Texas 2009 - 81st Regular

Texas House Bill HB3236 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	81R3037 BEF/JAM-F
2	2	By: Flynn H.B. No. 3236
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the continuation and functions of the Department of
8	8	Agriculture and the Prescribed Burning Board and the abolition of
9	9	the Texas-Israel Exchange Fund Board.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	ARTICLE 1. TEXAS AGRICULTURAL FINANCE AUTHORITY
12	12	SECTION 1.01. Sections 44.001(1) and (2), Agriculture Code,
13	13	are amended to read as follows:
14	14	(1) "Eligible lending institution" means a financial
15	15	institution that makes commercial loans, is either a depository of
16	16	state funds or an institution of the Farm Credit System
17	17	headquartered in this state, and agrees to participate in the
18	18	interest rate reduction [linked deposit] program and to provide
19	19	collateral equal to the amount of linked deposits placed with it.
20	20	(2) "Eligible borrower" means a person who proposes to
21	21	use the proceeds of a loan under this chapter in a manner that will
22	22	help accomplish the state's goal of fostering the creation and
23	23	expansion of enterprises based on agriculture in this state [is in
24	24	the business or entering the business of:
25	25	[(A) processing and marketing agricultural crops
26	26	in this state;
27	27	[(B) producing alternative agricultural crops in
28	28	this state;
29	29	[(C) producing agricultural crops in this state
30	30	the production of which has declined because of natural disasters;
31	31	[(D) producing agricultural crops in this state
32	32	using water conservation equipment for agricultural production
33	33	purposes; or
34	34	[(E) providing nonagricultural goods or services
35	35	that provide an economic benefit to a municipality or county in a
36	36	rural area].
37	37	SECTION 1.02. The heading to Section 44.007, Agriculture
38	38	Code, is amended to read as follows:
39	39	Sec. 44.007. INTEREST RATE REDUCTION [LINKED DEPOSIT]
40	40	PROGRAM.
41	41	SECTION 1.03. Sections 44.007(a), (c), (d), (k), and (l),
42	42	Agriculture Code, are amended to read as follows:
43	43	(a) The board shall establish an interest rate reduction [a
44	44	linked deposit] program to foster the creation and expansion of
45	45	enterprises based on agriculture in this state[:
46	46	[(1) encourage commercial lending for the enhanced
47	47	production, processing, and marketing of certain agricultural
48	48	crops;
49	49	[(2) encourage the development or expansion of
50	50	businesses in rural areas of this state; and
51	51	[(3) finance water conservation projects or equipment
52	52	for agricultural production purposes].
53	53	(c) The board shall promulgate rules for the loan portion of
54	54	the interest rate reduction [linked deposit] program. [The rules
55	55	must include:
56	56	[(1) a list of the categories of crops customarily
57	57	grown in Texas, with consideration given to the Texas Agricultural
58	58	Statistics Service information available and relevant to this
59	59	determination;
60	60	[(2) a list of crops that are alternative agricultural
61	61	crops, with consideration given to the Texas Agricultural
62	62	Statistics Service information available and relevant to this
63	63	determination;
64	64	[(3) identification of criteria for a project eligible
65	65	for natural disaster assistance; and
66	66	[(4) identification of projects and types of equipment
67	67	considered as water conservation projects or equipment for
68	68	agricultural production purposes.]
69	69	(d) In order to participate in the interest rate reduction
70	70	[linked deposit] program, an eligible lending institution may
71	71	solicit loan applications from eligible borrowers.
72	72	(k) The board may adopt rules that create a procedure for
73	73	determining priorities for loans granted under this chapter. Each
74	74	rule adopted must state the policy objective of the rule. [The
75	75	policy objectives of the rules may include preferences to:
76	76	[(1) achieve adequate geographic distribution of
77	77	loans;
78	78	[(2) assist certain industries;
79	79	[(3) encourage certain practices including water
80	80	conservation; and
81	81	[(4) encourage value-added processing of agricultural
82	82	products.]
83	83	(l) A lending institution is not ineligible to participate
84	84	in the interest rate reduction [linked deposit] program solely
85	85	because a member of the board is also an officer, director, or
86	86	employee of the lending institution, provided that a board member
87	87	shall recuse himself or herself from any action taken by the board
88	88	on an application involving a lending institution by which the
89	89	board member is employed or for which the board member serves as an
90	90	officer or director.
91	91	SECTION 1.04. Sections 44.010(a) and (b), Agriculture Code,
92	92	are amended to read as follows:
93	93	(a) At any one time, not more than $30 million[, $10 million
94	94	of which may be used only to finance water conservation projects and
95	95	$5 million of which may be used only to finance the economic
96	96	development of businesses in rural areas,] may be placed in linked
97	97	deposits under this chapter.
98	98	(b) The maximum amount of a loan under this chapter [to
99	99	process and market Texas agricultural crops] is $500,000. [The
100	100	maximum amount of a loan under this chapter to produce alternative
101	101	agricultural crops in this state is $250,000. The maximum amount of
102	102	a loan under this chapter to finance water conservation projects or
103	103	equipment for agricultural production purposes is $250,000. The
104	104	maximum amount of a loan under this chapter to finance production of
105	105	a crop declared eligible for natural disaster relief, as defined by
106	106	board rule, is $250,000. The maximum amount of a loan under this
107	107	chapter to finance a business in a rural area is $250,000.]
108	108	SECTION 1.05. Section 58.012, Agriculture Code, is amended
109	109	by amending Subsections (a), (b), and (c) and adding Subsection (g)
110	110	to read as follows:
111	111	(a) The authority is governed by a board of directors
112	112	composed of the commissioner of agriculture, the director of the
113	113	Institute for International Agribusiness Studies at Prairie View
114	114	A&M University, and nine [seven] members appointed by the
115	115	commissioner [governor with the advice and consent of the senate].
116	116	Members of the board must be appointed in the numbers specified and
117	117	from the following categories:
118	118	(1) one person who is an elected or appointed official
119	119	of a municipality or county;
120	120	(2) four persons who are knowledgeable about
121	121	agricultural lending practices;
122	122	(3) one person who is a representative of agricultural
123	123	businesses; [and]
124	124	(4) one person who is a representative of agriculture
125	125	related entities, including rural chambers of commerce,
126	126	foundations, trade associations, institutions of higher education,
127	127	or other entities involved in agricultural matters; and
128	128	(5) two persons who represent young farmers and the
129	129	interests of young farmers.
130	130	(b) The appointed members of the board serve staggered terms
131	131	of two years, with the terms of four [three] members expiring on
132	132	January 1 of each even-numbered year and the terms of five [four]
133	133	members expiring on January 1 of each odd-numbered year.
134	134	(c) Any vacancy occurring in an appointed position on the
135	135	board shall be filled by the commissioner [governor] for the
136	136	unexpired term.
137	137	(g) Notwithstanding Subsection (f), age may be considered
138	138	by the commissioner in making appointments under Subsection (a)(5).
139	139	SECTION 1.06. Section 58.013(a), Agriculture Code, is
140	140	amended to read as follows:
141	141	(a) The commissioner [governor] shall designate a member of
142	142	the board as the chairman of the board to serve in that capacity at
143	143	the pleasure of the commissioner [governor]. The board shall elect
144	144	a vice-chairman biennially from its members and shall elect a
145	145	secretary, a treasurer, and other officers it considers necessary.
146	146	SECTION 1.07. Section 58.0176(a), Agriculture Code, is
147	147	amended to read as follows:
148	148	(a) Before a member of the board may assume the member's
149	149	duties [and before the member may be confirmed by the senate], the
150	150	member must complete at least one course of the training program
151	151	established under this section.
152	152	SECTION 1.08. Sections 58.023(c) and (d), Agriculture Code,
153	153	are amended to read as follows:
154	154	(c) Eligible agricultural businesses or lenders
155	155	participating in the authority's programs shall pay the costs of
156	156	applying for, participating in, and administering and servicing the
157	157	program, in amounts the board considers reasonable and necessary.
158	158	The board shall charge an administrative fee for guaranteeing a
159	159	loan under Subchapter E that may not be less than one percent of the
160	160	amount of the guaranteed loan. Any costs not paid by the eligible
161	161	agricultural businesses or lenders shall be paid from the funds of
162	162	the authority, including those funds established from bond
163	163	proceeds.
164	164	(d) The board by rule shall adopt an agreement to be used
165	165	between a lender and an approved applicant under which the
166	166	authority makes a payment from the Texas agricultural fund for the
167	167	purpose of providing a reduced interest rate on a loan guaranteed to
168	168	a borrower [under this subchapter]. The agreement must require the
169	169	borrower to use the proceeds of the loan for the purposes of the
170	170	program under which the payment is made. The board shall adopt
171	171	rules to implement this subsection.
172	172	SECTION 1.09. Subchapter D, Chapter 58, Agriculture Code,
173	173	is amended by adding Section 58.041 to read as follows:
174	174	Sec. 58.041. ISSUANCE OF DEBT BY TEXAS PUBLIC FINANCE
175	175	AUTHORITY. (a) In this section, "debt instrument" means a note,
176	176	debenture, bond, or other evidence of indebtedness.
177	177	(b) The Texas Public Finance Authority has the exclusive
178	178	authority to act on behalf of the authority in issuing debt
179	179	instruments authorized to be issued by the authority. A reference
180	180	in law to a debt instrument issued by the authority, in the context
181	181	of a debt instrument issued on or after September 1, 2009, means a
182	182	debt instrument issued by the Texas Public Finance Authority on
183	183	behalf of the authority.
184	184	(c) Notwithstanding Section 58.034(e), the authority shall
185	185	pay all costs incurred by the Texas Public Finance Authority for
186	186	issuing debt instruments on behalf of the authority and associated
187	187	fees and expenses.
188	188	(d) When the board authorizes the issuance of debt
189	189	instruments to fund a loan, the authority shall notify the Texas
190	190	Public Finance Authority of the amount of the loan and the recipient
191	191	of the loan and request the Texas Public Finance Authority to issue
192	192	debt instruments in an amount necessary to fund the loan. The
193	193	authority and the Texas Public Finance Authority shall determine
194	194	the amount and time of a debt instrument issue to best provide funds
195	195	for one or multiple loans.
196	196	(e) The Texas Public Finance Authority, at the request of
197	197	the authority, may issue debt instruments to provide money to the
198	198	Texas agricultural fund.
199	199	(f) The Texas Public Finance Authority may sell debt
200	200	instruments in any manner it determines to be in the best interest
201	201	of the authority, except that it may not sell a debt instrument that
202	202	has not been approved by the attorney general and registered with
203	203	the comptroller.
204	204	(g) The authority, in consultation with the Texas Public
205	205	Finance Authority, shall adopt rules containing criteria for
206	206	evaluating the creditworthiness of loan applicants and the
207	207	financial feasibility of projects to be funded with debt
208	208	instruments issued by the Texas Public Finance Authority on behalf
209	209	of the authority.
210	210	(h) The Texas Public Finance Authority may enter into a
211	211	credit agreement for a debt instrument issued by the Texas Public
212	212	Finance Authority on behalf of the authority for a period and on
213	213	conditions approved by the Texas Public Finance Authority.
