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  81R3037 BEF/JAM-F
 
  By: Flynn H.B. No. 3236
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the continuation and functions of the Department of
  Agriculture and the Prescribed Burning Board and the abolition of
  the Texas-Israel Exchange Fund Board.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
  ARTICLE 1. TEXAS AGRICULTURAL FINANCE AUTHORITY
         SECTION 1.01.  Sections 44.001(1) and (2), Agriculture Code,
  are amended to read as follows:
               (1)  "Eligible lending institution" means a financial
  institution that makes commercial loans, is either a depository of
  state funds or an institution of the Farm Credit System
  headquartered in this state, and agrees to participate in the
  interest rate reduction [linked deposit] program and to provide
  collateral equal to the amount of linked deposits placed with it.
               (2)  "Eligible borrower" means a person who proposes to
  use the proceeds of a loan under this chapter in a manner that will
  help accomplish the state's goal of fostering the creation and
  expansion of enterprises based on agriculture in this state [is in
  the business or entering the business of:
                     [(A)     processing and marketing agricultural crops
  in this state;
                     [(B)     producing alternative agricultural crops in
  this state;
                     [(C)     producing agricultural crops in this state
  the production of which has declined because of natural disasters;
                     [(D)     producing agricultural crops in this state
  using water conservation equipment for agricultural production
  purposes; or
                     [(E)     providing nonagricultural goods or services
  that provide an economic benefit to a municipality or county in a
  rural area].
         SECTION 1.02.  The heading to Section 44.007, Agriculture
  Code, is amended to read as follows:
         Sec. 44.007.  INTEREST RATE REDUCTION [LINKED DEPOSIT]
  PROGRAM.
         SECTION 1.03.  Sections 44.007(a), (c), (d), (k), and (l),
  Agriculture Code, are amended to read as follows:
         (a)  The board shall establish an interest rate reduction [a
  linked deposit] program to foster the creation and expansion of
  enterprises based on agriculture in this state[:
               [(1)     encourage commercial lending for the enhanced
  production, processing, and marketing of certain agricultural
  crops;
               [(2)     encourage the development or expansion of
  businesses in rural areas of this state; and
               [(3)     finance water conservation projects or equipment
  for agricultural production purposes].
         (c)  The board shall promulgate rules for the loan portion of
  the interest rate reduction [linked deposit] program. [The rules
  must include:
               [(1)     a list of the categories of crops customarily
  grown in Texas, with consideration given to the Texas Agricultural
  Statistics Service information available and relevant to this
  determination;
               [(2)     a list of crops that are alternative agricultural
  crops, with consideration given to the Texas Agricultural
  Statistics Service information available and relevant to this
  determination;
               [(3)     identification of criteria for a project eligible
  for natural disaster assistance; and
               [(4)     identification of projects and types of equipment
  considered as water conservation projects or equipment for
  agricultural production purposes.]
         (d)  In order to participate in the interest rate reduction
  [linked deposit] program, an eligible lending institution may
  solicit loan applications from eligible borrowers.
         (k)  The board may adopt rules that create a procedure for
  determining priorities for loans granted under this chapter. Each
  rule adopted must state the policy objective of the rule. [The
  policy objectives of the rules may include preferences to:
               [(1)     achieve adequate geographic distribution of
  loans;
               [(2)  assist certain industries;
               [(3)     encourage certain practices including water
  conservation; and
               [(4)     encourage value-added processing of agricultural
  products.]
         (l)  A lending institution is not ineligible to participate
  in the interest rate reduction [linked deposit] program solely
  because a member of the board is also an officer, director, or
  employee of the lending institution, provided that a board member
  shall recuse himself or herself from any action taken by the board
  on an application involving a lending institution by which the
  board member is employed or for which the board member serves as an
  officer or director.
         SECTION 1.04.  Sections 44.010(a) and (b), Agriculture Code,
  are amended to read as follows:
         (a)  At any one time, not more than $30 million[, $10 million
  of which may be used only to finance water conservation projects and
  $5 million of which may be used only to finance the economic
  development of businesses in rural areas,] may be placed in linked
  deposits under this chapter.
         (b)  The maximum amount of a loan under this chapter [to
  process and market Texas agricultural crops] is $500,000. [The
  maximum amount of a loan under this chapter to produce alternative
  agricultural crops in this state is $250,000. The maximum amount of
  a loan under this chapter to finance water conservation projects or
  equipment for agricultural production purposes is $250,000. The
  maximum amount of a loan under this chapter to finance production of
  a crop declared eligible for natural disaster relief, as defined by
  board rule, is $250,000. The maximum amount of a loan under this
  chapter to finance a business in a rural area is $250,000.]
         SECTION 1.05.  Section 58.012, Agriculture Code, is amended
  by amending Subsections (a), (b), and (c) and adding Subsection (g)
  to read as follows:
         (a)  The authority is governed by a board of directors
  composed of the commissioner of agriculture, the director of the
  Institute for International Agribusiness Studies at Prairie View
  A&M University, and nine [seven] members appointed by the
  commissioner [governor with the advice and consent of the senate].
  Members of the board must be appointed in the numbers specified and
  from the following categories:
               (1)  one person who is an elected or appointed official
  of a municipality or county;
               (2)  four persons who are knowledgeable about
  agricultural lending practices;
               (3)  one person who is a representative of agricultural
  businesses; [and]
               (4)  one person who is a representative of agriculture
  related entities, including rural chambers of commerce,
  foundations, trade associations, institutions of higher education,
  or other entities involved in agricultural matters; and
               (5)  two persons who represent young farmers and the
  interests of young farmers.
         (b)  The appointed members of the board serve staggered terms
  of two years, with the terms of four [three] members expiring on
  January 1 of each even-numbered year and the terms of five [four]
  members expiring on January 1 of each odd-numbered year.
         (c)  Any vacancy occurring in an appointed position on the
  board shall be filled by the commissioner [governor] for the
  unexpired term.
         (g)  Notwithstanding Subsection (f), age may be considered
  by the commissioner in making appointments under Subsection (a)(5).
         SECTION 1.06.  Section 58.013(a), Agriculture Code, is
  amended to read as follows:
         (a)  The commissioner [governor] shall designate a member of
  the board as the chairman of the board to serve in that capacity at
  the pleasure of the commissioner [governor]. The board shall elect
  a vice-chairman biennially from its members and shall elect a
  secretary, a treasurer, and other officers it considers necessary.
         SECTION 1.07.  Section 58.0176(a), Agriculture Code, is
  amended to read as follows:
         (a)  Before a member of the board may assume the member's
  duties [and before the member may be confirmed by the senate], the
  member must complete at least one course of the training program
  established under this section.
         SECTION 1.08.  Sections 58.023(c) and (d), Agriculture Code,
  are amended to read as follows:
         (c)  Eligible agricultural businesses or lenders
  participating in the authority's programs shall pay the costs of
  applying for, participating in, and administering and servicing the
  program, in amounts the board considers reasonable and necessary.
  The board shall charge an administrative fee for guaranteeing a
  loan under Subchapter E that may not be less than one percent of the
  amount of the guaranteed loan. Any costs not paid by the eligible
  agricultural businesses or lenders shall be paid from the funds of
  the authority, including those funds established from bond
  proceeds.
         (d)  The board by rule shall adopt an agreement to be used
  between a lender and an approved applicant under which the
  authority makes a payment from the Texas agricultural fund for the
  purpose of providing a reduced interest rate on a loan guaranteed to
  a borrower [under this subchapter]. The agreement must require the
  borrower to use the proceeds of the loan for the purposes of the
  program under which the payment is made. The board shall adopt
  rules to implement this subsection.
         SECTION 1.09.  Subchapter D, Chapter 58, Agriculture Code,
  is amended by adding Section 58.041 to read as follows:
         Sec. 58.041.  ISSUANCE OF DEBT BY TEXAS PUBLIC FINANCE
  AUTHORITY. (a) In this section, "debt instrument" means a note,
  debenture, bond, or other evidence of indebtedness.
         (b)  The Texas Public Finance Authority has the exclusive
  authority to act on behalf of the authority in issuing debt
  instruments authorized to be issued by the authority. A reference
  in law to a debt instrument issued by the authority, in the context
  of a debt instrument issued on or after September 1, 2009, means a
  debt instrument issued by the Texas Public Finance Authority on
  behalf of the authority.
         (c)  Notwithstanding Section 58.034(e), the authority shall
  pay all costs incurred by the Texas Public Finance Authority for
  issuing debt instruments on behalf of the authority and associated
  fees and expenses.
         (d)  When the board authorizes the issuance of debt
  instruments to fund a loan, the authority shall notify the Texas
  Public Finance Authority of the amount of the loan and the recipient
  of the loan and request the Texas Public Finance Authority to issue
  debt instruments in an amount necessary to fund the loan. The
  authority and the Texas Public Finance Authority shall determine
  the amount and time of a debt instrument issue to best provide funds
  for one or multiple loans.
         (e)  The Texas Public Finance Authority, at the request of
  the authority, may issue debt instruments to provide money to the
  Texas agricultural fund.
         (f)  The Texas Public Finance Authority may sell debt
  instruments in any manner it determines to be in the best interest
  of the authority, except that it may not sell a debt instrument that
