S.B. No. 810
                                        AN ACT
    1-1  relating to the certification of Texas agricultural products and
    1-2  production processes by the Department of Agriculture; authorizing
    1-3  the imposition of fees; and providing penalties.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Chapter 18, Agriculture Code, is amended to read
    1-6  as follows:
    1-7          CHAPTER 18.  CERTIFICATION AND AGRICULTURAL PRODUCT
    1-8                <ORGANIC> STANDARDS <AND CERTIFICATION>
    1-9             SUBCHAPTER A.  ORGANIC STANDARDS AND CERTIFICATION
   1-10        Sec. 18.001.  DEFINITIONS. In this subchapter <chapter>:
   1-11              (1)  "Distributor" means a person engaged in the
   1-12  business of selling food or fiber for resale, including a
   1-13  wholesaler, broker, packer, repacker, shipper, or shipping agent.
   1-14              (2)  "Logo" means the department's copyrighted "Texas
   1-15  Department of Agriculture Certified Organic" or "Texas Department
   1-16  of Agriculture Organic Certification Pending--Transitional"
   1-17  logotype.
   1-18              (3)  "Organic certifying agent" means an <a private>
   1-19  organic certification organization registered <accredited> under
   1-20  this subchapter <chapter>.
   1-21              (4)  "Organic farming" means a system of ecological
   1-22  soil management that relies on building humus levels through crop
   1-23  rotations, recycling organic wastes, and applying balanced mineral
   1-24  amendments and that uses, when necessary, mechanical, botanical, or
    2-1  biological controls with minimum adverse effects on health and
    2-2  environment.
    2-3              (5)  "Organic food" includes only food that is produced
    2-4  under a system of organic farming and processed, packaged,
    2-5  transported, and stored to retain maximum nutritional value without
    2-6  the use of artificial preservatives, coloring or other additives,
    2-7  ionizing radiation, or synthetic pesticides.
    2-8              (6)  "Organic fiber" includes only fiber that is
    2-9  produced under a system of organic farming and processed, packaged,
   2-10  transported, and stored to maintain segregation and prevention of
   2-11  contamination from other fiber or synthetic pesticides, prohibited
   2-12  defoliants, or desiccants.
   2-13              (7)  "Processor" means a person who is engaged in the
   2-14  business of manufacturing raw agricultural commodities into food,
   2-15  feed, or fiber products.
   2-16              (8)  "Producer" means a person who is engaged in the
   2-17  business of growing or producing food, feed, or fiber.
   2-18              (9)  "Retailer" means a person, other than a restaurant
   2-19  operator, who is engaged in the business of selling food at retail,
   2-20  other than at a restaurant, to its ultimate consumer.
   2-21        Sec. 18.002.  RULES.  The department may adopt rules
   2-22  necessary for the enforcement and administration of this subchapter
   2-23  <chapter>.
   2-24        Sec. 18.003.  ORGANIC CERTIFICATION.  (a)  The department
   2-25  shall certify producers, processors, distributors, and retailers of
   2-26  organic food and fiber in this state.  The department by rule shall
   2-27  adopt minimum standards for certification under this subchapter
    3-1  <chapter>.
    3-2        (b)  A person may apply for an organic certification, or a
    3-3  renewal of an organic certification, by submitting an application
    3-4  and a nonrefundable annual fee prescribed by the department.
    3-5        (c)  An organic certification expires on August 31 of each
    3-6  year.  A person who fails to submit a renewal fee on or before the
    3-7  expiration date of the certification must pay, in addition to the
    3-8  renewal fee, the late fee provided by Section 12.024 of this code.
    3-9        (d)  A person who is certified under this subchapter
   3-10  <chapter> may use department logos as provided by department rule.