214	214	(i) This subsection applies only in relation to general
215	215	obligation debt instruments. To the extent other sources of revenue
216	216	available for payment of the authority's debts are insufficient and
217	217	in accordance with the Texas Constitution, general revenue is to be
218	218	appropriated to the Texas Public Finance Authority in an amount
219	219	determined by the Texas Public Finance Authority to be necessary to
220	220	pay the principal, premium if any, and interest on general
221	221	obligation debt instruments issued by the Texas Public Finance
222	222	Authority on behalf of the authority, and that amount shall be
223	223	specified in the biennial appropriations acts.
224	224	SECTION 1.10. The heading to Subchapter E, Chapter 58,
225	225	Agriculture Code, is amended to read as follows:
226	226	SUBCHAPTER E. AGRICULTURAL [YOUNG FARMER] LOAN GUARANTEE PROGRAM
227	227	SECTION 1.11. Section 58.051(2), Agriculture Code, is
228	228	amended to read as follows:
229	229	(2) "Eligible applicant" means a person applying for a
230	230	loan guarantee under this subchapter who[:
231	231	[(A) is at least 18 years of age but younger than
232	232	40 years of age; and
233	233	[(B)] complies with the application procedures
234	234	prescribed by this subchapter.
235	235	SECTION 1.12. The heading to Section 58.052, Agriculture
236	236	Code, is amended to read as follows:
237	237	Sec. 58.052. AGRICULTURAL [YOUNG FARMER] LOAN GUARANTEE
238	238	PROGRAM.
239	239	SECTION 1.13. Section 58.052, Agriculture Code, is amended
240	240	by amending Subsections (b), (c), and (e) and adding Subsection (f)
241	241	to read as follows:
242	242	(b) The board, either directly or through authority
243	243	delegated to the commissioner, may grant to an eligible applicant a
244	244	guarantee of a loan made by a commercial lender for the purposes
245	245	prescribed by this subchapter. The board by rule shall establish
246	246	tiered loan guarantee limits. To be eligible to be guaranteed under
247	247	this subchapter, a loan with a term of more than one year must have a
248	248	fixed interest rate [guarantee amount may not exceed the lesser of
249	249	$250,000 or 90 percent of the loan amount].
250	250	(c) The aggregate amount guaranteed under this subchapter
251	251	may not exceed the lesser of three-fourths of [twice] the amount
252	252	contained in the [young farmer loan guarantee account within the]
253	253	Texas agricultural fund or $12 million.
254	254	(e) The board shall adopt an agreement, to be used between a
255	255	commercial lender and an approved eligible applicant, under which
256	256	the program provides a payment from money in the Texas agricultural
257	257	fund [young farmer loan guarantee account] for the purpose of
258	258	providing a reduced interest rate on a loan guaranteed to a borrower
259	259	under this subchapter. The board shall adopt rules to implement
260	260	this subsection. The maximum rate reduction under this subsection
261	261	per year for each borrower may [shall] not exceed three percentage
262	262	points or an amount that results in $10,000 in interest savings for
263	263	the borrower for the year.
264	264	(f) The board by rule shall establish a certified lender
265	265	program under which the board may certify commercial lenders to
266	266	participate in the agricultural loan guarantee program in order to
267	267	expedite the processing of loan guarantee applications by the
268	268	board.
269	269	SECTION 1.14. Section 58.056, Agriculture Code, is amended
270	270	to read as follows:
271	271	Sec. 58.056. MONEY FOR LOAN GUARANTEE PROGRAM. The
272	272	authority may accept gifts and grants of money from the federal
273	273	government, local governments, private corporations, or other
274	274	persons for use in the agricultural [young farmer] loan guarantee
275	275	program. The legislature may appropriate money for the program.
276	276	SECTION 1.15. Sections 58.057(b), (c), and (d), Agriculture
277	277	Code, are transferred to Section 58.032, Agriculture Code,
278	278	relettered as Subsections (g), (h), and (i) of that section, and
279	279	amended to read as follows:
280	280	(g) [(b)] The fund includes [account consists of funds and
281	281	transfers made to the account,] grants and donations made for the
282	282	purposes of the programs administered by the Texas Agricultural
283	283	Finance Authority [the young farmer loan guarantee program, income
284	284	earned on money in the account,] and any other money received under
285	285	this chapter [subchapter]. Notwithstanding Section 404.071,
286	286	Government Code, income and interest earned on money in the fund
287	287	[account] shall be deposited to the credit of the fund [account].
288	288	[At the end of each state fiscal year the authority shall transfer
289	289	to the general credit of the Texas agricultural fund any interest
290	290	earned on the account that remains after payment of any
291	291	administrative expenses of the program.] The fund [account] is
292	292	exempt from the application of Section 403.095, Government Code.
293	293	(h) [(c)] The board may spend not more than $100,000 during
294	294	each fiscal year from income earned on the fund [account] and from
295	295	application fees collected by the authority under Section 58.053 to
296	296	pay the costs of administering the program.
297	297	(i) [(d)] The board shall attempt to administer the fund in
298	298	a manner that makes private donations to the fund an eligible
299	299	itemized deduction for federal income taxation purposes.
300	300	SECTION 1.16. Chapter 58, Agriculture Code, is amended by
301	301	adding Subchapter F to read as follows:
302	302	SUBCHAPTER F. YOUNG FARMER INTEREST RATE REDUCTION PROGRAM
303	303	Sec. 58.071. DEFINITIONS. In this subchapter:
304	304	(1) "Eligible lending institution" means a financial
305	305	institution that makes commercial loans, is either a depository of
306	306	state funds or an institution of the Farm Credit System
307	307	headquartered in this state, and agrees to participate in the young
308	308	farmer interest rate reduction program and to provide collateral
309	309	equal to the amount of linked deposits placed with it.
310	310	(2) "Linked deposit" means a time deposit governed by
311	311	a written deposit agreement between the state and an eligible
312	312	lending institution that provides:
313	313	(A) that the eligible lending institution pay
314	314	interest on the deposit at a rate that is not less than the greater
315	315	of:
316	316	(i) the current market rate of a United
317	317	States treasury bill or note of comparable maturity minus three
318	318	percent; or
319	319	(ii) 0.5 percent;
320	320	(B) that the state not withdraw any part of the
321	321	deposit before the expiration of a period set by a written advance
322	322	notice of the intention to withdraw; and
323	323	(C) that the eligible lending institution agree
324	324	to lend the value of the deposit to an eligible borrower at a
325	325	maximum rate that is the linked deposit rate plus a maximum of four
326	326	percent.
327	327	Sec. 58.072. YOUNG FARMER INTEREST RATE REDUCTION PROGRAM.
328	328	(a) The board shall establish a young farmer interest rate
329	329	reduction program to promote the creation and expansion of
330	330	agricultural businesses by young people in this state.
331	331	(b) To be eligible to participate in the young farmer
332	332	interest rate reduction program, an applicant must be at least 18
333	333	years of age but younger than 45 years of age.
334	334	(c) The board shall approve or disapprove any and all
335	335	applications under this subchapter, provided that the board may
336	336	delegate this authority to the commissioner.
337	337	(d) The board shall adopt rules for the loan portion of the
338	338	young farmer interest rate reduction program.
339	339	(e) In order to participate in the young farmer interest
340	340	rate reduction program, an eligible lending institution may solicit
341	341	loan applications from eligible applicants.
342	342	(f) After reviewing an application and determining that the
343	343	applicant is eligible and creditworthy, the eligible lending
344	344	institution shall send the application for a linked deposit loan to
345	345	the administrator of the authority.
346	346	(g) The eligible lending institution shall certify the
347	347	interest rate applicable to the specific eligible applicant and
348	348	attach it to the application sent to the administrator of the
349	349	authority.
350	350	(h) After reviewing each loan application under this
351	351	subchapter, the board or the commissioner shall recommend to the
352	352	comptroller the acceptance or rejection of the application.
353	353	(i) After acceptance of the application, the comptroller
354	354	shall place a linked deposit with the applicable eligible lending
355	355	institution for the period the comptroller considers appropriate.
356	356	The comptroller may not place a deposit for a period extending
357	357	beyond the state fiscal biennium in which it is placed. Subject to
358	358	the limitation described by Section 58.075, the comptroller may
359	359	place time deposits at an interest rate described by Section
360	360	58.071(2).
361	361	(j) Before the placing of a linked deposit, the eligible
362	362	lending institution and the state, represented by the comptroller,
363	363	shall enter into a written deposit agreement containing the
364	364	conditions on which the linked deposit is made.
365	365	(k) If a lending institution holding linked deposits ceases
366	366	to be either a state depository or a Farm Credit System institution
367	367	headquartered in this state, the comptroller may withdraw the
368	368	linked deposits.
369	369	(l) The board may adopt rules that create a procedure for
370	370	determining priorities for loans granted under this subchapter.
371	371	Each rule adopted must state the policy objective of the rule.
372	372	(m) A lending institution is not ineligible to participate
373	373	in the young farmer interest rate reduction program solely because
374	374	a member of the board is also an officer, director, or employee of
375	375	the lending institution, provided that a board member shall recuse
376	376	himself or herself from any action taken by the board on an
377	377	application involving a lending institution by which the board
378	378	member is employed or for which the board member serves as an
379	379	officer or director.
380	380	(n) Linked deposits under the young farmer interest rate
381	381	reduction program shall be funded from the Texas agricultural fund.
382	382	Sec. 58.073. COMPLIANCE. (a) On accepting a linked
383	383	deposit, an eligible lending institution must loan money to
384	384	eligible applicants in accordance with the deposit agreement and
385	385	this subchapter. The eligible lending institution shall forward a
386	386	compliance report to the board.
387	387	(b) The board shall monitor compliance with this subchapter
388	388	and inform the comptroller of noncompliance on the part of an
389	389	eligible lending institution.
390	390	Sec. 58.074. STATE LIABILITY PROHIBITED. The state is not
391	391	liable to an eligible lending institution for payment of the
392	392	principal, interest, or any late charges on a loan made under this
393	393	subchapter. A delay in payment or default on a loan by a borrower
394	394	does not affect the validity of the deposit agreement. Linked
395	395	deposits are not an extension of the state's credit within the
396	396	meaning of any state constitutional prohibition.
397	397	Sec. 58.075. LIMITATIONS IN PROGRAM. (a) At any one time,
398	398	not more than one-fourth of the amount of money in the Texas
399	399	agricultural fund may be placed in linked deposits under this
400	400	subchapter.
401	401	(b) The maximum amount of a loan under this subchapter is
402	402	$500,000.
403	403	(c) A loan granted under this subchapter may be used for any
404	404	agriculture-related operating expense, including the purchase or
405	405	lease of land or fixed assets acquisition or improvement, as
406	406	identified in the application.
407	407	SECTION 1.17. Chapter 58, Agriculture Code, is amended by
408	408	adding Subchapter G to read as follows:
409	409	SUBCHAPTER G. YOUNG FARMER GRANT PROGRAM
410	410	Sec. 58.091. GRANT PROGRAM. (a) The authority shall
411	411	administer a young farmer grant program. A grant must be for the
412	412	purpose of fostering the creation and expansion of agricultural
413	413	businesses by young people in this state.
414	414	(b) The board shall adopt rules governing the operation of
415	415	the program and selection criteria for grant recipients.
416	416	(c) The board shall select grant recipients.