  has not been approved by the attorney general and registered with
  the comptroller.
         (g)  The authority, in consultation with the Texas Public
  Finance Authority, shall adopt rules containing criteria for
  evaluating the creditworthiness of loan applicants and the
  financial feasibility of projects to be funded with debt
  instruments issued by the Texas Public Finance Authority on behalf
  of the authority.
         (h)  The Texas Public Finance Authority may enter into a
  credit agreement for a debt instrument issued by the Texas Public
  Finance Authority on behalf of the authority for a period and on
  conditions approved by the Texas Public Finance Authority.
         (i)  This subsection applies only in relation to general
  obligation debt instruments. To the extent other sources of revenue
  available for payment of the authority's debts are insufficient and
  in accordance with the Texas Constitution, general revenue is to be
  appropriated to the Texas Public Finance Authority in an amount
  determined by the Texas Public Finance Authority to be necessary to
  pay the principal, premium if any, and interest on general
  obligation debt instruments issued by the Texas Public Finance
  Authority on behalf of the authority, and that amount shall be
  specified in the biennial appropriations acts.
         SECTION 1.10.  The heading to Subchapter E, Chapter 58,
  Agriculture Code, is amended to read as follows:
  SUBCHAPTER E.  AGRICULTURAL [YOUNG FARMER] LOAN GUARANTEE PROGRAM
         SECTION 1.11.  Section 58.051(2), Agriculture Code, is
  amended to read as follows:
               (2)  "Eligible applicant" means a person applying for a
  loan guarantee under this subchapter who[:
                     [(A)     is at least 18 years of age but younger than
  40 years of age; and
                     [(B)]  complies with the application procedures
  prescribed by this subchapter.
         SECTION 1.12.  The heading to Section 58.052, Agriculture
  Code, is amended to read as follows:
         Sec. 58.052.  AGRICULTURAL [YOUNG FARMER] LOAN GUARANTEE
  PROGRAM.
         SECTION 1.13.  Section 58.052, Agriculture Code, is amended
  by amending Subsections (b), (c), and (e) and adding Subsection (f)
  to read as follows:
         (b)  The board, either directly or through authority
  delegated to the commissioner, may grant to an eligible applicant a
  guarantee of a loan made by a commercial lender for the purposes
  prescribed by this subchapter. The board by rule shall establish
  tiered loan guarantee limits. To be eligible to be guaranteed under
  this subchapter, a loan with a term of more than one year must have a
  fixed interest rate [guarantee amount may not exceed the lesser of
  $250,000 or 90 percent of the loan amount].
         (c)  The aggregate amount guaranteed under this subchapter
  may not exceed the lesser of three-fourths of [twice] the amount
  contained in the [young farmer loan guarantee account within the]
  Texas agricultural fund or $12 million.
         (e)  The board shall adopt an agreement, to be used between a
  commercial lender and an approved eligible applicant, under which
  the program provides a payment from money in the Texas agricultural
  fund [young farmer loan guarantee account] for the purpose of
  providing a reduced interest rate on a loan guaranteed to a borrower
  under this subchapter. The board shall adopt rules to implement
  this subsection. The maximum rate reduction under this subsection
  per year for each borrower may [shall] not exceed three percentage
  points or an amount that results in $10,000 in interest savings for
  the borrower for the year.
         (f)  The board by rule shall establish a certified lender
  program under which the board may certify commercial lenders to
  participate in the agricultural loan guarantee program in order to
  expedite the processing of loan guarantee applications by the
  board.
         SECTION 1.14.  Section 58.056, Agriculture Code, is amended
  to read as follows:
         Sec. 58.056.  MONEY FOR LOAN GUARANTEE PROGRAM. The
  authority may accept gifts and grants of money from the federal
  government, local governments, private corporations, or other
  persons for use in the agricultural [young farmer] loan guarantee
  program. The legislature may appropriate money for the program.
         SECTION 1.15.  Sections 58.057(b), (c), and (d), Agriculture
  Code, are transferred to Section 58.032, Agriculture Code,
  relettered as Subsections (g), (h), and (i) of that section, and
  amended to read as follows:
         (g) [(b)]  The fund includes [account consists of funds and
  transfers made to the account,] grants and donations made for the
  purposes of the programs administered by the Texas Agricultural
  Finance Authority [the young farmer loan guarantee program, income
  earned on money in the account,] and any other money received under
  this chapter [subchapter]. Notwithstanding Section 404.071,
  Government Code, income and interest earned on money in the fund
  [account] shall be deposited to the credit of the fund [account].
  [At the end of each state fiscal year the authority shall transfer
  to the general credit of the Texas agricultural fund any interest
  earned on the account that remains after payment of any
  administrative expenses of the program.] The fund [account] is
  exempt from the application of Section 403.095, Government Code.
         (h) [(c)]  The board may spend not more than $100,000 during
  each fiscal year from income earned on the fund [account] and from
  application fees collected by the authority under Section 58.053 to
  pay the costs of administering the program.
         (i) [(d)]  The board shall attempt to administer the fund in
  a manner that makes private donations to the fund an eligible
  itemized deduction for federal income taxation purposes.
         SECTION 1.16.  Chapter 58, Agriculture Code, is amended by
  adding Subchapter F to read as follows:
  SUBCHAPTER F. YOUNG FARMER INTEREST RATE REDUCTION PROGRAM
         Sec. 58.071.  DEFINITIONS. In this subchapter:
               (1)  "Eligible lending institution" means a financial
  institution that makes commercial loans, is either a depository of
  state funds or an institution of the Farm Credit System
  headquartered in this state, and agrees to participate in the young
  farmer interest rate reduction program and to provide collateral
  equal to the amount of linked deposits placed with it.
               (2)  "Linked deposit" means a time deposit governed by
  a written deposit agreement between the state and an eligible
  lending institution that provides:
                     (A)  that the eligible lending institution pay
  interest on the deposit at a rate that is not less than the greater
  of:
                           (i)  the current market rate of a United
  States treasury bill or note of comparable maturity minus three
  percent; or
                           (ii)  0.5 percent;
                     (B)  that the state not withdraw any part of the
  deposit before the expiration of a period set by a written advance
  notice of the intention to withdraw; and
                     (C)  that the eligible lending institution agree
  to lend the value of the deposit to an eligible borrower at a
  maximum rate that is the linked deposit rate plus a maximum of four
  percent.
         Sec. 58.072.  YOUNG FARMER INTEREST RATE REDUCTION PROGRAM.
  (a)  The board shall establish a young farmer interest rate
  reduction program to promote the creation and expansion of
  agricultural businesses by young people in this state.
         (b)  To be eligible to participate in the young farmer
  interest rate reduction program, an applicant must be at least 18
  years of age but younger than 45 years of age.
         (c)  The board shall approve or disapprove any and all
  applications under this subchapter, provided that the board may
  delegate this authority to the commissioner.
         (d)  The board shall adopt rules for the loan portion of the
  young farmer interest rate reduction program.
         (e)  In order to participate in the young farmer interest
  rate reduction program, an eligible lending institution may solicit
  loan applications from eligible applicants.
         (f)  After reviewing an application and determining that the
  applicant is eligible and creditworthy, the eligible lending
  institution shall send the application for a linked deposit loan to
  the administrator of the authority.
         (g)  The eligible lending institution shall certify the
  interest rate applicable to the specific eligible applicant and
  attach it to the application sent to the administrator of the
  authority.
         (h)  After reviewing each loan application under this
  subchapter, the board or the commissioner shall recommend to the
  comptroller the acceptance or rejection of the application.
         (i)  After acceptance of the application, the comptroller
  shall place a linked deposit with the applicable eligible lending
  institution for the period the comptroller considers appropriate.
  The comptroller may not place a deposit for a period extending
  beyond the state fiscal biennium in which it is placed. Subject to
  the limitation described by Section 58.075, the comptroller may
  place time deposits at an interest rate described by Section
  58.071(2).
         (j)  Before the placing of a linked deposit, the eligible
  lending institution and the state, represented by the comptroller,
  shall enter into a written deposit agreement containing the
  conditions on which the linked deposit is made.
         (k)  If a lending institution holding linked deposits ceases
  to be either a state depository or a Farm Credit System institution
  headquartered in this state, the comptroller may withdraw the
  linked deposits.
         (l)  The board may adopt rules that create a procedure for
  determining priorities for loans granted under this subchapter.
  Each rule adopted must state the policy objective of the rule.
         (m)  A lending institution is not ineligible to participate
  in the young farmer interest rate reduction program solely because
  a member of the board is also an officer, director, or employee of
  the lending institution, provided that a board member shall recuse
  himself or herself from any action taken by the board on an
  application involving a lending institution by which the board
  member is employed or for which the board member serves as an
  officer or director.
         (n)  Linked deposits under the young farmer interest rate
  reduction program shall be funded from the Texas agricultural fund.
         Sec. 58.073.  COMPLIANCE. (a)  On accepting a linked
  deposit, an eligible lending institution must loan money to
  eligible applicants in accordance with the deposit agreement and
  this subchapter. The eligible lending institution shall forward a
  compliance report to the board.
         (b)  The board shall monitor compliance with this subchapter
  and inform the comptroller of noncompliance on the part of an
  eligible lending institution.
         Sec. 58.074.  STATE LIABILITY PROHIBITED. The state is not
  liable to an eligible lending institution for payment of the
  principal, interest, or any late charges on a loan made under this
  subchapter. A delay in payment or default on a loan by a borrower
  does not affect the validity of the deposit agreement. Linked
