81R3037 BEF/JAM-F By: Estes, Hegar S.B. No. 1016 A BILL TO BE ENTITLED AN ACT relating to the continuation and functions of the Department of Agriculture and the Prescribed Burning Board and the abolition of the Texas-Israel Exchange Fund Board. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: ARTICLE 1. TEXAS AGRICULTURAL FINANCE AUTHORITY SECTION 1.01. Sections 44.001(1) and (2), Agriculture Code, are amended to read as follows: (1) "Eligible lending institution" means a financial institution that makes commercial loans, is either a depository of state funds or an institution of the Farm Credit System headquartered in this state, and agrees to participate in the interest rate reduction [linked deposit] program and to provide collateral equal to the amount of linked deposits placed with it. (2) "Eligible borrower" means a person who proposes to use the proceeds of a loan under this chapter in a manner that will help accomplish the state's goal of fostering the creation and expansion of enterprises based on agriculture in this state [is in the business or entering the business of: [(A) processing and marketing agricultural crops in this state; [(B) producing alternative agricultural crops in this state; [(C) producing agricultural crops in this state the production of which has declined because of natural disasters; [(D) producing agricultural crops in this state using water conservation equipment for agricultural production purposes; or [(E) providing nonagricultural goods or services that provide an economic benefit to a municipality or county in a rural area]. SECTION 1.02. The heading to Section 44.007, Agriculture Code, is amended to read as follows: Sec. 44.007. INTEREST RATE REDUCTION [LINKED DEPOSIT] PROGRAM. SECTION 1.03. Sections 44.007(a), (c), (d), (k), and (l), Agriculture Code, are amended to read as follows: (a) The board shall establish an interest rate reduction [a linked deposit] program to foster the creation and expansion of enterprises based on agriculture in this state[: [(1) encourage commercial lending for the enhanced production, processing, and marketing of certain agricultural crops; [(2) encourage the development or expansion of businesses in rural areas of this state; and [(3) finance water conservation projects or equipment for agricultural production purposes]. (c) The board shall promulgate rules for the loan portion of the interest rate reduction [linked deposit] program. [The rules must include: [(1) a list of the categories of crops customarily grown in Texas, with consideration given to the Texas Agricultural Statistics Service information available and relevant to this determination; [(2) a list of crops that are alternative agricultural crops, with consideration given to the Texas Agricultural Statistics Service information available and relevant to this determination; [(3) identification of criteria for a project eligible for natural disaster assistance; and [(4) identification of projects and types of equipment considered as water conservation projects or equipment for agricultural production purposes.] (d) In order to participate in the interest rate reduction [linked deposit] program, an eligible lending institution may solicit loan applications from eligible borrowers. (k) The board may adopt rules that create a procedure for determining priorities for loans granted under this chapter. Each rule adopted must state the policy objective of the rule. [The policy objectives of the rules may include preferences to: [(1) achieve adequate geographic distribution of loans; [(2) assist certain industries; [(3) encourage certain practices including water conservation; and [(4) encourage value-added processing of agricultural products.] (l) A lending institution is not ineligible to participate in the interest rate reduction [linked deposit] program solely because a member of the board is also an officer, director, or employee of the lending institution, provided that a board member shall recuse himself or herself from any action taken by the board on an application involving a lending institution by which the board member is employed or for which the board member serves as an officer or director. SECTION 1.04. Sections 44.010(a) and (b), Agriculture Code, are amended to read as follows: (a) At any one time, not more than $30 million[, $10 million of which may be used only to finance water conservation projects and $5 million of which may be used only to finance the economic development of businesses in rural areas,] may be placed in linked deposits under this chapter. (b) The maximum amount of a loan under this chapter [to process and market Texas agricultural crops] is $500,000. [The maximum amount of a loan under this chapter to produce alternative agricultural crops in this state is $250,000. The maximum amount of a loan under this chapter to finance water conservation projects or equipment for agricultural production purposes is $250,000. The maximum amount of a loan under this chapter to finance production of a crop declared eligible for natural disaster relief, as defined by board rule, is $250,000. The maximum amount of a loan under this chapter to finance a business in a rural area is $250,000.] SECTION 1.05. Section 58.012, Agriculture Code, is amended by amending Subsections (a), (b), and (c) and adding Subsection (g) to read as follows: (a) The authority is governed by a board of directors composed of the commissioner of agriculture, the director of the Institute for International Agribusiness Studies at Prairie View A&M University, and nine [seven] members appointed by the commissioner [governor with the advice and consent of the senate]. Members of the board must be appointed in the numbers specified and from the following categories: (1) one person who is an elected or appointed official of a municipality or county; (2) four persons who are knowledgeable about agricultural lending practices; (3) one person who is a representative of agricultural businesses; [and] (4) one person who is a representative of agriculture related entities, including rural chambers of commerce, foundations, trade associations, institutions of higher education, or other entities involved in agricultural matters; and (5) two persons who represent young farmers and the interests of young farmers. (b) The appointed members of the board serve staggered terms of two years, with the terms of four [three] members expiring on January 1 of each even-numbered year and the terms of five [four] members expiring on January 1 of each odd-numbered year. (c) Any vacancy occurring in an appointed position on the board shall be filled by the commissioner [governor] for the unexpired term. (g) Notwithstanding Subsection (f), age may be considered by the commissioner in making appointments under Subsection (a)(5). SECTION 1.06. Section 58.013(a), Agriculture Code, is amended to read as follows: (a) The commissioner [governor] shall designate a member of the board as the chairman of the board to serve in that capacity at the pleasure of the commissioner [governor]. The board shall elect a vice-chairman biennially from its members and shall elect a secretary, a treasurer, and other officers it considers necessary. SECTION 1.07. Section 58.0176(a), Agriculture Code, is amended to read as follows: (a) Before a member of the board may assume the member's duties [and before the member may be confirmed by the senate], the member must complete at least one course of the training program established under this section. SECTION 1.08. Sections 58.023(c) and (d), Agriculture Code, are amended to read as follows: (c) Eligible agricultural businesses or lenders participating in the authority's programs shall pay the costs of applying for, participating in, and administering and servicing the program, in amounts the board considers reasonable and necessary. The board shall charge an administrative fee for guaranteeing a loan under Subchapter E that may not be less than one percent of the amount of the guaranteed loan. Any costs not paid by the eligible agricultural businesses or lenders shall be paid from the funds of the authority, including those funds established from bond proceeds. (d) The board by rule shall adopt an agreement to be used between a lender and an approved applicant under which the authority makes a payment from the Texas agricultural fund for the purpose of providing a reduced interest rate on a loan guaranteed to a borrower [under this subchapter]. The agreement must require the borrower to use the proceeds of the loan for the purposes of the program under which the payment is made. The board shall adopt rules to implement this subsection. SECTION 1.09. Subchapter D, Chapter 58, Agriculture Code, is amended by adding Section 58.041 to read as follows: Sec. 58.041. ISSUANCE OF DEBT BY TEXAS PUBLIC FINANCE AUTHORITY. (a) In this section, "debt instrument" means a note, debenture, bond, or other evidence of indebtedness. (b) The Texas Public Finance Authority has the exclusive authority to act on behalf of the authority in issuing debt instruments authorized to be issued by the authority. A reference in law to a debt instrument issued by the authority, in the context of a debt instrument issued on or after September 1, 2009, means a debt instrument issued by the Texas Public Finance Authority on behalf of the authority. (c) Notwithstanding Section 58.034(e), the authority shall pay all costs incurred by the Texas Public Finance Authority for issuing debt instruments on behalf of the authority and associated fees and expenses. (d) When the board authorizes the issuance of debt instruments to fund a loan, the authority shall notify the Texas Public Finance Authority of the amount of the loan and the recipient of the loan and request the Texas Public Finance Authority to issue debt instruments in an amount necessary to fund the loan. The authority and the Texas Public Finance Authority shall determine the amount and time of a debt instrument issue to best provide funds for one or multiple loans. (e) The Texas Public Finance Authority, at the request of the authority, may issue debt instruments to provide money to the Texas agricultural fund. (f) The Texas Public Finance Authority may sell debt instruments in any