81(R) SB 1016 - Enrolled version

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	S.B. No. 1016

AN ACT

relating to the continuation and functions of the Department of

Agriculture and the Prescribed Burning Board, the creation of the

Texas Bioenergy Policy Council and Texas Bioenergy Research

Committee, and the abolition of the Texas-Israel Exchange Fund

Board; providing penalties.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

ARTICLE 1. TEXAS AGRICULTURAL FINANCE AUTHORITY

SECTION 1.01. Subdivisions (1) and (2), Section 44.001,

Agriculture Code, are amended to read as follows:

(1) "Eligible lending institution" means a financial

institution that makes commercial loans, is either a depository of

state funds or an institution of the Farm Credit System

headquartered in this state, and agrees to participate in the

interest rate reduction [~~linked deposit~~] program and to provide

collateral equal to the amount of linked deposits placed with it.

(2) "Eligible borrower" means a person who proposes to

use the proceeds of a loan under this chapter in a manner that will

help accomplish the state's goal of fostering the creation and

expansion of enterprises based on agriculture in this state [~~is in~~

~~the business or entering the business of:~~

[~~(A)~~ ~~processing and marketing agricultural crops~~

~~in this state;~~

[~~(B)~~ ~~producing alternative agricultural crops in~~

~~this state;~~

[~~(C)~~ ~~producing agricultural crops in this state~~

~~the production of which has declined because of natural disasters;~~

[~~(D)~~ ~~producing agricultural crops in this state~~

~~using water conservation equipment for agricultural production~~

~~purposes; or~~

[~~(E)~~ ~~providing nonagricultural goods or services~~

~~that provide an economic benefit to a municipality or county in a~~

~~rural area~~].

SECTION 1.02. The heading to Section 44.007, Agriculture

Code, is amended to read as follows:

Sec. 44.007. INTEREST RATE REDUCTION [~~LINKED DEPOSIT~~]

PROGRAM.

SECTION 1.03. Subsections (a), (c), (d), (k), and (l),

Section 44.007, Agriculture Code, are amended to read as follows:

(a) The board shall establish an interest rate reduction [a

~~linked deposit~~] program to foster the creation and expansion of

enterprises based on agriculture in this state[:

[~~(1)~~ ~~encourage commercial lending for the enhanced~~

~~production, processing, and marketing of certain agricultural~~

~~crops;~~

[~~(2)~~ ~~encourage the development or expansion of~~

~~businesses in rural areas of this state; and~~

[~~(3)~~ ~~finance water conservation projects or equipment~~

~~for agricultural production purposes~~].

the interest rate reduction [~~linked deposit~~] program. [~~The rules~~

~~must include:~~

[~~(1)~~ ~~a list of the categories of crops customarily~~

~~grown in Texas, with consideration given to the Texas Agricultural~~

~~Statistics Service information available and relevant to this~~

~~determination;~~

[~~(2)~~ ~~a list of crops that are alternative agricultural~~

~~crops, with consideration given to the Texas Agricultural~~

~~Statistics Service information available and relevant to this~~

~~determination;~~

[~~(3)~~ ~~identification of criteria for a project eligible~~

~~for natural disaster assistance; and~~

[~~(4)~~ ~~identification of projects and types of equipment~~

~~considered as water conservation projects or equipment for~~

~~agricultural production purposes.~~]

(d) In order to participate in the interest rate reduction

[~~linked deposit~~] program, an eligible lending institution may

solicit loan applications from eligible borrowers.

(k) The board may adopt rules that create a procedure for

determining priorities for loans granted under this chapter. Each

rule adopted must state the policy objective of the rule. [~~The~~

~~policy objectives of the rules may include preferences to:~~

[~~(1)~~ ~~achieve adequate geographic distribution of~~

~~loans;~~

[~~(2) assist certain industries;~~

[~~(3)~~ ~~encourage certain practices including water~~

~~conservation; and~~

[~~(4)~~ ~~encourage value-added processing of agricultural~~

~~products.~~]

(l) A lending institution is not ineligible to participate

in the interest rate reduction [~~linked deposit~~] program solely

because a member of the board is also an officer, director, or

employee of the lending institution, provided that a board member

shall recuse himself or herself from any action taken by the board

on an application involving a lending institution by which the

board member is employed or for which the board member serves as an

officer or director.

SECTION 1.04. Subsections (a) and (b), Section 44.010,

Agriculture Code, are amended to read as follows:

(a) At any one time, not more than $30 million[~~, $10 million~~

~~of which may be used only to finance water conservation projects and~~

~~$5 million of which may be used only to finance the economic~~

~~development of businesses in rural areas,~~] may be placed in linked

deposits under this chapter.

(b) The maximum amount of a loan under this chapter [to

~~process and market Texas agricultural crops~~] is $500,000. [~~The~~

~~maximum amount of a loan under this chapter to produce alternative~~

~~agricultural crops in this state is $250,000. The maximum amount of~~

~~a loan under this chapter to finance water conservation projects or~~

~~equipment for agricultural production purposes is $250,000. The~~

~~maximum amount of a loan under this chapter to finance production of~~

~~a crop declared eligible for natural disaster relief, as defined by~~

~~board rule, is $250,000. The maximum amount of a loan under this~~

~~chapter to finance a business in a rural area is $250,000.~~]

SECTION 1.05. Section 58.012, Agriculture Code, is amended

by amending Subsections (a), (b), and (c) and adding Subsection (g)

to read as follows:

(a) The authority is governed by a board of directors

composed of the commissioner of agriculture, the director of the

Institute for International Agribusiness Studies at Prairie View

A&M University, and nine [~~seven~~] members appointed by the

commissioner [~~governor with the advice and consent of the senate~~].

Members of the board must be appointed in the numbers specified and

from the following categories:

(1) one person who is an elected or appointed official

of a municipality or county;

(2) four persons who are knowledgeable about

agricultural lending practices;

(3) one person who is a representative of agricultural

businesses; [~~and~~]

(4) one person who is a representative of agriculture

related entities, including rural chambers of commerce,

foundations, trade associations, institutions of higher education,

or other entities involved in agricultural matters; and

(5) two persons who represent young farmers and the

interests of young farmers.

(b) The appointed members of the board serve staggered terms

of two years, with the terms of four [~~three~~] members expiring on

January 1 of each even-numbered year and the terms of five [~~four~~]

members expiring on January 1 of each odd-numbered year.

board shall be filled by the commissioner [~~governor~~] for the

unexpired term.

(g) Notwithstanding Subsection (f), age may be considered

by the commissioner in making appointments under Subsection (a)(5).

SECTION 1.06. Subsection (a), Section 58.013, Agriculture

Code, is amended to read as follows:

(a) The commissioner [~~governor~~] shall designate a member of

the board as the chairman of the board to serve in that capacity at

the pleasure of the commissioner [~~governor~~]. The board shall elect

a vice-chairman biennially from its members and shall elect a

secretary, a treasurer, and other officers it considers necessary.

SECTION 1.07. Subsection (a), Section 58.0176, Agriculture

Code, is amended to read as follows:

(a) Before a member of the board may assume the member's

duties [~~and before the member may be confirmed by the senate~~], the

member must complete at least one course of the training program

established under this section.

SECTION 1.08. Subsections (c) and (d), Section 58.023,

Agriculture Code, are amended to read as follows:

participating in the authority's programs shall pay the costs of

applying for, participating in, and administering and servicing the

program, in amounts the board considers reasonable and necessary.

The board shall charge an administrative fee for guaranteeing a

loan under Subchapter E that may not be less than one percent of the

amount of the guaranteed loan. Any costs not paid by the eligible

agricultural businesses or lenders shall be paid from the funds of

the authority, including those funds established from bond

proceeds.

(d) The board by rule shall adopt an agreement to be used

between a lender and an approved applicant under which the

authority makes a payment from the Texas agricultural fund for the

purpose of providing a reduced interest rate on a loan guaranteed to

a borrower [~~under this subchapter~~]. The agreement must require the

borrower to use the proceeds of the loan for the purposes of the

program under which the payment is made. The board shall adopt

rules to implement this subsection.

SECTION 1.09. Subchapter D, Chapter 58, Agriculture Code,

is amended by adding Section 58.041 to read as follows:

Sec. 58.041. ISSUANCE OF DEBT BY TEXAS PUBLIC FINANCE

AUTHORITY. (a) In this section, "debt instrument" means a note,

debenture, bond, or other evidence of indebtedness.

(b) The Texas Public Finance Authority has the exclusive

authority to act on behalf of the authority in issuing debt

instruments authorized to be issued by the authority. A reference

in law to a debt instrument issued by the authority, in the context

of a debt instrument issued on or after September 1, 2009, means a

debt instrument issued by the Texas Public Finance Authority on

behalf of the authority.

pay all costs incurred by the Texas Public Finance Authority for

issuing debt instruments on behalf of the authority and associated

fees and expenses.

(d) When the board authorizes the issuance of debt

instruments to fund a loan, the authority shall notify the Texas

Public Finance Authority of the amount of the loan and the recipient

of the loan and request the Texas Public Finance Authority to issue

debt instruments in an amount necessary to fund the loan. The

authority and the Texas Public Finance Authority shall determine

the amount and time of a debt instrument issue to best provide funds

for one or multiple loans.

(e) The Texas Public Finance Authority, at the request of

the authority, may issue debt instruments to provide money to the

Texas agricultural fund.

(f) The Texas Public Finance Authority may sell debt

instruments in any manner it determines to be in the best interest

of the authority, except that it may not sell a debt instrument that

has not been approved by the attorney general and registered with

the comptroller.

(g) The board, in consultation with the Texas Public Finance

Authority, shall adopt rules containing criteria for evaluating the

creditworthiness of loan applicants and the financial feasibility

of projects to be funded with debt instruments issued by the Texas

Public Finance Authority on behalf of the authority.

(h) The Texas Public Finance Authority may enter into a

credit agreement for a debt instrument issued by the Texas Public

Finance Authority on behalf of the authority for a period and on

conditions approved by the Texas Public Finance Authority.

(i) This subsection applies only in relation to general

obligation debt instruments. To the extent other sources of

revenue available for payment of the authority's debts are

insufficient and in accordance with the Texas Constitution, general

revenue is to be appropriated to the Texas Public Finance Authority

in an amount determined by the Texas Public Finance Authority to be

necessary to pay the principal, premium if any, and interest on

general obligation debt instruments issued by the Texas Public

Finance Authority on behalf of the authority, and that amount shall

be specified in the biennial appropriations acts.

SECTION 1.10. The heading to Subchapter E, Chapter 58,

Agriculture Code, is amended to read as follows:

SUBCHAPTER E. AGRICULTURAL [~~YOUNG FARMER~~] LOAN GUARANTEE PROGRAM

SECTION 1.11. Subdivision (2), Section 58.051, Agriculture

Code, is amended to read as follows:

(2) "Eligible applicant" means a person applying for a

loan guarantee under this subchapter who[:

[~~(A)~~ ~~is at least 18 years of age but younger than~~

~~40 years of age; and~~

[~~(B)~~] complies with the application procedures

prescribed by this subchapter.

SECTION 1.12. The heading to Section 58.052, Agriculture

Code, is amended to read as follows:

Sec. 58.052. AGRICULTURAL [~~YOUNG FARMER~~] LOAN GUARANTEE

PROGRAM.

SECTION 1.13. Section 58.052, Agriculture Code, is amended

by amending Subsections (b), (c), and (e) and adding Subsection (f)

to read as follows:

(b) The board, either directly or through authority

delegated to the commissioner, may grant to an eligible applicant a

guarantee of a loan made by a commercial lender for the purposes

prescribed by this subchapter. The board by rule shall establish

tiered loan guarantee limits. To be eligible to be guaranteed under

this subchapter, a loan with a term of more than one year must have a

fixed interest rate [~~guarantee amount may not exceed the lesser of~~

~~$250,000 or 90 percent of the loan amount~~].

loans [~~guaranteed~~] under this subchapter may not exceed

three-fourths of [~~twice~~] the amount contained in the [~~young farmer~~

~~loan guarantee account within the~~] Texas agricultural fund.

(e) The board shall adopt an agreement, to be used between a

commercial lender and an approved eligible applicant, under which

the program provides a payment from money in the Texas agricultural

fund [~~young farmer loan guarantee account~~] for the purpose of

providing a reduced interest rate on a loan guaranteed to a borrower

under this subchapter. The board shall adopt rules to implement

this subsection. The maximum rate reduction under this subsection

per year for each borrower may [~~shall~~] not exceed three percentage

points or an amount that results in $10,000 in interest savings for

the borrower for the year.

(f) The board by rule shall establish a certified lender

program under which the board may certify commercial lenders to

participate in the agricultural loan guarantee program in order to

expedite the processing of loan guarantee applications by the

board.

SECTION 1.14. Section 58.056, Agriculture Code, is amended

to read as follows:

Sec. 58.056. MONEY FOR LOAN GUARANTEE PROGRAM. The

authority may accept gifts and grants of money from the federal

government, local governments, private corporations, or other

persons for use in the agricultural [~~young farmer~~] loan guarantee

program. The legislature may appropriate money for the program.

SECTION 1.15. Subsections (b) and (d), Section 58.057,

Agriculture Code, are transferred to Section 58.032, Agriculture

Code, relettered as Subsections (g) and (h) of that section, and

amended to read as follows:

(g) [~~(b)~~] The fund includes [~~account consists of funds and~~

~~transfers made to the account,~~] grants and donations made for the

purposes of the programs administered by the Texas Agricultural

Finance Authority [~~the young farmer loan guarantee program, income~~

~~earned on money in the account,~~] and any other money received under

this chapter [~~subchapter~~]. Notwithstanding Section 404.071,

Government Code, income and interest earned on money in the fund

[~~account~~] shall be deposited to the credit of the fund [~~account~~].

[~~At the end of each state fiscal year the authority shall transfer~~

~~to the general credit of the Texas agricultural fund any interest~~

~~earned on the account that remains after payment of any~~

~~administrative expenses of the program.~~] The fund [~~account~~] is

exempt from the application of Section 403.095, Government Code.

(h) [~~(d)~~] The board shall attempt to administer the fund in

a manner that makes private donations to the fund an eligible

itemized deduction for federal income taxation purposes.

SECTION 1.16. Chapter 58, Agriculture Code, is amended by

adding Subchapter F to read as follows:

SUBCHAPTER F. YOUNG FARMER INTEREST RATE REDUCTION PROGRAM

Sec. 58.071. DEFINITIONS. In this subchapter:

(1) "Eligible lending institution" means a financial

institution that makes commercial loans, is either a depository of

state funds or an institution of the Farm Credit System

headquartered in this state, and agrees to participate in the young

farmer interest rate reduction program and to provide collateral

equal to the amount of linked deposits placed with it.

(2) "Linked deposit" means a time deposit governed by

a written deposit agreement between the state and an eligible

lending institution that provides:

(A) that the eligible lending institution pay

interest on the deposit at a rate that is not less than the greater

of:

(i) the current market rate of a United

States treasury bill or note of comparable maturity minus three

percent; or

(ii) 0.5 percent;

(B) that the state not withdraw any part of the

deposit before the expiration of a period set by a written advance

notice of the intention to withdraw; and

to lend the value of the deposit to an eligible borrower at a

maximum rate that is the linked deposit rate plus a maximum of four

percent.

Sec. 58.072. YOUNG FARMER INTEREST RATE REDUCTION PROGRAM.

(a) The board shall establish a young farmer interest rate

reduction program to promote the creation and expansion of

agricultural businesses by young people in this state.

(b) To be eligible to participate in the young farmer

interest rate reduction program, an applicant must be at least 18

years of age but younger than 46 years of age.

applications under this subchapter, provided that the board may

delegate this authority to the commissioner.

(d) The board shall adopt rules for the loan portion of the

young farmer interest rate reduction program.

(e) In order to participate in the young farmer interest

rate reduction program, an eligible lending institution may solicit

loan applications from eligible applicants.

(f) After reviewing an application and determining that the

applicant is eligible and creditworthy, the eligible lending

institution shall send the application for a linked deposit loan to

the administrator of the authority.

(g) The eligible lending institution shall certify the

interest rate applicable to the specific eligible applicant and

attach it to the application sent to the administrator of the

authority.

(h) After reviewing each loan application under this

subchapter, the board or the commissioner shall recommend to the

comptroller the acceptance or rejection of the application.

(i) After acceptance of the application, the comptroller

shall place a linked deposit with the applicable eligible lending

institution for the period the comptroller considers appropriate.

The comptroller may not place a deposit for a period extending

beyond the state fiscal biennium in which it is placed. Subject to

the limitation described by Section 58.075, the comptroller may

place time deposits at an interest rate described by Section

58.071(2).

(j) Before the placing of a linked deposit, the eligible

lending institution and the state, represented by the comptroller,

shall enter into a written deposit agreement containing the

conditions on which the linked deposit is made.

(k) If a lending institution holding linked deposits ceases

to be either a state depository or a Farm Credit System institution

headquartered in this state, the comptroller may withdraw the

linked deposits.

(l) The board may adopt rules that create a procedure for

determining priorities for loans granted under this subchapter.

Each rule adopted must state the policy objective of the rule.

(m) A lending institution is not ineligible to participate

in the young farmer interest rate reduction program solely because

a member of the board is also an officer, director, or employee of

the lending institution, provided that a board member shall recuse

himself or herself from any action taken by the board on an

application involving a lending institution by which the board

member is employed or for which the board member serves as an

officer or director.

(n) Linked deposits under the young farmer interest rate

reduction program shall be funded from the Texas agricultural fund.

Sec. 58.073. COMPLIANCE. (a) On accepting a linked

deposit, an eligible lending institution must loan money to

eligible applicants in accordance with the deposit agreement and

this subchapter. The eligible lending institution shall forward a

compliance report to the board.

(b) The board shall monitor compliance with this subchapter

and inform the comptroller of noncompliance on the part of an

eligible lending institution.

Sec. 58.074. STATE LIABILITY PROHIBITED. The state is not

liable to an eligible lending institution for payment of the

principal, interest, or any late charges on a loan made under this

subchapter. A delay in payment or default on a loan by a borrower

does not affect the validity of the deposit agreement. Linked

deposits are not an extension of the state's credit within the

meaning of any state constitutional prohibition.

Sec. 58.075. LIMITATIONS IN PROGRAM. (a) The maximum

amount of a loan under this subchapter is $500,000.

(b) A loan granted under this subchapter may be used for any

agriculture-related operating expense, including the purchase or

lease of land or fixed assets acquisition or improvement, as

identified in the application.

SECTION 1.17. Chapter 58, Agriculture Code, is amended by

adding Subchapter G to read as follows:

SUBCHAPTER G. YOUNG FARMER GRANT PROGRAM

Sec. 58.091. GRANT PROGRAM. (a) The authority shall

administer a young farmer grant program. A grant must be for the

purpose of fostering the creation and expansion of agricultural

businesses by young people in this state.

(b) The board shall adopt rules governing the operation of

the program and selection criteria for grant recipients.

Sec. 58.092. ELIGIBILITY. To be eligible to receive a grant

under this subchapter, a person must:

(1) be an agricultural producer who is at least 18

years of age but younger than 46 years of age; and

(2) provide matching funds in the amount of not less

than one dollar for each dollar of grant money received.

Sec. 58.093. AMOUNT OF GRANTS. A grant under the young

farmer grant program may not be less than $5,000 or more than

$20,000.

Sec. 58.094. APPLICATIONS. (a) The authority shall accept

grant applications during two application periods each year.

(b) Applicants shall submit an application on a form

approved by the board or the board's designee.

Sec. 58.095. FUNDING. The source of funds for the young

farmer grant program is the Texas agricultural fund.