  deposits are not an extension of the state's credit within the
  meaning of any state constitutional prohibition.
         Sec. 58.075.  LIMITATIONS IN PROGRAM. (a)  At any one time,
  not more than one-fourth of the amount of money in the Texas
  agricultural fund may be placed in linked deposits under this
  subchapter.
         (b)  The maximum amount of a loan under this subchapter is
  $500,000.
         (c)  A loan granted under this subchapter may be used for any
  agriculture-related operating expense, including the purchase or
  lease of land or fixed assets acquisition or improvement, as
  identified in the application. 
         SECTION 1.17.  Chapter 58, Agriculture Code, is amended by
  adding Subchapter G to read as follows:
  SUBCHAPTER G. YOUNG FARMER GRANT PROGRAM
         Sec. 58.091.  GRANT PROGRAM.  (a)  The authority shall
  administer a young farmer grant program.  A grant must be for the
  purpose of fostering the creation and expansion of agricultural
  businesses by young people in this state.
         (b)  The board shall adopt rules governing the operation of
  the program and selection criteria for grant recipients.
         (c)  The board shall select grant recipients.
         Sec. 58.092.  ELIGIBILITY.  To be eligible to receive a grant
  under this subchapter, a person must:
               (1)  be an agricultural producer who is at least 18
  years of age but younger than 45 years of age; and
               (2)  provide matching funds in the amount of not less
  than one dollar for each dollar of grant money received.
         Sec. 58.093.  AMOUNT OF GRANTS.  A grant under the young
  farmer grant program may not be less than $5,000 or more than
  $20,000.
         Sec. 58.094.  APPLICATIONS.  (a)  The authority shall accept
  grant applications during two application periods each year.
         (b)  Applicants shall submit an application on a form
  approved by the board or the board's designee.
         Sec. 58.095.  FUNDING.  The source of funds for the young
  farmer grant program is the Texas agricultural fund.
         SECTION 1.18.  Section 1232.101, Government Code, is amended
  to read as follows:
         Sec. 1232.101.  ISSUANCE OF BONDS FOR CERTAIN STATE
  AGENCIES.  With respect to all bonds authorized to be issued by or
  on behalf of the adjutant general's department, Parks and Wildlife
  Department, Texas Agricultural Finance Authority, Texas Low-Level
  Radioactive Waste Disposal Authority, Stephen F. Austin State
  University, Midwestern State University, and Texas Southern
  University, the authority has the exclusive authority to act on
  behalf of those entities in issuing bonds on their behalf.  In
  connection with those issuances and with the issuance of refunding
  bonds on behalf of those entities, the authority is subject to all
  rights, duties, and conditions surrounding issuance previously
  applicable to the issuing entity under the statute authorizing the
  issuance.  A reference in an authorizing statute to the entity on
  whose behalf the bonds are being issued applies equally to the
  authority in its capacity as issuer on behalf of the entity.
         SECTION 1.19.  Section 1372.028(d), Government Code, is
  amended to read as follows:
         (d)  An issuer is not required to provide the statement
  required by Subsection (c)(3)(F) if the issuer:
               (1)  is an issuer of a state-voted issue;
               (2)  is the Texas Department of Housing and Community
  Affairs[, the Texas Agricultural Finance Authority,] or the Texas
  State Affordable Housing Corporation; or
               (3)  provides evidence that one or more binding
  contracts have been entered into, or other evidence acceptable to
  the board as described by program rule, to spend the unexpended
  proceeds by the later of:
                     (A)  12 months after the date the board receives
  the application; or
                     (B)  December 31 of the program year for which the
  application is filed.
         SECTION 1.20.  Section 502.174(b), Transportation Code, is
  amended to read as follows:
         (b)  The county assessor-collector shall send an assessment
  collected under this section to the comptroller, at the time and in
  the manner prescribed by the Texas Agricultural Finance Authority,
  for deposit in the Texas agricultural fund [to the credit of the
  young farmer loan guarantee account].
         SECTION 1.21.  The following provisions are repealed:
               (1)  Section 44.001(3), Agriculture Code;
               (2)  Section 58.0173(c), Agriculture Code;
               (3)  Section 58.0211(b), Agriculture Code;
               (4)  Sections 58.057(a) and (e), Agriculture Code; and
               (5)  Section 1372.0235, Government Code.
         SECTION 1.22.  On the effective date of this Act:
               (1)  the young farmer loan guarantee program under
  Subchapter E, Chapter 58, Agriculture Code, as that subchapter
  existed before amendment by this Act, is abolished; and
               (2)  the agricultural loan guarantee program under
  Subchapter E, Chapter 58, Agriculture Code, as amended by this Act,
  is established.
         SECTION 1.23.  On the effective date of this Act, the young
  farmer loan guarantee account is abolished. All money in the
  account on that date remains in the Texas agricultural fund. All
  deposits purportedly made to the account on or after that date shall
  be deposited in the Texas agricultural fund. All references in law
  or rule to the young farmer loan guarantee account mean the Texas
  agricultural fund.
         SECTION 1.24.  (a)  As soon as practicable on or after the
  effective date of this Act, the commissioner of agriculture shall
  appoint two members to the board of directors of the Texas
  Agricultural Finance Authority who represent young farmers and the
  interests of young farmers. In appointing those members, the
  commissioner shall appoint one person to a term expiring January 1,
  2010, and one to a term expiring January 1, 2011.
         (b)  The changes in law made by this Act by the amendment of
  Section 58.012, Agriculture Code, do not affect the entitlement of
  a member of the board of directors of the Texas Agricultural Finance
  Authority serving on the board immediately before the effective
  date of this Act to continue to serve on the board and carry out the
  board's functions for the remainder of the member's term. The
  changes in law apply only to a member appointed on or after the
  effective date of this Act. This Act does not prohibit a person who
  is a member of the board on the effective date of this Act from being
  reappointed to the board if the person has the qualifications
  required for a member under Section 58.012, Agriculture Code, as
  amended by this Act.
  ARTICLE 2. PRESCRIBED BURNING BOARD
         SECTION 2.01.  Section 153.001, Natural Resources Code, is
  amended to read as follows:
         Sec. 153.001.  DEFINITIONS [DEFINITION].  In this chapter:
               (1)  "Board" [, "board"] means the Prescribed Burning
  Board.
               (2)  "Department" means the Department of Agriculture.
         SECTION 2.02.  Subchapter A, Chapter 153, Natural Resources
  Code, is amended by adding Section 153.004 to read as follows:
         Sec. 153.004. PRESCRIBED BURNING IN STATE OF EMERGENCY OR
  DISASTER. A certified and insured prescribed burn manager may
  conduct a burn in a county in which a state of emergency or state of
  disaster has been declared by the governor or the president of the
  United States, unless the declaration expressly prohibits all
  outdoor burning.
         SECTION 2.03.  Section 153.041(a), Natural Resources Code,
  is amended to read as follows:
         (a)  The Prescribed Burning Board is established within the
  department [Department of Agriculture] and is composed of:
               (1)  an employee of the Texas Forest Service designated
  by the director of the Texas Forest Service;
               (2)  an employee of the Parks and Wildlife Department
  appointed by the executive director of the Parks and Wildlife
  Department;
               (3)  an employee of the Texas Commission on
  Environmental Quality [Natural Resource Conservation Commission]
  appointed by the executive director of the Texas Commission on
  Environmental Quality [Natural Resource Conservation Commission];
               (4)  an employee of the Texas AgriLife [Agricultural]
  Extension Service appointed by the executive director of the Texas
  AgriLife [Agricultural] Extension Service;
               (5)  an employee of [the] Texas AgriLife Research 
  [Agricultural Experiment Station] appointed by the director of
  [the] Texas AgriLife Research [Agricultural Experiment Station];
               (6)  an employee of the Texas Tech University Range and
  Wildlife Department appointed by the dean of the Texas Tech
  University College of Agricultural Sciences and Natural Resources;
               (7)  an employee of the department [Department of
  Agriculture] appointed by the commissioner of agriculture;
               (8)  an employee of the State Soil and Water
  Conservation Board appointed by the executive director of the State
  Soil and Water Conservation Board; and
               (9)  five persons who are:
                     (A)  owners of agricultural land, as that term is
  defined by Section 153.081;
                     (B)  self-employed or employed by a person other
  than a governmental entity; and
                     (C)  appointed by the commissioner of
  agriculture.
         SECTION 2.04.  Section 153.044, Natural Resources Code, is
  amended to read as follows:
         Sec. 153.044.  SUNSET PROVISION.  The Prescribed Burning
  Board is subject to Chapter 325, Government Code (Texas Sunset
  Act). The board shall be reviewed during the period in which the
  Department of Agriculture is reviewed [Unless continued in
  existence as provided by that chapter, the board is abolished and
  this chapter expires September 1, 2009].
         SECTION 2.05.  Section 153.046, Natural Resources Code, is
  amended to read as follows:
         Sec. 153.046.  DUTIES.  The board shall:
               (1)  establish standards for prescribed burning;
               (2)  develop a comprehensive training curriculum for
  prescribed burn managers;
               (3)  establish standards for certification,
  recertification, and training for prescribed burn managers;
               (4)  establish minimum education and professional
  requirements for instructors for the approved curriculum; and
               (5)  establish minimum insurance requirements for
  certified and insured prescribed burn managers.
         SECTION 2.06.  Section 153.047, Natural Resources Code, is
  amended to read as follows:
         Sec. 153.047.  PRESCRIBED BURNING STANDARDS.  Minimum
  standards established by the board for prescribed burning must:
               (1)  ensure that prescribed burning is the controlled
  application of fire to naturally occurring or naturalized
  vegetative fuels under specified environmental conditions in
  accordance with a written prescription plan:
                     (A)  designed to confine the fire to a
  predetermined area and to accomplish planned land management
  objectives; and
                     (B)  that conforms to the standards established
  under this section;
               (2)  require that at least one certified and insured