manner it determines to be in the best interest of the authority, except that it may not sell a debt instrument that has not been approved by the attorney general and registered with the comptroller. (g) The authority, in consultation with the Texas Public Finance Authority, shall adopt rules containing criteria for evaluating the creditworthiness of loan applicants and the financial feasibility of projects to be funded with debt instruments issued by the Texas Public Finance Authority on behalf of the authority. (h) The Texas Public Finance Authority may enter into a credit agreement for a debt instrument issued by the Texas Public Finance Authority on behalf of the authority for a period and on conditions approved by the Texas Public Finance Authority. (i) This subsection applies only in relation to general obligation debt instruments. To the extent other sources of revenue available for payment of the authority's debts are insufficient and in accordance with the Texas Constitution, general revenue is to be appropriated to the Texas Public Finance Authority in an amount determined by the Texas Public Finance Authority to be necessary to pay the principal, premium if any, and interest on general obligation debt instruments issued by the Texas Public Finance Authority on behalf of the authority, and that amount shall be specified in the biennial appropriations acts. SECTION 1.10. The heading to Subchapter E, Chapter 58, Agriculture Code, is amended to read as follows: SUBCHAPTER E. AGRICULTURAL [YOUNG FARMER] LOAN GUARANTEE PROGRAM SECTION 1.11. Section 58.051(2), Agriculture Code, is amended to read as follows: (2) "Eligible applicant" means a person applying for a loan guarantee under this subchapter who[: [(A) is at least 18 years of age but younger than 40 years of age; and [(B)] complies with the application procedures prescribed by this subchapter. SECTION 1.12. The heading to Section 58.052, Agriculture Code, is amended to read as follows: Sec. 58.052. AGRICULTURAL [YOUNG FARMER] LOAN GUARANTEE PROGRAM. SECTION 1.13. Section 58.052, Agriculture Code, is amended by amending Subsections (b), (c), and (e) and adding Subsection (f) to read as follows: (b) The board, either directly or through authority delegated to the commissioner, may grant to an eligible applicant a guarantee of a loan made by a commercial lender for the purposes prescribed by this subchapter. The board by rule shall establish tiered loan guarantee limits. To be eligible to be guaranteed under this subchapter, a loan with a term of more than one year must have a fixed interest rate [guarantee amount may not exceed the lesser of $250,000 or 90 percent of the loan amount]. (c) The aggregate amount guaranteed under this subchapter may not exceed the lesser of three-fourths of [twice] the amount contained in the [young farmer loan guarantee account within the] Texas agricultural fund or $12 million. (e) The board shall adopt an agreement, to be used between a commercial lender and an approved eligible applicant, under which the program provides a payment from money in the Texas agricultural fund [young farmer loan guarantee account] for the purpose of providing a reduced interest rate on a loan guaranteed to a borrower under this subchapter. The board shall adopt rules to implement this subsection. The maximum rate reduction under this subsection per year for each borrower may [shall] not exceed three percentage points or an amount that results in $10,000 in interest savings for the borrower for the year. (f) The board by rule shall establish a certified lender program under which the board may certify commercial lenders to participate in the agricultural loan guarantee program in order to expedite the processing of loan guarantee applications by the board. SECTION 1.14. Section 58.056, Agriculture Code, is amended to read as follows: Sec. 58.056. MONEY FOR LOAN GUARANTEE PROGRAM. The authority may accept gifts and grants of money from the federal government, local governments, private corporations, or other persons for use in the agricultural [young farmer] loan guarantee program. The legislature may appropriate money for the program. SECTION 1.15. Sections 58.057(b), (c), and (d), Agriculture Code, are transferred to Section 58.032, Agriculture Code, relettered as Subsections (g), (h), and (i) of that section, and amended to read as follows: (g) [(b)] The fund includes [account consists of funds and transfers made to the account,] grants and donations made for the purposes of the programs administered by the Texas Agricultural Finance Authority [the young farmer loan guarantee program, income earned on money in the account,] and any other money received under this chapter [subchapter]. Notwithstanding Section 404.071, Government Code, income and interest earned on money in the fund [account] shall be deposited to the credit of the fund [account]. [At the end of each state fiscal year the authority shall transfer to the general credit of the Texas agricultural fund any interest earned on the account that remains after payment of any administrative expenses of the program.] The fund [account] is exempt from the application of Section 403.095, Government Code. (h) [(c)] The board may spend not more than $100,000 during each fiscal year from income earned on the fund [account] and from application fees collected by the authority under Section 58.053 to pay the costs of administering the program. (i) [(d)] The board shall attempt to administer the fund in a manner that makes private donations to the fund an eligible itemized deduction for federal income taxation purposes. SECTION 1.16. Chapter 58, Agriculture Code, is amended by adding Subchapter F to read as follows: SUBCHAPTER F. YOUNG FARMER INTEREST RATE REDUCTION PROGRAM Sec. 58.071. DEFINITIONS. In this subchapter: (1) "Eligible lending institution" means a financial institution that makes commercial loans, is either a depository of state funds or an institution of the Farm Credit System headquartered in this state, and agrees to participate in the young farmer interest rate reduction program and to provide collateral equal to the amount of linked deposits placed with it. (2) "Linked deposit" means a time deposit governed by a written deposit agreement between the state and an eligible lending institution that provides: (A) that the eligible lending institution pay interest on the deposit at a rate that is not less than the greater of: (i) the current market rate of a United States treasury bill or note of comparable maturity minus three percent; or (ii) 0.5 percent; (B) that the state not withdraw any part of the deposit before the expiration of a period set by a written advance notice of the intention to withdraw; and (C) that the eligible lending institution agree to lend the value of the deposit to an eligible borrower at a maximum rate that is the linked deposit rate plus a maximum of four percent. Sec. 58.072. YOUNG FARMER INTEREST RATE REDUCTION PROGRAM. (a) The board shall establish a young farmer interest rate reduction program to promote the creation and expansion of agricultural businesses by young people in this state. (b) To be eligible to participate in the young farmer interest rate reduction program, an applicant must be at least 18 years of age but younger than 45 years of age. (c) The board shall approve or disapprove any and all applications under this subchapter, provided that the board may delegate this authority to the commissioner. (d) The board shall adopt rules for the loan portion of the young farmer interest rate reduction program. (e) In order to participate in the young farmer interest rate reduction program, an eligible lending institution may solicit loan applications from eligible applicants. (f) After reviewing an application and determining that the applicant is eligible and creditworthy, the eligible lending institution shall send the application for a linked deposit loan to the administrator of the authority. (g) The eligible lending institution shall certify the interest rate applicable to the specific eligible applicant and attach it to the application sent to the administrator of the authority. (h) After reviewing each loan application under this subchapter, the board or the commissioner shall recommend to the comptroller the acceptance or rejection of the application. (i) After acceptance of the application, the comptroller shall place a linked deposit with the applicable eligible lending institution for the period the comptroller considers appropriate. The comptroller may not place a deposit for a period extending beyond the state fiscal biennium in which it is placed. Subject to the limitation described by Section 58.075, the comptroller may place time deposits at an interest rate described by Section 58.071(2). (j) Before the placing of a linked deposit, the eligible lending institution and the state, represented by the comptroller, shall enter into a written deposit agreement containing the conditions on which the linked deposit is made. (k) If a lending institution holding linked deposits ceases to be either a state depository or a Farm Credit System institution headquartered in this state, the comptroller may withdraw the linked deposits. (l) The board may adopt rules that create a procedure for determining priorities for loans granted under this subchapter. Each rule adopted must state the policy objective of the rule. (m) A lending institution is not ineligible to participate in the young farmer interest rate reduction program solely because a member of the board is also an officer, director, or employee of the lending institution, provided that a board member shall recuse himself or herself from any action taken by the board on an application involving a lending institution by which the board member is employed or for which the board member serves as an officer or director. (n) Linked deposits under the young farmer interest rate reduction program shall be funded from the Texas agricultural fund. Sec. 58.073. COMPLIANCE. (a) On accepting a linked deposit, an eligible lending institution must loan money to eligible applicants in accordance with the deposit agreement and this subchapter. The eligible lending institution shall forward a compliance report to