   3-11        Sec. 18.004.  ORGANIC CERTIFYING AGENT REGISTRATION
   3-12  <ACCREDITATION> PROGRAM.  (a)  The department by rule may register
   3-13  <accredit> a person as an organic certifying agent.  On receipt of
   3-14  a certificate of registration <accreditation> under this section,
   3-15  an organic certifying agent may certify for the department a
   3-16  producer, processor, distributor, or retailer of organic food or
   3-17  fiber under this subchapter <chapter>.
   3-18        (b)  A person may apply for a certificate of registration
   3-19  <accreditation>, or a renewal of a certificate of registration
   3-20  <accreditation>, by submitting an application and a nonrefundable
   3-21  annual fee prescribed by the department.
   3-22        (c)  The department may issue a certificate of registration
   3-23  <accreditation> under this section only if it determines that the
   3-24  applicant's certification standards are equivalent to department
   3-25  certification standards.
   3-26        (d)  A certificate of registration <accreditation> expires on
   3-27  the first anniversary of the date of issuance.  A person who fails
    4-1  to submit a renewal fee on or before the expiration date of the
    4-2  certificate of registration <accreditation> must pay, in addition
    4-3  to the renewal fee, the late fee provided by Section 12.024 of this
    4-4  code.
    4-5        (e)  An organic certifying agent may not:
    4-6              (1)  provide an organic certification for a person with
    4-7  whom the organic certifying agent, or an employee of the organic
    4-8  certifying agent, has, or has had, a commercial relationship,
    4-9  including providing consulting services;
   4-10              (2)  accept payment, gifts, or other favors of any kind
   4-11  from a person seeking certification, other than fees permitted by
   4-12  this subchapter <chapter>; or
   4-13              (3)  charge a fee other than a fee prescribed by this
   4-14  subchapter <chapter> for providing advice about organic practices
   4-15  or techniques.
   4-16        Sec. 18.005.  USE OF TERM "ORGANIC".  A person may not label,
   4-17  market, advertise, or represent as "organic" any food or fiber that
   4-18  is sold, kept, offered, or exposed for sale, unless that person is:
   4-19              (1)  certified directly by the department under Section
   4-20  18.003 of this code; <or>
   4-21              (2)  certified by an organic certifying agent under
   4-22  Section 18.004 of this code; or
   4-23              (3)  certified by an organic certifying agent
   4-24  recognized under department rule.
   4-25        Sec. 18.006.  FEES.  (a)  The department may charge an annual
   4-26  fee not to exceed $2,500 for each applicant certified as a
   4-27  producer, distributor, or retailer and a fee not to exceed $5,000
    5-1  for each applicant certified as a processor of organic food or
    5-2  fiber produced in this state.
    5-3        (b)  The department may charge an annual fee not to exceed
    5-4  $2,500 for each applicant certified as a distributor or retailer
    5-5  and a fee not to exceed $5,000 for each applicant certified as a
    5-6  processor of organic food or fiber produced outside of this state.
    5-7        (c)  The department may charge an annual fee not to exceed
    5-8  $2,500 for a person who obtains a certificate of registration
    5-9  <accreditation> as an organic certifying agent.
   5-10        (d)  The department shall set fees under this subchapter
   5-11  <chapter> in amounts that enable it to recover the costs of
   5-12  administering this subchapter <chapter>.
   5-13        Sec. 18.007.  DENIAL, SUSPENSION, OR REVOCATION OF ORGANIC
   5-14  CERTIFICATION OR ORGANIC CERTIFYING AGENT REGISTRATION
   5-15  <ACCREDITATION>.  The department may deny, suspend, or revoke a
   5-16  certification of a producer, processor, distributor, or retailer or
   5-17  a certificate of registration <accreditation> issued to an organic
   5-18  certifying agent under this subchapter <chapter> if the person to
   5-19  whom the certification or registration <accreditation> was issued:
   5-20              (1)  makes a false representation material to a matter
   5-21  governed by this subchapter <chapter>; or
   5-22              (2)  violates or refuses to comply with this subchapter
   5-23  <chapter> or a rule or instruction of the department under this
   5-24  subchapter <chapter>.