417	417	Sec. 58.092. ELIGIBILITY. To be eligible to receive a grant
418	418	under this subchapter, a person must:
419	419	(1) be an agricultural producer who is at least 18
420	420	years of age but younger than 45 years of age; and
421	421	(2) provide matching funds in the amount of not less
422	422	than one dollar for each dollar of grant money received.
423	423	Sec. 58.093. AMOUNT OF GRANTS. A grant under the young
424	424	farmer grant program may not be less than $5,000 or more than
425	425	$20,000.
426	426	Sec. 58.094. APPLICATIONS. (a) The authority shall accept
427	427	grant applications during two application periods each year.
428	428	(b) Applicants shall submit an application on a form
429	429	approved by the board or the board's designee.
430	430	Sec. 58.095. FUNDING. The source of funds for the young
431	431	farmer grant program is the Texas agricultural fund.
432	432	SECTION 1.18. Section 1232.101, Government Code, is amended
433	433	to read as follows:
434	434	Sec. 1232.101. ISSUANCE OF BONDS FOR CERTAIN STATE
435	435	AGENCIES. With respect to all bonds authorized to be issued by or
436	436	on behalf of the adjutant general's department, Parks and Wildlife
437	437	Department, Texas Agricultural Finance Authority, Texas Low-Level
438	438	Radioactive Waste Disposal Authority, Stephen F. Austin State
439	439	University, Midwestern State University, and Texas Southern
440	440	University, the authority has the exclusive authority to act on
441	441	behalf of those entities in issuing bonds on their behalf. In
442	442	connection with those issuances and with the issuance of refunding
443	443	bonds on behalf of those entities, the authority is subject to all
444	444	rights, duties, and conditions surrounding issuance previously
445	445	applicable to the issuing entity under the statute authorizing the
446	446	issuance. A reference in an authorizing statute to the entity on
447	447	whose behalf the bonds are being issued applies equally to the
448	448	authority in its capacity as issuer on behalf of the entity.
449	449	SECTION 1.19. Section 1372.028(d), Government Code, is
450	450	amended to read as follows:
451	451	(d) An issuer is not required to provide the statement
452	452	required by Subsection (c)(3)(F) if the issuer:
453	453	(1) is an issuer of a state-voted issue;
454	454	(2) is the Texas Department of Housing and Community
455	455	Affairs[, the Texas Agricultural Finance Authority,] or the Texas
456	456	State Affordable Housing Corporation; or
457	457	(3) provides evidence that one or more binding
458	458	contracts have been entered into, or other evidence acceptable to
459	459	the board as described by program rule, to spend the unexpended
460	460	proceeds by the later of:
461	461	(A) 12 months after the date the board receives
462	462	the application; or
463	463	(B) December 31 of the program year for which the
464	464	application is filed.
465	465	SECTION 1.20. Section 502.174(b), Transportation Code, is
466	466	amended to read as follows:
467	467	(b) The county assessor-collector shall send an assessment
468	468	collected under this section to the comptroller, at the time and in
469	469	the manner prescribed by the Texas Agricultural Finance Authority,
470	470	for deposit in the Texas agricultural fund [to the credit of the
471	471	young farmer loan guarantee account].
472	472	SECTION 1.21. The following provisions are repealed:
473	473	(1) Section 44.001(3), Agriculture Code;
474	474	(2) Section 58.0173(c), Agriculture Code;
475	475	(3) Section 58.0211(b), Agriculture Code;
476	476	(4) Sections 58.057(a) and (e), Agriculture Code; and
477	477	(5) Section 1372.0235, Government Code.
478	478	SECTION 1.22. On the effective date of this Act:
479	479	(1) the young farmer loan guarantee program under
480	480	Subchapter E, Chapter 58, Agriculture Code, as that subchapter
481	481	existed before amendment by this Act, is abolished; and
482	482	(2) the agricultural loan guarantee program under
483	483	Subchapter E, Chapter 58, Agriculture Code, as amended by this Act,
484	484	is established.
485	485	SECTION 1.23. On the effective date of this Act, the young
486	486	farmer loan guarantee account is abolished. All money in the
487	487	account on that date remains in the Texas agricultural fund. All
488	488	deposits purportedly made to the account on or after that date shall
489	489	be deposited in the Texas agricultural fund. All references in law
490	490	or rule to the young farmer loan guarantee account mean the Texas
491	491	agricultural fund.
492	492	SECTION 1.24. (a) As soon as practicable on or after the
493	493	effective date of this Act, the commissioner of agriculture shall
494	494	appoint two members to the board of directors of the Texas
495	495	Agricultural Finance Authority who represent young farmers and the
496	496	interests of young farmers. In appointing those members, the
497	497	commissioner shall appoint one person to a term expiring January 1,
498	498	2010, and one to a term expiring January 1, 2011.
499	499	(b) The changes in law made by this Act by the amendment of
500	500	Section 58.012, Agriculture Code, do not affect the entitlement of
501	501	a member of the board of directors of the Texas Agricultural Finance
502	502	Authority serving on the board immediately before the effective
503	503	date of this Act to continue to serve on the board and carry out the
504	504	board's functions for the remainder of the member's term. The
505	505	changes in law apply only to a member appointed on or after the
506	506	effective date of this Act. This Act does not prohibit a person who
507	507	is a member of the board on the effective date of this Act from being
508	508	reappointed to the board if the person has the qualifications
509	509	required for a member under Section 58.012, Agriculture Code, as
510	510	amended by this Act.
511	511	ARTICLE 2. PRESCRIBED BURNING BOARD
512	512	SECTION 2.01. Section 153.001, Natural Resources Code, is
513	513	amended to read as follows:
514	514	Sec. 153.001. DEFINITIONS [DEFINITION]. In this chapter:
515	515	(1) "Board" [, "board"] means the Prescribed Burning
516	516	Board.
517	517	(2) "Department" means the Department of Agriculture.
518	518	SECTION 2.02. Subchapter A, Chapter 153, Natural Resources
519	519	Code, is amended by adding Section 153.004 to read as follows:
520	520	Sec. 153.004. PRESCRIBED BURNING IN STATE OF EMERGENCY OR
521	521	DISASTER. A certified and insured prescribed burn manager may
522	522	conduct a burn in a county in which a state of emergency or state of
523	523	disaster has been declared by the governor or the president of the
524	524	United States, unless the declaration expressly prohibits all
525	525	outdoor burning.
526	526	SECTION 2.03. Section 153.041(a), Natural Resources Code,
527	527	is amended to read as follows:
528	528	(a) The Prescribed Burning Board is established within the
529	529	department [Department of Agriculture] and is composed of:
530	530	(1) an employee of the Texas Forest Service designated
531	531	by the director of the Texas Forest Service;
532	532	(2) an employee of the Parks and Wildlife Department
533	533	appointed by the executive director of the Parks and Wildlife
534	534	Department;
535	535	(3) an employee of the Texas Commission on
536	536	Environmental Quality [Natural Resource Conservation Commission]
537	537	appointed by the executive director of the Texas Commission on
538	538	Environmental Quality [Natural Resource Conservation Commission];
539	539	(4) an employee of the Texas AgriLife [Agricultural]
540	540	Extension Service appointed by the executive director of the Texas
541	541	AgriLife [Agricultural] Extension Service;
542	542	(5) an employee of [the] Texas AgriLife Research
543	543	[Agricultural Experiment Station] appointed by the director of
544	544	[the] Texas AgriLife Research [Agricultural Experiment Station];
545	545	(6) an employee of the Texas Tech University Range and
546	546	Wildlife Department appointed by the dean of the Texas Tech
547	547	University College of Agricultural Sciences and Natural Resources;
548	548	(7) an employee of the department [Department of
549	549	Agriculture] appointed by the commissioner of agriculture;
550	550	(8) an employee of the State Soil and Water
551	551	Conservation Board appointed by the executive director of the State
552	552	Soil and Water Conservation Board; and
553	553	(9) five persons who are:
554	554	(A) owners of agricultural land, as that term is
555	555	defined by Section 153.081;
556	556	(B) self-employed or employed by a person other
557	557	than a governmental entity; and
558	558	(C) appointed by the commissioner of
559	559	agriculture.
560	560	SECTION 2.04. Section 153.044, Natural Resources Code, is
561	561	amended to read as follows:
562	562	Sec. 153.044. SUNSET PROVISION. The Prescribed Burning
563	563	Board is subject to Chapter 325, Government Code (Texas Sunset
564	564	Act). The board shall be reviewed during the period in which the
565	565	Department of Agriculture is reviewed [Unless continued in
566	566	existence as provided by that chapter, the board is abolished and
567	567	this chapter expires September 1, 2009].
568	568	SECTION 2.05. Section 153.046, Natural Resources Code, is
569	569	amended to read as follows:
570	570	Sec. 153.046. DUTIES. The board shall:
571	571	(1) establish standards for prescribed burning;
572	572	(2) develop a comprehensive training curriculum for
573	573	prescribed burn managers;
574	574	(3) establish standards for certification,
575	575	recertification, and training for prescribed burn managers;
576	576	(4) establish minimum education and professional
577	577	requirements for instructors for the approved curriculum; and
578	578	(5) establish minimum insurance requirements for
579	579	certified and insured prescribed burn managers.
580	580	SECTION 2.06. Section 153.047, Natural Resources Code, is
581	581	amended to read as follows:
582	582	Sec. 153.047. PRESCRIBED BURNING STANDARDS. Minimum
583	583	standards established by the board for prescribed burning must:
584	584	(1) ensure that prescribed burning is the controlled
585	585	application of fire to naturally occurring or naturalized
586	586	vegetative fuels under specified environmental conditions in
587	587	accordance with a written prescription plan:
588	588	(A) designed to confine the fire to a
589	589	predetermined area and to accomplish planned land management
590	590	objectives; and
591	591	(B) that conforms to the standards established
592	592	under this section;
593	593	(2) require that at least one certified and insured
594	594	prescribed burn manager is present on site during the conduct of the
595	595	prescribed burn;
596	596	(3) establish appropriate guidelines for size of
597	597	burning crews sufficient to:
598	598	(A) conduct the burn in accordance with the
599	599	prescription plan; and
600	600	(B) provide adequate protection for the safety of
601	601	persons and of adjacent property;
602	602	(4) include standards for notification to adjacent
603	603	land owners, the Texas Commission on Environmental Quality [Natural
604	604	Resource Conservation Commission], and local fire authorities; and
605	605	(5) include minimum insurance requirements for
606	606	certified and insured prescribed burn managers.
607	607	SECTION 2.07. Sections 153.048(c) and (e), Natural
608	608	Resources Code, are amended to read as follows:
609	609	(c) The certification is for two [five] years.
610	610	(e) The board shall maintain a register of certified and
611	611	insured prescribed burn managers and dates of completion of initial
612	612	and continuing training.
613	613	SECTION 2.08. Sections 153.081(a) and (b), Natural
614	614	Resources Code, are amended to read as follows:
615	615	(a) Subject to Section 153.082, an owner, lessee, or
616	616	occupant of agricultural land is not liable for property damage or
617	617	for injury or death to persons caused by or resulting from
618	618	prescribed burning conducted on the land owned by, leased by, or
619	619	occupied by the person if the prescribed burning is conducted under
620	620	the supervision of a certified and insured prescribed burn manager.
