-21  rule <of $25>.  The person's license shall reflect that the person
  15-22  is licensed to handle both citrus fruit and vegetables.
  15-23        SECTION 2.44.  Subsection (c), Section 101.008, Agriculture
  15-24  Code, is amended to read as follows:
  15-25        (c)  To renew a license after the license has expired, the
  15-26  applicant must pay a late fee, as provided by Section 12.024 of
  15-27  this code <of $25 per day for each day after the expiration date of
  15-28  the license.  A late fee under this subsection may not exceed
  15-29  $500>.
  15-30        SECTION 2.45.  Subsection (b), Section 101.010, Agriculture
  15-31  Code, is amended to read as follows:
  15-32        (b)  The department shall <may> collect a fee, as provided by
  15-33  department rule, <not to exceed $5> for each card and shall issue
  15-34  transporting agent cards in a color different from buying agent
  15-35  cards.
  15-36        SECTION 2.46.  Section 102.006, Agriculture Code, is amended
  15-37  to read as follows:
  15-38        Sec. 102.006.  License Fee.  (a)  Except as otherwise
  15-39  provided by this section, a person applying for a license shall
  15-40  include with the license application a refundable license fee, as
  15-41  provided by department rule <of $75>.
  15-42        (b)  The department shall charge a license fee for a cash
  15-43  dealer <is $25>.
  15-44        (c)  Except as otherwise provided by this section, a person
  15-45  who applies for a license as a commission merchant or retailer
  15-46  under both this chapter and Chapter 101 of this code is entitled to
  15-47  pay a single license fee, as provided by department rule <of $75>.
  15-48  The person's license shall reflect that the person is licensed to
  15-49  handle both citrus fruit and vegetables.
  15-50        (d)  A person who applies for a license under Subsection (b)
  15-51  of this section and Subsection (b) of Section 101.006 of this code
  15-52  is entitled to pay a single license fee, as provided by department
  15-53  rule <of $25>.  The person's license shall reflect that the person
  15-54  is licensed to handle both citrus fruit and vegetables.
  15-55        SECTION 2.47.  Subsection (c), Section 102.008, Agriculture
  15-56  Code, is amended to read as follows:
  15-57        (c)  To renew a license after the license has expired, the
  15-58  applicant must pay a late fee, as provided by Section 12.024 of
  15-59  this code <of $25 per day for each day after the expiration date of
  15-60  the license.  A late fee under this subsection may not exceed
  15-61  $500>.
  15-62        SECTION 2.48.  Subsection (b), Section 102.010, Agriculture
  15-63  Code, is amended to read as follows:
  15-64        (b)  The department shall <may> collect a fee, as provided by
  15-65  department rule, <not to exceed $1> for each card and shall issue
  15-66  transporting agent cards in a color different from buying agent
  15-67  cards.
  15-68        SECTION 2.49.  Section 102.162, Agriculture Code, is amended
  15-69  to read as follows:
  15-70        Sec. 102.162.  Fees.  Each person applying for a marketing
   16-1  agreement or license shall submit to the department a filing fee,
   16-2  as provided by department rule, <of $10> and a deposit in an amount
   16-3  that the department considers sufficient and necessary to defray
   16-4  the expenses of preparing and making effective the marketing
   16-5  agreement or license.
   16-6        SECTION 2.50.  Section 103.005, Agriculture Code, is amended
   16-7  to read as follows:
   16-8        Sec. 103.005.  Initiation of Claim.  A person who deals with
   16-9  a commission merchant or retailer licensed under Chapter 101 or 102
  16-10  of this code in the purchasing, handling, selling, and accounting
  16-11  for sales of vegetables or citrus fruit and who is aggrieved by an
  16-12  action of the commission merchant or retailer as a result of a
  16-13  violation of terms or conditions of a contract made by the
  16-14  commission merchant or retailer may initiate a claim against the
  16-15  fund by filing with the department:
  16-16              (1)  a sworn complaint against the commission merchant
  16-17  or retailer; and
  16-18              (2)  a filing fee, as provided by department rule <of
  16-19  $15>.
  16-20        SECTION 2.51.  Subsections (a), (b), and (c), Section
  16-21  103.011, Agriculture Code, are amended to read as follows:
  16-22        (a)  Except as otherwise provided by this section, a
  16-23  commission merchant or retailer licensed under Chapter 101 or 102
  16-24  of this code shall pay an annual fee to the fund, as provided by
  16-25  department rule <of $200>.
  16-26        (b)  A retailer who is licensed under Chapter 101 or 102 of
  16-27  this code and whose annual purchases of vegetables and citrus fruit
  16-28  are less than $15,000 a year shall pay an annual fee, as provided
  16-29  by department rule <of $50>.
  16-30        (c)  A person who is required by Subsection (a) of this
  16-31  section to pay a fee <of $200> and who is licensed in one of those
  16-32  classifications under both Chapters 101 and 102 of this code may
  16-33  pay a single fee, as provided by department rule <of $250>.  A
  16-34  person who is required by Subsection (b) of this section to pay a
  16-35  <$50> fee and who is licensed in that classification under both
  16-36  Chapters 101 and 102 of this code may pay a single fee, as provided
  16-37  by department rule <of $75>.
  16-38        SECTION 2.52.  Subsection (c), Section 121.004, Agriculture
  16-39  Code, is amended to read as follows:
  16-40        (c)  Each grower, dealer, wholesaler, and processor shall pay
  16-41  an annual fee for a certificate of authority based on the actual
  16-42  amount of work done by or under the direction of the department in
  16-43  administering this chapter.  The department shall fix a <the> fee,
  16-44  as provided by department rule <in an amount not less than the
  16-45  following>, according to the number of rose plants handled, sold,
  16-46  or offered for sale during the calendar year. <:>
  16-47  <NUMBER OF PLANTS                                   FEE>
  16-48  <Less than 100,000                                  $15>
  16-49  <100,000 or more but less than 500,000              $25>
  16-50  <500,000 or more but less than 1,000,000            $50>
  16-51  <1,000,000 or more                                  $100>
  16-52        SECTION 2.53.  Subsection (a), Section 132.026, Agriculture
  16-53  Code, is amended to read as follows:
  16-54        (a)  The license fee for each plant operated by a
  16-55  dealer-wholesaler is provided <determined> by department rule
  16-56  <applying the fee schedule provided by Subsection (c) of this
  16-57  section as follows:>
  16-58              <(1)  for an applicant for an initial dealer-wholesaler
  16-59  license, the schedule is applied to an estimate of the average
  16-60  weekly volume of the month in which the applicant will handle the
  16-61  most eggs through the applicant's first license year;>
  16-62              <(2)  for an applicant for renewal of a
  16-63  dealer-wholesaler's license who has been in business for less than
  16-64  one year, the schedule is applied to the average weekly volume of
  16-65  the month in which the licensee handled the most eggs through May
  16-66  of the first license year; and>
  16-67              <(3)  for any other applicant for renewal of a
  16-68  dealer-wholesaler license, the schedule is applied to the average
  16-69  weekly volume of the 12 months preceding the last May 31>.
  16-70        SECTION 2.54.  Subsection (a), Section 132.027, Agriculture
   17-1  Code, is amended to read as follows:
   17-2        (a)  The license fee for each plant operated by a processor
   17-3  is provided <determined> by department rule <applying the fee
   17-4  schedule provided by Subsection (c) of this section as follows:>
   17-5              <(1)  for an applicant for an initial processor's
   17-6  license, the fee schedule is applied to an estimate of the average
   17-7  weekly volume of the month in which the applicant will handle the
   17-8  most eggs through the applicant's first license year;>
   17-9              <(2)  for an applicant for renewal of a processor's
  17-10  license who has been in business for less than one year, the fee
  17-11  schedule is applied to the average weekly volume of the month in
  17-12  which the licensee handled the most eggs through May of the first
  17-13  license year; and>
  17-14              <(3)  for any other applicant for renewal of a
  17-15  processor's license, the fee schedule is applied to the average
  17-16  weekly volume of the 12 months preceding the last May 31>.
  17-17        SECTION 2.55.  Section 132.028, Agriculture Code, is amended
  17-18  to read as follows:
  17-19        Sec. 132.028.  FEE FOR BROKER'S LICENSE.  The department
  17-20  shall charge a license fee, as provided by department rule, for a
  17-21  broker <is $350>.
  17-22        SECTION 2.56.  Subsections (a) and (b), Section 132.043,
  17-23  Agriculture Code, are amended to read as follows:
  17-24        (a)  A person licensed under this chapter who first
  17-25  establishes the grade, size, and classification of eggs offered for
  17-26  sale or sold in this state shall collect a fee, as provided by
  17-27  department rule <of five cents per case of 30 dozen eggs on the
  17-28  first sale of the eggs>.
  17-29        (b)  A processor licensed under this chapter shall pay an
  17-30  inspection fee, as provided by department rule,  <of five cents per
  17-31  case of 30 dozen eggs> on the processor's first use or change in
  17-32  form of the eggs processed.
  17-33        SECTION 2.57.  Section 134.014, Agriculture Code, is amended
  17-34  to read as follows:
  17-35        Sec. 134.014.  License Fees.  The department shall issue an
  17-36  aquaculture license or a fish farm vehicle license on the payment
  17-37  of a fee, as provided by department rule <in an amount set by the
  17-38  commissioner, not to exceed $100>.
  17-39        SECTION 2.58.  Subsection (b), Section 134.015, Agriculture
  17-40  Code, is amended to read as follows:
  17-41        (b)  A license is valid for two years after the date of
  17-42  issuance.  The department shall renew a license on submission by
  17-43  the licensee of a completed application and a renewal fee, as
  17-44  provided by department rule <in an amount set by the commissioner,
  17-45  not to exceed $100>, unless the department determines that the
  17-46  licensee has violated this chapter or a rule adopted under this
  17-47  chapter.
  17-48                         ARTICLE 3.  HEARINGS
  17-49        SECTION 3.01.  Chapter 12, Agriculture Code, is amended by
  17-50  adding Section 12.032 to read as follows:
  17-51        Sec. 12.032.  COOPERATION WITH STATE OFFICE OF ADMINISTRATIVE
  17-52  HEARINGS.  (a)  The commissioner and the chief administrative law
  17-53  judge of the State Office of Administrative Hearings by rule shall
  17-54  adopt a memorandum of understanding under which the State Office of
  17-55  Administrative Hearings conducts hearings for the department under
  17-56  this code.  The memorandum of understanding shall require the chief
  17-57  administrative law judge, the department, and the commissioner to
  17-58  cooperate in connection with the hearings under this code and may
  17-59  authorize the State Office of Administrative Hearings to perform
  17-60  any administrative act, including giving of notice, that is
  17-61  required to be performed by the department or the commissioner
  17-62  under this code.  The memorandum of understanding shall also
  17-63  require that hearings under this section be held at a location
  17-64  agreed upon by the State Office of Administrative Hearings and the
  17-65  department.
  17-66        (b)  For a hearing conducted by the State Office of
  17-67  Administrative Hearings under this code, the department and the
  17-68  commissioner retain the authority to decide whether the
  17-69  administrative law judge conducting the hearing for the State
  17-70  Office of Administrative Hearings shall:
   18-1              (1)  enter the final decision in the case after
   18-2  completion of the hearing; or
   18-3              (2)  propose a decision to the department or the
   18-4  commissioner for final consideration.
   18-5        (c)  Any provision of this code that provides that the
   18-6  department or the commissioner take an action at a hearing means:
   18-7              (1)  that the department or the commissioner shall take
   18-8  the action after the receipt of a proposal for decision from the
   18-9  State Office of Administrative Hearings regarding the hearing
  18-10  conducted by that office; or
  18-11              (2)  if so directed by the department or the
  18-12  commissioner, the State Office of Administrative Hearings shall
  18-13  enter the final decision in the case after completion of the
  18-14  hearing.
  18-15        (d)  The department shall prescribe rules of procedure for
  18-16  any cases not heard by the State Office of Administrative Hearings.
  18-17        (e)  The department by interagency contract shall reimburse
  18-18  the State Office of Administrative Hearings for the costs incurred
  18-19  in conducting administrative hearings for the department.  The
  18-20  department may pay an hourly fee for the costs of conducting these
  18-21  hearings or a fixed annual fee negotiated biennially by the
  18-22  department and the State Office of Administrative Hearings to
  18-23  coincide with the department's legislative appropriations request.
  18-24        (f)  This section does not apply to hearings held under
  18-25  Chapter 103.