  prescribed burn manager is present on site during the conduct of the
  prescribed burn;
               (3)  establish appropriate guidelines for size of
  burning crews sufficient to:
                     (A)  conduct the burn in accordance with the
  prescription plan; and
                     (B)  provide adequate protection for the safety of
  persons and of adjacent property;
               (4)  include standards for notification to adjacent
  land owners, the Texas Commission on Environmental Quality [Natural
  Resource Conservation Commission], and local fire authorities; and
               (5)  include minimum insurance requirements for
  certified and insured prescribed burn managers.
         SECTION 2.07.  Sections 153.048(c) and (e), Natural
  Resources Code, are amended to read as follows:
         (c)  The certification is for two [five] years.
         (e)  The board shall maintain a register of certified and
  insured prescribed burn managers and dates of completion of initial
  and continuing training.
         SECTION 2.08.  Sections 153.081(a) and (b), Natural
  Resources Code, are amended to read as follows:
         (a)  Subject to Section 153.082, an owner, lessee, or
  occupant of agricultural land is not liable for property damage or
  for injury or death to persons caused by or resulting from
  prescribed burning conducted on the land owned by, leased by, or
  occupied by the person if the prescribed burning is conducted under
  the supervision of a certified and insured prescribed burn manager.
         (b)  This section does not apply to an owner, lessee, or
  occupant of agricultural land who is a certified and insured
  prescribed burn manager and conducts a burn on that land.
         SECTION 2.09.  Section 153.082, Natural Resources Code, is
  amended to read as follows:
         Sec. 153.082.  INSURANCE. The limitation on liability under
  Section 153.081 does not apply to an owner, lessee, or occupant of
  agricultural land unless the certified and insured prescribed burn
  manager conducting a burn on the land has liability insurance
  coverage:
               (1)  of at least $1 million for each single occurrence
  of bodily injury or death, or injury to or destruction of property;
  and
               (2)  with a policy period minimum aggregate limit of at
  least $2 million.
         SECTION 2.10.  Chapter 153, Natural Resources Code, is
  amended by adding Subchapter D to read as follows:
  SUBCHAPTER D. COMPLAINTS, ENFORCEMENT, AND PENALTIES
         Sec. 153.101.  COMPLAINTS.  The department shall receive and
  process complaints concerning prescribed burn managers in the
  manner described by Section 12.026, Agriculture Code, and rules
  adopted under that section.
         Sec. 153.102.  DISCIPLINARY ACTION; SCHEDULE OF SANCTIONS.
  (a)  The department may impose an administrative sanction,
  including an administrative penalty, as provided by Sections
  12.020, 12.0201, 12.0202, and 12.0261, Agriculture Code, for a
  violation of this chapter.
         (b)  The department by rule shall adopt a schedule of the
  disciplinary sanctions that the department may impose under this
  chapter.  In adopting the schedule of sanctions, the department
  shall ensure that the severity of the sanction imposed is
  appropriate to the type of violation or conduct that is the basis
  for disciplinary action.
         (c)  In determining the appropriate disciplinary action,
  including the amount of any administrative penalty to assess, the
  department shall consider:
               (1)  whether the person:
                     (A)  is being disciplined for multiple violations
  of either this chapter or a rule or order adopted under this
  chapter; or
                     (B)  has previously been the subject of
  disciplinary action by the department under this chapter and has
  previously complied with department rules and this chapter;
               (2)  the seriousness of the violation;
               (3)  the threat to public safety; and
               (4)  any mitigating factors.
         Sec. 153.103.  INJUNCTION.  (a)  The department may apply to
  a district court in any county for an injunction to restrain a
  person who is not a certified and insured prescribed burn manager
  from representing that the person is a certified and insured
  prescribed burn manager.
         (b)  At the request of the department, the attorney general
  shall initiate and conduct an action in a district court in the
  state's name to obtain an injunction under this section.
         Sec. 153.104.  EMERGENCY SUSPENSION.  (a)  On determining
  that a certification holder is engaged in or about to engage in a
  violation of this chapter and that the certification holder's
  continued practice constitutes an immediate threat to the public
  welfare, the department may issue an order suspending the
  certification holder's certification without notice or a hearing.
  The department shall immediately serve notice of the suspension on
  the certification holder.
         (b)  The notice required by Subsection (a) must:
               (1)  be personally served on the certification holder
  or be sent by registered or certified mail, return receipt
  requested, to the certification holder's last known address
  according to the board's records;
               (2)  state the grounds for the suspension; and
               (3)  inform the certification holder of the right to a
  hearing on the suspension order.
         (c)  A certification holder whose certification is suspended
  under this section is entitled to request a hearing on the
  suspension not later than the 30th day after the date of receipt of
  notice of the suspension. Not later than the fifth day after the
  date a hearing is requested, the department shall issue a notice of
  hearing.
         (d)  The hearing shall be held not later than the fifth day
  after the date notice of hearing is issued, unless the parties agree
  to a later date. A hearing on a suspension order under this section
  is subject to Chapter 2001, Government Code. If the hearing is
  before an administrative law judge, after the hearing, the
  administrative law judge shall recommend to the board whether to
  uphold, vacate, or modify the suspension order.
         (e)  A suspension order issued under this section remains in
  effect until further action is taken by the department. If the
  administrative law judge's recommendation under Subsection (d) is
  to vacate the order, the department shall determine whether to
  vacate the order not later than the second day after the date of the
  recommendation.
         SECTION 2.11.  (a) Section 153.048(c), Natural Resources
  Code, as amended by this Act, applies to a certification issued or
  renewed after the effective date of this Act. A certification
  issued or renewed before the effective date of this Act is governed
  by the law in effect on the date the certification was issued or
  renewed, and the former law is continued in effect for that purpose.
         (b)  Sections 153.102, 153.103, and 153.104, Natural
  Resources Code, as added by this Act, apply only to conduct that
  occurs on or after the effective date of this Act. Conduct that
  occurs before the effective date of this Act is governed by the law
  in effect when the conduct occurred, and the former law is continued
  in effect for that purpose.
  ARTICLE 3.  TEXAS-ISRAEL EXCHANGE FUND BOARD
         SECTION 3.01.  The heading to Chapter 45, Agriculture Code,
  is amended to read as follows:
  CHAPTER 45.  TEXAS-ISRAEL EXCHANGE RESEARCH PROGRAM [FUND]
         SECTION 3.02.  Section 45.001, Agriculture Code, is amended
  to read as follows:
         Sec. 45.001.  LEGISLATIVE FINDINGS; PURPOSE.  (a)  The
  legislature finds that Texas and Israel have many interests in
  common. They face many of the same difficulties in agriculture; the
  geography of both areas produces semiarid climatic conditions;
  there is present in both areas a rising demand for a limited supply
  of water coupled with increasing pressures to minimize the use of
  energy in all aspects of agriculture. Scientific and technological
  cooperatives already produce close ties between the two areas while
  engaging in binational projects for scientific and industrial
  research and development.
         A program [fund] to support joint agricultural research and
  development by, and the development of trade and business relations
  between, Texas and Israel will address common problems and make
  substantial contributions to the development of agriculture,
  trade, and business in both areas. Since Texas has long emphasized
  broad-based agricultural research and Israel has originated and
  developed agricultural technologies designed to maximize
  production with minimal use of resources such as water and labor,
  each of the two areas will benefit by sharing information and
  expertise.
         (b)  The purpose of this chapter is to:
               (1)  establish a program [fund] to promote and support
  practical and applied agricultural research and development that
  will result in mutual benefit to Texas and Israel and will help to
  provide solutions to food and fiber production problems wherever
  they exist, particularly those relating to water conservation; and
               (2)  establish a program of mutual cooperation that
  will foster the development of trade, mutual assistance, and
  business relations between Texas and Israel.
         SECTION 3.03.  Section 45.002, Agriculture Code, is amended
  to read as follows:
         Sec. 45.002.  DEFINITION [DEFINITIONS].  In this chapter,[:
               [(1)]  "applied [Applied] research" means the process
  of assembling knowledge gained by careful and diligent search and
  studious inquiry and examination and using that knowledge to solve
  practical, real-world problems.
               [(2)     "Board" means the Texas-Israel Exchange Fund
  Board.
               [(3)  "Fund" means the Texas-Israel Exchange Fund.]
         SECTION 3.04.  Section 45.005, Agriculture Code, is amended
  to read as follows:
         Sec. 45.005.  GENERAL FUNCTIONS, POWERS, AND DUTIES.  (a)  
  The department may establish a binational program to support joint
  agricultural research and development with Israel.  The scope of
  agricultural research and development which the program [fund] may
  promote and support encompasses all scientific activities related
  to agriculture, including production, processing, marketing, and
  agricultural services, with emphasis on the support of applied
  research to improve water, labor, and energy utilization in
  agriculture.
         (b)  The program [fund] shall support applied research in
  areas of potential mutual interest, including:
               (1)  water conservation;
               (2)  water management and use;
               (3)  soil management and conservation;
               (4)  innovative sources of energy for agricultural
  production;
               (5)  environmental aspects of agricultural technology;
               (6)  intensive crop production; and
               (7)  agricultural engineering and processing.
         (c)  The program [fund] may undertake agricultural research
  and development projects of mutual benefit that are located in
  Texas, Israel, or any other location considered advisable by the
  department or suggested by the advisory committee [boards].