   5-25        Sec. 18.008.  PENALTY.  (a)  A person commits an offense if
   5-26  the person knowingly:
   5-27              (1)  violates this subchapter <chapter>; or
    6-1              (2)  fails to comply with a notice, order, or rule of
    6-2  the department under this subchapter <chapter>.
    6-3        (b)  An offense under this section is a Class C misdemeanor.
    6-4        Sec. 18.009.  CIVIL PENALTY; INJUNCTION.  (a)  A person who
    6-5  violates this subchapter <chapter> or a rule adopted under this
    6-6  subchapter <chapter> is liable to the state for a civil penalty not
    6-7  to exceed $500 for each violation.  Each day a violation continues
    6-8  is a separate violation for purposes of a civil penalty assessment.
    6-9        (b)  On request of the department, the attorney general or
   6-10  the county attorney or district attorney of the county in which the
   6-11  violation is alleged to have occurred shall file suit to collect
   6-12  the penalty.
   6-13        (c)  A civil penalty collected under this section shall be
   6-14  deposited in the general revenue fund.  All civil penalties
   6-15  recovered in suits instituted by a county or district attorney
   6-16  under this section shall be divided between the state and the
   6-17  county in which the county or district attorney brought suit, with
   6-18  50 percent of the recovery to be paid to the general revenue fund
   6-19  and 50 percent to the county.
   6-20        (d)  The department is entitled to appropriate injunctive
   6-21  relief to prevent or abate a violation of this subchapter <chapter>
   6-22  or a rule adopted under this subchapter <chapter>.  On request of
   6-23  the department, the attorney general or the county or district
   6-24  attorney of the county in which the alleged violation is threatened
   6-25  or occurring shall file suit for the injunctive relief.  Venue is
   6-26  in the county in which the alleged violation is threatened or is
   6-27  occurring.
    7-1        (e)  This section is applicable only if the department
    7-2  chooses to use civil remedy as opposed to criminal penalty under
    7-3  Section 18.008.
    7-4        Sec. 18.010.  STOP-SALE ORDER.  (a)  If food or fiber is
    7-5  being sold in violation of this subchapter <chapter> or a rule
    7-6  adopted under this subchapter <chapter>, the department may issue a
    7-7  written order to stop the sale of that item of food or fiber by a
    7-8  person in control of the item.  The person named in the order may
    7-9  not sell the item until:
   7-10              (1)  permitted by a court under Subsection (b) of this
   7-11  section; or
   7-12              (2)  the department determines that the sale of the
   7-13  item is in compliance with this subchapter <chapter> and rules
   7-14  adopted under this subchapter <chapter>.
   7-15        (b)  The person named in the order may bring suit in a court
   7-16  in the county where the item is located.  After a hearing, the
   7-17  court may permit the item to be sold if the court finds the item is
   7-18  not being sold in violation of this subchapter <chapter> or a
   7-19  department rule issued under this subchapter <chapter>.
   7-20        (c)  This section does not limit the department's right to
   7-21  act under another section of this subchapter <chapter>.
   7-22          (Sections 18.011 to 18.050 reserved for expansion
   7-23             SUBCHAPTER B.  AGRICULTURAL PRODUCT STANDARDS
   7-24        Sec. 18.051.  PRODUCT CERTIFICATION PROGRAMS.  (a)  The
   7-25  department may establish certification programs relating to the
   7-26  protection, sale, advertising, marketing, transporting, or other
   7-27  commercial handling of agricultural, horticultural, or related
    8-1  products in this state if the department determines that a
    8-2  certification program is warranted to:
    8-3              (1)  ensure genetic purity, identity, or disease or
    8-4  pest resistance; or
    8-5              (2)  help prevent the spread of insects, other pests,
    8-6  diseases, or pathogens.
    8-7        (b)  The department may regulate the use of the term "Texas
    8-8  Certified Product," other terms that indicate product quality
    8-9  standards, and symbols connected with those terms as used with a
   8-10  product regulated under this subchapter.
