CHAPTER 102. HANDLING AND MARKETING OF CITRUS FRUIT

AGRICULTURE CODE

TITLE 5. PRODUCTION, PROCESSING, AND SALE OF HORTICULTURAL

PRODUCTS

SUBTITLE D. HANDLING AND MARKETING OF HORTICULTURAL PRODUCTS

CHAPTER 102. HANDLING AND MARKETING OF CITRUS FRUIT

SUBCHAPTER B. TRANSPORTATION OF CITRUS FRUIT

Sec. 102.101. IDENTIFICATION SIGNS. (a) A motor vehicle,

including a truck or tractor, that hauls citrus fruit in bulk or

in open containers for commercial purposes on the highways of

this state must be identified by signs showing:

(1) the name of the person who owns the vehicle; or

(2) the name of the person who leases or operates the vehicle.

(b) If a person licensed under Subchapter A of this chapter is

the owner or operator of the vehicle, each identification sign

must also show "Licensed Citrus Fruit Dealer" under the name of

the person.

(c) The lettering on each identification sign must be at least

three inches in height.

(d) An identification sign must appear on both sides of the

vehicle or on both the front and the rear and must be affixed

permanently or in another manner in which it may not easily be

removed. If both a tractor and a trailer or two units are used in

hauling the citrus fruit, both the tractor and the trailer or

both units must be labeled with identification signs in the

manner required by this subsection.

Acts 1981, 67th Leg., p. 1266, ch. 388, Sec. 1, eff. Sept. 1,

1981.

Sec. 102.102. CERTIFICATE. A person who operates a motor

vehicle, including a truck or tractor, or a motor vehicle and a

trailer for hauling citrus fruit in bulk or in open containers

for commercial purposes on the highways of this state shall, when

operating the vehicle, have on his or her person a certificate or

other document showing:

(1) the approximate amount of citrus fruit being hauled;

(2) the name of the owner of the citrus fruit; and

(3) the origin of the citrus fruit.

Acts 1981, 67th Leg., p. 1266, ch. 388, Sec. 1, eff. Sept. 1,

1981.

Sec. 102.103. EXCEPTION. This subchapter does not apply to

citrus fruit being hauled from the farm or grove to market or the

place of first processing by the producer of the citrus fruit

operating the producer's vehicle or by an employee of the

producer operating a vehicle owned by the producer.

Acts 1981, 67th Leg., p. 1266, ch. 388, Sec. 1, eff. Sept. 1,

1981.

Sec. 102.104. PENALTY. (a) A person commits an offense if the

person:

(1) operates a motor vehicle or a motor vehicle and trailer not

identified in accordance with Section 102.101 of this code; or

(2) operates a motor vehicle or motor vehicle and trailer

without a certificate or document required by Section 102.102 of

this code.

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

Acts 1981, 67th Leg., p. 1266, ch. 388, Sec. 1, eff. Sept. 1,

1981. Amended by Acts 1989, 71st Leg., ch. 230, Sec. 118, eff.

Sept. 1, 1989.

Sec. 102.1045. CIVIL PENALTY; INJUNCTION. (a) A person who

violates this subchapter or a rule adopted under this subchapter

is liable to the state for a civil penalty not to exceed $500 for

each violation. Each day a violation continues may be considered

a separate violation for purposes of a civil penalty assessment.

(b) On request of the department, the attorney general or the

county attorney or district attorney of the county in which the

violation is alleged to have occurred shall file suit to collect

the penalty.

(c) A civil penalty collected under this section shall be

deposited in the state treasury to the credit of the General

Revenue Fund. All civil penalties recovered in suits first

instituted by a local government or governments under this

section shall be equally divided between the State of Texas and

the local government or governments with 50 percent of the

recovery to be paid to the General Revenue Fund and the other 50

percent equally to the local government or governments first

instituting the suit.

(d) The department is entitled to appropriate injunctive relief

to prevent or abate a violation of this subchapter or a rule

adopted under this subchapter. On request of the department, the

attorney general or the county or district attorney of the county

in which the alleged violation is threatened or is occurring

shall file suit for the injunctive relief. Venue is in the county

in which the alleged violation is threatened or is occurring.