  18-26        SECTION 3.02.  Section 12.020, Agriculture Code, is amended
  18-27  to read as follows:
  18-28        Sec. 12.020.  Administrative Penalties.  (a) If a person
  18-29  violates a provision of this code described by Subsection (c) of
  18-30  this section or a rule or order adopted by the department under a
  18-31  provision of this code described by Subsection (c) of this section,
  18-32  the department may assess an administrative penalty against the
  18-33  person as provided by this section.
  18-34        (b)  The penalty for each violation may be in an amount not
  18-35  to exceed the maximum provided by Subsection (c) of this section.
  18-36  Each day a violation continues or occurs may be considered a
  18-37  separate violation for purposes of penalty assessments.
  18-38        (c)  The provisions of this code subject to this section and
  18-39  the applicable penalty amounts are as follows:
  18-40            Provision                             Maximum Penalty
  18-41  Chapters 13, 14, 18, 61, 94, 95,
  18-42  101, 102, 103, 121, 125, <and> 132, and 134          $500
  18-43  Subchapter B, Chapter 71
  18-44  Chapters 75 and 76                                   $2,000
  18-45  Subchapters A and C, Chapter 71
  18-46  Chapters 72, 73, and 74                              $5,000.
  18-47        (d)  In determining the amount of the penalty, the department
  18-48  shall consider:
  18-49              (1)  the seriousness of the violation, including but
  18-50  not limited to the nature, circumstances, extent, and gravity of
  18-51  the prohibited acts, and the hazard or potential hazard created to
  18-52  the health or safety of the public;
  18-53              (2)  the <economic> damage to property or the
  18-54  environment caused by the violation;
  18-55              (3)  the history of previous violations;
  18-56              (4)  the amount necessary to deter future violations;
  18-57              (5)  efforts to correct the violation; and
  18-58              (6)  any other matter that justice may require.
  18-59        (e)  If, after investigation of a possible violation and the
  18-60  facts surrounding that possible violation, the department
  18-61  determines that a violation has occurred, the department may issue
  18-62  a violation report stating the facts on which the conclusion that a
  18-63  violation occurred is based, recommending that an administrative
  18-64  penalty under this section be imposed on the person charged, and
  18-65  recommending the amount of that proposed penalty.  The department
  18-66  shall base the recommended amount of the proposed penalty on the
  18-67  seriousness of the violation determined by consideration of the
  18-68  factors set forth in Subsection (d) of this section.
  18-69        (f)  Not later than the 14th day after the date on which the
  18-70  report is issued, the department shall give written notice of the
   19-1  report to the person charged.  The notice shall include a brief
   19-2  summary of the charges, a statement of the amount of the penalty
   19-3  recommended, and a statement of the right of the person charged to
   19-4  a hearing on the occurrence of the violation or the amount of the
   19-5  penalty, or both the occurrence of the violation and the amount of
   19-6  the penalty.
   19-7        (g)  Not later than the 20th day after the date on which
   19-8  notice is received, the person charged may accept the determination
   19-9  of the department made under Subsection (e) of this section,
  19-10  including the recommended penalty, or make a written request for a
  19-11  hearing on the determination.
  19-12        (h)  If the person charged with the violation accepts the
  19-13  determination of the department, the commissioner shall issue an
  19-14  order approving the determination and ordering the payment of the
  19-15  recommended penalty.
  19-16        (i)  If the person charged requests a hearing or fails to
  19-17  timely respond to the notice, the department shall set a hearing
  19-18  and give notice of the hearing.  The hearing shall be conducted
  19-19  under Section 12.032 <held by a hearing examiner designated by the
  19-20  department>.  The administrative law judge <hearing examiner> shall
  19-21  make findings of fact and conclusions of law and promptly issue to
  19-22  the commissioner a proposal for decision as to the occurrence of
  19-23  the violation, including a recommendation as to the amount of the
  19-24  proposed penalty if a penalty is warranted.  Based on the findings
  19-25  of fact, conclusions of law, and recommendations of the judge
  19-26  <hearing examiner>, the commissioner by order may find a violation
  19-27  has occurred and may assess a penalty or may find that no violation
  19-28  has occurred.  <All proceedings under this subsection are subject
  19-29  to the Administrative Procedure and Texas Register Act (Article
  19-30  6252-13a, Vernon's Texas Civil Statutes).>
  19-31        (j)  The department shall give notice of the commissioner's
  19-32  order to the person charged.  The notice shall include:
  19-33              (1)  the findings of fact and conclusions of law
  19-34  separately stated;
  19-35              (2)  the amount of the penalty ordered, if any;
  19-36              (3)  a statement of the right of the person charged to
  19-37  judicial review of the commissioner's order, if any; and
  19-38              (4)  other information required by law.
  19-39        (k)  Within the 30-day period immediately following the day
  19-40  on which the order becomes final under Section 2001.144, Government
  19-41  Code <as provided by Subsection (c), Section 16, Administrative
  19-42  Procedure and Texas Register Act (Article 6252-13a, Vernon's Texas
  19-43  Civil Statutes)>, the person charged with the penalty shall:
  19-44              (1)  pay the penalty in full; <or>
  19-45              (2)  pay the amount of the penalty and file a petition
  19-46  for judicial review contesting the occurrence of the violation, the
  19-47  amount of the penalty, or both the occurrence of the violation and
  19-48  the amount of the penalty; or
  19-49              (3)  without paying the amount of the penalty, file a
  19-50  petition for judicial review contesting the occurrence of the
  19-51  violation, the amount of the penalty, or both the occurrence of the
  19-52  violation and the amount of the penalty <if the person files a
  19-53  petition for judicial review contesting either the amount of the
  19-54  penalty or the fact of the violation or contesting both the fact of
  19-55  the violation and the amount of the penalty:>
  19-56                    <(A)  forward the amount to the department for
  19-57  placement in an escrow account; or>
  19-58                    <(B)  in lieu of payment into escrow, post with
  19-59  the department a supersedeas bond in a form approved by the
  19-60  department for the amount of the penalty, the bond to be effective
  19-61  until all judicial review of the order or decision is final>.
  19-62        (l)  Within the 30-day period, a person who acts under
  19-63  Subsection (k)(3) of this section may:
  19-64              (1)  stay enforcement of the penalty by:
  19-65                    (A)  paying the amount of the penalty to the
  19-66  court for placement in an escrow account; or
  19-67                    (B)  giving to the court a supersedeas bond that
  19-68  is approved by the court for the amount of the penalty and that is
  19-69  effective until all judicial review of the commissioner's order is
  19-70  final; or
   20-1              (2)  request the court to stay enforcement of the
   20-2  penalty by:
   20-3                    (A)  filing with the court a sworn affidavit of
   20-4  the person stating that the person is financially unable to pay the
   20-5  amount of the penalty and is financially unable to give the
   20-6  supersedeas bond; and
   20-7                    (B)  giving a copy of the affidavit to the
   20-8  department by certified mail <If a person charged is financially
   20-9  unable to either forward the amount of the penalty for placement in
  20-10  an escrow account or post a supersedeas bond for the amount of the
  20-11  penalty, the person may satisfy the requirements of Subsection
  20-12  (k)(2) of this section by filing with the department an affidavit
  20-13  sworn by the person charged, stating that the person is financially
  20-14  unable to either forward the amount of the penalty or post a bond>.
  20-15        (m)  The department on receipt of a copy of an affidavit
  20-16  under Subsection (l)(2) of this section may file with the court,
  20-17  within five days after the date the copy is received, a contest to
  20-18  the affidavit.  The court shall hold a hearing on the facts alleged
  20-19  in the affidavit as soon as practicable and shall stay the
  20-20  enforcement of the penalty on finding that the alleged facts are
  20-21  true.  The person who files an affidavit has the burden of proving
  20-22  that the person is financially unable to pay the amount of the
  20-23  penalty and to give a supersedeas bond.
  20-24        (n)  If the person does not pay the amount of the penalty and
  20-25  the enforcement of the penalty is not stayed, the department may
  20-26  refer the matter to the attorney  general for collection of the
  20-27  amount of the penalty.
  20-28        (o)  Judicial review of the order of the commissioner:
  20-29              (1)  is instituted by filing a petition as provided by
  20-30  Subchapter G, Chapter 2001, Government Code; and
  20-31              (2)  is under the substantial evidence rule.
  20-32        (p)  If the court sustains the occurrence of the violation,
  20-33  the court may uphold or reduce the amount of the penalty and order
  20-34  the person to pay the full or reduced amount of the penalty.  If
  20-35  the court does not sustain the occurrence of the violation, the
  20-36  court shall order that no penalty is owed.
  20-37        (q)  When the judgment of the court becomes final, the court
  20-38  shall proceed under this subsection.  If the person paid the amount
  20-39  of the penalty and if that amount is reduced or is not upheld by
  20-40  the court, the court shall order that the appropriate amount plus
  20-41  accrued interest be remitted to the person.  The rate of the
  20-42  interest is the rate charged on loans to depository institutions by
  20-43  the New York Federal Reserve Bank, and the interest shall be paid
  20-44  for the period beginning on the date the penalty was paid and
  20-45  ending on the date the penalty is remitted.  If the person gave a
  20-46  supersedeas bond and if the amount of the penalty is not upheld by
  20-47  the court, the court shall order the release of the bond.  If the
  20-48  person gave a supersedeas bond and if the amount of the penalty is
  20-49  reduced, the court shall order the release of the bond after the
  20-50  person pays the amount.  <Failure to forward the money to or to
  20-51  post the bond or file the affidavit with the department within the
  20-52  time provided by Subsection (k) of this section results in a waiver
  20-53  of all legal rights to judicial review.  Also, if the person
  20-54  charged fails to pay the penalty in full as provided under
  20-55  Subsection (k)(1) of this section or forward the money, post the
  20-56  bond, or file the affidavit as provided by Subsection (k) or (l) of
  20-57  this section, the department may forward the matter to the attorney
  20-58  general for enforcement.>
  20-59        <(n)  Judicial review of the order or decision of the
  20-60  department assessing the penalty shall be under the substantial
  20-61  evidence rule and shall be instituted by filing a petition with a
  20-62  district court in Travis County, as provided by Section 19,
  20-63  Administrative Procedure and Texas Register Act (Article 6252-13a,
  20-64  Vernon's Texas Civil Statutes).>
  20-65        <(o)  If the penalty is reduced or not assessed by the court,
  20-66  the department shall remit to the person charged the appropriate
  20-67  amount plus accrued interest if the penalty has been paid or shall
  20-68  execute a release of the bond if a supersedeas bond has been
  20-69  posted.  The accrued interest on amounts remitted by the department
  20-70  under this subsection shall be paid at a rate equal to the rate
   21-1  charged on loans to depository institutions by the New York Federal
   21-2  Reserve Bank and shall be paid for the period beginning on the date
   21-3  the penalty is paid to the department under Subsection (k) of this
   21-4  section and ending on the date the penalty is remitted.>
   21-5        (r) <(p)>  A penalty collected under this section shall be
   21-6  deposited in the state treasury to the credit of the General
   21-7  Revenue Fund.
   21-8        (s)  All proceedings under this section are subject to
   21-9  Chapter 2001, Government Code, except as provided in Subsections
  21-10  (t) and (u).
  21-11        (t)  Notwithstanding Section 2001.058, Government Code, the
  21-12  commissioner may change a finding of fact or conclusion of law made
  21-13  by the administrative law judge if the commissioner:
  21-14              (1)  determines that the administrative law judge:
  21-15                    (A)  did not properly apply or interpret
  21-16  applicable law, department rules or policies, or prior
  21-17  administrative decisions; or
  21-18                    (B)  issued a finding of fact that is not
  21-19  supported by a preponderence of the evidence; or
  21-20              (2)  determines that a department policy or a prior
  21-21  administrative decision on which the administrative law judge
  21-22  relied is incorrect or should be changed.
  21-23        (u)  The commissioner shall state in writing the specific
  21-24  reason and legal basis for a determination under Subsection (t).
  21-25        SECTION 3.03.  Subsection (c), Section 13.2555, Agriculture
  21-26  Code, is amended to read as follows:
  21-27        (c)  If the department proposes to revoke, modify, or suspend
  21-28  a person's certificate, the person is entitled to a hearing
  21-29  conducted under Section 12.032 <before a hearings officer
  21-30  designated by the department>.  The decision of the department is
  21-31  appealable in the same manner as provided for contested cases under
  21-32  Chapter 2001, Government Code <the Administrative Procedure and
  21-33  Texas Register Act (Article 6252-13a, Vernon's Texas Civil
  21-34  Statutes)>.
