Texas 2015 - 84th Regular

Texas Senate Bill SB1099 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	By: Estes, et al. S.B. No. 1099
2		-	(Phillips)
	1	+	S.B. No. 1099
3	2
4	3
5		-	A BILL TO BE ENTITLED
6	4		AN ACT
7	5		relating to the operation and functions of the Texas Grain Producer
8	6		Indemnity Board.
9	7		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	8		SECTION 1. Section 41.102, Agriculture Code, is amended to
11	9		read as follows:
12	10		Sec. 41.102. SUSPENSION OR REVOCATION OF LICENSE. In
13	11		addition to other remedies provided by law, a violation of any
14	12		provision of Subchapter B, C, D, E, or I [Subchapters B-E] of this
15	13		chapter is grounds for suspension or revocation of any license or
16	14		permit issued by the commissioner. The suspension or revocation
17	15		shall be conducted in accordance with the procedures provided by
18	16		law for suspension or revocation on the basis of other grounds.
19	17		SECTION 2. Section 41.201, Agriculture Code, is amended by
20	18		adding Subdivisions (3-a) and (8) to read as follows:
21	19		(3-a) "Fund" means the grain producer indemnity fund.
22	20		(8) "Reinsurance" means an insurance product
23	21		purchased by the board to reduce the financial risk and capital
24	22		balance associated with the function of the board.
25	23		SECTION 3. Subchapter I, Chapter 41, Agriculture Code, is
26	24		amended by adding Section 41.2035 to read as follows:
27	25		Sec. 41.2035. FUND. (a) The grain producer indemnity fund
28	26		is a trust fund outside the state treasury to be held and
29	27		administered by the board, without appropriation, for the payment
30	28		of claims against a grain buyer who has experienced a financial
31	29		failure.
32	30		(b) The board shall deposit assessments remitted under
33	31		Section 41.206 in the fund.
34	32		(c) Interest or other income from investment of the fund
35	33		shall be deposited to the credit of the fund.
36	34		(d) As a part of the annual budget proposal procedure
37	35		described by Section 41.059, the board shall set a minimum balance
38	36		for the fund to be held in reserve to pay for administrative costs
39	37		in the event that claims against the fund exceed the total balance
40	38		of the fund. The board shall post the minimum balance set under
41	39		this subsection on the board's Internet website.
42	40		SECTION 4. The heading to Section 41.205, Agriculture Code,
43	41		is amended to read as follows:
44	42		Sec. 41.205. POWERS AND DUTIES OF BOARD.
45	43		SECTION 5. Section 41.205, Agriculture Code, is amended by
46	44		adding Subsection (f) to read as follows:
47	45		(f) The board may borrow money, with the approval of the
48	46		commissioner, as necessary to implement this subchapter.
49	47		SECTION 6. Section 41.206(a), Agriculture Code, is amended
50	48		to read as follows:
51	49		(a) Except as provided by this subsection, a grain buyer
52	50		shall collect assessments in the manner prescribed for processors
53	51		under Section 41.081. The assessment shall be collected at the
54	52		first point of sale. Section 41.081(b) does not apply to the
55	53		collection of assessments under this section.
56	54		SECTION 7. Sections 41.209(b) and (f), Agriculture Code,
57	55		are amended to read as follows:
58	56		(b) In determining the amount due to a grain producer under
59	57		Subsection (a) for a loss of grain, the board may award the grain
60	58		producer 85 [not more than 90] percent of:
61	59		(1) the value of the grain on the claim initiation
62	60		date, as determined by board rule, if the grain has not been sold;
63	61		or
64	62		(2) the contract price of the grain, if the grain has
65	63		been sold.
66	64		(f) The board may deny a grain producer's claim in whole or
67	65		in part:
68	66		(1) if the grain producer has failed to pay
69	67		assessments [for the current growing season] under Section 41.206;
70	68		(2) if the applicable grain buyer has a history of
71	69		failure to collect assessments as required by Section 41.206;
72	70		(3) if the documentation submitted by the grain
73	71		producer in support of the grain producer's claim is incomplete,
74	72		false, or fraudulent;
75	73		(4) to prevent the grain producer from recovering from
76	74		multiple payments an amount greater than the amount the grain
77	75		producer lost due to the financial failure of a grain buyer or to
78	76		the grain buyer's refusal, failure, or inability to deliver to the
79	77		grain producer grain held by the grain buyer as a bailment,
80	78		including:
81	79		(A) payments made by the board;
82	80		(B) payments made from a grain warehouse
83	81		operator's bond;
84	82		(C) payments ordered by a bankruptcy court; or
85	83		(D) a recovery under a state or federal crop
86	84		insurance policy or program; or
87	85		(5) if documentation submitted by the grain producer
88	86		demonstrates that deferred payment on sold grain was beyond normal
89	87		and customary practices.
