BILL ANALYSIS

Senate Research Center                                                                                                     H.B. 2417

80R10138 SGA-F                                                                                          By: Swinford (Averitt)

Natural Resources

5/17/2007

Engrossed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

S.B. 75, 78th Legislature, Regular Session, 2003, created the fuel ethanol and biodiesel incentive program.  Currently, this program is statutorily under the jurisdiction of the Economic Development and Tourism Office (office), which is under the authority of the governor.  Since the office cannot award grants or inspect production sites, a memorandum of understanding was agreed to by the Texas Department of Agriculture (TDA) and the office to allow TDA to administer the program.

H.B. 2417 statutorily transfers the fuel ethanol and biodiesel production incentive program to TDA from the office.

RULEMAKING AUTHORITY

Rulemaking authority previously granted to the Texas Economic Development and Tourism Office is transferred to the Texas Department of Agriculture in SECTION 1 of this bill.

SECTION BY SECTION ANALYSIS

SECTION 1.  (a)  Transfers the responsibility for and management of the fuel ethanol and biodiesel production incentive program (program) under Chapter 16 (Fuel Ethanol and Biodiesel Production Incentive Program), Agriculture Code, from the Texas Economic Development and Tourism Office (office) to the Department of Agriculture (TDA).

(b)  Transfers any assets, duties, functions, and funding for the program, including money in the fuel ethanol and biodiesel production account, to TDA on the effective date of this Act.

(c)  Provides that a rule of the office related to the program continues in effect until changed by TDA.

(d)  Provides that a reference in law to "office" in Chapter 16, Agriculture Code, is a reference to TDA.

SECTION 2.  Effective date: September 1, 2007.