  21-35        SECTION 3.04.  Subsection (d), Section 13.306, Agriculture
  21-36  Code, is amended to read as follows:
  21-37        (d)  If the department proposed to deny a person's
  21-38  application for a license for inspecting or testing of liquefied
  21-39  gas meters or to revoke, modify, or suspend a person's license, the
  21-40  person is entitled to a hearing conducted under Section 12.032
  21-41  <before a hearings officer designated by the department>.  The
  21-42  decision of the department is appealable in the same manner as
  21-43  provided for contested cases under Chapter 2001, Government Code
  21-44  <the Administrative Procedure and Texas Register Act (Article
  21-45  6252-13a, Vernon's Texas Civil Statutes)>.
  21-46        SECTION 3.05.  Subsection (d), Section 13.356, Agriculture
  21-47  Code, is amended to read as follows:
  21-48        (d)  If the department proposes to deny a person's
  21-49  application for a license for inspecting or testing of ranch scales
  21-50  or to revoke, modify, or suspend a person's license, the person is
  21-51  entitled to a hearing conducted under Section 12.032 <before a
  21-52  hearings officer designated by the department>.  The decision of
  21-53  the department is appealable in the same manner as provided for
  21-54  contested cases under Chapter 2001, Government Code <the
  21-55  Administrative Procedure and Texas Register Act (Article 6252-13a,
  21-56  Vernon's Texas Civil Statutes)>.
  21-57        SECTION 3.06.  Subsection (b), Section 14.003, Agriculture
  21-58  Code, is amended to read as follows:
  21-59        (b)  In any hearing conducted <held by the department> under
  21-60  this subchapter, the State Office of Administrative Hearings
  21-61  <department> may:
  21-62              (1)  examine under oath any person and examine books
  21-63  and records of any licensee;
  21-64              (2)  hear testimony and gather evidence for the
  21-65  discharge of duties under this subchapter;
  21-66              (3)  administer oaths; and
  21-67              (4)  issue subpoenas, effective in any part of this
  21-68  state, and require attendance of witnesses and the production of
  21-69  books.
  21-70        SECTION 3.07.  Subsection (e), Section 14.015, Agriculture
   22-1  Code, is amended to read as follows:
   22-2        (e)  Except as provided by Subsection (c) of this section, if
   22-3  the department proposes to deny, revoke, modify, or suspend a
   22-4  person's application or license, the person is entitled to a
   22-5  hearing conducted under Section 12.032 <before a hearings officer
   22-6  designated by the department>.  The decision of the department is
   22-7  appealable in the same manner as provided for contested cases under
   22-8  Chapter 2001, Government Code <the Administrative Procedure and
   22-9  Texas Register Act (Article 6252-13a, Vernon's Texas Civil
  22-10  Statutes)>.
  22-11        SECTION 3.08.  Subsection (c), Section 61.0135, Agriculture
  22-12  Code, is amended to read as follows:
  22-13        (c)  If the department proposes to revoke, modify, or suspend
  22-14  a person's license, the person is entitled to a hearing conducted
  22-15  under Section 12.032 <before a hearings officer designated by the
  22-16  department>.  The decision of the department is appealable in the
  22-17  same manner as provided for contested cases under Chapter 2001,
  22-18  Government Code <the Administrative Procedure and Texas Register
  22-19  Act (Article 6252-13a, Vernon's Texas Civil Statutes)>.
  22-20        SECTION 3.09.  Subsection (d), Section 62.010, Agriculture
  22-21  Code, is amended to read as follows:
  22-22        (d)  If the department proposes to revoke, modify, or suspend
  22-23  a person's registration or license, the person is entitled to a
  22-24  hearing conducted under Section 12.032 <before a hearings officer
  22-25  designated by the department>.  The board shall prescribe
  22-26  procedures by which all decisions of the department to revoke,
  22-27  modify, or suspend a registration or license issued under this
  22-28  chapter are appealable to the board.
  22-29        SECTION 3.10.  Subsection (c), Section 75.0055, Agriculture
  22-30  Code, is amended to read as follows:
  22-31        (c)  If the department proposes to deny a person's
  22-32  application for a license or revoke, modify, or suspend a person's
  22-33  license, the person is entitled to a hearing conducted under
  22-34  Section 12.032 <before a hearings officer designated by the
  22-35  department>.  The decision of the department is appealable in the
  22-36  same manner as provided for contested cases under Chapter 2001,
  22-37  Government Code <the Administrative Procedure and Texas Register
  22-38  Act (Article 6252-13a, Vernon's Texas Civil Statutes)>.
  22-39        SECTION 3.11.  Subsection (f), Section 75.021, Agriculture
  22-40  Code, is amended to read as follows:
  22-41        (f)  Before the 21st day after the day on which an order is
  22-42  entered, an interested person may appeal an order of a
  22-43  commissioners court issued under this section to district court to
  22-44  test the reasonableness of the commissioners court's fact-finding.
  22-45  On appeal, the district court shall follow the rules governing
  22-46  judicial review of contested cases under Subchapter G, Chapter
  22-47  2001, Government Code <Section 19, Administrative Procedure and
  22-48  Texas Register Act (Article 6252-13a, Vernon's Texas Civil
  22-49  Statutes)>, and shall apply the substantial evidence rule.  Appeals
  22-50  may be taken from the district court as in other civil cases.
  22-51        SECTION 3.12.  Subsection (c), Section 75.022, Agriculture
  22-52  Code, is amended to read as follows:
  22-53        (c)  Section 12.020 <76.1555> of this code, which provides
  22-54  for the assessment of administrative penalties, applies to a person
  22-55  who violates this chapter or a rule or order adopted by the
  22-56  department under this chapter.
  22-57        SECTION 3.13.  Subsection (a), Section 76.047, Agriculture
  22-58  Code, is amended to read as follows:
  22-59        (a)  If the department has reason to believe that any use of
  22-60  a registered pesticide is in violation of a provision of this
  22-61  chapter or is dangerous or harmful, the department shall determine
  22-62  whether <may conduct> a hearing shall be held under Section 12.032
  22-63  on denial or cancellation of registration.
  22-64        SECTION 3.14.  Subsection (d), Section 76.076, Agriculture
  22-65  Code, is amended to read as follows:
  22-66        (d)  If the department proposes to deny a person's
  22-67  application for a pesticide dealer license or to revoke, modify, or
  22-68  suspend a person's license, the person is entitled to a hearing
  22-69  conducted under Section 12.032 <before a hearings officer
  22-70  designated by the department>.  The decision of the department is
   23-1  appealable in the same manner as provided for contested cases under
   23-2  Chapter 2001, Government Code <the Administrative Procedure and
   23-3  Texas Register Act (Article 6252-13a, Vernon's Texas Civil
   23-4  Statutes)>.
   23-5        SECTION 3.15.  Section 76.116, Agriculture Code, is amended
   23-6  by amending Subsection (d) and by adding Subsection (e) to read as
   23-7  follows:
   23-8        (d)  Except for a temporary suspension under Subsection (b)
   23-9  of this section, if the regulatory agency, except for the
  23-10  department, proposes to suspend, modify, or revoke a person's
  23-11  license or certificate, the person is entitled to a hearing before
  23-12  a hearings officer designated by the agency.  The agency shall
  23-13  prescribe procedures by which all decisions to suspend, modify, or
  23-14  revoke are appealable to the governing officer or board of the
  23-15  agency.
  23-16        (e)  Except for a temporary suspension under Subsection (b)
  23-17  of this section, if the department proposes to suspend, modify, or
  23-18  revoke a person's license or certificate, the person is entitled to
  23-19  a hearing conducted as provided under Section 12.032.  The decision
  23-20  of the department is appealable in the same manner as provided for
  23-21  contested cases under Chapter 2001, Government Code.
  23-22        SECTION 3.16.  Section 76.1555, Agriculture Code, is amended
  23-23  to read as follows:
  23-24        Sec. 76.1555.  Administrative Penalty.  (a)  If a person
  23-25  violates a provision of Chapter 75 or 76 of this code administered
  23-26  by the department or a rule or order adopted by the department
  23-27  under either of those chapters, the department may assess an
  23-28  administrative penalty against the person as provided by Section
  23-29  12.020, except <this section.>
  23-30        <(b)  The penalty may be in an amount not to exceed $2,000
  23-31  for each violation, provided> that the penalty shall not exceed
  23-32  $4,000 for all violations related to a single incident.
  23-33        (b)  The department shall establish a schedule stating the
  23-34  types of violations possible under Chapters 75 and 76 of this code
  23-35  <and the maximum fine applicable to each type of violation>.  The
  23-36  department is not required to comply with Subchapter B, Chapter
  23-37  2001, Government Code <Section 5, Administrative Procedure and
  23-38  Texas Register Act (Article 6252-13a, Vernon's Texas Civil
  23-39  Statutes)>, when establishing or revising the schedule.  The
  23-40  department shall publish the initial schedule and any subsequent
  23-41  revision in the Texas Register before the schedule or revision is
  23-42  implemented.
  23-43        (c)  <In determining the amount of the penalty, the
  23-44  department shall consider:>
  23-45              <(1)  the seriousness of the violation, including but
  23-46  not limited to the nature, circumstances, extent, and gravity of
  23-47  the prohibited acts, and the hazard or potential hazard created to
  23-48  the health or safety of the public;>
  23-49              <(2)  the economic damage to property or the
  23-50  environment caused by the violation;>
  23-51              <(3)  the history of previous violations;>
  23-52              <(4)  the amount necessary to deter future violations;>
  23-53              <(5)  efforts to correct the violation; and>
  23-54              <(6)  any other matter that justice may require.>
  23-55        <(d)  If, after investigation of a possible violation and the
  23-56  facts surrounding that possible violation, the department
  23-57  determines that a violation has occurred, the department may issue
  23-58  a violation report stating the facts on which the conclusion that a
  23-59  violation occurred is based and may recommend that an
  23-60  administrative penalty under this section be imposed on the person
  23-61  charged and recommending the amount of that proposed penalty.  The
  23-62  department shall base the recommended amount of the proposed
  23-63  penalty on the seriousness of the violation determined by
  23-64  consideration of the factors set forth in Subsection (c) of this
  23-65  section.>
  23-66        <(e)  Not later than the 14th day after the date on which the
  23-67  report is issued, the department shall give written notice of the
  23-68  report to the person charged.  The notice shall include a brief
  23-69  summary of the charges, a statement of the amount of the penalty,
  23-70  if any is recommended, and a statement of the right of the person
   24-1  charged to a hearing on the occurrence of the violation or the
   24-2  amount of the penalty, or both the occurrence of the violation and
   24-3  the amount of the penalty.>
   24-4        <(f)  Not later than the 20th day after the date on which
   24-5  notice is received, the person charged either may accept the
   24-6  determination of the department made under Subsection (d) of this
   24-7  section, including the recommended penalty, or make a written
   24-8  request for a hearing on the determination.>
   24-9        <(g)  If the person charged with the violation accepts the
  24-10  determination of the department, the commissioner shall issue an
  24-11  order approving the determination and ordering the payment of the
  24-12  recommended penalty.>
  24-13        <(h)  If the person charged requests a hearing or fails to
  24-14  timely respond to the notice, the department shall set a hearing
  24-15  and give notice of the hearing.  The hearing shall be held by a
  24-16  hearing examiner designated by the department.  The hearing
  24-17  examiner shall make findings of fact and conclusions of law and
  24-18  promptly issue to the commissioner a proposal for decision as to
  24-19  the occurrence of the violation, including a recommendation as to
  24-20  the amount of the proposed penalty if a penalty is warranted.