621	621	(b) This section does not apply to an owner, lessee, or
622	622	occupant of agricultural land who is a certified and insured
623	623	prescribed burn manager and conducts a burn on that land.
624	624	SECTION 2.09. Section 153.082, Natural Resources Code, is
625	625	amended to read as follows:
626	626	Sec. 153.082. INSURANCE. The limitation on liability under
627	627	Section 153.081 does not apply to an owner, lessee, or occupant of
628	628	agricultural land unless the certified and insured prescribed burn
629	629	manager conducting a burn on the land has liability insurance
630	630	coverage:
631	631	(1) of at least $1 million for each single occurrence
632	632	of bodily injury or death, or injury to or destruction of property;
633	633	and
634	634	(2) with a policy period minimum aggregate limit of at
635	635	least $2 million.
636	636	SECTION 2.10. Chapter 153, Natural Resources Code, is
637	637	amended by adding Subchapter D to read as follows:
638	638	SUBCHAPTER D. COMPLAINTS, ENFORCEMENT, AND PENALTIES
639	639	Sec. 153.101. COMPLAINTS. The department shall receive and
640	640	process complaints concerning prescribed burn managers in the
641	641	manner described by Section 12.026, Agriculture Code, and rules
642	642	adopted under that section.
643	643	Sec. 153.102. DISCIPLINARY ACTION; SCHEDULE OF SANCTIONS.
644	644	(a) The department may impose an administrative sanction,
645	645	including an administrative penalty, as provided by Sections
646	646	12.020, 12.0201, 12.0202, and 12.0261, Agriculture Code, for a
647	647	violation of this chapter.
648	648	(b) The department by rule shall adopt a schedule of the
649	649	disciplinary sanctions that the department may impose under this
650	650	chapter. In adopting the schedule of sanctions, the department
651	651	shall ensure that the severity of the sanction imposed is
652	652	appropriate to the type of violation or conduct that is the basis
653	653	for disciplinary action.
654	654	(c) In determining the appropriate disciplinary action,
655	655	including the amount of any administrative penalty to assess, the
656	656	department shall consider:
657	657	(1) whether the person:
658	658	(A) is being disciplined for multiple violations
659	659	of either this chapter or a rule or order adopted under this
660	660	chapter; or
661	661	(B) has previously been the subject of
662	662	disciplinary action by the department under this chapter and has
663	663	previously complied with department rules and this chapter;
664	664	(2) the seriousness of the violation;
665	665	(3) the threat to public safety; and
666	666	(4) any mitigating factors.
667	667	Sec. 153.103. INJUNCTION. (a) The department may apply to
668	668	a district court in any county for an injunction to restrain a
669	669	person who is not a certified and insured prescribed burn manager
670	670	from representing that the person is a certified and insured
671	671	prescribed burn manager.
672	672	(b) At the request of the department, the attorney general
673	673	shall initiate and conduct an action in a district court in the
674	674	state's name to obtain an injunction under this section.
675	675	Sec. 153.104. EMERGENCY SUSPENSION. (a) On determining
676	676	that a certification holder is engaged in or about to engage in a
677	677	violation of this chapter and that the certification holder's
678	678	continued practice constitutes an immediate threat to the public
679	679	welfare, the department may issue an order suspending the
680	680	certification holder's certification without notice or a hearing.
681	681	The department shall immediately serve notice of the suspension on
682	682	the certification holder.
683	683	(b) The notice required by Subsection (a) must:
684	684	(1) be personally served on the certification holder
685	685	or be sent by registered or certified mail, return receipt
686	686	requested, to the certification holder's last known address
687	687	according to the board's records;
688	688	(2) state the grounds for the suspension; and
689	689	(3) inform the certification holder of the right to a
690	690	hearing on the suspension order.
691	691	(c) A certification holder whose certification is suspended
692	692	under this section is entitled to request a hearing on the
693	693	suspension not later than the 30th day after the date of receipt of
694	694	notice of the suspension. Not later than the fifth day after the
695	695	date a hearing is requested, the department shall issue a notice of
696	696	hearing.
697	697	(d) The hearing shall be held not later than the fifth day
698	698	after the date notice of hearing is issued, unless the parties agree
699	699	to a later date. A hearing on a suspension order under this section
700	700	is subject to Chapter 2001, Government Code. If the hearing is
701	701	before an administrative law judge, after the hearing, the
702	702	administrative law judge shall recommend to the board whether to
703	703	uphold, vacate, or modify the suspension order.
704	704	(e) A suspension order issued under this section remains in
705	705	effect until further action is taken by the department. If the
706	706	administrative law judge's recommendation under Subsection (d) is
707	707	to vacate the order, the department shall determine whether to
708	708	vacate the order not later than the second day after the date of the
709	709	recommendation.
710	710	SECTION 2.11. (a) Section 153.048(c), Natural Resources
711	711	Code, as amended by this Act, applies to a certification issued or
712	712	renewed after the effective date of this Act. A certification
713	713	issued or renewed before the effective date of this Act is governed
714	714	by the law in effect on the date the certification was issued or
715	715	renewed, and the former law is continued in effect for that purpose.
716	716	(b) Sections 153.102, 153.103, and 153.104, Natural
717	717	Resources Code, as added by this Act, apply only to conduct that
718	718	occurs on or after the effective date of this Act. Conduct that
719	719	occurs before the effective date of this Act is governed by the law
720	720	in effect when the conduct occurred, and the former law is continued
721	721	in effect for that purpose.
722	722	ARTICLE 3. TEXAS-ISRAEL EXCHANGE FUND BOARD
723	723	SECTION 3.01. The heading to Chapter 45, Agriculture Code,
724	724	is amended to read as follows:
725	725	CHAPTER 45. TEXAS-ISRAEL EXCHANGE RESEARCH PROGRAM [FUND]
726	726	SECTION 3.02. Section 45.001, Agriculture Code, is amended
727	727	to read as follows:
728	728	Sec. 45.001. LEGISLATIVE FINDINGS; PURPOSE. (a) The
729	729	legislature finds that Texas and Israel have many interests in
730	730	common. They face many of the same difficulties in agriculture; the
731	731	geography of both areas produces semiarid climatic conditions;
732	732	there is present in both areas a rising demand for a limited supply
733	733	of water coupled with increasing pressures to minimize the use of
734	734	energy in all aspects of agriculture. Scientific and technological
735	735	cooperatives already produce close ties between the two areas while
736	736	engaging in binational projects for scientific and industrial
737	737	research and development.
738	738	A program [fund] to support joint agricultural research and
739	739	development by, and the development of trade and business relations
740	740	between, Texas and Israel will address common problems and make
741	741	substantial contributions to the development of agriculture,
742	742	trade, and business in both areas. Since Texas has long emphasized
743	743	broad-based agricultural research and Israel has originated and
744	744	developed agricultural technologies designed to maximize
745	745	production with minimal use of resources such as water and labor,
746	746	each of the two areas will benefit by sharing information and
747	747	expertise.
748	748	(b) The purpose of this chapter is to:
749	749	(1) establish a program [fund] to promote and support
750	750	practical and applied agricultural research and development that
751	751	will result in mutual benefit to Texas and Israel and will help to
752	752	provide solutions to food and fiber production problems wherever
753	753	they exist, particularly those relating to water conservation; and
754	754	(2) establish a program of mutual cooperation that
755	755	will foster the development of trade, mutual assistance, and
756	756	business relations between Texas and Israel.
757	757	SECTION 3.03. Section 45.002, Agriculture Code, is amended
758	758	to read as follows:
759	759	Sec. 45.002. DEFINITION [DEFINITIONS]. In this chapter,[:
760	760	[(1)] "applied [Applied] research" means the process
761	761	of assembling knowledge gained by careful and diligent search and
762	762	studious inquiry and examination and using that knowledge to solve
763	763	practical, real-world problems.
764	764	[(2) "Board" means the Texas-Israel Exchange Fund
765	765	Board.
766	766	[(3) "Fund" means the Texas-Israel Exchange Fund.]
767	767	SECTION 3.04. Section 45.005, Agriculture Code, is amended
768	768	to read as follows:
769	769	Sec. 45.005. GENERAL FUNCTIONS, POWERS, AND DUTIES. (a)
770	770	The department may establish a binational program to support joint
771	771	agricultural research and development with Israel. The scope of
772	772	agricultural research and development which the program [fund] may
773	773	promote and support encompasses all scientific activities related
774	774	to agriculture, including production, processing, marketing, and
775	775	agricultural services, with emphasis on the support of applied
776	776	research to improve water, labor, and energy utilization in
777	777	agriculture.
778	778	(b) The program [fund] shall support applied research in
779	779	areas of potential mutual interest, including:
780	780	(1) water conservation;
781	781	(2) water management and use;
782	782	(3) soil management and conservation;
783	783	(4) innovative sources of energy for agricultural
784	784	production;
785	785	(5) environmental aspects of agricultural technology;
786	786	(6) intensive crop production; and
787	787	(7) agricultural engineering and processing.
788	788	(c) The program [fund] may undertake agricultural research
789	789	and development projects of mutual benefit that are located in
790	790	Texas, Israel, or any other location considered advisable by the
791	791	department or suggested by the advisory committee [boards].
792	792	(d) The department [fund] may make research or development
793	793	grants or loans to public or private entities who intend to carry
794	794	out the stated objectives of the program [fund].
795	795	(e) The program [fund] shall encourage or support the
796	796	exchange of agricultural producers, scientists, teachers,
797	797	students, or other types of agricultural experts between the two
798	798	cooperating areas of Texas and Israel.
799	799	(f) The program [fund] shall encourage and support [a
800	800	program of] mutual cooperation that will foster the development of
801	801	trade, mutual assistance, and business relations between Texas and
802	802	Israel.
803	803	SECTION 3.05. Sections 45.007(b) and (d), Agriculture Code,
804	804	are amended to read as follows:
805	805	(b) The department [board] may accept gifts and grants from
806	806	the federal government, state government, and private sources, as
807	807	well as legislative appropriations to carry out the purposes of
808	808	this chapter. The use of gifts and grants other than legislative
809	809	appropriation is subject only to limitations contained in the gift
810	810	or grant.
811	811	(d) The department [board] shall make an annual accounting
812	812	of all money received, awarded, and expended during the year under
813	813	this chapter to the legislative committees responsible for
814	814	agricultural issues.
815	815	SECTION 3.06. Chapter 45, Agriculture Code, is amended by
816	816	adding Section 45.009 to read as follows:
817	817	Sec. 45.009. TEXAS-ISREAL EXCHANGE ADVISORY COMMITTEE. The
818	818	department may establish a binational agricultural research
819	819	advisory committee to provide guidance and direction on activities
820	820	conducted under this chapter and the expenditure of money
821	821	appropriated for the purposes of this chapter.
822	822	SECTION 3.07. (a) The Texas-Israel Exchange Fund Board and
823	823	the Texas-Israel Exchange Fund are abolished.
824	824	(b) The following provisions of the Agriculture Code are
825	825	repealed:
826	826	(1) Section 45.003;
827	827	(2) Section 45.004;
828	828	(3) Section 45.006;
829	829	(4) Sections 45.007(a) and (c); and
830	830	(5) Section 45.008.
