LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                        February 26, 1995



 TO:     Honorable Bill Sims, Chair             IN RE:  Senate Bill No. 251
         Committee on Natural Resources                 By: Bivins
         Senate
         Austin, Texas







FROM: John Keel, Director

In response to your request for a Fiscal Note on Senate Bill No.
251 (Relating to the handling and marketing of citrus fruits and
vegetables and to the produce recovery fund.) this office has
determined the following:

The bill would make no appropriation but could provide the legal
basis for an appropriation of funds to implement the provisions
of the bill.

The bill would amend Sections 101, 102, and 103 of the Texas
Agriculture Code relating to the Agricultural Protective Act. 
These sections relate to the licensing and  regulation of
dealers, merchants, and retailers who buy, sell, or  handle Texas
grown fruits, vegetables, nuts, and citrus, as well as to the
Produce Recovery Fund which provides protection for producers and
dealers who sell their produce on credit. 

The bill would consolidate certain licensing categories and
eliminate others.  The fee for a consolidated license would be
increased to $100 from $75.  Citrus and vegetable transporting
and buying agent card fees would also be increased.  The bill
would redirect revenue from these fees to the Produce Recovery
Fund from the General Revenue Fund .  In addition, the bill would
require that 100 percent, rather than 50 percent, of fines
assessed against citrus and vegetable dealers be deposited into
the Produce Recovery Fund.  The General Revenue Fund would lose
the 50 percent currently being deposited. 

The Produce Recovery Fund Fee would be reduced to an amount not    




to exceed $45.  This provision would result in a loss of revenue 
to the Produce Recovery Fund.

The probable fiscal implication of implementing the provisions of
the bill during each of the first  five years following passage
is estimated as follows:
     



          Fiscal   Probable Revenue    Probable Revenue 
          Year    Loss from  General     Loss to the    
                   Revenue Fund 001    Produce Recovery 
                                           Fund 974     
                                                        
          1996                $69,275            $29,085
          1997                 69,275             29,085
                                                        
          1998                 69,275             29,085
                                                        
          1999                 69,275             29,085
          2000                 69,275             29,085
                                                        
                                                        
                                                        

       Similar annual fiscal implications would continue as long as the
provisions of the bill are in effect.

No significant fiscal implication to units of local government is
anticipated.


Source:   Comptroller of Public Accounts, Department of
Agriculture
          LBB Staff: JK, JH, DF