Texas 2009 - 81st Regular

Texas Senate Bill SB1016 Compare Versions

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1	1	S.B. No. 1016
2	2
3	3
4	4	AN ACT
5	5	relating to the continuation and functions of the Department of
6	6	Agriculture and the Prescribed Burning Board, the creation of the
7	7	Texas Bioenergy Policy Council and Texas Bioenergy Research
8	8	Committee, and the abolition of the Texas-Israel Exchange Fund
9	9	Board; providing penalties.
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. Subdivisions (1) and (2), Section 44.001,
13	13	Agriculture Code, 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. Subsections (a), (c), (d), (k), and (l),
42	42	Section 44.007, 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. Subsections (a) and (b), Section 44.010,
92	92	Agriculture Code, 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. Subsection (a), Section 58.013, Agriculture
140	140	Code, is 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. Subsection (a), Section 58.0176, Agriculture
147	147	Code, is 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. Subsections (c) and (d), Section 58.023,
153	153	Agriculture Code, 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 board, in consultation with the Texas Public Finance
205	205	Authority, shall adopt rules containing criteria for evaluating the
206	206	creditworthiness of loan applicants and the financial feasibility
207	207	of projects to be funded with debt instruments issued by the Texas
208	208	Public Finance Authority on behalf of the authority.
209	209	(h) The Texas Public Finance Authority may enter into a
210	210	credit agreement for a debt instrument issued by the Texas Public
211	211	Finance Authority on behalf of the authority for a period and on
212	212	conditions approved by the Texas Public Finance Authority.
213	213	(i) This subsection applies only in relation to general
214	214	obligation debt instruments. To the extent other sources of
215	215	revenue available for payment of the authority's debts are
216	216	insufficient and in accordance with the Texas Constitution, general
217	217	revenue is to be appropriated to the Texas Public Finance Authority
218	218	in an amount determined by the Texas Public Finance Authority to be
219	219	necessary to pay the principal, premium if any, and interest on
220	220	general obligation debt instruments issued by the Texas Public
221	221	Finance Authority on behalf of the authority, and that amount shall
222	222	be specified in the biennial appropriations acts.
223	223	SECTION 1.10. The heading to Subchapter E, Chapter 58,
224	224	Agriculture Code, is amended to read as follows:
225	225	SUBCHAPTER E. AGRICULTURAL [YOUNG FARMER] LOAN GUARANTEE PROGRAM
226	226	SECTION 1.11. Subdivision (2), Section 58.051, Agriculture
227	227	Code, is amended to read as follows:
228	228	(2) "Eligible applicant" means a person applying for a
229	229	loan guarantee under this subchapter who[:
230	230	[(A) is at least 18 years of age but younger than
231	231	40 years of age; and
232	232	[(B)] complies with the application procedures
233	233	prescribed by this subchapter.
234	234	SECTION 1.12. The heading to Section 58.052, Agriculture
235	235	Code, is amended to read as follows:
236	236	Sec. 58.052. AGRICULTURAL [YOUNG FARMER] LOAN GUARANTEE
237	237	PROGRAM.
238	238	SECTION 1.13. Section 58.052, Agriculture Code, is amended
239	239	by amending Subsections (b), (c), and (e) and adding Subsection (f)
240	240	to read as follows:
241	241	(b) The board, either directly or through authority
242	242	delegated to the commissioner, may grant to an eligible applicant a
243	243	guarantee of a loan made by a commercial lender for the purposes
244	244	prescribed by this subchapter. The board by rule shall establish
245	245	tiered loan guarantee limits. To be eligible to be guaranteed under
246	246	this subchapter, a loan with a term of more than one year must have a
247	247	fixed interest rate [guarantee amount may not exceed the lesser of
248	248	$250,000 or 90 percent of the loan amount].
249	249	(c) The [aggregate] amount that may be used to guarantee
250	250	loans [guaranteed] under this subchapter may not exceed
251	251	three-fourths of [twice] the amount contained in the [young farmer
252	252	loan guarantee account within the] Texas agricultural fund.
253	253	(e) The board shall adopt an agreement, to be used between a
254	254	commercial lender and an approved eligible applicant, under which
255	255	the program provides a payment from money in the Texas agricultural
256	256	fund [young farmer loan guarantee account] for the purpose of
257	257	providing a reduced interest rate on a loan guaranteed to a borrower
258	258	under this subchapter. The board shall adopt rules to implement
259	259	this subsection. The maximum rate reduction under this subsection
260	260	per year for each borrower may [shall] not exceed three percentage
261	261	points or an amount that results in $10,000 in interest savings for
262	262	the borrower for the year.
263	263	(f) The board by rule shall establish a certified lender
264	264	program under which the board may certify commercial lenders to
265	265	participate in the agricultural loan guarantee program in order to
266	266	expedite the processing of loan guarantee applications by the
267	267	board.
268	268	SECTION 1.14. Section 58.056, Agriculture Code, is amended
269	269	to read as follows:
270	270	Sec. 58.056. MONEY FOR LOAN GUARANTEE PROGRAM. The
271	271	authority may accept gifts and grants of money from the federal
272	272	government, local governments, private corporations, or other
273	273	persons for use in the agricultural [young farmer] loan guarantee
274	274	program. The legislature may appropriate money for the program.
275	275	SECTION 1.15. Subsections (b) and (d), Section 58.057,
276	276	Agriculture Code, are transferred to Section 58.032, Agriculture
277	277	Code, relettered as Subsections (g) and (h) of that section, and
278	278	amended to read as follows:
279	279	(g) [(b)] The fund includes [account consists of funds and
280	280	transfers made to the account,] grants and donations made for the
281	281	purposes of the programs administered by the Texas Agricultural
282	282	Finance Authority [the young farmer loan guarantee program, income
283	283	earned on money in the account,] and any other money received under
284	284	this chapter [subchapter]. Notwithstanding Section 404.071,
285	285	Government Code, income and interest earned on money in the fund
286	286	[account] shall be deposited to the credit of the fund [account].
287	287	[At the end of each state fiscal year the authority shall transfer
288	288	to the general credit of the Texas agricultural fund any interest
289	289	earned on the account that remains after payment of any
290	290	administrative expenses of the program.] The fund [account] is
291	291	exempt from the application of Section 403.095, Government Code.
292	292	(h) [(d)] The board shall attempt to administer the fund in
293	293	a manner that makes private donations to the fund an eligible
294	294	itemized deduction for federal income taxation purposes.
295	295	SECTION 1.16. Chapter 58, Agriculture Code, is amended by
296	296	adding Subchapter F to read as follows:
297	297	SUBCHAPTER F. YOUNG FARMER INTEREST RATE REDUCTION PROGRAM
298	298	Sec. 58.071. DEFINITIONS. In this subchapter:
299	299	(1) "Eligible lending institution" means a financial
300	300	institution that makes commercial loans, is either a depository of
301	301	state funds or an institution of the Farm Credit System
302	302	headquartered in this state, and agrees to participate in the young
303	303	farmer interest rate reduction program and to provide collateral
304	304	equal to the amount of linked deposits placed with it.
305	305	(2) "Linked deposit" means a time deposit governed by
306	306	a written deposit agreement between the state and an eligible
307	307	lending institution that provides:
308	308	(A) that the eligible lending institution pay
309	309	interest on the deposit at a rate that is not less than the greater
310	310	of:
311	311	(i) the current market rate of a United
312	312	States treasury bill or note of comparable maturity minus three
313	313	percent; or
314	314	(ii) 0.5 percent;
315	315	(B) that the state not withdraw any part of the
316	316	deposit before the expiration of a period set by a written advance
317	317	notice of the intention to withdraw; and
318	318	(C) that the eligible lending institution agree
319	319	to lend the value of the deposit to an eligible borrower at a
320	320	maximum rate that is the linked deposit rate plus a maximum of four
321	321	percent.
322	322	Sec. 58.072. YOUNG FARMER INTEREST RATE REDUCTION PROGRAM.
323	323	(a) The board shall establish a young farmer interest rate
324	324	reduction program to promote the creation and expansion of
325	325	agricultural businesses by young people in this state.
326	326	(b) To be eligible to participate in the young farmer
327	327	interest rate reduction program, an applicant must be at least 18
328	328	years of age but younger than 46 years of age.
329	329	(c) The board shall approve or disapprove any and all
330	330	applications under this subchapter, provided that the board may
331	331	delegate this authority to the commissioner.
332	332	(d) The board shall adopt rules for the loan portion of the
333	333	young farmer interest rate reduction program.
334	334	(e) In order to participate in the young farmer interest
335	335	rate reduction program, an eligible lending institution may solicit
336	336	loan applications from eligible applicants.
337	337	(f) After reviewing an application and determining that the
338	338	applicant is eligible and creditworthy, the eligible lending
339	339	institution shall send the application for a linked deposit loan to
340	340	the administrator of the authority.
341	341	(g) The eligible lending institution shall certify the
342	342	interest rate applicable to the specific eligible applicant and
343	343	attach it to the application sent to the administrator of the
344	344	authority.
345	345	(h) After reviewing each loan application under this
346	346	subchapter, the board or the commissioner shall recommend to the
347	347	comptroller the acceptance or rejection of the application.
348	348	(i) After acceptance of the application, the comptroller
349	349	shall place a linked deposit with the applicable eligible lending
350	350	institution for the period the comptroller considers appropriate.
351	351	The comptroller may not place a deposit for a period extending
352	352	beyond the state fiscal biennium in which it is placed. Subject to
353	353	the limitation described by Section 58.075, the comptroller may
354	354	place time deposits at an interest rate described by Section
355	355	58.071(2).
356	356	(j) Before the placing of a linked deposit, the eligible
357	357	lending institution and the state, represented by the comptroller,
358	358	shall enter into a written deposit agreement containing the
359	359	conditions on which the linked deposit is made.
360	360	(k) If a lending institution holding linked deposits ceases
361	361	to be either a state depository or a Farm Credit System institution
362	362	headquartered in this state, the comptroller may withdraw the
363	363	linked deposits.
364	364	(l) The board may adopt rules that create a procedure for
365	365	determining priorities for loans granted under this subchapter.
366	366	Each rule adopted must state the policy objective of the rule.
367	367	(m) A lending institution is not ineligible to participate
368	368	in the young farmer interest rate reduction program solely because
369	369	a member of the board is also an officer, director, or employee of
370	370	the lending institution, provided that a board member shall recuse
371	371	himself or herself from any action taken by the board on an
372	372	application involving a lending institution by which the board
373	373	member is employed or for which the board member serves as an
374	374	officer or director.
375	375	(n) Linked deposits under the young farmer interest rate
376	376	reduction program shall be funded from the Texas agricultural fund.
377	377	Sec. 58.073. COMPLIANCE. (a) On accepting a linked
378	378	deposit, an eligible lending institution must loan money to
379	379	eligible applicants in accordance with the deposit agreement and
380	380	this subchapter. The eligible lending institution shall forward a
381	381	compliance report to the board.
382	382	(b) The board shall monitor compliance with this subchapter
383	383	and inform the comptroller of noncompliance on the part of an
384	384	eligible lending institution.
385	385	Sec. 58.074. STATE LIABILITY PROHIBITED. The state is not
386	386	liable to an eligible lending institution for payment of the
387	387	principal, interest, or any late charges on a loan made under this
388	388	subchapter. A delay in payment or default on a loan by a borrower
389	389	does not affect the validity of the deposit agreement. Linked
390	390	deposits are not an extension of the state's credit within the
391	391	meaning of any state constitutional prohibition.
392	392	Sec. 58.075. LIMITATIONS IN PROGRAM. (a) The maximum
393	393	amount of a loan under this subchapter is $500,000.
394	394	(b) A loan granted under this subchapter may be used for any
395	395	agriculture-related operating expense, including the purchase or
396	396	lease of land or fixed assets acquisition or improvement, as
397	397	identified in the application.
398	398	SECTION 1.17. Chapter 58, Agriculture Code, is amended by
399	399	adding Subchapter G to read as follows:
400	400	SUBCHAPTER G. YOUNG FARMER GRANT PROGRAM
401	401	Sec. 58.091. GRANT PROGRAM. (a) The authority shall
402	402	administer a young farmer grant program. A grant must be for the
403	403	purpose of fostering the creation and expansion of agricultural
404	404	businesses by young people in this state.
405	405	(b) The board shall adopt rules governing the operation of
406	406	the program and selection criteria for grant recipients.
407	407	(c) The board shall select grant recipients.
408	408	Sec. 58.092. ELIGIBILITY. To be eligible to receive a grant
409	409	under this subchapter, a person must:
410	410	(1) be an agricultural producer who is at least 18
411	411	years of age but younger than 46 years of age; and
412	412	(2) provide matching funds in the amount of not less
413	413	than one dollar for each dollar of grant money received.
414	414	Sec. 58.093. AMOUNT OF GRANTS. A grant under the young
415	415	farmer grant program may not be less than $5,000 or more than
416	416	$20,000.
417	417	Sec. 58.094. APPLICATIONS. (a) The authority shall accept
418	418	grant applications during two application periods each year.
419	419	(b) Applicants shall submit an application on a form
420	420	approved by the board or the board's designee.
421	421	Sec. 58.095. FUNDING. The source of funds for the young
422	422	farmer grant program is the Texas agricultural fund.
423	423	SECTION 1.18. Section 1232.101, Government Code, is amended
424	424	to read as follows:
425	425	Sec. 1232.101. ISSUANCE OF BONDS FOR CERTAIN STATE
426	426	AGENCIES. With respect to all bonds authorized to be issued by or
427	427	on behalf of the adjutant general's department, Parks and Wildlife
428	428	Department, Texas Agricultural Finance Authority, Texas Low-Level
429	429	Radioactive Waste Disposal Authority, Stephen F. Austin State
430	430	University, Midwestern State University, and Texas Southern
431	431	University, the authority has the exclusive authority to act on
432	432	behalf of those entities in issuing bonds on their behalf. In
433	433	connection with those issuances and with the issuance of refunding
434	434	bonds on behalf of those entities, the authority is subject to all
435	435	rights, duties, and conditions surrounding issuance previously
436	436	applicable to the issuing entity under the statute authorizing the
437	437	issuance. A reference in an authorizing statute to the entity on
438	438	whose behalf the bonds are being issued applies equally to the
439	439	authority in its capacity as issuer on behalf of the entity.
440	440	SECTION 1.19. Subsection (d), Section 1372.028, Government
441	441	Code, is amended to read as follows:
442	442	(d) An issuer is not required to provide the statement
443	443	required by Subsection (c)(3)(F) if the issuer:
444	444	(1) is an issuer of a state-voted issue;
445	445	(2) is the Texas Department of Housing and Community
446	446	Affairs[, the Texas Agricultural Finance Authority,] or the Texas
447	447	State Affordable Housing Corporation; or
448	448	(3) provides evidence that one or more binding
449	449	contracts have been entered into, or other evidence acceptable to
450	450	the board as described by program rule, to spend the unexpended
451	451	proceeds by the later of:
452	452	(A) 12 months after the date the board receives
453	453	the application; or
454	454	(B) December 31 of the program year for which the
455	455	application is filed.
456	456	SECTION 1.20. Subsection (b), Section 502.174,
457	457	Transportation Code, is amended to read as follows:
458	458	(b) The county assessor-collector shall send an assessment
459	459	collected under this section to the comptroller, at the time and in
460	460	the manner prescribed by the Texas Agricultural Finance Authority,
461	461	for deposit in the Texas agricultural fund [to the credit of the
462	462	young farmer loan guarantee account].
463	463	SECTION 1.21. The following provisions are repealed:
464	464	(1) Subdivision (3), Section 44.001, Agriculture
465	465	Code;
466	466	(2) Subsection (c), Section 58.0173, Agriculture
467	467	Code;
468	468	(3) Subsection (b), Section 58.0211, Agriculture
469	469	Code;
470	470	(4) Subsections (a), (c), and (e), Section 58.057,
471	471	Agriculture Code; and
472	472	(5) Section 1372.0235, Government Code.
473	473	SECTION 1.22. On the effective date of this Act:
474	474	(1) the young farmer loan guarantee program under
475	475	Subchapter E, Chapter 58, Agriculture Code, as that subchapter
476	476	existed before amendment by this Act, is abolished; and
477	477	(2) the agricultural loan guarantee program under
478	478	Subchapter E, Chapter 58, Agriculture Code, as amended by this Act,
479	479	is established.
480	480	SECTION 1.23. On the effective date of this Act, the young
481	481	farmer loan guarantee account is abolished. All money in the
482	482	account on that date remains in the Texas agricultural fund. All
483	483	deposits purportedly made to the account on or after that date shall
484	484	be deposited in the Texas agricultural fund. All references in law
485	485	or rule to the young farmer loan guarantee account mean the Texas
486	486	agricultural fund.
487	487	SECTION 1.24. (a) As soon as practicable on or after the
488	488	effective date of this Act, the commissioner of agriculture shall
489	489	appoint two members to the board of directors of the Texas
490	490	Agricultural Finance Authority who represent young farmers and the
491	491	interests of young farmers. In appointing those members, the
492	492	commissioner shall appoint one person to a term expiring January 1,
493	493	2010, and one to a term expiring January 1, 2011.
494	494	(b) The changes in law made by this Act by the amendment of
495	495	Section 58.012, Agriculture Code, do not affect the entitlement of
496	496	a member of the board of directors of the Texas Agricultural Finance
497	497	Authority serving on the board immediately before the effective
498	498	date of this Act to continue to serve on the board and carry out the
499	499	board's functions for the remainder of the member's term. The
500	500	changes in law apply only to a member appointed on or after the
501	501	effective date of this Act. This Act does not prohibit a person who
502	502	is a member of the board on the effective date of this Act from being
503	503	reappointed to the board if the person has the qualifications
504	504	required for a member under Section 58.012, Agriculture Code, as
505	505	amended by this Act.
506	506	SECTION 1.25. Subsection (b), Section 58.041, Agriculture
507	507	Code, as added by this Act, does not apply to the extension,
508	508	renewal, or renegotiation of debt issued by the Texas Agricultural
509	509	Finance Authority before the effective date of this Act. The
510	510	extension, renewal, or renegotiation of debt issued by the Texas
511	511	Agricultural Finance Authority before the effective date of this
512	512	Act is governed by the law in effect immediately before that date,
513	513	and the former law is continued in effect for that purpose.
514	514	ARTICLE 2. PRESCRIBED BURNING BOARD
515	515	SECTION 2.01. Section 153.001, Natural Resources Code, is
516	516	amended to read as follows:
517	517	Sec. 153.001. DEFINITIONS [DEFINITION]. In this chapter:
518	518	(1) "Board"[, "board"] means the Prescribed Burning
519	519	Board.
520	520	(2) "Department" means the Department of Agriculture.
521	521	SECTION 2.02. Subchapter A, Chapter 153, Natural Resources
522	522	Code, is amended by adding Section 153.004 to read as follows:
523	523	Sec. 153.004. PRESCRIBED BURNING IN STATE OF EMERGENCY OR
524	524	DISASTER. A certified and insured prescribed burn manager may
525	525	conduct a burn in a county in which a state of emergency or state of
526	526	disaster has been declared by the governor or the president of the
527	527	United States, unless the declaration expressly prohibits all
528	528	outdoor burning.
529	529	SECTION 2.03. Subsection (a), Section 153.041, Natural
530	530	Resources Code, is amended to read as follows:
531	531	(a) The Prescribed Burning Board is established within the
532	532	department [Department of Agriculture] and is composed of:
533	533	(1) an employee of the Texas Forest Service designated
534	534	by the director of the Texas Forest Service;
535	535	(2) an employee of the Parks and Wildlife Department
536	536	appointed by the executive director of the Parks and Wildlife
537	537	Department;
538	538	(3) an employee of the Texas Commission on
539	539	Environmental Quality [Natural Resource Conservation Commission]
540	540	appointed by the executive director of the Texas Commission on
541	541	Environmental Quality [Natural Resource Conservation Commission];
542	542	(4) an employee of the Texas AgriLife [Agricultural]
543	543	Extension Service appointed by the executive director of the Texas
544	544	AgriLife [Agricultural] Extension Service;
545	545	(5) an employee of [the] Texas AgriLife Research
546	546	[Agricultural Experiment Station] appointed by the director of
547	547	[the] Texas AgriLife Research [Agricultural Experiment Station];
548	548	(6) an employee of the Texas Tech University Range and
549	549	Wildlife Department appointed by the dean of the Texas Tech
550	550	University College of Agricultural Sciences and Natural Resources;
551	551	(7) an employee of the department [Department of
552	552	Agriculture] appointed by the commissioner of agriculture;
553	553	(8) an employee of the State Soil and Water
554	554	Conservation Board appointed by the executive director of the State
555	555	Soil and Water Conservation Board; and
556	556	(9) five persons who are:
557	557	(A) owners of agricultural land, as that term is
558	558	defined by Section 153.081;
559	559	(B) self-employed or employed by a person other
560	560	than a governmental entity; and
561	561	(C) appointed by the commissioner of
562	562	agriculture.
563	563	SECTION 2.04. Section 153.044, Natural Resources Code, is
564	564	amended to read as follows:
565	565	Sec. 153.044. SUNSET PROVISION. The Prescribed Burning
566	566	Board is subject to Chapter 325, Government Code (Texas Sunset
567	567	Act). The board shall be reviewed during the period in which the
568	568	Department of Agriculture is reviewed [Unless continued in
569	569	existence as provided by that chapter, the board is abolished and
570	570	this chapter expires September 1, 2009].
571	571	SECTION 2.05. Section 153.046, Natural Resources Code, is
572	572	amended to read as follows:
573	573	Sec. 153.046. DUTIES. The board shall:
574	574	(1) establish standards for prescribed burning;
575	575	(2) develop a comprehensive training curriculum for
576	576	certified and insured prescribed burn managers;
577	577	(3) establish standards for certification,
578	578	recertification, and training for certified and insured prescribed
579	579	burn managers;
580	580	(4) establish minimum education and professional
581	581	requirements for instructors for the approved curriculum; and
582	582	(5) establish minimum insurance requirements for
583	583	certified and insured prescribed burn managers.
584	584	SECTION 2.06. Section 153.047, Natural Resources Code, is
585	585	amended to read as follows:
586	586	Sec. 153.047. PRESCRIBED BURNING STANDARDS. Minimum
587	587	standards established by the board for prescribed burning must:
588	588	(1) ensure that prescribed burning is the controlled
589	589	application of fire to naturally occurring or naturalized
590	590	vegetative fuels under specified environmental conditions in
591	591	accordance with a written prescription plan:
592	592	(A) designed to confine the fire to a
593	593	predetermined area and to accomplish planned land management
594	594	objectives; and
595	595	(B) that conforms to the standards established
596	596	under this section;
597	597	(2) require that at least one certified and insured
598	598	prescribed burn manager is present on site during the conduct of the
599	599	prescribed burn;
600	600	(3) establish appropriate guidelines for size of
601	601	burning crews sufficient to:
602	602	(A) conduct the burn in accordance with the
603	603	prescription plan; and
604	604	(B) provide adequate protection for the safety of
605	605	persons and of adjacent property;
606	606	(4) include standards for notification to adjacent
607	607	land owners, the Texas Commission on Environmental Quality [Natural
608	608	Resource Conservation Commission], and local fire authorities; and
609	609	(5) include minimum insurance requirements for
610	610	certified and insured prescribed burn managers.
611	611	SECTION 2.07. Subsections (c) and (e), Section 153.048,
612	612	Natural Resources Code, are amended to read as follows:
613	613	(c) The certification is for two [five] years.
614	614	(e) The board shall maintain a register of certified and
615	615	insured prescribed burn managers and dates of completion of initial
616	616	and continuing training.
617	617	SECTION 2.08. Subsections (a) and (b), Section 153.081,
618	618	Natural Resources Code, are amended to read as follows:
619	619	(a) Subject to Section 153.082, an owner, lessee, or
620	620	occupant of agricultural land is not liable for property damage or
621	621	for injury or death to persons caused by or resulting from
622	622	prescribed burning conducted on the land owned by, leased by, or
623	623	occupied by the person if the prescribed burning is conducted under
624	624	the supervision of a certified and insured prescribed burn manager.
625	625	(b) This section does not apply to an owner, lessee, or
626	626	occupant of agricultural land who is a certified and insured
627	627	prescribed burn manager and conducts a burn on that land.
