By:  Wise, et al. (Senate Sponsor - Staples)                      H.B. No. 1858
	(In the Senate - Received from the House April 14, 2003; 
April 15, 2003, read first time and referred to Committee on 
Natural Resources; May 21, 2003, reported adversely, with 
favorable Committee Substitute by the following vote:  Yeas 9, 
Nays 0; May 21, 2003, sent to printer.)


COMMITTEE SUBSTITUTE FOR H.B. No. 1858                                   By:  Estes

A BILL TO BE ENTITLED
AN ACT
relating to the promotion and marketing of Texas products. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 12.002, Agriculture Code, is amended to read as follows: Sec. 12.002. DEVELOPMENT OF AGRICULTURE. The department shall encourage the proper development and promotion of agriculture, horticulture, and other [related] industries that grow, process, or produce products in this state. SECTION 2. The heading of Section 12.0175, Agriculture Code, is amended to read as follows: Sec. 12.0175. GROWN OR PRODUCED IN TEXAS PROGRAM. SECTION 3. Sections 12.0175(a) and (b), Agriculture Code, are amended to read as follows: (a) The department by rule may establish programs [a program] to promote and market agricultural products and other products grown, [or] processed, or produced in the state [or products made from ingredients grown in the state]. (b) The department may charge a membership fee, as provided by department rule, for each participant in a [the] program. SECTION 4. The heading to Chapter 47, Agriculture Code, is amended to read as follows:
CHAPTER 47. TEXAS OYSTER AND SHRIMP PROGRAM
SECTION 5. Sections 47.001 and 47.002, Agriculture Code, are redesignated as Subchapter A, Chapter 47, Agriculture Code, and a heading is added to that subchapter to read as follows:
SUBCHAPTER A. TEXAS OYSTER PROGRAM
SECTION 6. Chapter 47, Agriculture Code, is amended by adding Subchapter B to read as follows:
SUBCHAPTER B. TEXAS SHRIMP MARKETING ASSISTANCE PROGRAM IN
DEPARTMENT OF AGRICULTURE
Sec. 47.051. DEFINITIONS. In this subchapter: (1) "Advisory committee" means the shrimp advisory committee. (2) "Coastal waters" means all the salt water of the state, including the portion of the Gulf of Mexico that is within the jurisdiction of the state. (3) "Program" means the Texas shrimp marketing assistance program. (4) "Shrimp marketing account" means the account in the general revenue fund established under Section 77.002(b), Parks and Wildlife Code. (5) "Texas-produced shrimp" means shrimp harvested from coastal waters and produced within the borders of the state. Sec. 47.052. PROGRAM ESTABLISHED. (a) The Texas shrimp marketing assistance program is established in the department to assist the Texas shrimp industry in promoting and marketing Texas-produced shrimp and educating the public about the Texas shrimp industry and Texas-produced shrimp. (b) The commissioner, in consultation with the advisory committee established under Section 47.053, shall adopt rules as necessary to implement the program. (c) The department may accept grants, gifts, and gratuities from any source, including any governmental entity, any private or public corporation, and any other person, in furtherance of the program. Any funds received as a grant, gift, or gratuity shall be deposited in the shrimp marketing account under Section 77.002, Parks and Wildlife Code. (d) The program shall be funded at a minimum level of $250,000 per fiscal year with funds deposited into the shrimp marketing account under Section 77.002, Parks and Wildlife Code. The department may not expend more than two percent of the annual program budget on out-of-state travel. Sec. 47.053. ADVISORY COMMITTEE. (a) The commissioner shall appoint a shrimp advisory committee to assist the commissioner in implementing the program established under this subchapter and in the expenditure of funds appropriated for the purpose of this subchapter. (b) The advisory committee shall be composed of the following 10 members: (1) two owners of commercial bay shrimp boats; (2) two owners of commercial gulf shrimp boats; (3) one member of the Texas shrimp aquaculture industry; (4) one retail fish dealer; (5) one wholesale fish dealer; (6) one person employed by an institution of higher education as a researcher or instructor specializing in the area of food science, particularly seafood; (7) one member of the seafood restaurant industry; and (8) one representative of the public. (c) The members of the advisory committee serve without compensation but may be reimbursed for expenses incurred in the direct performance of their duties on approval by the commissioner. (d) An advisory committee member serves a three-year term, with the terms of three or four members expiring August 31 of each year. The commissioner may reappoint a member to the advisory committee. (e) The members of the advisory committee shall elect a presiding officer from among the members and shall adopt rules governing the operation of the committee. The rules shall specify that five members of the advisory committee constitute a quorum sufficient to conduct the meetings and business of the committee. (f) The advisory committee shall meet as necessary, but not less frequently that once each calendar year, to provide guidance to the commissioner in establishing and implementing the program. Sec. 47.054. PROGRAM STAFF. (a) The commissioner shall employ one or more persons as employees of the department to staff the program. (b) Unless otherwise expressly provided by the legislature, the source of funding for the payment of employee salaries shall be funds generated from the program, including the 10 percent license fee increase authorized by Section 77.002, Parks and Wildlife Code, and the surcharge on license fees authorized by Section 