  24-21  Based on the findings of fact, conclusions of law, and
  24-22  recommendations of the hearing examiner, the commissioner by order
  24-23  may find a violation has occurred and may assess a penalty or may
  24-24  find that no violation has occurred.  All proceedings under this
  24-25  subsection are subject to the Administrative Procedure and Texas
  24-26  Register Act (Article 6252-13a, Vernon's Texas Civil Statutes).>
  24-27        <(i)  The department shall give notice of the commissioner's
  24-28  order to the person charged.  The notice shall include:>
  24-29              <(1)  the findings of fact and conclusions of law
  24-30  separately stated;>
  24-31              <(2)  the amount of the penalty ordered, if any;>
  24-32              <(3)  a statement of the right of the person charged to
  24-33  judicial review of the commissioner's order, if any; and>
  24-34              <(4)  other information required by law.>
  24-35        <(j)  Within the 30-day period immediately following the day
  24-36  on which the order becomes final as provided by Section 16(c),
  24-37  Administrative Procedure and Texas Register Act (Article 6252-13a,
  24-38  Vernon's Texas Civil Statutes), the person charged with the penalty
  24-39  shall:>
  24-40              <(1)  pay the penalty in full; or>
  24-41              <(2)  if the person files a petition for judicial
  24-42  review contesting either the amount of the penalty or the fact of
  24-43  the violation or contesting both the fact of the violation and the
  24-44  amount of the penalty, post a supersedeas bond in a form approved
  24-45  by the department for the amount of the penalty or $1,000,
  24-46  whichever is less, the bond to be effective until all judicial
  24-47  review of the order or decision is final.>
  24-48        <(k)  A bond under Subsection (j)(2) of this section must be
  24-49  posted with the district clerk.  The bond must be filed at the same
  24-50  time the petition for judicial review is filed.>
  24-51        <(l)  If a person charged is financially unable to post a
  24-52  supersedeas bond, the person may satisfy the requirements of
  24-53  Subsection (j)(2) of this section by filing with the district clerk
  24-54  an affidavit sworn by the person charged stating that the person is
  24-55  financially unable to post a bond.>
  24-56        <(m)  Failure to post the bond or file the affidavit within
  24-57  the time provided by Subsection (j) of this section results in a
  24-58  waiver of all legal rights to judicial review.  Also, if the person
  24-59  charged fails to pay the penalty in full as provided under
  24-60  Subsection (j)(1) of this section or post the bond or file the
  24-61  affidavit as provided by Subsection (j) or (l) of this section, the
  24-62  department may forward the matter to the attorney general for
  24-63  enforcement.>
  24-64        <(n)  Judicial review of the order or decision of the
  24-65  department assessing the penalty shall be under the substantial
  24-66  evidence rule and shall be instituted by filing a petition with a
  24-67  district court in Travis County, as provided by Section 19,
  24-68  Administrative Procedure and Texas Register Act (Article 6252-13a,
  24-69  Vernon's Texas Civil Statutes).>
  24-70        <(o)  On final judgment of the court and payment of any
   25-1  penalties and costs assessed by the court, the department shall
   25-2  execute a release of any supersedeas bond posted under this
   25-3  section.>
   25-4        <(p)  A penalty collected under this section shall be
   25-5  deposited in the state treasury to the credit of the General
   25-6  Revenue Fund.>
   25-7        <(q)>  If the department elects to assess an administrative
   25-8  penalty, no action for a civil penalty may be based on the same
   25-9  violation or violations.
  25-10        SECTION 3.17.  Subsection (a), Section 76.181, Agriculture
  25-11  Code, is amended to read as follows:
  25-12        (a)  A person whose application for registration of a
  25-13  pesticide has been denied or whose registration for a pesticide has
  25-14  been canceled may appeal the action in the manner provided for
  25-15  appeal of contested cases under Chapter 2001, Government Code <the
  25-16  Administrative Procedure and Texas Register Act (Article 6252-13a,
  25-17  Vernon's Texas Civil Statutes)>.
  25-18        SECTION 3.18.  Subsection (a), Section 76.182, Agriculture
  25-19  Code, is amended to read as follows:
  25-20        (a)  A person whose application for an experimental use
  25-21  permit, pesticide dealer license, commercial applicator license,
  25-22  noncommercial applicator license, or private applicator license has
  25-23  been denied or whose experimental use permit, pesticide dealer
  25-24  license, commercial applicator license, noncommercial applicator
  25-25  license, private applicator license, or private applicator
  25-26  certificate has been suspended for more than 10 days, revoked, or
  25-27  modified may appeal the action in the manner provided for appeal of
  25-28  contested cases under Chapter 2001, Government Code <the
  25-29  Administrative Procedure and Texas Register Act (Article 6252-13a,
  25-30  Vernon's Texas Civil Statutes)>.
  25-31        SECTION 3.19.  Section 96.005, Agriculture Code, is amended
  25-32  to read as follows:
  25-33        Sec. 96.005.  Revocation of License.  Following a hearing
  25-34  conducted under Section 12.032, the department shall revoke the
  25-35  license of a licensed grain sampler who:
  25-36              (1)  fails to comply with the standards for sampling
  25-37  prescribed by the department; or
  25-38              (2)  fails to keep the bond in force in the amount
  25-39  required by the department.
  25-40        SECTION 3.20.  Subsection (d), Section 101.007, Agriculture
  25-41  Code, is amended to read as follows:
  25-42        (d)  Before refusing an application for a license under this
  25-43  section, <the department shall conduct> a hearing shall be
  25-44  conducted under Section 12.032 on the license application, and the
  25-45  applicant may appeal the decision <of the department,> in the
  25-46  manner provided for contested cases under Chapter 2001, Government
  25-47  Code <the Administrative Procedure and Texas Register Act (Article
  25-48  6252-13a, Vernon's Texas Civil Statutes)>.
  25-49        SECTION 3.21.  Subsection (c), Section 101.012, Agriculture
  25-50  Code, is amended to read as follows:
  25-51        (c)  If the department proposes to revoke, modify, or suspend
  25-52  a person's license or identification card, the person is entitled
  25-53  to a hearing conducted under Section 12.032 <before a hearings
  25-54  officer designated by the department>.  The decision <of the
  25-55  department> is appealable in the same manner as provided for
  25-56  contested cases under Chapter 2001, Government Code <the
  25-57  Administrative Procedure and Texas Register Act (Article 6252-13a,
  25-58  Vernon's Texas Civil Statutes)>.
  25-59        SECTION 3.22.  Subsection (d), Section 102.007, Agriculture
  25-60  Code, is amended to read as follows:
  25-61        (d)  Before refusing an application for a license under this
  25-62  section, <the department shall conduct> a hearing shall be
  25-63  conducted under Section 12.032 on the license application, and the
  25-64  applicant may appeal the decision <of the department,> in the
  25-65  manner provided for contested cases under Chapter 2001, Government
  25-66  Code <the Administrative Procedure and Texas Register Act (Article
  25-67  6252-13a, Vernon's Texas Civil Statutes)>.
  25-68        SECTION 3.23.  Subsection (c), Section 102.012, Agriculture
  25-69  Code, is amended to read as follows:
  25-70        (c)  If the department proposes to revoke, modify, or suspend
   26-1  a person's license or identification card, the person is entitled
   26-2  to a hearing conducted under Section 12.032 <before a hearings
   26-3  officer designated by the department>.  The decision <of the
   26-4  department> is appealable in the same manner as provided for
   26-5  contested cases under Chapter 2001, Government Code <the
   26-6  Administrative Procedure and Texas Register Act (Article 6252-13a,
   26-7  Vernon's Texas Civil Statutes)>.
   26-8        SECTION 3.24.  Subsection (b), Section 103.006, Agriculture
   26-9  Code, is amended to read as follows:
  26-10        (b)  A quorum of the board must be present in order to
  26-11  conduct a hearing.  The board shall conduct the hearing and a party
  26-12  not satisfied with the decision of the board may appeal in the
  26-13  manner provided for contested cases under Chapter 2001, Government
  26-14  Code <the Administrative Procedure and Texas Register Act (Article
  26-15  6252-13a, Vernon's Texas Civil Statutes)>.
  26-16        SECTION 3.25.  Subsection (f), Section 125.005, Agriculture
  26-17  Code, is amended to read as follows:
  26-18        (f)  If it is determined <After January 1, 1989, if the
  26-19  department determines> after a hearing conducted under Section
  26-20  12.032 that an employer has repeatedly failed to maintain the forms
  26-21  and attachments as required, the department may require the
  26-22  employer to file the documents with the department.  In addition,
  26-23  the person may be subject to any applicable penalties provided by
  26-24  this chapter.
  26-25        SECTION 3.26.  Subsections (c), (d), and (h), Section
  26-26  125.016, Agriculture Code, are amended to read as follows:
  26-27        (c)  The department shall complete an investigation of a
  26-28  complaint not later than 90 days after the date on which the
  26-29  complaint is filed.  A <The department shall conduct a> hearing
  26-30  shall be conducted under Section 12.032 and <issue> an enforcement
  26-31  order issued, if appropriate, not later than 90 days after the date
  26-32  on which the investigation is completed.   If it is necessary to
  26-33  commence an action relating to an alleged violation, the action
  26-34  must be commenced not later than 60 days after the date on which
  26-35  the investigation is completed.
  26-36        (d)  After providing at least 14 days' written notice and an
  26-37  opportunity for a public hearing, the department may issue an
  26-38  enforcement order requiring any employer or chemical manufacturer
  26-39  covered by this chapter to comply with this chapter or rules
  26-40  adopted under this chapter.  <In addition, if the employer or
  26-41  chemical manufacturer fails to comply with this chapter or rules
  26-42  adopted under this chapter within 14 days after receiving the
  26-43  written notice under this subsection, or fails at any time to
  26-44  comply with an enforcement order issued under this chapter, the
  26-45  department may require the employer or chemical manufacturer to pay
  26-46  an administrative penalty of not more than $500 for each act that
  26-47  is a violation of this chapter or a rule adopted or enforcement
  26-48  order issued under this chapter.>  A public hearing held under this
  26-49  subsection is a contested case under Chapter 2001, Government Code
  26-50  <the Administrative Procedure and Texas Register Act (Article
  26-51  6252-13a, Vernon's Texas Civil Statutes)>, and may be appealed
  26-52  under that chapter <Act>.  In the case of a medical emergency, the
  26-53  department may issue an enforcement order immediately and shall
  26-54  provide the opportunity for a hearing on the order within 10 days
  26-55  after the date on which the order is issued.
  26-56        (h)  The department may request the attorney general to
  26-57  represent the department in any legal proceeding authorized under
  26-58  this chapter.  An action for civil or criminal penalties or
  26-59  injunctive relief shall be brought in the county in which the
  26-60  alleged violation occurred or is occurring.
  26-61        SECTION 3.27.  Subsection (c), Section 132.072, Agriculture
  26-62  Code, is amended to read as follows:
  26-63        (c)  If the department proposes to revoke, modify, or suspend
  26-64  a person's license, the person is entitled to a hearing conducted
  26-65  under Section 12.032 <before a hearings officer designated by the
  26-66  department>.  The decision of the department is appealable in the
  26-67  same manner as provided for contested cases under Chapter 2001,
  26-68  Government Code <the Administrative Procedure and Texas Register
  26-69  Act (Article 6252-13a, Vernon's Texas Civil Statutes)>.
  26-70        SECTION 3.28.  Subsection (c), Section 252.028, Agriculture
   27-1  Code, is amended to read as follows:
   27-2        (c)  If the borrower has not made arrangements to meet the
   27-3  obligation by the end of the 180th day following the initial
   27-4  default, the lender shall file a claim with the commissioner
   27-5  identifying the loan and the nature of the default.  A <The
   27-6  commissioner shall then conduct a> hearing shall be conducted on
   27-7  the alleged default as a contested case under Chapter 2001,
   27-8  Government Code <the Administrative Procedure and Texas Register
   27-9  Act, as amended (Article 6252-13a, Vernon's Texas Civil Statutes)>.
  27-10  Appeal of the commissioner's decision to the district court is
  27-11  under the substantial evidence rule.  The commissioner may waive
  27-12  default in the event of extenuating circumstances, including the
  27-13  borrower's physical disability.  If the commissioner finds that the
  27-14  borrower is in default and the commissioner does not waive default,
  27-15  the lender shall assign to the state all of the lender's security
  27-16  and interest in the loan in exchange for payment of 90 percent of
  27-17  all sums due and payable under the first real estate mortgage or
  27-18  deed of trust or, if the borrower made a down payment of 10 percent
  27-19  or more of the purchase price, all of the sums due and payable
  27-20  under the first real estate mortgage or deed of trust.  If the loan
  27-21  is seller-sponsored, the seller may elect to pay the commissioner
  27-22  all sums owed the commissioner by the applicant and retain title to
  27-23  the property in lieu of payment by the commissioner under the terms
  27-24  of the loan guarantee.  If the commissioner determines that the
  27-25  lender has met his or her obligations regarding the loan guarantee,
  27-26  the commissioner shall authorize payment to the lender and shall
  27-27  notify the defaulting party.  Payment to the lender must be made
  27-28  from amounts on deposit in the farm and ranch loan security fund.
  27-29  The state shall then become holder of the mortgage or deed of
  27-30  trust.
  27-31        SECTION 3.29.  Section 2003.021, Government Code, is amended
  27-32  by adding Subsection (d) to read as follows:
  27-33        (d)  The office shall conduct hearings under the Agriculture
  27-34  Code as provided under Section 12.032, Agriculture Code.  In
  27-35  conducting hearings under the Agriculture Code, the office shall
  27-36  consider the applicable substantive rules and policies of the
  27-37  Department of Agriculture.
  27-38                   ARTICLE 4.  WEIGHTS AND MEASURES
  27-39        SECTION 4.01.  Section 13.002, Agriculture Code, is amended
  27-40  to read as follows:
  27-41        Sec. 13.002.  Enforcement of Chapter.  (a)  The department
  27-42  shall enforce the provisions of this chapter and shall supervise
  27-43  all weights and measures sold or offered for sale in this state.