Added by Acts 1989, 71st Leg., ch. 230, Sec. 119, eff. Sept. 1,

1989.

SUBCHAPTER C. CITRUS MARKETING AGREEMENTS AND LICENSES

Sec. 102.151. POLICY. The unreasonable waste and inefficient

use of the citrus resources, caused by the marketing within this

state of greater quantities of fresh citrus fruit than are

reasonably necessary to supply the demands of the market, are not

in the public interest. The difficulty inherent in an attempt of

individuals to correlate within a reasonable degree the citrus

production to current demand creates chaotic economic conditions

in the citrus areas of the state of such severity as to imperil

the ability of citrus producers to contribute in appropriate

amounts to the support of ordinary governmental and educational

functions, thus tending to increase the tax burden of other

taxpayers for the same purposes, and renders it impossible for

producers to be reasonably assured of an adequate standard of

living for themselves and their families. In the interest of the

public welfare and general prosperity of the state, the

unreasonable waste and inefficient use of citrus resources

involved in the marketing of citrus fruit in this state should be

eliminated, while at the same time preserving to citrus producers

in the area covered by this subchapter an equality of

opportunity.

Acts 1981, 67th Leg., p. 1267, ch. 388, Sec. 1, eff. Sept. 1,

1981.

Sec. 102.152. DEFINITIONS. In this subchapter:

(1) "Citrus fruit" means grapefruit, oranges, and tangerines.

(2) "Handler" means a person who packs or ships citrus fruit or

causes citrus fruit to be packed or shipped in intrastate

commerce.

(3) "Intrastate commerce" means all commerce other than that

which is in interstate commerce or foreign commerce or which

directly burdens, obstructs, or affects interstate or foreign

commerce.

(4) "Person" means an individual, corporation, or association.

(5) "Producer" means a person who is engaged in the production

of citrus fruit in this state for commercial purposes or who is a

substantial stockholder in a corporation engaged in the

production of citrus fruit in this state for commercial purposes.

(6) "Ship" means convey or cause to be conveyed in intrastate

commerce by rail, boat, truck, or other means, not including

parcel post or express, whether as owner, agent, or otherwise.

(7) "Shipment" means the loading into a car or other conveyance

for transportation in intrastate commerce.

(8) "Variety" means the following classifications or groups of

citrus fruit:

(A) oranges:

(i) early season oranges; and

(ii) valencias, including Lou Gim Gongs;

(B) grapefruit:

(i) Marsh and other seedless grapefruits, except pinks;

(ii) Duncan and other seeded grapefruits, except pinks;

(iii) seeded pinks; and

(iv) seedless pinks; and

(C) tangerines and temple oranges grouped as one variety.

Acts 1981, 67th Leg., p. 1267, ch. 388, Sec. 1, eff. Sept. 1,

1981.

Sec. 102.153. LIMITED APPLICATION OF SUBCHAPTER. This

subchapter applies only to areas of three citrus fruit producing

counties whose boundaries are contiguous and whose aggregate

population according to the last preceding federal census is not

less than 165,043. This subchapter does not apply to citrus fruit

grown in other areas of this state.

Acts 1981, 67th Leg., p. 1268, ch. 388, Sec. 1, eff. Sept. 1,

1981.

Sec. 102.154. MARKETING AGREEMENTS AND LICENSES. In accordance

with this subchapter, the department may execute marketing

agreements and issue licenses to persons engaged in intrastate

commerce transactions in the marketing, processing, packing,

shipping, handling, or distributing of citrus fruit.

Acts 1981, 67th Leg., p. 1268, ch. 388, Sec. 1, eff. Sept. 1,

1981.

Sec. 102.155. HEARING. (a) On its own motion or on application

of a producer or handler of citrus fruit, the department may

conduct a hearing on the execution of a marketing agreement or on

the issuance of a license if the department has reason to believe

that the marketing agreement or license will tend to effectuate

the policy of this subchapter.

(b) The department shall conduct a hearing under this section in

the area subject to this subchapter and shall within a reasonable

time make the evidence and exhibits offered at the hearing

available at a central point to any interested party. The

department shall produce a transcript of the hearing and make it

available to any interested party.