SECTION 1.18. Section 1232.101, Government Code, is amended

to read as follows:

Sec. 1232.101. ISSUANCE OF BONDS FOR CERTAIN STATE

AGENCIES. With respect to all bonds authorized to be issued by or

on behalf of the adjutant general's department, Parks and Wildlife

Department, Texas Agricultural Finance Authority, Texas Low-Level

Radioactive Waste Disposal Authority, Stephen F. Austin State

University, Midwestern State University, and Texas Southern

University, the authority has the exclusive authority to act on

behalf of those entities in issuing bonds on their behalf. In

connection with those issuances and with the issuance of refunding

bonds on behalf of those entities, the authority is subject to all

rights, duties, and conditions surrounding issuance previously

applicable to the issuing entity under the statute authorizing the

issuance. A reference in an authorizing statute to the entity on

whose behalf the bonds are being issued applies equally to the

authority in its capacity as issuer on behalf of the entity.

SECTION 1.19. Subsection (d), Section 1372.028, Government

Code, is amended to read as follows:

(d) An issuer is not required to provide the statement

required by Subsection (c)(3)(F) if the issuer:

(1) is an issuer of a state-voted issue;

(2) is the Texas Department of Housing and Community

Affairs[~~, the Texas Agricultural Finance Authority,~~] or the Texas

State Affordable Housing Corporation; or

(3) provides evidence that one or more binding

contracts have been entered into, or other evidence acceptable to

the board as described by program rule, to spend the unexpended

proceeds by the later of:

(A) 12 months after the date the board receives

the application; or

(B) December 31 of the program year for which the

application is filed.

SECTION 1.20. Subsection (b), Section 502.174,

Transportation Code, is amended to read as follows:

(b) The county assessor-collector shall send an assessment

collected under this section to the comptroller, at the time and in

the manner prescribed by the Texas Agricultural Finance Authority,

for deposit in the Texas agricultural fund [~~to the credit of the~~

~~young farmer loan guarantee account~~].

SECTION 1.21. The following provisions are repealed:

(1) Subdivision (3), Section 44.001, Agriculture

Code;

(2) Subsection (c), Section 58.0173, Agriculture

Code;

(3) Subsection (b), Section 58.0211, Agriculture

Code;

(4) Subsections (a), (c), and (e), Section 58.057,

Agriculture Code; and

(5) Section 1372.0235, Government Code.

SECTION 1.22. On the effective date of this Act:

(1) the young farmer loan guarantee program under

Subchapter E, Chapter 58, Agriculture Code, as that subchapter

existed before amendment by this Act, is abolished; and

(2) the agricultural loan guarantee program under

Subchapter E, Chapter 58, Agriculture Code, as amended by this Act,

is established.

SECTION 1.23. On the effective date of this Act, the young

farmer loan guarantee account is abolished. All money in the

account on that date remains in the Texas agricultural fund. All

deposits purportedly made to the account on or after that date shall

be deposited in the Texas agricultural fund. All references in law

or rule to the young farmer loan guarantee account mean the Texas

agricultural fund.

SECTION 1.24. (a) As soon as practicable on or after the

effective date of this Act, the commissioner of agriculture shall

appoint two members to the board of directors of the Texas

Agricultural Finance Authority who represent young farmers and the

interests of young farmers. In appointing those members, the

commissioner shall appoint one person to a term expiring January 1,

2010, and one to a term expiring January 1, 2011.

(b) The changes in law made by this Act by the amendment of

Section 58.012, Agriculture Code, do not affect the entitlement of

a member of the board of directors of the Texas Agricultural Finance

Authority serving on the board immediately before the effective

date of this Act to continue to serve on the board and carry out the

board's functions for the remainder of the member's term. The

changes in law apply only to a member appointed on or after the

effective date of this Act. This Act does not prohibit a person who

is a member of the board on the effective date of this Act from being

reappointed to the board if the person has the qualifications

required for a member under Section 58.012, Agriculture Code, as

amended by this Act.

SECTION 1.25. Subsection (b), Section 58.041, Agriculture

Code, as added by this Act, does not apply to the extension,

renewal, or renegotiation of debt issued by the Texas Agricultural

Finance Authority before the effective date of this Act. The

extension, renewal, or renegotiation of debt issued by the Texas

Agricultural Finance Authority before the effective date of this

Act is governed by the law in effect immediately before that date,

and the former law is continued in effect for that purpose.

ARTICLE 2. PRESCRIBED BURNING BOARD

SECTION 2.01. Section 153.001, Natural Resources Code, is

amended to read as follows:

Sec. 153.001. DEFINITIONS [~~DEFINITION~~]. In this chapter:

(1) "Board"[~~, "board"~~] means the Prescribed Burning

Board.

(2) "Department" means the Department of Agriculture.

SECTION 2.02. Subchapter A, Chapter 153, Natural Resources

Code, is amended by adding Section 153.004 to read as follows:

Sec. 153.004. PRESCRIBED BURNING IN STATE OF EMERGENCY OR

DISASTER. A certified and insured prescribed burn manager may

conduct a burn in a county in which a state of emergency or state of

disaster has been declared by the governor or the president of the

United States, unless the declaration expressly prohibits all

outdoor burning.

SECTION 2.03. Subsection (a), Section 153.041, Natural

Resources Code, is amended to read as follows:

(a) The Prescribed Burning Board is established within the

department [~~Department of Agriculture~~] and is composed of:

(1) an employee of the Texas Forest Service designated

by the director of the Texas Forest Service;

(2) an employee of the Parks and Wildlife Department

appointed by the executive director of the Parks and Wildlife

Department;

(3) an employee of the Texas Commission on

Environmental Quality [~~Natural Resource Conservation Commission~~]

appointed by the executive director of the Texas Commission on

Environmental Quality [~~Natural Resource Conservation Commission~~];

(4) an employee of the Texas AgriLife [~~Agricultural~~]

Extension Service appointed by the executive director of the Texas

AgriLife [~~Agricultural~~] Extension Service;

(5) an employee of [~~the~~] Texas AgriLife Research

[~~Agricultural Experiment Station~~] appointed by the director of

[~~the~~] Texas AgriLife Research [~~Agricultural Experiment Station~~];

(6) an employee of the Texas Tech University Range and

Wildlife Department appointed by the dean of the Texas Tech

University College of Agricultural Sciences and Natural Resources;

(7) an employee of the department [~~Department of~~

~~Agriculture~~] appointed by the commissioner of agriculture;

(8) an employee of the State Soil and Water

Conservation Board appointed by the executive director of the State

Soil and Water Conservation Board; and

(9) five persons who are:

(A) owners of agricultural land, as that term is

defined by Section 153.081;

(B) self-employed or employed by a person other

than a governmental entity; and

agriculture.

SECTION 2.04. Section 153.044, Natural Resources Code, is

amended to read as follows:

Sec. 153.044. SUNSET PROVISION. The Prescribed Burning

Board is subject to Chapter 325, Government Code (Texas Sunset

Act). The board shall be reviewed during the period in which the

Department of Agriculture is reviewed [~~Unless continued in~~

~~existence as provided by that chapter, the board is abolished and~~

~~this chapter expires September 1, 2009~~].

SECTION 2.05. Section 153.046, Natural Resources Code, is

amended to read as follows:

Sec. 153.046. DUTIES. The board shall:

(1) establish standards for prescribed burning;

(2) develop a comprehensive training curriculum for

certified and insured prescribed burn managers;

(3) establish standards for certification,

recertification, and training for certified and insured prescribed

burn managers;

(4) establish minimum education and professional

requirements for instructors for the approved curriculum; and

(5) establish minimum insurance requirements for

certified and insured prescribed burn managers.

SECTION 2.06. Section 153.047, Natural Resources Code, is

amended to read as follows:

Sec. 153.047. PRESCRIBED BURNING STANDARDS. Minimum

standards established by the board for prescribed burning must:

(1) ensure that prescribed burning is the controlled

application of fire to naturally occurring or naturalized

vegetative fuels under specified environmental conditions in

accordance with a written prescription plan:

(A) designed to confine the fire to a

predetermined area and to accomplish planned land management

objectives; and

(B) that conforms to the standards established

under this section;

(2) require that at least one certified and insured

prescribed burn manager is present on site during the conduct of the

prescribed burn;

(3) establish appropriate guidelines for size of

burning crews sufficient to:

(A) conduct the burn in accordance with the

prescription plan; and

(B) provide adequate protection for the safety of

persons and of adjacent property;

(4) include standards for notification to adjacent

land owners, the Texas Commission on Environmental Quality [~~Natural~~

~~Resource Conservation Commission~~], and local fire authorities; and

(5) include minimum insurance requirements for

certified and insured prescribed burn managers.

SECTION 2.07. Subsections (c) and (e), Section 153.048,

Natural Resources Code, are amended to read as follows:

(e) The board shall maintain a register of certified and

insured prescribed burn managers and dates of completion of initial

and continuing training.

SECTION 2.08. Subsections (a) and (b), Section 153.081,

Natural Resources Code, are amended to read as follows:

(a) Subject to Section 153.082, an owner, lessee, or

occupant of agricultural land is not liable for property damage or

for injury or death to persons caused by or resulting from

prescribed burning conducted on the land owned by, leased by, or

occupied by the person if the prescribed burning is conducted under

the supervision of a certified and insured prescribed burn manager.

(b) This section does not apply to an owner, lessee, or

occupant of agricultural land who is a certified and insured

prescribed burn manager and conducts a burn on that land.

SECTION 2.09. Section 153.082, Natural Resources Code, is

amended to read as follows:

Sec. 153.082. INSURANCE. The limitation on liability under

Section 153.081 does not apply to an owner, lessee, or occupant of

agricultural land unless the certified and insured prescribed burn

manager conducting a burn on the land has liability insurance

coverage:

(1) of at least $1 million for each single occurrence

of bodily injury or death, or injury to or destruction of property;

and

(2) with a policy period minimum aggregate limit of at

least $2 million.

SECTION 2.10. Chapter 153, Natural Resources Code, is

amended by adding Subchapter D to read as follows:

SUBCHAPTER D. COMPLAINTS, ENFORCEMENT, AND PENALTIES

Sec. 153.101. COMPLAINTS. The department shall receive and

process complaints concerning certified and insured prescribed

burn managers in the manner described by Section 12.026,

Agriculture Code, and rules adopted under that section.

Sec. 153.102. DISCIPLINARY ACTION; SCHEDULE OF SANCTIONS.

(a) The department may impose an administrative sanction,

including an administrative penalty, as provided by Sections

12.020, 12.0201, 12.0202, and 12.0261, Agriculture Code, for a

violation of this chapter.

(b) The department by rule shall adopt a schedule of the

disciplinary sanctions that the department may impose under this

chapter. In adopting the schedule of sanctions, the department

shall ensure that the severity of the sanction imposed is

appropriate to the type of violation or conduct that is the basis

for disciplinary action.

including the amount of any administrative penalty to assess, the

department shall consider:

(1) whether the person:

(A) is being disciplined for multiple violations

of either this chapter or a rule or order adopted under this

chapter; or

(B) has previously been the subject of

disciplinary action by the department under this chapter and has

previously complied with department rules and this chapter;

(2) the seriousness of the violation;

(3) the threat to public safety; and

(4) any mitigating factors.

Sec. 153.103. INJUNCTION. (a) The department may apply to

a district court in any county for an injunction to restrain a

person who is not a certified and insured prescribed burn manager

from representing that the person is a certified and insured

prescribed burn manager.

(b) At the request of the department, the attorney general

shall initiate and conduct an action in a district court in the

state's name to obtain an injunction under this section.

Sec. 153.104. EMERGENCY SUSPENSION. (a) On determining

that a certification holder is engaged in or about to engage in a

violation of this chapter and that the certification holder's

continued practice constitutes an immediate threat to the public

welfare, the department may issue an order suspending the

certification holder's certification without notice or a hearing.

The department shall immediately serve notice of the suspension on

the certification holder.

(b) The notice required by Subsection (a) must:

(1) be personally served on the certification holder

or be sent by registered or certified mail, return receipt

requested, to the certification holder's last known address

according to the department's records;

(2) state the grounds for the suspension; and

(3) inform the certification holder of the right to a

hearing on the suspension order.

under this section is entitled to request a hearing on the

suspension not later than the 30th day after the date of receipt of

notice of the suspension. Not later than the fifth day after the

date a hearing is requested, the department shall issue a notice of

hearing.

(d) A hearing on a suspension order under this section is

subject to Chapter 2001, Government Code. If the hearing is before

an administrative law judge, after the hearing, the administrative

law judge shall recommend to the department whether to uphold,

vacate, or modify the suspension order.

(e) A suspension order issued under this section remains in

effect until further action is taken by the department. If the

administrative law judge's recommendation under Subsection (d) is

to vacate the order, the department shall determine whether to

vacate the order not later than the second day after the date of the

recommendation.

SECTION 2.11. (a) Subsection (c), Section 153.048,

Natural Resources Code, as amended by this Act, applies to a

certification issued or renewed after the effective date of this

Act. A certification issued or renewed before the effective date of

this Act is governed by the law in effect on the date the

certification was issued or renewed, and the former law is

continued in effect for that purpose.

(b) Sections 153.102, 153.103, and 153.104, Natural

Resources Code, as added by this Act, apply only to conduct that

occurs on or after the effective date of this Act. Conduct that

occurs before the effective date of this Act is governed by the law

in effect when the conduct occurred, and the former law is continued

in effect for that purpose.

ARTICLE 3. TEXAS-ISRAEL EXCHANGE FUND BOARD

SECTION 3.01. The heading to Chapter 45, Agriculture Code,

is amended to read as follows:

CHAPTER 45. TEXAS-ISRAEL EXCHANGE RESEARCH PROGRAM [~~FUND~~]

SECTION 3.02. Section 45.001, Agriculture Code, is amended

to read as follows:

Sec. 45.001. LEGISLATIVE FINDINGS; PURPOSE. (a) The

legislature finds that Texas and Israel have many interests in

common. They face many of the same difficulties in agriculture; the

geography of both areas produces semiarid climatic conditions;

there is present in both areas a rising demand for a limited supply

of water coupled with increasing pressures to minimize the use of

energy in all aspects of agriculture. Scientific and technological

cooperatives already produce close ties between the two areas while

engaging in binational projects for scientific and industrial

research and development.

A program [~~fund~~] to support joint agricultural research and

development by, and the development of trade and business relations

between, Texas and Israel will address common problems and make

substantial contributions to the development of agriculture,

trade, and business in both areas. Since Texas has long emphasized

broad-based agricultural research and Israel has originated and

developed agricultural technologies designed to maximize

production with minimal use of resources such as water and labor,

each of the two areas will benefit by sharing information and

expertise.

(b) The purpose of this chapter is to:

(1) establish a program [~~fund~~] to promote and support

practical and applied agricultural research and development that

will result in mutual benefit to Texas and Israel and will help to

provide solutions to food and fiber production problems wherever

they exist, particularly those relating to water conservation; and

(2) establish a program of mutual cooperation that

will foster the development of trade, mutual assistance, and

business relations between Texas and Israel.

SECTION 3.03. Section 45.002, Agriculture Code, is amended

to read as follows:

Sec. 45.002. DEFINITION [~~DEFINITIONS~~]. In this chapter,[:

[~~(1)~~] "applied [~~Applied~~] research" means the process

of assembling knowledge gained by careful and diligent search and

studious inquiry and examination and using that knowledge to solve

practical, real-world problems.

[~~(2)~~ ~~"Board" means the Texas-Israel Exchange Fund~~

~~Board.~~

[~~(3) "Fund" means the Texas-Israel Exchange Fund.~~]

SECTION 3.04. Section 45.005, Agriculture Code, is amended

to read as follows:

Sec. 45.005. GENERAL FUNCTIONS, POWERS, AND DUTIES.

(a) The department may establish a binational program to support

joint agricultural research and development with Israel. The scope

of agricultural research and development which the program [~~fund~~]

may promote and support encompasses all scientific activities

related to agriculture, including production, processing,

marketing, and agricultural services, with emphasis on the support

of applied research to improve water, labor, and energy utilization

in agriculture.

(b) The program [~~fund~~] shall support applied research in

areas of potential mutual interest, including:

(1) water conservation;

(2) water management and use;

(3) soil management and conservation;

(4) innovative sources of energy for agricultural

production;

(5) environmental aspects of agricultural technology;

(6) intensive crop production; and

(7) agricultural engineering and processing.

and development projects of mutual benefit that are located in

Texas, Israel, or any other location considered advisable by the

department or suggested by the advisory committee [~~boards~~].

(d) The department [~~fund~~] may make research or development

grants or loans to public or private entities who intend to carry

out the stated objectives of the program [~~fund~~].

(e) The program [~~fund~~] shall encourage or support the

exchange of agricultural producers, scientists, teachers,

students, or other types of agricultural experts between the two

cooperating areas of Texas and Israel.

(f) The program [~~fund~~] shall encourage and support [a

~~program of~~] mutual cooperation that will foster the development of

trade, mutual assistance, and business relations between Texas and

Israel.

SECTION 3.05. Subsections (b) and (d), Section 45.007,

Agriculture Code, are amended to read as follows:

(b) The department [~~board~~] may accept gifts and grants from

the federal government, state government, and private sources, as

well as legislative appropriations to carry out the purposes of

this chapter. The use of gifts and grants other than legislative

appropriation is subject only to limitations contained in the gift

or grant.

(d) The department [~~board~~] shall make an annual accounting

of all money received, awarded, and expended during the year under

this chapter to the legislative committees responsible for

agricultural issues.

SECTION 3.06. Chapter 45, Agriculture Code, is amended by

adding Section 45.009 to read as follows:

Sec. 45.009. TEXAS-ISRAEL EXCHANGE ADVISORY COMMITTEE. The

department may establish a binational agricultural research

advisory committee to provide guidance and direction on activities

conducted under this chapter and the expenditure of money

appropriated for the purposes of this chapter.

SECTION 3.07. (a) The Texas-Israel Exchange Fund Board and

the Texas-Israel Exchange Fund are abolished.

(b) The following provisions of the Agriculture Code are

repealed:

(1) Section 45.003;

(2) Section 45.004;

(3) Section 45.006;

(4) Subsections (a) and (c), Section 45.007; and

(5) Section 45.008.

ARTICLE 4. STRUCTURE OF CERTAIN BOARDS AND ADVISORY COMMITTEES

SECTION 4.01. Chapter 50B, Agriculture Code, is amended by

adding Section 50B.0015 to read as follows:

Sec. 50B.0015. DEFINITION. In this chapter, "committee"

means the wine industry development and marketing advisory

committee.

SECTION 4.02. Section 50B.002, Agriculture Code, is amended

to read as follows:

Sec. 50B.002. WINE INDUSTRY DEVELOPMENT AND MARKETING[;]

ADVISORY COMMITTEE. (a) The commissioner shall [~~may~~] appoint a

wine industry development and marketing advisory committee to:

(1) develop a long-term vision and marketable identity

for the wine industry in the state that take into consideration

future industry development, funding, research, educational

programming, risk management, and marketing; and

(2) assist the commissioner in establishing and

implementing the Texas Wine Marketing Assistance Program under

Chapter 110, Alcoholic Beverage Code.

(b) The committee consists of members appointed by the

commissioner who represent a diverse cross-section of the wine

industry, including representatives of:

(1) grape growers;

(2) wineries;

(3) wholesalers;

(4) package stores;

(5) retailers;

(6) researchers;

(7) consumers;

(8) the department; and

(9) the Texas Alcoholic Beverage Commission.

compensation.

(d) A member of the committee serves at the pleasure of the

commissioner for a term of two years. The commissioner may

reappoint a member to the committee.