the board. (b) The board shall monitor compliance with this subchapter and inform the comptroller of noncompliance on the part of an eligible lending institution. Sec. 58.074. STATE LIABILITY PROHIBITED. The state is not liable to an eligible lending institution for payment of the principal, interest, or any late charges on a loan made under this subchapter. A delay in payment or default on a loan by a borrower does not affect the validity of the deposit agreement. Linked deposits are not an extension of the state's credit within the meaning of any state constitutional prohibition. Sec. 58.075. LIMITATIONS IN PROGRAM. (a) At any one time, not more than one-fourth of the amount of money in the Texas agricultural fund may be placed in linked deposits under this subchapter. (b) The maximum amount of a loan under this subchapter is $500,000. (c) A loan granted under this subchapter may be used for any agriculture-related operating expense, including the purchase or lease of land or fixed assets acquisition or improvement, as identified in the application. SECTION 1.17. Chapter 58, Agriculture Code, is amended by adding Subchapter G to read as follows: SUBCHAPTER G. YOUNG FARMER GRANT PROGRAM Sec. 58.091. GRANT PROGRAM. (a) The authority shall administer a young farmer grant program. A grant must be for the purpose of fostering the creation and expansion of agricultural businesses by young people in this state. (b) The board shall adopt rules governing the operation of the program and selection criteria for grant recipients. (c) The board shall select grant recipients. Sec. 58.092. ELIGIBILITY. To be eligible to receive a grant under this subchapter, a person must: (1) be an agricultural producer who is at least 18 years of age but younger than 45 years of age; and (2) provide matching funds in the amount of not less than one dollar for each dollar of grant money received. Sec. 58.093. AMOUNT OF GRANTS. A grant under the young farmer grant program may not be less than $5,000 or more than $20,000. Sec. 58.094. APPLICATIONS. (a) The authority shall accept grant applications during two application periods each year. (b) Applicants shall submit an application on a form approved by the board or the board's designee. Sec. 58.095. FUNDING. The source of funds for the young farmer grant program is the Texas agricultural fund. SECTION 1.18. Section 1232.101, Government Code, is amended to read as follows: Sec. 1232.101. ISSUANCE OF BONDS FOR CERTAIN STATE AGENCIES. With respect to all bonds authorized to be issued by or on behalf of the adjutant general's department, Parks and Wildlife Department, Texas Agricultural Finance Authority, Texas Low-Level Radioactive Waste Disposal Authority, Stephen F. Austin State University, Midwestern State University, and Texas Southern University, the authority has the exclusive authority to act on behalf of those entities in issuing bonds on their behalf. In connection with those issuances and with the issuance of refunding bonds on behalf of those entities, the authority is subject to all rights, duties, and conditions surrounding issuance previously applicable to the issuing entity under the statute authorizing the issuance. A reference in an authorizing statute to the entity on whose behalf the bonds are being issued applies equally to the authority in its capacity as issuer on behalf of the entity. SECTION 1.19. Section 1372.028(d), Government Code, is amended to read as follows: (d) An issuer is not required to provide the statement required by Subsection (c)(3)(F) if the issuer: (1) is an issuer of a state-voted issue; (2) is the Texas Department of Housing and Community Affairs[, the Texas Agricultural Finance Authority,] or the Texas State Affordable Housing Corporation; or (3) provides evidence that one or more binding contracts have been entered into, or other evidence acceptable to the board as described by program rule, to spend the unexpended proceeds by the later of: (A) 12 months after the date the board receives the application; or (B) December 31 of the program year for which the application is filed. SECTION 1.20. Section 502.174(b), Transportation Code, is amended to read as follows: (b) The county assessor-collector shall send an assessment collected under this section to the comptroller, at the time and in the manner prescribed by the Texas Agricultural Finance Authority, for deposit in the Texas agricultural fund [to the credit of the young farmer loan guarantee account]. SECTION 1.21. The following provisions are repealed: (1) Section 44.001(3), Agriculture Code; (2) Section 58.0173(c), Agriculture Code; (3) Section 58.0211(b), Agriculture Code; (4) Sections 58.057(a) and (e), Agriculture Code; and (5) Section 1372.0235, Government Code. SECTION 1.22. On the effective date of this Act: (1) the young farmer loan guarantee program under Subchapter E, Chapter 58, Agriculture Code, as that subchapter existed before amendment by this Act, is abolished; and (2) the agricultural loan guarantee program under Subchapter E, Chapter 58, Agriculture Code, as amended by this Act, is established. SECTION 1.23. On the effective date of this Act, the young farmer loan guarantee account is abolished. All money in the account on that date remains in the Texas agricultural fund. All deposits purportedly made to the account on or after that date shall be deposited in the Texas agricultural fund. All references in law or rule to the young farmer loan guarantee account mean the Texas agricultural fund. SECTION 1.24. (a) As soon as practicable on or after the effective date of this Act, the commissioner of agriculture shall appoint two members to the board of directors of the Texas Agricultural Finance Authority who represent young farmers and the interests of young farmers. In appointing those members, the commissioner shall appoint one person to a term expiring January 1, 2010, and one to a term expiring January 1, 2011. (b) The changes in law made by this Act by the amendment of Section 58.012, Agriculture Code, do not affect the entitlement of a member of the board of directors of the Texas Agricultural Finance Authority serving on the board immediately before the effective date of this Act to continue to serve on the board and carry out the board's functions for the remainder of the member's term. The changes in law apply only to a member appointed on or after the effective date of this Act. This Act does not prohibit a person who is a member of the board on the effective date of this Act from being reappointed to the board if the person has the qualifications required for a member under Section 58.012, Agriculture Code, as amended by this Act. ARTICLE 2. PRESCRIBED BURNING BOARD SECTION 2.01. Section 153.001, Natural Resources Code, is amended to read as follows: Sec. 153.001. DEFINITIONS [DEFINITION]. In this chapter: (1) "Board" [, "board"] means the Prescribed Burning Board. (2) "Department" means the Department of Agriculture. SECTION 2.02. Subchapter A, Chapter 153, Natural Resources Code, is amended by adding Section 153.004 to read as follows: Sec. 153.004. PRESCRIBED BURNING IN STATE OF EMERGENCY OR DISASTER. A certified and insured prescribed burn manager may conduct a burn in a county in which a state of emergency or state of disaster has been declared by the governor or the president of the United States, unless the declaration expressly prohibits all outdoor burning. SECTION 2.03. Section 153.041(a), Natural Resources Code, is amended to read as follows: (a) The Prescribed Burning Board is established within the department [Department of Agriculture] and is composed of: (1) an employee of the Texas Forest Service designated by the director of the Texas Forest Service; (2) an employee of the Parks and Wildlife Department appointed by the executive director of the Parks and Wildlife Department; (3) an employee of the Texas Commission on Environmental Quality [Natural Resource Conservation Commission] appointed by the executive director of the Texas Commission on Environmental Quality [Natural Resource Conservation Commission]; (4) an employee of the Texas AgriLife [Agricultural] Extension Service appointed by the executive director of the Texas AgriLife [Agricultural] Extension Service; (5) an employee of [the] Texas AgriLife Research [Agricultural Experiment Station] appointed by the director of [the] Texas AgriLife Research [Agricultural Experiment Station]; (6) an employee of the Texas Tech University Range and Wildlife Department appointed by the dean of the Texas Tech University College of Agricultural Sciences and Natural Resources; (7) an employee of the department [Department of Agriculture] appointed by the commissioner of agriculture; (8) an employee of the State Soil and Water Conservation Board appointed by the executive director of the State Soil and Water Conservation Board; and (9) five persons who are: (A) owners of agricultural land, as that term is defined by Section 153.081; (B) self-employed or employed by a person other than a governmental entity; and (C) appointed by the commissioner of agriculture. SECTION 2.04. Section 153.044, Natural Resources Code, is amended to read as follows: Sec. 153.044. SUNSET PROVISION. The Prescribed Burning Board is subject to Chapter 325, Government Code (Texas Sunset Act). The board shall be reviewed during the period in which the Department of Agriculture is reviewed [Unless continued in existence as provided by that chapter, the board is abolished and this chapter expires September 1, 2009]. SECTION 2.05. Section 153.046, Natural Resources Code, is amended to read as follows: Sec. 153.046. DUTIES. The board shall: (1) establish standards for prescribed burning; (2) develop a comprehensive training curriculum for prescribed burn managers; (3) establish standards for certification, recertification, and training for prescribed burn managers; (4) establish minimum education and professional requirements for instructors for the approved curriculum; and (5) establish minimum insurance requirements for certified and insured prescribed burn managers. SECTION 2.06. Section 153.047, Natural Resources Code, is amended to read as follows: Sec. 153.047. PRESCRIBED BURNING STANDARDS. Minimum standards established by the board for prescribed