831	831	ARTICLE 4. STRUCTURE OF CERTAIN BOARDS AND ADVISORY COMMITTEES
832	832	SECTION 4.01. Chapter 50B, Agriculture Code, is amended by
833	833	adding Section 50B.0015 to read as follows:
834	834	Sec. 50B.0015. DEFINITION. In this chapter, "committee"
835	835	means the wine industry development and marketing advisory
836	836	committee.
837	837	SECTION 4.02. Section 50B.002, Agriculture Code, is amended
838	838	to read as follows:
839	839	Sec. 50B.002. WINE INDUSTRY DEVELOPMENT AND MARKETING [;]
840	840	ADVISORY COMMITTEE. (a) The commissioner shall [may] appoint a
841	841	wine industry development and marketing advisory committee to:
842	842	(1) develop a long-term vision and marketable identity
843	843	for the wine industry in the state that take into consideration
844	844	future industry development, funding, research, educational
845	845	programming, risk management, and marketing; and
846	846	(2) assist the commissioner in establishing and
847	847	implementing the Texas Wine Marketing Assistance Program under
848	848	Chapter 110, Alcoholic Beverage Code.
849	849	(b) The committee consists of members appointed by the
850	850	commissioner who represent a diverse cross-section of the wine
851	851	industry, including representatives of:
852	852	(1) grape growers;
853	853	(2) wineries;
854	854	(3) wholesalers;
855	855	(4) package stores;
856	856	(5) retailers;
857	857	(6) researchers;
858	858	(7) consumers;
859	859	(8) the department; and
860	860	(9) the Texas Alcoholic Beverage Commission.
861	861	(c) The members of the committee serve without
862	862	compensation.
863	863	(d) A member of the committee serves at the pleasure of the
864	864	commissioner for a term of two years. The commissioner may
865	865	reappoint a member to the committee.
866	866	(e) The commissioner shall select a presiding officer from
867	867	among the members and adopt rules governing the operation of the
868	868	committee.
869	869	(f) The committee shall meet as necessary to provide
870	870	guidance to the commissioner.
871	871	SECTION 4.03. Sections 62.002(a) and (d), Agriculture Code,
872	872	are amended to read as follows:
873	873	(a) The State Seed and Plant Board is an agency of the state.
874	874	The board is composed of [six members appointed by the governor with
875	875	the advice and consent of the senate. Membership must include]:
876	876	(1) one individual, appointed by the president of
877	877	Texas A&M University, from the Soils and Crop Sciences Department,
878	878	Texas Agricultural Experiment Station, Texas A&M [A & M]
879	879	University;
880	880	(2) one individual, appointed by the president of
881	881	Texas Tech University, from the Department of Plant and Soil
882	882	Sciences, Texas Tech University;
883	883	(3) one individual, appointed by the commissioner,
884	884	licensed as a Texas Foundation, Registered, or Certified seed or
885	885	plant producer who is not employed by a public institution;
886	886	(4) one individual, appointed by the commissioner,
887	887	who sells Texas Foundation, Registered, or Certified seed or
888	888	plants;
889	889	(5) one individual, appointed by the commissioner,
890	890	actively engaged in farming but not a producer or seller of Texas
891	891	Foundation, Registered, or Certified seed or plants; and
892	892	(6) the head of the seed division of the department.
893	893	(d) The commissioner [governor] shall designate a member of
894	894	the board as the chairman to serve in that capacity at the pleasure
895	895	of the commissioner [governor]. The board annually shall elect a
896	896	vice-chairman and secretary. The board shall meet at times and
897	897	places determined by the chairman.
898	898	SECTION 4.04. Section 62.0027(a), Agriculture Code, is
899	899	amended to read as follows:
900	900	(a) Before a member of the board may assume the member's
901	901	duties [and before the member may be confirmed by the senate], the
902	902	member must complete at least one course of the training program
903	903	established under this section.
904	904	SECTION 4.05. Sections 103.003(a) and (f), Agriculture
905	905	Code, are amended to read as follows:
906	906	(a) The Produce Recovery Fund Board is composed of five
907	907	members appointed by the commissioner [governor with the advice and
908	908	consent of the senate]. Two members must be producers, one must be
909	909	a license holder licensed under Chapter 101, and two must be members
910	910	of the general public.
911	911	(f) The commissioner [governor] shall designate a member of
912	912	the board as the chairman of the board to serve in that capacity at
913	913	the pleasure of the commissioner [governor].
914	914	SECTION 4.06. Section 103.019(a), Agriculture Code, is
915	915	amended to read as follows:
916	916	(a) Before a member of the board may assume the member's
917	917	duties [and before the member may be confirmed by the senate], the
918	918	member must complete at least one course of the training program
919	919	established under this section.
920	920	SECTION 4.07. Section 110.002(b), Alcoholic Beverage Code,
921	921	is amended to read as follows:
922	922	(b) The commissioner, in consultation with the advisory
923	923	committee established under Section 50B.002, Agriculture Code
924	924	[110.003], shall adopt rules as necessary to implement the program.
925	925	SECTION 4.08. The following statutes are repealed:
926	926	(1) Section 62.0023(c), Agriculture Code;
927	927	(2) Sections 103.003(b) and 103.017(c), Agriculture
928	928	Code; and
929	929	(3) Section 110.003, Alcoholic Beverage Code.
930	930	SECTION 4.09. On the effective date of this Act, the Texas
931	931	Wine Marketing Assistance Program advisory committee and the wine
932	932	industry development advisory committee are abolished. The
933	933	commissioner of agriculture may appoint a person who previously
934	934	served on either of those committees to the wine industry
935	935	development and marketing advisory committee established under
936	936	Section 50B.002, Agriculture Code, as amended by this Act.
937	937	SECTION 4.10. The changes in law made by this Act by the
938	938	amendment of Sections 62.002 and 103.003, Agriculture Code, do not
939	939	affect the entitlement of a member serving on the State Seed and
940	940	Plant Board or Produce Recovery Fund Board immediately before the
941	941	effective date of this Act to continue to serve as a board member
942	942	for the remainder of the member's term. The changes in law apply
943	943	only to a member appointed on or after the effective date of this
944	944	Act.
945	945	ARTICLE 5. CERTAIN AGRICULTURAL REGULATORY PROGRAMS
946	946	SECTION 5.01. Section 13.251, Agriculture Code, is amended
947	947	to read as follows:
948	948	Sec. 13.251. DEFINITION. In this subchapter, "public
949	949	weigher" means a business certified under this subchapter [person
950	950	who is elected or appointed] to issue an official certificate
951	951	declaring the accurate weight or measure of a commodity that the
952	952	business [person] is requested to weigh.
953	953	SECTION 5.02. Section 13.255, Agriculture Code, is amended
954	954	to read as follows:
955	955	Sec. 13.255. CERTIFICATE. (a) A public weigher[, whether
956	956	elected or appointed, or deputy public weigher] may not officially
957	957	weigh a commodity unless the weigher has obtained from the
958	958	department a certificate of authority.
959	959	(b) A [state public weigher must submit a nonrefundable fee,
960	960	as provided by department rule, with the application for a
961	961	certificate of authority. A county public weigher or a deputy]
962	962	public weigher must submit a fee, as provided by department rule,
963	963	with the application for a certificate of authority.
964	964	SECTION 5.03. Section 13.2555, Agriculture Code, is amended
965	965	to read as follows:
966	966	Sec. 13.2555. REVOCATION, MODIFICATION, OR SUSPENSION OF
967	967	CERTIFICATE. (a) The department shall revoke, modify, or suspend
968	968	the certificate of authority of a [an appointed public weigher or a
969	969	deputy of an appointed county] public weigher, assess an
970	970	administrative penalty, place on probation the public weigher
971	971	[person] whose certificate has been suspended, or reprimand a [an
972	972	appointed public weigher or a deputy of an appointed county] public
973	973	weigher for a violation of this subchapter or a rule adopted by the
974	974	department under this subchapter.
975	975	(b) If a certificate suspension is probated, the department
976	976	may require the public weigher [person] to:
977	977	(1) report regularly to the department on matters that
978	978	are the basis of the probation;
979	979	(2) limit practice to the areas prescribed by the
980	980	department; or
981	981	(3) continue or renew professional education until the
982	982	public weigher [person] attains a degree of skill satisfactory to
983	983	the department in those areas that are the basis of the probation.
984	984	(c) If the department proposes to revoke, modify, or suspend
985	985	a public weigher's [person's] certificate, the public weigher
986	986	[person] is entitled to a hearing conducted under Section 12.032.
987	987	The decision of the department is appealable in the same manner as
988	988	provided for contested cases under Chapter 2001, Government Code.
989	989	SECTION 5.04. Section 13.256, Agriculture Code, is amended
990	990	to read as follows:
991	991	Sec. 13.256. BOND. [(a)] Each [county public weigher,
992	992	whether elected or appointed, and each deputy] public weigher shall
993	993	execute [for the full term of office] a bond in accordance with
994	994	rules adopted [that is in the amount of $2,500, approved] by the
995	995	department [, and made payable to the county judge of the county for
996	996	which the weigher is elected or appointed]. The bond must be
997	997	conditioned on the accurate weight or measure of a commodity being
998	998	reflected on the certificate issued by the public weigher [or
999	999	deputy], on the protection of a commodity that the public weigher
1000	1000	[or deputy] is requested to weigh or measure, and on compliance with
1001	1001	all laws and rules governing public weighers. [The bond shall be
1002	1002	filed with the county clerk's office in the county for which the
1003	1003	public weigher or deputy is appointed or elected.] The bond is not
1004	1004	void on first recovery. A person injured by the public weigher may
1005	1005	sue on the bond.
1006	1006	[(b) Each state public weigher shall execute a bond similar
1007	1007	to the bond required under Subsection (a) of this section, except
1008	1008	that the bond is for $10,000, made payable to the State of Texas,
1009	1009	and filed with the department.]
1010	1010	SECTION 5.05. Section 13.257(a), Agriculture Code, is
1011	1011	amended to read as follows:
1012	1012	(a) On each certificate of weight or measure that a public
1013	1013	weigher [or deputy public weigher] issues, the public weigher [or
1014	1014	deputy public weigher] shall include the:
1015	1015	(1) time and date that the weight or measurement was
1016	1016	taken;
1017	1017	(2) signature and license number of the public weigher
1018	1018	[or deputy public weigher]; and
1019	1019	(3) seal of the department.
1020	1020	SECTION 5.06. Section 13.259(a), Agriculture Code, is
1021	1021	amended to read as follows:
1022	1022	(a) A public weigher [or deputy public weigher] who
1023	1023	intentionally or knowingly issues a certificate of weight or
1024	1024	measure giving a false weight or measure for a commodity weighed or
1025	1025	measured commits an offense.
1026	1026	SECTION 5.07. Section 13.261, Agriculture Code, is amended
1027	1027	to read as follows:
1028	1028	Sec. 13.261. [POWER OF DEPARTMENT;] RULES. The department
1029	1029	shall [may] adopt rules governing the bond requirements and
1030	1030	[procedures to be followed in administering the] fees imposed under
1031	1031	this subchapter.
