By: Lucio S.B. No. 810
A BILL TO BE ENTITLED
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 a private organic
1-19 certification organization accredited under this subchapter
1-20 <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 ACCREDITATION PROGRAM.
3-12 (a) The department by rule may accredit a person as an organic
3-13 certifying agent. On receipt of a certificate of accreditation
3-14 under this section, an organic certifying agent may certify for the
3-15 department a producer, processor, distributor, or retailer of
3-16 organic food or fiber under this subchapter <chapter>.
3-17 (b) A person may apply for a certificate of accreditation,
3-18 or a renewal of a certificate of accreditation, by submitting an
3-19 application and a nonrefundable annual fee prescribed by the
3-20 department.
3-21 (c) The department may issue a certificate of accreditation
3-22 under this section only if it determines that the applicant's
3-23 certification standards are equivalent to department certification
3-24 standards.
3-25 (d) A certificate of accreditation expires on the first
3-26 anniversary of the date of issuance. A person who fails to submit
3-27 a renewal fee on or before the expiration date of the certificate
4-1 of accreditation must pay, in addition to the renewal fee, the late
4-2 fee provided by Section 12.024 of this code.
4-3 (e) An organic certifying agent may not:
4-4 (1) provide an organic certification for a person with
4-5 whom the organic certifying agent, or an employee of the organic
4-6 certifying agent, has, or has had, a commercial relationship,
4-7 including providing consulting services;
4-8 (2) accept payment, gifts, or other favors of any kind
4-9 from a person seeking certification, other than fees permitted by
4-10 this subchapter <chapter>; or
4-11 (3) charge a fee other than a fee prescribed by this
4-12 subchapter <chapter> for providing advice about organic practices
4-13 or techniques.
4-14 Sec. 18.005. USE OF TERM "ORGANIC". A person may not label,
4-15 market, advertise, or represent as "organic" any food or fiber that
4-16 is sold, kept, offered, or exposed for sale, unless that person is:
4-17 (1) certified directly by the department under Section
4-18 18.003 of this code; or
4-19 (2) certified by an organic certifying agent under
4-20 Section 18.004 of this code.
4-21 Sec. 18.006. FEES. (a) The department may charge an annual
4-22 fee not to exceed $2,500 for each applicant certified as a
4-23 producer, distributor, or retailer and a fee not to exceed $5,000
4-24 for each applicant certified as a processor of organic food or
4-25 fiber produced in this state.
4-26 (b) The department may charge an annual fee not to exceed
4-27 $2,500 for each applicant certified as a distributor or retailer
5-1 and a fee not to exceed $5,000 for each applicant certified as a
5-2 processor of organic food or fiber produced outside of this state.
5-3 (c) The department may charge an annual fee not to exceed
5-4 $2,500 for a person who obtains a certificate of accreditation as
5-5 an organic certifying agent.
5-6 (d) The department shall set fees under this subchapter
5-7 <chapter> in amounts that enable it to recover the costs of
5-8 administering this subchapter <chapter>.
5-9 Sec. 18.007. DENIAL, SUSPENSION, OR REVOCATION OF ORGANIC
5-10 CERTIFICATION OR ORGANIC CERTIFYING AGENT ACCREDITATION. The
5-11 department may deny, suspend, or revoke a certification of a
5-12 producer, processor, distributor, or retailer or a certificate of
5-13 accreditation issued to an organic certifying agent under this
5-14 subchapter <chapter> if the person to whom the certification or
5-15 accreditation was issued:
5-16 (1) makes a false representation material to a matter
5-17 governed by this subchapter <chapter>; or
5-18 (2) violates or refuses to comply with this subchapter
5-19 <chapter> or a rule or instruction of the department under this
5-20 subchapter <chapter>.
5-21 Sec. 18.008. PENALTY. (a) A person commits an offense if
5-22 the person knowingly:
5-23 (1) violates this subchapter <chapter>; or
5-24 (2) fails to comply with a notice, order, or rule of
5-25 the department under this subchapter <chapter>.
5-26 (b) An offense under this section is a Class C misdemeanor.
5-27 Sec. 18.009. CIVIL PENALTY; INJUNCTION. (a) A person who
6-1 violates this subchapter <chapter> or a rule adopted under this
6-2 subchapter <chapter> is liable to the state for a civil penalty not
6-3 to exceed $500 for each violation. Each day a violation continues
6-4 is a separate violation for purposes of a civil penalty assessment.
