By Lucio                                               S.B. No. 810
       74R7126 T
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the Department of Agriculture's certification of Texas
    1-3  agricultural products and production processes and the imposition
    1-4  of penalties.
    1-5        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-6        SECTION 1.  Chapter 18, Agriculture Code, is amended to read
    1-7  as follows:
    1-8        CHAPTER 18.  <ORGANIC> CERTIFICATION AND AGRICULTURAL PRODUCT
    1-9  STANDARDS <AND CERTIFICATION>
   1-10          SUBCHAPTER A:  ORGANIC STANDARDS AND CERTIFICATION
   1-11        Sec. 18.001.  Definitions.  In this subchapter:
   1-12              (1)  "Distributor" means a person engaged in the
   1-13  business of selling food or fiber for resale, including a
   1-14  wholesaler, broker, packer, repacker, shipper, or shipping agent.
   1-15              (2)  "Logo" means the department's copyrighted "Texas
   1-16  Department of Agriculture Certified Organic" or "Texas Department
   1-17  of Agriculture Organic Certification Pending--Transitional"
   1-18  logotype.
   1-19              (3)  "Organic certifying agent" means a private organic
   1-20  certification organization accredited under this subchapter.
   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
   2-23  subchapter.
   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        (b)  A person may apply for an organic certification, or a
    3-2  renewal of an organic certification, by submitting an application
    3-3  and a nonrefundable annual fee prescribed by the department.
    3-4        (c)  An organic certification expires on August 31 of each
    3-5  year.  A person who fails to submit a renewal fee on or before the
    3-6  expiration date of the certification must pay, in addition to the
    3-7  renewal fee, the late fee provided by Section 12.024 of this code.
    3-8        (d)  A person who is certified under this subchapter may use
    3-9  department logos as provided by department rule.
   3-10        Sec. 18.004.  Organic Certifying Agent Accreditation Program.
   3-11  (a)  The department by rule may accredit a person as an organic
   3-12  certifying agent.  On receipt of a certificate of accreditation
   3-13  under this section, an organic certifying agent may certify for the
   3-14  department a producer, processor, distributor, or retailer of
   3-15  organic food or fiber under this subchapter.
   3-16        (b)  A person may apply for a certificate of accreditation,
   3-17  or a renewal of a certificate of accreditation, by submitting an
   3-18  application and a nonrefundable annual fee prescribed by the
   3-19  department.
   3-20        (c)  The department may issue a certificate of accreditation
   3-21  under this section only if it determines that the applicant's
   3-22  certification standards are equivalent to department certification
   3-23  standards.
   3-24        (d)  A certificate of accreditation expires on the first
   3-25  anniversary of the date of issuance.  A person who fails to submit
   3-26  a renewal fee on or before the expiration date of the certificate
   3-27  of accreditation must pay, in addition to the renewal fee, the late
    4-1  fee provided by Section 12.024 of this code.
    4-2        (e)  An organic certifying agent may not:
    4-3              (1)  provide an organic certification for a person with
    4-4  whom the organic certifying agent, or an employee of the organic
    4-5  certifying agent, has, or has had, a commercial relationship,
    4-6  including providing consulting services;
    4-7              (2)  accept payment, gifts, or other favors of any kind
    4-8  from a person seeking certification, other than fees permitted by
    4-9  this subchapter; or
   4-10              (3)  charge a fee other than a fee prescribed by this
   4-11  subchapter for providing advice about organic practices or
   4-12  techniques.
   4-13        Sec. 18.005.  Use of Term "Organic".  A person may not label,
   4-14  market, advertise, or represent as "organic" any food or fiber that
   4-15  is sold, kept, offered, or exposed for sale, unless that person is:
   4-16              (1)  certified directly by the department under Section
   4-17  18.003 of this code; or
   4-18              (2)  certified by an organic certifying agent under
   4-19  Section 18.004 of this code.
   4-20        Sec. 18.006.  Fees.  (a)  The department may charge an annual
   4-21  fee not to exceed $2,500 for each applicant certified as a
   4-22  producer, distributor, or retailer and a fee not to exceed $5,000
   4-23  for each applicant certified as a processor of organic food or
   4-24  fiber produced in this state.