   8-11        Sec. 18.052.  STANDARDS.  The department by rule may develop
   8-12  minimum certification standards for the administration and
   8-13  enforcement of this subchapter.
   8-14        Sec. 18.053.  FEES.  The department may set fees under this
   8-15  subchapter in amounts that do not exceed the amounts reasonably
   8-16  necessary to enable the department to recover the costs of
   8-17  administering this subchapter.
   8-18        Sec. 18.054.  CIVIL PENALTY; INJUNCTION.  (a)  A person who
   8-19  violates this subchapter or a rule adopted by the department under
   8-20  this subchapter is liable for a civil penalty not to exceed $500
   8-21  for each violation.  Each day a violation continues is a separate
   8-22  violation for purposes of assessment of a civil penalty under this
   8-23  section.
   8-24        (b)  A civil penalty recovered by the department under this
   8-25  section shall be deposited in the general revenue fund.  A civil
   8-26  penalty recovered in an action instituted by a local government
   8-27  under this section shall be equally divided between this state and
    9-1  the local government, with 50 percent of the penalty recovered paid
    9-2  to the general revenue fund and the other 50 percent to the general
    9-3  fund of the local government instituting the action.
    9-4        (c)  On request of the department, the attorney general or
    9-5  the county attorney or district attorney of the county in which the
    9-6  violation is alleged to have occurred shall bring an action to
    9-7  collect the civil penalty.
    9-8        (d)  The department is entitled to appropriate injunctive
    9-9  relief to prevent or abate a violation of this subchapter or a rule
   9-10  adopted under this subchapter.  On the request of the department,
   9-11  the attorney general or the county attorney or district attorney of
   9-12  the county in which the alleged violation is threatened or
   9-13  occurring shall bring an action for the injunctive relief.  Venue
   9-14  for the action lies in the county in which the alleged violation is
   9-15  threatened or occurring.
   9-16          (Sections 18.055 to 18.070 reserved for expansion
   9-17            SUBCHAPTER C.  AGRICULTURAL PRODUCTION PROCESS
   9-18                         CERTIFICATION PROGRAM
   9-19        Sec. 18.071.  AGRICULTURAL CERTIFICATION.  The department may
   9-20  establish voluntary certification programs under this subchapter
   9-21  relating to the protection, sale, advertising, marketing, or
   9-22  related production processes in this state.
   9-23        Sec. 18.072.  CERTIFICATION STANDARDS.  The department by
   9-24  rule may develop programs establishing minimum certification
   9-25  standards for production processes.
   9-26        Sec. 18.073.  FEES.  The department may set fees under this
   9-27  subchapter in amounts that do not exceed the amounts reasonably
   10-1  necessary to enable the department to recover the costs of
   10-2  administering this subchapter.
   10-3        Sec. 18.074.  ADMINISTRATIVE PENALTY.  The department may
   10-4  assess an administrative penalty under Section 12.020 if the
   10-5  department determines that a person is falsely claiming to be
   10-6  certified under this subchapter.
   10-7        SECTION 2.  Subsection (c), Section 12.020, Agriculture Code,
   10-8  is amended to read as follows:
   10-9        (c)  The provisions of this code subject to this section and
  10-10  the applicable penalty amounts are as follows:
  10-11  Provision                                           Maximum Penalty
  10-12  Chapters 13, 14, 18, 61, 101, 102, 103, and 132         $  500
  10-13  Subchapter B, Chapter 71                                $2,000
  10-14  Subchapters A and C, Chapter 71
  10-15  Chapters 72, 73, and 74                                 $5,000.
  10-16        SECTION 3.   This Act takes effect September 1, 1995.
  10-17        SECTION 4.  The importance of this legislation and the
  10-18  crowded condition of the calendars in both houses create an
  10-19  emergency and an imperative public necessity that the
  10-20  constitutional rule requiring bills to be read on three several
  10-21  days in each house be suspended, and this rule is hereby suspended.