6-5 (b) On request of the department, the attorney general or
6-6 the county attorney or district attorney of the county in which the
6-7 violation is alleged to have occurred shall file suit to collect
6-8 the penalty.
6-9 (c) A civil penalty collected under this section shall be
6-10 deposited in the general revenue fund. All civil penalties
6-11 recovered in suits instituted by a county or district attorney
6-12 under this section shall be divided between the state and the
6-13 county in which the county or district attorney brought suit, with
6-14 50 percent of the recovery to be paid to the general revenue fund
6-15 and 50 percent to the county.
6-16 (d) The department is entitled to appropriate injunctive
6-17 relief to prevent or abate a violation of this subchapter <chapter>
6-18 or a rule adopted under this subchapter <chapter>. On request of
6-19 the department, the attorney general or the county or district
6-20 attorney of the county in which the alleged violation is threatened
6-21 or occurring shall file suit for the injunctive relief. Venue is
6-22 in the county in which the alleged violation is threatened or is
6-23 occurring.
6-24 (e) This section is applicable only if the department
6-25 chooses to use civil remedy as opposed to criminal penalty under
6-26 Section 18.008.
6-27 Sec. 18.010. STOP-SALE ORDER. (a) If food or fiber is
7-1 being sold in violation of this subchapter <chapter> or a rule
7-2 adopted under this subchapter <chapter>, the department may issue a
7-3 written order to stop the sale of that item of food or fiber by a
7-4 person in control of the item. The person named in the order may
7-5 not sell the item until:
7-6 (1) permitted by a court under Subsection (b) of this
7-7 section; or
7-8 (2) the department determines that the sale of the
7-9 item is in compliance with this subchapter <chapter> and rules
7-10 adopted under this subchapter <chapter>.
7-11 (b) The person named in the order may bring suit in a court
7-12 in the county where the item is located. After a hearing, the
7-13 court may permit the item to be sold if the court finds the item is
7-14 not being sold in violation of this subchapter <chapter> or a
7-15 department rule issued under this subchapter <chapter>.
7-16 (c) This section does not limit the department's right to
7-17 act under another section of this subchapter <chapter>.
7-18 (Sections 18.011 to 18.050 reserved for expansion
7-19 SUBCHAPTER B. AGRICULTURAL PRODUCT STANDARDS
7-20 Sec. 18.051. PRODUCT CERTIFICATION PROGRAMS. (a) The
7-21 department may establish certification programs relating to the
7-22 protection, sale, advertising, marketing, transporting, or other
7-23 commercial handling of agricultural, horticultural, or related
7-24 products in this state if the department determines that a
7-25 certification program is warranted to:
7-26 (1) ensure genetic purity, identity, or disease or
7-27 pest resistance; or
8-1 (2) help prevent the spread of insects, other pests,
8-2 diseases, or pathogens.
8-3 (b) The department may regulate the use of the term "Texas
8-4 Certified Product," other terms that indicate product quality
8-5 standards, and symbols connected with those terms as used with a
8-6 product regulated under this subchapter.
8-7 Sec. 18.052. STANDARDS. The department by rule may develop
8-8 minimum certification standards for the administration and
8-9 enforcement of this subchapter.
8-10 Sec. 18.053. FEES. The department may set fees under this
8-11 subchapter in amounts that do not exceed the amounts reasonably
8-12 necessary to enable the department to recover the costs of
8-13 administering this subchapter.
8-14 Sec. 18.054. CIVIL PENALTY; INJUNCTION. (a) A person who
8-15 violates this subchapter or a rule adopted by the department under
8-16 this subchapter is liable for a civil penalty not to exceed $500
8-17 for each violation. Each day a violation continues is a separate
8-18 violation for purposes of assessment of a civil penalty under this
8-19 section.
8-20 (b) A civil penalty recovered by the department under this
8-21 section shall be deposited in the general revenue fund. A civil
8-22 penalty recovered in an action instituted by a local government
8-23 under this section shall be equally divided between this state and
8-24 the local government, with 50 percent of the penalty recovered paid
8-25 to the general revenue fund and the other 50 percent to the general
8-26 fund of the local government instituting the action.