  27-44  The department may purchase apparatus as necessary for the
  27-45  administration of this chapter.
  27-46        (b)  The department shall, to the extent practical and cost
  27-47  effective, allow another state agency by interagency contract to
  27-48  execute the department's responsibilities under Subsection (a).
  27-49  The contract may cover the whole state or only a specified region.
  27-50        SECTION 4.02.  Subsection (a), Section 13.110, Agriculture
  27-51  Code, is amended to read as follows:
  27-52        (a)  In accordance with this subchapter, each sealer may
  27-53  <shall> inspect and test all weights and measures used in the
  27-54  locality to which the sealer is assigned or in the city or county
  27-55  in which the sealer is appointed.
  27-56        SECTION 4.03.  Section 13.111, Agriculture Code, is amended
  27-57  by adding Subsections (c) and (d) to read as follows:
  27-58        (c)  A person licensed under Subchapter H shall offer to
  27-59  repair an incorrect weight or measure before taking the device out
  27-60  of service as provided under Subsection (b).  The weights and
  27-61  measures inspector may collect a fee for a repair made to a weight
  27-62  or measure.
  27-63        (d)  A person licensed under Subchapter F, G, or H:
  27-64              (1)  may not collect a fee for the first inspection of
  27-65  a device after the device is taken out of service under Subsection
  27-66  (b); and
  27-67              (2)  shall provide the owner or user of a device taken
  27-68  out of service under Subsection (b) with a detailed written
  27-69  estimate of the cost of repair of the device.
  27-70        SECTION 4.04.  Chapter 13, Agriculture Code, is amended by
   28-1  adding Subchapter H to read as follows:
   28-2          SUBCHAPTER H.  LICENSED INSPECTORS OF WEIGHING AND
   28-3                           MEASURING DEVICES
   28-4        Sec. 13.401.  LICENSE REQUIREMENT.  (a)  A person who has a
   28-5  license issued under this subchapter has all of the powers and
   28-6  duties of a sealer under this chapter except for:
   28-7              (1)  testing of a package under Section 13.039;
   28-8              (2)  peace officer status under Section 13.108(b); and
   28-9              (3)  entering premises or conducting a stop under
  28-10  Section 13.108(c).
  28-11        (b)  It is a defense to prosecution under Section 13.117 or
  28-12  13.118 that the sealer is acting under the authority of a license
  28-13  issued under this subchapter.
  28-14        (c)  A person who has a license issued under this subchapter
  28-15  may also inspect or test:
  28-16              (1)  liquefied petroleum gas meters under Subchapter F;
  28-17  or
  28-18              (2)  a ranch scale under Subchapter G.
  28-19        (d)  Unless appointed a sealer under Subchapter C, a person
  28-20  may not perform the functions of a sealer without a license issued
  28-21  under this subchapter.
  28-22        (e)  The department shall issue a license to a person who
  28-23  meets the requirements of this subchapter.
  28-24        (f)  A license holder under this subchapter shall conduct
  28-25  inspecting or testing activities in compliance with the rules of
  28-26  the department.
  28-27        (g)  A license holder shall maintain and submit to the
  28-28  department a report and record of all inspecting or testing
  28-29  activities compiled in accordance with the rules of the department.
  28-30        Sec. 13.402.  General Requirements for License Issuance or
  28-31  Renewal.  Before a license is issued or renewed by the department
  28-32  under this subchapter:
  28-33              (1)  the person applying for the license or renewal of
  28-34  the license shall provide the department proof of completion of a
  28-35  department-approved academic, trade, or professional course of
  28-36  instruction required by the department's rules;
  28-37              (2)  the person shall file with the department an
  28-38  insurance policy or other proof of insurance evidencing that the
  28-39  applicant has a completed operations liability insurance policy
  28-40  issued by an insurance company authorized to do business in this
  28-41  state or by a surplus lines insurer that meets the requirements of
  28-42  Article 1.14-2, Insurance Code, and rules adopted by the
  28-43  commissioner of insurance in an amount set by the department and
  28-44  based on the type of licensed activities to be provided; and
  28-45              (3)  the department, to verify compliance with trade
  28-46  practices, rules of the department, and this chapter, may conduct
  28-47  an inspection of the applicant's:
  28-48                    (A)  facilities;
  28-49                    (B)  inspecting and testing equipment and
  28-50  procedures;
  28-51                    (C)  repair and calibration equipment and
  28-52  procedures; and
  28-53                    (D)  transportation equipment.
  28-54        Sec. 13.403.  License and Renewal; Fees.  (a)  An application
  28-55  for a license shall be submitted to the department on a form
  28-56  prescribed by the department, accompanied by an annual license fee
  28-57  in an amount established by department rule.
  28-58        (b)  A license issued under this subchapter is valid for one
  28-59  year and may be renewed by filing with the department a renewal
  28-60  application form prescribed by the department, accompanied by an
  28-61  annual license renewal fee in an amount established by department
  28-62  rule.
  28-63        (c)  A person who fails to submit a license renewal fee on or
  28-64  before the expiration date of the license must pay, in addition to
  28-65  the license renewal fee, the late fee provided by department rule.
  28-66        Sec. 13.404.  Duties of Department.  (a)  The department by
  28-67  rule may adopt a system to periodically monitor and inspect or test
  28-68  scales inspected and tested by the license holder.
  28-69        (b)  The department by rule shall adopt guidelines to allow a
  28-70  representative of the license holder to perform functions of the
   29-1  license holder.
   29-2        (c)  The department by rule may adopt additional requirements
   29-3  for the issuance of a license and for the denial of an application
   29-4  for a license or renewal of a license.  The rules adopted by the
   29-5  department shall be designed to protect the public health, safety,
   29-6  and welfare and the proper operation of weighing and measuring
   29-7  devices.
   29-8        (d)  The department by rule shall adopt a fee schedule for
   29-9  services performed by a license holder.
  29-10        Sec. 13.405.  Denial, Revocation, Modification, or Suspension
  29-11  of License.  (a)  The department may refuse to issue a license for
  29-12  inspecting or testing of weighing and measuring devices if the
  29-13  applicant fails to comply with this subchapter.
  29-14        (b)  The department shall revoke, modify, or suspend a
  29-15  license, assess an administrative penalty, place on probation a
  29-16  person whose license has been suspended, or reprimand a license
  29-17  holder if the license holder fails to comply with this subchapter
  29-18  or a rule adopted by the department under this subchapter.
  29-19        (c)  If a license suspension is probated, the department may
  29-20  require the person to:
  29-21              (1)  report regularly to the department on matters that
  29-22  are the basis of the probation;
  29-23              (2)  limit practice to the areas prescribed by the
  29-24  department; or
  29-25              (3)  continue or renew professional education until the
  29-26  person attains a degree of skill satisfactory to the department in
  29-27  those areas that are the basis of the probation.
  29-28        (d)  If the department proposes to deny a person's
  29-29  application for a license for inspecting or testing of weighing or
  29-30  measuring devices or to revoke, modify, or suspend a person's
  29-31  license, the person is entitled to a hearing conducted under
  29-32  Section 12.032.  The decision of the administrative law judge is
  29-33  appealable in the same manner as provided for contested cases under
  29-34  Chapter 2001, Government Code.
  29-35        Sec. 13.406.  Civil Penalty; Injunction.  (a)  A person who
  29-36  violates this subchapter or a rule adopted under this subchapter is
  29-37  liable to the state for a civil penalty of not less than $250 nor
  29-38  more than $10,000 for each violation.  Each day a violation
  29-39  continues may be considered a separate violation for purposes of a
  29-40  civil penalty assessment.
  29-41        (b)  On request of the department, the attorney general or
  29-42  the county attorney or district attorney of the county in which the
  29-43  violation is alleged to have occurred shall file suit to collect
  29-44  the penalty.
  29-45        (c)  A civil penalty collected under this section shall be
  29-46  deposited in the state treasury to the credit of the general
  29-47  revenue fund.  All civil penalties recovered in suits first
  29-48  instituted by a local government or governments under this section
  29-49  shall be equally divided between the State of Texas and the local
  29-50  government or governments with 50 percent of the recovery to be
  29-51  paid to the general revenue fund and the other 50 percent equally
  29-52  to the local government or governments first instituting the suit.
  29-53        (d)  The department is entitled to appropriate injunctive
  29-54  relief to prevent or abate a violation of this subchapter or a rule
  29-55  adopted under this subchapter.  On request of the department, the
  29-56  attorney general or the county or district attorney of the county
  29-57  in which the alleged violation is threatened or is occurring shall
  29-58  file suit for the injunctive relief.  Venue is in the county in
  29-59  which the alleged violation is threatened or is occurring.
  29-60        Sec. 13.407.  Criminal Penalty.  (a)  An individual commits
  29-61  an offense if the individual is required to be licensed under this
  29-62  subchapter, is not licensed under this subchapter, and performs or
  29-63  offers to perform an inspection or test on a weighing or measuring
  29-64  device for compensation.
  29-65        (b)  An offense under this section is a Class B misdemeanor.
  29-66        SECTION 4.05.  Subchapter C, Chapter 13, Agriculture Code, is
  29-67  amended by adding Section 13.1012 to read as follows:
  29-68        Sec. 13.1012.  SERVICE PERSON REGISTRATION REQUIREMENT.
  29-69  (a)  A person may not place into service or remove any out-of-order
  29-70  tag from any weighing or measuring devices unless the person holds
   30-1  a registration issued under this section or is licensed under
   30-2  Subchapter F, G, or H.
   30-3        (b)  The department shall register a person who meets the
   30-4  requirements of the department adopted under this section, which
   30-5  may include:
   30-6              (1)  proof of completion of a department-approved
   30-7  academic, trade, or professional course of instruction; and
   30-8              (2)  a written examination.
   30-9        (c)  Each registrant under this section shall conduct
  30-10  installation or service activities in compliance with the rules of
  30-11  the department.
  30-12        (d)  A registrant shall maintain and submit to the department
  30-13  a report and record of all installation or service activities
  30-14  compiled in accordance with the rules of the department.
  30-15        (e)  The department may conduct an inspection of an
  30-16  applicant's or registrant's:
  30-17              (1)  facilities;
  30-18              (2)  inspecting and testing equipment and procedures;
  30-19              (3)  repair and calibration equipment and procedures;
  30-20  and
  30-21              (4)  transportation equipment.
  30-22        (f)  An application for a registration or renewal shall be
  30-23  submitted to the department on a form prescribed by the department,
  30-24  accompanied by a registration, renewal, or late fee, in an amount
  30-25  established by department rule.
  30-26        (g)  A registration issued under this section shall be for a
  30-27  period determined by department rule.
  30-28        (h)  The department may refuse to register an applicant for
  30-29  service of weighing and measuring devices if the applicant fails to
  30-30  comply with this section.
  30-31        (i)  The department shall revoke, modify, or suspend a
  30-32  registration, assess an administrative penalty, place on probation
  30-33  a person whose registration has been suspended, or reprimand a
  30-34  registrant if the registrant fails to comply with this section or a
  30-35  rule adopted by the department under this section.
  30-36              ARTICLE 5.  OPERATIONS OF TEXAS AGRICULTURE
  30-37                           FINANCE AUTHORITY
  30-38        SECTION 5.01.  Subdivision (7), Section 44.001, Agriculture
  30-39  Code, is amended to read as follows:
  30-40              (7)  "Rural area" means an area which is predominantly
  30-41  rural in character, being one which the <advisory> board defines
  30-42  and declares to be a rural area.
  30-43        SECTION 5.02.  Section 44.002, Agriculture Code, is amended
  30-44  to read as follows:
  30-45        Sec. 44.002.  Creation of Programs.  (a)  The board
  30-46  <commissioner> shall create an agricultural diversification program
  30-47  to:
  30-48              (1)  support commercial use of agricultural research
  30-49  and innovation;
  30-50              (2)  increase the capabilities of community and
  30-51  regional organizations to train and assist new or expanding
  30-52  agricultural-based businesses;
  30-53              (3)  start small business incubators; and
  30-54              (4)  encourage private commercial loans for enhanced
  30-55  production, processing, and marketing of certain agricultural
  30-56  crops.
  30-57        (b)  The board <commissioner> shall create a microenterprise
  30-58  support program to provide financial assistance to microenterprises
  30-59  in rural areas.