(e) The commissioner shall select a presiding officer from

among the members and adopt rules governing the operation of the

committee.

(f) The committee shall meet as necessary to provide

guidance to the commissioner.

SECTION 4.03. Title 3, Agriculture Code, is amended by

adding Chapter 50D to read as follows:

CHAPTER 50D. TEXAS BIOENERGY POLICY COUNCIL AND TEXAS BIOENERGY

RESEARCH COMMITTEE

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 50D.001. PURPOSE. The purpose of the Texas Bioenergy

Policy Council and the Texas Bioenergy Research Committee is to

promote the goal of making biofuels a significant part of the energy

industry in this state not later than January 1, 2019.

Sec. 50D.002. DEFINITIONS. In this chapter:

(1) "Alternative chemical feedstock" means a

feedstock that is produced by a thermochemical process that

converts alternative sources of fuel, including biomass, or other

renewable sources, to a raw material to be used in the chemical

manufacturing process.

(2) "Policy council" means the Texas Bioenergy Policy

Council.

(3) "Research committee" means the Texas Bioenergy

Research Committee.

Sec. 50D.003. ADMINISTRATIVE SUPPORT. The department:

(1) shall provide administrative support, including

staff, to the policy council; and

(2) may allocate appropriate administrative support

to the research committee.

[Sections 50D.004-50D.010 reserved for expansion]

SUBCHAPTER B. TEXAS BIOENERGY POLICY COUNCIL

Sec. 50D.011. COMPOSITION. (a) The policy council is

composed of the following 18 members:

(1) the commissioner, who serves as chair of the

policy council;

(2) one representative of the Railroad Commission of

Texas designated by the commission;

(3) one representative of the Texas Commission on

Environmental Quality designated by the commission;

(4) one representative of the Public Utility

Commission of Texas designated by the commission;

(5) one representative of the Texas Water Development

Board designated by the board;

(6) the chancellor of The Texas A&M University System,

or the person designated by the chancellor;

(7) the chancellor of the Texas Tech University

System, or the person designated by the chancellor;

(8) the chancellor of The University of Texas System,

or the person designated by the chancellor;

(9) one member of the senate appointed by the

lieutenant governor;

(10) one member of the house of representatives

appointed by the speaker of the house of representatives; and

(11) eight members appointed by the governor, with

each of the following industries or groups represented by one

member:

(A) research and development of feedstock and

feedstock production;

(B) retail distribution of energy;

(D) agricultural production for bioenergy

production or agricultural waste used for production of bioenergy;

(E) production of biodiesel from nonfood

feedstocks;

(F) production of ethanol from nonfood

feedstocks;

(G) bio-based electricity generation; and

(H) chemical manufacturing.

(b) The eight members of the policy council appointed by the

governor serve at the governor's pleasure and have two-year

staggered terms, with the terms of either three or four members

expiring on January 1 of each year.

appointed by the governor for the remainder of the unexpired term.

(d) Appointments to the policy council must be made without

regard to the race, color, disability, sex, religion, age, or

national origin of the appointees.

(e) The policy council is subject to Chapters 551 and 2001,

Government Code.

Sec. 50D.012. REMOVAL OF POLICY COUNCIL MEMBERS. (a) A

member of the policy council may be removed from the policy council

if the member:

(1) is not able to devote the time necessary to perform

the member's duties as a member;

(2) cannot because of illness or disability discharge

the member's duties or cannot discharge those duties for a

substantial part of the term for which the member is appointed; or

(3) is absent from more than half of the regularly

scheduled policy council meetings that the member is eligible to

attend during a calendar year, unless the absence is excused by a

majority vote of the policy council.

(b) An action of the policy council is not invalid because a

ground for removal of a policy council member exists at the time the

action is taken.

ground for removal of a policy council member exists, the

commissioner shall notify the governor and attorney general of the

potential ground for removal.

Sec. 50D.013. DUTIES OF POLICY COUNCIL. (a) The policy

council shall:

(1) provide a vision for unifying this state's

agricultural, energy, and research strengths in a successful launch

of a cellulosic biofuel and bioenergy industry;

(2) foster development of cellulosic-based and

bio-based fuels and build on the Texas emerging technology fund's

investments in leading-edge energy research and efforts to

commercialize the production of bioenergy;

(3) pursue the creation of a next-generation biofuels

energy research program at a university in this state;

(4) work to procure federal and other funding to aid

this state in becoming a bioenergy leader;

(5) study the feasibility and economic development

effect of a blending requirement for biodiesel or cellulosic fuels;

(6) pursue the development and use of thermochemical

process technologies to produce alternative chemical feedstocks;

(7) study the feasibility and economic development of

the requirements for pipeline-quality, renewable natural gas; and

(8) perform other advisory duties as requested by the

commissioner regarding the responsible development of bioenergy

resources in this state.

(b) The policy council shall meet regularly as necessary at

the call of the commissioner.

Sec. 50D.014. REIMBURSEMENT OF EXPENSES. A member of the

policy council may not receive compensation for service on the

council. Subject to availability of funds, a policy council member

may receive reimbursement for the actual and necessary expenses

incurred while conducting policy council business.

Sec. 50D.015. COORDINATION WITH FEDERAL GOVERNMENT ON

BIOENERGY POLICY. (a) In this section, "state agency" has the

meaning assigned by Section 315.002, Government Code.

(b) The policy council shall take reasonable steps to track

the development of federal bioenergy policy and provide information

relating to federal regulatory developments to each affected state

agency.

Environmental Quality shall request a determination by the United

States Environmental Protection Agency that this state will not

lose nitrogen oxide emission reduction credits currently

recognized as part of the state implementation plan if:

(1) this state allows the use of biodiesel and

biodiesel blends with no additives; and

(2) the final blend of fuel complies with state and

federal standards for cetane and aromatic hydrocarbon content.

(d) If the Texas Commission on Environmental Quality

receives a determination from the United States Environmental

Protection Agency that this state will not lose nitrogen oxide

emission reduction credits as a result of the use of biodiesel or

biodiesel blends with no additives, or if the commission

independently makes that determination, the commission may not

adopt or implement rules that restrict the production or

distribution of biodiesel or biodiesel blends in a manner more

stringent than provided by federal law.

[Sections 50D.016-50D.020 reserved for expansion]

SUBCHAPTER C. TEXAS BIOENERGY RESEARCH COMMITTEE

Sec. 50D.021. COMPOSITION. (a) The research committee is

composed of the following 16 members:

(1) the commissioner or the person designated by the

commissioner, who serves as the chair of the research committee;

(2) one representative of the Railroad Commission of

Texas designated by the commission;

(3) one representative of the Texas Commission on

Environmental Quality designated by the commission;

(4) one representative of the Public Utility

Commission of Texas designated by the commission;

(5) one representative of the Texas Water Development

Board designated by the board;

(6) one researcher or specialist in the bioenergy

field from each of the following university systems, appointed by

the chancellor of the system:

(A) The Texas A&M University System;

(B) the Texas Tech University System; and

(7) eight members, with a member appointed by each

policy council member appointed by the governor under Section

50D.011(a)(11).

(b) The eight members of the research committee appointed

under Subsection (a)(7) serve at the governor's pleasure and have

two-year staggered terms, with the terms of either three or four

members expiring on January 1 of each year.

appointed under Subsection (a)(7) for the remainder of the

unexpired term.

(d) Appointments to the research committee must be made

without regard to the race, color, disability, sex, religion, age,

or national origin of the appointees.

(e) The research committee is subject to Chapters 551 and

2001, Government Code.

Sec. 50D.022. REMOVAL OF RESEARCH COMMITTEE MEMBERS.

(a) A member of the research committee may be removed from the

research committee if the member:

(1) is not able to devote the time necessary to perform

the member's duties as a member;

(2) cannot because of illness or disability discharge

the member's duties or cannot discharge those duties for a

substantial part of the term for which the member is appointed; or

(3) is absent from more than half of the regularly

scheduled committee meetings that the member is eligible to attend

during a calendar year, unless the absence is excused by a majority

vote of the committee.

(b) An action of the research committee is not invalid

because a ground for removal of a committee member exists at the

time the action is taken.

ground for removal of a committee member exists, the commissioner

shall notify the governor and attorney general of the potential

ground for removal.

Sec. 50D.023. PURPOSES AND DUTY OF RESEARCH COMMITTEE.

(a) The research committee is a research consortium among academic

and technical research leadership, with active involvement by all

sectors of the economy interested in bioenergy development.

(b) The research committee shall:

(1) identify and research appropriate and desirable

biomass feedstock for each geographic region of this state;

(2) investigate logistical challenges to the

planting, harvesting, and transporting of large volumes of biomass

and provide recommendations to the policy council that will aid in

overcoming barriers to the transportation, distribution, and

marketing of bioenergy;

(3) identify strategies for and obstacles to the

potential transition of the agriculture industry in western regions

of this state to dryland bioenergy crops that are not dependent on

groundwater resources;

(4) explore regions of this state, including coastal

areas, that may contain available marginal land for use in growing

bioenergy feedstocks;

(5) study the potential for producing oil from algae;

(6) study the potential for the advancement of

thermochemical process technologies to produce alternative

chemical feedstocks;

(7) study the potential for producing

pipeline-quality natural gas from renewable sources; and

(8) perform other research duties as requested by the

commissioner relating to the responsible development of bioenergy

resources in this state.

commissioner.

Sec. 50D.024. REIMBURSEMENT OF EXPENSES. A member of the

research committee may not receive compensation for service on the

committee. Subject to availability of funds, a research committee

member may receive reimbursement for the actual and necessary

expenses incurred while conducting research committee business.

SECTION 4.04. Subsections (a) and (d), Section 62.002,

Agriculture Code, are amended to read as follows:

(a) The State Seed and Plant Board is an agency of the state.

The board is composed of [~~six members appointed by the governor with~~

~~the advice and consent of the senate. Membership must include~~]:

(1) one individual, appointed by the president of

Texas A&M University, from the Soils and Crop Sciences Department,

Texas Agricultural Experiment Station, Texas A&M [~~A & M~~]

University;

(2) one individual, appointed by the president of

Texas Tech University, from the Department of Plant and Soil

Sciences, Texas Tech University;

(3) one individual, appointed by the commissioner,

licensed as a Texas Foundation, Registered, or Certified seed or

plant producer who is not employed by a public institution;

(4) one individual, appointed by the commissioner, who

sells Texas Foundation, Registered, or Certified seed or plants;

(5) one individual, appointed by the commissioner,

actively engaged in farming but not a producer or seller of Texas

Foundation, Registered, or Certified seed or plants; and

(6) the head of the seed division of the department.

(d) The commissioner [~~governor~~] shall designate a member of

the board as the chairman to serve in that capacity at the pleasure

of the commissioner [~~governor~~]. The board annually shall elect a

vice-chairman and secretary. The board shall meet at times and

places determined by the chairman.

SECTION 4.05. Subsection (a), Section 62.0027, Agriculture

Code, is amended to read as follows:

(a) Before a member of the board may assume the member's

duties [~~and before the member may be confirmed by the senate~~], the

member must complete at least one course of the training program

established under this section.

SECTION 4.06. Subsections (a) and (f), Section 103.003,

Agriculture Code, are amended to read as follows:

(a) The Produce Recovery Fund Board is composed of five

members appointed by the commissioner [~~governor with the advice and~~

~~consent of the senate~~]. Two members must be producers, one must be

a license holder licensed under Chapter 101, and two must be members

of the general public.

(f) The commissioner [~~governor~~] shall designate a member of

the board as the chairman of the board to serve in that capacity at

the pleasure of the commissioner [~~governor~~].

SECTION 4.07. Subsection (a), Section 103.019, Agriculture

Code, is amended to read as follows:

(a) Before a member of the board may assume the member's

duties [~~and before the member may be confirmed by the senate~~], the

member must complete at least one course of the training program

established under this section.

SECTION 4.08. Subsection (b), Section 110.002, Alcoholic

Beverage Code, is amended to read as follows:

(b) The commissioner, in consultation with the advisory

committee established under Section 50B.002, Agriculture Code

[~~110.003~~], shall adopt rules as necessary to implement the program.

SECTION 4.09. The following statutes are repealed:

(1) Subsection (c), Section 62.0023, Agriculture

Code;

(2) Subsection (b), Section 103.003 and Subsection

(c), Section 103.017, Agriculture Code; and

(3) Section 110.003, Alcoholic Beverage Code.

SECTION 4.10. On the effective date of this Act, the Texas

Wine Marketing Assistance Program advisory committee and the wine

industry development advisory committee are abolished. The

commissioner of agriculture may appoint a person who previously

served on either of those committees to the wine industry

development and marketing advisory committee established under

Section 50B.002, Agriculture Code, as amended by this Act.

SECTION 4.11. (a) As soon as practicable after the

effective date of this Act, the appropriate persons shall appoint

the members of the Texas Bioenergy Policy Council and the Texas

Bioenergy Research Committee established by Sections 50D.011 and

50D.021, Agriculture Code, as added by this Act.

(b) Not later than the 30th day after the date the final

member is appointed to the Texas Bioenergy Policy Council, the

commissioner of agriculture shall call the first meeting of the

policy council.

SECTION 4.12. The changes in law made by this Act by the

amendment of Sections 62.002 and 103.003, Agriculture Code, do not

affect the entitlement of a member serving on the State Seed and

Plant Board or Produce Recovery Fund Board immediately before the

effective date of this Act to continue to serve as a board member

for the remainder of the member's term. The changes in law apply

only to a member appointed on or after the effective date of this

Act.

ARTICLE 5. CERTAIN AGRICULTURAL REGULATORY PROGRAMS

SECTION 5.01. Section 13.251, Agriculture Code, is amended

to read as follows:

Sec. 13.251. DEFINITION. In this subchapter, "public

weigher" means a business certified under this subchapter [~~person~~

~~who is elected or appointed~~] to issue an official certificate

declaring the accurate weight or measure of a commodity that the

business [~~person~~] is requested to weigh.

SECTION 5.02. Section 13.255, Agriculture Code, is amended

to read as follows:

Sec. 13.255. CERTIFICATE. (a) A public weigher[~~, whether~~

~~elected or appointed, or deputy public weigher~~] may not officially

weigh a commodity unless the weigher has obtained from the

department a certificate of authority.

(b) A [~~state public weigher must submit a nonrefundable fee,~~

~~as provided by department rule, with the application for a~~

~~certificate of authority. A county public weigher or a deputy~~]

public weigher must submit a fee, as provided by department rule,

with the application for a certificate of authority.

SECTION 5.03. Section 13.2555, Agriculture Code, is amended

to read as follows:

Sec. 13.2555. REVOCATION, MODIFICATION, OR SUSPENSION OF

CERTIFICATE. (a) The department shall revoke, modify, or suspend

the certificate of authority of a [~~an appointed public weigher or a~~

~~deputy of an appointed county~~] public weigher, assess an

administrative penalty, place on probation the public weigher

[~~person~~] whose certificate has been suspended, or reprimand a [an

~~appointed public weigher or a deputy of an appointed county~~] public

weigher for a violation of this subchapter or a rule adopted by the

department under this subchapter.

(b) If a certificate suspension is probated, the department

may require the public weigher [~~person~~] to:

(1) report regularly to the department on matters that

are the basis of the probation;

(2) limit practice to the areas prescribed by the

department; or

(3) continue or renew professional education until the

public weigher [~~person~~] attains a degree of skill satisfactory to

the department in those areas that are the basis of the probation.

a public weigher's [~~person's~~] certificate, the public weigher

[~~person~~] is entitled to a hearing conducted under Section 12.032.

The decision of the department is appealable in the same manner as

provided for contested cases under Chapter 2001, Government Code.

SECTION 5.04. Section 13.256, Agriculture Code, is amended

to read as follows:

Sec. 13.256. BOND. [~~(a)~~] Each [~~county public weigher,~~

~~whether elected or appointed, and each deputy~~] public weigher shall

execute [~~for the full term of office~~] a bond in accordance with

rules adopted [~~that is in the amount of $2,500, approved~~] by the

department[~~, and made payable to the county judge of the county for~~

~~which the weigher is elected or appointed~~]. The bond must be

conditioned on the accurate weight or measure of a commodity being

reflected on the certificate issued by the public weigher [or

~~deputy~~], on the protection of a commodity that the public weigher

[~~or deputy~~] is requested to weigh or measure, and on compliance with

all laws and rules governing public weighers. [~~The bond shall be~~

~~filed with the county clerk's office in the county for which the~~

~~public weigher or deputy is appointed or elected.~~] The bond is not

void on first recovery. A person injured by the public weigher may

sue on the bond.

[~~(b)~~ ~~Each state public weigher shall execute a bond similar~~

~~to the bond required under Subsection (a) of this section, except~~

~~that the bond is for $10,000, made payable to the State of Texas,~~

~~and filed with the department.~~]

SECTION 5.05. Subsection (a), Section 13.257, Agriculture

Code, is amended to read as follows:

(a) On each certificate of weight or measure that a public

weigher [~~or deputy public weigher~~] issues, the public weigher [or

~~deputy public weigher~~] shall include the:

(1) time and date that the weight or measurement was

taken;

(2) signature and license number of the public weigher

[~~or deputy public weigher~~]; and

(3) seal of the department.

SECTION 5.06. Subsection (a), Section 13.259, Agriculture

Code, is amended to read as follows:

(a) A public weigher [~~or deputy public weigher~~] who

intentionally or knowingly issues a certificate of weight or

measure giving a false weight or measure for a commodity weighed or

measured commits an offense.

SECTION 5.07. Section 13.261, Agriculture Code, is amended

to read as follows:

Sec. 13.261. [~~POWER OF DEPARTMENT;~~] RULES. The department

shall [~~may~~] adopt rules governing the bond requirements and

[~~procedures to be followed in administering the~~] fees imposed under

this subchapter.

SECTION 5.08. Section 52.038, Agriculture Code, is amended

to read as follows:

Sec. 52.038. EXISTING CORPORATIONS AND ASSOCIATIONS.

[~~(a)~~] Any corporation or association organized under prior law

before March 1, 1921, may elect, by a majority vote of its members

or stockholders, to adopt this chapter and become subject to it by:

(1) adopting the restrictions provided by this

chapter; and

(2) executing, in duplicate on forms supplied by the

secretary of state, an instrument, signed and acknowledged by its

directors, stating that the entity, by a majority vote of its

members or stockholders, has decided to accept the benefits of and

be bound by this chapter[~~; and~~

[~~(3)~~ ~~filing articles of incorporation in accordance~~

~~with the requirements of Section 52.035 of this code except that the~~

~~entity's directors shall sign the articles~~].

[~~(b)~~ ~~The filing fee for the articles filed under Subsection~~

~~(a) of this section is equal to the filing fee for an amendment to~~

~~the articles of incorporation as provided by Section 52.151 of this~~

~~code.~~]

SECTION 5.09. Section 52.151, Agriculture Code, is amended

to read as follows:

Sec. 52.151. TAX EXEMPTIONS [~~FEES~~]. [~~(a)~~ ~~The fee for~~

~~filing articles of incorporation under this chapter is $10.~~

[~~(b)~~ ~~The fee for filing an amendment to the articles of~~

~~incorporation under this chapter is $2.50.~~

[~~(c)~~ ~~Each marketing association shall pay to the department~~

~~an annual license fee, as provided by department rule.~~] A marketing

association is exempt from all [~~other~~] franchise or license taxes,

except that a marketing association is exempt from the franchise

tax imposed by Chapter 171, Tax Code, only if exempted by that

chapter.