         (d)  The department [fund] may make research or development
  grants or loans to public or private entities who intend to carry
  out the stated objectives of the program [fund].
         (e)  The program [fund] shall encourage or support the
  exchange of agricultural producers, scientists, teachers,
  students, or other types of agricultural experts between the two
  cooperating areas of Texas and Israel.
         (f)  The program [fund] shall encourage and support [a
  program of] mutual cooperation that will foster the development of
  trade, mutual assistance, and business relations between Texas and
  Israel.
         SECTION 3.05.  Sections 45.007(b) and (d), Agriculture Code,
  are amended to read as follows:
         (b)  The department [board] may accept gifts and grants from
  the federal government, state government, and private sources, as
  well as legislative appropriations to carry out the purposes of
  this chapter. The use of gifts and grants other than legislative
  appropriation is subject only to limitations contained in the gift
  or grant.
         (d)  The department [board] shall make an annual accounting
  of all money received, awarded, and expended during the year under
  this chapter to the legislative committees responsible for
  agricultural issues.
         SECTION 3.06.  Chapter 45, Agriculture Code, is amended by
  adding Section 45.009 to read as follows:
         Sec. 45.009.  TEXAS-ISREAL EXCHANGE ADVISORY COMMITTEE.  The
  department may establish a binational agricultural research
  advisory committee to provide guidance and direction on activities
  conducted under this chapter and the expenditure of money
  appropriated for the purposes of this chapter.
         SECTION 3.07.  (a)  The Texas-Israel Exchange Fund Board and
  the Texas-Israel Exchange Fund are abolished.
         (b)  The following provisions of the Agriculture Code are
  repealed:
               (1)  Section 45.003;
               (2)  Section 45.004;
               (3)  Section 45.006;
               (4)  Sections 45.007(a) and (c); and
               (5)  Section 45.008.
  ARTICLE 4.  STRUCTURE OF CERTAIN BOARDS AND ADVISORY COMMITTEES
         SECTION 4.01.  Chapter 50B, Agriculture Code, is amended by
  adding Section 50B.0015 to read as follows:
         Sec. 50B.0015.  DEFINITION.  In this chapter, "committee"
  means the wine industry development and marketing advisory
  committee.
         SECTION 4.02.  Section 50B.002, Agriculture Code, is amended
  to read as follows:
         Sec. 50B.002.  WINE INDUSTRY DEVELOPMENT AND MARKETING [;]
  ADVISORY COMMITTEE.  (a) The commissioner shall [may] appoint a
  wine industry development and marketing advisory committee to:
               (1)  develop a long-term vision and marketable identity
  for the wine industry in the state that take into consideration
  future industry development, funding, research, educational
  programming, risk management, and marketing; and
               (2)  assist the commissioner in establishing and
  implementing the Texas Wine Marketing Assistance Program under
  Chapter 110, Alcoholic Beverage Code.
         (b)  The committee consists of members appointed by the
  commissioner who represent a diverse cross-section of the wine
  industry, including representatives of:
               (1)  grape growers;
               (2)  wineries;
               (3)  wholesalers;
               (4)  package stores;
               (5)  retailers;
               (6)  researchers;
               (7)  consumers;
               (8)  the department; and
               (9)  the Texas Alcoholic Beverage Commission.
         (c)  The members of the committee serve without
  compensation.
         (d)  A member of the committee serves at the pleasure of the
  commissioner for a term of two years. The commissioner may
  reappoint a member to the committee.
         (e)  The commissioner shall select a presiding officer from
  among the members and adopt rules governing the operation of the
  committee.
         (f)  The committee shall meet as necessary to provide
  guidance to the commissioner.
         SECTION 4.03.  Sections 62.002(a) and (d), Agriculture Code,
  are amended to read as follows:
         (a)  The State Seed and Plant Board is an agency of the state.
  The board is composed of [six members appointed by the governor with
  the advice and consent of the senate. Membership must include]:
               (1)  one individual, appointed by the president of
  Texas A&M University, from the Soils and Crop Sciences Department,
  Texas Agricultural Experiment Station, Texas A&M [A & M]
  University;
               (2)  one individual, appointed by the president of
  Texas Tech University, from the Department of Plant and Soil
  Sciences, Texas Tech University;
               (3)  one individual, appointed by the commissioner,
  licensed as a Texas Foundation, Registered, or Certified seed or
  plant producer who is not employed by a public institution;
               (4)  one individual, appointed by the commissioner,
  who sells Texas Foundation, Registered, or Certified seed or
  plants;
               (5)  one individual, appointed by the commissioner,
  actively engaged in farming but not a producer or seller of Texas
  Foundation, Registered, or Certified seed or plants; and
               (6)  the head of the seed division of the department.
         (d)  The commissioner [governor] shall designate a member of
  the board as the chairman to serve in that capacity at the pleasure
  of the commissioner [governor]. The board annually shall elect a
  vice-chairman and secretary. The board shall meet at times and
  places determined by the chairman.
         SECTION 4.04.  Section 62.0027(a), Agriculture Code, is
  amended to read as follows:
         (a)  Before a member of the board may assume the member's
  duties [and before the member may be confirmed by the senate], the
  member must complete at least one course of the training program
  established under this section.
         SECTION 4.05.  Sections 103.003(a) and (f), Agriculture
  Code, are amended to read as follows:
         (a)  The Produce Recovery Fund Board is composed of five
  members appointed by the commissioner [governor with the advice and
  consent of the senate]. Two members must be producers, one must be
  a license holder licensed under Chapter 101, and two must be members
  of the general public.
         (f)  The commissioner [governor] shall designate a member of
  the board as the chairman of the board to serve in that capacity at
  the pleasure of the commissioner [governor].
         SECTION 4.06.  Section 103.019(a), Agriculture Code, is
  amended to read as follows:
         (a)  Before a member of the board may assume the member's
  duties [and before the member may be confirmed by the senate], the
  member must complete at least one course of the training program
  established under this section.
         SECTION 4.07.  Section 110.002(b), Alcoholic Beverage Code,
  is amended to read as follows:
         (b)  The commissioner, in consultation with the advisory
  committee established under Section 50B.002, Agriculture Code
  [110.003], shall adopt rules as necessary to implement the program.
         SECTION 4.08.  The following statutes are repealed:
               (1)  Section 62.0023(c), Agriculture Code;
               (2)  Sections 103.003(b) and 103.017(c), Agriculture
  Code; and
               (3)  Section 110.003, Alcoholic Beverage Code.
         SECTION 4.09.  On the effective date of this Act, the Texas
  Wine Marketing Assistance Program advisory committee and the wine
  industry development advisory committee are abolished.  The
  commissioner of agriculture may appoint a person who previously
  served on either of those committees to the wine industry
  development and marketing advisory committee established under
  Section 50B.002, Agriculture Code, as amended by this Act.
         SECTION 4.10.  The changes in law made by this Act by the
  amendment of Sections 62.002 and 103.003, Agriculture Code, do not
  affect the entitlement of a member serving on the State Seed and
  Plant Board or Produce Recovery Fund Board immediately before the
  effective date of this Act to continue to serve as a board member
  for the remainder of the member's term. The changes in law apply
  only to a member appointed on or after the effective date of this
  Act.
  ARTICLE 5. CERTAIN AGRICULTURAL REGULATORY PROGRAMS
         SECTION 5.01.  Section 13.251, Agriculture Code, is amended
  to read as follows:
         Sec. 13.251.  DEFINITION.  In this subchapter, "public
  weigher" means a business certified under this subchapter [person
  who is elected or appointed] to issue an official certificate
  declaring the accurate weight or measure of a commodity that the
  business [person] is requested to weigh.
         SECTION 5.02.  Section 13.255, Agriculture Code, is amended
  to read as follows:
         Sec. 13.255.  CERTIFICATE.  (a)  A public weigher[, whether
  elected or appointed, or deputy public weigher] may not officially
  weigh a commodity unless the weigher has obtained from the
  department a certificate of authority.
         (b)  A [state public weigher must submit a nonrefundable fee,
  as provided by department rule, with the application for a
  certificate of authority. A county public weigher or a deputy]
  public weigher must submit a fee, as provided by department rule,
  with the application for a certificate of authority.
         SECTION 5.03.  Section 13.2555, Agriculture Code, is amended
  to read as follows:
         Sec. 13.2555.  REVOCATION, MODIFICATION, OR SUSPENSION OF
  CERTIFICATE.  (a)  The department shall revoke, modify, or suspend
  the certificate of authority of a [an appointed public weigher or a
  deputy of an appointed county] public weigher, assess an
  administrative penalty, place on probation the public weigher
  [person] whose certificate has been suspended, or reprimand a [an
  appointed public weigher or a deputy of an appointed county] public
  weigher for a violation of this subchapter or a rule adopted by the
  department under this subchapter.
         (b)  If a certificate suspension is probated, the department
  may require the public weigher [person] to:
               (1)  report regularly to the department on matters that
  are the basis of the probation;
               (2)  limit practice to the areas prescribed by the
  department; or
               (3)  continue or renew professional education until the
  public weigher [person] attains a degree of skill satisfactory to
  the department in those areas that are the basis of the probation.
         (c)  If the department proposes to revoke, modify, or suspend
  a public weigher's [person's] certificate, the public weigher
  [person] is entitled to a hearing conducted under Section 12.032.
  The decision of the department is appealable in the same manner as
  provided for contested cases under Chapter 2001, Government Code.
         SECTION 5.04.  Section 13.256, Agriculture Code, is amended
  to read as follows:
         Sec. 13.256.  BOND.  [(a)]  Each [county public weigher,
  whether elected or appointed, and each deputy] public weigher shall
  execute [for the full term of office] a bond in accordance with
  rules adopted [that is in the amount of $2,500, approved] by the
  department [, and made payable to the county judge of the county for
  which the weigher is elected or appointed].  The bond must be