burning must: (1) ensure that prescribed burning is the controlled application of fire to naturally occurring or naturalized vegetative fuels under specified environmental conditions in accordance with a written prescription plan: (A) designed to confine the fire to a predetermined area and to accomplish planned land management objectives; and (B) that conforms to the standards established under this section; (2) require that at least one certified and insured prescribed burn manager is present on site during the conduct of the prescribed burn; (3) establish appropriate guidelines for size of burning crews sufficient to: (A) conduct the burn in accordance with the prescription plan; and (B) provide adequate protection for the safety of persons and of adjacent property; (4) include standards for notification to adjacent land owners, the Texas Commission on Environmental Quality [Natural Resource Conservation Commission], and local fire authorities; and (5) include minimum insurance requirements for certified and insured prescribed burn managers. SECTION 2.07. Sections 153.048(c) and (e), Natural Resources Code, are amended to read as follows: (c) The certification is for two [five] years. (e) The board shall maintain a register of certified and insured prescribed burn managers and dates of completion of initial and continuing training. SECTION 2.08. Sections 153.081(a) and (b), Natural Resources Code, are amended to read as follows: (a) Subject to Section 153.082, an owner, lessee, or occupant of agricultural land is not liable for property damage or for injury or death to persons caused by or resulting from prescribed burning conducted on the land owned by, leased by, or occupied by the person if the prescribed burning is conducted under the supervision of a certified and insured prescribed burn manager. (b) This section does not apply to an owner, lessee, or occupant of agricultural land who is a certified and insured prescribed burn manager and conducts a burn on that land. SECTION 2.09. Section 153.082, Natural Resources Code, is amended to read as follows: Sec. 153.082. INSURANCE. The limitation on liability under Section 153.081 does not apply to an owner, lessee, or occupant of agricultural land unless the certified and insured prescribed burn manager conducting a burn on the land has liability insurance coverage: (1) of at least $1 million for each single occurrence of bodily injury or death, or injury to or destruction of property; and (2) with a policy period minimum aggregate limit of at least $2 million. SECTION 2.10. Chapter 153, Natural Resources Code, is amended by adding Subchapter D to read as follows: SUBCHAPTER D. COMPLAINTS, ENFORCEMENT, AND PENALTIES Sec. 153.101. COMPLAINTS. The department shall receive and process complaints concerning prescribed burn managers in the manner described by Section 12.026, Agriculture Code, and rules adopted under that section. Sec. 153.102. DISCIPLINARY ACTION; SCHEDULE OF SANCTIONS. (a) The department may impose an administrative sanction, including an administrative penalty, as provided by Sections 12.020, 12.0201, 12.0202, and 12.0261, Agriculture Code, for a violation of this chapter. (b) The department by rule shall adopt a schedule of the disciplinary sanctions that the department may impose under this chapter. In adopting the schedule of sanctions, the department shall ensure that the severity of the sanction imposed is appropriate to the type of violation or conduct that is the basis for disciplinary action. (c) In determining the appropriate disciplinary action, including the amount of any administrative penalty to assess, the department shall consider: (1) whether the person: (A) is being disciplined for multiple violations of either this chapter or a rule or order adopted under this chapter; or (B) has previously been the subject of disciplinary action by the department under this chapter and has previously complied with department rules and this chapter; (2) the seriousness of the violation; (3) the threat to public safety; and (4) any mitigating factors. Sec. 153.103. INJUNCTION. (a) The department may apply to a district court in any county for an injunction to restrain a person who is not a certified and insured prescribed burn manager from representing that the person is a certified and insured prescribed burn manager. (b) At the request of the department, the attorney general shall initiate and conduct an action in a district court in the state's name to obtain an injunction under this section. Sec. 153.104. EMERGENCY SUSPENSION. (a) On determining that a certification holder is engaged in or about to engage in a violation of this chapter and that the certification holder's continued practice constitutes an immediate threat to the public welfare, the department may issue an order suspending the certification holder's certification without notice or a hearing. The department shall immediately serve notice of the suspension on the certification holder. (b) The notice required by Subsection (a) must: (1) be personally served on the certification holder or be sent by registered or certified mail, return receipt requested, to the certification holder's last known address according to the board's records; (2) state the grounds for the suspension; and (3) inform the certification holder of the right to a hearing on the suspension order. (c) A certification holder whose certification is suspended under this section is entitled to request a hearing on the suspension not later than the 30th day after the date of receipt of notice of the suspension. Not later than the fifth day after the date a hearing is requested, the department shall issue a notice of hearing. (d) The hearing shall be held not later than the fifth day after the date notice of hearing is issued, unless the parties agree to a later date. A hearing on a suspension order under this section is subject to Chapter 2001, Government Code. If the hearing is before an administrative law judge, after the hearing, the administrative law judge shall recommend to the board whether to uphold, vacate, or modify the suspension order. (e) A suspension order issued under this section remains in effect until further action is taken by the department. If the administrative law judge's recommendation under Subsection (d) is to vacate the order, the department shall determine whether to vacate the order not later than the second day after the date of the recommendation. SECTION 2.11. (a) Section 153.048(c), Natural Resources Code, as amended by this Act, applies to a certification issued or renewed after the effective date of this Act. A certification issued or renewed before the effective date of this Act is governed by the law in effect on the date the certification was issued or renewed, and the former law is continued in effect for that purpose. (b) Sections 153.102, 153.103, and 153.104, Natural Resources Code, as added by this Act, apply only to conduct that occurs on or after the effective date of this Act. Conduct that occurs before the effective date of this Act is governed by the law in effect when the conduct occurred, and the former law is continued in effect for that purpose. ARTICLE 3. TEXAS-ISRAEL EXCHANGE FUND BOARD SECTION 3.01. The heading to Chapter 45, Agriculture Code, is amended to read as follows: CHAPTER 45. TEXAS-ISRAEL EXCHANGE RESEARCH PROGRAM [FUND] SECTION 3.02. Section 45.001, Agriculture Code, is amended to read as follows: Sec. 45.001. LEGISLATIVE FINDINGS; PURPOSE. (a) The legislature finds that Texas and Israel have many interests in common. They face many of the same difficulties in agriculture; the geography of both areas produces semiarid climatic conditions; there is present in both areas a rising demand for a limited supply of water coupled with increasing pressures to minimize the use of energy in all aspects of agriculture. Scientific and technological cooperatives already produce close ties between the two areas while engaging in binational projects for scientific and industrial research and development. A program [fund] to support joint agricultural research and development by, and the development of trade and business relations between, Texas and Israel will address common problems and make substantial contributions to the development of agriculture, trade, and business in both areas. Since Texas has long emphasized broad-based agricultural research and Israel has originated and developed agricultural technologies designed to maximize production with minimal use of resources such as water and labor, each of the two areas will benefit by sharing information and expertise. (b) The purpose of this chapter is to: (1) establish a program [fund] to promote and support practical and applied agricultural research and development that will result in mutual benefit to Texas and Israel and will help to provide solutions to food and fiber production problems wherever they exist, particularly those relating to water conservation; and (2) establish a program of mutual cooperation that will foster the development of trade, mutual assistance, and business relations between Texas and Israel. SECTION 3.03. Section 45.002, Agriculture Code, is amended to read as follows: Sec. 45.002. DEFINITION [DEFINITIONS]. In this chapter,[: [(1)] "applied [Applied] research" means the process of assembling knowledge gained by careful and diligent search and studious inquiry and examination and using that knowledge to solve practical, real-world problems. [(2) "Board" means the Texas-Israel Exchange Fund Board. [(3) "Fund" means the Texas-Israel Exchange Fund.] SECTION 3.04. Section 45.005, Agriculture Code, is amended to read as follows: Sec. 45.005. GENERAL FUNCTIONS, POWERS, AND DUTIES. (a) The department may establish a binational program to support joint agricultural research and development with Israel. The scope of agricultural research and development which the program [fund] may promote and support encompasses all scientific activities related to agriculture, including production, processing, marketing, and agricultural services, with emphasis on the support of applied research to improve water, labor, and energy utilization in agriculture. (b) The program [fund] shall support applied research in areas