Acts 1981, 67th Leg., p. 1268, ch. 388, Sec. 1, eff. Sept. 1,

1981.

Sec. 102.156. FINDINGS. (a) Following a hearing, the

department may execute a marketing agreement or issue a license

only if it finds that:

(1) the supply of a citrus fruit available for marketing exceeds

or is likely to exceed the demand for the fruit at prices that

will provide a reasonable return to representative producers of

that fruit;

(2) the return to producers of the citrus fruit will tend to be

increased through the operation of the marketing plan;

(3) the marketing plan may be operated without permitting

unreasonable profits to producers of the citrus fruit and without

unreasonably enhancing prices of the citrus fruit to consumers;

and

(4) the marketing plan will tend to advance public welfare and

conserve the agricultural wealth of the state by preventing

threatened economic or agricultural waste and will tend to

prevent chaotic marketing of the citrus fruit.

(b) The findings of the department, and the administration of

any marketing agreement or license, shall be based on relevant

considerations, including:

(1) the quantity of the several grades, varieties, and qualities

of the citrus fruit under consideration and available for

distribution to consumers in the marketing season during which

the program is to be effective;

(2) the quantity of the several grades, varieties, and qualities

of the citrus fruit required by consumers during the marketing

season during which the program is to be effective;

(3) the cost of production of the citrus fruit;

(4) the general purchasing power of consumers of the citrus

fruits;

(5) the general level of prices of commodities that farmers buy;

and

(6) the general level of prices of other commodities that

compete with or are used as substitutes for the citrus fruit.

Acts 1981, 67th Leg., p. 1268, ch. 388, Sec. 1, eff. Sept. 1,

1981.

Sec. 102.157. TERMS OF AGREEMENT OR LICENSE. (a) Any marketing

agreement executed or license issued may:

(1) limit or provide a method for limiting the total quantity of

any grade, variety, size, or quality of citrus fruit that may be

produced during one or more specified periods and marketed in or

transported to a market in intrastate commerce;

(2) allot or provide a method for allotting the amount of citrus

fruit or any grade, variety, size, or quality of citrus fruit

that each handler may market in intrastate commerce;

(3) determine or provide a method for determining the existence

and extent of a surplus of a citrus fruit or of any grade,

variety, size, or quality of a citrus fruit, provide for the

control and disposition of that surplus in a manner that does not

burden or obstruct interstate or foreign commerce, and equalize

the burden of a surplus elimination or control among the

producers and handlers of the citrus fruit;

(4) provide for administrative committees under Section 102.158

of this code; and

(5) provide other terms or conditions incidental to and

consistent with this section.

(b) If the marketing agreement or license allots or provides a

method for allotting the amount of a citrus fruit that a handler

may handle, the marketing agreement or license must:

(1) be under a uniform rule based on one or both of the

following:

(A) the amount of the citrus fruit or grade, variety, size, or

quality of the citrus fruit that each handler has available for

current shipment; and

(B) the amount shipped by each handler in a prior representative

period, as determined by the department; and

(2) equitably apportion among all the handlers the total

quantity of the citrus fruit or any grade, variety, size, or

quality of the citrus fruit to be marketed in or transported to

markets in intrastate commerce.

(c) A marketing agreement or license may include one or more of

the terms and conditions under Subsection (a) of this section,

but may not include others.

Acts 1981, 67th Leg., p. 1269, ch. 388, Sec. 1, eff. Sept. 1,

1981.

Sec. 102.158. ADMINISTRATIVE COMMITTEE. (a) A marketing

agreement or license may authorize the department to select and

define the powers and duties of one or more administrative

committees to administer the program.

(b) The department may authorize an administrative committee to:

(1) administer the license in accordance with its terms and

provisions;

(2) adopt rules to effectuate the terms and provisions of the

license;

(3) receive, investigate, and report to the department

complaints of violations of the license;

(4) recommend to the department amendments to the license; and

(5) collect assessments in accordance with Section 102.159 of

this code.

(c) The department may require an administrative committee to

file reports of the activities and proceedings of the committee.