  conditioned on the accurate weight or measure of a commodity being
  reflected on the certificate issued by the public weigher [or
  deputy], on the protection of a commodity that the public weigher
  [or deputy] is requested to weigh or measure, and on compliance with
  all laws and rules governing public weighers. [The bond shall be
  filed with the county clerk's office in the county for which the
  public weigher or deputy is appointed or elected.] The bond is not
  void on first recovery. A person injured by the public weigher may
  sue on the bond.
         [(b)     Each state public weigher shall execute a bond similar
  to the bond required under Subsection (a) of this section, except
  that the bond is for $10,000, made payable to the State of Texas,
  and filed with the department.]
         SECTION 5.05.  Section 13.257(a), Agriculture Code, is
  amended to read as follows:
         (a)  On each certificate of weight or measure that a public
  weigher [or deputy public weigher] issues, the public weigher [or
  deputy public weigher] shall include the:
               (1)  time and date that the weight or measurement was
  taken;
               (2)  signature and license number of the public weigher
  [or deputy public weigher]; and
               (3)  seal of the department.
         SECTION 5.06.  Section 13.259(a), Agriculture Code, is
  amended to read as follows:
         (a)  A public weigher [or deputy public weigher] who
  intentionally or knowingly issues a certificate of weight or
  measure giving a false weight or measure for a commodity weighed or
  measured commits an offense.
         SECTION 5.07.  Section 13.261, Agriculture Code, is amended
  to read as follows:
         Sec. 13.261.  [POWER OF DEPARTMENT;] RULES.  The department
  shall [may] adopt rules governing the bond requirements and
  [procedures to be followed in administering the] fees imposed under
  this subchapter.
         SECTION 5.08.  Section 52.038, Agriculture Code, is amended
  to read as follows:
         Sec. 52.038.  EXISTING CORPORATIONS AND ASSOCIATIONS. [(a)]  
  Any corporation or association organized under prior law before
  March 1, 1921, may elect, by a majority vote of its members or
  stockholders, to adopt this chapter and become subject to it by:
               (1)  adopting the restrictions provided by this
  chapter; and
               (2)  executing, in duplicate on forms supplied by the
  secretary of state, an instrument, signed and acknowledged by its
  directors, stating that the entity, by a majority vote of its
  members or stockholders, has decided to accept the benefits of and
  be bound by this chapter[; and
               [(3)     filing articles of incorporation in accordance
  with the requirements of Section 52.035 of this code except that the
  entity's directors shall sign the articles].
         [(b)     The filing fee for the articles filed under Subsection
  (a) of this section is equal to the filing fee for an amendment to
  the articles of incorporation as provided by Section 52.151 of this
  code.]
         SECTION 5.09.  Section 52.151, Agriculture Code, is amended
  to read as follows:
         Sec. 52.151.  TAX EXEMPTIONS [FEES]. [(a)   The fee for
  filing articles of incorporation under this chapter is $10.
         [(b)     The fee for filing an amendment to the articles of
  incorporation under this chapter is $2.50.
         [(c)     Each marketing association shall pay to the department
  an annual license fee, as provided by department rule.] A marketing
  association is exempt from all [other] franchise or license taxes,
  except that a marketing association is exempt from the franchise
  tax imposed by Chapter 171, Tax Code, only if exempted by that
  chapter.
         SECTION 5.10.  Section 101.003(b), Agriculture Code, is
  amended to read as follows:
         (b)  This section does not apply to:
               (1)  a retailer, unless the retailer:
                     (A)  has annual sales of perishable commodities
  that comprise 50 percent or more of the retailer's total sales; or
                     (B)  employs a buying agent who buys directly from
  a producer;
               (2)  a producer who handles or deals exclusively in the
  producer's own products;
               (3)  a person shipping less than six standard boxes of
  citrus fruit in any one separate shipment; [or]
               (4)  a person who ships a noncommercial shipment of
  perishable commodities; or
               (5)  a person who purchases perishable commodities and
  pays for the perishable commodities in United States currency
  before or at the time of delivery or taking possession.
         SECTION 5.11.  Section 101.004, Agriculture Code, is amended
  to read as follows:
         Sec. 101.004.  LICENSE OR REGISTRATION CATEGORIES. [(a)]  A
  person shall apply for a license if the person:
               (1)  purchases perishable commodities on credit;
               (2)  takes possession of perishable commodities for
  consignment or handling on behalf of the producer or owner of the
  perishable commodities; or
               (3)  takes possession of perishable commodities for
  consignment or handling in a manner or under a contract that does
  not require or result in payment to the producer, seller, or
  consignor of the full amount of the purchase price in United States
  currency at the time of delivery or at the time that the perishable
  commodities pass from the producer, seller, or consignor to the
  person.
         [(b)     A person shall register as a cash dealer if the person
  purchases perishable commodities and pays for the perishable
  commodities in United States currency before or at the time of
  delivery or taking possession.]
         SECTION 5.12.  Section 103.008(b), Agriculture Code, is
  amended to read as follows:
         (b)  The total payment of all claims arising from the same
  contract with a license holder may not exceed $50,000 [$35,000].
         SECTION 5.13.  Section 121.005(a), Agriculture Code, is
  amended to read as follows:
         (a)  Each rose plant or shipment of rose plants shall be
  labeled with[:
               [(1)]  the proper grade[; and
               [(2)     the number of the certificate of authority of the
  person selling or offering for sale the plant or shipment].
         SECTION 5.14.  Section 52.092(f), Election Code, is amended
  to read as follows:
         (f)  Precinct offices shall be listed in the following order:
               (1)  county commissioner;
               (2)  justice of the peace;
               (3)  constable[;
               [(4)  public weigher].
         SECTION 5.15.  Section 172.024(a), Election Code, is amended
  to read as follows:
         (a)  The filing fee for a candidate for nomination in the
  general primary election is as follows:
               (1)  United States senator $5,000  
               (2)  office elected statewide, except United States
  senator 3,750  
               (3)  United States representative 3,125  
               (4)  state senator 1,250  
               (5)  state representative    750  
               (6)  member, State Board of Education    300  
               (7)  chief justice or justice, court of appeals, other
  than a justice specified by Subdivision (8) 1,875  
               (8)  chief justice or justice of a court of appeals that
  serves a court of appeals district in which a county with a
  population of more than 750,000 is wholly or partly
  situated  2,500   
               (9)  district judge or judge specified by Section
  52.092(d) for which this schedule does not otherwise prescribe a
  fee 1,500  
               (10)  district or criminal district judge of a court in
  a judicial district wholly contained in a county with a population
  of more than 850,000 2,500  
               (11)  judge, statutory county court, other than a judge
  specified by Subdivision (12) 1,500  
               (12)  judge of a statutory county court in a county with
  a population of more than 850,000 2,500  
               (13)  district attorney, criminal district attorney,
  or county attorney performing the duties of a district
  attorney 1,250   
               (14)  county commissioner, district clerk, county
  clerk, sheriff, county tax assessor-collector, county treasurer,
  or judge, constitutional county court:
                     (A)  county with a population of 200,000
  or more  1,250  
                     (B)  county with a population of under
  200,000  750   
               (15)  justice of the peace or constable:
                     (A)  county with a population of 200,000
  or more  1,000   
                     (B)  county with a population of under
  200,000  375   
               (16)  county surveyor or[,] inspector of hides and
  animals[, or public weigher]     75  
               (17)  office of the county government for which this
  schedule does not otherwise prescribe a fee    750  
         SECTION 5.16.  Section 62.160(b), Labor Code, is amended to
  read as follows:
         (b)  Sections 62.051-62.054 [and Subchapter C] do not apply
  to an agricultural employer with respect to an employee engaged in
  the production of livestock.
         SECTION 5.17.  The following statutes are repealed:
               (1)  Section 13.252, Agriculture Code;
               (2)  Section 13.253, Agriculture Code;
               (3)  Section 13.2535, Agriculture Code;
               (4)  Section 13.254, Agriculture Code;
               (5)  Section 52.035(b), Agriculture Code;
               (6)  Section 52.152, Agriculture Code;
               (7)  Sections 103.008(a) and (c), Agriculture Code;
               (8)  Section 121.004, Agriculture Code;
               (9)  Section 62.002(1), Labor Code; and
               (10)  Subchapter C, Chapter 62, Labor Code.
         SECTION 5.18.  (a) The changes in law made by this Act to
  Subchapter E, Chapter 13, Agriculture Code, do not affect the
  entitlement of a public weigher or deputy public weigher elected or
  appointed before the effective date of this Act to serve as a public
  weigher or deputy public weigher for the remainder of the public
  weigher's or deputy public weigher's term. A public weigher or
  deputy public weigher elected or appointed before the effective
  date of this Act is governed by the law in effect immediately before
  the effective date of this Act, and the former law is continued in
  effect for that purpose.
         (b)  The changes in law made by this Act to Section 103.008,
  Agriculture Code, apply only to a claim for payment filed on or
  after the effective date of this Act. A claim filed before that
  date is governed by the law in effect on the date the claim was
  filed, and the former law is continued in effect for that purpose.
  ARTICLE 6.  GENERAL LICENSING PROVISIONS
         SECTION 6.01.  Sections 12.020(a) and (c), Agriculture Code,
  are amended to read as follows:
         (a)  If a person violates a provision of law [this code]
  described by Subsection (c) [of this section] or a rule or order
  adopted by the department under a provision of law [this code]
  described by Subsection (c) [of this section], the department may
  assess an administrative penalty against the person as provided by
  this section.
         (c)  The provisions of law [this code] subject to this
  section and the applicable penalty amounts are as follows:
 