  30-60        SECTION 5.03.  Subsections (a) and (d), Section 44.004,
  30-61  Agriculture Code, are amended to read as follows:
  30-62        (a)  The <commissioner with the consent of a majority of the>
  30-63  board shall administer an agricultural diversification <a> grant
  30-64  program supporting research and innovation leading to
  30-65  organizational or marketing improvement in business based on
  30-66  agriculture or to the commercialization of new crops, new
  30-67  agricultural products, or new production processes.
  30-68        (d)  The board <commissioner> shall review and evaluate each
  30-69  grant application submitted under this section and award the grants
  30-70  <with the consent of a majority of the board>.
   31-1        SECTION 5.04.  Subsections (a) and (d), Section 44.0045,
   31-2  Agriculture Code, are amended to read as follows:
   31-3        (a)  The <commissioner with the consent of a majority of the>
   31-4  board shall administer a loan program supporting established and
   31-5  proposed microenterprises in rural areas by providing loans to
   31-6  expand, modernize, or otherwise improve established
   31-7  microenterprises and to begin operation of proposed
   31-8  microenterprises.
   31-9        (d)  The <commissioner and> board of the microenterprise
  31-10  support program may reserve a portion of the total fund for use in
  31-11  cooperative loan programs established with the participation of
  31-12  other public or private lenders.
  31-13        SECTION 5.05.  Subsections (a) and (d), Section 44.005,
  31-14  Agriculture Code, are amended to read as follows:
  31-15        (a)  The <commissioner with the consent of a majority of the>
  31-16  board shall create an agricultural diversification <a business
  31-17  assistance> grant program to increase the capabilities of community
  31-18  and regional organizations to provide training and assistance to
  31-19  new and expanding businesses based on agriculture.
  31-20        (d)  The board <commissioner> shall evaluate each grant
  31-21  application submitted under this section and award the grants <with
  31-22  the consent of a majority of the board>.
  31-23        SECTION 5.06.  Subsections (a) and (d), Section 44.006,
  31-24  Agriculture Code, are amended to read as follows:
  31-25        (a)  The <commissioner with the consent of a majority of the>
  31-26  board shall create an agricultural diversification <a> grant
  31-27  program to provide seed money for self-financing small business
  31-28  incubators.  These incubators shall provide business services to
  31-29  small enterprises that process or market agricultural crops in this
  31-30  state or that produce alternative agricultural crops in this state.
  31-31        (d)  The board <commissioner> shall evaluate each grant
  31-32  application under this section and award the grants <with the
  31-33  consent of a majority of the board>.
  31-34        SECTION 5.07.  Section 44.007, Agriculture Code, is amended
  31-35  to read as follows:
  31-36        Sec. 44.007.  Linked Deposit Program.  (a)  The board
  31-37  <commissioner> shall establish a linked deposit program to
  31-38  encourage commercial lending for the enhanced production,
  31-39  processing, and marketing of certain agricultural crops and for the
  31-40  purchase of water conservation equipment for agricultural
  31-41  production purposes.
  31-42        (b)  The board <commissioner> shall promulgate rules for the
  31-43  loan portion of the linked deposit program.  The rules must
  31-44  include:
  31-45              (1)  a list of the categories of crops customarily
  31-46  grown in Texas;
  31-47              (2)  a list of crops that are alternative agricultural
  31-48  crops;
  31-49              (3)  a list of crops the production of which has
  31-50  declined markedly because of natural disasters; and
  31-51              (4)  identification of the types of equipment
  31-52  considered as water conservation equipment for agricultural
  31-53  production purposes.
  31-54        (c)  In order to participate in the linked deposit program,
  31-55  an eligible lending institution may solicit loan applications from
  31-56  eligible borrowers.
  31-57        (d)  After reviewing an application and determining that the
  31-58  applicant is eligible and creditworthy, the eligible lending
  31-59  institution shall send the application for a linked deposit loan to
  31-60  the board <commissioner>.
  31-61        (e)  The eligible lending institution shall certify the
  31-62  interest rate applicable to the specific eligible borrower and
  31-63  attach it to the application sent to the board <commissioner>.
  31-64        (f)  After reviewing each linked deposit loan application,
  31-65  the board <commissioner> shall recommend to the state treasurer the
  31-66  acceptance or rejection of the application.
  31-67        (g)  After acceptance of the application, the state treasurer
  31-68  shall place a linked deposit with the applicable eligible lending
  31-69  institution for the period the treasurer considers appropriate.
  31-70  The state treasurer may not place a deposit for a period extending
   32-1  beyond the state fiscal biennium in which it is placed.  Subject to
   32-2  the limitation described by Section 44.010 of this chapter, the
   32-3  treasurer may place time deposits at an interest rate described by
   32-4  Section 44.001(5)(A) of this chapter, notwithstanding any order of
   32-5  the State Depository Board to the contrary.
   32-6        (h)  Before the placing of a linked deposit, the eligible
   32-7  lending institution and the state, represented by the state
   32-8  treasurer and the board <commissioner>, shall enter into a written
   32-9  deposit agreement containing the conditions on which the linked
  32-10  deposit is made.
  32-11        (i)  If a lending institution holding linked deposits ceases
  32-12  to be a state depository, the state treasurer may withdraw the
  32-13  linked deposits.
  32-14        (j)  The board may adopt rules that create a procedure for
  32-15  determining priorities for loans granted under this chapter.  Each
  32-16  rule adopted must state the policy objective of the rule.  The
  32-17  policy objectives of the rules may include preferences to:
  32-18              (1)  achieve adequate geographic distribution of loans;
  32-19              (2)  assist certain industries;
  32-20              (3)  encourage certain practices including water
  32-21  conservation; and
  32-22              (4)  encourage value-added processing of agricultural
  32-23  products.
  32-24        SECTION 5.08.  Section 44.008, Agriculture Code, is amended
  32-25  to read as follows:
  32-26        Sec. 44.008.  Compliance.  (a)  On accepting a linked
  32-27  deposit, an eligible lending institution must loan money to
  32-28  eligible borrowers in accordance with the deposit agreement and
  32-29  this chapter.  The eligible lending institution shall forward a
  32-30  compliance report to the board <commissioner>.
  32-31        (b)  The board <commissioner> shall monitor compliance with
  32-32  this chapter and inform the state treasurer of noncompliance on the
  32-33  part of an eligible lending institution.
  32-34        SECTION 5.09.  Section 44.011, Agriculture Code, is amended
  32-35  to read as follows:
  32-36        Sec. 44.011.  Criteria for all Grants.  In evaluating
  32-37  applications for grants under this chapter, the <commissioner and
  32-38  the> board shall consider:
  32-39              (1)  the scientific and technical merit of the
  32-40  application;
  32-41              (2)  the anticipated benefits arising from a grant to
  32-42  the applicant, including both potential job creation and commercial
  32-43  benefits to the agricultural industry;
  32-44              (3)  the market value of the assets of the applicant;
  32-45              (4)  the qualifications of the applicant;
  32-46              (5)  the reasonableness of the applicant's proposed
  32-47  budget;
  32-48              (6)  the extent and level of other funding sources for
  32-49  the applicant;
  32-50              (7)  the funding commitments needed for continued
  32-51  development; and
  32-52              (8)  the present involvement and support of local
  32-53  organizations, including educational organizations.
  32-54        SECTION 5.10.  Section 44.012, Agriculture Code, is amended
  32-55  to read as follows:
  32-56        Sec. 44.012.  Money for Grants and Loans.  The board
  32-57  <commissioner> may accept gifts and grants of money from the
  32-58  federal government, local governments, or private corporations or
  32-59  other persons for use in making grants and loans under the
  32-60  agricultural diversification program and the rural microenterprise
  32-61  support program.  The legislature may appropriate money for grants
  32-62  and loans under the programs.
  32-63        SECTION 5.11.  Subsection (a), Section 58.012, Agriculture
  32-64  Code, is amended to read as follows:
  32-65        (a)  The authority is governed by a board of directors
  32-66  composed of the commissioner of agriculture, the director of the
  32-67  Institute for International Agribusiness Studies at Prairie View
  32-68  A&M University, and seven members appointed by the governor with
  32-69  the advice and consent of the senate.  Members of the board <An
  32-70  appointed member> must be appointed in the numbers specified and
   33-1  from <one of> the following categories <with at least one member
   33-2  but not more than two members from each category>:
   33-3              (1)  one person who is an elected or appointed official
   33-4  <officials> of a municipality or county;
   33-5              (2)  four persons <representatives of lending
   33-6  institutions chartered by the state or federal government> who are
   33-7  knowledgeable about agricultural lending practices;
   33-8              (3)  one person who is a representative
   33-9  <representatives> of agricultural businesses; and <or>
  33-10              (4)  one person who is a representative
  33-11  <representatives> of agriculture related entities, including rural
  33-12  chambers of commerce, foundations, trade associations, institutions
  33-13  of higher education, or other entities involved in agricultural
  33-14  matters.
  33-15        SECTION 5.12.  Section 58.015, Agriculture Code, is amended
  33-16  to read as follows:
  33-17        Sec. 58.015.  ADMINISTRATION.  (a)  The commissioner with the
  33-18  assistance of the board shall administer the Texas Agricultural
  33-19  Finance Authority.  The board shall reimburse the Department of
  33-20  Agriculture for expenses incurred as required by the business of
  33-21  the authority with the approval <of a majority> of the board.
  33-22        (b)  The commissioner may, with the approval <of a majority>
  33-23  of the board, appoint, employ, contract with, and provide for the
  33-24  compensation of employees, consultants, and agents including
  33-25  engineers, attorneys, management consultants, financial advisors,
  33-26  indexing agents, placement agents, and other experts as the
  33-27  business of the authority may require.
  33-28        (c)  The commissioner may, with the approval <of a majority>
  33-29  of the board, employ an administrator of the authority.  The
  33-30  administrator may attend all meetings and participate, but not
  33-31  vote, in all proceedings of the authority.
  33-32        SECTION 5.13.  Subsection (b), Section 58.016, Agriculture
  33-33  Code, is amended to read as follows:
  33-34        (b)  On or before August 1 of each year, the administrator
  33-35  shall file with the board the <a> proposed annual budgets <budget>
  33-36  for the young farmer loan guarantee program under Chapter 253, the
  33-37  farm and ranch finance program under Chapter 59, and the programs
  33-38  administered by the board under this chapter for the succeeding
  33-39  fiscal year.  If there is no administrator, the commissioner shall
  33-40  assume the duties of the administrator in connection with
  33-41  preparation of the budget.  The budget must set forth the general
  33-42  categories of expected expenditures out of revenues and income of
  33-43  the funds administered by the authority and the amount on account
  33-44  of each.  On or before September 1 of each year, the board shall
  33-45  consider the proposed annual budget and may approve it or amend it.
  33-46  Copies of the annual budget certified by the chairman of the board
  33-47  shall be promptly filed with the governor and the legislature.  The
  33-48  annual budget is not effective until it is filed.  If for any
  33-49  reason the authority does not adopt an annual budget before
  33-50  September 2, no expenditures may be made from the funds until the
  33-51  board approves the annual budget <for the preceding year shall
  33-52  remain in effect until a new budget is adopted>.  The authority may
  33-53  adopt an amended annual budget for the current fiscal year, but the
  33-54  amended annual budget may not supersede a prior budget until it is
  33-55  filed with the governor and the legislature.
  33-56        SECTION 5.14.  Subchapter B, Chapter 58, Agriculture Code, is
  33-57  amended by adding Section 58.017 to read as follows:
  33-58        Sec. 58.017.  COST-BENEFIT REPORT.  (a)  The board shall
  33-59  perform a biennial cost-benefit study of the authority's active and
  33-60  inactive programs and prepare a report regarding that study.  The
  33-61  study must include an examination of the number of jobs created or
  33-62  retained in this state as a result of each program and the costs
  33-63  and benefits associated with those jobs.
  33-64        (b)  The chairman of the board shall file the report prepared
  33-65  under Subsection (a) with the state auditor before December 1 of
  33-66  each even-numbered year.
  33-67        (c)  The state auditor shall review the report filed under
  33-68  Subsection (b) and send the report and the auditor's comments
  33-69  regarding the methodology used by the authority in performing the
  33-70  cost-benefit study to the governor and the presiding officer of
   34-1  each house of the legislature not later than February 1 of each
   34-2  odd-numbered year.  The state auditor shall provide assistance to
   34-3  the department in preparing the report required by this section.
   34-4        SECTION 5.15.  Subchapter B, Chapter 58, Agriculture Code, is
   34-5  amended by adding Section 58.0171 to read as follows:
   34-6        Sec. 58.0171.  REVIEW OF DEPARTMENT PLANS AND BUDGET REQUEST.
   34-7  The department shall provide the board with sufficient opportunity
   34-8  to review and comment on the finance program-related portions of
   34-9  the department strategic plan and the department biennial
  34-10  appropriation request, and any revision of a finance
  34-11  program-related portion of the plan or request, before submission
  34-12  to the legislature.