Acts 1981, 67th Leg., p. 1269, ch. 388, Sec. 1, eff. Sept. 1,

1981.

Sec. 102.159. ASSESSMENT. (a) If an administrative committee

is authorized to collect an assessment, for each marketing season

or year in which the marketing agreement or license is effective

the committee shall collect from each handler an assessment

representing the handler's pro rata share of the estimated

expenses incurred by the department in conducting hearings and

incurred by the administrative committee in administering the

agreement or license during the marketing season or year. The

department shall estimate those expenses after each

administrative committee submits to the department a proposed

budget.

(b) An assessment levied under this section is a personal debt

of each person assessed and is immediately due and payable to the

administrative committee charged with collection. With the

approval of the department, an administrative committee may sue

in its own name in a court of competent jurisdiction for the

collection of an assessment.

(c) In accordance with the rules of the department, each

administrative committee charged with the collection of

assessments shall collect, report, and pay monthly to the

department the amount of the assessments that the department

determines will be necessary to defray the department's cost of

administering the marketing agreement or license during the

subsequent month.

(d) The department shall submit to each administrative committee

charged with collecting assessments quarterly statements

reporting the receipts and expenditures during the quarter in

connection with the administration of the appropriate marketing

agreement or license.

(e) An administrative committee may expend assessments for the

purposes set forth in the marketing agreement or license under

which the assessment is collected. The committee shall keep a

full and complete record of those expenditures and the department

is entitled to access to that record at any time.

(f) An administrative committee shall retain custody of

assessments that are not paid to the department or expended under

Subsection (e) of this section. At the close of the marketing

season or year for which an assessment is collected, the

committee shall return to each handler a pro rata share of

assessments that are not paid to the department or expended by

the committee.

Acts 1981, 67th Leg., p. 1270, ch. 388, Sec. 1, eff. Sept. 1,

1981.

Sec. 102.160. APPROVAL BY PRODUCERS AND HANDLERS. (a) A

license may not be issued until:

(1) assented to in writing by:

(A) 51 percent of the total number of handlers of the citrus

fruit; or

(B) the handlers of at least 51 percent of the total volume of

the citrus fruit covered by the license; and

(2) the department determines that the issuance of the license

is approved by:

(A) 66-2/3 percent of the producers who, during a representative

period determined by the department, have been engaged in the

production of the citrus fruit in commercial quantities in the

area covered by the license; or

(B) the producers who, during the representative period,

produced for market at least 66-2/3 percent of the volume of the

citrus fruit produced for market in the area covered by the

license.

(b) In determining the representative period under Subsection

(a)(2) of this section, the department may select the crop season

prior to the holding of a hearing on the issuance of the license

or any other period that the department determines to be

representative.

(c) In determining the approval of producers under Subsection

(a)(2) of this section, the department shall determine the

approval or disapproval of the producers in respect to the

issuance of any license or order or any term or condition of a

license or order. The department shall consider the approval or

disapproval of any cooperative association of producers that is

engaged in marketing the citrus fruit for producers or is

rendering service to or advancing the interest of those producers

as the approval or disapproval of the producers who are members

of, stockholders in, or under contract with the association.

Approval by an association may be executed in the name of the

association and is not required to set forth the names of the

producers represented by the association.

Acts 1981, 67th Leg., p. 1270, ch. 388, Sec. 1, eff. Sept. 1,

1981.

Sec. 102.161. UNIFORM LICENSES. If a license is issued under

this subchapter, the department shall issue an identical license

to each handler, processor, or distributor of the same class.

Acts 1981, 67th Leg., p. 1271, ch. 388, Sec. 1, eff. Sept. 1,

1981.

Sec. 102.162. FEES. Each person applying for a marketing

agreement or license shall submit to the department a filing fee,

as provided by department rule, and a deposit in an amount that

the department considers sufficient and necessary to defray the

expenses of preparing and making effective the marketing

agreement or license.

Acts 1981, 67th Leg., p. 1271, ch. 388, Sec. 1, eff. Sept. 1,

1981. Amended by Acts 1995, 74th Leg., ch. 419, Sec. 2.49, eff.

Sept. 1, 1995.