628	628	SECTION 2.09. Section 153.082, Natural Resources Code, is
629	629	amended to read as follows:
630	630	Sec. 153.082. INSURANCE. The limitation on liability under
631	631	Section 153.081 does not apply to an owner, lessee, or occupant of
632	632	agricultural land unless the certified and insured prescribed burn
633	633	manager conducting a burn on the land has liability insurance
634	634	coverage:
635	635	(1) of at least $1 million for each single occurrence
636	636	of bodily injury or death, or injury to or destruction of property;
637	637	and
638	638	(2) with a policy period minimum aggregate limit of at
639	639	least $2 million.
640	640	SECTION 2.10. Chapter 153, Natural Resources Code, is
641	641	amended by adding Subchapter D to read as follows:
642	642	SUBCHAPTER D. COMPLAINTS, ENFORCEMENT, AND PENALTIES
643	643	Sec. 153.101. COMPLAINTS. The department shall receive and
644	644	process complaints concerning certified and insured prescribed
645	645	burn managers in the manner described by Section 12.026,
646	646	Agriculture Code, and rules adopted under that section.
647	647	Sec. 153.102. DISCIPLINARY ACTION; SCHEDULE OF SANCTIONS.
648	648	(a) The department may impose an administrative sanction,
649	649	including an administrative penalty, as provided by Sections
650	650	12.020, 12.0201, 12.0202, and 12.0261, Agriculture Code, for a
651	651	violation of this chapter.
652	652	(b) The department by rule shall adopt a schedule of the
653	653	disciplinary sanctions that the department may impose under this
654	654	chapter. In adopting the schedule of sanctions, the department
655	655	shall ensure that the severity of the sanction imposed is
656	656	appropriate to the type of violation or conduct that is the basis
657	657	for disciplinary action.
658	658	(c) In determining the appropriate disciplinary action,
659	659	including the amount of any administrative penalty to assess, the
660	660	department shall consider:
661	661	(1) whether the person:
662	662	(A) is being disciplined for multiple violations
663	663	of either this chapter or a rule or order adopted under this
664	664	chapter; or
665	665	(B) has previously been the subject of
666	666	disciplinary action by the department under this chapter and has
667	667	previously complied with department rules and this chapter;
668	668	(2) the seriousness of the violation;
669	669	(3) the threat to public safety; and
670	670	(4) any mitigating factors.
671	671	Sec. 153.103. INJUNCTION. (a) The department may apply to
672	672	a district court in any county for an injunction to restrain a
673	673	person who is not a certified and insured prescribed burn manager
674	674	from representing that the person is a certified and insured
675	675	prescribed burn manager.
676	676	(b) At the request of the department, the attorney general
677	677	shall initiate and conduct an action in a district court in the
678	678	state's name to obtain an injunction under this section.
679	679	Sec. 153.104. EMERGENCY SUSPENSION. (a) On determining
680	680	that a certification holder is engaged in or about to engage in a
681	681	violation of this chapter and that the certification holder's
682	682	continued practice constitutes an immediate threat to the public
683	683	welfare, the department may issue an order suspending the
684	684	certification holder's certification without notice or a hearing.
685	685	The department shall immediately serve notice of the suspension on
686	686	the certification holder.
687	687	(b) The notice required by Subsection (a) must:
688	688	(1) be personally served on the certification holder
689	689	or be sent by registered or certified mail, return receipt
690	690	requested, to the certification holder's last known address
691	691	according to the department's records;
692	692	(2) state the grounds for the suspension; and
693	693	(3) inform the certification holder of the right to a
694	694	hearing on the suspension order.
695	695	(c) A certification holder whose certification is suspended
696	696	under this section is entitled to request a hearing on the
697	697	suspension not later than the 30th day after the date of receipt of
698	698	notice of the suspension. Not later than the fifth day after the
699	699	date a hearing is requested, the department shall issue a notice of
700	700	hearing.
701	701	(d) A hearing on a suspension order under this section is
702	702	subject to Chapter 2001, Government Code. If the hearing is before
703	703	an administrative law judge, after the hearing, the administrative
704	704	law judge shall recommend to the department whether to uphold,
705	705	vacate, or modify the suspension order.
706	706	(e) A suspension order issued under this section remains in
707	707	effect until further action is taken by the department. If the
708	708	administrative law judge's recommendation under Subsection (d) is
709	709	to vacate the order, the department shall determine whether to
710	710	vacate the order not later than the second day after the date of the
711	711	recommendation.
712	712	SECTION 2.11. (a) Subsection (c), Section 153.048,
713	713	Natural Resources Code, as amended by this Act, applies to a
714	714	certification issued or renewed after the effective date of this
715	715	Act. A certification issued or renewed before the effective date of
716	716	this Act is governed by the law in effect on the date the
717	717	certification was issued or renewed, and the former law is
718	718	continued in effect for that purpose.
719	719	(b) Sections 153.102, 153.103, and 153.104, Natural
720	720	Resources Code, as added by this Act, apply only to conduct that
721	721	occurs on or after the effective date of this Act. Conduct that
722	722	occurs before the effective date of this Act is governed by the law
723	723	in effect when the conduct occurred, and the former law is continued
724	724	in effect for that purpose.
725	725	ARTICLE 3. TEXAS-ISRAEL EXCHANGE FUND BOARD
726	726	SECTION 3.01. The heading to Chapter 45, Agriculture Code,
727	727	is amended to read as follows:
728	728	CHAPTER 45. TEXAS-ISRAEL EXCHANGE RESEARCH PROGRAM [FUND]
729	729	SECTION 3.02. Section 45.001, Agriculture Code, is amended
730	730	to read as follows:
731	731	Sec. 45.001. LEGISLATIVE FINDINGS; PURPOSE. (a) The
732	732	legislature finds that Texas and Israel have many interests in
733	733	common. They face many of the same difficulties in agriculture; the
734	734	geography of both areas produces semiarid climatic conditions;
735	735	there is present in both areas a rising demand for a limited supply
736	736	of water coupled with increasing pressures to minimize the use of
737	737	energy in all aspects of agriculture. Scientific and technological
738	738	cooperatives already produce close ties between the two areas while
739	739	engaging in binational projects for scientific and industrial
740	740	research and development.
741	741	A program [fund] to support joint agricultural research and
742	742	development by, and the development of trade and business relations
743	743	between, Texas and Israel will address common problems and make
744	744	substantial contributions to the development of agriculture,
745	745	trade, and business in both areas. Since Texas has long emphasized
746	746	broad-based agricultural research and Israel has originated and
747	747	developed agricultural technologies designed to maximize
748	748	production with minimal use of resources such as water and labor,
749	749	each of the two areas will benefit by sharing information and
750	750	expertise.
751	751	(b) The purpose of this chapter is to:
752	752	(1) establish a program [fund] to promote and support
753	753	practical and applied agricultural research and development that
754	754	will result in mutual benefit to Texas and Israel and will help to
755	755	provide solutions to food and fiber production problems wherever
756	756	they exist, particularly those relating to water conservation; and
757	757	(2) establish a program of mutual cooperation that
758	758	will foster the development of trade, mutual assistance, and
759	759	business relations between Texas and Israel.
760	760	SECTION 3.03. Section 45.002, Agriculture Code, is amended
761	761	to read as follows:
762	762	Sec. 45.002. DEFINITION [DEFINITIONS]. In this chapter,[:
763	763	[(1)] "applied [Applied] research" means the process
764	764	of assembling knowledge gained by careful and diligent search and
765	765	studious inquiry and examination and using that knowledge to solve
766	766	practical, real-world problems.
767	767	[(2) "Board" means the Texas-Israel Exchange Fund
768	768	Board.
769	769	[(3) "Fund" means the Texas-Israel Exchange Fund.]
770	770	SECTION 3.04. Section 45.005, Agriculture Code, is amended
771	771	to read as follows:
772	772	Sec. 45.005. GENERAL FUNCTIONS, POWERS, AND DUTIES.
773	773	(a) The department may establish a binational program to support
774	774	joint agricultural research and development with Israel. The scope
775	775	of agricultural research and development which the program [fund]
776	776	may promote and support encompasses all scientific activities
777	777	related to agriculture, including production, processing,
778	778	marketing, and agricultural services, with emphasis on the support
779	779	of applied research to improve water, labor, and energy utilization
780	780	in agriculture.
781	781	(b) The program [fund] shall support applied research in
782	782	areas of potential mutual interest, including:
783	783	(1) water conservation;
784	784	(2) water management and use;
785	785	(3) soil management and conservation;
786	786	(4) innovative sources of energy for agricultural
787	787	production;
788	788	(5) environmental aspects of agricultural technology;
789	789	(6) intensive crop production; and
790	790	(7) agricultural engineering and processing.
791	791	(c) The program [fund] may undertake agricultural research
792	792	and development projects of mutual benefit that are located in
793	793	Texas, Israel, or any other location considered advisable by the
794	794	department or suggested by the advisory committee [boards].
795	795	(d) The department [fund] may make research or development
796	796	grants or loans to public or private entities who intend to carry
797	797	out the stated objectives of the program [fund].
798	798	(e) The program [fund] shall encourage or support the
799	799	exchange of agricultural producers, scientists, teachers,
800	800	students, or other types of agricultural experts between the two
801	801	cooperating areas of Texas and Israel.
802	802	(f) The program [fund] shall encourage and support [a
803	803	program of] mutual cooperation that will foster the development of
804	804	trade, mutual assistance, and business relations between Texas and
805	805	Israel.
806	806	SECTION 3.05. Subsections (b) and (d), Section 45.007,
807	807	Agriculture Code, are amended to read as follows:
808	808	(b) The department [board] may accept gifts and grants from
809	809	the federal government, state government, and private sources, as
810	810	well as legislative appropriations to carry out the purposes of
811	811	this chapter. The use of gifts and grants other than legislative
812	812	appropriation is subject only to limitations contained in the gift
813	813	or grant.
814	814	(d) The department [board] shall make an annual accounting
815	815	of all money received, awarded, and expended during the year under
816	816	this chapter to the legislative committees responsible for
817	817	agricultural issues.
818	818	SECTION 3.06. Chapter 45, Agriculture Code, is amended by
819	819	adding Section 45.009 to read as follows:
820	820	Sec. 45.009. TEXAS-ISRAEL EXCHANGE ADVISORY COMMITTEE. The
821	821	department may establish a binational agricultural research
822	822	advisory committee to provide guidance and direction on activities
823	823	conducted under this chapter and the expenditure of money
824	824	appropriated for the purposes of this chapter.
825	825	SECTION 3.07. (a) The Texas-Israel Exchange Fund Board and
826	826	the Texas-Israel Exchange Fund are abolished.
827	827	(b) The following provisions of the Agriculture Code are
828	828	repealed:
829	829	(1) Section 45.003;
830	830	(2) Section 45.004;
831	831	(3) Section 45.006;
832	832	(4) Subsections (a) and (c), Section 45.007; and
833	833	(5) Section 45.008.
834	834	ARTICLE 4. STRUCTURE OF CERTAIN BOARDS AND ADVISORY COMMITTEES
835	835	SECTION 4.01. Chapter 50B, Agriculture Code, is amended by
836	836	adding Section 50B.0015 to read as follows:
837	837	Sec. 50B.0015. DEFINITION. In this chapter, "committee"
838	838	means the wine industry development and marketing advisory
839	839	committee.
840	840	SECTION 4.02. Section 50B.002, Agriculture Code, is amended
841	841	to read as follows:
842	842	Sec. 50B.002. WINE INDUSTRY DEVELOPMENT AND MARKETING[;]
843	843	ADVISORY COMMITTEE. (a) The commissioner shall [may] appoint a
844	844	wine industry development and marketing advisory committee to:
845	845	(1) develop a long-term vision and marketable identity
846	846	for the wine industry in the state that take into consideration
847	847	future industry development, funding, research, educational
848	848	programming, risk management, and marketing; and
849	849	(2) assist the commissioner in establishing and
850	850	implementing the Texas Wine Marketing Assistance Program under
851	851	Chapter 110, Alcoholic Beverage Code.
852	852	(b) The committee consists of members appointed by the
853	853	commissioner who represent a diverse cross-section of the wine
854	854	industry, including representatives of:
855	855	(1) grape growers;
856	856	(2) wineries;
857	857	(3) wholesalers;
858	858	(4) package stores;
859	859	(5) retailers;
860	860	(6) researchers;
861	861	(7) consumers;
862	862	(8) the department; and
863	863	(9) the Texas Alcoholic Beverage Commission.
864	864	(c) The members of the committee serve without
865	865	compensation.
866	866	(d) A member of the committee serves at the pleasure of the
867	867	commissioner for a term of two years. The commissioner may
868	868	reappoint a member to the committee.
869	869	(e) The commissioner shall select a presiding officer from
870	870	among the members and adopt rules governing the operation of the
871	871	committee.
872	872	(f) The committee shall meet as necessary to provide
873	873	guidance to the commissioner.
874	874	SECTION 4.03. Title 3, Agriculture Code, is amended by
875	875	adding Chapter 50D to read as follows:
876	876	CHAPTER 50D. TEXAS BIOENERGY POLICY COUNCIL AND TEXAS BIOENERGY
877	877	RESEARCH COMMITTEE
878	878	SUBCHAPTER A. GENERAL PROVISIONS
879	879	Sec. 50D.001. PURPOSE. The purpose of the Texas Bioenergy
880	880	Policy Council and the Texas Bioenergy Research Committee is to
881	881	promote the goal of making biofuels a significant part of the energy
882	882	industry in this state not later than January 1, 2019.
883	883	Sec. 50D.002. DEFINITIONS. In this chapter:
884	884	(1) "Alternative chemical feedstock" means a
885	885	feedstock that is produced by a thermochemical process that
886	886	converts alternative sources of fuel, including biomass, or other
887	887	renewable sources, to a raw material to be used in the chemical
888	888	manufacturing process.
889	889	(2) "Policy council" means the Texas Bioenergy Policy
890	890	Council.
891	891	(3) "Research committee" means the Texas Bioenergy
892	892	Research Committee.
893	893	Sec. 50D.003. ADMINISTRATIVE SUPPORT. The department:
894	894	(1) shall provide administrative support, including
895	895	staff, to the policy council; and
896	896	(2) may allocate appropriate administrative support
897	897	to the research committee.
898	898	[Sections 50D.004-50D.010 reserved for expansion]
899	899	SUBCHAPTER B. TEXAS BIOENERGY POLICY COUNCIL
900	900	Sec. 50D.011. COMPOSITION. (a) The policy council is
901	901	composed of the following 18 members:
902	902	(1) the commissioner, who serves as chair of the
903	903	policy council;
904	904	(2) one representative of the Railroad Commission of
905	905	Texas designated by the commission;
906	906	(3) one representative of the Texas Commission on
907	907	Environmental Quality designated by the commission;
908	908	(4) one representative of the Public Utility
909	909	Commission of Texas designated by the commission;
910	910	(5) one representative of the Texas Water Development
911	911	Board designated by the board;
912	912	(6) the chancellor of The Texas A&M University System,
913	913	or the person designated by the chancellor;
914	914	(7) the chancellor of the Texas Tech University
915	915	System, or the person designated by the chancellor;
916	916	(8) the chancellor of The University of Texas System,
917	917	or the person designated by the chancellor;
918	918	(9) one member of the senate appointed by the
919	919	lieutenant governor;
920	920	(10) one member of the house of representatives
921	921	appointed by the speaker of the house of representatives; and
922	922	(11) eight members appointed by the governor, with
923	923	each of the following industries or groups represented by one
924	924	member:
925	925	(A) research and development of feedstock and
926	926	feedstock production;
927	927	(B) retail distribution of energy;
928	928	(C) transportation of biomass feedstock;
929	929	(D) agricultural production for bioenergy
930	930	production or agricultural waste used for production of bioenergy;
931	931	(E) production of biodiesel from nonfood
932	932	feedstocks;
933	933	(F) production of ethanol from nonfood
934	934	feedstocks;
935	935	(G) bio-based electricity generation; and
936	936	(H) chemical manufacturing.
937	937	(b) The eight members of the policy council appointed by the
938	938	governor serve at the governor's pleasure and have two-year
939	939	staggered terms, with the terms of either three or four members
940	940	expiring on January 1 of each year.
941	941	(c) The governor shall fill any vacancy in a position
942	942	appointed by the governor for the remainder of the unexpired term.
943	943	(d) Appointments to the policy council must be made without
944	944	regard to the race, color, disability, sex, religion, age, or
945	945	national origin of the appointees.
946	946	(e) The policy council is subject to Chapters 551 and 2001,
947	947	Government Code.
948	948	Sec. 50D.012. REMOVAL OF POLICY COUNCIL MEMBERS. (a) A
949	949	member of the policy council may be removed from the policy council
950	950	if the member:
951	951	(1) is not able to devote the time necessary to perform
952	952	the member's duties as a member;
953	953	(2) cannot because of illness or disability discharge
954	954	the member's duties or cannot discharge those duties for a
955	955	substantial part of the term for which the member is appointed; or
956	956	(3) is absent from more than half of the regularly
957	957	scheduled policy council meetings that the member is eligible to
958	958	attend during a calendar year, unless the absence is excused by a
959	959	majority vote of the policy council.
960	960	(b) An action of the policy council is not invalid because a
961	961	ground for removal of a policy council member exists at the time the
962	962	action is taken.
963	963	(c) If the commissioner has knowledge that a potential
964	964	ground for removal of a policy council member exists, the
965	965	commissioner shall notify the governor and attorney general of the
966	966	potential ground for removal.
967	967	Sec. 50D.013. DUTIES OF POLICY COUNCIL. (a) The policy
968	968	council shall:
969	969	(1) provide a vision for unifying this state's
970	970	agricultural, energy, and research strengths in a successful launch
971	971	of a cellulosic biofuel and bioenergy industry;
972	972	(2) foster development of cellulosic-based and
973	973	bio-based fuels and build on the Texas emerging technology fund's
974	974	investments in leading-edge energy research and efforts to
975	975	commercialize the production of bioenergy;
976	976	(3) pursue the creation of a next-generation biofuels
977	977	energy research program at a university in this state;
978	978	(4) work to procure federal and other funding to aid
979	979	this state in becoming a bioenergy leader;
980	980	(5) study the feasibility and economic development
981	981	effect of a blending requirement for biodiesel or cellulosic fuels;
982	982	(6) pursue the development and use of thermochemical
983	983	process technologies to produce alternative chemical feedstocks;
984	984	(7) study the feasibility and economic development of
985	985	the requirements for pipeline-quality, renewable natural gas; and
986	986	(8) perform other advisory duties as requested by the
987	987	commissioner regarding the responsible development of bioenergy
988	988	resources in this state.
989	989	(b) The policy council shall meet regularly as necessary at
990	990	the call of the commissioner.
991	991	Sec. 50D.014. REIMBURSEMENT OF EXPENSES. A member of the
992	992	policy council may not receive compensation for service on the
993	993	council. Subject to availability of funds, a policy council member
994	994	may receive reimbursement for the actual and necessary expenses
995	995	incurred while conducting policy council business.
996	996	Sec. 50D.015. COORDINATION WITH FEDERAL GOVERNMENT ON
997	997	BIOENERGY POLICY. (a) In this section, "state agency" has the
998	998	meaning assigned by Section 315.002, Government Code.
999	999	(b) The policy council shall take reasonable steps to track
1000	1000	the development of federal bioenergy policy and provide information
1001	1001	relating to federal regulatory developments to each affected state
1002	1002	agency.
1003	1003	(c) Not later than October 1, 2009, the Texas Commission on
1004	1004	Environmental Quality shall request a determination by the United
1005	1005	States Environmental Protection Agency that this state will not
1006	1006	lose nitrogen oxide emission reduction credits currently
1007	1007	recognized as part of the state implementation plan if:
1008	1008	(1) this state allows the use of biodiesel and
1009	1009	biodiesel blends with no additives; and
1010	1010	(2) the final blend of fuel complies with state and
1011	1011	federal standards for cetane and aromatic hydrocarbon content.
1012	1012	(d) If the Texas Commission on Environmental Quality
1013	1013	receives a determination from the United States Environmental
1014	1014	Protection Agency that this state will not lose nitrogen oxide
1015	1015	emission reduction credits as a result of the use of biodiesel or
1016	1016	biodiesel blends with no additives, or if the commission
1017	1017	independently makes that determination, the commission may not
1018	1018	adopt or implement rules that restrict the production or
1019	1019	distribution of biodiesel or biodiesel blends in a manner more
1020	1020	stringent than provided by federal law.
1021	1021	[Sections 50D.016-50D.020 reserved for expansion]
1022	1022	SUBCHAPTER C. TEXAS BIOENERGY RESEARCH COMMITTEE
1023	1023	Sec. 50D.021. COMPOSITION. (a) The research committee is
1024	1024	composed of the following 16 members:
1025	1025	(1) the commissioner or the person designated by the
1026	1026	commissioner, who serves as the chair of the research committee;
1027	1027	(2) one representative of the Railroad Commission of
1028	1028	Texas designated by the commission;
1029	1029	(3) one representative of the Texas Commission on
1030	1030	Environmental Quality designated by the commission;
1031	1031	(4) one representative of the Public Utility
1032	1032	Commission of Texas designated by the commission;
1033	1033	(5) one representative of the Texas Water Development
1034	1034	Board designated by the board;
1035	1035	(6) one researcher or specialist in the bioenergy
1036	1036	field from each of the following university systems, appointed by
1037	1037	the chancellor of the system:
1038	1038	(A) The Texas A&M University System;
1039	1039	(B) the Texas Tech University System; and
1040	1040	(C) The University of Texas System; and
1041	1041	(7) eight members, with a member appointed by each
1042	1042	policy council member appointed by the governor under Section
1043	1043	50D.011(a)(11).
1044	1044	(b) The eight members of the research committee appointed
1045	1045	under Subsection (a)(7) serve at the governor's pleasure and have
1046	1046	two-year staggered terms, with the terms of either three or four
1047	1047	members expiring on January 1 of each year.
1048	1048	(c) The governor shall fill any vacancy in a position
1049	1049	appointed under Subsection (a)(7) for the remainder of the
1050	1050	unexpired term.
1051	1051	(d) Appointments to the research committee must be made
1052	1052	without regard to the race, color, disability, sex, religion, age,
1053	1053	or national origin of the appointees.
1054	1054	(e) The research committee is subject to Chapters 551 and
1055	1055	2001, Government Code.
1056	1056	Sec. 50D.022. REMOVAL OF RESEARCH COMMITTEE MEMBERS.
1057	1057	(a) A member of the research committee may be removed from the
1058	1058	research committee if the member:
1059	1059	(1) is not able to devote the time necessary to perform
1060	1060	the member's duties as a member;
1061	1061	(2) cannot because of illness or disability discharge
1062	1062	the member's duties or cannot discharge those duties for a
1063	1063	substantial part of the term for which the member is appointed; or
1064	1064	(3) is absent from more than half of the regularly
1065	1065	scheduled committee meetings that the member is eligible to attend
1066	1066	during a calendar year, unless the absence is excused by a majority
1067	1067	vote of the committee.
1068	1068	(b) An action of the research committee is not invalid
1069	1069	because a ground for removal of a committee member exists at the
1070	1070	time the action is taken.
1071	1071	(c) If the commissioner has knowledge that a potential
1072	1072	ground for removal of a committee member exists, the commissioner
1073	1073	shall notify the governor and attorney general of the potential
1074	1074	ground for removal.
1075	1075	Sec. 50D.023. PURPOSES AND DUTY OF RESEARCH COMMITTEE.
1076	1076	(a) The research committee is a research consortium among academic
1077	1077	and technical research leadership, with active involvement by all
1078	1078	sectors of the economy interested in bioenergy development.
1079	1079	(b) The research committee shall:
1080	1080	(1) identify and research appropriate and desirable
1081	1081	biomass feedstock for each geographic region of this state;
1082	1082	(2) investigate logistical challenges to the
1083	1083	planting, harvesting, and transporting of large volumes of biomass
1084	1084	and provide recommendations to the policy council that will aid in
1085	1085	overcoming barriers to the transportation, distribution, and
1086	1086	marketing of bioenergy;
1087	1087	(3) identify strategies for and obstacles to the
1088	1088	potential transition of the agriculture industry in western regions
1089	1089	of this state to dryland bioenergy crops that are not dependent on
1090	1090	groundwater resources;
1091	1091	(4) explore regions of this state, including coastal
1092	1092	areas, that may contain available marginal land for use in growing
1093	1093	bioenergy feedstocks;
1094	1094	(5) study the potential for producing oil from algae;
1095	1095	(6) study the potential for the advancement of
1096	1096	thermochemical process technologies to produce alternative
1097	1097	chemical feedstocks;
1098	1098	(7) study the potential for producing
1099	1099	pipeline-quality natural gas from renewable sources; and
1100	1100	(8) perform other research duties as requested by the
1101	1101	commissioner relating to the responsible development of bioenergy
1102	1102	resources in this state.
