By: Patterson H.B. No. 353 73R1885 MJW-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to providing for methods and procedures for the 1-3 eradication of boll weevils in cotton; providing penalties. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Chapter 74, Agriculture Code, is amended by 1-6 adding Subchapter D to read as follows: 1-7 SUBCHAPTER D. OFFICIAL COTTON GROWERS' BOLL WEEVIL 1-8 ERADICATION FOUNDATION 1-9 Sec. 74.101. DEFINITIONS. In this subchapter: 1-10 (1) "Board" means the board of directors of the 1-11 official cotton growers' boll weevil eradication foundation. 1-12 (2) "Boll weevil" has the meaning assigned by Section 1-13 74.002 of this code. 1-14 (3) "Cotton" means: 1-15 (A) a cotton plant; 1-16 (B) a part of a cotton plant, including bolls, 1-17 stalks, flowers, roots, and leaves; or 1-18 (C) cotton products, including seed cotton, 1-19 cottonseed, and hulls. 1-20 (4) "Cotton grower" means an individual who: 1-21 (A) grows cotton; and 1-22 (B) receives direct income on or after June 1, 1-23 1992, from the sale of the cotton. 1-24 (5) "Eradication" means elimination of boll weevils to 2-1 the extent that the commissioner does not consider further 2-2 elimination of boll weevils necessary to prevent economic loss to 2-3 cotton growers. 2-4 (6) "Eradication zone" means a geographic area in 2-5 which cotton growers by referendum approve their participation in a 2-6 boll weevil eradication program. 2-7 (7) "Foundation" means the official cotton growers' 2-8 boll weevil eradication foundation. 2-9 (8) "High Plains Boll Weevil Suppression Program Area" 2-10 includes: Bailey, Borden, Briscoe, Castro, Cochran, Crosby, 2-11 Dawson, Deaf Smith, Dickens, Floyd, Gaines, Garza, Hale, Hockley, 2-12 Howard, Lamb, Lubbock, Lynn, Martin, Midland, Motley, Parmer, 2-13 Swisher, Terry, and Yoakum counties. 2-14 (9) "Host" means a plant or plant product in which the 2-15 boll weevil is capable of completing any portion of its life cycle. 2-16 (10) "Infested" means the presence of the boll weevil 2-17 in any life stage or the existence of generally accepted 2-18 entomological evidence from which it may be concluded with 2-19 reasonable certainty that the boll weevil is present. 2-20 (11) "Regulated article" means an article carrying or 2-21 capable of carrying the boll weevil, including cotton plants, seed 2-22 cotton, gin trash, other hosts, or mechanical cotton pickers. 2-23 Sec. 74.102. CERTIFICATION BY COMMISSIONER; REQUIREMENTS. 2-24 (a) A nonprofit organization authorized under the laws of this 2-25 state that represents cotton growers may petition the commissioner 2-26 for certification as the organization authorized to: 2-27 (1) create a foundation; 3-1 (2) conduct the initial election of the board; and 3-2 (3) conduct referenda to establish eradication zones. 3-3 (b) A petition under this section must include: 3-4 (1) a geographic description of each proposed 3-5 eradication zone, including a separate proposed eradication zone 3-6 for the High Plains Boll Weevil Suppression Program Area if the 3-7 petition proposes coverage for a part or all of that area; 3-8 (2) an initial plan for representation for each 3-9 proposed eradication zone on a board consisting of 6, 9, 12, or 15 3-10 members; and 3-11 (3) any other information required by the 3-12 commissioner. 3-13 (c) Not later than the 60th day after the date on which the 3-14 commissioner receives a petition for certification, the 3-15 commissioner shall hold a public hearing to consider the pending 3-16 petition. 3-17 (d) After a hearing is held under Subsection (c) of this 3-18 section, the commissioner may select one organization to implement 3-19 this subchapter and shall certify that the selected organization: 3-20 (1) has submitted a petition that complies with this 3-21 subchapter; 3-22 (2) can adequately represent the interests of cotton 3-23 growers in the proposed eradication zones described by the 3-24 organization's petition; and 3-25 (3) is authorized to conduct the initial eradication 3-26 zone referenda and board elections under Sections 74.104 and 3-27 74.105 of this code. 4-1 (e) If more than one nonprofit organization petitions the 4-2 commissioner for certification under this section, the commissioner 4-3 shall select the organization that can best carry out the purposes 4-4 of this subchapter according to objective criteria determined by 4-5 the commissioner. 