HBA-BSM H.B. 1039 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 1039
By: Homer
Agriculture & Livestock
4/16/2001
Introduced



BACKGROUND AND PURPOSE 

Currently, the federal milk marketing order pricing system establishes
minimum prices but does not fully account for regional differences in the
cost of producing milk.  By design, the federal order program relies on
state regulation for an adjustment in fluid milk prices to account for
regional differences.  However, since most milk now almost always crosses
state lines to get to markets, the courts have ruled that individual states
do not have the authority to regulate milk prices.  As of 1999, Texas had
lost over one third of its dairy farms and 10 percent of its milk
production, a trend that may continue as long as the cost of milk
production exceeds the price of milk.  To remedy this situation, House Bill
1039 creates and sets forth regulations for participation by the state of
Texas in the Southern Dairy Compact Commission.   

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

House Bill 1039 amends the Agriculture Code to provide for the ratification
of the Southern Dairy Compact and provides that the provisions of this bill
and the state's delegation to the compact commission are subject to the
Texas Sunset Act and the provisions of this bill expire and the commission
is abolished on September 1, 2003, unless continued in existence.  The bill
sets forth the terms and qualifications of the Texas delegates to the
compact commission.  The bill also includes provisions that establish a
maximum administration penalty of $500 for any violation of the bill.   

EFFECTIVE DATE

On passage, or if the Act does not receive the necessary vote, the Act
takes effect on the 91st day after adjournment.