SECTION 5.10. Section 101.003, Agriculture Code, is amended

by amending Subsection (b) and adding Subsection (c) to read as

follows:

(b) This section does not apply to:

(1) a retailer, unless the retailer:

(A) has annual sales of perishable commodities

that comprise 50 percent or more of the retailer's total sales; or

(B) employs a buying agent who buys directly from

a producer;

(2) a producer who handles or deals exclusively in the

producer's own products;

(3) a person shipping less than six standard boxes of

citrus fruit in any one separate shipment; [or]

(4) a person who ships a noncommercial shipment of

perishable commodities; or

(5) a person who purchases perishable commodities and

pays for the perishable commodities in United States currency

before or at the time of delivery or taking possession.

license, as owner, agent, or otherwise, does not violate this

section if the person obtains a license not later than the 30th day

after the date the person first purchases perishable commodities.

SECTION 5.11. Section 101.004, Agriculture Code, is amended

to read as follows:

Sec. 101.004. LICENSE OR REGISTRATION CATEGORIES. [~~(a)~~] A

person shall apply for a license if the person:

(1) purchases perishable commodities on credit;

(2) takes possession of perishable commodities for

consignment or handling on behalf of the producer or owner of the

perishable commodities; or

(3) takes possession of perishable commodities for

consignment or handling in a manner or under a contract that does

not require or result in payment to the producer, seller, or

consignor of the full amount of the purchase price in United States

currency at the time of delivery or at the time that the perishable

commodities pass from the producer, seller, or consignor to the

person.

[~~(b)~~ ~~A person shall register as a cash dealer if the person~~

~~purchases perishable commodities and pays for the perishable~~

~~commodities in United States currency before or at the time of~~

~~delivery or taking possession.~~]

SECTION 5.12. Subsections (b) and (c), Section 101.007,

Agriculture Code, are amended to read as follows:

(b) If [~~an applicant for a license indicates on the~~

~~application that~~] a previous license of the applicant has been or is

suspended or has been revoked, the department may not issue or renew

a license to the applicant until the department is furnished with

satisfactory proof that the applicant is, on the date of

application, qualified to receive the license for which the

applicant applied as provided by department rule.

under this section if the department determines that a license

previously issued to the applicant was revoked or suspended or that

the applicant has engaged in conduct for which a license could have

been revoked or suspended. In determining whether to refuse to

issue or renew a license under this section, the department may

consider:

(1) the facts and circumstances pertaining to a prior

suspension or revocation;

(2) the financial condition of the applicant as of the

date of the application;

(3) any judgment by a court of this state that is

outstanding against the applicant and is due and owing to a

licensee, grower, or producer of perishable commodities; and

(4) any certified claim against the applicant by a

licensee, grower, or producer of perishable commodities that is

under consideration by the department.

SECTION 5.13. Section 101.009, Agriculture Code, is amended

to read as follows:

Sec. 101.009. LICENSEE LIST. The department may publish as

often as it considers necessary a list in pamphlet form or on the

department's Internet website of all persons licensed under this

chapter.

SECTION 5.14. Subsections (a) and (b), Section 101.013,

Agriculture Code, are amended to read as follows:

(a) If a licensee or a person required to be licensed causes

a producer, seller, or owner, or an agent of a producer, seller, or

owner, to part with control or possession of all or any part of the

person's perishable commodities and agrees by contract of purchase

to pay the purchase price on demand following delivery, the

licensee or person required to be licensed shall make payment

immediately on demand.

(b) If a person makes demand for the purchase price in

writing, the mailing of a registered letter that makes the demand

and is addressed to the licensee or person required to be licensed

at their [~~the licensee's~~] business address is prima facie evidence

that demand was made at the time the letter was mailed.

SECTION 5.15. Section 101.014, Agriculture Code, is amended

to read as follows:

Sec. 101.014. COMMISSION OR SERVICE CHARGE IN CONTRACT. If

a licensee or a person required to be licensed handles perishable

commodities by guaranteeing a producer or owner a minimum price and

handles the perishable commodities on the account of the producer

or owner, the licensee or person required to be licensed shall

include in the contract with the producer or owner the maximum

amount that the licensee or person required to be licensed will

charge for commission, service, or both, in connection with the

perishable commodities handled.

SECTION 5.16. Subsections (a) and (b), Section 101.015,

Agriculture Code, are amended to read as follows:

(a) Except as otherwise provided by this section, a licensee

or a person required to be licensed shall settle with the producer

or seller of perishable commodities on the basis of the grade and

quality that is referred to in the contract under which the licensee

or person required to be licensed obtained possession or control of

the perishable commodities.

(b) If the perishable commodities have been inspected by a

state or federal inspector in this state and found to be of a

different grade or quality than that referred to in the contract,

the licensee or person required to be licensed shall settle with the

producer or seller of the perishable commodities on the basis of the

grade and quality determined by the inspector.

SECTION 5.17. Section 101.0151, Agriculture Code, is

amended to read as follows:

Sec. 101.0151. BUYING OR SELLING BY WEIGHT. A licensee or a

person required to be licensed who buys or sells perishable

commodities by weight shall weigh or have the perishable

commodities weighed on scales that meet state requirements.

SECTION 5.18. Section 101.016, Agriculture Code, is amended

to read as follows:

Sec. 101.016. RECORDS OF PURCHASE. (a) A licensee or a

person required to be licensed or a packer, processor, or

warehouseman may not receive or handle perishable commodities

without requiring the person from whom the perishable commodities

are purchased or received to furnish a statement in writing

showing:

(1) the owner of the perishable commodities;

(2) the grower of the perishable commodities;

(3) the approximate location of the land on which the

perishable commodities were grown;

(4) the date the perishable commodities were gathered;

and

(5) by whose authority the perishable commodities were

gathered.

(b) The licensee or person required to be licensed, packer,

processor, or warehouseman shall keep records of statements

furnished under Subsection (a) in a permanent book or folder for a

minimum of three years from the date of the transaction and shall

make the records available for inspection by any interested party.

handler, or warehouseman shall:

(1) prepare a receipt detailing the quantity of

perishable commodities received from the producer or owner at the

time of receipt of the commodities; and

(2) on request, provide the receipt to the producer or

owner.

(d) The department periodically may investigate licensees,

persons required to be licensed, or persons alleged to be selling or

purchasing perishable commodities in violation of this chapter and,

without notice, may require evidence of purchase of any perishable

commodities in a person's possession or past possession.

SECTION 5.19. Section 101.017, Agriculture Code, is amended

to read as follows:

Sec. 101.017. RECORD OF SALE. (a) Except for a retailer, a

licensee or a person required to be licensed shall maintain for each

sale a complete and accurate record showing:

(1) the date of sale of the perishable commodities;

(2) the person to whom the perishable commodities were

sold;

(3) the grade and selling price of the perishable

commodities; and

(4) an itemized statement of expenses of any kind or

character incurred in the sale or handling of the perishable

commodities, including the amount of the commission to the licensee

or person required to be licensed.

(b) On demand of the department or of an owner, seller, or

agent of the owner or seller, the licensee or person required to be

licensed shall furnish the information demanded before the 11th day

following the date of demand.

maintain the information required to be kept by this section for at

least three years after the date of sale.

SECTION 5.20. Subsection (a), Section 101.020, Agriculture

Code, is amended to read as follows:

(a) A person commits an offense if the person:

(1) acts in violation of Section 101.003 by not

obtaining a license or registration or after receiving notice of

cancellation of a license or registration;

(2) acts or assumes to act as a transporting agent or

buying agent:

(A) without first obtaining an identification

card; or

(B) after receiving notice of cancellation of an

identification card;

(3) as a transporting agent or buying agent, fails and

refuses to turn over to the department an identification card in

accordance with Section 101.010(e);

(4) as a license holder or a person required to be

licensed, fails to furnish information under Section 101.017 before

the 11th day following the date of demand;

(5) as a license holder or a person required to be

licensed, fails to settle with a producer or seller on the grade and

quality of perishable commodities in the manner provided by Section

101.015;

(6) [~~as a cash dealer, pays for perishable commodities~~

~~by a means other than United States currency;~~

[~~(7)~~] as a license holder or a person required to be

licensed, transporting agent, or buying agent, violates a provision

of this chapter;

(7) [~~(8)~~ ~~acts or assumes to act as a cash dealer~~

~~without first registering as a cash dealer;~~

[~~(9)~~] as a license holder or a person required to be

licensed, buys or sells perishable commodities by weight and does

not have the perishable commodities weighed on scales that meet

state requirements;

(8) [~~(10)~~] fails to prepare and maintain records

required by Sections 101.016, 101.017, and 101.018; or

(9) [~~(11)~~] fails to provide records as required by

Sections 101.016 and 101.018.

SECTION 5.21. Subsection (a), Section 103.002, Agriculture

Code, is amended to read as follows:

(a) The produce recovery fund is a special trust fund with

the comptroller administered by the department, without

appropriation, for the payment of claims against license holders,

[~~and~~] retailers, and persons required to be licensed under Chapter

101.

SECTION 5.22. Section 103.005, Agriculture Code, is amended

to read as follows:

Sec. 103.005. INITIATION OF CLAIM. (a) A person who deals

with a license holder or a person required to be licensed under

Chapter 101 in the purchasing, handling, selling, and accounting

for sales of perishable commodities and who is aggrieved by an

action of the license holder or person required to be licensed as a

result of a violation of terms or conditions of a contract made by

the license holder or person required to be licensed for the sale of

Texas-grown produce may initiate a claim against the fund by filing

with the department:

(1) a sworn complaint against the license holder or

person required to be licensed; and

(2) a filing fee, as provided by department rule.

(b) A complaint and the fee under Subsection (a) [~~of this~~

~~section~~] must be filed on or before the second [~~first~~] anniversary

of the date that payment was due [~~of the violation~~], or recovery

from the fund is barred.

SECTION 5.23. Section 103.0055, Agriculture Code, is

amended to read as follows:

Sec. 103.0055. BANKRUPTCY OF MERCHANT OR RETAILER. For

purposes of this chapter, the amount due an aggrieved party by a

license holder or a person required to be licensed is not affected

by a final judgment of a bankruptcy court that releases the license

holder or person required to be licensed from the legal duty to

satisfy the claim.

SECTION 5.24. Subsection (a), Section 103.006, Agriculture

Code, is amended to read as follows:

(a) After a claim is initiated, the department shall

investigate the complaint and determine the amount due the

aggrieved party. If the amount determined by the department is

disputed by the license holder, a person required to be licensed, or

the aggrieved party, the board shall conduct a hearing on the claim

and determine the amount due the aggrieved party.

SECTION 5.25. Subsection (a), Section 103.007, Agriculture

Code, is amended to read as follows:

(a) If the amount determined by the department's

investigation to be due the aggrieved party is not disputed by the

license holder, a person required to be licensed, or the aggrieved

party, the department shall pay the claim within the limits

prescribed by this chapter.

SECTION 5.26. Subsections (a), (b), (d), and (f), Section

103.008, Agriculture Code, are amended to read as follows:

(a) In making payments from the fund the department may

[~~can~~] pay the aggrieved party the full value of their validated

claim, subject to Subsections (b) and (d) [~~all of the first $2,000~~

~~of any claim and no more than 70 percent of the claim above $2,000~~].

(b) The total payment of all claims arising from the same

contract with a license holder or a person required to be licensed

may not exceed $50,000 [~~$35,000~~].

(d) Payment of a claim filed against a person who is not

licensed in violation of Chapter 101 shall be limited to 80 percent

of the recovery prescribed under this section [~~The department may~~

~~not pay a claim against:~~

[~~(1)~~ ~~a person who was not licensed on the date the~~

~~contract on which the claim is based was entered into; or~~

[~~(2) a cash dealer registered under Chapter 101~~].

(f) If a license holder or a person required to be licensed

owes money to the produce recovery fund at the time the license

holder or person required to be licensed makes a claim against the

fund, the department shall offset the amount owed to the fund from

the amount dispensed.

SECTION 5.27. Section 103.009, Agriculture Code, is amended

by amending Subsections (a), (c), and (d) and adding Subsection (e)

to read as follows:

(a) If the department pays a claim against a license holder

or a person required to be licensed, the license holder or person

required to be licensed shall:

(1) reimburse the fund immediately or agree in writing

to reimburse the fund on a schedule to be determined by rule of the

department; and

(2) immediately pay the aggrieved party any amount due

that party or agree in writing to pay the aggrieved party on a

schedule to be determined by rule of the department.

does not reimburse the fund or pay the aggrieved party, or does not

agree to do so, in accordance with this section, the department

shall issue an order canceling the license and may not issue a new

license to or renew the license of that person for four years from

the date of cancellation. If the license holder or person required

to be licensed is a corporation, an officer or director of the

corporation or a person owning more than 25 percent of the stock in

the corporation may not be licensed under Chapter 101 during the

four-year period in which the corporation is ineligible for

licensing.

(d) Subsections (a) and (b) do [~~This section does~~] not apply

to a license holder or a person required to be licensed who is

released by a final judgment of a bankruptcy court from the legal

duty to satisfy the claim paid by the department.

(e) The amount to be reimbursed under this section shall be

one and one-half times the amount of the claim paid if the person

required to reimburse the department was not licensed on the date on

which the transaction forming the base of the claim occurred.

SECTION 5.28. Section 103.010, Agriculture Code, is amended

to read as follows:

Sec. 103.010. SUBROGATION OF RIGHTS. If the department

pays a claim against a license holder or a person required to be

licensed, the department is subrogated to all rights of the

aggrieved party against the license holder or person required to be

licensed to the extent of the amount paid to the aggrieved party.

SECTION 5.29. Subsection (b), Section 103.011, Agriculture

Code, is amended to read as follows:

(b) A person registered as a [~~cash dealer or a~~] marketing

association organized under Chapter 52 that handles citrus fruit

only for its members is exempt from payment of the fee under this

section.

SECTION 5.30. Subsections (a) and (b), Section 103.013,

Agriculture Code, are amended to read as follows:

(a) A person commits an offense if the person acts or

assumes to act as a license holder under Chapter 101 without first

paying the annual fee required by Section 103.011 [~~this chapter~~].

(b) An offense under this section is a Class B misdemeanor

[~~punishable by a fine of not more than $500~~].

SECTION 5.31. Subsection (a), Section 121.005, Agriculture

Code, is amended to read as follows:

(a) Each rose plant or shipment of rose plants shall be

labeled with[:

[~~(1)~~] the proper grade[~~; and~~

[~~(2)~~ ~~the number of the certificate of authority of the~~

~~person selling or offering for sale the plant or shipment~~].

SECTION 5.32. Subsection (f), Section 52.092, Election

Code, is amended to read as follows:

(f) Precinct offices shall be listed in the following order:

(1) county commissioner;

(2) justice of the peace;

(3) constable[;

[~~(4) public weigher~~].

SECTION 5.33. Subsection (a), Section 172.024, Election

Code, is amended to read as follows:

(a) The filing fee for a candidate for nomination in the

general primary election is as follows:

(1) United States senator $5,000

(2) office elected statewide, except United States

senator 3,750

(3) United States representative 3,125

(4) state senator 1,250

(5) state representative 750

(6) member, State Board of Education 300

(7) chief justice or justice, court of appeals, other

than a justice specified by Subdivision (8) 1,875

(8) chief justice or justice of a court of appeals that

serves a court of appeals district in which a county with a

population of more than 750,000 is wholly or partly

situated 2,500

(9) district judge or judge specified by Section

52.092(d) for which this schedule does not otherwise prescribe a

fee 1,500

(10) district or criminal district judge of a court in

a judicial district wholly contained in a county with a population

of more than 850,000 2,500

(11) judge, statutory county court, other than a judge

specified by Subdivision (12) 1,500

(12) judge of a statutory county court in a county with

a population of more than 850,000 2,500

(13) district attorney, criminal district attorney,

or county attorney performing the duties of a district

attorney 1,250

(14) county commissioner, district clerk, county

clerk, sheriff, county tax assessor-collector, county treasurer,

or judge, constitutional county court:

(A) county with a population of 200,000

or more 1,250

(B) county with a population of under

200,000 750

(15) justice of the peace or constable:

(A) county with a population of 200,000

or more 1,000

(B) county with a population of under

200,000 375

(16) county surveyor or[,] inspector of hides and

animals[~~, or public weigher~~] 75

(17) office of the county government for which this

schedule does not otherwise prescribe a fee 750

SECTION 5.34. Subsection (b), Section 62.160, Labor Code,

is amended to read as follows:

(b) Sections 62.051-62.054 [~~and Subchapter C~~] do not apply

to an agricultural employer with respect to an employee engaged in

the production of livestock.

SECTION 5.35. The following statutes are repealed:

(1) Section 13.252, Agriculture Code;

(2) Section 13.253, Agriculture Code;

(3) Section 13.2535, Agriculture Code;

(4) Section 13.254, Agriculture Code;

(5) Subsection (b), Section 52.035, Agriculture Code;

(6) Section 52.152, Agriculture Code;

(7) Subsection (b), Section 101.006, Agriculture

Code;

(8) Subsection (c), Section 103.008, Agriculture

Code;

(9) Section 121.004, Agriculture Code;

(10) Subdivision (1), Section 62.002, Labor Code; and

(11) Subchapter C, Chapter 62, Labor Code.

SECTION 5.36. (a) The changes in law made by this Act to

Subchapter E, Chapter 13, Agriculture Code, do not affect the

entitlement of a public weigher or deputy public weigher elected or

appointed before the effective date of this Act to serve as a public

weigher or deputy public weigher for the remainder of the public

weigher's or deputy public weigher's term. A public weigher or

deputy public weigher elected or appointed before the effective

date of this Act is governed by the law in effect immediately before

the effective date of this Act, and the former law is continued in

effect for that purpose.

(b) The changes in law made by this Act to Section 103.008,

Agriculture Code, apply only to a claim for payment filed on or

after the effective date of this Act. A claim filed before that

date is governed by the law in effect on the date the claim was

filed, and the former law is continued in effect for that purpose.

ARTICLE 6. GENERAL LICENSING PROVISIONS

SECTION 6.01. Subsections (a) and (c), Section 12.020,

Agriculture Code, are amended to read as follows:

(a) If a person violates a provision of law [~~this code~~]

described by Subsection (c) [~~of this section~~] or a rule or order

adopted by the department under a provision of law [~~this code~~]

described by Subsection (c) [~~of this section~~], the department may

assess an administrative penalty against the person as provided by

this section.

section and the applicable penalty amounts are as follows:

Provision

Amount of Penalty

Chapter 41

not more than $5,000 [~~$1,000~~]

Chapters 13, 14A, 18, 46, 61, 94,

95, 101, 102, 103, 121, 125, 132,

and 134

not more than $5,000 [~~$500~~]

Subchapter B, Chapter 71

Chapter 19

Chapter 76

not more than $5,000 [~~$2,000~~]

Subchapters A and C, Chapter 71

Chapters 72, 73, and 74

not more than $5,000

Chapter 14

not more than $10,000

Chapter 1951, Occupations Code

not more than $5,000

Chapter 153, Natural Resources

Code	not more than $5,000.

SECTION 6.02. Section 12.023, Agriculture Code, is amended

to read as follows:

Sec. 12.023. EXPIRATION OF REGISTRATION OR LICENSES. The

department by rule shall [~~may~~] adopt a system under which

registrations or licenses required by the department, including

licenses issued under Chapter 1951, Occupations Code, expire on

various dates during the year. The department may increase or

decrease the term of an initial or renewal license or registration

so that all licenses held by a person or a group of license holders

expire on the same date. For the period [~~year~~] in which the

registration or license expiration date is changed, registration or

license fees shall be prorated on a monthly basis so that each

registrant or licensee pays only that portion of the fee that is

allocable to the number of months during which the registration or

license is valid. On the next renewal of the registration or

license [~~on the new expiration date~~], the total renewal fee is

payable.