Sec. 102.163. AMENDMENT OF MARKETING AGREEMENT OR LICENSE. (a)

If the department has reason to believe that an amendment of a

marketing agreement or license is necessary or desirable to

achieve the policy of this subchapter, the department shall

conduct a hearing on the proposed amendment in the manner

provided for the original hearing on execution of the agreement

or issuance of the license.

(b) Notice of a hearing under this section must refer to the

marketing agreement to be amended by name and date of execution

and must refer to the license to be amended by name and date of

adoption.

(c) The department may adopt an amendment under this section if

it finds that the proposed amendment:

(1) will not prevent the marketing agreement or license from

meeting the requirements of Section 102.156 of this code; and

(2) will tend to facilitate the administration of the marketing

agreement or license or will enable the marketing agreement or

license to better meet the requirements of Section 102.156 of

this code.

(d) A marketing agreement or license is not affected by a

negative department finding under Subsection (c) of this section.

(e) In considering an amendment under this section, the

department shall consider the evidence presented at the original

hearing or a hearing on a previously proposed amendment.

(f) An amendment under this section is not effective until

approved by the handlers and producers in the manner provided by

Section 102.160 of this code.

Acts 1981, 67th Leg., p. 1271, ch. 388, Sec. 1, eff. Sept. 1,

1981.

Sec. 102.164. SUSPENSION OR TERMINATION OF MARKETING AGREEMENT

OR LICENSE. (a) The department shall suspend for a specified

period or terminate the operation of a marketing agreement, a

license, or a provision of a marketing agreement or license if

the department finds:

(1) following investigation, that the agreement, license, or

provision obstructs or does not tend to effectuate the policy of

this subchapter; or

(2) that termination of the agreement, license, or provision is

favored by a majority of the producers who, during a

representative period determined by the department:

(A) have been engaged in the production of the citrus fruit in

the area covered by the agreement or license; and

(B) produced more than 66-2/3 percent of the volume of the

citrus fruit that was produced for market within the area of the

state covered by this subchapter or was produced within the area

of this state covered by this subchapter for market elsewhere.

(b) Termination of a marketing agreement, a license, or a

provision of a marketing agreement or license is effective only

if announced on or before the end of the current marketing period

specified in the agreement or license.

Acts 1981, 67th Leg., p. 1272, ch. 388, Sec. 1, eff. Sept. 1,

1981.

Sec. 102.165. SUSPENSION OR REVOCATION OF INDIVIDUAL LICENSE.

After notice and opportunity for a hearing, the department may

suspend or revoke the license of any person who violates a

provision of the license.

Acts 1981, 67th Leg., p. 1272, ch. 388, Sec. 1, eff. Sept. 1,

1981.

Sec. 102.166. RECORDS. (a) Each person subject to a marketing

agreement or license shall:

(1) maintain records reflecting the person's operation under the

agreement or license;

(2) permit the department to inspect those records; and

(3) furnish to the department information requested by the

department relating to the person's operations under the

agreement or license.

(b) Except as otherwise provided by this subsection, information

obtained under this section is confidential and may not be

disclosed to any person. The information may be disclosed to a

person with a similar right to obtain the information or to an

attorney employed by an administrative committee to give legal

advice on the information. In addition, the information may be

disclosed in response to a court order.

Acts 1981, 67th Leg., p. 1272, ch. 388, Sec. 1, eff. Sept. 1,

1981.

Sec. 102.167. POWERS AND DUTIES OF THE DEPARTMENT. (a) The

department may adopt rules and issue orders as necessary or

desirable to carry out this subchapter.

(b) The department may hold hearings, take testimony, administer

oaths, subpoena witnesses, and issue subpoenas for the production

of relevant books, records, or documents. A person may not be

excused from attending and testifying or from producing

documentary evidence before the department in obedience to a

subpoena on the ground that the testimony or evidence required

may tend to incriminate the person or subject the person to a

penalty or forfeiture. An individual may not be prosecuted or

subjected to any penalty or forfeiture because of any

transaction, matter, or thing concerning which the person is

required to testify or produce evidence before the department in

obedience to a subpoena. An individual so testifying is not

exempt from prosecution and punishment for perjury committed in

that testimony.