of potential mutual interest, including: (1) water conservation; (2) water management and use; (3) soil management and conservation; (4) innovative sources of energy for agricultural production; (5) environmental aspects of agricultural technology; (6) intensive crop production; and (7) agricultural engineering and processing. (c) The program [fund] may undertake agricultural research and development projects of mutual benefit that are located in Texas, Israel, or any other location considered advisable by the department or suggested by the advisory committee [boards]. (d) The department [fund] may make research or development grants or loans to public or private entities who intend to carry out the stated objectives of the program [fund]. (e) The program [fund] shall encourage or support the exchange of agricultural producers, scientists, teachers, students, or other types of agricultural experts between the two cooperating areas of Texas and Israel. (f) The program [fund] shall encourage and support [a program of] mutual cooperation that will foster the development of trade, mutual assistance, and business relations between Texas and Israel. SECTION 3.05. Sections 45.007(b) and (d), Agriculture Code, are amended to read as follows: (b) The department [board] may accept gifts and grants from the federal government, state government, and private sources, as well as legislative appropriations to carry out the purposes of this chapter. The use of gifts and grants other than legislative appropriation is subject only to limitations contained in the gift or grant. (d) The department [board] shall make an annual accounting of all money received, awarded, and expended during the year under this chapter to the legislative committees responsible for agricultural issues. SECTION 3.06. Chapter 45, Agriculture Code, is amended by adding Section 45.009 to read as follows: Sec. 45.009. TEXAS-ISREAL EXCHANGE ADVISORY COMMITTEE. The department may establish a binational agricultural research advisory committee to provide guidance and direction on activities conducted under this chapter and the expenditure of money appropriated for the purposes of this chapter. SECTION 3.07. (a) The Texas-Israel Exchange Fund Board and the Texas-Israel Exchange Fund are abolished. (b) The following provisions of the Agriculture Code are repealed: (1) Section 45.003; (2) Section 45.004; (3) Section 45.006; (4) Sections 45.007(a) and (c); and (5) Section 45.008. ARTICLE 4. STRUCTURE OF CERTAIN BOARDS AND ADVISORY COMMITTEES SECTION 4.01. Chapter 50B, Agriculture Code, is amended by adding Section 50B.0015 to read as follows: Sec. 50B.0015. DEFINITION. In this chapter, "committee" means the wine industry development and marketing advisory committee. SECTION 4.02. Section 50B.002, Agriculture Code, is amended to read as follows: Sec. 50B.002. WINE INDUSTRY DEVELOPMENT AND MARKETING [;] ADVISORY COMMITTEE. (a) The commissioner shall [may] appoint a wine industry development and marketing advisory committee to: (1) develop a long-term vision and marketable identity for the wine industry in the state that take into consideration future industry development, funding, research, educational programming, risk management, and marketing; and (2) assist the commissioner in establishing and implementing the Texas Wine Marketing Assistance Program under Chapter 110, Alcoholic Beverage Code. (b) The committee consists of members appointed by the commissioner who represent a diverse cross-section of the wine industry, including representatives of: (1) grape growers; (2) wineries; (3) wholesalers; (4) package stores; (5) retailers; (6) researchers; (7) consumers; (8) the department; and (9) the Texas Alcoholic Beverage Commission. (c) The members of the committee serve without compensation. (d) A member of the committee serves at the pleasure of the commissioner for a term of two years. The commissioner may reappoint a member to the committee. (e) The commissioner shall select a presiding officer from among the members and adopt rules governing the operation of the committee. (f) The committee shall meet as necessary to provide guidance to the commissioner. SECTION 4.03. Sections 62.002(a) and (d), Agriculture Code, are amended to read as follows: (a) The State Seed and Plant Board is an agency of the state. The board is composed of [six members appointed by the governor with the advice and consent of the senate. Membership must include]: (1) one individual, appointed by the president of Texas A&M University, from the Soils and Crop Sciences Department, Texas Agricultural Experiment Station, Texas A&M [A & M] University; (2) one individual, appointed by the president of Texas Tech University, from the Department of Plant and Soil Sciences, Texas Tech University; (3) one individual, appointed by the commissioner, licensed as a Texas Foundation, Registered, or Certified seed or plant producer who is not employed by a public institution; (4) one individual, appointed by the commissioner, who sells Texas Foundation, Registered, or Certified seed or plants; (5) one individual, appointed by the commissioner, actively engaged in farming but not a producer or seller of Texas Foundation, Registered, or Certified seed or plants; and (6) the head of the seed division of the department. (d) The commissioner [governor] shall designate a member of the board as the chairman to serve in that capacity at the pleasure of the commissioner [governor]. The board annually shall elect a vice-chairman and secretary. The board shall meet at times and places determined by the chairman. SECTION 4.04. Section 62.0027(a), Agriculture Code, is amended to read as follows: (a) Before a member of the board may assume the member's duties [and before the member may be confirmed by the senate], the member must complete at least one course of the training program established under this section. SECTION 4.05. Sections 103.003(a) and (f), Agriculture Code, are amended to read as follows: (a) The Produce Recovery Fund Board is composed of five members appointed by the commissioner [governor with the advice and consent of the senate]. Two members must be producers, one must be a license holder licensed under Chapter 101, and two must be members of the general public. (f) The commissioner [governor] shall designate a member of the board as the chairman of the board to serve in that capacity at the pleasure of the commissioner [governor]. SECTION 4.06. Section 103.019(a), Agriculture Code, is amended to read as follows: (a) Before a member of the board may assume the member's duties [and before the member may be confirmed by the senate], the member must complete at least one course of the training program established under this section. SECTION 4.07. Section 110.002(b), Alcoholic Beverage Code, is amended to read as follows: (b) The commissioner, in consultation with the advisory committee established under Section 50B.002, Agriculture Code [110.003], shall adopt rules as necessary to implement the program. SECTION 4.08. The following statutes are repealed: (1) Section 62.0023(c), Agriculture Code; (2) Sections 103.003(b) and 103.017(c), Agriculture Code; and (3) Section 110.003, Alcoholic Beverage Code. SECTION 4.09. On the effective date of this Act, the Texas Wine Marketing Assistance Program advisory committee and the wine industry development advisory committee are abolished. The commissioner of agriculture may appoint a person who previously served on either of those committees to the wine industry development and marketing advisory committee established under Section 50B.002, Agriculture Code, as amended by this Act. SECTION 4.10. The changes in law made by this Act by the amendment of Sections 62.002 and 103.003, Agriculture Code, do not affect the entitlement of a member serving on the State Seed and Plant Board or Produce Recovery Fund Board immediately before the effective date of this Act to continue to serve as a board member for the remainder of the member's term. The changes in law apply only to a member appointed on or after the effective date of this Act. ARTICLE 5. CERTAIN AGRICULTURAL REGULATORY PROGRAMS SECTION 5.01. Section 13.251, Agriculture Code, is amended to read as follows: Sec. 13.251. DEFINITION. In this subchapter, "public weigher" means a business certified under this subchapter [person who is elected or appointed] to issue an official certificate declaring the accurate weight or measure of a commodity that the business [person] is requested to weigh. SECTION 5.02. Section 13.255, Agriculture Code, is amended to read as follows: Sec. 13.255. CERTIFICATE. (a) A public weigher[, whether elected or appointed, or deputy public weigher] may not officially weigh a commodity unless the weigher has obtained from the department a certificate of authority. (b) A [state public weigher must submit a nonrefundable fee, as provided by department rule, with the application for a certificate of authority. A county public weigher or a deputy] public weigher must submit a fee, as provided by department rule, with the application for a certificate of authority. SECTION 5.03. Section 13.2555, Agriculture Code, is amended to read as follows: Sec. 13.2555. REVOCATION, MODIFICATION, OR SUSPENSION OF CERTIFICATE. (a) The department shall revoke, modify, or suspend the certificate of authority of a [an appointed public weigher or a deputy of an appointed county] public weigher, assess an administrative penalty, place on probation the public weigher [person] whose certificate has been suspended, or reprimand a [an appointed public weigher or a deputy of an appointed county] public weigher for a violation of this subchapter or a rule adopted by the department under this subchapter. (b) If a certificate suspension is probated, the department may require the public weigher [person] to: (1) report regularly to the department on matters that are the basis of the probation; (2) limit practice to the areas prescribed by the department; or (3) continue or renew professional education until the public weigher [person] attains a degree of skill satisfactory to the department in those areas that are the basis of the probation. (c) If the department proposes to revoke, modify, or suspend a public weigher's [person's] certificate, the