SECTION 6.03. Title 2, Agriculture Code, is amended by

adding Chapter 12A to read as follows:

CHAPTER 12A. GENERAL LICENSING PROVISIONS

SUBCHAPTER A. POWERS AND DUTIES OF DEPARTMENT RELATED TO LICENSING

Sec. 12A.001. APPLICABILITY OF PROVISIONS. The general

licensing, regulatory, and enforcement provisions of Chapter 12 and

this chapter apply to licensing and regulatory programs

administered by the department under any law.

Sec. 12A.002. CEASE AND DESIST ORDER. (a) If it appears to

the commissioner that a person who is not licensed by the department

is violating a statute or rule that requires the person to hold a

license issued by the department or a statute or rule relating to an

activity regulated by the department, the commissioner after notice

and opportunity for a hearing may issue a cease and desist order

prohibiting the person from engaging in the activity.

(b) A violation of an order under this section constitutes

grounds for imposing an administrative penalty.

Sec. 12A.003. RISK-BASED INSPECTIONS. For each person

licensed or regulated by the department that the department may

inspect:

(1) the department may conduct additional inspections

based on a schedule of risk-based inspections using the following

criteria:

(A) the type and nature of the person;

(B) whether there has been a prior violation by

the person;

(D) any history of complaints involving the

person; and

(E) any other risk-based factor identified by the

department; and

(2) the department may waive any inspection

requirement under law if an emergency arises or to accommodate

complaint investigation or risk-based inspection schedules.

[Sections 12A.004-12A.050 reserved for expansion]

SUBCHAPTER B. PUBLIC INTEREST INFORMATION AND COMPLAINT PROCEDURES

Sec. 12A.051. INFORMATION REGARDING COMPLAINTS AND

ENFORCEMENT PROCESS. (a) The department shall:

(1) inform applicants, license holders, and the public

on the department's Internet website, in department brochures, and

on any other available information resource about the department's

enforcement process, including each step in the complaint

investigation and resolution process, from initial filing through

final appeal, and the opportunity to request an informal settlement

conference; and

(2) inform license holders that a license holder may

obtain information about a complaint made against the license

holder and may obtain on request a copy of the complaint file.

(b) Except as provided by Subsection (d), the department

shall provide to a license holder against whom a complaint has been

filed:

(1) the allegations made against the license holder in

the complaint; and

(2) on the license holder's request, any information

obtained by the department in its investigation of the complaint.

under Subsection (b) in a timely manner to allow the license holder

time to respond to the complaint.

(d) The department is not required to provide the following

information to a license holder:

(1) the name of a confidential informant whose

testimony will not be used in any hearing as evidence against the

license holder;

(2) attorney-client communications;

(3) attorney work product; or

(4) any other information that is confidential or not

subject to disclosure under law, rule of evidence, or rule of civil

procedure.

Sec. 12A.052. COMPLAINT AND VIOLATION ANALYSIS. The

department shall analyze complaints filed with and violations

discovered by the department to identify any trends or issues

related to certain violations, including:

(1) the reason for each complaint or violation;

(2) how each complaint or violation was resolved; and

(3) the subject matter of each complaint or violation

that was not within the jurisdiction of the department and how the

department responded to the complaint or violation.

[Sections 12A.053-12A.100 reserved for expansion]

SUBCHAPTER C. ISSUANCE AND RENEWAL OF LICENSES

Sec. 12A.101. REPLACEMENT LICENSE; FEE. The department

shall issue to a license holder whose license has been lost or

destroyed or whose name has been changed a replacement license if

the license holder submits to the department:

(1) an appropriate application; and

(2) a fee in an amount established by department rule.

[Sections 12A.102-12A.150 reserved for expansion]

SUBCHAPTER D. EXAMINATIONS

Sec. 12A.151. EXAMINATION PROCEDURES. For each licensing

examination administered by the department, the department shall:

(1) adopt policies and guidelines detailing the

procedures for the testing process, including test admission and

internal test administration procedures; and

(2) post on the department's Internet website the

policies that reference the testing procedures.

Sec. 12A.152. EVALUATION OF EXAMINATION QUESTIONS. For

each licensing examination administered by the department, the

department shall periodically evaluate the effectiveness of

examination questions in objectively assessing an applicant's

knowledge.

[Sections 12A.153-12A.200 reserved for expansion]

SUBCHAPTER E. PENALTIES AND ENFORCEMENT PROCEDURES

Sec. 12A.201. INFORMAL PROCEEDINGS. (a) The department by

rule shall adopt procedures governing:

(1) informal disposition of a contested case under

Section 2001.056, Government Code; and

(2) an informal proceeding held in compliance with

Section 2001.054, Government Code.

(b) The department shall offer the opportunity to conduct an

informal settlement conference by telephone.

(1) provide a license holder sufficient opportunity to

indicate whether the terms of a proposed order are acceptable to the

license holder;

(2) indicate in the notice of violation that the

license holder has the opportunity described by Subdivision (1);

and

(3) allow a license holder who does not agree with a

proposed order to request an informal settlement conference.

SECTION 6.04. The heading to Section 76.113, Agriculture

Code, is amended to read as follows:

Sec. 76.113. TERM [~~EXPIRATION~~] AND RENEWAL OF LICENSES.

SECTION 6.05. Subsections (a) and (b), Section 76.113,

Agriculture Code, are amended to read as follows:

(a) Each pesticide [~~commercial applicator or noncommercial~~]

applicator license issued under this chapter, other than a private

applicator license, expires at the end of the license period

established by department rule [~~on the first anniversary of the~~

~~date on which it was issued or renewed~~].

(b) Each private applicator license is valid for five years

[~~expires on the fifth anniversary of the date on which it was issued~~

~~or renewed~~].

SECTION 6.06. Section 76.151, Agriculture Code, is amended

by amending Subsection (a) and adding Subsection (a-1) to read as

follows:

(a) The [~~For the purpose of inspection, examination, or~~

~~sampling, the~~] department, at any time and without notice during

regular business hours, may:

(1) [~~is entitled to~~] enter and inspect a [at

~~reasonable hours any~~] building or place owned, controlled, or

operated by a person engaged in any activity regulated under this

chapter or Chapter 1951, Occupations Code; and

(2) inspect and review any record maintained by a

person engaged in any activity regulated under this chapter or

Chapter 1951, Occupations Code [~~registrant or dealer if from~~

~~probable cause it appears that the building or place contains a~~

~~pesticide~~].

(a-1) The department may enter and inspect a building or

place or inspect and review any record under Subsection (a) as

necessary to:

(1) ensure compliance with this chapter or Chapter

1951, Occupations Code; or

(2) investigate a complaint made to the department.

SECTION 6.07. Subsection (a), Section 76.1555, Agriculture

Code, is amended to read as follows:

(a) If a person violates a provision of this chapter or

Chapter 1951, Occupations Code, or a rule or order adopted by the

department under this chapter or Chapter 1951, Occupations Code,

the department may assess an administrative penalty against the

person as provided by Section 12.020, except that the penalty for

each violation may [~~shall~~] not exceed $5,000 [~~$4,000 for all~~

~~violations related to a single incident~~]. Each day a violation

continues or occurs may be considered a separate violation for

purposes of penalty assessment.

SECTION 6.08. Section 132.024, Agriculture Code, is amended

to read as follows:

Sec. 132.024. LICENSE TERM [~~EXPIRATION~~]. A license issued

or renewed under this chapter is valid for one year [~~expires on the~~

~~first anniversary of the date of issuance or renewal~~].

SECTION 6.09. The changes in law made by this article to

Subsection (c), Section 12.020 and Subsection (a), Section 76.1555,

Agriculture Code, apply only to a violation committed on or after

the effective date of this Act. A violation committed before the

effective date of this Act is governed by the law in effect on the

date the violation occurred, and the former law is continued in

effect for that purpose.

ARTICLE 7. STRUCTURAL PEST CONTROL

SECTION 7.01. Section 12.0201, Agriculture Code, is amended

to read as follows:

Sec. 12.0201. LICENSE SANCTIONS. (a) In addition to other

sanctions provided by law, the department may revoke, modify,

suspend, or refuse to issue or renew a license, assess an

administrative penalty, place on probation a person whose license

has been suspended, or reprimand a license holder if the department

finds that the practitioner:

(1) violated a provision of this code or Chapter 1951,

Occupations Code;

(2) violated a rule adopted by the department under

this code or Chapter 1951, Occupations Code; or

(3) after appropriate notice, failed to comply with an

order of the department.

(b) In addition to any other actions permitted under this

code or Chapter 1951, Occupations Code, if a license suspension is

probated, the department may require the practitioner:

(1) to maintain additional information in the

practitioner's records;

(2) to report regularly to the department on matters

that are the basis of the probation;

(3) to limit practice to the areas prescribed by the

department; or

(4) to continue or review professional education until

the practitioner attains a degree of skill satisfactory to the

department in those areas that are the basis of the probation.

SECTION 7.02. Subdivision (16), Section 1951.002,

Occupations Code, is amended to read as follows:

(16) "Technician" means a person who holds a license

under this chapter and who, under [~~the~~] direct supervision of a

certified noncommercial applicator or, as an employee of a holder

of a structural pest control business license, performs supervised

pesticide applications, maintains or uses structural pest control

devices, makes sales presentations, or identifies pest infestation

or damage. The term does not include a person whose duties are

solely clerical or are otherwise completely disassociated with pest

control.

SECTION 7.03. Section 1951.003, Occupations Code, is

amended to read as follows:

Sec. 1951.003. BUSINESS OF STRUCTURAL PEST CONTROL.

(a) In this chapter, a person is engaged in the "business of

structural pest control" if the person performs[~~, offers to~~

~~perform, or advertises for or solicits the person's performance of~~]

any of the following services for compensation, including services

performed as a part of the person's employment:

(1) identifying infestations or making inspections

for the purpose of identifying or attempting to identify

infestations of:

(A) arthropods, including insects, spiders,

mites, ticks, and related pests, wood-infesting organisms,

rodents, weeds, nuisance birds, and any other obnoxious or

undesirable animals that may infest households, railroad cars,

ships, docks, trucks, airplanes, or other structures or their

contents; or

(B) pests or diseases of trees, shrubs, or other

plantings in a park or adjacent to a residence, business

establishment, industrial plant, institutional building, or

street;

(2) making oral or written inspection reports,

recommendations, estimates, or bids with respect to an infestation

described by Subdivision (1); or

(3) making contracts, or submitting bids based on an

inspection for services or performing services designed to prevent,

control, or eliminate an infestation described by Subdivision (1)

by the use of insecticides, pesticides, rodenticides, fumigants,

allied chemicals or substances, or mechanical devices.

(b) A person is not engaged in the business of structural

pest control if the person is a clerical employee or a manual

laborer and the person does not:

(1) identify pests;

(2) make inspections, recommendations, estimates,

bids, or contracts;

(3) provide estimates, bids, or contracts based on an

inspection; or

(4) apply insecticides, pesticides, rodenticides,

fumigants, allied chemicals, or other related substances regulated

by the department.

SECTION 7.04. Subchapter A, Chapter 1951, Occupations Code,

is amended by adding Section 1951.007 to read as follows:

Sec. 1951.007. APPLICABILITY OF AGRICULTURE CODE LICENSING

PROVISIONS. A provision of the Agriculture Code that applies

generally to licensing or regulatory programs administered by the

department, including a provision that refers generally to

licensing or regulatory programs under the Agriculture Code,

applies to this chapter.

SECTION 7.05. Subsection (a), Section 1951.053,

Occupations Code, is amended to read as follows:

(a) Except as provided by Sections 1951.212 and

1951.457(c), this chapter does not apply to:

(1) a person who performs pest control work on growing

plants, trees, shrubs, grass, or other horticultural plants if the

person[:

[~~(A)~~ ~~holds a florist or nursery registration~~

~~certificate from the department under Section 71.043, Agriculture~~

~~Code, other than a registration certificate that permits the sale,~~

~~lease, or distribution of nursery products or floral items only at a~~

~~temporary market; and~~

[~~(B)~~] holds a commercial or noncommercial

applicator license from the department and issued under Chapter 76,

Agriculture Code, that covers the pest control work; or

(2) a person who performs pest control work on growing

plants, trees, shrubs, grass, or other horticultural plants or

rights-of-way if the person:

(A) is employed by a political subdivision or a

cemetery;

(B) is engaged in pest control work or vegetation

management for the political subdivision or cemetery;

applicator license from the department and issued under Chapter 76,

Agriculture Code, that covers pest control work or is under the

direct supervision of a person who holds a commercial or

noncommercial applicator license from the department and issued

under Chapter 76, Agriculture Code, that covers pest control work;

and

(D) complies with annual continuing education

required by the department.

SECTION 7.06. Subsection (a), Section 1951.101,

Occupations Code, is amended to read as follows:

(a) The committee consists of nine members appointed by the

commissioner as follows:

(1) two members who are experts in structural pest

control application;

(2) three members who represent the public;

(3) one member from an institution of higher education

who is knowledgeable in the science of pests and pest control;

(4) one member who represents the interests of

structural pest control operators and who is appointed based on

recommendations provided by a trade association of operators;

(5) one member who represents the interests of

consumers [~~and who is appointed based on recommendations provided~~

~~by consumer advocacy groups or associations~~]; and

(6) the commissioner of state health services or the

commissioner's designee.

SECTION 7.07. Section 1951.105, Occupations Code, is

amended to read as follows:

Sec. 1951.105. RULES GOVERNING COMMITTEE; COMMITTEE

MEETINGS. (a) The department shall adopt rules for the operation

of the committee, including rules governing:

(1) the purpose, role, responsibility, and goals of

the committee;

(2) the quorum requirements for the committee;

(3) the qualifications required for members of the

committee, which may include experience and geographic

representation requirements;

(4) the appointment process for the committee;

(5) the members' terms;

(6) the training requirements;

(7) a process to regularly evaluate the effectiveness

of the committee; and

(8) a requirement that the committee comply with

Chapter 551, Government Code.

(b) The committee shall:

(1) meet quarterly;

(2) operate under Robert's Rules of Order; and

(3) record the minutes of each meeting.

SECTION 7.08. Subsection (a), Section 1951.205,

Occupations Code, is amended to read as follows:

(a) The department, with the advice of the committee, shall

adopt rules as authorized under this chapter governing the methods

and practices of structural pest control that the department

determines are necessary to protect the public's health and welfare

and prevent adverse effects on human life and the environment. Each

rule adopted must cite the section of this chapter that authorizes

the rule.

SECTION 7.09. Subsection (a), Section 1951.207,

Occupations Code, is amended to read as follows:

(a) The department by rule shall adopt a policy that[:

[~~(1)~~] requires a business holding a structural pest

control business license to be inspected by a field inspector at

least once:

(1) [~~(A)~~] in the business's first year of operation;

and

(2) [~~(B)~~] every four years after the first year of

operation[;

[~~(2)~~ ~~provides for additional inspections based on a~~

~~schedule of risk-based inspections using the following criteria:~~

[~~(A) the type and nature of the business;~~

[~~(B)~~ ~~whether there has been a prior violation by~~

~~the business;~~

[~~(C) the inspection history of the business;~~

[~~(D)~~ ~~any history of complaints involving the~~

~~business; and~~

[~~(E)~~ ~~any other factor determined by the~~

~~department by rule; and~~

[~~(3)~~ ~~provides that the department may waive the~~

~~inspection requirement on a case-by-case basis if an emergency~~

~~arises or to accommodate complaint investigation schedules~~].

SECTION 7.10. Subsection (b), Section 1951.212,

Occupations Code, is amended to read as follows:

(b) The department shall use the structural pest control [an

~~existing~~] advisory committee [~~or create a new advisory committee~~]

to assist the department in developing the standards for the

integrated pest management program. In developing the standards,

the advisory committee shall consult with a person knowledgeable in

the area of integrated pest management in schools.

SECTION 7.11. Subsection (f), Section 1951.254,

Occupations Code, as amended by Chapters 885 (H.B. 2278) and 890

(H.B. 2458), Acts of the 80th Legislature, Regular Session, 2007,

is reenacted to read as follows:

(f) The information sheet must include:

(1) the names and telephone numbers of the department

and the Department of State Health Services;

(2) the telephone number of any pesticide hotline

established by a state or federal agency or by a state university;

(3) a statement of a consumer's rights under Chapter

601, Business & Commerce Code, to cancel a home solicitation

transaction; and

(4) information concerning the availability of any

pretreatment inspection service that may be provided by the

department under Section 1951.210.

SECTION 7.12. Section 1951.301, Occupations Code, is

amended by amending Subsection (d) and adding Subsection (f) to

read as follows:

(d) A person engaged in the business of structural pest

control must hold a structural pest control business license for

each place of business, including each branch office. A certified

commercial applicator, certified noncommercial applicator, or

licensed technician is not required to obtain a separate license

for each branch office of an employer.

(f) A certified commercial applicator or technician license

must be associated with a business license holder. The name of the

employer of a licensed commercial applicator or technician must be

printed on the face of the license issued to a commercial applicator

or technician.

SECTION 7.13. Subsection (a), Section 1951.306,

Occupations Code, is amended to read as follows:

(a) The department may waive any license requirement under

this chapter for an applicant who holds a license issued by another

state that has license requirements substantially equivalent to

those of this state. The department may enter into reciprocal

licensing agreements with other states that have license

requirements substantially equivalent to those of this state.

SECTION 7.14. Section 1951.308, Occupations Code, is

amended to read as follows:

Sec. 1951.308. LICENSE EXPIRATION. A license issued under

this chapter expires at the end of the license period as determined

by department rule [~~(a)~~ ~~The department by rule may adopt a system~~

~~under which licenses expire on various dates during the year.~~

[~~(b)~~ ~~For the year in which the license expiration date is~~

~~changed, license fees payable on December 31 shall be prorated on a~~

~~monthly basis so that each license holder pays only that portion of~~

~~the license fee that is allocable to the number of months during~~

~~which the license is valid. On renewal of the license on the new~~

~~expiration date, the total license renewal fee is payable~~].

SECTION 7.15. Section 1951.453, Occupations Code, is

amended to read as follows:

Sec. 1951.453. PEST CONTROL INFORMATION FOR INDOOR

TREATMENTS: RESIDENTIAL PROPERTY. (a) For an indoor treatment at

a private residence that is not rental property, a certified

applicator or technician shall make available[:

[~~(1) give~~] a pest control information sheet developed

under Section 1951.254 to the owner of the residence before each

treatment begins[~~; or~~

[~~(2)~~ ~~if the owner is not available at the time~~

~~treatment begins, leave the information sheet in a conspicuous~~

~~place in the residence~~].

(b) For an indoor treatment at a residential rental property

with fewer than five rental units, a certified applicator or

technician shall make available [~~leave~~] a pest control information

sheet developed under Section 1951.254 to the tenant of [in] each

unit [~~at the time of each treatment~~].

with five or more rental units, a certified applicator or

technician shall make available [~~provide~~] a pest control

information sheet developed under Section 1951.254 and a pest

control sign developed under that section to the owner or manager of

the property. The owner or manager or an employee or agent of the

owner or manager, other than the certified applicator or

technician, shall notify residents who live in the direct area of

the treatment or in an adjacent area by:

(1) posting the sign in an area of common access at

least 48 hours before each planned treatment; or

(2) leaving the information sheet on the front door of

each unit or in a conspicuous place inside each unit at least 48

hours before each planned treatment.