1032	1032	SECTION 5.08. Section 52.038, Agriculture Code, is amended
1033	1033	to read as follows:
1034	1034	Sec. 52.038. EXISTING CORPORATIONS AND ASSOCIATIONS. [(a)]
1035	1035	Any corporation or association organized under prior law before
1036	1036	March 1, 1921, may elect, by a majority vote of its members or
1037	1037	stockholders, to adopt this chapter and become subject to it by:
1038	1038	(1) adopting the restrictions provided by this
1039	1039	chapter; and
1040	1040	(2) executing, in duplicate on forms supplied by the
1041	1041	secretary of state, an instrument, signed and acknowledged by its
1042	1042	directors, stating that the entity, by a majority vote of its
1043	1043	members or stockholders, has decided to accept the benefits of and
1044	1044	be bound by this chapter[; and
1045	1045	[(3) filing articles of incorporation in accordance
1046	1046	with the requirements of Section 52.035 of this code except that the
1047	1047	entity's directors shall sign the articles].
1048	1048	[(b) The filing fee for the articles filed under Subsection
1049	1049	(a) of this section is equal to the filing fee for an amendment to
1050	1050	the articles of incorporation as provided by Section 52.151 of this
1051	1051	code.]
1052	1052	SECTION 5.09. Section 52.151, Agriculture Code, is amended
1053	1053	to read as follows:
1054	1054	Sec. 52.151. TAX EXEMPTIONS [FEES]. [(a) The fee for
1055	1055	filing articles of incorporation under this chapter is $10.
1056	1056	[(b) The fee for filing an amendment to the articles of
1057	1057	incorporation under this chapter is $2.50.
1058	1058	[(c) Each marketing association shall pay to the department
1059	1059	an annual license fee, as provided by department rule.] A marketing
1060	1060	association is exempt from all [other] franchise or license taxes,
1061	1061	except that a marketing association is exempt from the franchise
1062	1062	tax imposed by Chapter 171, Tax Code, only if exempted by that
1063	1063	chapter.
1064	1064	SECTION 5.10. Section 101.003(b), Agriculture Code, is
1065	1065	amended to read as follows:
1066	1066	(b) This section does not apply to:
1067	1067	(1) a retailer, unless the retailer:
1068	1068	(A) has annual sales of perishable commodities
1069	1069	that comprise 50 percent or more of the retailer's total sales; or
1070	1070	(B) employs a buying agent who buys directly from
1071	1071	a producer;
1072	1072	(2) a producer who handles or deals exclusively in the
1073	1073	producer's own products;
1074	1074	(3) a person shipping less than six standard boxes of
1075	1075	citrus fruit in any one separate shipment; [or]
1076	1076	(4) a person who ships a noncommercial shipment of
1077	1077	perishable commodities; or
1078	1078	(5) a person who purchases perishable commodities and
1079	1079	pays for the perishable commodities in United States currency
1080	1080	before or at the time of delivery or taking possession.
1081	1081	SECTION 5.11. Section 101.004, Agriculture Code, is amended
1082	1082	to read as follows:
1083	1083	Sec. 101.004. LICENSE OR REGISTRATION CATEGORIES. [(a)] A
1084	1084	person shall apply for a license if the person:
1085	1085	(1) purchases perishable commodities on credit;
1086	1086	(2) takes possession of perishable commodities for
1087	1087	consignment or handling on behalf of the producer or owner of the
1088	1088	perishable commodities; or
1089	1089	(3) takes possession of perishable commodities for
1090	1090	consignment or handling in a manner or under a contract that does
1091	1091	not require or result in payment to the producer, seller, or
1092	1092	consignor of the full amount of the purchase price in United States
1093	1093	currency at the time of delivery or at the time that the perishable
1094	1094	commodities pass from the producer, seller, or consignor to the
1095	1095	person.
1096	1096	[(b) A person shall register as a cash dealer if the person
1097	1097	purchases perishable commodities and pays for the perishable
1098	1098	commodities in United States currency before or at the time of
1099	1099	delivery or taking possession.]
1100	1100	SECTION 5.12. Section 103.008(b), Agriculture Code, is
1101	1101	amended to read as follows:
1102	1102	(b) The total payment of all claims arising from the same
1103	1103	contract with a license holder may not exceed $50,000 [$35,000].
1104	1104	SECTION 5.13. Section 121.005(a), Agriculture Code, is
1105	1105	amended to read as follows:
1106	1106	(a) Each rose plant or shipment of rose plants shall be
1107	1107	labeled with[:
1108	1108	[(1)] the proper grade[; and
1109	1109	[(2) the number of the certificate of authority of the
1110	1110	person selling or offering for sale the plant or shipment].
1111	1111	SECTION 5.14. Section 52.092(f), Election Code, is amended
1112	1112	to read as follows:
1113	1113	(f) Precinct offices shall be listed in the following order:
1114	1114	(1) county commissioner;
1115	1115	(2) justice of the peace;
1116	1116	(3) constable[;
1117	1117	[(4) public weigher].
1118	1118	SECTION 5.15. Section 172.024(a), Election Code, is amended
1119	1119	to read as follows:
1120	1120	(a) The filing fee for a candidate for nomination in the
1121	1121	general primary election is as follows:
1122	1122	(1) United States senator $5,000
1123	1123	(2) office elected statewide, except United States
1124	1124	senator 3,750
1125	1125	(3) United States representative 3,125
1126	1126	(4) state senator 1,250
1127	1127	(5) state representative 750
1128	1128	(6) member, State Board of Education 300
1129	1129	(7) chief justice or justice, court of appeals, other
1130	1130	than a justice specified by Subdivision (8) 1,875
1131	1131	(8) chief justice or justice of a court of appeals that
1132	1132	serves a court of appeals district in which a county with a
1133	1133	population of more than 750,000 is wholly or partly
1134	1134	situated 2,500
1135	1135	(9) district judge or judge specified by Section
1136	1136	52.092(d) for which this schedule does not otherwise prescribe a
1137	1137	fee 1,500
1138	1138	(10) district or criminal district judge of a court in
1139	1139	a judicial district wholly contained in a county with a population
1140	1140	of more than 850,000 2,500
1141	1141	(11) judge, statutory county court, other than a judge
1142	1142	specified by Subdivision (12) 1,500
1143	1143	(12) judge of a statutory county court in a county with
1144	1144	a population of more than 850,000 2,500
1145	1145	(13) district attorney, criminal district attorney,
1146	1146	or county attorney performing the duties of a district
1147	1147	attorney 1,250
1148	1148	(14) county commissioner, district clerk, county
1149	1149	clerk, sheriff, county tax assessor-collector, county treasurer,
1150	1150	or judge, constitutional county court:
1151	1151	(A) county with a population of 200,000
1152	1152	or more 1,250
1153	1153	(B) county with a population of under
1154	1154	200,000 750
1155	1155	(15) justice of the peace or constable:
1156	1156	(A) county with a population of 200,000
1157	1157	or more 1,000
1158	1158	(B) county with a population of under
1159	1159	200,000 375
1160	1160	(16) county surveyor or[,] inspector of hides and
1161	1161	animals[, or public weigher] 75
1162	1162	(17) office of the county government for which this
1163	1163	schedule does not otherwise prescribe a fee 750
1164	1164	SECTION 5.16. Section 62.160(b), Labor Code, is amended to
1165	1165	read as follows:
1166	1166	(b) Sections 62.051-62.054 [and Subchapter C] do not apply
1167	1167	to an agricultural employer with respect to an employee engaged in
1168	1168	the production of livestock.
1169	1169	SECTION 5.17. The following statutes are repealed:
1170	1170	(1) Section 13.252, Agriculture Code;
1171	1171	(2) Section 13.253, Agriculture Code;
1172	1172	(3) Section 13.2535, Agriculture Code;
1173	1173	(4) Section 13.254, Agriculture Code;
1174	1174	(5) Section 52.035(b), Agriculture Code;
1175	1175	(6) Section 52.152, Agriculture Code;
1176	1176	(7) Sections 103.008(a) and (c), Agriculture Code;
1177	1177	(8) Section 121.004, Agriculture Code;
1178	1178	(9) Section 62.002(1), Labor Code; and
1179	1179	(10) Subchapter C, Chapter 62, Labor Code.
1180	1180	SECTION 5.18. (a) The changes in law made by this Act to
1181	1181	Subchapter E, Chapter 13, Agriculture Code, do not affect the
1182	1182	entitlement of a public weigher or deputy public weigher elected or
1183	1183	appointed before the effective date of this Act to serve as a public
1184	1184	weigher or deputy public weigher for the remainder of the public
1185	1185	weigher's or deputy public weigher's term. A public weigher or
1186	1186	deputy public weigher elected or appointed before the effective
1187	1187	date of this Act is governed by the law in effect immediately before
1188	1188	the effective date of this Act, and the former law is continued in
1189	1189	effect for that purpose.
1190	1190	(b) The changes in law made by this Act to Section 103.008,
1191	1191	Agriculture Code, apply only to a claim for payment filed on or
1192	1192	after the effective date of this Act. A claim filed before that
1193	1193	date is governed by the law in effect on the date the claim was
1194	1194	filed, and the former law is continued in effect for that purpose.
1195	1195	ARTICLE 6. GENERAL LICENSING PROVISIONS
1196	1196	SECTION 6.01. Sections 12.020(a) and (c), Agriculture Code,
1197	1197	are amended to read as follows:
1198	1198	(a) If a person violates a provision of law [this code]
1199	1199	described by Subsection (c) [of this section] or a rule or order
1200	1200	adopted by the department under a provision of law [this code]
1201	1201	described by Subsection (c) [of this section], the department may
1202	1202	assess an administrative penalty against the person as provided by
1203	1203	this section.
1204	1204	(c) The provisions of law [this code] subject to this
1205	1205	section and the applicable penalty amounts are as follows:
1206	1206	Provision Amount of Penalty Provision Amount of Penalty
1207	1207	Provision Amount of Penalty
1208	1208	Chapter 41 not more than $5,000 [$1,000] Chapter 41 not more than $5,000 [$1,000]
1209	1209	Chapter 41 not more than $5,000 [$1,000]
1210	1210	Chapters 13, 14A, 18, 46, 61, 94, Chapters 13, 14A, 18, 46, 61, 94,
1211	1211	Chapters 13, 14A, 18, 46, 61, 94,
1212	1212	95, 101, 102, 103, 121, 125, 132, 95, 101, 102, 103, 121, 125, 132,
1213	1213	95, 101, 102, 103, 121, 125, 132,
1214	1214	and 134 not more than $5,000 [$500] and 134 not more than $5,000 [$500]
1215	1215	and 134 not more than $5,000 [$500]
1216	1216	Subchapter B, Chapter 71 Subchapter B, Chapter 71
1217	1217	Subchapter B, Chapter 71
1218	1218	Chapter 19 Chapter 19
1219	1219	Chapter 19
1220	1220	Chapter 76 not more than $5,000 [$2,000] Chapter 76 not more than $5,000 [$2,000]
1221	1221	Chapter 76 not more than $5,000 [$2,000]
1222	1222	Subchapters A and C, Chapter 71 Subchapters A and C, Chapter 71
1223	1223	Subchapters A and C, Chapter 71
1224	1224	Chapters 72, 73, and 74 not more than $5,000 Chapters 72, 73, and 74 not more than $5,000
1225	1225	Chapters 72, 73, and 74 not more than $5,000
1226	1226	Chapter 14 not more than $10,000 Chapter 14 not more than $10,000
1227	1227	Chapter 14 not more than $10,000
1228	1228	Chapter 1951, Occupations Code not more than $5,000 Chapter 1951, Occupations Code not more than $5,000
1229	1229	Chapter 1951, Occupations Code not more than $5,000
1230	1230	Chapter 153, Natural Resources Chapter 153, Natural Resources
1231	1231	Chapter 153, Natural Resources
1232	1232	Code not more than $5,000. Code not more than $5,000.