90	88		SECTION 8. Section 41.210, Agriculture Code, is amended to
91	89		read as follows:
92	90		Sec. 41.210. REIMBURSEMENT OF BOARD BY GRAIN BUYER;
93	91		SUBROGATION OF RIGHTS; REINSURANCE. (a) If the board pays a claim
94	92		against a grain buyer, the board is subrogated to the extent of the
95	93		amount paid to a grain producer by the board to all rights of the
96	94		grain producer against[:
97	95		[(1)] the grain buyer[, to the extent of the amount
98	96		paid to a grain producer by the board;] and
99	97		[(2)] any other entity from which the grain producer
100	98		is entitled to a payment for the loss giving rise to the grain
101	99		producer's claim under this subchapter.
102	100		(b) Funds recovered under this section shall be deposited
103	101		with the depository bank selected by the board under Section
104	102		41.060.
105	103		(c) The board may purchase reinsurance policies to mitigate
106	104		the board's financial risks.
107	105		SECTION 9. Section 41.211, Agriculture Code, is amended to
108	106		read as follows:
109	107		Sec. 41.211. RULES. Except as provided by Section 41.212,
110	108		the board may adopt rules as necessary to implement this
111	109		subchapter, including rules relating to:
112	110		(1) notice and collection of assessments;
113	111		(2) the orderly distribution of refunds;
114	112		(3) the management of the board's budget;
115	113		(4) the use of insurance and reinsurance products;
116	114		(5) [(3)] administration of the board's duties;
117	115		(6) [(4)] the statewide referendum conducted under
118	116		Section 41.212;
119	117		(7) [(5)] the selection of agents, designees, or
120	118		devices to carry out the intent of the board; and
121	119		(8) [(6)] guidelines for industry practices that do or
122	120		do not qualify for indemnification by the board.
123	121		SECTION 10. Section 41.212(e), Agriculture Code, is amended
124	122		to read as follows:
125	123		(e) A referendum is approved if a majority of votes cast are
126	124		in favor of the referendum [meets the requirements of Section
127	125		41.031].
128	126		SECTION 11. Subchapter I, Chapter 41, Agriculture Code, is
129	127		amended by adding Section 41.2145 to read as follows:
130	128		Sec. 41.2145. REFUND OF ASSESSMENTS. (a) A grain producer
131	129		who has paid an assessment under Section 41.206 may be eligible for
132	130		a refund from excess money in the indemnity fund as provided by this
133	131		section.
134	132		(b) As a part of the annual budget proposal procedure
135	133		described by Section 41.059, the board shall review the budget for
136	134		the next year and the board's current financial status. Based on
137	135		that review, the board shall determine whether funds are available
138	136		in excess of the minimum fund balance to issue refunds to grain
139	137		producers who paid an assessment under Section 41.206.
140	138		(c) The board shall adopt rules regarding the procedure for
141	139		determining the amount of a grain producer's refund and the timing,
142	140		method, and order of refund issuance.
143	141		SECTION 12. Subchapter I, Chapter 41, Agriculture Code, is
144	142		amended by adding Section 41.216 to read as follows:
145	143		Sec. 41.216. ADMINISTRATIVE REVIEW. (a) The board by rule
146	144		shall establish an administrative review process to informally
147	145		review and resolve claims arising from an action of the board under
148	146		this subchapter. The board shall adopt rules:
149	147		(1) designating which board actions are subject to
150	148		review under this section; and
151	149		(2) outlining available remedial actions.
152	150		(b) A person may appeal an administrative review decision
153	151		made by the board under Subsection (a) to the commissioner.
154	152		(c) A person may appeal a decision of the commissioner in
155	153		the manner provided for a contested case under Chapter 2001,
156	154		Government Code.
157	155		(d) This section does not waive this state's sovereign
158	156		immunity.
159	157		SECTION 13. Section 41.214, Agriculture Code, is repealed.
160	158		SECTION 14. (a) The change in law made by this Act to
161	159		Section 41.102, Agriculture Code, applies only to conduct that
162	160		occurs on or after the effective date of this Act. Conduct that
163	161		occurs before the effective date of this Act is governed by the law
164	162		in effect on the date the conduct occurs, and the former law is
165	163		continued in effect for that purpose.
166	164		(b) The repeal of Section 41.214, Agriculture Code, by this
167	165		Act applies only to an application for a refund submitted on or
168	166		after the effective date of this Act. An application for a refund
169	167		submitted before the effective date of this Act is governed by the
170	168		law in effect on the date the application was submitted, and the
171	169		former law is continued in effect for that purpose.
172	170		SECTION 15. This Act takes effect immediately if it
173	171		receives a vote of two-thirds of all the members elected to each
174	172		house, as provided by Section 39, Article III, Texas Constitution.
175	173		If this Act does not receive the vote necessary for immediate
176	174		effect, this Act takes effect September 1, 2015.
	175	+	______________________________ ______________________________
	176	+	President of the Senate Speaker of the House
	177	+	I hereby certify that S.B. No. 1099 passed the Senate on
	178	+	April 9, 2015, by the following vote: Yeas 31, Nays 0.
	179	+	______________________________
	180	+	Secretary of the Senate
	181	+	I hereby certify that S.B. No. 1099 passed the House on
	182	+	May 6, 2015, by the following vote: Yeas 141, Nays 5, two present
	183	+	not voting.
	184	+	______________________________
	185	+	Chief Clerk of the House
	186	+	Approved:
	187	+	______________________________
	188	+	Date
	189	+	______________________________
	190	+	Governor