public weigher [person] is entitled to a hearing conducted under Section 12.032. The decision of the department is appealable in the same manner as provided for contested cases under Chapter 2001, Government Code. SECTION 5.04. Section 13.256, Agriculture Code, is amended to read as follows: Sec. 13.256. BOND. [(a)] Each [county public weigher, whether elected or appointed, and each deputy] public weigher shall execute [for the full term of office] a bond in accordance with rules adopted [that is in the amount of $2,500, approved] by the department [, and made payable to the county judge of the county for which the weigher is elected or appointed]. The bond must be conditioned on the accurate weight or measure of a commodity being reflected on the certificate issued by the public weigher [or deputy], on the protection of a commodity that the public weigher [or deputy] is requested to weigh or measure, and on compliance with all laws and rules governing public weighers. [The bond shall be filed with the county clerk's office in the county for which the public weigher or deputy is appointed or elected.] The bond is not void on first recovery. A person injured by the public weigher may sue on the bond. [(b) Each state public weigher shall execute a bond similar to the bond required under Subsection (a) of this section, except that the bond is for $10,000, made payable to the State of Texas, and filed with the department.] SECTION 5.05. Section 13.257(a), Agriculture Code, is amended to read as follows: (a) On each certificate of weight or measure that a public weigher [or deputy public weigher] issues, the public weigher [or deputy public weigher] shall include the: (1) time and date that the weight or measurement was taken; (2) signature and license number of the public weigher [or deputy public weigher]; and (3) seal of the department. SECTION 5.06. Section 13.259(a), Agriculture Code, is amended to read as follows: (a) A public weigher [or deputy public weigher] who intentionally or knowingly issues a certificate of weight or measure giving a false weight or measure for a commodity weighed or measured commits an offense. SECTION 5.07. Section 13.261, Agriculture Code, is amended to read as follows: Sec. 13.261. [POWER OF DEPARTMENT;] RULES. The department shall [may] adopt rules governing the bond requirements and [procedures to be followed in administering the] fees imposed under this subchapter. SECTION 5.08. Section 52.038, Agriculture Code, is amended to read as follows: Sec. 52.038. EXISTING CORPORATIONS AND ASSOCIATIONS. [(a)] Any corporation or association organized under prior law before March 1, 1921, may elect, by a majority vote of its members or stockholders, to adopt this chapter and become subject to it by: (1) adopting the restrictions provided by this chapter; and (2) executing, in duplicate on forms supplied by the secretary of state, an instrument, signed and acknowledged by its directors, stating that the entity, by a majority vote of its members or stockholders, has decided to accept the benefits of and be bound by this chapter[; and [(3) filing articles of incorporation in accordance with the requirements of Section 52.035 of this code except that the entity's directors shall sign the articles]. [(b) The filing fee for the articles filed under Subsection (a) of this section is equal to the filing fee for an amendment to the articles of incorporation as provided by Section 52.151 of this code.] SECTION 5.09. Section 52.151, Agriculture Code, is amended to read as follows: Sec. 52.151. TAX EXEMPTIONS [FEES]. [(a) The fee for filing articles of incorporation under this chapter is $10. [(b) The fee for filing an amendment to the articles of incorporation under this chapter is $2.50. [(c) Each marketing association shall pay to the department an annual license fee, as provided by department rule.] A marketing association is exempt from all [other] franchise or license taxes, except that a marketing association is exempt from the franchise tax imposed by Chapter 171, Tax Code, only if exempted by that chapter. SECTION 5.10. Section 101.003(b), Agriculture Code, is amended to read as follows: (b) This section does not apply to: (1) a retailer, unless the retailer: (A) has annual sales of perishable commodities that comprise 50 percent or more of the retailer's total sales; or (B) employs a buying agent who buys directly from a producer; (2) a producer who handles or deals exclusively in the producer's own products; (3) a person shipping less than six standard boxes of citrus fruit in any one separate shipment; [or] (4) a person who ships a noncommercial shipment of perishable commodities; or (5) a person who purchases perishable commodities and pays for the perishable commodities in United States currency before or at the time of delivery or taking possession. SECTION 5.11. Section 101.004, Agriculture Code, is amended to read as follows: Sec. 101.004. LICENSE OR REGISTRATION CATEGORIES. [(a)] A person shall apply for a license if the person: (1) purchases perishable commodities on credit; (2) takes possession of perishable commodities for consignment or handling on behalf of the producer or owner of the perishable commodities; or (3) takes possession of perishable commodities for consignment or handling in a manner or under a contract that does not require or result in payment to the producer, seller, or consignor of the full amount of the purchase price in United States currency at the time of delivery or at the time that the perishable commodities pass from the producer, seller, or consignor to the person. [(b) A person shall register as a cash dealer if the person purchases perishable commodities and pays for the perishable commodities in United States currency before or at the time of delivery or taking possession.] SECTION 5.12. Section 103.008(b), Agriculture Code, is amended to read as follows: (b) The total payment of all claims arising from the same contract with a license holder may not exceed $50,000 [$35,000]. SECTION 5.13. Section 121.005(a), Agriculture Code, is amended to read as follows: (a) Each rose plant or shipment of rose plants shall be labeled with[: [(1)] the proper grade[; and [(2) the number of the certificate of authority of the person selling or offering for sale the plant or shipment]. SECTION 5.14. Section 52.092(f), Election Code, is amended to read as follows: (f) Precinct offices shall be listed in the following order: (1) county commissioner; (2) justice of the peace; (3) constable[; [(4) public weigher]. SECTION 5.15. Section 172.024(a), Election Code, is amended to read as follows: (a) The filing fee for a candidate for nomination in the general primary election is as follows: (1) United States senator $5,000 (2) office elected statewide, except United States senator 3,750 (3) United States representative 3,125 (4) state senator 1,250 (5) state representative 750 (6) member, State Board of Education 300 (7) chief justice or justice, court of appeals, other than a justice specified by Subdivision (8) 1,875 (8) chief justice or justice of a court of appeals that serves a court of appeals district in which a county with a population of more than 750,000 is wholly or partly situated 2,500 (9) district judge or judge specified by Section 52.092(d) for which this schedule does not otherwise prescribe a fee 1,500 (10) district or criminal district judge of a court in a judicial district wholly contained in a county with a population of more than 850,000 2,500 (11) judge, statutory county court, other than a judge specified by Subdivision (12) 1,500 (12) judge of a statutory county court in a county with a population of more than 850,000 2,500 (13) district attorney, criminal district attorney, or county attorney performing the duties of a district attorney 1,250 (14) county commissioner, district clerk, county clerk, sheriff, county tax assessor-collector, county treasurer, or judge, constitutional county court: (A) county with a population of 200,000 or more 1,250 (B) county with a population of under 200,000 750 (15) justice of the peace or constable: (A) county with a population of 200,000 or more 1,000 (B) county with a population of under 200,000 375 (16) county surveyor or[,] inspector of hides and animals[, or public weigher] 75 (17) office of the county government for which this schedule does not otherwise prescribe a fee 750 SECTION 5.16. Section 62.160(b), Labor Code, is amended to read as follows: (b) Sections 62.051-62.054 [and Subchapter C] do not apply to an agricultural employer with respect to an employee engaged in the production of livestock. SECTION 5.17. The following statutes are repealed: (1) Section 13.252, Agriculture Code; (2) Section 13.253, Agriculture Code; (3) Section 13.2535, Agriculture Code; (4) Section 13.254, Agriculture Code; (5) Section 52.035(b), Agriculture Code; (6) Section 52.152, Agriculture Code; (7) Sections 103.008(a) and (c), Agriculture Code; (8) Section 121.004, Agriculture Code; (9) Section 62.002(1), Labor Code; and (10) Subchapter C, Chapter 62, Labor Code. SECTION 5.18. (a) The changes in law made by this Act to Subchapter E, Chapter 13, Agriculture Code, do not affect the entitlement of a public weigher or deputy public weigher elected or appointed before the effective date of this Act to serve as a public weigher or deputy public weigher for the remainder of the public weigher's or deputy public weigher's term. A public weigher or deputy public weigher elected or appointed before the effective date of this Act is governed by the law in effect immediately before the effective date of this Act, and the former law is continued in effect for that purpose. (b) The changes in law made by this Act to Section 103.008, Agriculture Code, apply only to a claim for payment filed on or after the effective date of this Act. A claim filed before that date is governed by the law in effect on the date the claim was filed, and the former law is continued in effect for that purpose. ARTICLE 6. GENERAL LICENSING PROVISIONS SECTION 6.01. Sections 12.020(a) and (c), Agriculture Code, are amended to read as follows: (a) If a person violates a provision of law [this code] described by Subsection (c) [of this section] or a rule or order