   4-25        (b)  The department may charge an annual fee not to exceed
   4-26  $2,500 for each applicant certified as a distributor or retailer
   4-27  and a fee not to exceed $5,000 for each applicant certified as a
    5-1  processor of organic food or fiber produced outside of this state.
    5-2        (c)  The department may charge an annual fee not to exceed
    5-3  $2,500 for a person who obtains a certificate of accreditation as
    5-4  an organic certifying agent.
    5-5        (d)  The department shall set fees under this subchapter in
    5-6  amounts that enable it to recover the costs of administering this
    5-7  subchapter.
    5-8        Sec. 18.007.  Denial, Suspension, or Revocation of Organic
    5-9  Certification or Organic Certifying Agent Accreditation.  The
   5-10  department may deny, suspend, or revoke a certification of a
   5-11  producer, processor, distributor, or retailer or a certificate of
   5-12  accreditation issued to an organic certifying agent under this
   5-13  subchapter if the person to whom the certification or accreditation
   5-14  was issued:
   5-15              (1)  makes a false representation material to a matter
   5-16  governed by this subchapter; or
   5-17              (2)  violates or refuses to comply with this subchapter
   5-18  or a rule or instruction of the department under this subchapter.
   5-19        Sec. 18.008.  Penalty.  (a)  A person commits an offense if
   5-20  the person knowingly:
   5-21              (1)  violates this subchapter; or
   5-22              (2)  fails to comply with a notice, order, or rule of
   5-23  the department under this subchapter.
   5-24        (b)  An offense under this section is a Class C misdemeanor.
   5-25        Sec. 18.009.  Civil Penalty; Injunction.  (a)  A person who
   5-26  violates this subchapter or a rule adopted under this subchapter is
   5-27  liable to the state for a civil penalty not to exceed $500 for each
    6-1  violation.  Each day a violation continues is a separate violation
    6-2  for purposes of a civil penalty assessment.
    6-3        (b)  On request of the department, the attorney general or
    6-4  the county attorney or district attorney of the county in which the
    6-5  violation is alleged to have occurred shall file suit to collect
    6-6  the penalty.
    6-7        (c)  A civil penalty collected under this section shall be
    6-8  deposited in the general revenue fund.  All civil penalties
    6-9  recovered in suits instituted by a county or district attorney
   6-10  under this section shall be divided between the state and the
   6-11  county in which the county or district attorney brought suit, with
   6-12  50 percent of the recovery to be paid to the general revenue fund
   6-13  and 50 percent to the county.
   6-14        (d)  The department is entitled to appropriate injunctive
   6-15  relief to prevent or abate a violation of this subchapter or a rule
   6-16  adopted under this subchapter.  On request of the department, the
   6-17  attorney general or the county or district attorney of the county
   6-18  in which the alleged violation is threatened or occurring shall
   6-19  file suit for the injunctive relief.  Venue is in the county in
   6-20  which the alleged violation is threatened or is occurring.
   6-21        (e)  This section is applicable only if the department
   6-22  chooses to use civil remedy as opposed to criminal penalty under
   6-23  Section 18.008.
   6-24        Sec. 18.010.  Stop-Sale Order.  (a)  If food or fiber is
   6-25  being sold in violation of this subchapter or a rule adopted under
   6-26  this subchapter, the department may issue a written order to stop
   6-27  the sale of that item of food or fiber by a person in control of
    7-1  the item.  The person named in the order may not sell the item
    7-2  until:
    7-3              (1)  permitted by a court under Subsection (b) of this
    7-4  section; or
    7-5              (2)  the department determines that the sale of the
    7-6  item is in compliance with this subchapter and rules adopted under
    7-7  this subchapter.
    7-8        (b)  The person named in the order may bring suit in a court
    7-9  in the county where the item is located.  After a hearing, the
   7-10  court may permit the item to be sold if the court finds the item is
   7-11  not being sold in violation of this subchapter or a department rule
   7-12  issued under this subchapter.
   7-13        (c)  This section does not limit the department's right to
   7-14  act under another section of this subchapter.