  34-13        SECTION 5.16.  Subchapter B, Chapter 58, Agriculture Code, is
  34-14  amended by adding Section 58.0177 to read as follows:
  34-15        Sec. 58.0177.  APPOINTED MEMBER PREPARATION PROGRAM.  The
  34-16  board shall provide each appointed member of the board financial
  34-17  training adequate to prepare the member for the responsibilities of
  34-18  board membership before the member may begin service.
  34-19        SECTION 5.17.  Subsection (c), Section 58.021, Agriculture
  34-20  Code, is amended to read as follows:
  34-21        (c)  Except as provided by this subsection, the maximum
  34-22  aggregate amount of loans made to or guaranteed, insured,
  34-23  coinsured, or reinsured under this subchapter for a single eligible
  34-24  agricultural business by the authority from funds provided by the
  34-25  authority is $1 <$2> million.  The authority may make, guarantee,
  34-26  insure, coinsure, or reinsure a loan for a single eligible
  34-27  agricultural business that results in an aggregate amount exceeding
  34-28  $1 <$2> million, but not exceeding $2 <$5> million, if the action
  34-29  is approved by a two-thirds vote of the membership of the board.
  34-30        SECTION 5.18.  Subchapter C, Chapter 58, Agriculture Code, is
  34-31  amended by adding Section 58.0211 to read as follows:
  34-32        Sec. 58.0211.  LOAN LIMITS.  (a)  The authority may make,
  34-33  guarantee, insure, coinsure, or reinsure a loan up to the limits in
  34-34  this section and Section 58.021 for a single eligible business
  34-35  which already has an active loan if the action is approved by a
  34-36  two-thirds vote of the members present.
  34-37        (b)  Except for programs administered by the authority under
  34-38  Chapters 44 and 59, the authority shall give preference to loans,
  34-39  loan guarantees, loan insurance, coinsurance, reinsurance, or any
  34-40  other financing mechanism to value-added agricultural businesses.
  34-41  The authority may decline to provide financial assistance to
  34-42  businesses whose primary purpose is to establish or expand
  34-43  conventional agricultural production.
  34-44        (c)  The authority may not guarantee more than 90 percent of
  34-45  a loan to an eligible agricultural business made by a private
  34-46  lender.
  34-47        ARTICLE 6.  AGRICULTURE RESOURCES PROTECTION AUTHORITY
  34-48        SECTION 6.01.  Section 76.009, Agriculture Code, is amended
  34-49  to read as follows:
  34-50        Sec. 76.009.  Agriculture Resources Protection Authority.
  34-51  (a)  The Agriculture Resources Protection Authority is an agency of
  34-52  state government.  The authority is composed of the following
  34-53  <nine> members:
  34-54              (1)  the director of the Texas Agricultural Experiment
  34-55  Station;
  34-56              (2)  the dean of the College of Agricultural Sciences
  34-57  of Texas Tech University;
  34-58              (3)  the dean of The University of Texas School of
  34-59  Public Health at Houston;
  34-60              (4)  the director of the environmental epidemiology
  34-61  program of the Texas Department of Health;
  34-62              (5)  the chief of the groundwater conservation section
  34-63  of the Texas Natural Resource Conservation <Water> Commission;
  34-64              (6)  the director of the Institute for International
  34-65  Agribusiness Studies of Prairie View A&M University;
  34-66              (7)  one person appointed by the governor to represent
  34-67  the interests of consumers;
  34-68              (8)  a producer of agricultural products appointed by
  34-69  the governor; <and>
  34-70              (9)  the executive director of the Texas Structural
   35-1  Pest Control Board;
   35-2              (10)  the executive director of the State Soil and
   35-3  Water Conservation Board;
   35-4              (11)  a person appointed by the governor and licensed
   35-5  by the department as a commercial, noncommercial, or private
   35-6  applicator;
   35-7              (12)  a person appointed by the governor and licensed
   35-8  by the department as a pesticide dealer or involved in the
   35-9  development or manufacture of agricultural chemicals;
  35-10              (13)  a person appointed by the governor and employed
  35-11  as a farm worker or serving as a representative of farm workers;
  35-12              (14)  a person appointed by the governor and associated
  35-13  with an organization primarily engaged in environmental
  35-14  conservation or protection efforts; and
  35-15              (15)  the commissioner of agriculture.
  35-16        (b)  A person appointed by the governor<, with the advice and
  35-17  consent of the senate,> under Subdivision (7), (8), (11), (12),
  35-18  (13), or (14) <or (8)> of Subsection (a) of this section serves a
  35-19  two-year term ending on February 1 of each odd-numbered year.  A
  35-20  vacancy in one of those positions shall be filled by appointment by
  35-21  the governor for the unexpired term.  All appointments made by the
  35-22  governor under this section must be with the advice and consent of
  35-23  the senate.
  35-24        (c)  The governor shall designate <commissioner of
  35-25  agriculture is> the presiding officer of the authority.
  35-26        (d)  The authority shall meet quarterly and at the call of
  35-27  the presiding officer or a majority of the members.  <To take an
  35-28  action, the authority must approve the action by a concurring vote
  35-29  of a majority of the total membership of the authority.>
  35-30        (e)  A member may not receive compensation for service as a
  35-31  member of the authority.  A member is entitled to reimbursement for
  35-32  actual and necessary expenses incurred in the performance of the
  35-33  functions of the authority, subject to any limitations on
  35-34  reimbursement provided by the General Appropriations Act.
  35-35        (f)  The delegation of functions under this section is
  35-36  designed to avoid overlapping responsibilities, to provide a means
  35-37  for all involved agencies to participate in the regulation of
  35-38  pesticides, and to clarify various areas of responsibility.
  35-39        (g)  The authority is the coordinating body for the policies
  35-40  and programs of management, regulation, and control of pesticides
  35-41  conducted by the department, the State Soil and Water Conservation
  35-42  Board, the Texas Agricultural Extension Service, the Texas
  35-43  Department of Health, the Texas Natural Resource Conservation
  35-44  <Water> Commission, and the Texas Structural Pest Control Board.
  35-45  Notwithstanding any other provision of this code or of any other
  35-46  law, the authority may:
  35-47              (1)  adopt any rule relating to any duty of the
  35-48  authority <pesticides, including a rule that amends or repeals an
  35-49  existing rule, except that the authority may not:>
  35-50                    <(A)  adopt, amend, or repeal a rule under
  35-51  Chapter 125 of this code;>
  35-52                    <(B)  repeal a rule that was adopted by an agency
  35-53  for which the authority is the coordinating body and that was in
  35-54  effect on May 1, 1989; or>
  35-55                    <(C)  amend a rule in effect on May 1, 1989, that
  35-56  would make the rule less protective of the public health, safety,
  35-57  or welfare>;
  35-58              (2)  review and make comments regarding <approve or
  35-59  disapprove> any rule relating to pesticides that is proposed by an
  35-60  agency for which the authority is the coordinating body<, except a
  35-61  rule under Chapter 125 of this code>;
  35-62              (3)  cooperate with and advise the department, the
  35-63  State Soil and Water Conservation Board, the Texas Agricultural
  35-64  Extension Service, the Texas Department of Health, the Texas
  35-65  Natural Resource Conservation <Water> Commission, the Texas
  35-66  Structural Pest Control Board, and any other state agency that may
  35-67  be concerned with the regulation of pesticides and notify those
  35-68  agencies of any rule the authority intends to adopt;
  35-69              (4)  collect, analyze, and disseminate information
  35-70  necessary for the effective operation of all existing or
   36-1  contemplated programs regulating pesticides;
   36-2              (5)  provide professional advice to private agencies
   36-3  and citizens of this state on matters relating to pesticides in
   36-4  cooperation with other state agencies, with professional groups,
   36-5  and with either state or private educational institutions;
   36-6              (6)  accept gifts, devises, and bequests and, with the
   36-7  approval of the governor, comply with the terms and conditions of
   36-8  any grant to accomplish any of the purposes of the authority;
   36-9              (7)  inform and advise the governor on matters
  36-10  involving pesticides and prepare and recommend to the governor and
  36-11  to the legislature any legislation the authority considers proper
  36-12  for the management and control of pesticides; and
  36-13              (8)  make annual reports to the governor and the
  36-14  appropriate legislative oversight committees<;>
  36-15              <(9)  exempt any federal or state agency from any
  36-16  regulatory provision if the authority determines that emergency
  36-17  conditions exist that require the exemption; and>
  36-18              <(10)  notwithstanding any conflicting or inconsistent
  36-19  provision in this code, hear and determine all appeals from orders
  36-20  entered, by an agency for which the authority is the coordinating
  36-21  body, under this chapter or Chapter 75 or 125 of this code>.
  36-22        (h)  A member of the authority by a written statement may
  36-23  designate a person to execute any responsibility of the member
  36-24  including voting <An agency for which the authority is the
  36-25  coordinating body may not adopt a rule disapproved by the authority
  36-26  under Subsection (g)(2) of this section>.
  36-27        (i)  The authority shall develop and implement policies that
  36-28  provide the public with a reasonable opportunity to appear before
  36-29  the authority semiannually to comment on the status of the state's
  36-30  pesticide regulation efforts <To ensure due process, the
  36-31  commissioner, because of the commissioner's statutory power over
  36-32  departmental orders, may not participate in the discussions or the
  36-33  determinations to be reached on appeals to the authority under
  36-34  Subsection (g)(10) of this section>.
  36-35        (j)  The commissioner shall:
  36-36              (1)  as necessary, employ personnel as the duties of
  36-37  the authority may require and to the extent of legislative
  36-38  appropriations to the authority;
  36-39              (2)  keep an accurate and complete record of all
  36-40  authority meetings and hearings of the authority and maintain legal
  36-41  custody of all books, papers, documents, and other records of the
  36-42  authority;
  36-43              (3)  administer this chapter and Chapters 75 and 125 of
  36-44  this code <and the rules adopted by the authority>; and
  36-45              (4)  assign, reassign, or delegate the administrative
  36-46  and enforcement functions assigned to the commissioner by this
  36-47  subsection or by rules or policies established under this
  36-48  subsection to one or more of the divisions or other units within
  36-49  the department or to one or more employees of the department.
  36-50        (k)  The authority shall adopt rules requiring quarterly
  36-51  submission to the authority by the department, State Soil and Water
  36-52  Conservation Board, Texas Agricultural Extension Service, Texas
  36-53  Department of Health, Texas Natural Resource Conservation
  36-54  Commission, and the Texas Structural Pest Control Board of a report
  36-55  regarding each agency's pesticide regulatory enforcement activity.
  36-56        (l)  The authority shall review and make comments regarding
  36-57  the information received by the authority under Subsection (k).
  36-58  The authority shall make its comments available to the public.
  36-59        (m)  The department, State Soil and Water Conservation Board,
  36-60  Texas Agricultural Extension Service, Texas Department of Health,
  36-61  Texas Natural Resource Conservation Commission, and the Texas
  36-62  Structural Pest Control Board shall provide the authority with
  36-63  sufficient opportunity to review and comment on the strategic plan
  36-64  and biennial appropriation request of each agency, and any revision
  36-65  of a plan or request, before submission of a plan or request to the
  36-66  legislature.
  36-67        SECTION 6.02.  Section 76.041, Agriculture Code, is amended
  36-68  by amending Subsection (a) and adding Subsection (d) to read as
  36-69  follows:
  36-70        (a)  Except as provided by Subsection (b), <or> (c), or (d)
   37-1  of this section, before a pesticide is distributed in this state or
   37-2  is delivered for transportation or is transported in intrastate
   37-3  commerce or between points within this state through a point
   37-4  outside the state, it must be registered with the department.  The
   37-5  manufacturer or other person whose name appears on the label of the
   37-6  pesticide shall register the pesticide.
   37-7        (d)  Unless otherwise required by department rule,
   37-8  registration is not required for a pesticide that is exempt from
   37-9  registration with the United States Environmental Protection Agency
  37-10  under federal law.
  37-11        SECTION 6.03.  Subsections (a) and (c), Section 76.043,
  37-12  Agriculture Code, are amended to read as follows:
  37-13        (a)  Registration of a pesticide expires on the second
  37-14  anniversary of the date of its approval or renewal except that the
  37-15  department shall by rule adopt a system under which registrations
  37-16  expire on various dates during the year <annually on December 31>.
  37-17        (c)  A registration in effect on its expiration date
  37-18  <December 31> for which a renewal application has been filed and
  37-19  renewal fee has been paid continues in effect until the department
  37-20  notifies the applicant that the registration has been renewed or
  37-21  denied renewal.