Provision Amount of Penalty
 
Chapter 41 not more than $5,000 [$1,000]
 
Chapters 13, 14A, 18, 46, 61, 94,
 
95, 101, 102, 103, 121, 125, 132,
 
and 134 not more than $5,000 [$500]
 
Subchapter B, Chapter 71
 
Chapter 19
 
Chapter 76 not more than $5,000 [$2,000]
 
Subchapters A and C, Chapter 71
 
Chapters 72, 73, and 74 not more than $5,000
 
Chapter 14 not more than $10,000
 
Chapter 1951, Occupations Code not more than $5,000
 
Chapter 153, Natural Resources
 
Code not more than $5,000.
         SECTION 6.02.  Section 12.023, Agriculture Code, is amended
  to read as follows:
         Sec. 12.023.  EXPIRATION OF REGISTRATION OR LICENSES. The
  department by rule shall [may] adopt a system under which
  registrations or licenses required by the department expire on
  various dates during the year. For the year in which the
  registration or license expiration date is changed, registration or
  license fees shall be prorated on a monthly basis so that each
  registrant or licensee pays only that portion of the fee that is
  allocable to the number of months during which the registration or
  license is valid. On renewal of the registration or license on the
  new expiration date, the total renewal fee is payable.
         SECTION 6.03.  Title 2, Agriculture Code, is amended by
  adding Chapter 12A to read as follows:
  CHAPTER 12A.  GENERAL LICENSING PROVISIONS
  SUBCHAPTER A.  POWERS AND DUTIES OF DEPARTMENT RELATED TO LICENSING
         Sec. 12A.001.  APPLICABILITY OF PROVISIONS.  The general
  licensing, regulatory, and enforcement provisions of Chapter 12 and
  this chapter apply to licensing and regulatory programs
  administered by the department under any law.
         Sec. 12A.002.  CEASE AND DESIST ORDER.  (a)  If it appears to
  the commissioner that a person who is not licensed by the department
  is violating a statute or rule that requires the person to hold a
  license issued by the department or a statute or rule relating to an
  activity regulated by the department, the commissioner after notice
  and opportunity for a hearing may issue a cease and desist order
  prohibiting the person from engaging in the activity.
         (b)  A violation of an order under this section constitutes
  grounds for imposing an administrative penalty.
         Sec. 12A.003.  RISK-BASED INSPECTIONS.  For each person
  licensed or regulated by the department that the department may
  inspect:
               (1)  the department may conduct additional inspections
  based on a schedule of risk-based inspections using the following
  criteria:
                     (A)  the type and nature of the person;
                     (B)  whether there has been a prior violation by
  the person;
                     (C)  the inspection history of the person;
                     (D)  any history of complaints involving the
  person; and
                     (E)  any other factor determined by the department
  by rule; and
               (2)  the department may waive the inspection
  requirement on a case-by-case basis if an emergency arises or to
  accommodate complaint investigation schedules.
  [Sections 12A.004-12A.050 reserved for expansion]
  SUBCHAPTER B.  PUBLIC INTEREST INFORMATION AND COMPLAINT PROCEDURES
         Sec. 12A.051.  INFORMATION REGARDING COMPLAINTS AND
  ENFORCEMENT PROCESS.  (a)  The department shall:
               (1)  inform applicants, license holders, and the public
  on the department's Internet website, in department brochures, and
  on any other available information resource about the department's
  enforcement process, including each step in the complaint
  investigation and resolution process, from initial filing through
  final appeal, and the opportunity to request an informal settlement
  conference; and
               (2)  inform license holders that a license holder may
  obtain information about a complaint made against the license
  holder and may obtain on request a copy of the complaint file.
         (b)  The department shall provide to a license holder against
  whom a complaint has been filed:
               (1)  the allegations made against the license holder in
  the complaint; and
               (2)  on the license holder's request, any information
  obtained by the department in its investigation of the complaint.
         (c)  The department shall provide the information required
  under Subsection (b) in a timely manner to allow the license holder
  time to respond to the complaint.
         Sec. 12A.052.  COMPLAINT AND VIOLATION ANALYSIS.  The
  department shall analyze complaints filed with and violations
  discovered by the department to identify any trends or issues
  related to certain violations, including:
               (1)  the reason for each complaint or violation;
               (2)  how each complaint or violation was resolved; and
               (3)  the subject matter of each complaint or violation
  that was not within the jurisdiction of the department and how the
  department responded to the complaint or violation.
  [Sections 12A.053-12A.100 reserved for expansion]
  SUBCHAPTER C.  ISSUANCE AND RENEWAL OF LICENSES
         Sec. 12A.101.  REPLACEMENT LICENSE; FEE.  The department
  shall issue to a license holder whose license has been lost or
  destroyed or whose name has been changed a replacement license if
  the license holder submits to the department:
               (1)  an appropriate application; and
               (2)  a fee in an amount established by department rule.
  [Sections 12A.102-12A.150 reserved for expansion]
  SUBCHAPTER D.  EXAMINATIONS
         Sec. 12A.151.  EXAMINATION PROCEDURES.  For each licensing
  examination administered by the department, the department shall:
               (1)  adopt policies and guidelines detailing the
  procedures for the testing process, including test admission and
  internal test administration procedures; and
               (2)  post on the department's Internet website the
  policies that reference the testing procedures.
         Sec. 12A.152.  EVALUATION OF EXAMINATION QUESTIONS.  For
  each licensing examination administered by the department, the
  department shall periodically evaluate the effectiveness of
  examination questions in objectively assessing an applicant's
  knowledge.
  [Sections 12A.153-12A.200 reserved for expansion]
  SUBCHAPTER E.  PENALTIES AND ENFORCEMENT PROCEDURES
         Sec. 12A.201.  INFORMAL PROCEEDINGS. (a)  The department by
  rule shall adopt procedures governing:
               (1)  informal disposition of a contested case under
  Section 2001.056, Government Code; and
               (2)  an informal proceeding held in compliance with
  Section 2001.054, Government Code.
         (b)  The department shall offer the opportunity to conduct an
  informal settlement conference by telephone.
         (c)  The department shall:
               (1)  provide a license holder sufficient opportunity to
  indicate whether the terms of a proposed order are acceptable to the
  license holder;
               (2)  indicate in the notice of violation that the
  license holder has the opportunity described by Subdivision (1);
  and
               (3)  allow a license holder who does not agree with a
  proposed order to request an informal settlement conference.
         SECTION 6.04.  The heading to Section 76.113, Agriculture
  Code, is amended to read as follows:
         Sec. 76.113.  TERM [EXPIRATION] AND RENEWAL OF LICENSES.
         SECTION 6.05.  Sections 76.113(a) and (b), Agriculture Code,
  are amended to read as follows:
         (a)  Each commercial applicator or noncommercial applicator
  license is valid for one year [expires on the first anniversary of
  the date on which it was issued or renewed].
         (b)  Each private applicator license is valid for five years
  [expires on the fifth anniversary of the date on which it was issued
  or renewed].
         SECTION 6.06.  Section 76.151, Agriculture Code, is amended
  by amending Subsection (a) and adding Subsection (a-1) to read as
  follows:
         (a)  The [For the purpose of inspection, examination, or
  sampling, the] department, at any time and without notice during
  regular business hours, may:
               (1)  [is entitled to] enter and inspect a [at
  reasonable hours any] building or place owned, controlled, or
  operated by a person engaged in any activity regulated under this
  chapter or Chapter 1951, Occupations Code; and
               (2)  inspect and review any record maintained by a
  person engaged in any activity regulated under this chapter or
  Chapter 1951, Occupations Code [registrant or dealer if from
  probable cause it appears that the building or place contains a
  pesticide].
         (a-1)  The department may enter and inspect a building or
  place or inspect and review any record under Subsection (a) as
  necessary to:
               (1)  ensure compliance with this chapter or Chapter
  1951, Occupations Code; or
               (2)  investigate a complaint made to the department.
         SECTION 6.07.  Section 76.1555(a), Agriculture Code, is
  amended to read as follows:
         (a)  If a person violates a provision of this chapter or
  Chapter 1951, Occupations Code, or a rule or order adopted by the
  department under this chapter or Chapter 1951, Occupations Code,
  the department may assess an administrative penalty against the
  person as provided by Section 12.020, except that the penalty for
  each violation may [shall] not exceed $5,000 [$4,000 for all
  violations related to a single incident].  Each day a violation
  continues or occurs may be considered a separate violation for
  purposes of penalty assessment.
         SECTION 6.08.  Section 132.024, Agriculture Code, is amended
  to read as follows:
         Sec. 132.024.  LICENSE TERM [EXPIRATION]. A license issued
  or renewed under this chapter is valid for one year [expires on the
  first anniversary of the date of issuance or renewal].
         SECTION 6.09.  The changes in law made by this article to
  Sections 12.020(c) and 76.1555(a), Agriculture Code, apply only to
  a violation committed on or after the effective date of this Act.  A
  violation committed before the effective date of this Act is
  governed by the law in effect on the date the violation occurred,
  and the former law is continued in effect for that purpose.
  ARTICLE 7.  STRUCTURAL PEST CONTROL
         SECTION 7.01.  Section 12.0201, Agriculture Code, is amended