4-6 Sec. 74.103. CERTIFICATION; REVOCATION. (a) The 4-7 commissioner shall certify the petitioning organization selected 4-8 under Section 74.102 of this code as the organization authorized to 4-9 create an official boll weevil eradication foundation. The 4-10 selected organization may conduct the initial eradication zone 4-11 referenda and board elections. A certification is valid for the 4-12 purposes of this subchapter only and does not affect other 4-13 organizations or associations of cotton growers established for 4-14 other purposes. 4-15 (b) The commissioner shall certify only one organization 4-16 under this section. The commissioner may revoke the organization's 4-17 certification on 60 days' written notice if the organization fails 4-18 to meet the requirements of this subchapter. 4-19 Sec. 74.104. ERADICATION ZONE REFERENDA. (a) The 4-20 organization certified under Section 74.103 of this code or the 4-21 foundation shall conduct a referendum in each proposed eradication 4-22 zone to determine whether cotton growers desire to establish an 4-23 official boll weevil eradication zone. 4-24 (b) Eradication zone referenda shall be conducted under the 4-25 procedures provided by Section 74.113 of this code. 4-26 (c) A proposed eradication zone referendum ballot must 4-27 include, or be accompanied by, information about the proposed 5-1 eradication zone, including: 5-2 (1) a statement of the purpose of the boll weevil 5-3 eradication program; 5-4 (2) the geographic area included in the proposed 5-5 eradication zone; 5-6 (3) a general summary of rules adopted by the 5-7 commissioner under Sections 74.113, 74.117, and 74.119 of this 5-8 code, including a description of: 5-9 (A) cotton grower responsibilities; and 5-10 (B) penalties for noncompliance with rules 5-11 adopted under this subchapter; and 5-12 (4) an address and toll-free telephone number that a 5-13 cotton grower may use to request more information about the 5-14 referendum or the boll weevil eradication program. 5-15 (d) If a referendum to establish an eradication zone fails, 5-16 the concurrent election of board members from the proposed 5-17 eradication zone under Section 74.105 of this code has no effect. 5-18 (e) The organization certified under Section 74.103 of this 5-19 code or the foundation, as appropriate, may call additional 5-20 referenda in a proposed eradication zone in which a referendum has 5-21 failed. Additional eradication zone referenda and concurrent board 5-22 elections may be held no earlier than the 121st day after the date 5-23 of the last referendum. 5-24 Sec. 74.105. BOARD ELECTIONS. (a) The initial election for 5-25 board members from a proposed eradication zone shall be held 5-26 concurrently with an eradication zone referendum held under Section 5-27 74.104 of this code. 6-1 (b) A board election shall be conducted under the procedures 6-2 provided by this section and Section 74.113 of this code. 6-3 (c) A cotton grower who is eligible to vote in a referendum 6-4 or election under this subchapter is eligible to be a candidate for 6-5 and member of the board. 6-6 (d) A cotton grower who wants to be a candidate for the 6-7 board must file an application with the secretary of the foundation 6-8 or, before certification of the organization under Section 74.103 6-9 of this code, the commissioner. The application must be: 6-10 (1) filed not later than the 30th day before the date 6-11 set for the board election; 6-12 (2) on a form approved by the commissioner; and 6-13 (3) signed by at least 10 cotton growers who are 6-14 eligible to vote in the board election. 6-15 (e) On receipt of an application and verification that the 6-16 application meets the requirements of Subsection (d) of this 6-17 section, an applicant's name shall be placed on the ballot for the 6-18 board election. 6-19 (f) An eligible voter may vote for a cotton grower whose 6-20 name does not appear on the official ballot by writing in that 6-21 person's name on the ballot. 