adopted by the department under a provision of law [this code] described by Subsection (c) [of this section], the department may assess an administrative penalty against the person as provided by this section. (c) The provisions of law [this code] subject to this section and the applicable penalty amounts are as follows: Provision Amount of Penalty Provision Amount of Penalty Provision Amount of Penalty Chapter 41 not more than $5,000 [$1,000] Chapter 41 not more than $5,000 [$1,000] Chapter 41 not more than $5,000 [$1,000] Chapters 13, 14A, 18, 46, 61, 94, Chapters 13, 14A, 18, 46, 61, 94, Chapters 13, 14A, 18, 46, 61, 94, 95, 101, 102, 103, 121, 125, 132, 95, 101, 102, 103, 121, 125, 132, 95, 101, 102, 103, 121, 125, 132, and 134 not more than $5,000 [$500] and 134 not more than $5,000 [$500] and 134 not more than $5,000 [$500] Subchapter B, Chapter 71 Subchapter B, Chapter 71 Subchapter B, Chapter 71 Chapter 19 Chapter 19 Chapter 19 Chapter 76 not more than $5,000 [$2,000] Chapter 76 not more than $5,000 [$2,000] Chapter 76 not more than $5,000 [$2,000] Subchapters A and C, Chapter 71 Subchapters A and C, Chapter 71 Subchapters A and C, Chapter 71 Chapters 72, 73, and 74 not more than $5,000 Chapters 72, 73, and 74 not more than $5,000 Chapters 72, 73, and 74 not more than $5,000 Chapter 14 not more than $10,000 Chapter 14 not more than $10,000 Chapter 14 not more than $10,000 Chapter 1951, Occupations Code not more than $5,000 Chapter 1951, Occupations Code not more than $5,000 Chapter 1951, Occupations Code not more than $5,000 Chapter 153, Natural Resources Chapter 153, Natural Resources Chapter 153, Natural Resources Code not more than $5,000. Code not more than $5,000. Code not more than $5,000. SECTION 6.02. Section 12.023, Agriculture Code, is amended to read as follows: Sec. 12.023. EXPIRATION OF REGISTRATION OR LICENSES. The department by rule shall [may] adopt a system under which registrations or licenses required by the department expire on various dates during the year. For the year in which the registration or license expiration date is changed, registration or license fees shall be prorated on a monthly basis so that each registrant or licensee pays only that portion of the fee that is allocable to the number of months during which the registration or license is valid. On renewal of the registration or license on the new expiration date, the total renewal fee is payable. SECTION 6.03. Title 2, Agriculture Code, is amended by adding Chapter 12A to read as follows: CHAPTER 12A. GENERAL LICENSING PROVISIONS SUBCHAPTER A. POWERS AND DUTIES OF DEPARTMENT RELATED TO LICENSING Sec. 12A.001. APPLICABILITY OF PROVISIONS. The general licensing, regulatory, and enforcement provisions of Chapter 12 and this chapter apply to licensing and regulatory programs administered by the department under any law. Sec. 12A.002. CEASE AND DESIST ORDER. (a) If it appears to the commissioner that a person who is not licensed by the department is violating a statute or rule that requires the person to hold a license issued by the department or a statute or rule relating to an activity regulated by the department, the commissioner after notice and opportunity for a hearing may issue a cease and desist order prohibiting the person from engaging in the activity. (b) A violation of an order under this section constitutes grounds for imposing an administrative penalty. Sec. 12A.003. RISK-BASED INSPECTIONS. For each person licensed or regulated by the department that the department may inspect: (1) the department may conduct additional inspections based on a schedule of risk-based inspections using the following criteria: (A) the type and nature of the person; (B) whether there has been a prior violation by the person; (C) the inspection history of the person; (D) any history of complaints involving the person; and (E) any other factor determined by the department by rule; and (2) the department may waive the inspection requirement on a case-by-case basis if an emergency arises or to accommodate complaint investigation schedules. [Sections 12A.004-12A.050 reserved for expansion] SUBCHAPTER B. PUBLIC INTEREST INFORMATION AND COMPLAINT PROCEDURES Sec. 12A.051. INFORMATION REGARDING COMPLAINTS AND ENFORCEMENT PROCESS. (a) The department shall: (1) inform applicants, license holders, and the public on the department's Internet website, in department brochures, and on any other available information resource about the department's enforcement process, including each step in the complaint investigation and resolution process, from initial filing through final appeal, and the opportunity to request an informal settlement conference; and (2) inform license holders that a license holder may obtain information about a complaint made against the license holder and may obtain on request a copy of the complaint file. (b) The department shall provide to a license holder against whom a complaint has been filed: (1) the allegations made against the license holder in the complaint; and (2) on the license holder's request, any information obtained by the department in its investigation of the complaint. (c) The department shall provide the information required under Subsection (b) in a timely manner to allow the license holder time to respond to the complaint. Sec. 12A.052. COMPLAINT AND VIOLATION ANALYSIS. The department shall analyze complaints filed with and violations discovered by the department to identify any trends or issues related to certain violations, including: (1) the reason for each complaint or violation; (2) how each complaint or violation was resolved; and (3) the subject matter of each complaint or violation that was not within the jurisdiction of the department and how the department responded to the complaint or violation. [Sections 12A.053-12A.100 reserved for expansion] SUBCHAPTER C. ISSUANCE AND RENEWAL OF LICENSES Sec. 12A.101. REPLACEMENT LICENSE; FEE. The department shall issue to a license holder whose license has been lost or destroyed or whose name has been changed a replacement license if the license holder submits to the department: (1) an appropriate application; and (2) a fee in an amount established by department rule. [Sections 12A.102-12A.150 reserved for expansion] SUBCHAPTER D. EXAMINATIONS Sec. 12A.151. EXAMINATION PROCEDURES. For each licensing examination administered by the department, the department shall: (1) adopt policies and guidelines detailing the procedures for the testing process, including test admission and internal test administration procedures; and (2) post on the department's Internet website the policies that reference the testing procedures. Sec. 12A.152. EVALUATION OF EXAMINATION QUESTIONS. For each licensing examination administered by the department, the department shall periodically evaluate the effectiveness of examination questions in objectively assessing an applicant's knowledge. [Sections 12A.153-12A.200 reserved for expansion] SUBCHAPTER E. PENALTIES AND ENFORCEMENT PROCEDURES Sec. 12A.201. INFORMAL PROCEEDINGS. (a) The department by rule shall adopt procedures governing: (1) informal disposition of a contested case under Section 2001.056, Government Code; and (2) an informal proceeding held in compliance with Section 2001.054, Government Code. (b) The department shall offer the opportunity to conduct an informal settlement conference by telephone. (c) The department shall: (1) provide a license holder sufficient opportunity to indicate whether the terms of a proposed order are acceptable to the license holder; (2) indicate in the notice of violation that the license holder has the opportunity described by Subdivision (1); and (3) allow a license holder who does not agree with a proposed order to request an informal settlement conference. SECTION 6.04. The heading to Section 76.113, Agriculture Code, is amended to read as follows: Sec. 76.113. TERM [EXPIRATION] AND RENEWAL OF LICENSES. SECTION 6.05. Sections 76.113(a) and (b), Agriculture Code, are amended to read as follows: (a) Each commercial applicator or noncommercial applicator license is valid for one year [expires on the first anniversary of the date on which it was issued or renewed]. (b) Each private applicator license is valid for five years [expires on the fifth anniversary of the date on which it was issued or renewed]. SECTION 6.06. Section 76.151, Agriculture Code, is amended by amending Subsection (a) and adding Subsection (a-1) to read as follows: (a) The [For the purpose of inspection, examination, or sampling, the] department, at any time and without notice during regular business hours, may: (1) [is entitled to] enter and inspect a [at reasonable hours any] building or place owned, controlled, or operated by a person engaged in any activity regulated under this chapter or Chapter 1951, Occupations Code; and (2) inspect and review any record maintained by a person engaged in any activity regulated under this chapter or Chapter 1951, Occupations Code [registrant or dealer if from probable cause it appears that the building or place contains a pesticide]. (a-1) The department may enter and inspect a building or place or inspect and review any record under Subsection (a) as necessary to: (1) ensure compliance with this chapter or Chapter 1951, Occupations Code; or (2) investigate a complaint made to the department. SECTION 6.07. Section 76.1555(a), Agriculture Code, is amended to read as follows: (a) If a person violates a provision of this chapter or Chapter 1951, Occupations Code, or a rule or order adopted by the department under this chapter or Chapter 1951, Occupations Code, the department may assess an administrative penalty against the person as provided by Section 12.020, except that the penalty for each violation may [shall] not exceed $5,000 [$4,000 for all violations related to a single incident]. Each day a violation continues or occurs may be considered a separate violation for purposes of penalty assessment. SECTION 6.08. Section 132.024, Agriculture Code, is amended to read as follows: Sec. 132.024. LICENSE TERM [EXPIRATION]. A license issued or renewed under this chapter is valid for one year [expires on the first anniversary of the date of issuance or renewal]. SECTION 6.09. The changes in law made by this