C.S.H.B. 2012 78(R)    BILL ANALYSIS


C.S.H.B. 2012
By: Hardcastle
Agriculture & Livestock
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

The Texas Department of Agriculture's (TDA) Organic Certification Program
began as a voluntary certification program in June 1988.  The program
allows Texas farmers to diversify their operations to capture a larger
share of a growing premium market and helps to ensure the authenticity of
organic food and fiber.  Organic certification by the state provides
credibility and impartiality in the organic certification process.  

The U.S. Department of Agriculture's (USDA) National Organic Standards,
effective April 21, 2001, establishes a uniform standard for organic
agricultural products across the United States.  These federal rules now
preempt the Texas Organic Standards.  The National Organic Standards allow
for exemptions and exclusions from the certification requirement for
certain businesses such as small farms and retailers.  Businesses that are
exempt or excluded from certification under the National Organic Standards
can no longer be required to be certified under a state program. 

TDA is now accredited as an organic certification agent under the new USDA
National Organic Program, with the condition that the agency make
additional modifications to our regulations to be in full compliance with
the National Organic Standards.  The Texas Organic Statute must be amended
in order to allow TDA's Organic Program to adopt regulations that will be
in compliance with the federal regulations. 


RULEMAKING AUTHORITY

It is the Committee's opinion that rulemaking authority is expressly
granted to the Department of Agriculture in the following SECTIONS: 

SECTION 2 (Sec. 18.002) (Agriculture Code) authorizes TDA to adopt rules
to create and administer an organic standards program and may adopt
standards related to organic agriculture products. 

SECTION 3 (Sec. 18.003) (Agriculture Code) authorizes TDA to adopt rules
requiring certified organic entities to submit an annual report. 

SECTION 5 (Sec. 18.004) (Agriculture Code) authorizes TDA to adopt rules
establishing an organic registration program. 

SECTION 6 (Sec. 18.006) (Agriculture Code) authorizes TDA to adopt rules
requiring a fee for certifications and registrations. 

SECTION 8 (Sec. 18.0075) (Agriculture Code) authorizes TDA to adopt rules
for administrative procedures of penalties. 

SECTION 11 (Sec 18.011) (Agriculture Code) authorizes TDA, by rule, to
exempt certain information from disclosure as necessary to comply with the
national organic production program. 




 ANALYSIS

C.S.H.B. 2012 authorizes the Texas Department of Agriculture (TDA) to
adopt rules to create and administer an organic standards program and may
adopt standards related to organic agriculture products.  The bill
provides that a program must be consistent with the National Organics
Program and authorizes TDA, by agreement with USDA, to certify organic
entities and enforce state and federal standards. 

The bill authorizes TDA to certify organic producers, processors,
distributors and handlers and that those entities may apply for
certification by submitting an application, an organic plan, and a fee.
The bill authorizes TDA to require an annual report and an annual fee.  

SECTION 4 renames heading "REGISTRATION PROGRAM".

The bill authorizes TDA to establish a registration program for organic
producers, processors, distributors, handlers, and advertisers.  The bill
authorizes TDA to establish fees and late fees for organic certification
and/or registration. 

The bill authorizes TDA to adopt administrative procedures for the
assessment of penalties for violations.  It requires written notice of the
department's intent to assess a penalty and provides a timeline for
violator response.   In the absence of department administrative
procedures, Chapter 2001, Government Code, applies to the assessment of
penalties or sanctions.  The bill changes civil penalty from a maximum of
$500 to a maximum $10,000 to conform with the National Organic Program
penalty.  The bill authorizes the department to stop sale of a product in
violation of department rules.  The bill provides that information
collected, assembled or maintained by TDA is public information, unless
nondisclosure complies with the National Organic Program.  The bill
repeals outdated state organic program provisions. 

EFFECTIVE DATE

Upon passage, or, if the Act does not receive the necessary vote, the Act
takes effect September 1, 2003. 

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B. 2012  modifies the original by changing the title of Section
18.004, Agriculture Code, to "Registration Program" and retaining
subsection (a) of the Section.  The substitute adds a new Section
authorizing TDA to establish a registration program for organic producers,
processors, distributors, handlers, and advertisers. The substitute
clarifies that TDA may establish differing fee amounts for each authorized
fee.  The subtitute adds a subsection providing that in the absence of
adopted administrative procedures for penalties, Chapter 12 and Chapter
2001, Government Code, apply to the assessment of administrative penalties
or license sanctions.