1233	1233	Code not more than $5,000.
1234	1234	SECTION 6.02. Section 12.023, Agriculture Code, is amended
1235	1235	to read as follows:
1236	1236	Sec. 12.023. EXPIRATION OF REGISTRATION OR LICENSES. The
1237	1237	department by rule shall [may] adopt a system under which
1238	1238	registrations or licenses required by the department expire on
1239	1239	various dates during the year. For the year in which the
1240	1240	registration or license expiration date is changed, registration or
1241	1241	license fees shall be prorated on a monthly basis so that each
1242	1242	registrant or licensee pays only that portion of the fee that is
1243	1243	allocable to the number of months during which the registration or
1244	1244	license is valid. On renewal of the registration or license on the
1245	1245	new expiration date, the total renewal fee is payable.
1246	1246	SECTION 6.03. Title 2, Agriculture Code, is amended by
1247	1247	adding Chapter 12A to read as follows:
1248	1248	CHAPTER 12A. GENERAL LICENSING PROVISIONS
1249	1249	SUBCHAPTER A. POWERS AND DUTIES OF DEPARTMENT RELATED TO LICENSING
1250	1250	Sec. 12A.001. APPLICABILITY OF PROVISIONS. The general
1251	1251	licensing, regulatory, and enforcement provisions of Chapter 12 and
1252	1252	this chapter apply to licensing and regulatory programs
1253	1253	administered by the department under any law.
1254	1254	Sec. 12A.002. CEASE AND DESIST ORDER. (a) If it appears to
1255	1255	the commissioner that a person who is not licensed by the department
1256	1256	is violating a statute or rule that requires the person to hold a
1257	1257	license issued by the department or a statute or rule relating to an
1258	1258	activity regulated by the department, the commissioner after notice
1259	1259	and opportunity for a hearing may issue a cease and desist order
1260	1260	prohibiting the person from engaging in the activity.
1261	1261	(b) A violation of an order under this section constitutes
1262	1262	grounds for imposing an administrative penalty.
1263	1263	Sec. 12A.003. RISK-BASED INSPECTIONS. For each person
1264	1264	licensed or regulated by the department that the department may
1265	1265	inspect:
1266	1266	(1) the department may conduct additional inspections
1267	1267	based on a schedule of risk-based inspections using the following
1268	1268	criteria:
1269	1269	(A) the type and nature of the person;
1270	1270	(B) whether there has been a prior violation by
1271	1271	the person;
1272	1272	(C) the inspection history of the person;
1273	1273	(D) any history of complaints involving the
1274	1274	person; and
1275	1275	(E) any other factor determined by the department
1276	1276	by rule; and
1277	1277	(2) the department may waive the inspection
1278	1278	requirement on a case-by-case basis if an emergency arises or to
1279	1279	accommodate complaint investigation schedules.
1280	1280	[Sections 12A.004-12A.050 reserved for expansion]
1281	1281	SUBCHAPTER B. PUBLIC INTEREST INFORMATION AND COMPLAINT PROCEDURES
1282	1282	Sec. 12A.051. INFORMATION REGARDING COMPLAINTS AND
1283	1283	ENFORCEMENT PROCESS. (a) The department shall:
1284	1284	(1) inform applicants, license holders, and the public
1285	1285	on the department's Internet website, in department brochures, and
1286	1286	on any other available information resource about the department's
1287	1287	enforcement process, including each step in the complaint
1288	1288	investigation and resolution process, from initial filing through
1289	1289	final appeal, and the opportunity to request an informal settlement
1290	1290	conference; and
1291	1291	(2) inform license holders that a license holder may
1292	1292	obtain information about a complaint made against the license
1293	1293	holder and may obtain on request a copy of the complaint file.
1294	1294	(b) The department shall provide to a license holder against
1295	1295	whom a complaint has been filed:
1296	1296	(1) the allegations made against the license holder in
1297	1297	the complaint; and
1298	1298	(2) on the license holder's request, any information
1299	1299	obtained by the department in its investigation of the complaint.
1300	1300	(c) The department shall provide the information required
1301	1301	under Subsection (b) in a timely manner to allow the license holder
1302	1302	time to respond to the complaint.
1303	1303	Sec. 12A.052. COMPLAINT AND VIOLATION ANALYSIS. The
1304	1304	department shall analyze complaints filed with and violations
1305	1305	discovered by the department to identify any trends or issues
1306	1306	related to certain violations, including:
1307	1307	(1) the reason for each complaint or violation;
1308	1308	(2) how each complaint or violation was resolved; and
1309	1309	(3) the subject matter of each complaint or violation
1310	1310	that was not within the jurisdiction of the department and how the
1311	1311	department responded to the complaint or violation.
1312	1312	[Sections 12A.053-12A.100 reserved for expansion]
1313	1313	SUBCHAPTER C. ISSUANCE AND RENEWAL OF LICENSES
1314	1314	Sec. 12A.101. REPLACEMENT LICENSE; FEE. The department
1315	1315	shall issue to a license holder whose license has been lost or
1316	1316	destroyed or whose name has been changed a replacement license if
1317	1317	the license holder submits to the department:
1318	1318	(1) an appropriate application; and
1319	1319	(2) a fee in an amount established by department rule.
1320	1320	[Sections 12A.102-12A.150 reserved for expansion]
1321	1321	SUBCHAPTER D. EXAMINATIONS
1322	1322	Sec. 12A.151. EXAMINATION PROCEDURES. For each licensing
1323	1323	examination administered by the department, the department shall:
1324	1324	(1) adopt policies and guidelines detailing the
1325	1325	procedures for the testing process, including test admission and
1326	1326	internal test administration procedures; and
1327	1327	(2) post on the department's Internet website the
1328	1328	policies that reference the testing procedures.
1329	1329	Sec. 12A.152. EVALUATION OF EXAMINATION QUESTIONS. For
1330	1330	each licensing examination administered by the department, the
1331	1331	department shall periodically evaluate the effectiveness of
1332	1332	examination questions in objectively assessing an applicant's
1333	1333	knowledge.
1334	1334	[Sections 12A.153-12A.200 reserved for expansion]
1335	1335	SUBCHAPTER E. PENALTIES AND ENFORCEMENT PROCEDURES
1336	1336	Sec. 12A.201. INFORMAL PROCEEDINGS. (a) The department by
1337	1337	rule shall adopt procedures governing:
1338	1338	(1) informal disposition of a contested case under
1339	1339	Section 2001.056, Government Code; and
1340	1340	(2) an informal proceeding held in compliance with
1341	1341	Section 2001.054, Government Code.
1342	1342	(b) The department shall offer the opportunity to conduct an
1343	1343	informal settlement conference by telephone.
1344	1344	(c) The department shall:
1345	1345	(1) provide a license holder sufficient opportunity to
1346	1346	indicate whether the terms of a proposed order are acceptable to the
1347	1347	license holder;
1348	1348	(2) indicate in the notice of violation that the
1349	1349	license holder has the opportunity described by Subdivision (1);
1350	1350	and
1351	1351	(3) allow a license holder who does not agree with a
1352	1352	proposed order to request an informal settlement conference.
1353	1353	SECTION 6.04. The heading to Section 76.113, Agriculture
1354	1354	Code, is amended to read as follows:
1355	1355	Sec. 76.113. TERM [EXPIRATION] AND RENEWAL OF LICENSES.
1356	1356	SECTION 6.05. Sections 76.113(a) and (b), Agriculture Code,
1357	1357	are amended to read as follows:
1358	1358	(a) Each commercial applicator or noncommercial applicator
1359	1359	license is valid for one year [expires on the first anniversary of
1360	1360	the date on which it was issued or renewed].
1361	1361	(b) Each private applicator license is valid for five years
1362	1362	[expires on the fifth anniversary of the date on which it was issued
1363	1363	or renewed].
1364	1364	SECTION 6.06. Section 76.151, Agriculture Code, is amended
1365	1365	by amending Subsection (a) and adding Subsection (a-1) to read as
1366	1366	follows:
1367	1367	(a) The [For the purpose of inspection, examination, or
1368	1368	sampling, the] department, at any time and without notice during
1369	1369	regular business hours, may:
1370	1370	(1) [is entitled to] enter and inspect a [at
1371	1371	reasonable hours any] building or place owned, controlled, or
1372	1372	operated by a person engaged in any activity regulated under this
1373	1373	chapter or Chapter 1951, Occupations Code; and
1374	1374	(2) inspect and review any record maintained by a
1375	1375	person engaged in any activity regulated under this chapter or
1376	1376	Chapter 1951, Occupations Code [registrant or dealer if from
1377	1377	probable cause it appears that the building or place contains a
1378	1378	pesticide].
1379	1379	(a-1) The department may enter and inspect a building or
1380	1380	place or inspect and review any record under Subsection (a) as
1381	1381	necessary to:
1382	1382	(1) ensure compliance with this chapter or Chapter
1383	1383	1951, Occupations Code; or
1384	1384	(2) investigate a complaint made to the department.
1385	1385	SECTION 6.07. Section 76.1555(a), Agriculture Code, is
1386	1386	amended to read as follows:
1387	1387	(a) If a person violates a provision of this chapter or
1388	1388	Chapter 1951, Occupations Code, or a rule or order adopted by the
1389	1389	department under this chapter or Chapter 1951, Occupations Code,
1390	1390	the department may assess an administrative penalty against the
1391	1391	person as provided by Section 12.020, except that the penalty for
1392	1392	each violation may [shall] not exceed $5,000 [$4,000 for all
1393	1393	violations related to a single incident]. Each day a violation
1394	1394	continues or occurs may be considered a separate violation for
1395	1395	purposes of penalty assessment.
1396	1396	SECTION 6.08. Section 132.024, Agriculture Code, is amended
1397	1397	to read as follows:
1398	1398	Sec. 132.024. LICENSE TERM [EXPIRATION]. A license issued
1399	1399	or renewed under this chapter is valid for one year [expires on the
1400	1400	first anniversary of the date of issuance or renewal].
1401	1401	SECTION 6.09. The changes in law made by this article to
1402	1402	Sections 12.020(c) and 76.1555(a), Agriculture Code, apply only to
1403	1403	a violation committed on or after the effective date of this Act. A
1404	1404	violation committed before the effective date of this Act is
1405	1405	governed by the law in effect on the date the violation occurred,
1406	1406	and the former law is continued in effect for that purpose.
1407	1407	ARTICLE 7. STRUCTURAL PEST CONTROL
1408	1408	SECTION 7.01. Section 12.0201, Agriculture Code, is amended
1409	1409	to read as follows:
1410	1410	Sec. 12.0201. LICENSE SANCTIONS. (a) In addition to other
1411	1411	sanctions provided by law, the department may revoke, modify,
1412	1412	suspend, or refuse to issue or renew a license, assess an
1413	1413	administrative penalty, place on probation a person whose license
1414	1414	has been suspended, or reprimand a license holder if the department
1415	1415	finds that the practitioner:
1416	1416	(1) violated a provision of this code or Chapter 1951,
1417	1417	Occupations Code;
1418	1418	(2) violated a rule adopted by the department under
1419	1419	this code or Chapter 1951, Occupations Code; or
1420	1420	(3) after appropriate notice, failed to comply with an
1421	1421	order of the department.