SECTION 7.16. Section 1951.454, Occupations Code, is

amended to read as follows:

Sec. 1951.454. PEST CONTROL INFORMATION FOR INDOOR

TREATMENTS: WORKPLACE. For an indoor treatment at a workplace, a

certified applicator or technician shall make available [~~provide~~] a

pest control information sheet developed under Section 1951.254 and

a pest control sign developed under that section to the employer or

the building manager. The employer or building manager or an

employee or agent of the owner or manager, other than the certified

applicator or technician, shall notify the persons who work at the

workplace of the date of the planned treatment by:

(1) posting the sign in an area of common access that

the persons are likely to check on a regular basis at least 48 hours

before each planned treatment; and

(2) providing the information sheet to any person

working in the building on a request made by the person during

normal business hours.

SECTION 7.17. Subsection (a), Section 1951.455,

Occupations Code, is amended to read as follows:

(a) For an indoor treatment at a building that is a

hospital, nursing home, hotel, motel, lodge, warehouse,

food-processing establishment, school, or day-care center, a

certified applicator or technician shall make available [~~provide~~] a

pest control information sheet developed under Section 1951.254 and

a pest control sign developed under that section to the chief

administrator or building manager. The chief administrator or

building manager shall notify the persons who work in the building

of the treatment by:

(1) posting the sign in an area of common access that

the persons are likely to check on a regular basis at least 48 hours

before each planned treatment; and

(2) providing the information sheet to a person

working in the building on request of the person.

SECTION 7.18. Subsections (a) and (b), Section 1951.457,

Occupations Code, are amended to read as follows:

(a) For an outdoor treatment at a private residence that is

not rental property, a certified applicator or technician shall

make available [~~leave~~] a pest control information sheet developed

under Section 1951.254 at the residence before the treatment

begins.

(b) For an outdoor treatment at a residential rental

property with fewer than five rental units, a certified applicator

or technician shall make available [~~leave~~] a pest control

information sheet at each unit at the time of treatment.

SECTION 7.19. The following provisions of the Occupations

Code are repealed:

(1) Section 1951.202;

(2) Section 1951.310;

(3) Section 1951.311;

(4) Subsection (d), Section 1951.456;

(5) Subsections (c) and (d), Section 1951.501;

(6) Subchapter L, Chapter 1951;

(7) Section 1951.604; and

(8) Section 1951.605.

SECTION 7.20. The changes in law made by this Act by the

repeal of Subsections (c) and (d), Section 1951.501, Occupations

Code, apply only to a violation of Chapter 1951, Occupations Code,

committed on or after the effective date of this Act. A violation

committed before the effective date of this Act is governed by the

law in effect on the date the violation occurred, and the former law

is continued in effect for that purpose. A violation committed on

or after the effective date of this Act is governed by Section

12.0201, Agriculture Code, as amended by this Act, and other

applicable law.

SECTION 7.21. The change in law made by this Act by the

repeal of Section 1951.310, Occupations Code, applies only to the

renewal of a license under Chapter 1951, Occupations Code, that

expires on or after the effective date of this Act. The renewal of a

license that expires before the effective date of this Act is

governed by the law in effect on the date the license expired, and

the former law is continued in effect for that purpose. An

application submitted on or after the effective date of this Act is

governed by Section 12.024, Agriculture Code, and other applicable

law.

SECTION 7.22. The change in law made by this Act by the

repeal of Section 1951.311, Occupations Code, applies only to an

application for a replacement license issued under Chapter 1951,

Occupations Code, submitted on or after the effective date of this

Act. An application submitted before the effective date of this Act

is governed by the law in effect on the date the application was

submitted, and the former law is continued in effect for that

purpose. An application submitted on or after the effective date of

this Act is governed by Section 12A.101, Agriculture Code, as added

by this Act, and other applicable law.

SECTION 7.23. The change in law made by this Act by the

repeal of Subchapter L, Chapter 1951, Occupations Code, applies

only to a violation committed on or after the effective date of this

Act. A violation committed before that date is governed by the law

in effect on the date the violation occurred, and the former law is

continued in effect for that purpose. A violation committed on or

after the effective date of this Act is governed by Section 12.020,

Agriculture Code, as amended by this Act, and other applicable law.

ARTICLE 8. SUNSET DATE AND ACROSS-THE-BOARD RECOMMENDATIONS

SECTION 8.01. Section 11.003, Agriculture Code, is amended

to read as follows:

Sec. 11.003. SUNSET PROVISION. The Department of

Agriculture is subject to Chapter 325, Government Code (Texas

Sunset Act). Unless continued in existence as provided by that

chapter, the department is abolished September 1, 2021 [~~2009~~].

SECTION 8.02. Section 12.0135, Agriculture Code, is amended

to read as follows:

Sec. 12.0135. CONFLICT PROVISIONS. (a) A person may not

be a department employee employed in a "bona fide executive,

administrative, or professional capacity," as that phrase is used

for purposes of establishing an exemption to the overtime

provisions of the federal Fair Labor Standards Act of 1938 (29

U.S.C. Section 201 et seq.), if:

(1) the person is an officer, employee, or paid

consultant of a Texas trade association in the field of

agriculture; or

(2) the person's spouse is an officer, manager, or paid

consultant of a Texas trade association in the field of

agriculture.

(b) A person may not act as the general counsel to the

commissioner or the department if the person is required to

of the person's activities for compensation on behalf of a

profession related to the operation of the department.

~~statewide Texas trade association or an affiliate of a national~~

~~trade association in the field of agriculture may not be an employee~~

~~of the department who is exempt from the state's position~~

~~classification plan or is compensated at or above the amount~~

~~prescribed by the General Appropriations Act for step 1, salary~~

~~group 17, of the position classification salary schedule.~~

[~~(c)~~ ~~A person who is the spouse of an officer, manager, or~~

~~paid consultant of a statewide Texas trade association or an~~

~~affiliate of a national trade association in the field of~~

~~agriculture may not be an employee of the department who is exempt~~

~~from the state's position classification plan or is compensated at~~

~~or above the amount prescribed by the General Appropriations Act~~

~~for step 1, salary group 17, of the position classification salary~~

~~schedule.~~

[~~(d) For the purposes of~~] this section, "Texas [a] trade

association" means [is] a [~~nonprofit,~~] cooperative[,] and

voluntarily joined statewide association of business or

professional competitors in this state designed to assist its

members and its industry or profession in dealing with mutual

business or professional problems and in promoting their common

interest.

SECTION 8.03. Chapter 12, Agriculture Code, is amended by

adding Section 12.0203 to read as follows:

Sec. 12.0203. NEGOTIATED RULEMAKING AND ALTERNATIVE

DISPUTE RESOLUTION. (a) The commissioner shall develop and

implement a policy to encourage the use of:

(1) negotiated rulemaking procedures under Chapter

2008, Government Code, for the adoption of department rules; and

(2) appropriate alternative dispute resolution

procedures under Chapter 2009, Government Code, to assist in the

resolution of internal and external disputes under the department's

jurisdiction.

(b) The department's procedures relating to alternative

dispute resolution must conform, to the extent possible, to any

model guidelines issued by the State Office of Administrative

Hearings for the use of alternative dispute resolution by state

agencies.

(1) coordinate the implementation of the policy

adopted under Subsection (a);

(2) serve as a resource for any training needed to

implement the procedures for negotiated rulemaking or alternative

dispute resolution; and

(3) collect data concerning the effectiveness of those

procedures, as implemented by the department.

SECTION 8.04. Chapter 12, Agriculture Code, is amended by

adding Section 12.0271 to read as follows:

Sec. 12.0271. RURAL ECONOMIC DEVELOPMENT AND INVESTMENT

PROGRAM. (a) From funds appropriated for that purpose, the

commissioner shall establish and administer a financial assistance

program to encourage private economic development in rural areas.

Financial assistance under the program may be provided only to:

(1) a county with a population of not more than 75,000;

(2) a municipality with a population of not more than

50,000; or

(3) an economic development corporation or community

development financial institution that primarily represents a

county or municipality described by this subsection.

(b) Financial assistance under Subsection (a) may be used

only for a project relating to:

(1) the acquisition or development of land, easements,

or rights-of-way;

(2) attracting new private enterprises to the county

or municipality, including:

(A) manufacturing facilities;

(B) freight storage facilities;

(D) other nonretail private enterprises;

(3) the construction, extension, or other improvement

of:

(A) water or waste disposal facilities; or

(B) transportation infrastructure; or

(4) any other activity relating to private economic

development that the commissioner determines will encourage

economic and infrastructure development in a rural area.

commissioner may provide financial assistance to an eligible

county, municipality, community development financial institution,

or economic development corporation by:

(1) extending credit by direct loan, based on the

credit of the county, municipality, community development

financial institution, or economic development corporation;

(2) providing a credit enhancement;

(3) effectively lowering interest rates;

(4) financing a purchase or lease agreement in

connection with an economic or infrastructure development project;

(5) providing methods of leveraging money from sources

other than this state that are related to the project for which the

assistance is provided.

(d) A county, municipality, community development financial

institution, or economic development corporation that receives

funds under Subsection (c) shall segregate the funds from other

funds under the control of the county, municipality, or economic

development corporation and use the funds only for a purpose

described by this section. Any funds disbursed through the program

must be repaid on terms determined by the department.

(e) The department shall adopt rules necessary to implement

this section.

SECTION 8.05. Chapter 12, Agriculture Code, is amended by

adding Section 12.047 to read as follows:

Sec. 12.047. USE OF TECHNOLOGY. The commissioner shall

implement a policy requiring the department to use appropriate

technological solutions to improve the department's ability to

perform its functions. The policy must ensure that the public is

able to interact with the department on the Internet.

ARTICLE 9. ADDITIONAL PROVISIONS

SECTION 9.01. Subsection (a), Section 11.005, Agriculture

Code, is amended to read as follows:

(a) To be eligible for election as commissioner or

appointment to fill a vacancy in the office of commissioner, a

person must:

(1) have been engaged, for at least five of the 10

years preceding the year in which the person is elected or appointed

to the person's initial term, in the business of agriculture;

(2) have worked, for the five-year period preceding

the calendar year in which the person is elected or appointed to the

person's initial term, for a state or federal agency in a position

directly related to agriculture; [or]

(3) have owned or operated, for at least five of the 10

years preceding the year in which the person is elected or appointed

to the person's initial term, farm, ranch, or timber land that

qualifies for agricultural use appraisal under Subchapter C,

Chapter 23, Tax Code, and be participating, in the calendar year in

which the person is elected or appointed to the person's initial

term, in a farm program administered by the federal Agricultural

Stabilization and Conservation Service; or

(4) have worked, for at least five years at any time

before the calendar year in which the person is elected or appointed

to the person's initial term, for the Texas Agricultural Council,

an organization that is a member of the Texas Agricultural Council,

or another agricultural producer association.

SECTION 9.02. Section 12.022, Agriculture Code, is amended

to read as follows:

Sec. 12.022. AUTHORITY TO SOLICIT AND ACCEPT GIFTS, GRANTS,

AND DONATIONS. The department may solicit and [~~is authorized to~~]

accept gifts, grants, and donations of money, services, or property

from any person. Money received by the department under this

section may be expended or distributed for any public purpose

related to the department's duties [~~and shall file annually with~~

~~the governor and the presiding officer of each house of the~~

~~legislature a complete and detailed written report accounting for~~

~~all gifts, grants, and donations received and disbursed, used, or~~

~~maintained by the department during the preceding fiscal year.~~

~~This report shall be included in the annual report required by~~

~~Section 12.014 of this chapter~~].

SECTION 9.03. Chapter 12, Agriculture Code, is amended by

adding Section 12.0027 to read as follows:

Sec. 12.0027. NUTRITION OUTREACH PROGRAM. (a) The

department may develop an outreach program to promote better health

and nutrition programs and prevent obesity among children in this

state.

(b) The department may solicit and accept gifts, grants, and

donations from any public or private sources for the purposes of

this section.

administer an outreach program established under this section.

SECTION 9.04. Chapter 12, Agriculture Code, is amended by

adding Section 12.046 to read as follows:

Sec. 12.046. TEXAS RURAL INVESTMENT FUND. (a) In this

section:

(1) "Fund" means the Texas Rural Investment Fund.

(2) "Rural community" means a municipality with a

population of less than 50,000 or a county with a population of less

than 200,000.

(b) The fund is a dedicated account in the general revenue

fund and consists of:

(1) appropriations of money to the fund by the

legislature;

(2) gifts, grants, including federal grants, and other

donations received for the fund; and

(3) interest earned on the investment of money in the

fund.

(b-1) The department shall administer the fund and select

recipients of grants and loans from the fund.

(1) pay for grants or loans to public or private

entities for projects in rural communities that have strong local

support, provide positive return on the state's investment, and

stimulate one or more of the following:

(A) local entrepreneurship;

(B) job creation or retention;

(D) strategic economic development planning;

(E) individual economic and community

development leadership training;

(F) housing development; or

(G) innovative workforce education; and

(2) administer the grant and loan program under this

section.

(d) In awarding a grant or loan of money from the fund for a

project, the department shall consider:

(1) the project's effect on job creation and wages;

(2) the financial strength of the applicant;

(3) the applicant's business history;

(4) an analysis of the relevant business sector;

(5) whether there is public or private sector

financial support for the project; and

(6) whether there is local support for the project.

(e) The fund is exempt from the application of Sections

403.095 and 404.071, Government Code.

(f) The department may accept grants, gifts, or donations

from any source that are made for the purposes of this section.

Money received under this subsection shall be deposited in the

fund.

(g) The department shall adopt rules to administer this

section.

SECTION 9.05. Chapter 12, Agriculture Code, is amended by

adding Section 12.048 to read as follows:

Sec. 12.048. OBTAINING CRIMINAL HISTORY RECORD

INFORMATION. (a) The department is authorized to obtain from the

Department of Public Safety criminal history record information

maintained by the Department of Public Safety that relates to a

person who:

(1) applies for a license issued by the department;

(2) holds a license issued by the department;

(3) requests a determination of eligibility for a

license issued by the department; or

(4) is an employee, volunteer, or intern of the

department, or an applicant to be an employee, volunteer, or intern

of the department.

(b) In addition to the information the department is

authorized to obtain under Sections 411.122 and 411.1405,

Government Code, and this section, the department is authorized to

request and obtain criminal history record information through the

Federal Bureau of Investigation as provided by Section 411.087,

Government Code.

section and Chapter 411, Government Code, is confidential, is not

subject to disclosure under Chapter 552, Government Code, and may

not be disclosed to any person other than as required by a court

order.

SECTION 9.06. Subsection (a), Section 19.012, Agriculture

Code, is amended to read as follows:

(a) A person commits an offense if the person:

(1) sells or offers to sell citrus budwood or a citrus

nursery tree falsely claiming that it is certified or that it comes

from a designated foundation grove; [or]

(2) uses, for commercial purposes, citrus budwood that

is required by department rule to be certified and is not certified

or does not come from a designated foundation grove; or

(3) fails to comply with an order of the department

issued under this chapter.

SECTION 9.07. Section 19.014, Agriculture Code, is amended

to read as follows:

Sec. 19.014. ADMINISTRATIVE PENALTIES. The department may

assess an administrative penalty under Chapter 12 for a violation

of this chapter if the department finds that a person:

(1) sells or offers to sell citrus budwood or a citrus

nursery tree falsely claiming that it is certified or that it comes

from a designated foundation grove under this chapter;

(2) uses citrus budwood in violation of rules adopted

under this chapter; [or]

(3) uses, for commercial purposes, citrus budwood that

is required by department rule to be certified and is not certified

or does not come from a designated foundation grove; or

(4) fails to comply with an order of the department

issued under this chapter.

SECTION 9.08. Section 41.151, Agriculture Code, is amended

to read as follows:

Sec. 41.151. DEFINITIONS. In this subchapter:

(1) "Beef products" means products produced in whole

or in part from beef. The term does not include milk or products

made from milk.

(2) [~~"Board" means the board of directors of the Texas~~

~~Beef Council.~~

[~~(3)~~] "Council" means the Texas Beef Council.

(3) [~~(4)~~] "Producer" means a person who owns or

acquires ownership of cattle, except that a person is not a producer

if the person's only share in the proceeds of a sale of cattle or

beef is a sales commission, handling fee, or other service fee.

SECTION 9.09. Subsection (b), Section 41.152, Agriculture

Code, is amended to read as follows:

(b) The council shall be the certified organization

[~~recognized as the entity~~] to plan, implement, and operate

research, education, promotion, and marketing programs under this

subchapter. The council is the state beef council qualified to

collect the proceeds of and administer in this state the beef check

off program established by federal law.

SECTION 9.10. Section 41.156, Agriculture Code, is amended

to read as follows:

Sec. 41.156. COUNCIL [~~BOARD~~] MEMBERS. (a) The council

[~~board~~] is composed of 20 [21] members nominated by the council and

appointed by the commissioner as follows:

(1) three representatives of the Texas and

Southwestern Cattle Raisers Association;

(2) three representatives of the Texas Cattle Feeders

Association;

(3) three representatives of the Texas Farm Bureau;

(4) two representatives of the Independent Cattlemen's

Association of Texas;

(5) two representatives of the Texas purebred cattle

industry;

(6) two representatives of the Texas dairy industry;

(7) one representative [~~two representatives~~] of the

Livestock Marketing Association of Texas;

(8) one representative of meat packer and exporter

associations;

(9) one representative of Texas CattleWomen; and

(10) two at-large directors.

(b) A council [~~board~~] member serves a one-year term or until

his or her successor is appointed. A council member may serve not

more than six consecutive one-year terms, except that a council

member who is elected to serve as an officer during the member's

sixth consecutive one-year term may serve as chairman or past

chairman for not more than two additional consecutive one-year

terms.

shall fill a vacancy on the council [~~board~~] by appointment for the

unexpired term.

SECTION 9.11. Section 41.157, Agriculture Code, is amended

to read as follows:

Sec. 41.157. GENERAL POWERS OF COUNCIL. The council may

take action or exercise other authority as necessary to execute any

act authorized by this chapter [~~subchapter~~] or the Texas Non-Profit

Corporation Act (Article 1396-1.01 et seq., Vernon's Texas Civil

Statutes).

SECTION 9.12. Subsections (b), (c), and (e), Section

41.160, Agriculture Code, are amended to read as follows:

(b) If an assessment referendum is approved, the council

shall recommend to the commissioner an assessment amount not

greater than the maximum amount approved in the referendum. After

the assessment is approved by the commissioner, the council shall

collect the assessment.

by the council to efforts relating to the marketing, education,

research, and promotion of beef and beef products in Texas, the

United States, and international markets, including administrative

costs of conducting an assessment referendum.

(e) Section 41.083 applies to an assessment collected by the

council under this subchapter. Section 41.082 does not apply to an

assessment collected under this subchapter. The commissioner, on

the council's recommendation, may exempt from the assessment

certain producers who are exempt under federal law.

SECTION 9.13. Subsection (a), Section 41.161, Agriculture

Code, is amended to read as follows:

(a) The commissioner shall annually review and approve the

council's operating budget for the funds collected under this

subchapter.

SECTION 9.14. Subsection (g), Section 41.162, Agriculture

Code, is amended to read as follows:

(g) The council shall pay all expenses incurred in

conducting a referendum with funds collected from the beef

industry.

SECTION 9.15. Subsection (d), Section 71.004, Agriculture

Code, is amended to read as follows:

(d) An emergency quarantine shall be established in

accordance with the provisions related to emergency rulemaking in

Chapter 2001, Government Code [~~expires 30 days following the date~~

~~on which it was established unless reestablished following notice~~

~~and hearing as provided by this subchapter~~].

SECTION 9.16. Subsection (b), Section 72.002, Agriculture

Code, is amended to read as follows:

(b) The department may adopt rules[~~, to be proclaimed by the~~

~~governor,~~] as necessary for the administration of this chapter.