8-27 (c) On request of the department, the attorney general or
9-1 the county attorney or district attorney of the county in which the
9-2 violation is alleged to have occurred shall bring an action to
9-3 collect the civil penalty.
9-4 (d) The department is entitled to appropriate injunctive
9-5 relief to prevent or abate a violation of this subchapter or a rule
9-6 adopted under this subchapter. On the request of the department,
9-7 the attorney general or the county attorney or district attorney of
9-8 the county in which the alleged violation is threatened or
9-9 occurring shall bring an action for the injunctive relief. Venue
9-10 for the action lies in the county in which the alleged violation is
9-11 threatened or occurring.
9-12 (Sections 18.055 to 18.070 reserved for expansion
9-13 SUBCHAPTER C. AGRICULTURAL PRODUCTION PROCESS
9-14 CERTIFICATION PROGRAM
9-15 Sec. 18.071. AGRICULTURAL CERTIFICATION. The department may
9-16 establish voluntary certification programs under this subchapter
9-17 relating to the protection, sale, advertising, marketing, or
9-18 related production processes in this state.
9-19 Sec. 18.072. CERTIFICATION STANDARDS. The department by
9-20 rule may develop programs establishing minimum certification
9-21 standards for production processes.
9-22 Sec. 18.073. FEES. The department may set fees under this
9-23 subchapter in amounts that do not exceed the amounts reasonably
9-24 necessary to enable the department to recover the costs of
9-25 administering this subchapter.
9-26 Sec. 18.074. ADMINISTRATIVE PENALTY. The department may
9-27 assess an administrative penalty under Section 12.020 if the
10-1 department determines that a person is falsely claiming to be
10-2 certified under this subchapter.
10-3 SECTION 2. Subsection (c), Section 12.020, Agriculture Code,
10-4 is amended to read as follows:
10-5 (c) The provisions of this code subject to this section and
10-6 the applicable penalty amounts are as follows:
10-7 Provision Maximum Penalty
10-8 Chapters 13, 14, 18, 61, 101, 102, 103, and 132 $ 500
10-9 Subchapter B, Chapter 71 $2,000
10-10 Subchapters A and C, Chapter 71
10-11 Chapters 72, 73, and 74 $5,000.
10-12 SECTION 3. This Act takes effect September 1, 1995.
10-13 SECTION 4. The importance of this legislation and the
10-14 crowded condition of the calendars in both houses create an
10-15 emergency and an imperative public necessity that the
10-16 constitutional rule requiring bills to be read on three several
10-17 days in each house be suspended, and this rule is hereby suspended.
10-18 COMMITTEE AMENDMENT NO. 1
10-19 Amend S.B. 810 as follows:
10-20 On page 1, line 18, strike "a private" and add "an".
10-21 On page 1, line 19, strike "accredited" and substitute
10-22 "registered".
10-23 On page 3, line 14, strike "ACCREDITATION" and substitute
10-24 "REGISTRATION".
10-25 On page 3, line 15, strike "accredit" and substitute
10-26 "register".
10-27 On page 3, line 16, strike "accreditation" and substitute
11-1 "registration".
11-2 On page 3, line 20, strike "accreditation" and substitute
11-3 "registration".
11-4 On page 3, line 21, strike "accreditation" and substitute
11-5 "registration".
11-6 On page 3, line 24, strike "accreditation" and substitute
11-7 "registration".
11-8 On page 4, line 3, strike "accreditation" and substitute
11-9 "registration".
11-10 On page 4, line 6, strike "accreditation" and substitute
11-11 "registration".
11-12 On page 4, line 23, strike "or".
11-13 On page 4, line 25, strike "." and substitute "; or".
11-14 On page 4, amend Section 18.005 by adding a new
11-15 subdivision: "(3) certified by an organic certifying agent
11-16 recognized under department rule."
11-17 On page 5, line 11, strike "accreditation" and substitute
11-18 "registration".
11-19 On page 5, line 17, strike "ACCREDITATION" and substitute
11-20 "REGISTRATION".
11-21 On page 5, line 20, strike "accreditation" and substitute
11-22 "registration".
11-23 On page 5, line 22, strike "accreditation" and substitute
11-24 "registration".
11-25 Swinford