1-1 By: Lucio S.B. No. 810
1-2 (In the Senate - Filed February 28, 1995; March 1, 1995, read
1-3 first time and referred to Committee on Natural Resources;
1-4 March 15, 1995, reported adversely, with favorable Committee
1-5 Substitute by the following vote: Yeas 10, Nays 0; March 15, 1995,
1-6 sent to printer.)
1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 810 By: Lucio
1-8 A BILL TO BE ENTITLED
1-9 AN ACT
1-10 relating to the certification of Texas agricultural products and
1-11 production processes by the Department of Agriculture; authorizing
1-12 the imposition of fees; and providing penalties.
1-13 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-14 SECTION 1. Chapter 18, Agriculture Code, is amended to read
1-15 as follows:
1-16 CHAPTER 18. CERTIFICATION AND AGRICULTURAL PRODUCT
1-17 <ORGANIC> STANDARDS <AND CERTIFICATION>
1-18 SUBCHAPTER A. ORGANIC STANDARDS AND CERTIFICATION
1-19 Sec. 18.001. DEFINITIONS. In this subchapter <chapter>:
1-20 (1) "Distributor" means a person engaged in the
1-21 business of selling food or fiber for resale, including a
1-22 wholesaler, broker, packer, repacker, shipper, or shipping agent.
1-23 (2) "Logo" means the department's copyrighted "Texas
1-24 Department of Agriculture Certified Organic" or "Texas Department
1-25 of Agriculture Organic Certification Pending--Transitional"
1-26 logotype.
1-27 (3) "Organic certifying agent" means a private organic
1-28 certification organization accredited under this subchapter
1-29 <chapter>.
1-30 (4) "Organic farming" means a system of ecological
1-31 soil management that relies on building humus levels through crop
1-32 rotations, recycling organic wastes, and applying balanced mineral
1-33 amendments and that uses, when necessary, mechanical, botanical, or
1-34 biological controls with minimum adverse effects on health and
1-35 environment.
1-36 (5) "Organic food" includes only food that is produced
1-37 under a system of organic farming and processed, packaged,
1-38 transported, and stored to retain maximum nutritional value without
1-39 the use of artificial preservatives, coloring or other additives,
1-40 ionizing radiation, or synthetic pesticides.
1-41 (6) "Organic fiber" includes only fiber that is
1-42 produced under a system of organic farming and processed, packaged,
1-43 transported, and stored to maintain segregation and prevention of
1-44 contamination from other fiber or synthetic pesticides, prohibited
1-45 defoliants, or desiccants.
1-46 (7) "Processor" means a person who is engaged in the
1-47 business of manufacturing raw agricultural commodities into food,
1-48 feed, or fiber products.
1-49 (8) "Producer" means a person who is engaged in the
1-50 business of growing or producing food, feed, or fiber.
1-51 (9) "Retailer" means a person, other than a restaurant
1-52 operator, who is engaged in the business of selling food at retail,
1-53 other than at a restaurant, to its ultimate consumer.
1-54 Sec. 18.002. RULES. The department may adopt rules necessary
1-55 for the enforcement and administration of this subchapter
1-56 <chapter>.
1-57 Sec. 18.003. ORGANIC CERTIFICATION. (a) The department
1-58 shall certify producers, processors, distributors, and retailers of
1-59 organic food and fiber in this state. The department by rule shall
1-60 adopt minimum standards for certification under this subchapter
1-61 <chapter>.
1-62 (b) A person may apply for an organic certification, or a
1-63 renewal of an organic certification, by submitting an application
1-64 and a nonrefundable annual fee prescribed by the department.
1-65 (c) An organic certification expires on August 31 of each
1-66 year. A person who fails to submit a renewal fee on or before the
1-67 expiration date of the certification must pay, in addition to the
1-68 renewal fee, the late fee provided by Section 12.024 of this code.
2-1 (d) A person who is certified under this subchapter
2-2 <chapter> may use department logos as provided by department rule.
2-3 Sec. 18.004. ORGANIC CERTIFYING AGENT ACCREDITATION PROGRAM.
2-4 (a) The department by rule may accredit a person as an organic
2-5 certifying agent. On receipt of a certificate of accreditation
2-6 under this section, an organic certifying agent may certify for the
2-7 department a producer, processor, distributor, or retailer of
2-8 organic food or fiber under this subchapter <chapter>.
2-9 (b) A person may apply for a certificate of accreditation,
2-10 or a renewal of a certificate of accreditation, by submitting an
2-11 application and a nonrefundable annual fee prescribed by the
2-12 department.
2-13 (c) The department may issue a certificate of accreditation
2-14 under this section only if it determines that the applicant's
2-15 certification standards are equivalent to department certification
2-16 standards.
2-17 (d) A certificate of accreditation expires on the first
2-18 anniversary of the date of issuance. A person who fails to submit
2-19 a renewal fee on or before the expiration date of the certificate
2-20 of accreditation must pay, in addition to the renewal fee, the late
2-21 fee provided by Section 12.024 of this code.