6-22 (g) A board election must be preceded by at least 45 days' 6-23 notice published in one or more newspapers published and 6-24 distributed in the proposed or established eradication zone. The 6-25 notice shall be published not less than once a week for three 6-26 consecutive weeks. Not later than the 45th day before the date of 6-27 the election, direct written notice of the election shall be given 7-1 to each county agent in the eradication zone. 7-2 Sec. 74.106. COMPOSITION OF BOARD. (a) The foundation 7-3 shall select one member of the board. 7-4 (b) The High Plains Boll Weevil Suppression Program Area is 7-5 a separate zone for the purposes of boll weevil eradication and may 7-6 not be combined with another area in an eradication zone under this 7-7 subchapter. 7-8 (c) The board, with the commissioner's approval, may change 7-9 the number of board positions or the eradication zone 7-10 representation on the board. A change under this subsection may 7-11 not contravene another provision of this subchapter. 7-12 Sec. 74.107. BOARD POWERS. The board may: 7-13 (1) conduct board elections; 7-14 (2) conduct eradication zone referenda; 7-15 (3) conduct assessment referenda under Section 74.112 7-16 of this code; and 7-17 (4) form an advisory committee composed of individuals 7-18 from this state, other states, or other countries and change 7-19 membership on the committee, as necessary. 7-20 Sec. 74.108. BOARD DUTIES. (a) The board shall make 7-21 available for inspection at an annual independent audit all books, 7-22 records of account, and minutes of proceedings maintained by the 7-23 foundation. 7-24 (b) Not later than the 45th day after the last day of the 7-25 fiscal year, the board shall submit to the commissioner a report 7-26 itemizing all income and expenditures and describing all activities 7-27 of the foundation during the fiscal year. 8-1 (c) The foundation shall provide surety bonds in amounts 8-2 determined by the commissioner for employees or agents who handle 8-3 funds for the foundation. 8-4 (d) The foundation shall collect, receive, hold in trust, 8-5 and disburse all assessments and other funds collected under this 8-6 subchapter as trust funds of the foundation. The foundation board 8-7 is a state agency only for purposes of exemption from taxation and 8-8 indemnification and for no other purpose. Funds collected by the 8-9 foundation are not state funds and are not required to be deposited 8-10 in the state treasury. The foundation shall deposit all money 8-11 collected under this subchapter in a bank or other depository 8-12 approved by the board. 8-13 Sec. 74.109. LIABILITY OF FOUNDATION MEMBERS, OFFICERS, AND 8-14 EMPLOYEES. (a) Except for instances of gross negligence, 8-15 individual criminal actions, or acts of dishonesty, the 8-16 foundation's members, officers, and employees are not individually 8-17 liable to a cotton grower or other person for: 8-18 (1) errors in judgment; 8-19 (2) mistakes; or 8-20 (3) other acts or omissions. 8-21 (b) A foundation member, officer, or employee is not 8-22 individually liable for an act or omission of another foundation 8-23 member, officer, or employee. 8-24 Sec. 74.110. BOARD MEMBER COMPENSATION. Board members serve 8-25 without compensation but are entitled to reimbursement for 8-26 reasonable and necessary expenses incurred in the discharge of 8-27 their duties. 9-1 Sec. 74.111. DISPOSITION OF FUNDS ON DISCONTINUATION OF 9-2 FOUNDATION. (a) On discontinuation of the foundation, the 9-3 commissioner shall pay from the foundation's funds all of the 9-4 foundation's obligations. 9-5 (b) Funds remaining after payment under Subsection (a) of 9-6 this section shall be returned to contributing cotton growers on a 9-7 pro rata basis. 9-8 Sec. 74.112. ASSESSMENT REFERENDA. (a) The foundation 9-9 shall determine the assessment needed in each eradication zone to 9-10 accomplish the goals of the eradication program. 9-11 (b) The foundation shall propose in a referendum the: 9-12 (1) maximum assessment to be paid by cotton growers 9-13 having production in the eradication zone; and 9-14 (2) time for which the assessment will be made. 9-15 (c) The foundation may make an assessment in an eradication 9-16 zone at a level less than the assessment approved by the 9-17 referendum. 