1103	1103	(c) The research committee shall meet at the call of the
1104	1104	commissioner.
1105	1105	Sec. 50D.024. REIMBURSEMENT OF EXPENSES. A member of the
1106	1106	research committee may not receive compensation for service on the
1107	1107	committee. Subject to availability of funds, a research committee
1108	1108	member may receive reimbursement for the actual and necessary
1109	1109	expenses incurred while conducting research committee business.
1110	1110	SECTION 4.04. Subsections (a) and (d), Section 62.002,
1111	1111	Agriculture Code, are amended to read as follows:
1112	1112	(a) The State Seed and Plant Board is an agency of the state.
1113	1113	The board is composed of [six members appointed by the governor with
1114	1114	the advice and consent of the senate. Membership must include]:
1115	1115	(1) one individual, appointed by the president of
1116	1116	Texas A&M University, from the Soils and Crop Sciences Department,
1117	1117	Texas Agricultural Experiment Station, Texas A&M [A & M]
1118	1118	University;
1119	1119	(2) one individual, appointed by the president of
1120	1120	Texas Tech University, from the Department of Plant and Soil
1121	1121	Sciences, Texas Tech University;
1122	1122	(3) one individual, appointed by the commissioner,
1123	1123	licensed as a Texas Foundation, Registered, or Certified seed or
1124	1124	plant producer who is not employed by a public institution;
1125	1125	(4) one individual, appointed by the commissioner, who
1126	1126	sells Texas Foundation, Registered, or Certified seed or plants;
1127	1127	(5) one individual, appointed by the commissioner,
1128	1128	actively engaged in farming but not a producer or seller of Texas
1129	1129	Foundation, Registered, or Certified seed or plants; and
1130	1130	(6) the head of the seed division of the department.
1131	1131	(d) The commissioner [governor] shall designate a member of
1132	1132	the board as the chairman to serve in that capacity at the pleasure
1133	1133	of the commissioner [governor]. The board annually shall elect a
1134	1134	vice-chairman and secretary. The board shall meet at times and
1135	1135	places determined by the chairman.
1136	1136	SECTION 4.05. Subsection (a), Section 62.0027, Agriculture
1137	1137	Code, is amended to read as follows:
1138	1138	(a) Before a member of the board may assume the member's
1139	1139	duties [and before the member may be confirmed by the senate], the
1140	1140	member must complete at least one course of the training program
1141	1141	established under this section.
1142	1142	SECTION 4.06. Subsections (a) and (f), Section 103.003,
1143	1143	Agriculture Code, are amended to read as follows:
1144	1144	(a) The Produce Recovery Fund Board is composed of five
1145	1145	members appointed by the commissioner [governor with the advice and
1146	1146	consent of the senate]. Two members must be producers, one must be
1147	1147	a license holder licensed under Chapter 101, and two must be members
1148	1148	of the general public.
1149	1149	(f) The commissioner [governor] shall designate a member of
1150	1150	the board as the chairman of the board to serve in that capacity at
1151	1151	the pleasure of the commissioner [governor].
1152	1152	SECTION 4.07. Subsection (a), Section 103.019, Agriculture
1153	1153	Code, is amended to read as follows:
1154	1154	(a) Before a member of the board may assume the member's
1155	1155	duties [and before the member may be confirmed by the senate], the
1156	1156	member must complete at least one course of the training program
1157	1157	established under this section.
1158	1158	SECTION 4.08. Subsection (b), Section 110.002, Alcoholic
1159	1159	Beverage Code, is amended to read as follows:
1160	1160	(b) The commissioner, in consultation with the advisory
1161	1161	committee established under Section 50B.002, Agriculture Code
1162	1162	[110.003], shall adopt rules as necessary to implement the program.
1163	1163	SECTION 4.09. The following statutes are repealed:
1164	1164	(1) Subsection (c), Section 62.0023, Agriculture
1165	1165	Code;
1166	1166	(2) Subsection (b), Section 103.003 and Subsection
1167	1167	(c), Section 103.017, Agriculture Code; and
1168	1168	(3) Section 110.003, Alcoholic Beverage Code.
1169	1169	SECTION 4.10. On the effective date of this Act, the Texas
1170	1170	Wine Marketing Assistance Program advisory committee and the wine
1171	1171	industry development advisory committee are abolished. The
1172	1172	commissioner of agriculture may appoint a person who previously
1173	1173	served on either of those committees to the wine industry
1174	1174	development and marketing advisory committee established under
1175	1175	Section 50B.002, Agriculture Code, as amended by this Act.
1176	1176	SECTION 4.11. (a) As soon as practicable after the
1177	1177	effective date of this Act, the appropriate persons shall appoint
1178	1178	the members of the Texas Bioenergy Policy Council and the Texas
1179	1179	Bioenergy Research Committee established by Sections 50D.011 and
1180	1180	50D.021, Agriculture Code, as added by this Act.
1181	1181	(b) Not later than the 30th day after the date the final
1182	1182	member is appointed to the Texas Bioenergy Policy Council, the
1183	1183	commissioner of agriculture shall call the first meeting of the
1184	1184	policy council.
1185	1185	SECTION 4.12. The changes in law made by this Act by the
1186	1186	amendment of Sections 62.002 and 103.003, Agriculture Code, do not
1187	1187	affect the entitlement of a member serving on the State Seed and
1188	1188	Plant Board or Produce Recovery Fund Board immediately before the
1189	1189	effective date of this Act to continue to serve as a board member
1190	1190	for the remainder of the member's term. The changes in law apply
1191	1191	only to a member appointed on or after the effective date of this
1192	1192	Act.
1193	1193	ARTICLE 5. CERTAIN AGRICULTURAL REGULATORY PROGRAMS
1194	1194	SECTION 5.01. Section 13.251, Agriculture Code, is amended
1195	1195	to read as follows:
1196	1196	Sec. 13.251. DEFINITION. In this subchapter, "public
1197	1197	weigher" means a business certified under this subchapter [person
1198	1198	who is elected or appointed] to issue an official certificate
1199	1199	declaring the accurate weight or measure of a commodity that the
1200	1200	business [person] is requested to weigh.
1201	1201	SECTION 5.02. Section 13.255, Agriculture Code, is amended
1202	1202	to read as follows:
1203	1203	Sec. 13.255. CERTIFICATE. (a) A public weigher[, whether
1204	1204	elected or appointed, or deputy public weigher] may not officially
1205	1205	weigh a commodity unless the weigher has obtained from the
1206	1206	department a certificate of authority.
1207	1207	(b) A [state public weigher must submit a nonrefundable fee,
1208	1208	as provided by department rule, with the application for a
1209	1209	certificate of authority. A county public weigher or a deputy]
1210	1210	public weigher must submit a fee, as provided by department rule,
1211	1211	with the application for a certificate of authority.
1212	1212	SECTION 5.03. Section 13.2555, Agriculture Code, is amended
1213	1213	to read as follows:
1214	1214	Sec. 13.2555. REVOCATION, MODIFICATION, OR SUSPENSION OF
1215	1215	CERTIFICATE. (a) The department shall revoke, modify, or suspend
1216	1216	the certificate of authority of a [an appointed public weigher or a
1217	1217	deputy of an appointed county] public weigher, assess an
1218	1218	administrative penalty, place on probation the public weigher
1219	1219	[person] whose certificate has been suspended, or reprimand a [an
1220	1220	appointed public weigher or a deputy of an appointed county] public
1221	1221	weigher for a violation of this subchapter or a rule adopted by the
1222	1222	department under this subchapter.
1223	1223	(b) If a certificate suspension is probated, the department
1224	1224	may require the public weigher [person] to:
1225	1225	(1) report regularly to the department on matters that
1226	1226	are the basis of the probation;
1227	1227	(2) limit practice to the areas prescribed by the
1228	1228	department; or
1229	1229	(3) continue or renew professional education until the
1230	1230	public weigher [person] attains a degree of skill satisfactory to
1231	1231	the department in those areas that are the basis of the probation.
1232	1232	(c) If the department proposes to revoke, modify, or suspend
1233	1233	a public weigher's [person's] certificate, the public weigher
1234	1234	[person] is entitled to a hearing conducted under Section 12.032.
1235	1235	The decision of the department is appealable in the same manner as
1236	1236	provided for contested cases under Chapter 2001, Government Code.
1237	1237	SECTION 5.04. Section 13.256, Agriculture Code, is amended
1238	1238	to read as follows:
1239	1239	Sec. 13.256. BOND. [(a)] Each [county public weigher,
1240	1240	whether elected or appointed, and each deputy] public weigher shall
1241	1241	execute [for the full term of office] a bond in accordance with
1242	1242	rules adopted [that is in the amount of $2,500, approved] by the
1243	1243	department[, and made payable to the county judge of the county for
1244	1244	which the weigher is elected or appointed]. The bond must be
1245	1245	conditioned on the accurate weight or measure of a commodity being
1246	1246	reflected on the certificate issued by the public weigher [or
1247	1247	deputy], on the protection of a commodity that the public weigher
1248	1248	[or deputy] is requested to weigh or measure, and on compliance with
1249	1249	all laws and rules governing public weighers. [The bond shall be
1250	1250	filed with the county clerk's office in the county for which the
1251	1251	public weigher or deputy is appointed or elected.] The bond is not
1252	1252	void on first recovery. A person injured by the public weigher may
1253	1253	sue on the bond.
1254	1254	[(b) Each state public weigher shall execute a bond similar
1255	1255	to the bond required under Subsection (a) of this section, except
1256	1256	that the bond is for $10,000, made payable to the State of Texas,
1257	1257	and filed with the department.]
1258	1258	SECTION 5.05. Subsection (a), Section 13.257, Agriculture
1259	1259	Code, is amended to read as follows:
1260	1260	(a) On each certificate of weight or measure that a public
1261	1261	weigher [or deputy public weigher] issues, the public weigher [or
1262	1262	deputy public weigher] shall include the:
1263	1263	(1) time and date that the weight or measurement was
1264	1264	taken;
1265	1265	(2) signature and license number of the public weigher
1266	1266	[or deputy public weigher]; and
1267	1267	(3) seal of the department.
1268	1268	SECTION 5.06. Subsection (a), Section 13.259, Agriculture
1269	1269	Code, is amended to read as follows:
1270	1270	(a) A public weigher [or deputy public weigher] who
1271	1271	intentionally or knowingly issues a certificate of weight or
1272	1272	measure giving a false weight or measure for a commodity weighed or
1273	1273	measured commits an offense.
1274	1274	SECTION 5.07. Section 13.261, Agriculture Code, is amended
1275	1275	to read as follows:
1276	1276	Sec. 13.261. [POWER OF DEPARTMENT;] RULES. The department
1277	1277	shall [may] adopt rules governing the bond requirements and
1278	1278	[procedures to be followed in administering the] fees imposed under
1279	1279	this subchapter.
1280	1280	SECTION 5.08. Section 52.038, Agriculture Code, is amended
1281	1281	to read as follows:
1282	1282	Sec. 52.038. EXISTING CORPORATIONS AND ASSOCIATIONS.
1283	1283	[(a)] Any corporation or association organized under prior law
1284	1284	before March 1, 1921, may elect, by a majority vote of its members
1285	1285	or stockholders, to adopt this chapter and become subject to it by:
1286	1286	(1) adopting the restrictions provided by this
1287	1287	chapter; and
1288	1288	(2) executing, in duplicate on forms supplied by the
1289	1289	secretary of state, an instrument, signed and acknowledged by its
1290	1290	directors, stating that the entity, by a majority vote of its
1291	1291	members or stockholders, has decided to accept the benefits of and
1292	1292	be bound by this chapter[; and
1293	1293	[(3) filing articles of incorporation in accordance
1294	1294	with the requirements of Section 52.035 of this code except that the
1295	1295	entity's directors shall sign the articles].
1296	1296	[(b) The filing fee for the articles filed under Subsection
1297	1297	(a) of this section is equal to the filing fee for an amendment to
1298	1298	the articles of incorporation as provided by Section 52.151 of this
1299	1299	code.]
1300	1300	SECTION 5.09. Section 52.151, Agriculture Code, is amended
1301	1301	to read as follows:
1302	1302	Sec. 52.151. TAX EXEMPTIONS [FEES]. [(a) The fee for
1303	1303	filing articles of incorporation under this chapter is $10.
1304	1304	[(b) The fee for filing an amendment to the articles of
1305	1305	incorporation under this chapter is $2.50.
1306	1306	[(c) Each marketing association shall pay to the department
1307	1307	an annual license fee, as provided by department rule.] A marketing
1308	1308	association is exempt from all [other] franchise or license taxes,
1309	1309	except that a marketing association is exempt from the franchise
1310	1310	tax imposed by Chapter 171, Tax Code, only if exempted by that
1311	1311	chapter.
1312	1312	SECTION 5.10. Section 101.003, Agriculture Code, is amended
1313	1313	by amending Subsection (b) and adding Subsection (c) to read as
1314	1314	follows:
1315	1315	(b) This section does not apply to:
1316	1316	(1) a retailer, unless the retailer:
1317	1317	(A) has annual sales of perishable commodities
1318	1318	that comprise 50 percent or more of the retailer's total sales; or
1319	1319	(B) employs a buying agent who buys directly from
1320	1320	a producer;
1321	1321	(2) a producer who handles or deals exclusively in the
1322	1322	producer's own products;
1323	1323	(3) a person shipping less than six standard boxes of
1324	1324	citrus fruit in any one separate shipment; [or]
1325	1325	(4) a person who ships a noncommercial shipment of
1326	1326	perishable commodities; or
1327	1327	(5) a person who purchases perishable commodities and
1328	1328	pays for the perishable commodities in United States currency
1329	1329	before or at the time of delivery or taking possession.
1330	1330	(c) A person who purchases perishable commodities without a
1331	1331	license, as owner, agent, or otherwise, does not violate this
1332	1332	section if the person obtains a license not later than the 30th day
1333	1333	after the date the person first purchases perishable commodities.
1334	1334	SECTION 5.11. Section 101.004, Agriculture Code, is amended
1335	1335	to read as follows:
1336	1336	Sec. 101.004. LICENSE OR REGISTRATION CATEGORIES. [(a)] A
1337	1337	person shall apply for a license if the person:
1338	1338	(1) purchases perishable commodities on credit;
1339	1339	(2) takes possession of perishable commodities for
1340	1340	consignment or handling on behalf of the producer or owner of the
1341	1341	perishable commodities; or
1342	1342	(3) takes possession of perishable commodities for
1343	1343	consignment or handling in a manner or under a contract that does
1344	1344	not require or result in payment to the producer, seller, or
1345	1345	consignor of the full amount of the purchase price in United States
1346	1346	currency at the time of delivery or at the time that the perishable
1347	1347	commodities pass from the producer, seller, or consignor to the
1348	1348	person.
1349	1349	[(b) A person shall register as a cash dealer if the person
1350	1350	purchases perishable commodities and pays for the perishable
1351	1351	commodities in United States currency before or at the time of
1352	1352	delivery or taking possession.]
1353	1353	SECTION 5.12. Subsections (b) and (c), Section 101.007,
1354	1354	Agriculture Code, are amended to read as follows:
1355	1355	(b) If [an applicant for a license indicates on the
1356	1356	application that] a previous license of the applicant has been or is
1357	1357	suspended or has been revoked, the department may not issue or renew
1358	1358	a license to the applicant until the department is furnished with
1359	1359	satisfactory proof that the applicant is, on the date of
1360	1360	application, qualified to receive the license for which the
1361	1361	applicant applied as provided by department rule.
1362	1362	(c) The department may refuse to issue or renew a license
1363	1363	under this section if the department determines that a license
1364	1364	previously issued to the applicant was revoked or suspended or that
1365	1365	the applicant has engaged in conduct for which a license could have
1366	1366	been revoked or suspended. In determining whether to refuse to
1367	1367	issue or renew a license under this section, the department may
1368	1368	consider:
1369	1369	(1) the facts and circumstances pertaining to a prior
1370	1370	suspension or revocation;
1371	1371	(2) the financial condition of the applicant as of the
1372	1372	date of the application;
1373	1373	(3) any judgment by a court of this state that is
1374	1374	outstanding against the applicant and is due and owing to a
1375	1375	licensee, grower, or producer of perishable commodities; and
1376	1376	(4) any certified claim against the applicant by a
1377	1377	licensee, grower, or producer of perishable commodities that is
1378	1378	under consideration by the department.
1379	1379	SECTION 5.13. Section 101.009, Agriculture Code, is amended
1380	1380	to read as follows:
1381	1381	Sec. 101.009. LICENSEE LIST. The department may publish as
1382	1382	often as it considers necessary a list in pamphlet form or on the
1383	1383	department's Internet website of all persons licensed under this
1384	1384	chapter.
1385	1385	SECTION 5.14. Subsections (a) and (b), Section 101.013,
1386	1386	Agriculture Code, are amended to read as follows:
1387	1387	(a) If a licensee or a person required to be licensed causes
1388	1388	a producer, seller, or owner, or an agent of a producer, seller, or
1389	1389	owner, to part with control or possession of all or any part of the
1390	1390	person's perishable commodities and agrees by contract of purchase
1391	1391	to pay the purchase price on demand following delivery, the
1392	1392	licensee or person required to be licensed shall make payment
1393	1393	immediately on demand.
1394	1394	(b) If a person makes demand for the purchase price in
1395	1395	writing, the mailing of a registered letter that makes the demand
1396	1396	and is addressed to the licensee or person required to be licensed
1397	1397	at their [the licensee's] business address is prima facie evidence
1398	1398	that demand was made at the time the letter was mailed.
1399	1399	SECTION 5.15. Section 101.014, Agriculture Code, is amended
1400	1400	to read as follows:
1401	1401	Sec. 101.014. COMMISSION OR SERVICE CHARGE IN CONTRACT. If
1402	1402	a licensee or a person required to be licensed handles perishable
1403	1403	commodities by guaranteeing a producer or owner a minimum price and
1404	1404	handles the perishable commodities on the account of the producer
1405	1405	or owner, the licensee or person required to be licensed shall
1406	1406	include in the contract with the producer or owner the maximum
1407	1407	amount that the licensee or person required to be licensed will
1408	1408	charge for commission, service, or both, in connection with the
1409	1409	perishable commodities handled.
1410	1410	SECTION 5.16. Subsections (a) and (b), Section 101.015,
1411	1411	Agriculture Code, are amended to read as follows:
1412	1412	(a) Except as otherwise provided by this section, a licensee
1413	1413	or a person required to be licensed shall settle with the producer
1414	1414	or seller of perishable commodities on the basis of the grade and
1415	1415	quality that is referred to in the contract under which the licensee
1416	1416	or person required to be licensed obtained possession or control of
1417	1417	the perishable commodities.
1418	1418	(b) If the perishable commodities have been inspected by a
1419	1419	state or federal inspector in this state and found to be of a
1420	1420	different grade or quality than that referred to in the contract,
1421	1421	the licensee or person required to be licensed shall settle with the
1422	1422	producer or seller of the perishable commodities on the basis of the
1423	1423	grade and quality determined by the inspector.
1424	1424	SECTION 5.17. Section 101.0151, Agriculture Code, is
1425	1425	amended to read as follows:
1426	1426	Sec. 101.0151. BUYING OR SELLING BY WEIGHT. A licensee or a
1427	1427	person required to be licensed who buys or sells perishable
1428	1428	commodities by weight shall weigh or have the perishable
1429	1429	commodities weighed on scales that meet state requirements.
1430	1430	SECTION 5.18. Section 101.016, Agriculture Code, is amended
1431	1431	to read as follows:
1432	1432	Sec. 101.016. RECORDS OF PURCHASE. (a) A licensee or a
1433	1433	person required to be licensed or a packer, processor, or
1434	1434	warehouseman may not receive or handle perishable commodities
1435	1435	without requiring the person from whom the perishable commodities
1436	1436	are purchased or received to furnish a statement in writing
1437	1437	showing:
1438	1438	(1) the owner of the perishable commodities;
1439	1439	(2) the grower of the perishable commodities;
1440	1440	(3) the approximate location of the land on which the
1441	1441	perishable commodities were grown;
1442	1442	(4) the date the perishable commodities were gathered;
1443	1443	and
1444	1444	(5) by whose authority the perishable commodities were
1445	1445	gathered.
1446	1446	(b) The licensee or person required to be licensed, packer,
1447	1447	processor, or warehouseman shall keep records of statements
1448	1448	furnished under Subsection (a) in a permanent book or folder for a
1449	1449	minimum of three years from the date of the transaction and shall
1450	1450	make the records available for inspection by any interested party.
1451	1451	(c) The licensee or person required to be licensed, packer,
1452	1452	handler, or warehouseman shall:
1453	1453	(1) prepare a receipt detailing the quantity of
1454	1454	perishable commodities received from the producer or owner at the
1455	1455	time of receipt of the commodities; and
1456	1456	(2) on request, provide the receipt to the producer or
1457	1457	owner.
1458	1458	(d) The department periodically may investigate licensees,
1459	1459	persons required to be licensed, or persons alleged to be selling or
1460	1460	purchasing perishable commodities in violation of this chapter and,
1461	1461	without notice, may require evidence of purchase of any perishable
1462	1462	commodities in a person's possession or past possession.
1463	1463	SECTION 5.19. Section 101.017, Agriculture Code, is amended
1464	1464	to read as follows:
1465	1465	Sec. 101.017. RECORD OF SALE. (a) Except for a retailer, a
1466	1466	licensee or a person required to be licensed shall maintain for each
1467	1467	sale a complete and accurate record showing:
1468	1468	(1) the date of sale of the perishable commodities;
1469	1469	(2) the person to whom the perishable commodities were
1470	1470	sold;
1471	1471	(3) the grade and selling price of the perishable
1472	1472	commodities; and
1473	1473	(4) an itemized statement of expenses of any kind or
1474	1474	character incurred in the sale or handling of the perishable
1475	1475	commodities, including the amount of the commission to the licensee
1476	1476	or person required to be licensed.
1477	1477	(b) On demand of the department or of an owner, seller, or
1478	1478	agent of the owner or seller, the licensee or person required to be
1479	1479	licensed shall furnish the information demanded before the 11th day
1480	1480	following the date of demand.
1481	1481	(c) A licensee or a person required to be licensed shall
1482	1482	maintain the information required to be kept by this section for at
1483	1483	least three years after the date of sale.
1484	1484	SECTION 5.20. Subsection (a), Section 101.020, Agriculture
1485	1485	Code, is amended to read as follows:
1486	1486	(a) A person commits an offense if the person:
1487	1487	(1) acts in violation of Section 101.003 by not
1488	1488	obtaining a license or registration or after receiving notice of
1489	1489	cancellation of a license or registration;
1490	1490	(2) acts or assumes to act as a transporting agent or
1491	1491	buying agent:
1492	1492	(A) without first obtaining an identification
1493	1493	card; or
1494	1494	(B) after receiving notice of cancellation of an
1495	1495	identification card;
1496	1496	(3) as a transporting agent or buying agent, fails and
1497	1497	refuses to turn over to the department an identification card in
1498	1498	accordance with Section 101.010(e);
1499	1499	(4) as a license holder or a person required to be
1500	1500	licensed, fails to furnish information under Section 101.017 before
1501	1501	the 11th day following the date of demand;
1502	1502	(5) as a license holder or a person required to be
1503	1503	licensed, fails to settle with a producer or seller on the grade and
1504	1504	quality of perishable commodities in the manner provided by Section
1505	1505	101.015;
1506	1506	(6) [as a cash dealer, pays for perishable commodities
1507	1507	by a means other than United States currency;
1508	1508	[(7)] as a license holder or a person required to be
1509	1509	licensed, transporting agent, or buying agent, violates a provision
1510	1510	of this chapter;
1511	1511	(7) [(8) acts or assumes to act as a cash dealer
1512	1512	without first registering as a cash dealer;
1513	1513	[(9)] as a license holder or a person required to be
1514	1514	licensed, buys or sells perishable commodities by weight and does
1515	1515	not have the perishable commodities weighed on scales that meet
1516	1516	state requirements;
1517	1517	(8) [(10)] fails to prepare and maintain records
1518	1518	required by Sections 101.016, 101.017, and 101.018; or
1519	1519	(9) [(11)] fails to provide records as required by
1520	1520	Sections 101.016 and 101.018.
1521	1521	SECTION 5.21. Subsection (a), Section 103.002, Agriculture
1522	1522	Code, is amended to read as follows:
1523	1523	(a) The produce recovery fund is a special trust fund with
1524	1524	the comptroller administered by the department, without
1525	1525	appropriation, for the payment of claims against license holders,
1526	1526	[and] retailers, and persons required to be licensed under Chapter
1527	1527	101.