2-22 (e) An organic certifying agent may not:
2-23 (1) provide an organic certification for a person with
2-24 whom the organic certifying agent, or an employee of the organic
2-25 certifying agent, has, or has had, a commercial relationship,
2-26 including providing consulting services;
2-27 (2) accept payment, gifts, or other favors of any kind
2-28 from a person seeking certification, other than fees permitted by
2-29 this subchapter <chapter>; or
2-30 (3) charge a fee other than a fee prescribed by this
2-31 subchapter <chapter> for providing advice about organic practices
2-32 or techniques.
2-33 Sec. 18.005. USE OF TERM "ORGANIC". A person may not label,
2-34 market, advertise, or represent as "organic" any food or fiber that
2-35 is sold, kept, offered, or exposed for sale, unless that person is:
2-36 (1) certified directly by the department under Section
2-37 18.003 of this code; or
2-38 (2) certified by an organic certifying agent under
2-39 Section 18.004 of this code.
2-40 Sec. 18.006. FEES. (a) The department may charge an annual
2-41 fee not to exceed $2,500 for each applicant certified as a
2-42 producer, distributor, or retailer and a fee not to exceed $5,000
2-43 for each applicant certified as a processor of organic food or
2-44 fiber produced in this state.
2-45 (b) The department may charge an annual fee not to exceed
2-46 $2,500 for each applicant certified as a distributor or retailer
2-47 and a fee not to exceed $5,000 for each applicant certified as a
2-48 processor of organic food or fiber produced outside of this state.
2-49 (c) The department may charge an annual fee not to exceed
2-50 $2,500 for a person who obtains a certificate of accreditation as
2-51 an organic certifying agent.
2-52 (d) The department shall set fees under this subchapter
2-53 <chapter> in amounts that enable it to recover the costs of
2-54 administering this subchapter <chapter>.
2-55 Sec. 18.007. DENIAL, SUSPENSION, OR REVOCATION OF ORGANIC
2-56 CERTIFICATION OR ORGANIC CERTIFYING AGENT ACCREDITATION. The
2-57 department may deny, suspend, or revoke a certification of a
2-58 producer, processor, distributor, or retailer or a certificate of
2-59 accreditation issued to an organic certifying agent under this
2-60 subchapter <chapter> if the person to whom the certification or
2-61 accreditation was issued:
2-62 (1) makes a false representation material to a matter
2-63 governed by this subchapter <chapter>; or
2-64 (2) violates or refuses to comply with this subchapter
2-65 <chapter> or a rule or instruction of the department under this
2-66 subchapter <chapter>.
2-67 Sec. 18.008. PENALTY. (a) A person commits an offense if
2-68 the person knowingly:
2-69 (1) violates this subchapter <chapter>; or
2-70 (2) fails to comply with a notice, order, or rule of
3-1 the department under this subchapter <chapter>.
3-2 (b) An offense under this section is a Class C misdemeanor.
3-3 Sec. 18.009. CIVIL PENALTY; INJUNCTION. (a) A person who
3-4 violates this subchapter <chapter> or a rule adopted under this
3-5 subchapter <chapter> is liable to the state for a civil penalty not
3-6 to exceed $500 for each violation. Each day a violation continues
3-7 is a separate violation for purposes of a civil penalty assessment.
3-8 (b) On request of the department, the attorney general or
3-9 the county attorney or district attorney of the county in which the
3-10 violation is alleged to have occurred shall file suit to collect
3-11 the penalty.
3-12 (c) A civil penalty collected under this section shall be
3-13 deposited in the general revenue fund. All civil penalties
3-14 recovered in suits instituted by a county or district attorney
3-15 under this section shall be divided between the state and the
3-16 county in which the county or district attorney brought suit, with
3-17 50 percent of the recovery to be paid to the general revenue fund
3-18 and 50 percent to the county.
3-19 (d) The department is entitled to appropriate injunctive
3-20 relief to prevent or abate a violation of this subchapter <chapter>
3-21 or a rule adopted under this subchapter <chapter>. On request of
3-22 the department, the attorney general or the county or district
3-23 attorney of the county in which the alleged violation is threatened
3-24 or occurring shall file suit for the injunctive relief. Venue is
3-25 in the county in which the alleged violation is threatened or is
3-26 occurring.
3-27 (e) This section is applicable only if the department
3-28 chooses to use civil remedy as opposed to criminal penalty under
3-29 Section 18.008.
3-30 Sec. 18.010. STOP-SALE ORDER. (a) If food or fiber is
3-31 being sold in violation of this subchapter <chapter> or a rule
3-32 adopted under this subchapter <chapter>, the department may issue a
3-33 written order to stop the sale of that item of food or fiber by a
3-34 person in control of the item. The person named in the order may
3-35 not sell the item until:
3-36 (1) permitted by a court under Subsection (b) of this
3-37 section; or
3-38 (2) the department determines that the sale of the
3-39 item is in compliance with this subchapter <chapter> and rules
3-40 adopted under this subchapter <chapter>.