1422	1422	(b) In addition to any other actions permitted under this
1423	1423	code or Chapter 1951, Occupations Code, if a license suspension is
1424	1424	probated, the department may require the practitioner:
1425	1425	(1) to maintain additional information in the
1426	1426	practitioner's records;
1427	1427	(2) to report regularly to the department on matters
1428	1428	that are the basis of the probation;
1429	1429	(3) to limit practice to the areas prescribed by the
1430	1430	department; or
1431	1431	(4) to continue or review professional education until
1432	1432	the practitioner attains a degree of skill satisfactory to the
1433	1433	department in those areas that are the basis of the probation.
1434	1434	SECTION 7.02. Subchapter A, Chapter 1951, Occupations Code,
1435	1435	is amended by adding Section 1951.007 to read as follows:
1436	1436	Sec. 1951.007. APPLICABILITY OF AGRICULTURE CODE LICENSING
1437	1437	PROVISIONS. A provision of the Agriculture Code that applies
1438	1438	generally to licensing or regulatory programs administered by the
1439	1439	department, including a provision that refers generally to
1440	1440	licensing or regulatory programs under the Agriculture Code,
1441	1441	applies to this chapter.
1442	1442	SECTION 7.03. Section 1951.207(a), Occupations Code, is
1443	1443	amended to read as follows:
1444	1444	(a) The department by rule shall adopt a policy that[:
1445	1445	[(1)] requires a business holding a structural pest
1446	1446	control business license to be inspected by a field inspector at
1447	1447	least once:
1448	1448	(1) [(A)] in the business's first year of operation;
1449	1449	and
1450	1450	(2) [(B)] every four years after the first year of
1451	1451	operation[;
1452	1452	[(2) provides for additional inspections based on a
1453	1453	schedule of risk-based inspections using the following criteria:
1454	1454	[(A) the type and nature of the business;
1455	1455	[(B) whether there has been a prior violation by
1456	1456	the business;
1457	1457	[(C) the inspection history of the business;
1458	1458	[(D) any history of complaints involving the
1459	1459	business; and
1460	1460	[(E) any other factor determined by the
1461	1461	department by rule; and
1462	1462	[(3) provides that the department may waive the
1463	1463	inspection requirement on a case-by-case basis if an emergency
1464	1464	arises or to accommodate complaint investigation schedules].
1465	1465	SECTION 7.04. The following provisions of the Occupations
1466	1466	Code are repealed:
1467	1467	(1) Section 1951.310;
1468	1468	(2) Section 1951.311;
1469	1469	(3) Sections 1951.501(c) and (d);
1470	1470	(4) Subchapter L, Chapter 1951;
1471	1471	(5) Section 1951.604; and
1472	1472	(6) Section 1951.605.
1473	1473	SECTION 7.05. The changes in law made by this Act by the
1474	1474	repeal of Sections 1951.501(c) and (d), Occupations Code, apply
1475	1475	only to a violation of Chapter 1951, Occupations Code, committed on
1476	1476	or after the effective date of this Act. A violation committed
1477	1477	before the effective date of this Act is governed by the law in
1478	1478	effect on the date the violation occurred, and the former law is
1479	1479	continued in effect for that purpose. A violation committed on or
1480	1480	after the effective date of this Act is governed by Section 12.0201,
1481	1481	Agriculture Code, as amended by this Act, and other applicable law.
1482	1482	SECTION 7.06. The change in law made by this Act by the
1483	1483	repeal of Section 1951.310, Occupations Code, applies only to the
1484	1484	renewal of a license under Chapter 1951, Occupations Code, that
1485	1485	expires on or after the effective date of this Act. The renewal of a
1486	1486	license that expires before the effective date of this Act is
1487	1487	governed by the law in effect on the date the license expired, and
1488	1488	the former law is continued in effect for that purpose. An
1489	1489	application submitted on or after the effective date of this Act is
1490	1490	governed by Section 12.024, Agriculture Code, and other applicable
1491	1491	law.
1492	1492	SECTION 7.07. The change in law made by this Act by the
1493	1493	repeal of Section 1951.311, Occupations Code, applies only to an
1494	1494	application for a replacement license issued under Chapter 1951,
1495	1495	Occupations Code, submitted on or after the effective date of this
1496	1496	Act. An application submitted before the effective date of this Act
1497	1497	is governed by the law in effect on the date the application was
1498	1498	submitted, and the former law is continued in effect for that
1499	1499	purpose. An application submitted on or after the effective date of
1500	1500	this Act is governed by Section 12A.101, Agriculture Code, as added
1501	1501	by this Act, and other applicable law.
1502	1502	SECTION 7.08. The change in law made by this Act by the
1503	1503	repeal of Subchapter L, Chapter 1951, Occupations Code, applies
1504	1504	only to a violation committed on or after the effective date of this
1505	1505	Act. A violation committed before that date is governed by the law
1506	1506	in effect on the date the violation occurred, and the former law is
1507	1507	continued in effect for that purpose. A violation committed on or
1508	1508	after the effective date of this Act is governed by Section 12.020,
1509	1509	Agriculture Code, as amended by this Act, and other applicable law.
1510	1510	ARTICLE 8. SUNSET DATE AND ACROSS-THE-BOARD RECOMMENDATIONS
1511	1511	SECTION 8.01. Section 11.003, Agriculture Code, is amended
1512	1512	to read as follows:
1513	1513	Sec. 11.003. SUNSET PROVISION. The Department of
1514	1514	Agriculture is subject to Chapter 325, Government Code (Texas
1515	1515	Sunset Act). Unless continued in existence as provided by that
1516	1516	chapter, the department is abolished September 1, 2021 [2009].
1517	1517	SECTION 8.02. Section 12.0135, Agriculture Code, is amended
1518	1518	to read as follows:
1519	1519	Sec. 12.0135. CONFLICT PROVISIONS. (a) A person may not be
1520	1520	a department employee employed in a "bona fide executive,
1521	1521	administrative, or professional capacity," as that phrase is used
1522	1522	for purposes of establishing an exemption to the overtime
1523	1523	provisions of the federal Fair Labor Standards Act of 1938 (29
1524	1524	U.S.C. Section 201 et seq.), if:
1525	1525	(1) the person is an officer, employee, or paid
1526	1526	consultant of a Texas trade association in the field of
1527	1527	agriculture; or
1528	1528	(2) the person's spouse is an officer, manager, or paid
1529	1529	consultant of a Texas trade association in the field of
1530	1530	agriculture.
1531	1531	(b) A person may not act as the general counsel to the
1532	1532	commissioner or the department if the person is required to
1533	1533	register as a lobbyist under Chapter 305, Government Code, because
1534	1534	of the person's activities for compensation on behalf of a
1535	1535	profession related to the operation of the department.
1536	1536	(c) In [(b) An officer, employee, or paid consultant of a
1537	1537	statewide Texas trade association or an affiliate of a national
1538	1538	trade association in the field of agriculture may not be an employee
1539	1539	of the department who is exempt from the state's position
1540	1540	classification plan or is compensated at or above the amount
1541	1541	prescribed by the General Appropriations Act for step 1, salary
1542	1542	group 17, of the position classification salary schedule.
1543	1543	[(c) A person who is the spouse of an officer, manager, or
1544	1544	paid consultant of a statewide Texas trade association or an
1545	1545	affiliate of a national trade association in the field of
1546	1546	agriculture may not be an employee of the department who is exempt
1547	1547	from the state's position classification plan or is compensated at
1548	1548	or above the amount prescribed by the General Appropriations Act
1549	1549	for step 1, salary group 17, of the position classification salary
1550	1550	schedule.
1551	1551	[(d) For the purposes of] this section, "Texas [a] trade
1552	1552	association" means [is] a [nonprofit,] cooperative [,] and
1553	1553	voluntarily joined statewide association of business or
1554	1554	professional competitors in this state designed to assist its
1555	1555	members and its industry or profession in dealing with mutual
1556	1556	business or professional problems and in promoting their common
1557	1557	interest.
1558	1558	SECTION 8.03. Chapter 12, Agriculture Code, is amended by
1559	1559	adding Section 12.0203 to read as follows:
1560	1560	Sec. 12.0203. NEGOTIATED RULEMAKING AND ALTERNATIVE
1561	1561	DISPUTE RESOLUTION. (a) The commissioner shall develop and
1562	1562	implement a policy to encourage the use of:
1563	1563	(1) negotiated rulemaking procedures under Chapter
1564	1564	2008, Government Code, for the adoption of department rules; and
1565	1565	(2) appropriate alternative dispute resolution
1566	1566	procedures under Chapter 2009, Government Code, to assist in the
1567	1567	resolution of internal and external disputes under the department's
1568	1568	jurisdiction.
1569	1569	(b) The department's procedures relating to alternative
1570	1570	dispute resolution must conform, to the extent possible, to any
1571	1571	model guidelines issued by the State Office of Administrative
1572	1572	Hearings for the use of alternative dispute resolution by state
1573	1573	agencies.
1574	1574	(c) The commissioner shall designate a trained person to:
1575	1575	(1) coordinate the implementation of the policy
1576	1576	adopted under Subsection (a);
1577	1577	(2) serve as a resource for any training needed to
1578	1578	implement the procedures for negotiated rulemaking or alternative
1579	1579	dispute resolution; and
1580	1580	(3) collect data concerning the effectiveness of those
1581	1581	procedures, as implemented by the department.
1582	1582	SECTION 8.04. Chapter 12, Agriculture Code, is amended by
1583	1583	adding Section 12.047 to read as follows:
1584	1584	Sec. 12.047. USE OF TECHNOLOGY. The commissioner shall
1585	1585	implement a policy requiring the department to use appropriate
1586	1586	technological solutions to improve the department's ability to
1587	1587	perform its functions. The policy must ensure that the public is
1588	1588	able to interact with the department on the Internet.
1589	1589	ARTICLE 9. EFFECTIVE DATE
1590	1590	SECTION 9.01. This Act takes effect September 1, 2009.
1591	1591
1592	1592	Provision Amount of Penalty
1593	1593
1594	1594	Chapter 41 not more than $5,000 [$1,000]
1595	1595
1596	1596	Chapters 13, 14A, 18, 46, 61, 94,
1597	1597
1598	1598	95, 101, 102, 103, 121, 125, 132,
1599	1599
1600	1600	and 134 not more than $5,000 [$500]
1601	1601
1602	1602	Subchapter B, Chapter 71
1603	1603
1604	1604	Chapter 19
1605	1605
1606	1606	Chapter 76 not more than $5,000 [$2,000]
1607	1607
1608	1608	Subchapters A and C, Chapter 71
1609	1609
1610	1610	Chapters 72, 73, and 74 not more than $5,000
1611	1611
1612	1612	Chapter 14 not more than $10,000
1613	1613
1614	1614	Chapter 1951, Occupations Code not more than $5,000
1615	1615
1616	1616	Chapter 153, Natural Resources
1617	1617
1618	1618	Code not more than $5,000.