BILL ANALYSIS

 

 

                                                                                                                                           H.B. 1932

                                                                                                                                      By: Swinford

                                                                                                                     Agriculture & Livestock

                                                                                                       Committee Report (Unamended)

 

 

 

BACKGROUND AND PURPOSE

 

In the early part of the twentieth century, agricultural cooperatives served small geographical regions.  New technology and new processing and distribution methods have made the geographical restrictions that were placed on agricultural cooperatives at that time unworkable and obsolete.  In the early part of the twentieth century towns had its own agricultural cooperative, in the twenty-first century, one agricultural cooperative often serves multiple towns or municipalities.  This bill would repeal provisions relating to geographical restrictions on agricultural cooperatives in order to better reflect current practices. 

 

RULEMAKING AUTHORITY

 

It is the committee's opinion that this bill does not grant additional rulemaking authority to a state officer. 

 

ANALYSIS

 

HB 1932 repeals Sections 51.006 and 51.012(a) of the Agriculture Code relating to the area of operation and membership in farmer's cooperative societies.

 

EFFECTIVE DATE

 

Upon passage, or, if the Act does not receive the necessary vote, the Act takes effect September 1, 2007