3-41 (b) The person named in the order may bring suit in a court
3-42 in the county where the item is located. After a hearing, the
3-43 court may permit the item to be sold if the court finds the item is
3-44 not being sold in violation of this subchapter <chapter> or a
3-45 department rule issued under this subchapter <chapter>.
3-46 (c) This section does not limit the department's right to
3-47 act under another section of this subchapter <chapter>.
3-48 (Sections 18.011 to 18.050 reserved for expansion
3-49 SUBCHAPTER B. AGRICULTURAL PRODUCT STANDARDS
3-50 Sec. 18.051. PRODUCT CERTIFICATION PROGRAMS. (a) The
3-51 department may establish certification programs relating to the
3-52 protection, sale, advertising, marketing, transporting, or other
3-53 commercial handling of agricultural, horticultural, or related
3-54 products in this state if the department determines that a
3-55 certification program is warranted to:
3-56 (1) ensure genetic purity, identity, or disease or
3-57 pest resistance; or
3-58 (2) help prevent the spread of insects, other pests,
3-59 diseases, or pathogens.
3-60 (b) The department may regulate the use of the term "Texas
3-61 Certified Product," other terms that indicate product quality
3-62 standards, and symbols connected with those terms as used with a
3-63 product regulated under this subchapter.
3-64 Sec. 18.052. STANDARDS. The department by rule may develop
3-65 minimum certification standards for the administration and
3-66 enforcement of this subchapter.
3-67 Sec. 18.053. FEES. The department may set fees under this
3-68 subchapter in amounts that do not exceed the amounts reasonably
3-69 necessary to enable the department to recover the costs of
3-70 administering this subchapter.
4-1 Sec. 18.054. CIVIL PENALTY; INJUNCTION. (a) A person who
4-2 violates this subchapter or a rule adopted by the department under
4-3 this subchapter is liable for a civil penalty not to exceed $500
4-4 for each violation. Each day a violation continues is a separate
4-5 violation for purposes of assessment of a civil penalty under this
4-6 section.
4-7 (b) A civil penalty recovered by the department under this
4-8 section shall be deposited in the general revenue fund. A civil
4-9 penalty recovered in an action instituted by a local government
4-10 under this section shall be equally divided between this state and
4-11 the local government, with 50 percent of the penalty recovered paid
4-12 to the general revenue fund and the other 50 percent to the general
4-13 fund of the local government instituting the action.
4-14 (c) On request of the department, the attorney general or
4-15 the county attorney or district attorney of the county in which the
4-16 violation is alleged to have occurred shall bring an action to
4-17 collect the civil penalty.
4-18 (d) The department is entitled to appropriate injunctive
4-19 relief to prevent or abate a violation of this subchapter or a rule
4-20 adopted under this subchapter. On the request of the department,
4-21 the attorney general or the county attorney or district attorney of
4-22 the county in which the alleged violation is threatened or
4-23 occurring shall bring an action for the injunctive relief. Venue
4-24 for the action lies in the county in which the alleged violation is
4-25 threatened or occurring.
4-26 (Sections 18.055 to 18.070 reserved for expansion
4-27 SUBCHAPTER C. AGRICULTURAL PRODUCTION PROCESS
4-28 CERTIFICATION PROGRAM
4-29 Sec. 18.071. AGRICULTURAL CERTIFICATION. The department may
4-30 establish voluntary certification programs under this subchapter
4-31 relating to the protection, sale, advertising, marketing, or
4-32 related production processes in this state.
4-33 Sec. 18.072. CERTIFICATION STANDARDS. The department by
4-34 rule may develop programs establishing minimum certification
4-35 standards for production processes.
4-36 Sec. 18.073. FEES. The department may set fees under this
4-37 subchapter in amounts that do not exceed the amounts reasonably
4-38 necessary to enable the department to recover the costs of
4-39 administering this subchapter.
4-40 Sec. 18.074. ADMINISTRATIVE PENALTY. The department may
4-41 assess an administrative penalty under Section 12.020 if the
4-42 department determines that a person is falsely claiming to be
4-43 certified under this subchapter.
4-44 SECTION 2. Subsection (c), Section 12.020, Agriculture Code,
4-45 is amended to read as follows:
4-46 (c) The provisions of this code subject to this section and
4-47 the applicable penalty amounts are as follows:
4-48 Provision Maximum Penalty
4-49 Chapters 13, 14, 18, 61, 101, 102, 103, and 132 $ 500
4-50 Subchapter B, Chapter 71 $2,000
4-51 Subchapters A and C, Chapter 71
4-52 Chapters 72, 73, and 74 $5,000.
4-53 SECTION 3. This Act takes effect September 1, 1995.
4-54 SECTION 4. The importance of this legislation and the
4-55 crowded condition of the calendars in both houses create an
4-56 emergency and an imperative public necessity that the
4-57 constitutional rule requiring bills to be read on three several
4-58 days in each house be suspended, and this rule is hereby suspended.
4-59 * * * * *