1528	1528	SECTION 5.22. Section 103.005, Agriculture Code, is amended
1529	1529	to read as follows:
1530	1530	Sec. 103.005. INITIATION OF CLAIM. (a) A person who deals
1531	1531	with a license holder or a person required to be licensed under
1532	1532	Chapter 101 in the purchasing, handling, selling, and accounting
1533	1533	for sales of perishable commodities and who is aggrieved by an
1534	1534	action of the license holder or person required to be licensed as a
1535	1535	result of a violation of terms or conditions of a contract made by
1536	1536	the license holder or person required to be licensed for the sale of
1537	1537	Texas-grown produce may initiate a claim against the fund by filing
1538	1538	with the department:
1539	1539	(1) a sworn complaint against the license holder or
1540	1540	person required to be licensed; and
1541	1541	(2) a filing fee, as provided by department rule.
1542	1542	(b) A complaint and the fee under Subsection (a) [of this
1543	1543	section] must be filed on or before the second [first] anniversary
1544	1544	of the date that payment was due [of the violation], or recovery
1545	1545	from the fund is barred.
1546	1546	SECTION 5.23. Section 103.0055, Agriculture Code, is
1547	1547	amended to read as follows:
1548	1548	Sec. 103.0055. BANKRUPTCY OF MERCHANT OR RETAILER. For
1549	1549	purposes of this chapter, the amount due an aggrieved party by a
1550	1550	license holder or a person required to be licensed is not affected
1551	1551	by a final judgment of a bankruptcy court that releases the license
1552	1552	holder or person required to be licensed from the legal duty to
1553	1553	satisfy the claim.
1554	1554	SECTION 5.24. Subsection (a), Section 103.006, Agriculture
1555	1555	Code, is amended to read as follows:
1556	1556	(a) After a claim is initiated, the department shall
1557	1557	investigate the complaint and determine the amount due the
1558	1558	aggrieved party. If the amount determined by the department is
1559	1559	disputed by the license holder, a person required to be licensed, or
1560	1560	the aggrieved party, the board shall conduct a hearing on the claim
1561	1561	and determine the amount due the aggrieved party.
1562	1562	SECTION 5.25. Subsection (a), Section 103.007, Agriculture
1563	1563	Code, is amended to read as follows:
1564	1564	(a) If the amount determined by the department's
1565	1565	investigation to be due the aggrieved party is not disputed by the
1566	1566	license holder, a person required to be licensed, or the aggrieved
1567	1567	party, the department shall pay the claim within the limits
1568	1568	prescribed by this chapter.
1569	1569	SECTION 5.26. Subsections (a), (b), (d), and (f), Section
1570	1570	103.008, Agriculture Code, are amended to read as follows:
1571	1571	(a) In making payments from the fund the department may
1572	1572	[can] pay the aggrieved party the full value of their validated
1573	1573	claim, subject to Subsections (b) and (d) [all of the first $2,000
1574	1574	of any claim and no more than 70 percent of the claim above $2,000].
1575	1575	(b) The total payment of all claims arising from the same
1576	1576	contract with a license holder or a person required to be licensed
1577	1577	may not exceed $50,000 [$35,000].
1578	1578	(d) Payment of a claim filed against a person who is not
1579	1579	licensed in violation of Chapter 101 shall be limited to 80 percent
1580	1580	of the recovery prescribed under this section [The department may
1581	1581	not pay a claim against:
1582	1582	[(1) a person who was not licensed on the date the
1583	1583	contract on which the claim is based was entered into; or
1584	1584	[(2) a cash dealer registered under Chapter 101].
1585	1585	(f) If a license holder or a person required to be licensed
1586	1586	owes money to the produce recovery fund at the time the license
1587	1587	holder or person required to be licensed makes a claim against the
1588	1588	fund, the department shall offset the amount owed to the fund from
1589	1589	the amount dispensed.
1590	1590	SECTION 5.27. Section 103.009, Agriculture Code, is amended
1591	1591	by amending Subsections (a), (c), and (d) and adding Subsection (e)
1592	1592	to read as follows:
1593	1593	(a) If the department pays a claim against a license holder
1594	1594	or a person required to be licensed, the license holder or person
1595	1595	required to be licensed shall:
1596	1596	(1) reimburse the fund immediately or agree in writing
1597	1597	to reimburse the fund on a schedule to be determined by rule of the
1598	1598	department; and
1599	1599	(2) immediately pay the aggrieved party any amount due
1600	1600	that party or agree in writing to pay the aggrieved party on a
1601	1601	schedule to be determined by rule of the department.
1602	1602	(c) If the license holder or person required to be licensed
1603	1603	does not reimburse the fund or pay the aggrieved party, or does not
1604	1604	agree to do so, in accordance with this section, the department
1605	1605	shall issue an order canceling the license and may not issue a new
1606	1606	license to or renew the license of that person for four years from
1607	1607	the date of cancellation. If the license holder or person required
1608	1608	to be licensed is a corporation, an officer or director of the
1609	1609	corporation or a person owning more than 25 percent of the stock in
1610	1610	the corporation may not be licensed under Chapter 101 during the
1611	1611	four-year period in which the corporation is ineligible for
1612	1612	licensing.
1613	1613	(d) Subsections (a) and (b) do [This section does] not apply
1614	1614	to a license holder or a person required to be licensed who is
1615	1615	released by a final judgment of a bankruptcy court from the legal
1616	1616	duty to satisfy the claim paid by the department.
1617	1617	(e) The amount to be reimbursed under this section shall be
1618	1618	one and one-half times the amount of the claim paid if the person
1619	1619	required to reimburse the department was not licensed on the date on
1620	1620	which the transaction forming the base of the claim occurred.
1621	1621	SECTION 5.28. Section 103.010, Agriculture Code, is amended
1622	1622	to read as follows:
1623	1623	Sec. 103.010. SUBROGATION OF RIGHTS. If the department
1624	1624	pays a claim against a license holder or a person required to be
1625	1625	licensed, the department is subrogated to all rights of the
1626	1626	aggrieved party against the license holder or person required to be
1627	1627	licensed to the extent of the amount paid to the aggrieved party.
1628	1628	SECTION 5.29. Subsection (b), Section 103.011, Agriculture
1629	1629	Code, is amended to read as follows:
1630	1630	(b) A person registered as a [cash dealer or a] marketing
1631	1631	association organized under Chapter 52 that handles citrus fruit
1632	1632	only for its members is exempt from payment of the fee under this
1633	1633	section.
1634	1634	SECTION 5.30. Subsections (a) and (b), Section 103.013,
1635	1635	Agriculture Code, are amended to read as follows:
1636	1636	(a) A person commits an offense if the person acts or
1637	1637	assumes to act as a license holder under Chapter 101 without first
1638	1638	paying the annual fee required by Section 103.011 [this chapter].
1639	1639	(b) An offense under this section is a Class B misdemeanor
1640	1640	[punishable by a fine of not more than $500].
1641	1641	SECTION 5.31. Subsection (a), Section 121.005, Agriculture
1642	1642	Code, is amended to read as follows:
1643	1643	(a) Each rose plant or shipment of rose plants shall be
1644	1644	labeled with[:
1645	1645	[(1)] the proper grade[; and
1646	1646	[(2) the number of the certificate of authority of the
1647	1647	person selling or offering for sale the plant or shipment].
1648	1648	SECTION 5.32. Subsection (f), Section 52.092, Election
1649	1649	Code, is amended to read as follows:
1650	1650	(f) Precinct offices shall be listed in the following order:
1651	1651	(1) county commissioner;
1652	1652	(2) justice of the peace;
1653	1653	(3) constable[;
1654	1654	[(4) public weigher].
1655	1655	SECTION 5.33. Subsection (a), Section 172.024, Election
1656	1656	Code, is amended to read as follows:
1657	1657	(a) The filing fee for a candidate for nomination in the
1658	1658	general primary election is as follows:
1659	1659	(1) United States senator $5,000
1660	1660	(2) office elected statewide, except United States
1661	1661	senator 3,750
1662	1662	(3) United States representative 3,125
1663	1663	(4) state senator 1,250
1664	1664	(5) state representative 750
1665	1665	(6) member, State Board of Education 300
1666	1666	(7) chief justice or justice, court of appeals, other
1667	1667	than a justice specified by Subdivision (8) 1,875
1668	1668	(8) chief justice or justice of a court of appeals that
1669	1669	serves a court of appeals district in which a county with a
1670	1670	population of more than 750,000 is wholly or partly
1671	1671	situated 2,500
1672	1672	(9) district judge or judge specified by Section
1673	1673	52.092(d) for which this schedule does not otherwise prescribe a
1674	1674	fee 1,500
1675	1675	(10) district or criminal district judge of a court in
1676	1676	a judicial district wholly contained in a county with a population
1677	1677	of more than 850,000 2,500
1678	1678	(11) judge, statutory county court, other than a judge
1679	1679	specified by Subdivision (12) 1,500
1680	1680	(12) judge of a statutory county court in a county with
1681	1681	a population of more than 850,000 2,500
1682	1682	(13) district attorney, criminal district attorney,
1683	1683	or county attorney performing the duties of a district
1684	1684	attorney 1,250
1685	1685	(14) county commissioner, district clerk, county
1686	1686	clerk, sheriff, county tax assessor-collector, county treasurer,
1687	1687	or judge, constitutional county court:
1688	1688	(A) county with a population of 200,000
1689	1689	or more 1,250
1690	1690	(B) county with a population of under
1691	1691	200,000 750
1692	1692	(15) justice of the peace or constable:
1693	1693	(A) county with a population of 200,000
1694	1694	or more 1,000
1695	1695	(B) county with a population of under
1696	1696	200,000 375
1697	1697	(16) county surveyor or[,] inspector of hides and
1698	1698	animals[, or public weigher] 75
1699	1699	(17) office of the county government for which this
1700	1700	schedule does not otherwise prescribe a fee 750
1701	1701	SECTION 5.34. Subsection (b), Section 62.160, Labor Code,
1702	1702	is amended to read as follows:
1703	1703	(b) Sections 62.051-62.054 [and Subchapter C] do not apply
1704	1704	to an agricultural employer with respect to an employee engaged in
1705	1705	the production of livestock.
1706	1706	SECTION 5.35. The following statutes are repealed:
1707	1707	(1) Section 13.252, Agriculture Code;
1708	1708	(2) Section 13.253, Agriculture Code;
1709	1709	(3) Section 13.2535, Agriculture Code;
1710	1710	(4) Section 13.254, Agriculture Code;
1711	1711	(5) Subsection (b), Section 52.035, Agriculture Code;
1712	1712	(6) Section 52.152, Agriculture Code;
1713	1713	(7) Subsection (b), Section 101.006, Agriculture
1714	1714	Code;
1715	1715	(8) Subsection (c), Section 103.008, Agriculture
1716	1716	Code;
1717	1717	(9) Section 121.004, Agriculture Code;
1718	1718	(10) Subdivision (1), Section 62.002, Labor Code; and
1719	1719	(11) Subchapter C, Chapter 62, Labor Code.
1720	1720	SECTION 5.36. (a) The changes in law made by this Act to
1721	1721	Subchapter E, Chapter 13, Agriculture Code, do not affect the
1722	1722	entitlement of a public weigher or deputy public weigher elected or
1723	1723	appointed before the effective date of this Act to serve as a public
1724	1724	weigher or deputy public weigher for the remainder of the public
1725	1725	weigher's or deputy public weigher's term. A public weigher or
1726	1726	deputy public weigher elected or appointed before the effective
1727	1727	date of this Act is governed by the law in effect immediately before
1728	1728	the effective date of this Act, and the former law is continued in
1729	1729	effect for that purpose.
1730	1730	(b) The changes in law made by this Act to Section 103.008,
1731	1731	Agriculture Code, apply only to a claim for payment filed on or
1732	1732	after the effective date of this Act. A claim filed before that
1733	1733	date is governed by the law in effect on the date the claim was
1734	1734	filed, and the former law is continued in effect for that purpose.
1735	1735	ARTICLE 6. GENERAL LICENSING PROVISIONS
1736	1736	SECTION 6.01. Subsections (a) and (c), Section 12.020,
1737	1737	Agriculture Code, are amended to read as follows:
1738	1738	(a) If a person violates a provision of law [this code]
1739	1739	described by Subsection (c) [of this section] or a rule or order
1740	1740	adopted by the department under a provision of law [this code]
1741	1741	described by Subsection (c) [of this section], the department may
1742	1742	assess an administrative penalty against the person as provided by
1743	1743	this section.
1744	1744	(c) The provisions of law [this code] subject to this
1745	1745	section and the applicable penalty amounts are as follows:
1746	1746	Provision Amount of Penalty Provision Amount of Penalty
1747	1747	Provision Amount of Penalty
1748	1748	Chapter 41 not more than $5,000 [$1,000] Chapter 41 not more than $5,000 [$1,000]
1749	1749	Chapter 41 not more than $5,000 [$1,000]
1750	1750	Chapters 13, 14A, 18, 46, 61, 94, Chapters 13, 14A, 18, 46, 61, 94,
1751	1751	Chapters 13, 14A, 18, 46, 61, 94,
1752	1752	95, 101, 102, 103, 121, 125, 132, 95, 101, 102, 103, 121, 125, 132,
1753	1753	95, 101, 102, 103, 121, 125, 132,
1754	1754	and 134 not more than $5,000 [$500] and 134 not more than $5,000 [$500]
1755	1755	and 134 not more than $5,000 [$500]
1756	1756	Subchapter B, Chapter 71 Subchapter B, Chapter 71
1757	1757	Subchapter B, Chapter 71
1758	1758	Chapter 19 Chapter 19
1759	1759	Chapter 19
1760	1760	Chapter 76 not more than $5,000 [$2,000] Chapter 76 not more than $5,000 [$2,000]
1761	1761	Chapter 76 not more than $5,000 [$2,000]
1762	1762	Subchapters A and C, Chapter 71 Subchapters A and C, Chapter 71
1763	1763	Subchapters A and C, Chapter 71
1764	1764	Chapters 72, 73, and 74 not more than $5,000 Chapters 72, 73, and 74 not more than $5,000
1765	1765	Chapters 72, 73, and 74 not more than $5,000
1766	1766	Chapter 14 not more than $10,000 Chapter 14 not more than $10,000
1767	1767	Chapter 14 not more than $10,000
1768	1768	Chapter 1951, Occupations Code not more than $5,000 Chapter 1951, Occupations Code not more than $5,000
1769	1769	Chapter 1951, Occupations Code not more than $5,000
1770	1770	Chapter 153, Natural Resources Chapter 153, Natural Resources
1771	1771	Chapter 153, Natural Resources
1772	1772	Code not more than $5,000. Code not more than $5,000.
1773	1773	Code not more than $5,000.
1774	1774	SECTION 6.02. Section 12.023, Agriculture Code, is amended
1775	1775	to read as follows:
1776	1776	Sec. 12.023. EXPIRATION OF REGISTRATION OR LICENSES. The
1777	1777	department by rule shall [may] adopt a system under which
1778	1778	registrations or licenses required by the department, including
1779	1779	licenses issued under Chapter 1951, Occupations Code, expire on
1780	1780	various dates during the year. The department may increase or
1781	1781	decrease the term of an initial or renewal license or registration
1782	1782	so that all licenses held by a person or a group of license holders
1783	1783	expire on the same date. For the period [year] in which the
1784	1784	registration or license expiration date is changed, registration or
1785	1785	license fees shall be prorated on a monthly basis so that each
1786	1786	registrant or licensee pays only that portion of the fee that is
1787	1787	allocable to the number of months during which the registration or
1788	1788	license is valid. On the next renewal of the registration or
1789	1789	license [on the new expiration date], the total renewal fee is
1790	1790	payable.
1791	1791	SECTION 6.03. Title 2, Agriculture Code, is amended by
1792	1792	adding Chapter 12A to read as follows:
1793	1793	CHAPTER 12A. GENERAL LICENSING PROVISIONS
1794	1794	SUBCHAPTER A. POWERS AND DUTIES OF DEPARTMENT RELATED TO LICENSING
1795	1795	Sec. 12A.001. APPLICABILITY OF PROVISIONS. The general
1796	1796	licensing, regulatory, and enforcement provisions of Chapter 12 and
1797	1797	this chapter apply to licensing and regulatory programs
1798	1798	administered by the department under any law.
1799	1799	Sec. 12A.002. CEASE AND DESIST ORDER. (a) If it appears to
1800	1800	the commissioner that a person who is not licensed by the department
1801	1801	is violating a statute or rule that requires the person to hold a
1802	1802	license issued by the department or a statute or rule relating to an
1803	1803	activity regulated by the department, the commissioner after notice
1804	1804	and opportunity for a hearing may issue a cease and desist order
1805	1805	prohibiting the person from engaging in the activity.
1806	1806	(b) A violation of an order under this section constitutes
1807	1807	grounds for imposing an administrative penalty.
1808	1808	Sec. 12A.003. RISK-BASED INSPECTIONS. For each person
1809	1809	licensed or regulated by the department that the department may
1810	1810	inspect:
1811	1811	(1) the department may conduct additional inspections
1812	1812	based on a schedule of risk-based inspections using the following
1813	1813	criteria:
1814	1814	(A) the type and nature of the person;
1815	1815	(B) whether there has been a prior violation by
1816	1816	the person;
1817	1817	(C) the inspection history of the person;
1818	1818	(D) any history of complaints involving the
1819	1819	person; and
1820	1820	(E) any other risk-based factor identified by the
1821	1821	department; and
1822	1822	(2) the department may waive any inspection
1823	1823	requirement under law if an emergency arises or to accommodate
1824	1824	complaint investigation or risk-based inspection schedules.
1825	1825	[Sections 12A.004-12A.050 reserved for expansion]
1826	1826	SUBCHAPTER B. PUBLIC INTEREST INFORMATION AND COMPLAINT PROCEDURES
1827	1827	Sec. 12A.051. INFORMATION REGARDING COMPLAINTS AND
1828	1828	ENFORCEMENT PROCESS. (a) The department shall:
1829	1829	(1) inform applicants, license holders, and the public
1830	1830	on the department's Internet website, in department brochures, and
1831	1831	on any other available information resource about the department's
1832	1832	enforcement process, including each step in the complaint
1833	1833	investigation and resolution process, from initial filing through
1834	1834	final appeal, and the opportunity to request an informal settlement
1835	1835	conference; and
1836	1836	(2) inform license holders that a license holder may
1837	1837	obtain information about a complaint made against the license
1838	1838	holder and may obtain on request a copy of the complaint file.
1839	1839	(b) Except as provided by Subsection (d), the department
1840	1840	shall provide to a license holder against whom a complaint has been
1841	1841	filed:
1842	1842	(1) the allegations made against the license holder in
1843	1843	the complaint; and
1844	1844	(2) on the license holder's request, any information
1845	1845	obtained by the department in its investigation of the complaint.
1846	1846	(c) The department shall provide the information required
1847	1847	under Subsection (b) in a timely manner to allow the license holder
1848	1848	time to respond to the complaint.
1849	1849	(d) The department is not required to provide the following
1850	1850	information to a license holder:
1851	1851	(1) the name of a confidential informant whose
1852	1852	testimony will not be used in any hearing as evidence against the
1853	1853	license holder;
1854	1854	(2) attorney-client communications;
1855	1855	(3) attorney work product; or
1856	1856	(4) any other information that is confidential or not
1857	1857	subject to disclosure under law, rule of evidence, or rule of civil
1858	1858	procedure.
1859	1859	Sec. 12A.052. COMPLAINT AND VIOLATION ANALYSIS. The
1860	1860	department shall analyze complaints filed with and violations
1861	1861	discovered by the department to identify any trends or issues
1862	1862	related to certain violations, including:
1863	1863	(1) the reason for each complaint or violation;
1864	1864	(2) how each complaint or violation was resolved; and
1865	1865	(3) the subject matter of each complaint or violation
1866	1866	that was not within the jurisdiction of the department and how the
1867	1867	department responded to the complaint or violation.
1868	1868	[Sections 12A.053-12A.100 reserved for expansion]
1869	1869	SUBCHAPTER C. ISSUANCE AND RENEWAL OF LICENSES
1870	1870	Sec. 12A.101. REPLACEMENT LICENSE; FEE. The department
1871	1871	shall issue to a license holder whose license has been lost or
1872	1872	destroyed or whose name has been changed a replacement license if
1873	1873	the license holder submits to the department:
1874	1874	(1) an appropriate application; and
1875	1875	(2) a fee in an amount established by department rule.
1876	1876	[Sections 12A.102-12A.150 reserved for expansion]
1877	1877	SUBCHAPTER D. EXAMINATIONS
1878	1878	Sec. 12A.151. EXAMINATION PROCEDURES. For each licensing
1879	1879	examination administered by the department, the department shall:
1880	1880	(1) adopt policies and guidelines detailing the
1881	1881	procedures for the testing process, including test admission and
1882	1882	internal test administration procedures; and
1883	1883	(2) post on the department's Internet website the
1884	1884	policies that reference the testing procedures.
1885	1885	Sec. 12A.152. EVALUATION OF EXAMINATION QUESTIONS. For
1886	1886	each licensing examination administered by the department, the
1887	1887	department shall periodically evaluate the effectiveness of
1888	1888	examination questions in objectively assessing an applicant's
1889	1889	knowledge.
1890	1890	[Sections 12A.153-12A.200 reserved for expansion]
1891	1891	SUBCHAPTER E. PENALTIES AND ENFORCEMENT PROCEDURES
1892	1892	Sec. 12A.201. INFORMAL PROCEEDINGS. (a) The department by
1893	1893	rule shall adopt procedures governing:
1894	1894	(1) informal disposition of a contested case under
1895	1895	Section 2001.056, Government Code; and
1896	1896	(2) an informal proceeding held in compliance with
1897	1897	Section 2001.054, Government Code.
1898	1898	(b) The department shall offer the opportunity to conduct an
1899	1899	informal settlement conference by telephone.
1900	1900	(c) The department shall:
1901	1901	(1) provide a license holder sufficient opportunity to
1902	1902	indicate whether the terms of a proposed order are acceptable to the
1903	1903	license holder;
1904	1904	(2) indicate in the notice of violation that the
1905	1905	license holder has the opportunity described by Subdivision (1);
1906	1906	and
1907	1907	(3) allow a license holder who does not agree with a
1908	1908	proposed order to request an informal settlement conference.
1909	1909	SECTION 6.04. The heading to Section 76.113, Agriculture
1910	1910	Code, is amended to read as follows:
1911	1911	Sec. 76.113. TERM [EXPIRATION] AND RENEWAL OF LICENSES.
1912	1912	SECTION 6.05. Subsections (a) and (b), Section 76.113,
1913	1913	Agriculture Code, are amended to read as follows:
1914	1914	(a) Each pesticide [commercial applicator or noncommercial]
1915	1915	applicator license issued under this chapter, other than a private
1916	1916	applicator license, expires at the end of the license period
1917	1917	established by department rule [on the first anniversary of the
1918	1918	date on which it was issued or renewed].
1919	1919	(b) Each private applicator license is valid for five years
1920	1920	[expires on the fifth anniversary of the date on which it was issued
1921	1921	or renewed].
1922	1922	SECTION 6.06. Section 76.151, Agriculture Code, is amended
1923	1923	by amending Subsection (a) and adding Subsection (a-1) to read as
1924	1924	follows:
1925	1925	(a) The [For the purpose of inspection, examination, or
1926	1926	sampling, the] department, at any time and without notice during
1927	1927	regular business hours, may:
1928	1928	(1) [is entitled to] enter and inspect a [at
1929	1929	reasonable hours any] building or place owned, controlled, or
1930	1930	operated by a person engaged in any activity regulated under this
1931	1931	chapter or Chapter 1951, Occupations Code; and
1932	1932	(2) inspect and review any record maintained by a
1933	1933	person engaged in any activity regulated under this chapter or
1934	1934	Chapter 1951, Occupations Code [registrant or dealer if from
1935	1935	probable cause it appears that the building or place contains a
1936	1936	pesticide].
1937	1937	(a-1) The department may enter and inspect a building or
1938	1938	place or inspect and review any record under Subsection (a) as
1939	1939	necessary to:
1940	1940	(1) ensure compliance with this chapter or Chapter
1941	1941	1951, Occupations Code; or
1942	1942	(2) investigate a complaint made to the department.