134.014. Sec. 47.055. PROMOTION, MARKETING, AND EDUCATION. The program shall promote and advertise the Texas shrimp industry by: (1) developing and maintaining a database of Texas shrimp wholesalers that sell Texas-produced shrimp; (2) operating a toll-free telephone number to: (A) receive inquiries from persons who wish to purchase a particular type of Texas-produced shrimp; and (B) make information about the Texas shrimp industry available to the public; (3) developing a shrimp industry marketing plan to increase the consumption of Texas-produced shrimp; (4) educating the public about Texas-produced shrimp by providing publicity about the information in the program's database to the public and making the information available to the public through the department's toll-free telephone number and electronically through the Internet; (5) promoting the Texas shrimp industry; and (6) promoting and marketing, and educating consumers about, Texas-produced shrimp using any other method the commissioner determines appropriate. SECTION 7. Section 134.014, Agriculture Code, is amended to read as follows: Sec. 134.014. LICENSE FEES. (a) The department shall issue an aquaculture license or a fish farm vehicle license on completion of applicable license requirements and the payment of a fee by the applicant, as provided by department rule. (b) In addition to the fees under Subsection (a), the department shall assess and collect a surcharge on the annual license fee for aquaculture facilities producing shrimp for the purpose of funding the Texas shrimp marketing assistance program created under Subchapter B, Chapter 47. The amount of the surcharge shall be set each year, as provided by department rule, in an amount equal to 10 percent of the fees generated by the Parks and Wildlife Department under Section 77.002(c), Parks and Wildlife Code. (c) The department shall deposit at the end of each quarter, to the credit of the shrimp marketing account, the fees received under Subsection (b) for use by the department to conduct and operate the Texas shrimp marketing assistance program created under Subchapter B, Chapter 47. SECTION 8. Section 77.002, Parks and Wildlife Code, is amended to read as follows: Sec. 77.002. LICENSE FEES. (a) License fees provided in this chapter are a privilege tax on catching, buying, selling, unloading, transporting, or handling shrimp within the jurisdiction of this state. (b) The shrimp marketing account is an account in the general revenue fund to be used by the Department of Agriculture solely for the purpose of the Texas shrimp marketing assistance program established under Subchapter B, Chapter 47, Agriculture Code. The account consists of funds deposited to the account under this section and Section 134.014(b), Agriculture Code. The account is exempt from the application of Section 11.032 of this code and Section 403.095, Government Code. (c) Except as provided by Sections 47.021 and 77.049, in addition to fee increases the department is authorized to make under this code, the department shall increase by 10 percent the fee, as of September 1, 2003, for the following licenses and shall deposit the amount of the increase to the credit of the shrimp marketing account: (1) a wholesale fish dealer's license issued under Section 47.009; (2) a wholesale truck dealer's fish license issued under Section 47.010; (3) a retail fish dealer's license issued under Section 47.011; (4) a retail dealer's truck license issued under Section 47.013; (5) a commercial bay shrimp boat license issued under Section 77.031; and (6) a commercial gulf shrimp boat license issued under Section 77.035. (d) Money in the shrimp marketing account may be used only for implementing, maintaining, and conducting, including hiring program staff employees for, the Texas shrimp marketing assistance program created under Subchapter B, Chapter 47, Agriculture Code. The Department of Agriculture may allocate not more than $100,000 per fiscal year of the money in the account to cover administrative and personnel costs of the Department of Agriculture associated with the program. (e) The department shall deposit at the end of each quarter to the credit of the shrimp marketing account, fees received under Subsection (c) for use by the Department of Agriculture to conduct and operate the Texas shrimp marketing assistance program created under Subchapter B, Chapter 47, Agriculture Code. SECTION 9. Subchapter A, Chapter 47, Parks and Wildlife Code, is amended by adding Section 47.021 to read as follows: Sec. 47.021. LICENSE FEES. (a) Fees for licenses issued under Sections 47.009, 47.011, and 47.013 may not be increased by more than 10 percent of the amount of the fee set by the commission and effective on September 1, 2002. (b) This section expires September 1, 2005. SECTION 10. Subchapter C, Chapter 77, Parks and Wildlife Code, is amended by adding Section 77.049 to read as follows: Sec. 77.049. LICENSE FEES. (a) Fees for licenses issued under Sections 77.031 and 77.035 may not be increased by more than 10 percent of the amount of the fee set by the commission and effective on September 1, 2002. (b) This section expires September 1, 2005. SECTION 11. The Parks and Wildlife Department shall transfer a minimum amount of $250,000 each year of the biennium to the shrimp marketing account for use by the Department of Agriculture to conduct and operate the Texas shrimp marketing assistance program created under Subchapter B, Chapter 47, Agriculture Code, as added by this Act. All unexpended balances remaining from appropriations for fiscal year 2004 may be carried forward to fiscal year 2005. SECTION 12. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2003.
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