SECTION 9.17. Subsections (a) and (b), Section 72.011,

Agriculture Code, are amended to read as follows:

(a) When advised of the existence of Mexican fruit fly

within a county or part of a county in this state, the department

shall certify that fact and [~~to the governor, and the governor~~

~~shall~~] proclaim the county or part of a county quarantined under

this chapter.

(b) If the department determines that the exigencies of the

situation require a modified quarantine, the department may

designate a modified quarantined area [~~to be certified to the~~

~~governor for proclamation~~].

SECTION 9.18. Section 72.012, Agriculture Code, is amended

to read as follows:

Sec. 72.012. PERSONS AND PREMISES SUBJECT. The premises of

each individual, whether an owner, lessee, renter, tenant, or

occupant, within the area named in the quarantine [~~proclamation~~]

are subject to the quarantine, even though not specifically named.

SECTION 9.19. Subsection (a), Section 72.015, Agriculture

Code, is amended to read as follows:

(a) A person may not haul, truck, or otherwise move citrus

fruit from any premises or area that is under quarantine for Mexican

fruit fly infestation by this chapter or[,] by order of the

department[~~, or by proclamation of the governor~~] in violation of

the quarantine without a written permit or certificate issued by

the department or an inspector of the Plant Protection and

Quarantine Programs, Animal and Plant Health Inspection Service,

United States Department of Agriculture.

SECTION 9.20. Subsection (a), Section 76.004, Agriculture

Code, is amended to read as follows:

(a) The [~~Except as provided by Subchapter G, after notice,~~

~~the department shall conduct at least five regional hearings~~

~~throughout the state before the adoption of any rule for carrying~~

~~out the provisions of this chapter. Thereafter, the~~] department

may adopt rules for carrying out the provisions of this chapter,

including rules providing for:

(1) the collection, examination, and reporting of

records, devices, and samples of pesticides;

(2) the safe handling, transportation, storage,

display, distribution, or disposal of pesticides and pesticide

containers;

(3) labeling requirements for pesticides and devices

required to be registered under this chapter; and

(4) compliance with federal pesticide rules and

regulations.

SECTION 9.21. Section 144.041, Agriculture Code, is amended

by adding Subsection (g) to read as follows:

(g) The recording of marks and brands at a point of sale for

use by an association authorized to inspect livestock under 7

U.S.C. Section 217a does not serve as a record under this chapter.

An association authorized to inspect livestock under 7 U.S.C.

Section 217a has no duty to verify ownership at a point of sale.

SECTION 9.22. Section 251.005, Agriculture Code, is amended

by adding Subsection (e) to read as follows:

(e) A governmental requirement of a political subdivision

of the state does not apply to conduct described by Section

42.09(f), Penal Code, on an agricultural operation.

SECTION 9.23. The following provisions are repealed:

(1) Section 12.017, Agriculture Code;

(2) Section 72.003, Agriculture Code;

(3) Subsection (c), Section 72.011, Agriculture Code;

and

(4) Section 76.005, Agriculture Code.

SECTION 9.24. (a) The change in law made by this Act to

Section 19.012, Agriculture Code, applies only to an offense

committed on or after the effective date of this Act. An offense

committed before the effective date of this Act is covered by the

law in effect when the offense was committed, and the former law is

continued in effect for that purpose. For purposes of this

subsection, an offense was committed before the effective date of

this Act if any element of the offense was committed before that

date.

(b) The change in law made by this Act to Section 19.014,

Agriculture Code, applies only to conduct that occurred on or after

the effective date of this Act. Conduct that occurred before the

effective date of this Act is governed by the law in effect when the

conduct occurred, and the former law is continued in effect for that

purpose.

Agriculture Code, does not affect the entitlement of a member of the

board of directors of the Texas Beef Council to serve for the

remainder of the member's term. A board member appointed before the

effective date of this Act is governed by the law in effect

immediately before the effective date of this Act, and the former

law is continued in effect for that purpose.

(d) The change in law made by this Act to Section 41.160,

Agriculture Code, applies only to an assessment approved on or

after the effective date of this Act. An assessment approved before

the effective date of this Act is governed by the law in effect

immediately before the effective date of this Act, and the former

law is continued in effect for that purpose.

(e) The change in law made by this Act to Section 41.162,

Agriculture Code, applies only to an assessment referendum

conducted on or after the effective date of this Act. An assessment

referendum conducted before the effective date of this Act is

governed by the law in effect immediately before the effective date

of this Act, and the former law is continued in effect for that

purpose.

(f) The changes in law made by this Act by the amendment of

Section 76.004, Agriculture Code, and the repeal of Section 76.005,

Agriculture Code, apply only to a public hearing held on or after

the effective date of this Act. A public hearing held before the

effective date of this Act is governed by the law in effect

immediately before the effective date of this Act, and the former

law is continued in effect for that purpose.

ARTICLE 10. ESTABLISHMENT OF THE OFFICIAL CITRUS PRODUCERS' PEST

AND DISEASE MANAGEMENT CORPORATION

SECTION 10.01. Subtitle B, Title 5, Agriculture Code, is

amended by adding Chapter 80 to read as follows:

CHAPTER 80. OFFICIAL CITRUS PRODUCERS' PEST AND DISEASE

MANAGEMENT CORPORATION

Sec. 80.001. FINDINGS AND DECLARATION OF POLICY. (a) The

legislature finds that:

(1) the insect known as the Asian citrus psyllid and

the disease known as citrus greening are public nuisances and

menaces to the citrus industry, and their control and suppression

is a public necessity;

(2) because of the natural migration patterns of the

Asian citrus psyllid, the control and suppression of the nuisance

can best be accomplished by dividing the commercial citrus-growing

areas into separate zones so that integrated pest management

programs may be developed for each zone;

(3) there is a need for a quasi-governmental entity

acting under the supervision and control of the commissioner whose

members are actual citrus producers who would be represented on the

board of the entity by directors elected by them to manage control

and suppression programs and to furnish expertise in the field of

insect control and suppression, because such an entity would

enhance the interest and participation of citrus producers in the

program;

(4) citrus producers, in partnership with the state

and federal governments, have made significant investments toward

the suppression of these pests and disease in this state; and

(5) it is essential to the well-being of the citrus

industry and the agricultural economy of this state that the

investments of the citrus producers and the state and federal

governments be protected.

(b) It is the intent of the legislature that the program of

control and suppression of the Asian citrus psyllid be carried out

with the best available integrated pest management techniques.

this chapter.

Sec. 80.002. DESIGNATION OF ENTITY TO CARRY OUT ASIAN

CITRUS PSYLLID AND CITRUS GREENING CONTROL AND SUPPRESSION.

(a) The Texas Citrus Pest and Disease Management Corporation,

Inc., a Texas nonprofit corporation, shall be recognized by the

department as the entity to plan, carry out, and operate

suppression programs to manage and control the Asian citrus psyllid

and citrus greening in citrus plants in the state under the

supervision of the department as provided by this chapter.

(b) The commissioner may terminate the corporation's

designation as the entity recognized to carry out Asian citrus

psyllid control and management by giving 45 days' written notice to

the corporation and by designating a successor entity. If the

commissioner designates a successor to the corporation, the

successor has all the powers and duties of the corporation under

this chapter. Any successor to the corporation shall assume and

shall be responsible for all obligations and liabilities relating

to any notes, security agreements, assignments, loan agreements,

and any other contracts or other documents entered into by the

corporation with or for the benefit of any financial institution or

its predecessor, successor, or assignee.

Sec. 80.003. DEFINITIONS. In this chapter:

(1) "Board" means the board of directors of the Texas

Citrus Pest and Disease Management Corporation, Inc.

(2) "Asian citrus psyllid" means Diaphorina citri

Kuwayama.

(3) "Commissioner" means the commissioner of

agriculture.

(4) "Citrus" means:

(A) a citrus plant;

(B) a part of a citrus plant, including trees,

limbs, flowers, roots, and leaves; or

(5) "Citrus greening" means the disease caused by the

Asian citrus psyllid.

(6) "Citrus producer" means a person who grows citrus

and receives income from the sale of citrus. The term includes an

individual who as owner, landlord, tenant, or sharecropper is

entitled to share in the citrus grown and available for marketing

from a farm or to share in the proceeds from the sale of the citrus

from the farm.

(7) "Suppression" means control of the numbers and

migration of the Asian citrus psyllid to the extent that the

commissioner does not consider further management of the Asian

citrus psyllid necessary to prevent economic loss to citrus

producers.

(8) "Pest management zone" means a geographic area

designated by the commissioner in accordance with Section 80.005 in

which citrus producers by referendum approve their participation in

a citrus pest control program.

(9) "Corporation" means the Texas Citrus Pest and

Disease Management Corporation, Inc., a Texas nonprofit

corporation.

(10) "Host" means a plant or plant product in which the

Asian citrus psyllid is capable of completing any portion of its

life cycle.

(11) "Infested" means the presence of the Asian citrus

psyllid in any life stage or the existence of generally accepted

entomological evidence from which it may be concluded with

reasonable certainty that the Asian citrus psyllid is present.

(12) "Integrated pest management" means the

coordinated use of pest and environmental information with

available pest control methods, including pesticides, natural

predator controls, cultural farming practices, and climatic

conditions, to prevent unacceptable levels of pest damage by the

most economical means and with the least possible hazard to people,

property, and the environment.

(13) "Regulated article" means an article carrying or

capable of carrying the Asian citrus psyllid, including citrus

plants, nursery plants, citrus rootstock, or other hosts.

Sec. 80.004. ADVISORY COMMITTEES. (a) The commissioner

may appoint an advisory committee for an existing pest management

zone or an area of the state that is to be considered by the

commissioner for designation as or inclusion in a pest management

zone. The committee shall gather advice, input, and guidance from

citrus producers from the area represented by the committee

concerning the interest in and concerns about the implementation of

this chapter.

(b) Each advisory committee may consider and make

recommendations to the commissioner and the corporation

concerning:

(1) the geographic boundaries for a proposed pest

management zone;

(2) the amount of local interest in operating a

suppression program;

(3) the basis and amount of an assessment necessary to

support a suppression program;

(4) ongoing implementation of a suppression program

approved by growers in a pest management zone; and

(5) any other matter requested by the commissioner or

the corporation.

must include a sufficient number of citrus producers to ensure

adequate representation across the pest management zone and other

persons as determined by the commissioner.

(d) An advisory committee established under this section is

subject to Chapters 551 and 552, Government Code.

Sec. 80.005. CREATION OF PEST MANAGEMENT ZONES. (a) The

commissioner by rule may designate an area of this state as a

proposed pest management zone.

(b) The commissioner may hold a public hearing in the

proposed pest management zone to discuss the proposed geographic

boundaries of the zone. The public hearing may include any other

topic allowed under this chapter.

commissioner shall conduct a referendum under Section 80.006.

Sec. 80.006. PEST MANAGEMENT ZONE REFERENDA. (a) The

commissioner shall conduct a referendum in each proposed pest

management zone to determine whether citrus producers want to

establish a pest management zone.

(b) Pest management zone referenda shall be conducted under

the procedures provided by Section 80.016.

include or be accompanied by information about the proposed pest

management zone, including:

(1) a statement of the purpose of the Asian citrus

psyllid suppression program;

(2) the geographic area included in the proposed pest

management zone;

(3) a general summary of rules adopted by the

commissioner under Sections 80.016, 80.020, and 80.022, including a

description of:

(A) citrus producer responsibilities; and

(B) penalties for noncompliance with rules

adopted under this chapter; and

(4) an address and toll-free telephone number that a

citrus producer may use to request more information about the

referendum or the Asian citrus psyllid suppression program.

(d) If a referendum to establish a pest management zone is

not approved, the concurrent election of a board member from the

proposed pest management zone under Section 80.007 has no effect,

and the commissioner shall appoint a representative to the board

from the area.

(e) The corporation may request the commissioner to call

additional referenda in a proposed pest management zone in which a

referendum has not been approved. An additional pest management

zone referendum and concurrent board election may not be held

before the first anniversary of the date of the preceding

referendum.

(f) After the approval of any referendum, the eligible

voters shall be allowed, by subsequent referenda, to vote on

whether to continue their assessments. The requirements for an

initial referendum must be complied with in a subsequent

referendum.

Sec. 80.007. BOARD ELECTIONS. (a) The initial election

for board members from a proposed pest management zone shall be held

concurrently with a pest management zone referendum held under

Section 80.006. Each pest management zone must be represented on

the board and remain represented on the board until suppression

operations are concluded and all debt of the pest management zone is

paid.

(b) A board election shall be conducted under the procedures

provided by this section and Section 80.016.

referendum or election under this chapter is eligible to be a

candidate for and member of the board if the person has at least

seven years of experience as a citrus producer and otherwise meets

the qualifications for the office.

(d) A citrus producer who wants to be a candidate for the

board must meet the qualifications for board membership and file an

application with the commissioner. The application must be:

(1) filed not later than the 30th day before the date

set for the board election;

(2) on a form approved by the commissioner; and

(3) signed by at least 10 citrus producers who are

eligible to vote in the board election.

(e) On receipt of an application and verification that the

application meets the requirements of Subsection (d), an

applicant's name shall be placed on the ballot for the board

election.

(f) An eligible voter may vote for a citrus producer whose

name does not appear on the official ballot by writing that person's

name on the ballot.

(g) A board election must be preceded by at least 45 days'

notice published in one or more newspapers published and

distributed in the proposed or established pest management zone.

The notice shall be published not less than once a week for three

consecutive weeks. Not later than the 45th day before the date of

the election, direct written notice of the election shall be given

to each Texas AgriLife Extension Service agent in the pest

management zone.

(h) Each board member shall be sworn into office by a

representative of the commissioner by taking the oath of office

required for elected officers of the state.

Sec. 80.008. COMPOSITION OF BOARD. (a) The board is

composed of members elected from each pest management zone

established by referendum, members appointed by the commissioner

from other citrus-growing areas of the state, and members appointed

by the commissioner under Subsection (b). The commissioner shall

appoint an initial board composed of 15 members. Except as provided

by Subsection (b), the term of each board position may not exceed

four years.

(b) In making appointments under this section, the

commissioner shall appoint the following board members, selected

from a variety of citrus-growing regions of the state, for

four-year terms:

(1) an agricultural lender;

(2) an independent entomologist who is an integrated

pest management specialist;

(3) two representatives from industries allied with

citrus production; and

(4) a representative from the pest control industry.

positions or the pest management zone representation on the board

to accommodate changes in the number of pest management zones. A

change under this subsection may not contravene another provision

of this chapter.

(d) A vacancy on the board shall be filled by appointment by

the commissioner for the unexpired term.

(e) On 30 days' notice and opportunity for hearing, the

commissioner may replace any unelected board member of the

corporation.

Sec. 80.009. POWERS OF BOARD AND COMMISSIONER. (a) The

board may:

(1) conduct programs consistent with the declaration

of policy stated in Section 80.001;

(2) accept, as necessary to implement this chapter,

gifts and grants;

(3) borrow money, with the approval of the

commissioner, as necessary to execute this chapter;

(4) take other action and exercise other authority as

necessary to execute any act authorized by this chapter or the Texas

Non-Profit Corporation Act (Article 1396-1.01 et seq., Vernon's

Texas Civil Statutes); and

(5) form an advisory committee composed of individuals

from this state, other states, or other countries and change

membership on the committee, as necessary. Any advisory committee

created under this subdivision for the purpose of establishing

treatment methods shall include among its members persons with

knowledge of the effects of different treatments on the health of

agricultural workers, the local population, and the ecosystem,

including but not limited to the effects of a particular method of

treatment on beneficial organisms and wildlife, the potential for

secondary infestations from nontarget pests, and the potential for

pest resistance to particular methods of treatment.

(b) On petition of at least 30 percent of the citrus

producers eligible to vote in the proposed area, the commissioner

may, or at the commissioner's discretion the commissioner by rule

may, add an area to a pest management zone or transfer an area or

county from one zone to another zone if:

(1) citrus production has begun or could begin in the

area;

(2) the area is adjacent to a pest management zone or

is in an area with biological characteristics similar to the pest

management zone; and

(3) the addition is approved in a referendum held in

the area.

approval by the commissioner, outlining the procedures to be used

in purchasing.

(d) The commissioner at any time may inspect the books and

other financial records of the corporation.

Sec. 80.010. BOARD DUTIES. (a) The board shall have an

annual independent audit of the books, records of account, and

minutes of proceedings maintained by the corporation prepared by an

independent certified public accountant or a firm of independent

certified public accountants. The audit must include information

for each zone in which a suppression program has been conducted

under this chapter. The audit shall be filed with the board, the

commissioner, and the state auditor and be made available to the

public by the corporation or the commissioner. The transactions of

the corporation are subject to audit by the state auditor in

accordance with Chapter 321, Government Code.

(b) Not later than the 45th day after the last day of the

fiscal year, the board shall submit to the commissioner a report

itemizing all income and expenditures and describing all activities

of the corporation during the fiscal year.

determined by the board for employees or agents who handle money for

the corporation.

(d) The corporation and the board are state agencies for the

following purposes only:

(1) exemption from taxation, including exemption from

sales and use taxes and taxes under Chapter 152, Tax Code; and

(2) exemption from vehicle registration fees.

(e) Funds collected by the corporation are not state funds

and are not required to be deposited in the state treasury. The

corporation shall deposit all money collected under this chapter in

a bank or other depository approved by the commissioner.

(f) The board shall collect data on the type and quantity of

pesticides used in accordance with this chapter. The data shall be

filed with the commissioner.

(g) All money collected under this chapter shall be used

solely to finance programs approved by the commissioner as

consistent with this chapter.

(h) The corporation is subject to the requirements of:

(1) the open meetings law, Chapter 551, Government

Code; and

(2) the public information law, Chapter 552,

Government Code.

(i) A board member may not vote on any matter in which the

member has a direct pecuniary interest. A board member is subject

to the same restrictions as a local public official under Chapter

171, Local Government Code.

Sec. 80.011. ADMINISTRATIVE REVIEW. (a) The commissioner

by rule shall establish procedures for the informal review and

resolution of a claim arising out of certain acts taken by the

corporation under this chapter. Rules established under this

section shall include a designation of the acts that are subject to

review under this subsection and the appropriate remedial action,

as authorized by this chapter.

(b) A person dissatisfied with the department's informal

resolution of a claim under procedures adopted under Subsection (a)

may appeal the department's decision to the commissioner.

appealed under Subsection (b) is the final administrative action of

the department and is subject to judicial review under Chapter

2001, Government Code.

(d) This section does not constitute a waiver of the state's

immunity from liability.

Sec. 80.012. CONTRACTING. (a) For a purchase of goods and

services under this chapter, the corporation may purchase goods and

services that provide the best value for the corporation.

(b) In determining the best value for the corporation, the

purchase price and whether the goods or services meet

specifications are the most important considerations. However, the

corporation may consider other relevant factors, including:

(1) the quality and reliability of the goods and

services;

(2) the delivery terms;

(3) indicators of probable vendor performance under

the contract, including:

(A) past vendor performance;

(B) the vendor's financial resources and ability

to perform;

capability and responsibility; and

(D) the vendor's ability to provide reliable

maintenance agreements and support;

(4) the cost of any employee training associated with

a purchase; and

(5) other factors relevant to determining the best

value for the corporation in the context of a particular purchase.

Sec. 80.013. BOARD MEMBER COMPENSATION. Board members

serve without compensation but are entitled to reimbursement for

reasonable and necessary expenses incurred in the discharge of

their duties.

Sec. 80.014. DISCONTINUATION OF PROGRAM AND CORPORATION AND

DISPOSITION OF FUNDS ON DISCONTINUANCE. (a) On the determination

by the corporation that the Asian citrus psyllid suppression

program has been completed in all pest management zones established

under this chapter, the corporation shall provide notice of the

completion to the commissioner along with a request for

discontinuance of the control and suppression program and

collection of the assessment. Any request under this subsection

must include documentation supporting the fact that the Asian

citrus psyllid is no longer a threat to the state's citrus industry

and a plan for discontinuance of the program and assessment.