1943	1943	SECTION 6.07. Subsection (a), Section 76.1555, Agriculture
1944	1944	Code, is amended to read as follows:
1945	1945	(a) If a person violates a provision of this chapter or
1946	1946	Chapter 1951, Occupations Code, or a rule or order adopted by the
1947	1947	department under this chapter or Chapter 1951, Occupations Code,
1948	1948	the department may assess an administrative penalty against the
1949	1949	person as provided by Section 12.020, except that the penalty for
1950	1950	each violation may [shall] not exceed $5,000 [$4,000 for all
1951	1951	violations related to a single incident]. Each day a violation
1952	1952	continues or occurs may be considered a separate violation for
1953	1953	purposes of penalty assessment.
1954	1954	SECTION 6.08. Section 132.024, Agriculture Code, is amended
1955	1955	to read as follows:
1956	1956	Sec. 132.024. LICENSE TERM [EXPIRATION]. A license issued
1957	1957	or renewed under this chapter is valid for one year [expires on the
1958	1958	first anniversary of the date of issuance or renewal].
1959	1959	SECTION 6.09. The changes in law made by this article to
1960	1960	Subsection (c), Section 12.020 and Subsection (a), Section 76.1555,
1961	1961	Agriculture Code, apply only to a violation committed on or after
1962	1962	the effective date of this Act. A violation committed before the
1963	1963	effective date of this Act is governed by the law in effect on the
1964	1964	date the violation occurred, and the former law is continued in
1965	1965	effect for that purpose.
1966	1966	ARTICLE 7. STRUCTURAL PEST CONTROL
1967	1967	SECTION 7.01. Section 12.0201, Agriculture Code, is amended
1968	1968	to read as follows:
1969	1969	Sec. 12.0201. LICENSE SANCTIONS. (a) In addition to other
1970	1970	sanctions provided by law, the department may revoke, modify,
1971	1971	suspend, or refuse to issue or renew a license, assess an
1972	1972	administrative penalty, place on probation a person whose license
1973	1973	has been suspended, or reprimand a license holder if the department
1974	1974	finds that the practitioner:
1975	1975	(1) violated a provision of this code or Chapter 1951,
1976	1976	Occupations Code;
1977	1977	(2) violated a rule adopted by the department under
1978	1978	this code or Chapter 1951, Occupations Code; or
1979	1979	(3) after appropriate notice, failed to comply with an
1980	1980	order of the department.
1981	1981	(b) In addition to any other actions permitted under this
1982	1982	code or Chapter 1951, Occupations Code, if a license suspension is
1983	1983	probated, the department may require the practitioner:
1984	1984	(1) to maintain additional information in the
1985	1985	practitioner's records;
1986	1986	(2) to report regularly to the department on matters
1987	1987	that are the basis of the probation;
1988	1988	(3) to limit practice to the areas prescribed by the
1989	1989	department; or
1990	1990	(4) to continue or review professional education until
1991	1991	the practitioner attains a degree of skill satisfactory to the
1992	1992	department in those areas that are the basis of the probation.
1993	1993	SECTION 7.02. Subdivision (16), Section 1951.002,
1994	1994	Occupations Code, is amended to read as follows:
1995	1995	(16) "Technician" means a person who holds a license
1996	1996	under this chapter and who, under [the] direct supervision of a
1997	1997	certified noncommercial applicator or, as an employee of a holder
1998	1998	of a structural pest control business license, performs supervised
1999	1999	pesticide applications, maintains or uses structural pest control
2000	2000	devices, makes sales presentations, or identifies pest infestation
2001	2001	or damage. The term does not include a person whose duties are
2002	2002	solely clerical or are otherwise completely disassociated with pest
2003	2003	control.
2004	2004	SECTION 7.03. Section 1951.003, Occupations Code, is
2005	2005	amended to read as follows:
2006	2006	Sec. 1951.003. BUSINESS OF STRUCTURAL PEST CONTROL.
2007	2007	(a) In this chapter, a person is engaged in the "business of
2008	2008	structural pest control" if the person performs[, offers to
2009	2009	perform, or advertises for or solicits the person's performance of]
2010	2010	any of the following services for compensation, including services
2011	2011	performed as a part of the person's employment:
2012	2012	(1) identifying infestations or making inspections
2013	2013	for the purpose of identifying or attempting to identify
2014	2014	infestations of:
2015	2015	(A) arthropods, including insects, spiders,
2016	2016	mites, ticks, and related pests, wood-infesting organisms,
2017	2017	rodents, weeds, nuisance birds, and any other obnoxious or
2018	2018	undesirable animals that may infest households, railroad cars,
2019	2019	ships, docks, trucks, airplanes, or other structures or their
2020	2020	contents; or
2021	2021	(B) pests or diseases of trees, shrubs, or other
2022	2022	plantings in a park or adjacent to a residence, business
2023	2023	establishment, industrial plant, institutional building, or
2024	2024	street;
2025	2025	(2) making oral or written inspection reports,
2026	2026	recommendations, estimates, or bids with respect to an infestation
2027	2027	described by Subdivision (1); or
2028	2028	(3) making contracts, or submitting bids based on an
2029	2029	inspection for services or performing services designed to prevent,
2030	2030	control, or eliminate an infestation described by Subdivision (1)
2031	2031	by the use of insecticides, pesticides, rodenticides, fumigants,
2032	2032	allied chemicals or substances, or mechanical devices.
2033	2033	(b) A person is not engaged in the business of structural
2034	2034	pest control if the person is a clerical employee or a manual
2035	2035	laborer and the person does not:
2036	2036	(1) identify pests;
2037	2037	(2) make inspections, recommendations, estimates,
2038	2038	bids, or contracts;
2039	2039	(3) provide estimates, bids, or contracts based on an
2040	2040	inspection; or
2041	2041	(4) apply insecticides, pesticides, rodenticides,
2042	2042	fumigants, allied chemicals, or other related substances regulated
2043	2043	by the department.
2044	2044	SECTION 7.04. Subchapter A, Chapter 1951, Occupations Code,
2045	2045	is amended by adding Section 1951.007 to read as follows:
2046	2046	Sec. 1951.007. APPLICABILITY OF AGRICULTURE CODE LICENSING
2047	2047	PROVISIONS. A provision of the Agriculture Code that applies
2048	2048	generally to licensing or regulatory programs administered by the
2049	2049	department, including a provision that refers generally to
2050	2050	licensing or regulatory programs under the Agriculture Code,
2051	2051	applies to this chapter.
2052	2052	SECTION 7.05. Subsection (a), Section 1951.053,
2053	2053	Occupations Code, is amended to read as follows:
2054	2054	(a) Except as provided by Sections 1951.212 and
2055	2055	1951.457(c), this chapter does not apply to:
2056	2056	(1) a person who performs pest control work on growing
2057	2057	plants, trees, shrubs, grass, or other horticultural plants if the
2058	2058	person[:
2059	2059	[(A) holds a florist or nursery registration
2060	2060	certificate from the department under Section 71.043, Agriculture
2061	2061	Code, other than a registration certificate that permits the sale,
2062	2062	lease, or distribution of nursery products or floral items only at a
2063	2063	temporary market; and
2064	2064	[(B)] holds a commercial or noncommercial
2065	2065	applicator license from the department and issued under Chapter 76,
2066	2066	Agriculture Code, that covers the pest control work; or
2067	2067	(2) a person who performs pest control work on growing
2068	2068	plants, trees, shrubs, grass, or other horticultural plants or
2069	2069	rights-of-way if the person:
2070	2070	(A) is employed by a political subdivision or a
2071	2071	cemetery;
2072	2072	(B) is engaged in pest control work or vegetation
2073	2073	management for the political subdivision or cemetery;
2074	2074	(C) holds a commercial or noncommercial
2075	2075	applicator license from the department and issued under Chapter 76,
2076	2076	Agriculture Code, that covers pest control work or is under the
2077	2077	direct supervision of a person who holds a commercial or
2078	2078	noncommercial applicator license from the department and issued
2079	2079	under Chapter 76, Agriculture Code, that covers pest control work;
2080	2080	and
2081	2081	(D) complies with annual continuing education
2082	2082	required by the department.
2083	2083	SECTION 7.06. Subsection (a), Section 1951.101,
2084	2084	Occupations Code, is amended to read as follows:
2085	2085	(a) The committee consists of nine members appointed by the
2086	2086	commissioner as follows:
2087	2087	(1) two members who are experts in structural pest
2088	2088	control application;
2089	2089	(2) three members who represent the public;
2090	2090	(3) one member from an institution of higher education
2091	2091	who is knowledgeable in the science of pests and pest control;
2092	2092	(4) one member who represents the interests of
2093	2093	structural pest control operators and who is appointed based on
2094	2094	recommendations provided by a trade association of operators;
2095	2095	(5) one member who represents the interests of
2096	2096	consumers [and who is appointed based on recommendations provided
2097	2097	by consumer advocacy groups or associations]; and
2098	2098	(6) the commissioner of state health services or the
2099	2099	commissioner's designee.
2100	2100	SECTION 7.07. Section 1951.105, Occupations Code, is
2101	2101	amended to read as follows:
2102	2102	Sec. 1951.105. RULES GOVERNING COMMITTEE; COMMITTEE
2103	2103	MEETINGS. (a) The department shall adopt rules for the operation
2104	2104	of the committee, including rules governing:
2105	2105	(1) the purpose, role, responsibility, and goals of
2106	2106	the committee;
2107	2107	(2) the quorum requirements for the committee;
2108	2108	(3) the qualifications required for members of the
2109	2109	committee, which may include experience and geographic
2110	2110	representation requirements;
2111	2111	(4) the appointment process for the committee;
2112	2112	(5) the members' terms;
2113	2113	(6) the training requirements;
2114	2114	(7) a process to regularly evaluate the effectiveness
2115	2115	of the committee; and
2116	2116	(8) a requirement that the committee comply with
2117	2117	Chapter 551, Government Code.
2118	2118	(b) The committee shall:
2119	2119	(1) meet quarterly;
2120	2120	(2) operate under Robert's Rules of Order; and
2121	2121	(3) record the minutes of each meeting.
2122	2122	SECTION 7.08. Subsection (a), Section 1951.205,
2123	2123	Occupations Code, is amended to read as follows:
2124	2124	(a) The department, with the advice of the committee, shall
2125	2125	adopt rules as authorized under this chapter governing the methods
2126	2126	and practices of structural pest control that the department
2127	2127	determines are necessary to protect the public's health and welfare
2128	2128	and prevent adverse effects on human life and the environment. Each
2129	2129	rule adopted must cite the section of this chapter that authorizes
2130	2130	the rule.
2131	2131	SECTION 7.09. Subsection (a), Section 1951.207,
2132	2132	Occupations Code, is amended to read as follows:
2133	2133	(a) The department by rule shall adopt a policy that[:
2134	2134	[(1)] requires a business holding a structural pest
2135	2135	control business license to be inspected by a field inspector at
2136	2136	least once:
2137	2137	(1) [(A)] in the business's first year of operation;
2138	2138	and
2139	2139	(2) [(B)] every four years after the first year of
2140	2140	operation[;
2141	2141	[(2) provides for additional inspections based on a
2142	2142	schedule of risk-based inspections using the following criteria:
2143	2143	[(A) the type and nature of the business;
2144	2144	[(B) whether there has been a prior violation by
2145	2145	the business;
2146	2146	[(C) the inspection history of the business;
2147	2147	[(D) any history of complaints involving the
2148	2148	business; and
2149	2149	[(E) any other factor determined by the
2150	2150	department by rule; and
2151	2151	[(3) provides that the department may waive the
2152	2152	inspection requirement on a case-by-case basis if an emergency
2153	2153	arises or to accommodate complaint investigation schedules].
2154	2154	SECTION 7.10. Subsection (b), Section 1951.212,
2155	2155	Occupations Code, is amended to read as follows:
2156	2156	(b) The department shall use the structural pest control [an
2157	2157	existing] advisory committee [or create a new advisory committee]
2158	2158	to assist the department in developing the standards for the
2159	2159	integrated pest management program. In developing the standards,
2160	2160	the advisory committee shall consult with a person knowledgeable in
2161	2161	the area of integrated pest management in schools.
2162	2162	SECTION 7.11. Subsection (f), Section 1951.254,
2163	2163	Occupations Code, as amended by Chapters 885 (H.B. 2278) and 890
2164	2164	(H.B. 2458), Acts of the 80th Legislature, Regular Session, 2007,
2165	2165	is reenacted to read as follows:
2166	2166	(f) The information sheet must include:
2167	2167	(1) the names and telephone numbers of the department
2168	2168	and the Department of State Health Services;
2169	2169	(2) the telephone number of any pesticide hotline
2170	2170	established by a state or federal agency or by a state university;
2171	2171	(3) a statement of a consumer's rights under Chapter
2172	2172	601, Business & Commerce Code, to cancel a home solicitation
2173	2173	transaction; and
2174	2174	(4) information concerning the availability of any
2175	2175	pretreatment inspection service that may be provided by the
2176	2176	department under Section 1951.210.
2177	2177	SECTION 7.12. Section 1951.301, Occupations Code, is
2178	2178	amended by amending Subsection (d) and adding Subsection (f) to
2179	2179	read as follows:
2180	2180	(d) A person engaged in the business of structural pest
2181	2181	control must hold a structural pest control business license for
2182	2182	each place of business, including each branch office. A certified
2183	2183	commercial applicator, certified noncommercial applicator, or
2184	2184	licensed technician is not required to obtain a separate license
2185	2185	for each branch office of an employer.
2186	2186	(f) A certified commercial applicator or technician license
2187	2187	must be associated with a business license holder. The name of the
2188	2188	employer of a licensed commercial applicator or technician must be
2189	2189	printed on the face of the license issued to a commercial applicator
2190	2190	or technician.
2191	2191	SECTION 7.13. Subsection (a), Section 1951.306,
2192	2192	Occupations Code, is amended to read as follows:
2193	2193	(a) The department may waive any license requirement under
2194	2194	this chapter for an applicant who holds a license issued by another
2195	2195	state that has license requirements substantially equivalent to
2196	2196	those of this state. The department may enter into reciprocal
2197	2197	licensing agreements with other states that have license
2198	2198	requirements substantially equivalent to those of this state.
2199	2199	SECTION 7.14. Section 1951.308, Occupations Code, is
2200	2200	amended to read as follows:
2201	2201	Sec. 1951.308. LICENSE EXPIRATION. A license issued under
2202	2202	this chapter expires at the end of the license period as determined
2203	2203	by department rule [(a) The department by rule may adopt a system
2204	2204	under which licenses expire on various dates during the year.
2205	2205	[(b) For the year in which the license expiration date is
2206	2206	changed, license fees payable on December 31 shall be prorated on a
2207	2207	monthly basis so that each license holder pays only that portion of
2208	2208	the license fee that is allocable to the number of months during
2209	2209	which the license is valid. On renewal of the license on the new
2210	2210	expiration date, the total license renewal fee is payable].
2211	2211	SECTION 7.15. Section 1951.453, Occupations Code, is
2212	2212	amended to read as follows:
2213	2213	Sec. 1951.453. PEST CONTROL INFORMATION FOR INDOOR
2214	2214	TREATMENTS: RESIDENTIAL PROPERTY. (a) For an indoor treatment at
2215	2215	a private residence that is not rental property, a certified
2216	2216	applicator or technician shall make available[:
2217	2217	[(1) give] a pest control information sheet developed
2218	2218	under Section 1951.254 to the owner of the residence before each
2219	2219	treatment begins[; or
2220	2220	[(2) if the owner is not available at the time
2221	2221	treatment begins, leave the information sheet in a conspicuous
2222	2222	place in the residence].
2223	2223	(b) For an indoor treatment at a residential rental property
2224	2224	with fewer than five rental units, a certified applicator or
2225	2225	technician shall make available [leave] a pest control information
2226	2226	sheet developed under Section 1951.254 to the tenant of [in] each
2227	2227	unit [at the time of each treatment].
2228	2228	(c) For an indoor treatment at a residential rental property
2229	2229	with five or more rental units, a certified applicator or
2230	2230	technician shall make available [provide] a pest control
2231	2231	information sheet developed under Section 1951.254 and a pest
2232	2232	control sign developed under that section to the owner or manager of
2233	2233	the property. The owner or manager or an employee or agent of the
2234	2234	owner or manager, other than the certified applicator or
2235	2235	technician, shall notify residents who live in the direct area of
2236	2236	the treatment or in an adjacent area by:
2237	2237	(1) posting the sign in an area of common access at
2238	2238	least 48 hours before each planned treatment; or
2239	2239	(2) leaving the information sheet on the front door of
2240	2240	each unit or in a conspicuous place inside each unit at least 48
2241	2241	hours before each planned treatment.
2242	2242	SECTION 7.16. Section 1951.454, Occupations Code, is
2243	2243	amended to read as follows:
2244	2244	Sec. 1951.454. PEST CONTROL INFORMATION FOR INDOOR
2245	2245	TREATMENTS: WORKPLACE. For an indoor treatment at a workplace, a
2246	2246	certified applicator or technician shall make available [provide] a
2247	2247	pest control information sheet developed under Section 1951.254 and
2248	2248	a pest control sign developed under that section to the employer or
2249	2249	the building manager. The employer or building manager or an
2250	2250	employee or agent of the owner or manager, other than the certified
2251	2251	applicator or technician, shall notify the persons who work at the
2252	2252	workplace of the date of the planned treatment by:
2253	2253	(1) posting the sign in an area of common access that
2254	2254	the persons are likely to check on a regular basis at least 48 hours
2255	2255	before each planned treatment; and
2256	2256	(2) providing the information sheet to any person
2257	2257	working in the building on a request made by the person during
2258	2258	normal business hours.
2259	2259	SECTION 7.17. Subsection (a), Section 1951.455,
2260	2260	Occupations Code, is amended to read as follows:
2261	2261	(a) For an indoor treatment at a building that is a
2262	2262	hospital, nursing home, hotel, motel, lodge, warehouse,
2263	2263	food-processing establishment, school, or day-care center, a
2264	2264	certified applicator or technician shall make available [provide] a
2265	2265	pest control information sheet developed under Section 1951.254 and
2266	2266	a pest control sign developed under that section to the chief
2267	2267	administrator or building manager. The chief administrator or
2268	2268	building manager shall notify the persons who work in the building
2269	2269	of the treatment by:
2270	2270	(1) posting the sign in an area of common access that
2271	2271	the persons are likely to check on a regular basis at least 48 hours
2272	2272	before each planned treatment; and
2273	2273	(2) providing the information sheet to a person
2274	2274	working in the building on request of the person.
2275	2275	SECTION 7.18. Subsections (a) and (b), Section 1951.457,
2276	2276	Occupations Code, are amended to read as follows:
2277	2277	(a) For an outdoor treatment at a private residence that is
2278	2278	not rental property, a certified applicator or technician shall
2279	2279	make available [leave] a pest control information sheet developed
2280	2280	under Section 1951.254 at the residence before the treatment
2281	2281	begins.
2282	2282	(b) For an outdoor treatment at a residential rental
2283	2283	property with fewer than five rental units, a certified applicator
2284	2284	or technician shall make available [leave] a pest control
2285	2285	information sheet at each unit at the time of treatment.
2286	2286	SECTION 7.19. The following provisions of the Occupations
2287	2287	Code are repealed:
2288	2288	(1) Section 1951.202;
2289	2289	(2) Section 1951.310;
2290	2290	(3) Section 1951.311;
2291	2291	(4) Subsection (d), Section 1951.456;
2292	2292	(5) Subsections (c) and (d), Section 1951.501;
2293	2293	(6) Subchapter L, Chapter 1951;
2294	2294	(7) Section 1951.604; and
2295	2295	(8) Section 1951.605.
2296	2296	SECTION 7.20. The changes in law made by this Act by the
2297	2297	repeal of Subsections (c) and (d), Section 1951.501, Occupations
2298	2298	Code, apply only to a violation of Chapter 1951, Occupations Code,
2299	2299	committed on or after the effective date of this Act. A violation
2300	2300	committed before the effective date of this Act is governed by the
2301	2301	law in effect on the date the violation occurred, and the former law
2302	2302	is continued in effect for that purpose. A violation committed on
2303	2303	or after the effective date of this Act is governed by Section
2304	2304	12.0201, Agriculture Code, as amended by this Act, and other
2305	2305	applicable law.
2306	2306	SECTION 7.21. The change in law made by this Act by the
2307	2307	repeal of Section 1951.310, Occupations Code, applies only to the
2308	2308	renewal of a license under Chapter 1951, Occupations Code, that
2309	2309	expires on or after the effective date of this Act. The renewal of a
2310	2310	license that expires before the effective date of this Act is
2311	2311	governed by the law in effect on the date the license expired, and
2312	2312	the former law is continued in effect for that purpose. An
2313	2313	application submitted on or after the effective date of this Act is
2314	2314	governed by Section 12.024, Agriculture Code, and other applicable
2315	2315	law.
2316	2316	SECTION 7.22. The change in law made by this Act by the
2317	2317	repeal of Section 1951.311, Occupations Code, applies only to an
2318	2318	application for a replacement license issued under Chapter 1951,
2319	2319	Occupations Code, submitted on or after the effective date of this
2320	2320	Act. An application submitted before the effective date of this Act
2321	2321	is governed by the law in effect on the date the application was
2322	2322	submitted, and the former law is continued in effect for that
2323	2323	purpose. An application submitted on or after the effective date of
2324	2324	this Act is governed by Section 12A.101, Agriculture Code, as added
2325	2325	by this Act, and other applicable law.
2326	2326	SECTION 7.23. The change in law made by this Act by the
2327	2327	repeal of Subchapter L, Chapter 1951, Occupations Code, applies
2328	2328	only to a violation committed on or after the effective date of this
2329	2329	Act. A violation committed before that date is governed by the law
2330	2330	in effect on the date the violation occurred, and the former law is
2331	2331	continued in effect for that purpose. A violation committed on or
2332	2332	after the effective date of this Act is governed by Section 12.020,
2333	2333	Agriculture Code, as amended by this Act, and other applicable law.
2334	2334	ARTICLE 8. SUNSET DATE AND ACROSS-THE-BOARD RECOMMENDATIONS
2335	2335	SECTION 8.01. Section 11.003, Agriculture Code, is amended
2336	2336	to read as follows:
2337	2337	Sec. 11.003. SUNSET PROVISION. The Department of
2338	2338	Agriculture is subject to Chapter 325, Government Code (Texas
2339	2339	Sunset Act). Unless continued in existence as provided by that
2340	2340	chapter, the department is abolished September 1, 2021 [2009].
2341	2341	SECTION 8.02. Section 12.0135, Agriculture Code, is amended
2342	2342	to read as follows:
2343	2343	Sec. 12.0135. CONFLICT PROVISIONS. (a) A person may not
2344	2344	be a department employee employed in a "bona fide executive,
2345	2345	administrative, or professional capacity," as that phrase is used
2346	2346	for purposes of establishing an exemption to the overtime
2347	2347	provisions of the federal Fair Labor Standards Act of 1938 (29
2348	2348	U.S.C. Section 201 et seq.), if:
2349	2349	(1) the person is an officer, employee, or paid
2350	2350	consultant of a Texas trade association in the field of
2351	2351	agriculture; or
2352	2352	(2) the person's spouse is an officer, manager, or paid
2353	2353	consultant of a Texas trade association in the field of
2354	2354	agriculture.
2355	2355	(b) A person may not act as the general counsel to the
2356	2356	commissioner or the department if the person is required to
2357	2357	register as a lobbyist under Chapter 305, Government Code, because
2358	2358	of the person's activities for compensation on behalf of a
2359	2359	profession related to the operation of the department.
2360	2360	(c) In [(b) An officer, employee, or paid consultant of a
2361	2361	statewide Texas trade association or an affiliate of a national
2362	2362	trade association in the field of agriculture may not be an employee
2363	2363	of the department who is exempt from the state's position
2364	2364	classification plan or is compensated at or above the amount
2365	2365	prescribed by the General Appropriations Act for step 1, salary
2366	2366	group 17, of the position classification salary schedule.
2367	2367	[(c) A person who is the spouse of an officer, manager, or
2368	2368	paid consultant of a statewide Texas trade association or an
2369	2369	affiliate of a national trade association in the field of
2370	2370	agriculture may not be an employee of the department who is exempt
2371	2371	from the state's position classification plan or is compensated at
2372	2372	or above the amount prescribed by the General Appropriations Act
2373	2373	for step 1, salary group 17, of the position classification salary
2374	2374	schedule.
2375	2375	[(d) For the purposes of] this section, "Texas [a] trade
2376	2376	association" means [is] a [nonprofit,] cooperative[,] and
2377	2377	voluntarily joined statewide association of business or
2378	2378	professional competitors in this state designed to assist its
2379	2379	members and its industry or profession in dealing with mutual
2380	2380	business or professional problems and in promoting their common
2381	2381	interest.