   7-15            SUBCHAPTER B:  AGRICULTURAL PRODUCT STANDARDS
   7-16        Sec. 18.011.  PRODUCT CERTIFICATION.  (a)  The department may
   7-17  establish certification programs relating to the protecting,
   7-18  selling, advertising, marketing, transporting or other commercial
   7-19  handling of agricultural, horticultural or related products in
   7-20  Texas when a certification program is warranted to assure genetic
   7-21  purity, identity, or disease or pest resistance, or to help prevent
   7-22  the spread of insects, pests, disease or pathogens.
   7-23        (b)  The department may regulate the use of the term "Texas
   7-24  Certified Product", other terms indicating product quality
   7-25  standards, and any symbols connected with such terms as used with
   7-26  any products regulated under this subchapter.
   7-27        Sec. 18.012.  RULES.  The department may, by rule, develop
    8-1  minimum certification standards for the administration and
    8-2  enforcement of this subchapter.
    8-3        Sec. 18.013.  FEES.  The department may set fees under this
    8-4  subchapter in amounts no greater than needed to enable it to
    8-5  recover the costs of administering this subchapter.
    8-6        Sec. 18.014.  CIVIL PENALTY; INJUNCTION.  (a)  A person who
    8-7  violates this subchapter or a rule adopted by the department under
    8-8  this subchapter is liable for a civil penalty not to exceed $500
    8-9  for each violation.  Each day a violation continues is a separate
   8-10  violation for purposes of a civil penalty assessment.  A civil
   8-11  penalty collected under this section shall be deposited in the
   8-12  general revenue fund.  All civil penalties recovered in suits
   8-13  instituted by a local government or governments under this section
   8-14  shall be equally divided between the State of Texas and the local
   8-15  government or governments with 50 percent of the recovery to be
   8-16  paid to the General Revenue Fund and the other 50 percent equally
   8-17  to the local government or governments first instituting the suit.
   8-18        (b)  On request of the department, the attorney general or
   8-19  the county attorney or district attorney of the county in which the
   8-20  violation is alleged to have occurred shall file suit to collect
   8-21  the penalty.
   8-22        (c)  The department is entitled to appropriate injunctive
   8-23  relief to prevent or abate a violation of this subchapter or a rule
   8-24  adopted under this subchapter.  On request of the department, the
   8-25  attorney general or the county district attorney of the county in
   8-26  which the alleged violation is threatened or occurring shall file
   8-27  suit for the injunctive relief.  Venue is the county in which the
    9-1  alleged violation is threatened or occurring.
    9-2     SUBCHAPTER C:  AGRICULTURAL PRODUCTION PROCESS CERTIFICATION
    9-3                                PROGRAM
    9-4        Sec. 18.015.  AGRICULTURAL CERTIFICATION.  (a)  The
    9-5  department may establish voluntary certification programs relating
    9-6  to the protecting, selling, advertising, marketing, or related
    9-7  production processes in Texas.  Such processes may be certified
    9-8  under this subchapter.
    9-9        Sec. 18.016.  RULES.  The department may, by rule, develop
   9-10  programs establishing minimum certification standards for
   9-11  production processes.
   9-12        Sec. 18.017.  FEES.  The department may set fees under this
   9-13  subchapter in amounts no greater than needed to enable it to
   9-14  recover the costs of administering this subchapter.
   9-15        Sec. 18.018.  PENALTIES.  The department may assess an
   9-16  administrative penalty under this subchapter only if it finds that
   9-17  a person is falsely claiming to be certified under this subchapter.
   9-18        SECTION 2.  Section 12.020(c), Agriculture Code, is amended
   9-19  to read as follows:
   9-20        (c)  The provisions of this code subject to this section and
   9-21  the applicable penalty amounts are as follows:
   9-22           Provision                            Maximum Penalty
   9-23  Chapters 13, 14, 18, 61,
   9-24  101, 102, 103, and 132,                           $500
   9-25  Subchapter B, Chapter 71                          $2,000
   9-26  Subchapters A and C, Chapter 71
   9-27  Chapters 72 and 73                                $5,000.
   10-1        SECTION 3.  The importance of this legislation and the
   10-2  crowded condition of the calendars in both houses create an
   10-3  emergency and an imperative public necessity that the
   10-4  constitutional rule requiring bills to be read on three several
   10-5  days in each house be suspended, and this rule is hereby suspended,
   10-6  and that this Act take effect and be in force from and after its
   10-7  passage, and it is so enacted.