  37-22                      ARTICLE 7.  EGG REGULATION
  37-23        SECTION 7.01.  Section 132.003, Agriculture Code, is amended
  37-24  to read as follows:
  37-25        Sec. 132.003.  Powers and Duties of Department.  (a)  The
  37-26  department shall administer this chapter and adopt and enforce
  37-27  necessary rules.  <Rules adopted and enforced by the department
  37-28  must be approved by the attorney general.  The attorney general
  37-29  shall retain written approval of the rules for public inspection.>
  37-30        (b)  <The department shall annually publish information on
  37-31  the movement and sale of eggs and a report of the results of
  37-32  official inspections of eggs sold, offered for sale, or distributed
  37-33  within this state.  Published information on the movement and sale
  37-34  of eggs may not disclose the scope of operations of any person.>
  37-35        <(c)>  The department may:
  37-36              (1)  prescribe record forms and require the reporting
  37-37  of information as necessary in the administration of this chapter;
  37-38  and
  37-39              (2)  make reciprocal agreements with other states for
  37-40  the inspection of locations outside of the state at which eggs are
  37-41  classed, graded, and weighed.
  37-42        SECTION 7.02.  Section 132.004, Agriculture Code, is amended
  37-43  to read as follows:
  37-44        Sec. 132.004.  ADOPTION OF STANDARDS.  Standards for the
  37-45  inspection and regulation of shell eggs, including <egg> quality,
  37-46  grade, and size of shell eggs, shall be at least equal to those
  37-47  adopted by the United States Department of Agriculture and the
  37-48  federal Food and Drug Administration.
  37-49        SECTION 7.03.  Subchapter A, Chapter 132, Agriculture Code,
  37-50  is amended by adding Section 132.008 to read as follows:
  37-51        Sec. 132.008.  MEMORANDA OF UNDERSTANDING WITH OTHER STATE
  37-52  AGENCY.  (a)  The department shall initiate negotiations for and
  37-53  enter into a memorandum of understanding with the Texas Department
  37-54  of Health to coordinate regulatory programs and eliminate
  37-55  conflicting regulatory requirements and inspection standards.
  37-56        (b)  The department shall enter into an agreement as required
  37-57  by Subsection (a) with the Texas Department of Health regarding the
  37-58  regulation of eggs.
  37-59        (c)  The department and the Texas Department of Health may
  37-60  enter into memoranda of understanding in areas other than those
  37-61  under Subsections (a) and (b).
  37-62        (d)  A memorandum of understanding between the department and
  37-63  the Texas Department of Health must be adopted by the commissioner
  37-64  and the governing body of the Texas Department of Health.
  37-65        (e)  After a memorandum of understanding is adopted, the
  37-66  department shall publish the memorandum of understanding in the
  37-67  Texas Register.
  37-68        SECTION 7.04.  Subsection (b), Section 132.021, Agriculture
  37-69  Code, is amended to read as follows:
  37-70        (b)  This section does not apply to:
   38-1              (1)  a hatchery buying eggs exclusively for hatching
   38-2  purposes;
   38-3              (2)  a hotel, restaurant, or other public eating place
   38-4  where all eggs purchased are served by the establishment;
   38-5              (3)  a food manufacturer purchasing eggs for use only
   38-6  in the manufacture of food products, except for a person who
   38-7  operates a plant for the purpose of breaking eggs for freezing,
   38-8  drying, or commercial food manufacturing; <or>
   38-9              (4)  an agent employed and paid a salary by a person
  38-10  licensed under this chapter; or
  38-11              (5)  a retailer selling eggs to the ultimate consumer
  38-12  of the eggs.
  38-13                   ARTICLE 8.  LICENSE CONSOLIDATION
  38-14        SECTION 8.01.  Chapter 12, Agriculture Code, is amended by
  38-15  adding Section 12.033 to read as follows:
  38-16        Sec. 12.033.  MULTIPLE LICENSES.  (a)  In this section:
  38-17              (1)  "Component license" means a license issued by the
  38-18  department that is consolidated under this section.
  38-19              (2)  "Grocer" means a person whose business consists
  38-20  primarily of the retail sale of food for human consumption.
  38-21        (b)  A grocer who holds more than one type of license issued
  38-22  by the department may obtain from the department a single
  38-23  consolidated license.  A consolidated license authorizes each of
  38-24  the activities of the component licenses.
  38-25        (c)  The department by rule shall implement a program for the
  38-26  issuance of a consolidated license under this section.  The rules
  38-27  shall include provisions for:
  38-28              (1)  a fee schedule for the consolidated license that
  38-29  considers:
  38-30                    (A)  the cost of operating each component license
  38-31  program; and
  38-32                    (B)  the economic efficiency gained by the
  38-33  department through the operation of a consolidated license program;
  38-34              (2)  the suspension or revocation of a consolidated
  38-35  license for a violation of a rule or statute authorizing one of the
  38-36  component licenses;
  38-37              (3)  the combination of all inspections required for
  38-38  the component licenses into a single inspection; and
  38-39              (4)  any other provision the department determines is
  38-40  necessary to implement this section.
  38-41                ARTICLE 9.  CONTINUATION OF DEPARTMENT
  38-42        SECTION 9.01.  Section 11.003, Agriculture Code, is amended
  38-43  to read as follows:
  38-44        Sec. 11.003.  Sunset Provision.  The Department of
  38-45  Agriculture is subject to Chapter 325, Government Code (Texas
  38-46  Sunset Act).  Unless continued in existence as provided by that
  38-47  chapter, the department is abolished September 1, 2007 <1995>.
  38-48             ARTICLE 10.  TRANSITION PROVISIONS; REPEALER;
  38-49                       EFFECTIVE DATE; EMERGENCY
  38-50        SECTION 10.01.  TRANSITION:  FEES.  The change in law made by
  38-51  this Act relating to a fee charged under the Agriculture Code
  38-52  applies only to a fee that first becomes due on or after September
  38-53  1, 1996.  A fee that first becomes due before that date is governed
  38-54  by the law in effect  immediately before September 1, 1995, and the
  38-55  former law is continued in effect for that purpose.
  38-56        SECTION 10.02.  TRANSITION:  HEARINGS.  (a)  The change in
  38-57  law made by this Act relating to a hearing conducted under the
  38-58  Agriculture Code by the State Office of Administrative Hearings
  38-59  applies only to a hearing that begins on or after January 1, 1996.
  38-60  A hearing that begins before that date is governed by the law in
  38-61  effect immediately before September 1, 1995, and the former law is
  38-62  continued in effect for that purpose.
  38-63        (b)  The commissioner of agriculture and the chief
  38-64  administrative law judge of the State Office of Administrative
  38-65  Hearings may agree to transfer contested cases pending before the
  38-66  Department of Agriculture to the State Office of Administrative
  38-67  Hearings before January 1, 1996.
  38-68        SECTION 10.03.  TRANSITION:  LICENSING.  Subchapter H,
  38-69  Chapter 13, Agriculture Code, as added by this Act, relating to
  38-70  inspecting or testing of a weighing or measuring device, applies to
   39-1  a person only after the Department of Agriculture reasonably
   39-2  demonstrates to the Legislative Budget Board that the department's
   39-3  licensing programs for inspection and testing of liquefied
   39-4  petroleum gas meters and inspection and testing of ranch scales
   39-5  under Subchapters F and G, Chapter 13, Agriculture Code,
   39-6  respectively, will attain the performance goals established by the
   39-7  Legislative Budget Board.
   39-8        SECTION 10.04.  TRANSITION:  REVIEW OF ENFORCEMENT OF
   39-9  PESTICIDE REGULATION.  The Agriculture Resources Protection
  39-10  Authority shall review penalties used in enforcement of pesticide
  39-11  regulation by the Department of Agriculture, the State Soil and
  39-12  Water Conservation Board, the Texas Agricultural Extension Service,
  39-13  the Texas Department of Health, the Texas Natural Resource
  39-14  Conservation Commission, and the Texas Structural Pest Control
  39-15  Board.  Not later than December 1, 1996, the Agriculture Resources
  39-16  Protection Authority shall file with the governor, the lieutenant
  39-17  governor, and the speaker of the house of representatives a report
  39-18  regarding the Agriculture Resources Protection Authority's plan for
  39-19  making the use of penalties in pesticide enforcement matters
  39-20  consistent among the agencies studied by the Agriculture Resources
  39-21  Protection Authority.
  39-22        SECTION 10.05.  TRANSITION:  PESTICIDE REGISTRATION.  A
  39-23  registration of a pesticide that is in effect on the effective date
  39-24  of this Act remains in effect until the earlier of the date on
  39-25  which the registration expires or is revoked by the department.
  39-26        SECTION 10.06.  TRANSITION:  COLLECTION OF ADMINISTRATIVE
  39-27  PENALTY.  The changes in law made by this Act apply only to an
  39-28  action to collect an administrative penalty that is commenced on or
  39-29  after the effective date of this Act.  An action to collect an
  39-30  administrative penalty that is commenced before the effective date
  39-31  of this Act is governed by the law in effect on the date the action
  39-32  was commenced, and the former law is continued in effect for this
  39-33  purpose.
  39-34        SECTION 10.07.  TRANSITION:  COMPOSITION OF BOARDS.  (a)  The
  39-35  changes in law made by this Act to the requirements for appointed
  39-36  members on the board of directors of the Agriculture Resources
  39-37  Protection Authority and the board of directors of the Texas
  39-38  Agricultural Finance Authority apply only to membership positions
  39-39  on those boards filled on or after the effective date of this Act
  39-40  and do not affect the entitlement of a member serving on those
  39-41  boards on the effective date of this Act to continue to hold office
  39-42  for the remainder of the term to which the person was appointed.
  39-43        (b)  As the terms of members of the boards expire or as
  39-44  vacancies on the board occur, the governor shall make appointments
  39-45  to achieve, as soon as possible, the membership plans prescribed
  39-46  for the boards by the Agriculture Code, as amended by this Act.  If
  39-47  new positions on a board are created under this Act, the governor
  39-48  shall make appointments to the new positions as soon as possible
  39-49  after the effective date of this Act.
  39-50        SECTION 10.08.  CONTINGENCY.  The changes made to Subsection
  39-51  (c), Section 58.021, Agriculture Code, by Section 5.17 of this Act
  39-52  are contingent on the failure of the constitutional amendments
  39-53  proposed in S.J.R. No. 51 or H.J.R. No. 92, Acts of the 74th
  39-54  Legislature, Regular Session, 1995, or similar legislation.  If
  39-55  either of those constitutional amendments passes and is approved by
  39-56  the voters, the changes made to Subsection (c), Section 58.021,
  39-57  Agriculture Code, by Section 5.17 of this Act have no effect.
  39-58        SECTION 10.09.  REPEALER.  The following statutes are
  39-59  repealed:
  39-60              (1)  Section 12.019, Agriculture Code;
  39-61              (2)  Section 12.027, Agriculture Code;
  39-62              (3)  Section 13.003, Agriculture Code;
  39-63              (4)  Section 13.029, Agriculture Code;
  39-64              (5)  Section 13.115(b), Agriculture Code;
  39-65              (6)  Subchapter D, Chapter 13, Agriculture Code;
  39-66              (7)  Subchapter B, Chapter 14, Agriculture Code;
  39-67              (8)  Subchapter B, Chapter 15, Agriculture Code;
  39-68              (9)  Chapter 16, Agriculture Code;
  39-69              (10)  Chapter 57, Agriculture Code;
  39-70              (11)  Section 58.021(d), Agriculture Code;
   40-1              (12)  Section 94.004, Agriculture Code;
   40-2              (13)  Section 101.007(e), Agriculture Code;
   40-3              (14)  Section 102.007(e), Agriculture Code;
   40-4              (15)  Chapter 112, Agriculture Code;
   40-5              (16)  Section 132.022(e), Agriculture Code;
   40-6              (17)  Section 132.026(c), Agriculture Code;
   40-7              (18)  Section 132.027(c), Agriculture Code; and
   40-8              (19)  Chapter 224, Acts of the 55th Legislature,
   40-9  Regular Session, 1957 (Article 6701i, Vernon's Texas Civil
  40-10  Statutes).
  40-11        SECTION 10.10.  EFFECTIVE DATE.  This Act takes effect
  40-12  September 1, 1995.
  40-13        SECTION 10.11.  EMERGENCY.  The importance of this
  40-14  legislation and the crowded condition of the calendars in both
  40-15  houses create an emergency and an imperative public necessity that
  40-16  the constitutional rule requiring bills to be read on three several
  40-17  days in each house be suspended, and this rule is hereby suspended.
  40-18                               * * * * *