2382	2382	SECTION 8.03. Chapter 12, Agriculture Code, is amended by
2383	2383	adding Section 12.0203 to read as follows:
2384	2384	Sec. 12.0203. NEGOTIATED RULEMAKING AND ALTERNATIVE
2385	2385	DISPUTE RESOLUTION. (a) The commissioner shall develop and
2386	2386	implement a policy to encourage the use of:
2387	2387	(1) negotiated rulemaking procedures under Chapter
2388	2388	2008, Government Code, for the adoption of department rules; and
2389	2389	(2) appropriate alternative dispute resolution
2390	2390	procedures under Chapter 2009, Government Code, to assist in the
2391	2391	resolution of internal and external disputes under the department's
2392	2392	jurisdiction.
2393	2393	(b) The department's procedures relating to alternative
2394	2394	dispute resolution must conform, to the extent possible, to any
2395	2395	model guidelines issued by the State Office of Administrative
2396	2396	Hearings for the use of alternative dispute resolution by state
2397	2397	agencies.
2398	2398	(c) The commissioner shall designate a trained person to:
2399	2399	(1) coordinate the implementation of the policy
2400	2400	adopted under Subsection (a);
2401	2401	(2) serve as a resource for any training needed to
2402	2402	implement the procedures for negotiated rulemaking or alternative
2403	2403	dispute resolution; and
2404	2404	(3) collect data concerning the effectiveness of those
2405	2405	procedures, as implemented by the department.
2406	2406	SECTION 8.04. Chapter 12, Agriculture Code, is amended by
2407	2407	adding Section 12.0271 to read as follows:
2408	2408	Sec. 12.0271. RURAL ECONOMIC DEVELOPMENT AND INVESTMENT
2409	2409	PROGRAM. (a) From funds appropriated for that purpose, the
2410	2410	commissioner shall establish and administer a financial assistance
2411	2411	program to encourage private economic development in rural areas.
2412	2412	Financial assistance under the program may be provided only to:
2413	2413	(1) a county with a population of not more than 75,000;
2414	2414	(2) a municipality with a population of not more than
2415	2415	50,000; or
2416	2416	(3) an economic development corporation or community
2417	2417	development financial institution that primarily represents a
2418	2418	county or municipality described by this subsection.
2419	2419	(b) Financial assistance under Subsection (a) may be used
2420	2420	only for a project relating to:
2421	2421	(1) the acquisition or development of land, easements,
2422	2422	or rights-of-way;
2423	2423	(2) attracting new private enterprises to the county
2424	2424	or municipality, including:
2425	2425	(A) manufacturing facilities;
2426	2426	(B) freight storage facilities;
2427	2427	(C) distribution warehouse centers; and
2428	2428	(D) other nonretail private enterprises;
2429	2429	(3) the construction, extension, or other improvement
2430	2430	of:
2431	2431	(A) water or waste disposal facilities; or
2432	2432	(B) transportation infrastructure; or
2433	2433	(4) any other activity relating to private economic
2434	2434	development that the commissioner determines will encourage
2435	2435	economic and infrastructure development in a rural area.
2436	2436	(c) To further a purpose described by Subsection (b), the
2437	2437	commissioner may provide financial assistance to an eligible
2438	2438	county, municipality, community development financial institution,
2439	2439	or economic development corporation by:
2440	2440	(1) extending credit by direct loan, based on the
2441	2441	credit of the county, municipality, community development
2442	2442	financial institution, or economic development corporation;
2443	2443	(2) providing a credit enhancement;
2444	2444	(3) effectively lowering interest rates;
2445	2445	(4) financing a purchase or lease agreement in
2446	2446	connection with an economic or infrastructure development project;
2447	2447	or
2448	2448	(5) providing methods of leveraging money from sources
2449	2449	other than this state that are related to the project for which the
2450	2450	assistance is provided.
2451	2451	(d) A county, municipality, community development financial
2452	2452	institution, or economic development corporation that receives
2453	2453	funds under Subsection (c) shall segregate the funds from other
2454	2454	funds under the control of the county, municipality, or economic
2455	2455	development corporation and use the funds only for a purpose
2456	2456	described by this section. Any funds disbursed through the program
2457	2457	must be repaid on terms determined by the department.
2458	2458	(e) The department shall adopt rules necessary to implement
2459	2459	this section.
2460	2460	SECTION 8.05. Chapter 12, Agriculture Code, is amended by
2461	2461	adding Section 12.047 to read as follows:
2462	2462	Sec. 12.047. USE OF TECHNOLOGY. The commissioner shall
2463	2463	implement a policy requiring the department to use appropriate
2464	2464	technological solutions to improve the department's ability to
2465	2465	perform its functions. The policy must ensure that the public is
2466	2466	able to interact with the department on the Internet.
2467	2467	ARTICLE 9. ADDITIONAL PROVISIONS
2468	2468	SECTION 9.01. Subsection (a), Section 11.005, Agriculture
2469	2469	Code, is amended to read as follows:
2470	2470	(a) To be eligible for election as commissioner or
2471	2471	appointment to fill a vacancy in the office of commissioner, a
2472	2472	person must:
2473	2473	(1) have been engaged, for at least five of the 10
2474	2474	years preceding the year in which the person is elected or appointed
2475	2475	to the person's initial term, in the business of agriculture;
2476	2476	(2) have worked, for the five-year period preceding
2477	2477	the calendar year in which the person is elected or appointed to the
2478	2478	person's initial term, for a state or federal agency in a position
2479	2479	directly related to agriculture; [or]
2480	2480	(3) have owned or operated, for at least five of the 10
2481	2481	years preceding the year in which the person is elected or appointed
2482	2482	to the person's initial term, farm, ranch, or timber land that
2483	2483	qualifies for agricultural use appraisal under Subchapter C,
2484	2484	Chapter 23, Tax Code, and be participating, in the calendar year in
2485	2485	which the person is elected or appointed to the person's initial
2486	2486	term, in a farm program administered by the federal Agricultural
2487	2487	Stabilization and Conservation Service; or
2488	2488	(4) have worked, for at least five years at any time
2489	2489	before the calendar year in which the person is elected or appointed
2490	2490	to the person's initial term, for the Texas Agricultural Council,
2491	2491	an organization that is a member of the Texas Agricultural Council,
2492	2492	or another agricultural producer association.
2493	2493	SECTION 9.02. Section 12.022, Agriculture Code, is amended
2494	2494	to read as follows:
2495	2495	Sec. 12.022. AUTHORITY TO SOLICIT AND ACCEPT GIFTS, GRANTS,
2496	2496	AND DONATIONS. The department may solicit and [is authorized to]
2497	2497	accept gifts, grants, and donations of money, services, or property
2498	2498	from any person. Money received by the department under this
2499	2499	section may be expended or distributed for any public purpose
2500	2500	related to the department's duties [and shall file annually with
2501	2501	the governor and the presiding officer of each house of the
2502	2502	legislature a complete and detailed written report accounting for
2503	2503	all gifts, grants, and donations received and disbursed, used, or
2504	2504	maintained by the department during the preceding fiscal year.
2505	2505	This report shall be included in the annual report required by
2506	2506	Section 12.014 of this chapter].
2507	2507	SECTION 9.03. Chapter 12, Agriculture Code, is amended by
2508	2508	adding Section 12.0027 to read as follows:
2509	2509	Sec. 12.0027. NUTRITION OUTREACH PROGRAM. (a) The
2510	2510	department may develop an outreach program to promote better health
2511	2511	and nutrition programs and prevent obesity among children in this
2512	2512	state.
2513	2513	(b) The department may solicit and accept gifts, grants, and
2514	2514	donations from any public or private sources for the purposes of
2515	2515	this section.
2516	2516	(c) The department may adopt rules as necessary to
2517	2517	administer an outreach program established under this section.
2518	2518	SECTION 9.04. Chapter 12, Agriculture Code, is amended by
2519	2519	adding Section 12.046 to read as follows:
2520	2520	Sec. 12.046. TEXAS RURAL INVESTMENT FUND. (a) In this
2521	2521	section:
2522	2522	(1) "Fund" means the Texas Rural Investment Fund.
2523	2523	(2) "Rural community" means a municipality with a
2524	2524	population of less than 50,000 or a county with a population of less
2525	2525	than 200,000.
2526	2526	(b) The fund is a dedicated account in the general revenue
2527	2527	fund and consists of:
2528	2528	(1) appropriations of money to the fund by the
2529	2529	legislature;
2530	2530	(2) gifts, grants, including federal grants, and other
2531	2531	donations received for the fund; and
2532	2532	(3) interest earned on the investment of money in the
2533	2533	fund.
2534	2534	(b-1) The department shall administer the fund and select
2535	2535	recipients of grants and loans from the fund.
2536	2536	(c) The fund may be used by the department only to:
2537	2537	(1) pay for grants or loans to public or private
2538	2538	entities for projects in rural communities that have strong local
2539	2539	support, provide positive return on the state's investment, and
2540	2540	stimulate one or more of the following:
2541	2541	(A) local entrepreneurship;
2542	2542	(B) job creation or retention;
2543	2543	(C) new capital investment;
2544	2544	(D) strategic economic development planning;
2545	2545	(E) individual economic and community
2546	2546	development leadership training;
2547	2547	(F) housing development; or
2548	2548	(G) innovative workforce education; and
2549	2549	(2) administer the grant and loan program under this
2550	2550	section.
2551	2551	(d) In awarding a grant or loan of money from the fund for a
2552	2552	project, the department shall consider:
2553	2553	(1) the project's effect on job creation and wages;
2554	2554	(2) the financial strength of the applicant;
2555	2555	(3) the applicant's business history;
2556	2556	(4) an analysis of the relevant business sector;
2557	2557	(5) whether there is public or private sector
2558	2558	financial support for the project; and
2559	2559	(6) whether there is local support for the project.
2560	2560	(e) The fund is exempt from the application of Sections
2561	2561	403.095 and 404.071, Government Code.
2562	2562	(f) The department may accept grants, gifts, or donations
2563	2563	from any source that are made for the purposes of this section.
2564	2564	Money received under this subsection shall be deposited in the
2565	2565	fund.
2566	2566	(g) The department shall adopt rules to administer this
2567	2567	section.
2568	2568	SECTION 9.05. Chapter 12, Agriculture Code, is amended by
2569	2569	adding Section 12.048 to read as follows:
2570	2570	Sec. 12.048. OBTAINING CRIMINAL HISTORY RECORD
2571	2571	INFORMATION. (a) The department is authorized to obtain from the
2572	2572	Department of Public Safety criminal history record information
2573	2573	maintained by the Department of Public Safety that relates to a
2574	2574	person who:
2575	2575	(1) applies for a license issued by the department;
2576	2576	(2) holds a license issued by the department;
2577	2577	(3) requests a determination of eligibility for a
2578	2578	license issued by the department; or
2579	2579	(4) is an employee, volunteer, or intern of the
2580	2580	department, or an applicant to be an employee, volunteer, or intern
2581	2581	of the department.
2582	2582	(b) In addition to the information the department is
2583	2583	authorized to obtain under Sections 411.122 and 411.1405,
2584	2584	Government Code, and this section, the department is authorized to
2585	2585	request and obtain criminal history record information through the
2586	2586	Federal Bureau of Investigation as provided by Section 411.087,
2587	2587	Government Code.
2588	2588	(c) Information provided to the department under this
2589	2589	section and Chapter 411, Government Code, is confidential, is not
2590	2590	subject to disclosure under Chapter 552, Government Code, and may
2591	2591	not be disclosed to any person other than as required by a court
2592	2592	order.
2593	2593	SECTION 9.06. Subsection (a), Section 19.012, Agriculture
2594	2594	Code, is amended to read as follows:
2595	2595	(a) A person commits an offense if the person:
2596	2596	(1) sells or offers to sell citrus budwood or a citrus
2597	2597	nursery tree falsely claiming that it is certified or that it comes
2598	2598	from a designated foundation grove; [or]
2599	2599	(2) uses, for commercial purposes, citrus budwood that
2600	2600	is required by department rule to be certified and is not certified
2601	2601	or does not come from a designated foundation grove; or
2602	2602	(3) fails to comply with an order of the department
2603	2603	issued under this chapter.
2604	2604	SECTION 9.07. Section 19.014, Agriculture Code, is amended
2605	2605	to read as follows:
2606	2606	Sec. 19.014. ADMINISTRATIVE PENALTIES. The department may
2607	2607	assess an administrative penalty under Chapter 12 for a violation
2608	2608	of this chapter if the department finds that a person:
2609	2609	(1) sells or offers to sell citrus budwood or a citrus
2610	2610	nursery tree falsely claiming that it is certified or that it comes
2611	2611	from a designated foundation grove under this chapter;
2612	2612	(2) uses citrus budwood in violation of rules adopted
2613	2613	under this chapter; [or]
2614	2614	(3) uses, for commercial purposes, citrus budwood that
2615	2615	is required by department rule to be certified and is not certified
2616	2616	or does not come from a designated foundation grove; or
2617	2617	(4) fails to comply with an order of the department
2618	2618	issued under this chapter.
2619	2619	SECTION 9.08. Section 41.151, Agriculture Code, is amended
2620	2620	to read as follows:
2621	2621	Sec. 41.151. DEFINITIONS. In this subchapter:
2622	2622	(1) "Beef products" means products produced in whole
2623	2623	or in part from beef. The term does not include milk or products
2624	2624	made from milk.
2625	2625	(2) ["Board" means the board of directors of the Texas
2626	2626	Beef Council.
2627	2627	[(3)] "Council" means the Texas Beef Council.
2628	2628	(3) [(4)] "Producer" means a person who owns or
2629	2629	acquires ownership of cattle, except that a person is not a producer
2630	2630	if the person's only share in the proceeds of a sale of cattle or
2631	2631	beef is a sales commission, handling fee, or other service fee.
2632	2632	SECTION 9.09. Subsection (b), Section 41.152, Agriculture
2633	2633	Code, is amended to read as follows:
2634	2634	(b) The council shall be the certified organization
2635	2635	[recognized as the entity] to plan, implement, and operate
2636	2636	research, education, promotion, and marketing programs under this
2637	2637	subchapter. The council is the state beef council qualified to
2638	2638	collect the proceeds of and administer in this state the beef check
2639	2639	off program established by federal law.
2640	2640	SECTION 9.10. Section 41.156, Agriculture Code, is amended
2641	2641	to read as follows:
2642	2642	Sec. 41.156. COUNCIL [BOARD] MEMBERS. (a) The council
2643	2643	[board] is composed of 20 [21] members nominated by the council and
2644	2644	appointed by the commissioner as follows:
2645	2645	(1) three representatives of the Texas and
2646	2646	Southwestern Cattle Raisers Association;
2647	2647	(2) three representatives of the Texas Cattle Feeders
2648	2648	Association;
2649	2649	(3) three representatives of the Texas Farm Bureau;
2650	2650	(4) two representatives of the Independent Cattlemen's
2651	2651	Association of Texas;
2652	2652	(5) two representatives of the Texas purebred cattle
2653	2653	industry;
2654	2654	(6) two representatives of the Texas dairy industry;
2655	2655	(7) one representative [two representatives] of the
2656	2656	Livestock Marketing Association of Texas;
2657	2657	(8) one representative of meat packer and exporter
2658	2658	associations;
2659	2659	(9) one representative of Texas CattleWomen; and
2660	2660	(10) two at-large directors.
2661	2661	(b) A council [board] member serves a one-year term or until
2662	2662	his or her successor is appointed. A council member may serve not
2663	2663	more than six consecutive one-year terms, except that a council
2664	2664	member who is elected to serve as an officer during the member's
2665	2665	sixth consecutive one-year term may serve as chairman or past
2666	2666	chairman for not more than two additional consecutive one-year
2667	2667	terms.
2668	2668	(c) The commissioner, on recommendation of the council,
2669	2669	shall fill a vacancy on the council [board] by appointment for the
2670	2670	unexpired term.
2671	2671	SECTION 9.11. Section 41.157, Agriculture Code, is amended
2672	2672	to read as follows:
2673	2673	Sec. 41.157. GENERAL POWERS OF COUNCIL. The council may
2674	2674	take action or exercise other authority as necessary to execute any
2675	2675	act authorized by this chapter [subchapter] or the Texas Non-Profit
2676	2676	Corporation Act (Article 1396-1.01 et seq., Vernon's Texas Civil
2677	2677	Statutes).
2678	2678	SECTION 9.12. Subsections (b), (c), and (e), Section
2679	2679	41.160, Agriculture Code, are amended to read as follows:
2680	2680	(b) If an assessment referendum is approved, the council
2681	2681	shall recommend to the commissioner an assessment amount not
2682	2682	greater than the maximum amount approved in the referendum. After
2683	2683	the assessment is approved by the commissioner, the council shall
2684	2684	collect the assessment.
2685	2685	(c) An assessment levied on producers shall [may] be applied
2686	2686	by the council to efforts relating to the marketing, education,
2687	2687	research, and promotion of beef and beef products in Texas, the
2688	2688	United States, and international markets, including administrative
2689	2689	costs of conducting an assessment referendum.
2690	2690	(e) Section 41.083 applies to an assessment collected by the
2691	2691	council under this subchapter. Section 41.082 does not apply to an
2692	2692	assessment collected under this subchapter. The commissioner, on
2693	2693	the council's recommendation, may exempt from the assessment
2694	2694	certain producers who are exempt under federal law.
2695	2695	SECTION 9.13. Subsection (a), Section 41.161, Agriculture
2696	2696	Code, is amended to read as follows:
2697	2697	(a) The commissioner shall annually review and approve the
2698	2698	council's operating budget for the funds collected under this
2699	2699	subchapter.
2700	2700	SECTION 9.14. Subsection (g), Section 41.162, Agriculture
2701	2701	Code, is amended to read as follows:
2702	2702	(g) The council shall pay all expenses incurred in
2703	2703	conducting a referendum with funds collected from the beef
2704	2704	industry.
2705	2705	SECTION 9.15. Subsection (d), Section 71.004, Agriculture
2706	2706	Code, is amended to read as follows:
2707	2707	(d) An emergency quarantine shall be established in
2708	2708	accordance with the provisions related to emergency rulemaking in
2709	2709	Chapter 2001, Government Code [expires 30 days following the date
2710	2710	on which it was established unless reestablished following notice
2711	2711	and hearing as provided by this subchapter].
2712	2712	SECTION 9.16. Subsection (b), Section 72.002, Agriculture
2713	2713	Code, is amended to read as follows:
2714	2714	(b) The department may adopt rules[, to be proclaimed by the
2715	2715	governor,] as necessary for the administration of this chapter.
2716	2716	SECTION 9.17. Subsections (a) and (b), Section 72.011,
2717	2717	Agriculture Code, are amended to read as follows:
2718	2718	(a) When advised of the existence of Mexican fruit fly
2719	2719	within a county or part of a county in this state, the department
2720	2720	shall certify that fact and [to the governor, and the governor
2721	2721	shall] proclaim the county or part of a county quarantined under
2722	2722	this chapter.
2723	2723	(b) If the department determines that the exigencies of the
2724	2724	situation require a modified quarantine, the department may
2725	2725	designate a modified quarantined area [to be certified to the
2726	2726	governor for proclamation].
2727	2727	SECTION 9.18. Section 72.012, Agriculture Code, is amended
2728	2728	to read as follows:
2729	2729	Sec. 72.012. PERSONS AND PREMISES SUBJECT. The premises of
2730	2730	each individual, whether an owner, lessee, renter, tenant, or
2731	2731	occupant, within the area named in the quarantine [proclamation]
2732	2732	are subject to the quarantine, even though not specifically named.
2733	2733	SECTION 9.19. Subsection (a), Section 72.015, Agriculture
2734	2734	Code, is amended to read as follows:
2735	2735	(a) A person may not haul, truck, or otherwise move citrus
2736	2736	fruit from any premises or area that is under quarantine for Mexican
2737	2737	fruit fly infestation by this chapter or[,] by order of the
2738	2738	department[, or by proclamation of the governor] in violation of
2739	2739	the quarantine without a written permit or certificate issued by
2740	2740	the department or an inspector of the Plant Protection and
2741	2741	Quarantine Programs, Animal and Plant Health Inspection Service,
2742	2742	United States Department of Agriculture.
2743	2743	SECTION 9.20. Subsection (a), Section 76.004, Agriculture
2744	2744	Code, is amended to read as follows:
2745	2745	(a) The [Except as provided by Subchapter G, after notice,
2746	2746	the department shall conduct at least five regional hearings
2747	2747	throughout the state before the adoption of any rule for carrying
2748	2748	out the provisions of this chapter. Thereafter, the] department
2749	2749	may adopt rules for carrying out the provisions of this chapter,
2750	2750	including rules providing for:
2751	2751	(1) the collection, examination, and reporting of
2752	2752	records, devices, and samples of pesticides;
2753	2753	(2) the safe handling, transportation, storage,
2754	2754	display, distribution, or disposal of pesticides and pesticide
2755	2755	containers;
2756	2756	(3) labeling requirements for pesticides and devices
2757	2757	required to be registered under this chapter; and
2758	2758	(4) compliance with federal pesticide rules and
2759	2759	regulations.
2760	2760	SECTION 9.21. Section 144.041, Agriculture Code, is amended
2761	2761	by adding Subsection (g) to read as follows:
2762	2762	(g) The recording of marks and brands at a point of sale for
2763	2763	use by an association authorized to inspect livestock under 7
2764	2764	U.S.C. Section 217a does not serve as a record under this chapter.
2765	2765	An association authorized to inspect livestock under 7 U.S.C.
2766	2766	Section 217a has no duty to verify ownership at a point of sale.
2767	2767	SECTION 9.22. Section 251.005, Agriculture Code, is amended
2768	2768	by adding Subsection (e) to read as follows:
2769	2769	(e) A governmental requirement of a political subdivision
2770	2770	of the state does not apply to conduct described by Section
2771	2771	42.09(f), Penal Code, on an agricultural operation.
2772	2772	SECTION 9.23. The following provisions are repealed:
2773	2773	(1) Section 12.017, Agriculture Code;
2774	2774	(2) Section 72.003, Agriculture Code;
2775	2775	(3) Subsection (c), Section 72.011, Agriculture Code;
2776	2776	and
2777	2777	(4) Section 76.005, Agriculture Code.
2778	2778	SECTION 9.24. (a) The change in law made by this Act to
2779	2779	Section 19.012, Agriculture Code, applies only to an offense
2780	2780	committed on or after the effective date of this Act. An offense
2781	2781	committed before the effective date of this Act is covered by the
2782	2782	law in effect when the offense was committed, and the former law is
2783	2783	continued in effect for that purpose. For purposes of this
2784	2784	subsection, an offense was committed before the effective date of
2785	2785	this Act if any element of the offense was committed before that
2786	2786	date.
2787	2787	(b) The change in law made by this Act to Section 19.014,
2788	2788	Agriculture Code, applies only to conduct that occurred on or after
2789	2789	the effective date of this Act. Conduct that occurred before the
2790	2790	effective date of this Act is governed by the law in effect when the
2791	2791	conduct occurred, and the former law is continued in effect for that
2792	2792	purpose.
2793	2793	(c) The change in law made by this Act to Section 41.156,
2794	2794	Agriculture Code, does not affect the entitlement of a member of the
2795	2795	board of directors of the Texas Beef Council to serve for the
2796	2796	remainder of the member's term. A board member appointed before the
2797	2797	effective date of this Act is governed by the law in effect
2798	2798	immediately before the effective date of this Act, and the former
2799	2799	law is continued in effect for that purpose.
2800	2800	(d) The change in law made by this Act to Section 41.160,
2801	2801	Agriculture Code, applies only to an assessment approved on or
2802	2802	after the effective date of this Act. An assessment approved before
2803	2803	the effective date of this Act is governed by the law in effect
2804	2804	immediately before the effective date of this Act, and the former
2805	2805	law is continued in effect for that purpose.
2806	2806	(e) The change in law made by this Act to Section 41.162,
2807	2807	Agriculture Code, applies only to an assessment referendum
2808	2808	conducted on or after the effective date of this Act. An assessment
2809	2809	referendum conducted before the effective date of this Act is
2810	2810	governed by the law in effect immediately before the effective date
2811	2811	of this Act, and the former law is continued in effect for that
2812	2812	purpose.
2813	2813	(f) The changes in law made by this Act by the amendment of
2814	2814	Section 76.004, Agriculture Code, and the repeal of Section 76.005,
2815	2815	Agriculture Code, apply only to a public hearing held on or after
2816	2816	the effective date of this Act. A public hearing held before the
2817	2817	effective date of this Act is governed by the law in effect
2818	2818	immediately before the effective date of this Act, and the former
2819	2819	law is continued in effect for that purpose.