article to Sections 12.020(c) and 76.1555(a), Agriculture Code, apply only to a violation committed on or after the effective date of this Act. A violation committed before the effective date of this Act is governed by the law in effect on the date the violation occurred, and the former law is continued in effect for that purpose. ARTICLE 7. STRUCTURAL PEST CONTROL SECTION 7.01. Section 12.0201, Agriculture Code, is amended to read as follows: Sec. 12.0201. LICENSE SANCTIONS. (a) In addition to other sanctions provided by law, the department may revoke, modify, suspend, or refuse to issue or renew a license, assess an administrative penalty, place on probation a person whose license has been suspended, or reprimand a license holder if the department finds that the practitioner: (1) violated a provision of this code or Chapter 1951, Occupations Code; (2) violated a rule adopted by the department under this code or Chapter 1951, Occupations Code; or (3) after appropriate notice, failed to comply with an order of the department. (b) In addition to any other actions permitted under this code or Chapter 1951, Occupations Code, if a license suspension is probated, the department may require the practitioner: (1) to maintain additional information in the practitioner's records; (2) to report regularly to the department on matters that are the basis of the probation; (3) to limit practice to the areas prescribed by the department; or (4) to continue or review professional education until the practitioner attains a degree of skill satisfactory to the department in those areas that are the basis of the probation. SECTION 7.02. Subchapter A, Chapter 1951, Occupations Code, is amended by adding Section 1951.007 to read as follows: Sec. 1951.007. APPLICABILITY OF AGRICULTURE CODE LICENSING PROVISIONS. A provision of the Agriculture Code that applies generally to licensing or regulatory programs administered by the department, including a provision that refers generally to licensing or regulatory programs under the Agriculture Code, applies to this chapter. SECTION 7.03. Section 1951.207(a), Occupations Code, is amended to read as follows: (a) The department by rule shall adopt a policy that[: [(1)] requires a business holding a structural pest control business license to be inspected by a field inspector at least once: (1) [(A)] in the business's first year of operation; and (2) [(B)] every four years after the first year of operation[; [(2) provides for additional inspections based on a schedule of risk-based inspections using the following criteria: [(A) the type and nature of the business; [(B) whether there has been a prior violation by the business; [(C) the inspection history of the business; [(D) any history of complaints involving the business; and [(E) any other factor determined by the department by rule; and [(3) provides that the department may waive the inspection requirement on a case-by-case basis if an emergency arises or to accommodate complaint investigation schedules]. SECTION 7.04. The following provisions of the Occupations Code are repealed: (1) Section 1951.310; (2) Section 1951.311; (3) Sections 1951.501(c) and (d); (4) Subchapter L, Chapter 1951; (5) Section 1951.604; and (6) Section 1951.605. SECTION 7.05. The changes in law made by this Act by the repeal of Sections 1951.501(c) and (d), Occupations Code, apply only to a violation of Chapter 1951, Occupations Code, committed on or after the effective date of this Act. A violation committed before the effective date of this Act is governed by the law in effect on the date the violation occurred, and the former law is continued in effect for that purpose. A violation committed on or after the effective date of this Act is governed by Section 12.0201, Agriculture Code, as amended by this Act, and other applicable law. SECTION 7.06. The change in law made by this Act by the repeal of Section 1951.310, Occupations Code, applies only to the renewal of a license under Chapter 1951, Occupations Code, that expires on or after the effective date of this Act. The renewal of a license that expires before the effective date of this Act is governed by the law in effect on the date the license expired, and the former law is continued in effect for that purpose. An application submitted on or after the effective date of this Act is governed by Section 12.024, Agriculture Code, and other applicable law. SECTION 7.07. The change in law made by this Act by the repeal of Section 1951.311, Occupations Code, applies only to an application for a replacement license issued under Chapter 1951, Occupations Code, submitted on or after the effective date of this Act. An application submitted before the effective date of this Act is governed by the law in effect on the date the application was submitted, and the former law is continued in effect for that purpose. An application submitted on or after the effective date of this Act is governed by Section 12A.101, Agriculture Code, as added by this Act, and other applicable law. SECTION 7.08. The change in law made by this Act by the repeal of Subchapter L, Chapter 1951, Occupations Code, applies only to a violation committed on or after the effective date of this Act. A violation committed before that date is governed by the law in effect on the date the violation occurred, and the former law is continued in effect for that purpose. A violation committed on or after the effective date of this Act is governed by Section 12.020, Agriculture Code, as amended by this Act, and other applicable law. ARTICLE 8. SUNSET DATE AND ACROSS-THE-BOARD RECOMMENDATIONS SECTION 8.01. Section 11.003, Agriculture Code, is amended to read as follows: Sec. 11.003. SUNSET PROVISION. The Department of Agriculture is subject to Chapter 325, Government Code (Texas Sunset Act). Unless continued in existence as provided by that chapter, the department is abolished September 1, 2021 [2009]. SECTION 8.02. Section 12.0135, Agriculture Code, is amended to read as follows: Sec. 12.0135. CONFLICT PROVISIONS. (a) A person may not be a department employee employed in a "bona fide executive, administrative, or professional capacity," as that phrase is used for purposes of establishing an exemption to the overtime provisions of the federal Fair Labor Standards Act of 1938 (29 U.S.C. Section 201 et seq.), if: (1) the person is an officer, employee, or paid consultant of a Texas trade association in the field of agriculture; or (2) the person's spouse is an officer, manager, or paid consultant of a Texas trade association in the field of agriculture. (b) A person may not act as the general counsel to the commissioner or the department if the person is required to register as a lobbyist under Chapter 305, Government Code, because of the person's activities for compensation on behalf of a profession related to the operation of the department. (c) In [(b) An officer, employee, or paid consultant of a statewide Texas trade association or an affiliate of a national trade association in the field of agriculture may not be an employee of the department who is exempt from the state's position classification plan or is compensated at or above the amount prescribed by the General Appropriations Act for step 1, salary group 17, of the position classification salary schedule. [(c) A person who is the spouse of an officer, manager, or paid consultant of a statewide Texas trade association or an affiliate of a national trade association in the field of agriculture may not be an employee of the department who is exempt from the state's position classification plan or is compensated at or above the amount prescribed by the General Appropriations Act for step 1, salary group 17, of the position classification salary schedule. [(d) For the purposes of] this section, "Texas [a] trade association" means [is] a [nonprofit,] cooperative [,] and voluntarily joined statewide association of business or professional competitors in this state designed to assist its members and its industry or profession in dealing with mutual business or professional problems and in promoting their common interest. SECTION 8.03. Chapter 12, Agriculture Code, is amended by adding Section 12.0203 to read as follows: Sec. 12.0203. NEGOTIATED RULEMAKING AND ALTERNATIVE DISPUTE RESOLUTION. (a) The commissioner shall develop and implement a policy to encourage the use of: (1) negotiated rulemaking procedures under Chapter 2008, Government Code, for the adoption of department rules; and (2) appropriate alternative dispute resolution procedures under Chapter 2009, Government Code, to assist in the resolution of internal and external disputes under the department's jurisdiction. (b) The department's procedures relating to alternative dispute resolution must conform, to the extent possible, to any model guidelines issued by the State Office of Administrative Hearings for the use of alternative dispute resolution by state agencies. (c) The commissioner shall designate a trained person to: (1) coordinate the implementation of the policy adopted under Subsection (a); (2) serve as a resource for any training needed to implement the procedures for negotiated rulemaking or alternative dispute resolution; and (3) collect data concerning the effectiveness of those procedures, as implemented by the department. SECTION 8.04. Chapter 12, Agriculture Code, is amended by adding Section 12.047 to read as follows: Sec. 12.047. USE OF TECHNOLOGY. The commissioner shall implement a policy requiring the department to use appropriate technological solutions to improve the department's ability to perform its functions. The policy must ensure that the public is able to interact with the department on the Internet. ARTICLE 9. EFFECTIVE DATE SECTION 9.01. This Act takes effect September 1, 2009. Provision Amount of Penalty Chapter 41 not more than $5,000 [$1,000] Chapters 13, 14A, 18, 46, 61, 94, 95, 101, 102, 103, 121, 125, 132, and 134 not more than $5,000 [$500] Subchapter B, Chapter 71 Chapter 19 Chapter 76 not more than $5,000 [$2,000] Subchapters A and C, Chapter 71 Chapters 72, 73, and 74 not more than $5,000 Chapter 14 not more than $10,000 Chapter 1951, Occupations Code not more than $5,000 Chapter 153, Natural Resources Code not more than $5,000.