(b) The commissioner shall determine whether or not the

further suppression of the Asian citrus psyllid is necessary in the

pest management zones and approve or disapprove discontinuance of

the corporation and the plan for dissolution.

file a final report with the commissioner, including a financial

report, and submit all remaining funds into the trust of the

commissioner. Final books of the corporation shall be filed with

the commissioner and are subject to audit by the department.

(d) The commissioner shall pay from the corporation's

remaining funds all of the corporation's outstanding obligations.

(e) Funds remaining after payment under Subsection (d)

shall be returned to contributing citrus producers on a pro rata

basis.

(f) If 30 percent or more of the citrus producers eligible

to vote within a zone participating in the program present to the

commissioner a petition calling for a referendum of the qualified

voters on the proposition of discontinuing the program, the

commissioner shall conduct a referendum for that purpose.

(g) The commissioner shall give notice of the referendum,

the referendum shall be conducted, and the results shall be

declared in the manner provided by law for the original referendum

and election, with any necessary exceptions provided by rule of the

commissioner.

(h) The commissioner shall conduct the referendum before

the 90th day after the date the petition was filed, except that a

referendum may not be held before the second anniversary of any

other referendum in the pest management zone pertaining to

establishing or discontinuing the pest management zone.

(i) Approval of the proposition requires the same vote as

required in a referendum under Section 80.016(g). If the

proposition is approved, the suppression program is abolished and

the pest management zone ceases to exist on payment of all debts of

the pest management zone.

Sec. 80.015. ASSESSMENT REFERENDA. (a) The commissioner

shall propose the assessment needed in each pest management zone to

ensure the stability of the citrus industry by suppressing the

public nuisance caused by the Asian citrus psyllid.

(b) The commissioner shall propose in a referendum the:

(1) maximum assessment to be paid by citrus producers

having production in the pest management zone; and

(2) time for which the assessment will be made.

make an assessment in a pest management zone at a level less than

the assessment approved by the referendum.

(d) The commissioner shall conduct an assessment referendum

under the procedures provided by Section 80.016.

(e) If an assessment referendum is approved, the

corporation may collect the assessment.

(f) An assessment levied on citrus producers in a pest

management zone may be applied only to:

(1) pest control in that zone;

(2) the corporation's operating costs, including

payments on debt incurred for a corporation activity, except that

the funds of one zone may not be used to pay another zone's bank

loans or debts; and

(3) the conducting of other programs consistent with

the declaration of policy stated in Section 80.001.

(g) The assessment shall be adequate and necessary to

achieve the goals of this chapter. The amount of the assessment

shall be determined by criteria established by the commissioner,

including:

(1) the extent of infestation;

(2) the amount of acreage planted;

(3) historical efforts to suppress;

(4) the growing season;

(5) epidemiology;

(6) historical weather conditions; and

(7) the costs and financing of the program.

(h) The commissioner shall give notice of and hold a public

hearing in the pest management zone regarding the proposed

assessment referendum. Before the referendum, the commissioner

shall review and approve:

(1) the amount of the assessment;

(2) the basis for the assessment;

(3) the time for payment of the assessment;

(4) the method of allocation of the assessment among

citrus producers;

(5) the restructuring and repayment schedule for any

preexisting debt; and

(6) the amount of debt to be incurred in the pest

management zone.

(i) The commissioner shall on a zone-by-zone basis set the

date on which assessments are due and payable.

(j) Each year, the commissioner shall review and approve the

corporation's operating budget.

(k) The corporation shall prepare and mail billing

statements to each citrus producer subject to the assessment that

state the amount due and the due date. The assessments shall be

sent to the corporation.

Sec. 80.016. CONDUCT OF BOARD ELECTIONS AND REFERENDA;

BALLOTING. (a) The commissioner shall conduct a referendum or

board election authorized under this chapter.

(b) The corporation shall bear all expenses incurred in

conducting a referendum or board election.

elections and referenda to establish pest management zones. Rules

adopted under this subsection must include provisions for

determining:

(1) who is a citrus producer eligible to vote in an

election or referendum;

(2) whether a board member is elected by a plurality or

a majority of the votes cast; and

(3) the area from which each board member is elected.

(d) A citrus producer having citrus production in a proposed

or established pest management zone is entitled to:

(1) vote in a referendum concerning the pest

management zone; and

(2) elect board members to represent the pest

management zone.

(e) An eligible citrus producer may vote only once in a

referendum or board election.

(f) Ballots in a referendum or board election shall be

mailed directly to a central location, as determined by the

commissioner. A citrus producer eligible to vote in a referendum or

board election who has not received a ballot from the commissioner,

corporation, or another source shall be offered the option of

requesting a ballot by mail or obtaining a ballot at the office of

the Texas AgriLife Extension Service or a government office

distributing ballots in a county in the proposed or established

zone in which the referendum or board election is conducted.

(g) A referendum is approved if:

(1) at least two-thirds of those voting vote in favor

of the referendum; or

(2) those voting in favor of the referendum cultivate

more than 50 percent, as determined by the commissioner, of the

citrus acreage in the relevant pest management zone.

(h) If a referendum under this chapter is not approved, the

commissioner may conduct another referendum. A referendum under

this subsection may not be held before the first anniversary of the

date on which the previous referendum on the same issue was held.

(i) A public hearing regarding the proposed suppression

program, including information regarding regulations to be

promulgated by the commissioner, may be held by the commissioner in

each of several locations in each Asian citrus psyllid pest

management zone.

(j) Individual voter information, including an individual's

vote in a referendum or board election conducted under this

section, is confidential and is not subject to disclosure under

Chapter 552, Government Code.

Sec. 80.017. PAYMENT OF ASSESSMENTS; ASSESSMENT LIENS.

(a) A citrus producer who fails to pay an assessment levied under

this chapter when due may be subject, after reasonable notice and

opportunity for hearing, to a penalty set by the commissioner. In

determining the amount of the penalty to be assessed, the

commissioner shall consider:

(1) the seriousness of the violation, including the

nature, circumstances, and extent of the violation;

(2) the history of previous violations;

(3) the amount necessary to deter future violations;

(4) the economic situation of the citrus producer; and

(5) any other matter that justice may require.

(b) The corporation may develop a compliance certificate

program to manage the payment and collection of an assessment

levied under this chapter. Under the program the corporation,

subject to department rules, may issue a compliance certificate for

citrus for which an assessment has been paid.

assessments and penalties, the commissioner may adopt rules

relating to the compliance certificate program for suppression

assessments. The rules may include:

(1) provisions establishing and relating to the

obligations of growers, packers, and buyers in due course of citrus

produced in active pest management zones to ensure that assessments

are paid within a prescribed time period;

(2) provisions allowing incentives in the form of

discounted assessments for growers who pay assessments within a

prescribed time period;

(3) provisions establishing penalties and interest

against growers who pay assessments after a prescribed time period;

and

(4) other provisions the commissioner determines are

proper.

(d) In addition to any other remedies for the collection of

assessments and penalties, an assessment lien in favor of the

corporation attaches and is perfected 60 days after the date the

corporation mails notice of the assessment on citrus produced and

harvested that year from the acreage that is subject to the

assessment that is due and unpaid. An assessment lien is not an

agricultural lien for the purposes of Chapter 9, Business &

Commerce Code, and is not subject to the provisions of that chapter.

An assessment lien is subject to and preempted by the Food Security

Act of 1985 (7 U.S.C. Section 1631 et seq.) and shall be treated

under that Act in the same manner as a security interest created by

the seller. A buyer of citrus takes free of the assessment lien if

the buyer:

(1) receives a compliance certificate issued by the

corporation when the buyer purchases the citrus that certifies that

the assessment has been paid to the corporation;

(2) pays for the citrus by a check on which the

department is named as a joint payee;

(3) does not receive notice of the assessment lien as

required by the Food Security Act of 1985 (7 U.S.C. Section 1631 et

seq.); or

(4) buys the citrus from a person other than the

producer of the citrus.

(e) The corporation may assign, with the approval of the

commissioner, assessments or liens in favor of the corporation as

collateral for a loan to the corporation only if the proceeds of the

loan are designated for use in the pest management zone from which

the assessments or liens originated.

(f) If the department believes that a violation of this

section or a rule adopted under this section has occurred, the

department may investigate and, during normal business hours, audit

and inspect the records of the person who is the subject of the

investigation.

Sec. 80.018. EXEMPTION FROM ASSESSMENT PENALTIES. (a) The

commissioner by rule shall adopt criteria to exempt from payment of

an assessment penalty under Section 80.017 a citrus producer for

whom payment would impose an undue financial burden.

(b) A citrus producer is not eligible for an exemption under

this section for a year in which the amount computed by subtracting

the assessments and penalties due under this chapter from the

citrus producer's net income subject to federal income taxation in

the previous year is greater than $15,000.

this section must use a form prescribed by the commissioner. A

citrus producer must file a separate application form for each year

for which the citrus producer claims an exemption.

(d) The commissioner may establish a payment plan for a

citrus producer applying for an exemption under this section.

(e) The commissioner shall promptly notify an applicant of

the determination regarding the applicant's request for an

exemption.

(f) If an exemption under this section is denied,

assessments and penalties for the year for which the application is

made are due on the later of:

(1) the date on which they would be due in the absence

of an application for exemption; or

(2) 30 days after the date the applicant receives

notice of the denial.

(g) In addition to the authority provided under Subsections

(a)-(f), the commissioner may reduce or waive an assessment penalty

as appropriate and necessary.

Sec. 80.019. ENTRY OF PREMISES; SUPPRESSION ACTIVITIES;

INSPECTIONS. The department, the corporation, or a designated

representative of either entity may enter citrus groves or other

premises to carry out the purposes of this chapter, which include

the treatment and monitoring of growing citrus or other host

plants. The department, the corporation, or a designated

representative of either entity may inspect groves or premises in

this state for the purpose of determining whether the property is

infested with the Asian citrus psyllid or citrus greening. An

inspection must be conducted during reasonable daylight hours. The

department shall give notice by publication of the planned schedule

of dates for entry by the department, the corporation, or a

designated representative of either entity, to the owner or

occupant of the groves or premises to carry out the purposes of this

chapter, including treatment, monitoring, or inspection functions.

The department shall publish notice of the planned schedule to

enter the groves or premises in a newspaper of general circulation

in the pest management zone not less than once a week for two weeks

immediately before the scheduled dates of entry. In addition to the

notice published by the department, the corporation shall post

notice of the planned schedule to enter groves or premises to carry

out the purposes of this chapter at the county courthouse of each

county in the pest management zone not later than the 15th day

before the planned dates of entry.

Sec. 80.020. AUTHORITY TO PROHIBIT PLANTING OF CITRUS AND

REQUIRE PARTICIPATION IN SUPPRESSION PROGRAM. (a) The

commissioner may adopt reasonable rules regarding areas where

citrus may not be planted in a pest management zone if there is

reason to believe planting will jeopardize the success of the

program or present a hazard to public health or safety.

(b) The commissioner may adopt rules requiring all growers

of citrus in a pest management zone to participate in an Asian

citrus psyllid suppression program and growers of commercial citrus

to participate in pest and disease management programs that include

cost sharing as required by the rules.

publication for one day each week for three successive weeks in a

newspaper having general circulation in the affected area.

(d) The commissioner may adopt a reasonable schedule of

penalty fees to be assessed against growers in a designated pest

management zone who do not meet the requirements of the rules issued

by the commissioner relating to reporting of acreage and

participation in cost sharing. A penalty fee may not exceed $50 per

acre.

Sec. 80.021. AUTHORITY FOR DESTRUCTION OR TREATMENT OF

CITRUS IN PEST MANAGEMENT ZONES; COMPENSATION PAYABLE. The

department may destroy or treat, and establish procedures for the

purchase and destruction of, citrus plants or hosts in pest

management zones if the department determines the action is

necessary to carry out the purposes of this chapter. The department

is not liable to the owner or lessee for the destruction of or

injury to any citrus that was planted in a pest management zone

after the date notice is published as required by this chapter. The

corporation is liable for the destruction of citrus if the citrus

was planted in a pest management zone before the date that notice is

published.

Sec. 80.022. AUTHORITY TO ADOPT RULES. (a) The

commissioner shall adopt rules to protect individuals, livestock,

wildlife, and honeybee colonies on any premises in a pest

management zone on which citrus plants are being grown that have

been or are being treated to control or suppress the Asian citrus

psyllid and citrus greening.

(b) Rules adopted under this section shall establish the

criteria by which the corporation develops its procedures and

methods of treatment, which shall:

(1) establish a methodology for determining when Asian

citrus psyllid population levels have reached economic

significance or when citrus greening is present;

(2) establish an effective treatment regimen that

seeks to provide the least possible risk to workers, the public, and

the environment;

(3) minimize the effects of the use of pesticides on

long-term control methods, including but not limited to the effect

a particular pesticide may have on biological controls;

(4) establish methods for monitoring Asian citrus

psyllids, citrus greening, and secondary pests;

(5) establish methods for verifying pesticide use

reduction; and

(6) consider the acute and chronic toxicity of

particular pesticides and the quantity of particular pesticides

needed. Pest management zone treatment plans may take into account

the potential for the use of smaller quantities of more toxic

substances to result in fewer health and environmental risks than

larger quantities of less toxic substances.

necessary to carry out the purposes of this chapter. All rules

issued under this chapter must be adopted and published in

accordance with the laws of this state.

(d) An advisory committee may be established to assist the

commissioner in the development of rules under this section. The

advisory committee may be composed of:

(1) three citrus producers from the commercial citrus

growing area of the state, appointed by the commissioner;

(2) three entomologists with knowledge of the

principles of integrated pest management, at least one of whom has

special knowledge of nonchemical or biological pest control,

appointed by the commissioner;

(3) two individuals with experience representing the

general interests of the environment, appointed by the chair of the

Texas Commission on Environmental Quality;

(4) an environmental engineer with expert knowledge of

ground and surface water protection from contamination, appointed

by the chair of the Texas Commission on Environmental Quality; and

(5) a toxicologist, appointed by the commissioner of

state health services.

Sec. 80.023. REPORTS. Each person in an active pest

management zone growing citrus in this state shall furnish to the

corporation on forms supplied by the corporation information that

the corporation requires concerning the size and location of all

commercial citrus orchards and of noncommercial citrus grown for

ornamental or other purposes. The corporation may provide an

incentive for early and timely reporting.

Sec. 80.024. DOCUMENTING REGULATED ARTICLES. To implement

this chapter, the department may issue or authorize issuance of:

(1) a certificate that indicates that a regulated

article is not infested with the Asian citrus psyllid; and

(2) a permit that provides for the movement of a

regulated article to a restricted destination for limited handling,

use, or processing.

Sec. 80.025. COOPERATIVE PROGRAMS AUTHORIZED. (a) The

corporation may carry out programs to destroy and manage the Asian

citrus psyllid and citrus greening in this state by cooperating

through written agreements, as approved by the commissioner, with:

(1) an agency of the federal government;

(2) a state agency;

(3) an appropriate agency of a foreign country

contiguous to the affected area to the extent allowed by federal

law;

(4) a person who is engaged in growing, processing,

marketing, or handling citrus;

(5) a group of persons in this state involved in

similar programs to carry out the purposes of this chapter; or

(6) an appropriate state agency of another state

contiguous to the affected area, to the extent allowed by federal

law, the law of the contiguous state, and the law of this state.

(b) An agreement entered into under this section may provide

for cost sharing and for division of duties and responsibilities

under this chapter and may include other provisions to carry out the

purposes of this chapter.

Sec. 80.026. ORGANIC CITRUS PRODUCERS. (a) The

commissioner shall develop rules and procedures to:

(1) protect the eligibility of organic citrus

producers to be certified by the commissioner;

(2) ensure that organic and transitional

certifications by the commissioner continue to meet national

certification standards in order for organic citrus to maintain

international marketability; and

(3) in all events maintain the effectiveness of the

Asian citrus psyllid suppression program and citrus greening

management administered under this chapter.

(b) The board may not treat or require treatment of organic

citrus groves with chemicals that are not approved for use on

certified organic citrus. Rules adopted under Subsection (a) may

provide indemnity for the organic citrus producers for reasonable

losses that result from a prohibition of production of organic

citrus or from any requirement of destruction of organic citrus.

Sec. 80.027. PENALTIES. (a) A person who violates this

chapter or a rule adopted under this chapter or who alters, forges,

counterfeits, or uses without authority a certificate, permit, or

other document issued under this chapter or under a rule adopted

under this chapter commits an offense.

(b) An offense under this section is a Class C misdemeanor.

chapter or a rule adopted under this chapter has occurred, the

commissioner may request that the attorney general or the county or

district attorney of the county in which the alleged violation

occurred or is occurring file suit for civil, injunctive, or other

appropriate relief.

Sec. 80.028. SUNSET PROVISION. (a) The board of directors

of the official citrus producers' pest and disease management

corporation is subject to Chapter 325, Government Code (Texas

Sunset Act). Unless continued in existence as provided by that

chapter, the board is abolished and this chapter expires September

1, 2021.

(b) The commissioner may order the dissolution of the

corporation at any time the commissioner determines that the

purposes of this chapter have been fulfilled or that the

corporation is inoperative and abandoned. Dissolution shall be

conducted in accordance with Section 80.014.

program discontinued for any reason, assessments approved, levied,

or otherwise collectible on the date of abolishment remain valid as

necessary to pay the financial obligations of the corporation.

Sec. 80.029. ANNUAL REPORT. The board shall issue to the

commissioner and the appropriate oversight committee in the house

of representatives an annual report detailing its efforts to carry

out the purposes of this chapter.

Sec. 80.030. EXEMPTION FROM TAXATION. All payments,

contributions, funds, and assessments received or held by the

corporation under this chapter are exempt from state or local

taxation, levies, sales, and any other process and are

unassignable.

Sec. 80.031. USE OF BIO-INTENSIVE CONTROLS. (a) The

commissioner shall develop and adopt rules to allow a citrus

producer in a suppression program to use biological, botanical, or

other nonsynthetic pest control methods. In developing rules, the

commissioner shall consider:

(1) scientific studies and field trials of the

effectiveness of a proposed alternative control method;

(2) the feasibility of using a proposed alternative

control technique within a particular region;

(3) the degree of monitoring necessary to establish

the success of the use of a proposed alternative control; and

(4) methods to prevent the use of substances that

would impede the use of alternative controls and the promotion of

beneficial insect populations.

(b) A citrus producer that chooses to use an alternative

method of control as provided in Subsection (a) shall notify the

board. The board and the citrus producer shall coordinate their

actions to prevent the use of substances that would impede the use

of alternative controls and the promotion of beneficial insect

populations.

bio-intensive control in addition to any assessment.

Sec. 80.032. VENUE. Venue for an action arising out of this

chapter in which the corporation is a party is in Travis County.

ARTICLE 11. EFFECTIVE DATE

SECTION 11.01. This Act takes effect September 1, 2009.

______________________________

President of the Senate

Speaker of the House

I hereby certify that S.B. No. 1016 passed the Senate on

April 16, 2009, by the following vote: Yeas 31, Nays 0; and that

the Senate concurred in House amendments on May 25, 2009, by the

following vote: Yeas 31, Nays 0.

______________________________

Secretary of the Senate

I hereby certify that S.B. No. 1016 passed the House, with

amendments, on May 21, 2009, by the following vote: Yeas 142,

Nays 0, two present not voting.

______________________________

Chief Clerk of the House

Approved:

______________________________

Date

______________________________

Governor