2820	2820	ARTICLE 10. ESTABLISHMENT OF THE OFFICIAL CITRUS PRODUCERS' PEST
2821	2821	AND DISEASE MANAGEMENT CORPORATION
2822	2822	SECTION 10.01. Subtitle B, Title 5, Agriculture Code, is
2823	2823	amended by adding Chapter 80 to read as follows:
2824	2824	CHAPTER 80. OFFICIAL CITRUS PRODUCERS' PEST AND DISEASE
2825	2825	MANAGEMENT CORPORATION
2826	2826	Sec. 80.001. FINDINGS AND DECLARATION OF POLICY. (a) The
2827	2827	legislature finds that:
2828	2828	(1) the insect known as the Asian citrus psyllid and
2829	2829	the disease known as citrus greening are public nuisances and
2830	2830	menaces to the citrus industry, and their control and suppression
2831	2831	is a public necessity;
2832	2832	(2) because of the natural migration patterns of the
2833	2833	Asian citrus psyllid, the control and suppression of the nuisance
2834	2834	can best be accomplished by dividing the commercial citrus-growing
2835	2835	areas into separate zones so that integrated pest management
2836	2836	programs may be developed for each zone;
2837	2837	(3) there is a need for a quasi-governmental entity
2838	2838	acting under the supervision and control of the commissioner whose
2839	2839	members are actual citrus producers who would be represented on the
2840	2840	board of the entity by directors elected by them to manage control
2841	2841	and suppression programs and to furnish expertise in the field of
2842	2842	insect control and suppression, because such an entity would
2843	2843	enhance the interest and participation of citrus producers in the
2844	2844	program;
2845	2845	(4) citrus producers, in partnership with the state
2846	2846	and federal governments, have made significant investments toward
2847	2847	the suppression of these pests and disease in this state; and
2848	2848	(5) it is essential to the well-being of the citrus
2849	2849	industry and the agricultural economy of this state that the
2850	2850	investments of the citrus producers and the state and federal
2851	2851	governments be protected.
2852	2852	(b) It is the intent of the legislature that the program of
2853	2853	control and suppression of the Asian citrus psyllid be carried out
2854	2854	with the best available integrated pest management techniques.
2855	2855	(c) The department may recover costs for administration of
2856	2856	this chapter.
2857	2857	Sec. 80.002. DESIGNATION OF ENTITY TO CARRY OUT ASIAN
2858	2858	CITRUS PSYLLID AND CITRUS GREENING CONTROL AND SUPPRESSION.
2859	2859	(a) The Texas Citrus Pest and Disease Management Corporation,
2860	2860	Inc., a Texas nonprofit corporation, shall be recognized by the
2861	2861	department as the entity to plan, carry out, and operate
2862	2862	suppression programs to manage and control the Asian citrus psyllid
2863	2863	and citrus greening in citrus plants in the state under the
2864	2864	supervision of the department as provided by this chapter.
2865	2865	(b) The commissioner may terminate the corporation's
2866	2866	designation as the entity recognized to carry out Asian citrus
2867	2867	psyllid control and management by giving 45 days' written notice to
2868	2868	the corporation and by designating a successor entity. If the
2869	2869	commissioner designates a successor to the corporation, the
2870	2870	successor has all the powers and duties of the corporation under
2871	2871	this chapter. Any successor to the corporation shall assume and
2872	2872	shall be responsible for all obligations and liabilities relating
2873	2873	to any notes, security agreements, assignments, loan agreements,
2874	2874	and any other contracts or other documents entered into by the
2875	2875	corporation with or for the benefit of any financial institution or
2876	2876	its predecessor, successor, or assignee.
2877	2877	Sec. 80.003. DEFINITIONS. In this chapter:
2878	2878	(1) "Board" means the board of directors of the Texas
2879	2879	Citrus Pest and Disease Management Corporation, Inc.
2880	2880	(2) "Asian citrus psyllid" means Diaphorina citri
2881	2881	Kuwayama.
2882	2882	(3) "Commissioner" means the commissioner of
2883	2883	agriculture.
2884	2884	(4) "Citrus" means:
2885	2885	(A) a citrus plant;
2886	2886	(B) a part of a citrus plant, including trees,
2887	2887	limbs, flowers, roots, and leaves; or
2888	2888	(C) citrus products.
2889	2889	(5) "Citrus greening" means the disease caused by the
2890	2890	Asian citrus psyllid.
2891	2891	(6) "Citrus producer" means a person who grows citrus
2892	2892	and receives income from the sale of citrus. The term includes an
2893	2893	individual who as owner, landlord, tenant, or sharecropper is
2894	2894	entitled to share in the citrus grown and available for marketing
2895	2895	from a farm or to share in the proceeds from the sale of the citrus
2896	2896	from the farm.
2897	2897	(7) "Suppression" means control of the numbers and
2898	2898	migration of the Asian citrus psyllid to the extent that the
2899	2899	commissioner does not consider further management of the Asian
2900	2900	citrus psyllid necessary to prevent economic loss to citrus
2901	2901	producers.
2902	2902	(8) "Pest management zone" means a geographic area
2903	2903	designated by the commissioner in accordance with Section 80.005 in
2904	2904	which citrus producers by referendum approve their participation in
2905	2905	a citrus pest control program.
2906	2906	(9) "Corporation" means the Texas Citrus Pest and
2907	2907	Disease Management Corporation, Inc., a Texas nonprofit
2908	2908	corporation.
2909	2909	(10) "Host" means a plant or plant product in which the
2910	2910	Asian citrus psyllid is capable of completing any portion of its
2911	2911	life cycle.
2912	2912	(11) "Infested" means the presence of the Asian citrus
2913	2913	psyllid in any life stage or the existence of generally accepted
2914	2914	entomological evidence from which it may be concluded with
2915	2915	reasonable certainty that the Asian citrus psyllid is present.
2916	2916	(12) "Integrated pest management" means the
2917	2917	coordinated use of pest and environmental information with
2918	2918	available pest control methods, including pesticides, natural
2919	2919	predator controls, cultural farming practices, and climatic
2920	2920	conditions, to prevent unacceptable levels of pest damage by the
2921	2921	most economical means and with the least possible hazard to people,
2922	2922	property, and the environment.
2923	2923	(13) "Regulated article" means an article carrying or
2924	2924	capable of carrying the Asian citrus psyllid, including citrus
2925	2925	plants, nursery plants, citrus rootstock, or other hosts.
2926	2926	Sec. 80.004. ADVISORY COMMITTEES. (a) The commissioner
2927	2927	may appoint an advisory committee for an existing pest management
2928	2928	zone or an area of the state that is to be considered by the
2929	2929	commissioner for designation as or inclusion in a pest management
2930	2930	zone. The committee shall gather advice, input, and guidance from
2931	2931	citrus producers from the area represented by the committee
2932	2932	concerning the interest in and concerns about the implementation of
2933	2933	this chapter.
2934	2934	(b) Each advisory committee may consider and make
2935	2935	recommendations to the commissioner and the corporation
2936	2936	concerning:
2937	2937	(1) the geographic boundaries for a proposed pest
2938	2938	management zone;
2939	2939	(2) the amount of local interest in operating a
2940	2940	suppression program;
2941	2941	(3) the basis and amount of an assessment necessary to
2942	2942	support a suppression program;
2943	2943	(4) ongoing implementation of a suppression program
2944	2944	approved by growers in a pest management zone; and
2945	2945	(5) any other matter requested by the commissioner or
2946	2946	the corporation.
2947	2947	(c) Each advisory committee appointed under this section
2948	2948	must include a sufficient number of citrus producers to ensure
2949	2949	adequate representation across the pest management zone and other
2950	2950	persons as determined by the commissioner.
2951	2951	(d) An advisory committee established under this section is
2952	2952	subject to Chapters 551 and 552, Government Code.
2953	2953	Sec. 80.005. CREATION OF PEST MANAGEMENT ZONES. (a) The
2954	2954	commissioner by rule may designate an area of this state as a
2955	2955	proposed pest management zone.
2956	2956	(b) The commissioner may hold a public hearing in the
2957	2957	proposed pest management zone to discuss the proposed geographic
2958	2958	boundaries of the zone. The public hearing may include any other
2959	2959	topic allowed under this chapter.
2960	2960	(c) After the adoption of a rule under Subsection (a), the
2961	2961	commissioner shall conduct a referendum under Section 80.006.
2962	2962	Sec. 80.006. PEST MANAGEMENT ZONE REFERENDA. (a) The
2963	2963	commissioner shall conduct a referendum in each proposed pest
2964	2964	management zone to determine whether citrus producers want to
2965	2965	establish a pest management zone.
2966	2966	(b) Pest management zone referenda shall be conducted under
2967	2967	the procedures provided by Section 80.016.
2968	2968	(c) A proposed pest management zone referendum ballot must
2969	2969	include or be accompanied by information about the proposed pest
2970	2970	management zone, including:
2971	2971	(1) a statement of the purpose of the Asian citrus
2972	2972	psyllid suppression program;
2973	2973	(2) the geographic area included in the proposed pest
2974	2974	management zone;
2975	2975	(3) a general summary of rules adopted by the
2976	2976	commissioner under Sections 80.016, 80.020, and 80.022, including a
2977	2977	description of:
2978	2978	(A) citrus producer responsibilities; and
2979	2979	(B) penalties for noncompliance with rules
2980	2980	adopted under this chapter; and
2981	2981	(4) an address and toll-free telephone number that a
2982	2982	citrus producer may use to request more information about the
2983	2983	referendum or the Asian citrus psyllid suppression program.
2984	2984	(d) If a referendum to establish a pest management zone is
2985	2985	not approved, the concurrent election of a board member from the
2986	2986	proposed pest management zone under Section 80.007 has no effect,
2987	2987	and the commissioner shall appoint a representative to the board
2988	2988	from the area.
2989	2989	(e) The corporation may request the commissioner to call
2990	2990	additional referenda in a proposed pest management zone in which a
2991	2991	referendum has not been approved. An additional pest management
2992	2992	zone referendum and concurrent board election may not be held
2993	2993	before the first anniversary of the date of the preceding
2994	2994	referendum.
2995	2995	(f) After the approval of any referendum, the eligible
2996	2996	voters shall be allowed, by subsequent referenda, to vote on
2997	2997	whether to continue their assessments. The requirements for an
2998	2998	initial referendum must be complied with in a subsequent
2999	2999	referendum.
3000	3000	Sec. 80.007. BOARD ELECTIONS. (a) The initial election
3001	3001	for board members from a proposed pest management zone shall be held
3002	3002	concurrently with a pest management zone referendum held under
3003	3003	Section 80.006. Each pest management zone must be represented on
3004	3004	the board and remain represented on the board until suppression
3005	3005	operations are concluded and all debt of the pest management zone is
3006	3006	paid.
3007	3007	(b) A board election shall be conducted under the procedures
3008	3008	provided by this section and Section 80.016.
3009	3009	(c) A citrus producer who is eligible to vote in a
3010	3010	referendum or election under this chapter is eligible to be a
3011	3011	candidate for and member of the board if the person has at least
3012	3012	seven years of experience as a citrus producer and otherwise meets
3013	3013	the qualifications for the office.
3014	3014	(d) A citrus producer who wants to be a candidate for the
3015	3015	board must meet the qualifications for board membership and file an
3016	3016	application with the commissioner. The application must be:
3017	3017	(1) filed not later than the 30th day before the date
3018	3018	set for the board election;
3019	3019	(2) on a form approved by the commissioner; and
3020	3020	(3) signed by at least 10 citrus producers who are
3021	3021	eligible to vote in the board election.
3022	3022	(e) On receipt of an application and verification that the
3023	3023	application meets the requirements of Subsection (d), an
3024	3024	applicant's name shall be placed on the ballot for the board
3025	3025	election.
3026	3026	(f) An eligible voter may vote for a citrus producer whose
3027	3027	name does not appear on the official ballot by writing that person's
3028	3028	name on the ballot.
3029	3029	(g) A board election must be preceded by at least 45 days'
3030	3030	notice published in one or more newspapers published and
3031	3031	distributed in the proposed or established pest management zone.
3032	3032	The notice shall be published not less than once a week for three
3033	3033	consecutive weeks. Not later than the 45th day before the date of
3034	3034	the election, direct written notice of the election shall be given
3035	3035	to each Texas AgriLife Extension Service agent in the pest
3036	3036	management zone.
3037	3037	(h) Each board member shall be sworn into office by a
3038	3038	representative of the commissioner by taking the oath of office
3039	3039	required for elected officers of the state.
3040	3040	Sec. 80.008. COMPOSITION OF BOARD. (a) The board is
3041	3041	composed of members elected from each pest management zone
3042	3042	established by referendum, members appointed by the commissioner
3043	3043	from other citrus-growing areas of the state, and members appointed
3044	3044	by the commissioner under Subsection (b). The commissioner shall
3045	3045	appoint an initial board composed of 15 members. Except as provided
3046	3046	by Subsection (b), the term of each board position may not exceed
3047	3047	four years.
3048	3048	(b) In making appointments under this section, the
3049	3049	commissioner shall appoint the following board members, selected
3050	3050	from a variety of citrus-growing regions of the state, for
3051	3051	four-year terms:
3052	3052	(1) an agricultural lender;
3053	3053	(2) an independent entomologist who is an integrated
3054	3054	pest management specialist;
3055	3055	(3) two representatives from industries allied with
3056	3056	citrus production; and
3057	3057	(4) a representative from the pest control industry.
3058	3058	(c) The commissioner may change the number of board
3059	3059	positions or the pest management zone representation on the board
3060	3060	to accommodate changes in the number of pest management zones. A
3061	3061	change under this subsection may not contravene another provision
3062	3062	of this chapter.
3063	3063	(d) A vacancy on the board shall be filled by appointment by
3064	3064	the commissioner for the unexpired term.
3065	3065	(e) On 30 days' notice and opportunity for hearing, the
3066	3066	commissioner may replace any unelected board member of the
3067	3067	corporation.
3068	3068	Sec. 80.009. POWERS OF BOARD AND COMMISSIONER. (a) The
3069	3069	board may:
3070	3070	(1) conduct programs consistent with the declaration
3071	3071	of policy stated in Section 80.001;
3072	3072	(2) accept, as necessary to implement this chapter,
3073	3073	gifts and grants;
3074	3074	(3) borrow money, with the approval of the
3075	3075	commissioner, as necessary to execute this chapter;
3076	3076	(4) take other action and exercise other authority as
3077	3077	necessary to execute any act authorized by this chapter or the Texas
3078	3078	Non-Profit Corporation Act (Article 1396-1.01 et seq., Vernon's
3079	3079	Texas Civil Statutes); and
3080	3080	(5) form an advisory committee composed of individuals
3081	3081	from this state, other states, or other countries and change
3082	3082	membership on the committee, as necessary. Any advisory committee
3083	3083	created under this subdivision for the purpose of establishing
3084	3084	treatment methods shall include among its members persons with
3085	3085	knowledge of the effects of different treatments on the health of
3086	3086	agricultural workers, the local population, and the ecosystem,
3087	3087	including but not limited to the effects of a particular method of
3088	3088	treatment on beneficial organisms and wildlife, the potential for
3089	3089	secondary infestations from nontarget pests, and the potential for
3090	3090	pest resistance to particular methods of treatment.
3091	3091	(b) On petition of at least 30 percent of the citrus
3092	3092	producers eligible to vote in the proposed area, the commissioner
3093	3093	may, or at the commissioner's discretion the commissioner by rule
3094	3094	may, add an area to a pest management zone or transfer an area or
3095	3095	county from one zone to another zone if:
3096	3096	(1) citrus production has begun or could begin in the
3097	3097	area;
3098	3098	(2) the area is adjacent to a pest management zone or
3099	3099	is in an area with biological characteristics similar to the pest
3100	3100	management zone; and
3101	3101	(3) the addition is approved in a referendum held in
3102	3102	the area.
3103	3103	(c) The board must adopt a procurement policy, subject to
3104	3104	approval by the commissioner, outlining the procedures to be used
3105	3105	in purchasing.
3106	3106	(d) The commissioner at any time may inspect the books and
3107	3107	other financial records of the corporation.
3108	3108	Sec. 80.010. BOARD DUTIES. (a) The board shall have an
3109	3109	annual independent audit of the books, records of account, and
3110	3110	minutes of proceedings maintained by the corporation prepared by an
3111	3111	independent certified public accountant or a firm of independent
3112	3112	certified public accountants. The audit must include information
3113	3113	for each zone in which a suppression program has been conducted
3114	3114	under this chapter. The audit shall be filed with the board, the
3115	3115	commissioner, and the state auditor and be made available to the
3116	3116	public by the corporation or the commissioner. The transactions of
3117	3117	the corporation are subject to audit by the state auditor in
3118	3118	accordance with Chapter 321, Government Code.
3119	3119	(b) Not later than the 45th day after the last day of the
3120	3120	fiscal year, the board shall submit to the commissioner a report
3121	3121	itemizing all income and expenditures and describing all activities
3122	3122	of the corporation during the fiscal year.
3123	3123	(c) The corporation shall provide fidelity bonds in amounts
3124	3124	determined by the board for employees or agents who handle money for
3125	3125	the corporation.
3126	3126	(d) The corporation and the board are state agencies for the
3127	3127	following purposes only:
3128	3128	(1) exemption from taxation, including exemption from
3129	3129	sales and use taxes and taxes under Chapter 152, Tax Code; and
3130	3130	(2) exemption from vehicle registration fees.
3131	3131	(e) Funds collected by the corporation are not state funds
3132	3132	and are not required to be deposited in the state treasury. The
3133	3133	corporation shall deposit all money collected under this chapter in
3134	3134	a bank or other depository approved by the commissioner.
3135	3135	(f) The board shall collect data on the type and quantity of
3136	3136	pesticides used in accordance with this chapter. The data shall be
3137	3137	filed with the commissioner.
3138	3138	(g) All money collected under this chapter shall be used
3139	3139	solely to finance programs approved by the commissioner as
3140	3140	consistent with this chapter.
3141	3141	(h) The corporation is subject to the requirements of:
3142	3142	(1) the open meetings law, Chapter 551, Government
3143	3143	Code; and
3144	3144	(2) the public information law, Chapter 552,
3145	3145	Government Code.
3146	3146	(i) A board member may not vote on any matter in which the
3147	3147	member has a direct pecuniary interest. A board member is subject
3148	3148	to the same restrictions as a local public official under Chapter
3149	3149	171, Local Government Code.
3150	3150	Sec. 80.011. ADMINISTRATIVE REVIEW. (a) The commissioner
3151	3151	by rule shall establish procedures for the informal review and
3152	3152	resolution of a claim arising out of certain acts taken by the
3153	3153	corporation under this chapter. Rules established under this
3154	3154	section shall include a designation of the acts that are subject to
3155	3155	review under this subsection and the appropriate remedial action,
3156	3156	as authorized by this chapter.
3157	3157	(b) A person dissatisfied with the department's informal
3158	3158	resolution of a claim under procedures adopted under Subsection (a)
3159	3159	may appeal the department's decision to the commissioner.
3160	3160	(c) A decision issued by the commissioner on a claim
3161	3161	appealed under Subsection (b) is the final administrative action of
3162	3162	the department and is subject to judicial review under Chapter
3163	3163	2001, Government Code.
3164	3164	(d) This section does not constitute a waiver of the state's
3165	3165	immunity from liability.
3166	3166	Sec. 80.012. CONTRACTING. (a) For a purchase of goods and
3167	3167	services under this chapter, the corporation may purchase goods and
3168	3168	services that provide the best value for the corporation.
3169	3169	(b) In determining the best value for the corporation, the
3170	3170	purchase price and whether the goods or services meet
3171	3171	specifications are the most important considerations. However, the
3172	3172	corporation may consider other relevant factors, including:
3173	3173	(1) the quality and reliability of the goods and
3174	3174	services;
3175	3175	(2) the delivery terms;
3176	3176	(3) indicators of probable vendor performance under
3177	3177	the contract, including:
3178	3178	(A) past vendor performance;
3179	3179	(B) the vendor's financial resources and ability
3180	3180	to perform;
3181	3181	(C) the vendor's experience or demonstrated
3182	3182	capability and responsibility; and
3183	3183	(D) the vendor's ability to provide reliable
3184	3184	maintenance agreements and support;
3185	3185	(4) the cost of any employee training associated with
3186	3186	a purchase; and
3187	3187	(5) other factors relevant to determining the best
3188	3188	value for the corporation in the context of a particular purchase.
3189	3189	Sec. 80.013. BOARD MEMBER COMPENSATION. Board members
3190	3190	serve without compensation but are entitled to reimbursement for
3191	3191	reasonable and necessary expenses incurred in the discharge of
3192	3192	their duties.
3193	3193	Sec. 80.014. DISCONTINUATION OF PROGRAM AND CORPORATION AND
3194	3194	DISPOSITION OF FUNDS ON DISCONTINUANCE. (a) On the determination
3195	3195	by the corporation that the Asian citrus psyllid suppression
3196	3196	program has been completed in all pest management zones established
3197	3197	under this chapter, the corporation shall provide notice of the
3198	3198	completion to the commissioner along with a request for
3199	3199	discontinuance of the control and suppression program and
3200	3200	collection of the assessment. Any request under this subsection
3201	3201	must include documentation supporting the fact that the Asian
3202	3202	citrus psyllid is no longer a threat to the state's citrus industry
3203	3203	and a plan for discontinuance of the program and assessment.
3204	3204	(b) The commissioner shall determine whether or not the
3205	3205	further suppression of the Asian citrus psyllid is necessary in the
3206	3206	pest management zones and approve or disapprove discontinuance of
3207	3207	the corporation and the plan for dissolution.
3208	3208	(c) On completion of the dissolution, the corporation shall
3209	3209	file a final report with the commissioner, including a financial
3210	3210	report, and submit all remaining funds into the trust of the
3211	3211	commissioner. Final books of the corporation shall be filed with
3212	3212	the commissioner and are subject to audit by the department.
3213	3213	(d) The commissioner shall pay from the corporation's
3214	3214	remaining funds all of the corporation's outstanding obligations.
3215	3215	(e) Funds remaining after payment under Subsection (d)
3216	3216	shall be returned to contributing citrus producers on a pro rata
3217	3217	basis.
3218	3218	(f) If 30 percent or more of the citrus producers eligible
3219	3219	to vote within a zone participating in the program present to the
3220	3220	commissioner a petition calling for a referendum of the qualified
3221	3221	voters on the proposition of discontinuing the program, the
3222	3222	commissioner shall conduct a referendum for that purpose.
3223	3223	(g) The commissioner shall give notice of the referendum,
3224	3224	the referendum shall be conducted, and the results shall be
3225	3225	declared in the manner provided by law for the original referendum
3226	3226	and election, with any necessary exceptions provided by rule of the
3227	3227	commissioner.
3228	3228	(h) The commissioner shall conduct the referendum before
3229	3229	the 90th day after the date the petition was filed, except that a
3230	3230	referendum may not be held before the second anniversary of any
3231	3231	other referendum in the pest management zone pertaining to
3232	3232	establishing or discontinuing the pest management zone.
3233	3233	(i) Approval of the proposition requires the same vote as
3234	3234	required in a referendum under Section 80.016(g). If the
3235	3235	proposition is approved, the suppression program is abolished and
3236	3236	the pest management zone ceases to exist on payment of all debts of
3237	3237	the pest management zone.
3238	3238	Sec. 80.015. ASSESSMENT REFERENDA. (a) The commissioner
3239	3239	shall propose the assessment needed in each pest management zone to
3240	3240	ensure the stability of the citrus industry by suppressing the
3241	3241	public nuisance caused by the Asian citrus psyllid.
3242	3242	(b) The commissioner shall propose in a referendum the:
3243	3243	(1) maximum assessment to be paid by citrus producers
3244	3244	having production in the pest management zone; and
3245	3245	(2) time for which the assessment will be made.
3246	3246	(c) With the commissioner's approval, the corporation may
3247	3247	make an assessment in a pest management zone at a level less than
3248	3248	the assessment approved by the referendum.
3249	3249	(d) The commissioner shall conduct an assessment referendum
3250	3250	under the procedures provided by Section 80.016.
3251	3251	(e) If an assessment referendum is approved, the
3252	3252	corporation may collect the assessment.
3253	3253	(f) An assessment levied on citrus producers in a pest
3254	3254	management zone may be applied only to:
3255	3255	(1) pest control in that zone;
3256	3256	(2) the corporation's operating costs, including
3257	3257	payments on debt incurred for a corporation activity, except that
3258	3258	the funds of one zone may not be used to pay another zone's bank
3259	3259	loans or debts; and
3260	3260	(3) the conducting of other programs consistent with
3261	3261	the declaration of policy stated in Section 80.001.