(c) The department may permit an administrative committee to use

the various employees or officers of the department in carrying

out this subchapter or a marketing agreement or license under

this subchapter.

(d) The department may confer and cooperate with the authority

of another state or the United States in order to secure

uniformity in the administration of federal and state marketing

agreements, standards, licenses, orders, or rules. The department

may conduct hearings jointly with the United States Department of

Agriculture.

(e) Not later than the 30th day before the first day of each

regular session of the legislature, the department shall submit

to the governor a full report of transactions under this

subchapter during the preceding biennium. The report must include

a complete statement of receipts and expenditures under this

subchapter during the biennium.

(f) At the end of each month, the department shall report to the

comptroller of public accounts, and the comptroller shall deposit

in the state treasury, all money received under this subchapter.

Acts 1981, 67th Leg., p. 1272, ch. 388, Sec. 1, eff. Sept. 1,

1981.

Sec. 102.168. ENFORCEMENT BY CIVIL SUIT. (a) The state or,

with the approval of the department, an administrative committee

may sue a person who:

(1) wilfully exceeds any quota, allotment, or salable percentage

fixed for the person under a license issued or rule adopted by

the department;

(2) makes a shipment without first obtaining a required

allotment or quota or qualifying to ship the person's salable

percentage; or

(3) knowingly participates or aids in activities under

Subdivision (1) or (2) of this subsection.

(b) If successful in a suit under Subsection (a) of this

section, the state or administrative committee is entitled to

recover an amount equal to three times the current market value

of the citrus fruit excess or the citrus fruit shipment, as

applicable. Funds recovered in a suit under this section shall be

used in the administration of the license involved in the suit.

Acts 1981, 67th Leg., p. 1273, ch. 388, Sec. 1, eff. Sept. 1,

1981.

Sec. 102.169. INJUNCTION. The attorney general or a district or

county attorney on the attorney's own initiative may, or in

response to a complaint shall, investigate violations of this

subchapter. If the attorney believes that a violation has

occurred, the attorney may sue in the name of the state for an

injunction against a person who:

(1) is violating a provision of a marketing agreement, a

license, or an order or rule of the department to which the

person is subject; or

(2) engages in transactions mentioned in and regulated by a

license during suspension or after revocation of the person's

license.

Acts 1981, 67th Leg., p. 1273, ch. 388, Sec. 1, eff. Sept. 1,

1981.

Sec. 102.170. ATTORNEY'S FEES; VENUE; CUMULATIVE REMEDIES. (a)

In an action brought under Section 102.168 or 102.169 of this

code, the judgment, if in favor of the plaintiff, shall provide

that the defendant pay to the plaintiff a reasonable attorney's

fee and all costs of suit. An action under those sections may be

brought in the county where the defendant resides or where the

act, omission, or part of the act or omission occurred.

(b) The remedies and penalties of this subchapter are cumulative

and action or prosecution under a section of this subchapter does

not prohibit action or prosecution under another section of this

subchapter or any other civil or criminal law.

Acts 1981, 67th Leg., p. 1274, ch. 388, Sec. 1, eff. Sept. 1,

1981.

Sec. 102.171. PENALTY. (a) A person commits an offense if the

person:

(1) violates a provision of a marketing agreement or license to

which the person is subject; or

(2) engages in a transaction mentioned in and regulated by a

license to which the person is subject during the suspension or

after the revocation of the person's license.

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

(c) A person commits a separate offense for each day during

which the person acts under Subsection (a) of this section.

Acts 1981, 67th Leg., p. 1274, ch. 388, Sec. 1, eff. Sept. 1,

1981. Amended by Acts 1989, 71st Leg., ch. 230, Sec. 120, eff.

Sept. 1, 1989.

Sec. 102.172. CONFLICT WITH ANTITRUST LAW. If any provision of

this subchapter conflicts with a provision of the civil or

criminal antitrust law of this state, the antitrust law prevails.

Acts 1981, 67th Leg., p. 1274, ch. 388, Sec. 1, eff. Sept. 1,

1981.