  to read as follows:
         Sec. 12.0201.  LICENSE SANCTIONS. (a)  In addition to other
  sanctions provided by law, the department may revoke, modify,
  suspend, or refuse to issue or renew a license, assess an
  administrative penalty, place on probation a person whose license
  has been suspended, or reprimand a license holder if the department
  finds that the practitioner:
               (1)  violated a provision of this code or Chapter 1951,
  Occupations Code;
               (2)  violated a rule adopted by the department under
  this code or Chapter 1951, Occupations Code; or
               (3)  after appropriate notice, failed to comply with an
  order of the department.
         (b)  In addition to any other actions permitted under this
  code or Chapter 1951, Occupations Code, if a license suspension is
  probated, the department may require the practitioner:
               (1)  to maintain additional information in the
  practitioner's records;
               (2)  to report regularly to the department on matters
  that are the basis of the probation;
               (3)  to limit practice to the areas prescribed by the
  department; or
               (4)  to continue or review professional education until
  the practitioner attains a degree of skill satisfactory to the
  department in those areas that are the basis of the probation.
         SECTION 7.02.  Subchapter A, Chapter 1951, Occupations Code,
  is amended by adding Section 1951.007 to read as follows:
         Sec. 1951.007.  APPLICABILITY OF AGRICULTURE CODE LICENSING
  PROVISIONS.  A provision of the Agriculture Code that applies
  generally to licensing or regulatory programs administered by the
  department, including a provision that refers generally to
  licensing or regulatory programs under the Agriculture Code,
  applies to this chapter.
         SECTION 7.03.  Section 1951.207(a), Occupations Code, is
  amended to read as follows:
         (a)  The department by rule shall adopt a policy that[:
               [(1)]  requires a business holding a structural pest
  control business license to be inspected by a field inspector at
  least once:
               (1) [(A)]  in the business's first year of operation;
  and
               (2) [(B)]  every four years after the first year of
  operation[;
               [(2)     provides for additional inspections based on a
  schedule of risk-based inspections using the following criteria:
                     [(A)  the type and nature of the business;
                     [(B)     whether there has been a prior violation by
  the business;
                     [(C)  the inspection history of the business;
                     [(D)     any history of complaints involving the
  business;     and
                     [(E)     any other factor determined by the
  department by rule; and
               [(3)     provides that the department may waive the
  inspection requirement on a case-by-case basis if an emergency
  arises or to accommodate complaint investigation schedules].
         SECTION 7.04.  The following provisions of the Occupations
  Code are repealed:
               (1)  Section 1951.310;
               (2)  Section 1951.311;
               (3)  Sections 1951.501(c) and (d);
               (4)  Subchapter L, Chapter 1951;
               (5)  Section 1951.604; and
               (6)  Section 1951.605.
         SECTION 7.05.  The changes in law made by this Act by the
  repeal of Sections 1951.501(c) and (d), Occupations Code, apply
  only to a violation of Chapter 1951, Occupations Code, committed on
  or after the effective date of this Act.  A violation committed
  before the effective date of this Act is governed by the law in
  effect on the date the violation occurred, and the former law is
  continued in effect for that purpose.  A violation committed on or
  after the effective date of this Act is governed by Section 12.0201,
  Agriculture Code, as amended by this Act, and other applicable law.
         SECTION 7.06.  The change in law made by this Act by the
  repeal of Section 1951.310, Occupations Code, applies only to the
  renewal of a license under Chapter 1951, Occupations Code, that
  expires on or after the effective date of this Act.  The renewal of a
  license that expires before the effective date of this Act is
  governed by the law in effect on the date the license expired, and
  the former law is continued in effect for that purpose.  An
  application submitted on or after the effective date of this Act is
  governed by Section 12.024, Agriculture Code, and other applicable
  law.
         SECTION 7.07.  The change in law made by this Act by the
  repeal of Section 1951.311, Occupations Code, applies only to an
  application for a replacement license issued under Chapter 1951,
  Occupations Code, submitted on or after the effective date of this
  Act.  An application submitted before the effective date of this Act
  is governed by the law in effect on the date the application was
  submitted, and the former law is continued in effect for that
  purpose.  An application submitted on or after the effective date of
  this Act is governed by Section 12A.101, Agriculture Code, as added
  by this Act, and other applicable law.
         SECTION 7.08.  The change in law made by this Act by the
  repeal of Subchapter L, Chapter 1951, Occupations Code, applies
  only to a violation committed on or after the effective date of this
  Act.  A violation committed before that date is governed by the law
  in effect on the date the violation occurred, and the former law is
  continued in effect for that purpose. A violation committed on or
  after the effective date of this Act is governed by Section 12.020,
  Agriculture Code, as amended by this Act, and other applicable law.
  ARTICLE 8.  SUNSET DATE AND ACROSS-THE-BOARD RECOMMENDATIONS
         SECTION 8.01.  Section 11.003, Agriculture Code, is amended
  to read as follows:
         Sec. 11.003.  SUNSET PROVISION.  The Department of
  Agriculture is subject to Chapter 325, Government Code (Texas
  Sunset Act).  Unless continued in existence as provided by that
  chapter, the department is abolished September 1, 2021 [2009].
         SECTION 8.02.  Section 12.0135, Agriculture Code, is amended
  to read as follows:
         Sec. 12.0135.  CONFLICT PROVISIONS.  (a) A person may not be
  a department employee employed in a "bona fide executive,
  administrative, or professional capacity," as that phrase is used
  for purposes of establishing an exemption to the overtime
  provisions of the federal Fair Labor Standards Act of 1938 (29
  U.S.C. Section 201 et seq.), if:
               (1)  the person is an officer, employee, or paid
  consultant of a Texas trade association in the field of
  agriculture; or
               (2)  the person's spouse is an officer, manager, or paid
  consultant of a Texas trade association in the field of
  agriculture.
         (b)  A person may not act as the general counsel to the
  commissioner or the department if the person is required to
  register as a lobbyist under Chapter 305, Government Code, because
  of the person's activities for compensation on behalf of a
  profession related to the operation of the department.
         (c)  In [(b)     An officer, employee, or paid consultant of a
  statewide Texas trade association or an affiliate of a national
  trade association in the field of agriculture may not be an employee
  of the department who is exempt from the state's position
  classification plan or is compensated at or above the amount
  prescribed by the General Appropriations Act for step 1, salary
  group 17, of the position classification salary schedule.
         [(c)     A person who is the spouse of an officer, manager, or
  paid consultant of a statewide Texas trade association or an
  affiliate of a national trade association in the field of
  agriculture may not be an employee of the department who is exempt
  from the state's position classification plan or is compensated at
  or above the amount prescribed by the General Appropriations Act
  for step 1, salary group 17, of the position classification salary
  schedule.
         [(d)  For the purposes of] this section, "Texas [a] trade
  association" means [is] a [nonprofit,] cooperative [,] and
  voluntarily joined statewide association of business or
  professional competitors in this state designed to assist its
  members and its industry or profession in dealing with mutual
  business or professional problems and in promoting their common
  interest.
         SECTION 8.03.  Chapter 12, Agriculture Code, is amended by
  adding Section 12.0203 to read as follows:
         Sec. 12.0203.  NEGOTIATED RULEMAKING AND ALTERNATIVE
  DISPUTE RESOLUTION. (a) The commissioner shall develop and
  implement a policy to encourage the use of:
               (1)  negotiated rulemaking procedures under Chapter
  2008, Government Code, for the adoption of department rules; and
               (2)  appropriate alternative dispute resolution
  procedures under Chapter 2009, Government Code, to assist in the
  resolution of internal and external disputes under the department's
  jurisdiction.
         (b)  The department's procedures relating to alternative
  dispute resolution must conform, to the extent possible, to any
  model guidelines issued by the State Office of Administrative
  Hearings for the use of alternative dispute resolution by state
  agencies.
         (c)  The commissioner shall designate a trained person to:
               (1)  coordinate the implementation of the policy
  adopted under Subsection (a);
               (2)  serve as a resource for any training needed to
  implement the procedures for negotiated rulemaking or alternative
  dispute resolution; and
               (3)  collect data concerning the effectiveness of those
  procedures, as implemented by the department.
         SECTION 8.04.  Chapter 12, Agriculture Code, is amended by
  adding Section 12.047 to read as follows:
         Sec. 12.047.  USE OF TECHNOLOGY. The commissioner shall
  implement a policy requiring the department to use appropriate
  technological solutions to improve the department's ability to
  perform its functions. The policy must ensure that the public is
  able to interact with the department on the Internet.
  ARTICLE 9.  EFFECTIVE DATE
         SECTION 9.01.  This Act takes effect September 1, 2009.