3262	3262	(g) The assessment shall be adequate and necessary to
3263	3263	achieve the goals of this chapter. The amount of the assessment
3264	3264	shall be determined by criteria established by the commissioner,
3265	3265	including:
3266	3266	(1) the extent of infestation;
3267	3267	(2) the amount of acreage planted;
3268	3268	(3) historical efforts to suppress;
3269	3269	(4) the growing season;
3270	3270	(5) epidemiology;
3271	3271	(6) historical weather conditions; and
3272	3272	(7) the costs and financing of the program.
3273	3273	(h) The commissioner shall give notice of and hold a public
3274	3274	hearing in the pest management zone regarding the proposed
3275	3275	assessment referendum. Before the referendum, the commissioner
3276	3276	shall review and approve:
3277	3277	(1) the amount of the assessment;
3278	3278	(2) the basis for the assessment;
3279	3279	(3) the time for payment of the assessment;
3280	3280	(4) the method of allocation of the assessment among
3281	3281	citrus producers;
3282	3282	(5) the restructuring and repayment schedule for any
3283	3283	preexisting debt; and
3284	3284	(6) the amount of debt to be incurred in the pest
3285	3285	management zone.
3286	3286	(i) The commissioner shall on a zone-by-zone basis set the
3287	3287	date on which assessments are due and payable.
3288	3288	(j) Each year, the commissioner shall review and approve the
3289	3289	corporation's operating budget.
3290	3290	(k) The corporation shall prepare and mail billing
3291	3291	statements to each citrus producer subject to the assessment that
3292	3292	state the amount due and the due date. The assessments shall be
3293	3293	sent to the corporation.
3294	3294	Sec. 80.016. CONDUCT OF BOARD ELECTIONS AND REFERENDA;
3295	3295	BALLOTING. (a) The commissioner shall conduct a referendum or
3296	3296	board election authorized under this chapter.
3297	3297	(b) The corporation shall bear all expenses incurred in
3298	3298	conducting a referendum or board election.
3299	3299	(c) The commissioner shall adopt rules for voting in board
3300	3300	elections and referenda to establish pest management zones. Rules
3301	3301	adopted under this subsection must include provisions for
3302	3302	determining:
3303	3303	(1) who is a citrus producer eligible to vote in an
3304	3304	election or referendum;
3305	3305	(2) whether a board member is elected by a plurality or
3306	3306	a majority of the votes cast; and
3307	3307	(3) the area from which each board member is elected.
3308	3308	(d) A citrus producer having citrus production in a proposed
3309	3309	or established pest management zone is entitled to:
3310	3310	(1) vote in a referendum concerning the pest
3311	3311	management zone; and
3312	3312	(2) elect board members to represent the pest
3313	3313	management zone.
3314	3314	(e) An eligible citrus producer may vote only once in a
3315	3315	referendum or board election.
3316	3316	(f) Ballots in a referendum or board election shall be
3317	3317	mailed directly to a central location, as determined by the
3318	3318	commissioner. A citrus producer eligible to vote in a referendum or
3319	3319	board election who has not received a ballot from the commissioner,
3320	3320	corporation, or another source shall be offered the option of
3321	3321	requesting a ballot by mail or obtaining a ballot at the office of
3322	3322	the Texas AgriLife Extension Service or a government office
3323	3323	distributing ballots in a county in the proposed or established
3324	3324	zone in which the referendum or board election is conducted.
3325	3325	(g) A referendum is approved if:
3326	3326	(1) at least two-thirds of those voting vote in favor
3327	3327	of the referendum; or
3328	3328	(2) those voting in favor of the referendum cultivate
3329	3329	more than 50 percent, as determined by the commissioner, of the
3330	3330	citrus acreage in the relevant pest management zone.
3331	3331	(h) If a referendum under this chapter is not approved, the
3332	3332	commissioner may conduct another referendum. A referendum under
3333	3333	this subsection may not be held before the first anniversary of the
3334	3334	date on which the previous referendum on the same issue was held.
3335	3335	(i) A public hearing regarding the proposed suppression
3336	3336	program, including information regarding regulations to be
3337	3337	promulgated by the commissioner, may be held by the commissioner in
3338	3338	each of several locations in each Asian citrus psyllid pest
3339	3339	management zone.
3340	3340	(j) Individual voter information, including an individual's
3341	3341	vote in a referendum or board election conducted under this
3342	3342	section, is confidential and is not subject to disclosure under
3343	3343	Chapter 552, Government Code.
3344	3344	Sec. 80.017. PAYMENT OF ASSESSMENTS; ASSESSMENT LIENS.
3345	3345	(a) A citrus producer who fails to pay an assessment levied under
3346	3346	this chapter when due may be subject, after reasonable notice and
3347	3347	opportunity for hearing, to a penalty set by the commissioner. In
3348	3348	determining the amount of the penalty to be assessed, the
3349	3349	commissioner shall consider:
3350	3350	(1) the seriousness of the violation, including the
3351	3351	nature, circumstances, and extent of the violation;
3352	3352	(2) the history of previous violations;
3353	3353	(3) the amount necessary to deter future violations;
3354	3354	(4) the economic situation of the citrus producer; and
3355	3355	(5) any other matter that justice may require.
3356	3356	(b) The corporation may develop a compliance certificate
3357	3357	program to manage the payment and collection of an assessment
3358	3358	levied under this chapter. Under the program the corporation,
3359	3359	subject to department rules, may issue a compliance certificate for
3360	3360	citrus for which an assessment has been paid.
3361	3361	(c) In addition to any other remedies for the collection of
3362	3362	assessments and penalties, the commissioner may adopt rules
3363	3363	relating to the compliance certificate program for suppression
3364	3364	assessments. The rules may include:
3365	3365	(1) provisions establishing and relating to the
3366	3366	obligations of growers, packers, and buyers in due course of citrus
3367	3367	produced in active pest management zones to ensure that assessments
3368	3368	are paid within a prescribed time period;
3369	3369	(2) provisions allowing incentives in the form of
3370	3370	discounted assessments for growers who pay assessments within a
3371	3371	prescribed time period;
3372	3372	(3) provisions establishing penalties and interest
3373	3373	against growers who pay assessments after a prescribed time period;
3374	3374	and
3375	3375	(4) other provisions the commissioner determines are
3376	3376	proper.
3377	3377	(d) In addition to any other remedies for the collection of
3378	3378	assessments and penalties, an assessment lien in favor of the
3379	3379	corporation attaches and is perfected 60 days after the date the
3380	3380	corporation mails notice of the assessment on citrus produced and
3381	3381	harvested that year from the acreage that is subject to the
3382	3382	assessment that is due and unpaid. An assessment lien is not an
3383	3383	agricultural lien for the purposes of Chapter 9, Business &
3384	3384	Commerce Code, and is not subject to the provisions of that chapter.
3385	3385	An assessment lien is subject to and preempted by the Food Security
3386	3386	Act of 1985 (7 U.S.C. Section 1631 et seq.) and shall be treated
3387	3387	under that Act in the same manner as a security interest created by
3388	3388	the seller. A buyer of citrus takes free of the assessment lien if
3389	3389	the buyer:
3390	3390	(1) receives a compliance certificate issued by the
3391	3391	corporation when the buyer purchases the citrus that certifies that
3392	3392	the assessment has been paid to the corporation;
3393	3393	(2) pays for the citrus by a check on which the
3394	3394	department is named as a joint payee;
3395	3395	(3) does not receive notice of the assessment lien as
3396	3396	required by the Food Security Act of 1985 (7 U.S.C. Section 1631 et
3397	3397	seq.); or
3398	3398	(4) buys the citrus from a person other than the
3399	3399	producer of the citrus.
3400	3400	(e) The corporation may assign, with the approval of the
3401	3401	commissioner, assessments or liens in favor of the corporation as
3402	3402	collateral for a loan to the corporation only if the proceeds of the
3403	3403	loan are designated for use in the pest management zone from which
3404	3404	the assessments or liens originated.
3405	3405	(f) If the department believes that a violation of this
3406	3406	section or a rule adopted under this section has occurred, the
3407	3407	department may investigate and, during normal business hours, audit
3408	3408	and inspect the records of the person who is the subject of the
3409	3409	investigation.
3410	3410	Sec. 80.018. EXEMPTION FROM ASSESSMENT PENALTIES. (a) The
3411	3411	commissioner by rule shall adopt criteria to exempt from payment of
3412	3412	an assessment penalty under Section 80.017 a citrus producer for
3413	3413	whom payment would impose an undue financial burden.
3414	3414	(b) A citrus producer is not eligible for an exemption under
3415	3415	this section for a year in which the amount computed by subtracting
3416	3416	the assessments and penalties due under this chapter from the
3417	3417	citrus producer's net income subject to federal income taxation in
3418	3418	the previous year is greater than $15,000.
3419	3419	(c) A citrus producer who applies for an exemption under
3420	3420	this section must use a form prescribed by the commissioner. A
3421	3421	citrus producer must file a separate application form for each year
3422	3422	for which the citrus producer claims an exemption.
3423	3423	(d) The commissioner may establish a payment plan for a
3424	3424	citrus producer applying for an exemption under this section.
3425	3425	(e) The commissioner shall promptly notify an applicant of
3426	3426	the determination regarding the applicant's request for an
3427	3427	exemption.
3428	3428	(f) If an exemption under this section is denied,
3429	3429	assessments and penalties for the year for which the application is
3430	3430	made are due on the later of:
3431	3431	(1) the date on which they would be due in the absence
3432	3432	of an application for exemption; or
3433	3433	(2) 30 days after the date the applicant receives
3434	3434	notice of the denial.
3435	3435	(g) In addition to the authority provided under Subsections
3436	3436	(a)-(f), the commissioner may reduce or waive an assessment penalty
3437	3437	as appropriate and necessary.
3438	3438	Sec. 80.019. ENTRY OF PREMISES; SUPPRESSION ACTIVITIES;
3439	3439	INSPECTIONS. The department, the corporation, or a designated
3440	3440	representative of either entity may enter citrus groves or other
3441	3441	premises to carry out the purposes of this chapter, which include
3442	3442	the treatment and monitoring of growing citrus or other host
3443	3443	plants. The department, the corporation, or a designated
3444	3444	representative of either entity may inspect groves or premises in
3445	3445	this state for the purpose of determining whether the property is
3446	3446	infested with the Asian citrus psyllid or citrus greening. An
3447	3447	inspection must be conducted during reasonable daylight hours. The
3448	3448	department shall give notice by publication of the planned schedule
3449	3449	of dates for entry by the department, the corporation, or a
3450	3450	designated representative of either entity, to the owner or
3451	3451	occupant of the groves or premises to carry out the purposes of this
3452	3452	chapter, including treatment, monitoring, or inspection functions.
3453	3453	The department shall publish notice of the planned schedule to
3454	3454	enter the groves or premises in a newspaper of general circulation
3455	3455	in the pest management zone not less than once a week for two weeks
3456	3456	immediately before the scheduled dates of entry. In addition to the
3457	3457	notice published by the department, the corporation shall post
3458	3458	notice of the planned schedule to enter groves or premises to carry
3459	3459	out the purposes of this chapter at the county courthouse of each
3460	3460	county in the pest management zone not later than the 15th day
3461	3461	before the planned dates of entry.
3462	3462	Sec. 80.020. AUTHORITY TO PROHIBIT PLANTING OF CITRUS AND
3463	3463	REQUIRE PARTICIPATION IN SUPPRESSION PROGRAM. (a) The
3464	3464	commissioner may adopt reasonable rules regarding areas where
3465	3465	citrus may not be planted in a pest management zone if there is
3466	3466	reason to believe planting will jeopardize the success of the
3467	3467	program or present a hazard to public health or safety.
3468	3468	(b) The commissioner may adopt rules requiring all growers
3469	3469	of citrus in a pest management zone to participate in an Asian
3470	3470	citrus psyllid suppression program and growers of commercial citrus
3471	3471	to participate in pest and disease management programs that include
3472	3472	cost sharing as required by the rules.
3473	3473	(c) Notice of a prohibition or requirement shall be given by
3474	3474	publication for one day each week for three successive weeks in a
3475	3475	newspaper having general circulation in the affected area.
3476	3476	(d) The commissioner may adopt a reasonable schedule of
3477	3477	penalty fees to be assessed against growers in a designated pest
3478	3478	management zone who do not meet the requirements of the rules issued
3479	3479	by the commissioner relating to reporting of acreage and
3480	3480	participation in cost sharing. A penalty fee may not exceed $50 per
3481	3481	acre.
3482	3482	Sec. 80.021. AUTHORITY FOR DESTRUCTION OR TREATMENT OF
3483	3483	CITRUS IN PEST MANAGEMENT ZONES; COMPENSATION PAYABLE. The
3484	3484	department may destroy or treat, and establish procedures for the
3485	3485	purchase and destruction of, citrus plants or hosts in pest
3486	3486	management zones if the department determines the action is
3487	3487	necessary to carry out the purposes of this chapter. The department
3488	3488	is not liable to the owner or lessee for the destruction of or
3489	3489	injury to any citrus that was planted in a pest management zone
3490	3490	after the date notice is published as required by this chapter. The
3491	3491	corporation is liable for the destruction of citrus if the citrus
3492	3492	was planted in a pest management zone before the date that notice is
3493	3493	published.
3494	3494	Sec. 80.022. AUTHORITY TO ADOPT RULES. (a) The
3495	3495	commissioner shall adopt rules to protect individuals, livestock,
3496	3496	wildlife, and honeybee colonies on any premises in a pest
3497	3497	management zone on which citrus plants are being grown that have
3498	3498	been or are being treated to control or suppress the Asian citrus
3499	3499	psyllid and citrus greening.
3500	3500	(b) Rules adopted under this section shall establish the
3501	3501	criteria by which the corporation develops its procedures and
3502	3502	methods of treatment, which shall:
3503	3503	(1) establish a methodology for determining when Asian
3504	3504	citrus psyllid population levels have reached economic
3505	3505	significance or when citrus greening is present;
3506	3506	(2) establish an effective treatment regimen that
3507	3507	seeks to provide the least possible risk to workers, the public, and
3508	3508	the environment;
3509	3509	(3) minimize the effects of the use of pesticides on
3510	3510	long-term control methods, including but not limited to the effect
3511	3511	a particular pesticide may have on biological controls;
3512	3512	(4) establish methods for monitoring Asian citrus
3513	3513	psyllids, citrus greening, and secondary pests;
3514	3514	(5) establish methods for verifying pesticide use
3515	3515	reduction; and
3516	3516	(6) consider the acute and chronic toxicity of
3517	3517	particular pesticides and the quantity of particular pesticides
3518	3518	needed. Pest management zone treatment plans may take into account
3519	3519	the potential for the use of smaller quantities of more toxic
3520	3520	substances to result in fewer health and environmental risks than
3521	3521	larger quantities of less toxic substances.
3522	3522	(c) The commissioner may adopt other reasonable rules
3523	3523	necessary to carry out the purposes of this chapter. All rules
3524	3524	issued under this chapter must be adopted and published in
3525	3525	accordance with the laws of this state.
3526	3526	(d) An advisory committee may be established to assist the
3527	3527	commissioner in the development of rules under this section. The
3528	3528	advisory committee may be composed of:
3529	3529	(1) three citrus producers from the commercial citrus
3530	3530	growing area of the state, appointed by the commissioner;
3531	3531	(2) three entomologists with knowledge of the
3532	3532	principles of integrated pest management, at least one of whom has
3533	3533	special knowledge of nonchemical or biological pest control,
3534	3534	appointed by the commissioner;
3535	3535	(3) two individuals with experience representing the
3536	3536	general interests of the environment, appointed by the chair of the
3537	3537	Texas Commission on Environmental Quality;
3538	3538	(4) an environmental engineer with expert knowledge of
3539	3539	ground and surface water protection from contamination, appointed
3540	3540	by the chair of the Texas Commission on Environmental Quality; and
3541	3541	(5) a toxicologist, appointed by the commissioner of
3542	3542	state health services.
3543	3543	Sec. 80.023. REPORTS. Each person in an active pest
3544	3544	management zone growing citrus in this state shall furnish to the
3545	3545	corporation on forms supplied by the corporation information that
3546	3546	the corporation requires concerning the size and location of all
3547	3547	commercial citrus orchards and of noncommercial citrus grown for
3548	3548	ornamental or other purposes. The corporation may provide an
3549	3549	incentive for early and timely reporting.
3550	3550	Sec. 80.024. DOCUMENTING REGULATED ARTICLES. To implement
3551	3551	this chapter, the department may issue or authorize issuance of:
3552	3552	(1) a certificate that indicates that a regulated
3553	3553	article is not infested with the Asian citrus psyllid; and
3554	3554	(2) a permit that provides for the movement of a
3555	3555	regulated article to a restricted destination for limited handling,
3556	3556	use, or processing.
3557	3557	Sec. 80.025. COOPERATIVE PROGRAMS AUTHORIZED. (a) The
3558	3558	corporation may carry out programs to destroy and manage the Asian
3559	3559	citrus psyllid and citrus greening in this state by cooperating
3560	3560	through written agreements, as approved by the commissioner, with:
3561	3561	(1) an agency of the federal government;
3562	3562	(2) a state agency;
3563	3563	(3) an appropriate agency of a foreign country
3564	3564	contiguous to the affected area to the extent allowed by federal
3565	3565	law;
3566	3566	(4) a person who is engaged in growing, processing,
3567	3567	marketing, or handling citrus;
3568	3568	(5) a group of persons in this state involved in
3569	3569	similar programs to carry out the purposes of this chapter; or
3570	3570	(6) an appropriate state agency of another state
3571	3571	contiguous to the affected area, to the extent allowed by federal
3572	3572	law, the law of the contiguous state, and the law of this state.
3573	3573	(b) An agreement entered into under this section may provide
3574	3574	for cost sharing and for division of duties and responsibilities
3575	3575	under this chapter and may include other provisions to carry out the
3576	3576	purposes of this chapter.
3577	3577	Sec. 80.026. ORGANIC CITRUS PRODUCERS. (a) The
3578	3578	commissioner shall develop rules and procedures to:
3579	3579	(1) protect the eligibility of organic citrus
3580	3580	producers to be certified by the commissioner;
3581	3581	(2) ensure that organic and transitional
3582	3582	certifications by the commissioner continue to meet national
3583	3583	certification standards in order for organic citrus to maintain
3584	3584	international marketability; and
3585	3585	(3) in all events maintain the effectiveness of the
3586	3586	Asian citrus psyllid suppression program and citrus greening
3587	3587	management administered under this chapter.
3588	3588	(b) The board may not treat or require treatment of organic
3589	3589	citrus groves with chemicals that are not approved for use on
3590	3590	certified organic citrus. Rules adopted under Subsection (a) may
3591	3591	provide indemnity for the organic citrus producers for reasonable
3592	3592	losses that result from a prohibition of production of organic
3593	3593	citrus or from any requirement of destruction of organic citrus.
3594	3594	Sec. 80.027. PENALTIES. (a) A person who violates this
3595	3595	chapter or a rule adopted under this chapter or who alters, forges,
3596	3596	counterfeits, or uses without authority a certificate, permit, or
3597	3597	other document issued under this chapter or under a rule adopted
3598	3598	under this chapter commits an offense.
3599	3599	(b) An offense under this section is a Class C misdemeanor.
3600	3600	(c) If the commissioner determines that a violation of this
3601	3601	chapter or a rule adopted under this chapter has occurred, the
3602	3602	commissioner may request that the attorney general or the county or
3603	3603	district attorney of the county in which the alleged violation
3604	3604	occurred or is occurring file suit for civil, injunctive, or other
3605	3605	appropriate relief.
3606	3606	Sec. 80.028. SUNSET PROVISION. (a) The board of directors
3607	3607	of the official citrus producers' pest and disease management
3608	3608	corporation is subject to Chapter 325, Government Code (Texas
3609	3609	Sunset Act). Unless continued in existence as provided by that
3610	3610	chapter, the board is abolished and this chapter expires September
3611	3611	1, 2021.
3612	3612	(b) The commissioner may order the dissolution of the
3613	3613	corporation at any time the commissioner determines that the
3614	3614	purposes of this chapter have been fulfilled or that the
3615	3615	corporation is inoperative and abandoned. Dissolution shall be
3616	3616	conducted in accordance with Section 80.014.
3617	3617	(c) If the corporation is abolished or the suppression
3618	3618	program discontinued for any reason, assessments approved, levied,
3619	3619	or otherwise collectible on the date of abolishment remain valid as
3620	3620	necessary to pay the financial obligations of the corporation.
3621	3621	Sec. 80.029. ANNUAL REPORT. The board shall issue to the
3622	3622	commissioner and the appropriate oversight committee in the house
3623	3623	of representatives an annual report detailing its efforts to carry
3624	3624	out the purposes of this chapter.
3625	3625	Sec. 80.030. EXEMPTION FROM TAXATION. All payments,
3626	3626	contributions, funds, and assessments received or held by the
3627	3627	corporation under this chapter are exempt from state or local
3628	3628	taxation, levies, sales, and any other process and are
3629	3629	unassignable.
3630	3630	Sec. 80.031. USE OF BIO-INTENSIVE CONTROLS. (a) The
3631	3631	commissioner shall develop and adopt rules to allow a citrus
3632	3632	producer in a suppression program to use biological, botanical, or
3633	3633	other nonsynthetic pest control methods. In developing rules, the
3634	3634	commissioner shall consider:
3635	3635	(1) scientific studies and field trials of the
3636	3636	effectiveness of a proposed alternative control method;
3637	3637	(2) the feasibility of using a proposed alternative
3638	3638	control technique within a particular region;
3639	3639	(3) the degree of monitoring necessary to establish
3640	3640	the success of the use of a proposed alternative control; and
3641	3641	(4) methods to prevent the use of substances that
3642	3642	would impede the use of alternative controls and the promotion of
3643	3643	beneficial insect populations.
3644	3644	(b) A citrus producer that chooses to use an alternative
3645	3645	method of control as provided in Subsection (a) shall notify the
3646	3646	board. The board and the citrus producer shall coordinate their
3647	3647	actions to prevent the use of substances that would impede the use
3648	3648	of alternative controls and the promotion of beneficial insect
3649	3649	populations.
3650	3650	(c) The citrus producer shall pay any additional cost of
3651	3651	bio-intensive control in addition to any assessment.
3652	3652	Sec. 80.032. VENUE. Venue for an action arising out of this
3653	3653	chapter in which the corporation is a party is in Travis County.
3654	3654	ARTICLE 11. EFFECTIVE DATE
3655	3655	SECTION 11.01. This Act takes effect September 1, 2009.
3656	3656	______________________________ ______________________________
3657	3657	President of the Senate Speaker of the House
3658	3658	I hereby certify that S.B. No. 1016 passed the Senate on
3659	3659	April 16, 2009, by the following vote: Yeas 31, Nays 0; and that
3660	3660	the Senate concurred in House amendments on May 25, 2009, by the
3661	3661	following vote: Yeas 31, Nays 0.
3662	3662	______________________________
3663	3663	Secretary of the Senate
3664	3664	I hereby certify that S.B. No. 1016 passed the House, with
3665	3665	amendments, on May 21, 2009, by the following vote: Yeas 142,
3666	3666	Nays 0, two present not voting.
3667	3667	______________________________
3668	3668	Chief Clerk of the House
3669	3669	Approved:
3670	3670	______________________________
3671	3671	Date
3672	3672	______________________________
3673	3673	Governor
3674	3674
3675	3675	Provision Amount of Penalty
3676	3676
3677	3677	Chapter 41 not more than $5,000 [$1,000]
3678	3678
3679	3679	Chapters 13, 14A, 18, 46, 61, 94,
3680	3680
3681	3681	95, 101, 102, 103, 121, 125, 132,
3682	3682
3683	3683	and 134 not more than $5,000 [$500]
3684	3684
3685	3685	Subchapter B, Chapter 71
3686	3686
3687	3687	Chapter 19
3688	3688
3689	3689	Chapter 76 not more than $5,000 [$2,000]
3690	3690
3691	3691	Subchapters A and C, Chapter 71
3692	3692
3693	3693	Chapters 72, 73, and 74 not more than $5,000
3694	3694
3695	3695	Chapter 14 not more than $10,000
3696	3696
3697	3697	Chapter 1951, Occupations Code not more than $5,000
3698	3698
3699	3699	Chapter 153, Natural Resources
3700	3700
3701	3701	Code not more than $5,000.