9-18 (d) The foundation shall conduct an assessment referendum 9-19 under the procedures provided by Section 74.113 of this code. 9-20 (e) If an assessment referendum is approved, the foundation 9-21 may collect the assessment. 9-22 (f) An assessment levied on cotton growers in an eradication 9-23 zone may be applied only to: 9-24 (1) eradication in that zone; and 9-25 (2) the foundation's operating costs. 9-26 Sec. 74.113. CONDUCT OF REFERENDA AND BOARD ELECTIONS; 9-27 BALLOTING. (a) The foundation shall conduct a referendum or board 10-1 election under its jurisdiction. 10-2 (b) The foundation shall bear all expenses incurred in 10-3 conducting a referendum or board election. 10-4 (c) The commissioner shall adopt rules for voting in the 10-5 initial board election and initial referenda to establish 10-6 eradication zones. The board shall adopt rules for voting in other 10-7 referenda and board elections. Rules adopted under this subsection 10-8 must include provisions for: 10-9 (1) who is a cotton grower eligible to vote in an 10-10 election; 10-11 (2) whether a board member is elected by a plurality 10-12 or a majority of the votes cast; and 10-13 (3) the area from which each board member is elected. 10-14 (d) A cotton grower having cotton production in a proposed 10-15 or established eradication zone is entitled to: 10-16 (1) vote in a referendum concerning the eradication 10-17 zone; and 10-18 (2) elect board members to represent the eradication 10-19 zone. 10-20 (e) An eligible cotton grower may vote only once in a 10-21 referendum or board election. 10-22 (f) Ballots in a referendum or board election may be mailed 10-23 to a central location to be initially determined by the 10-24 commissioner and later determined by the board. A cotton grower 10-25 eligible to vote in a referendum or board election shall be offered 10-26 the option of voting in person at the office of the county agent of 10-27 the Texas Agricultural Extension Service in the county in which the 11-1 cotton grower resides. A county agent shall hold ballots received 11-2 under this section in trust and shall count the ballots and report 11-3 the results to the commissioner and the foundation. 11-4 (g) A referendum is approved if: 11-5 (1) at least two-thirds of those voting vote in favor 11-6 of the referendum; or 11-7 (2) those voting in favor of the referendum farm more 11-8 than 50 percent, as determined by the commissioner, of the cotton 11-9 acreage in the relevant eradication zone. 11-10 (h) If a referendum under this subchapter is not approved, 11-11 the foundation may, with the approval of the commissioner, conduct 11-12 another referendum. A referendum under this subsection may not be 11-13 held before the 121st day after the date on which the last 11-14 referendum on the same issue was held. 11-15 Sec. 74.114. FAILURE TO PAY ASSESSMENTS. (a) A cotton 11-16 grower who fails to pay an assessment levied under this subchapter 11-17 when due may be subjected, after reasonable notice, to a penalty 11-18 set by the board. 11-19 (b) A cotton grower who fails to pay all assessments and 11-20 penalties before the 31st day after receiving notice of the 11-21 delinquency shall destroy any cotton growing on the grower's 11-22 acreage that is subject to the assessment. Cotton plants that are 11-23 not destroyed are a public nuisance, and on recommendation of the 11-24 foundation, the department shall follow the procedures for 11-25 destruction of host plants provided by Subchapter A of this 11-26 chapter. The department may apply to a district court with 11-27 jurisdiction in the county in which the public nuisance is located 12-1 to have the nuisance condemned and destroyed. Injunctive relief 12-2 available to the department under this subchapter is in addition to 12-3 any other legal remedy available to the department. The department 12-4 is not required to file a bond in a proceeding under this 12-5 subsection. 12-6 (c) In addition to any other remedies for the collection of 12-7 assessments and penalties, the department may place and perfect a 12-8 lien on cotton produced and harvested before the destruction of 12-9 other cotton grown from the acreage that is subject to the 12-10 assessment that is due and unpaid. A buyer of cotton takes free of 12-11 the lien if the buyer has not received written or actual notice of 12-12 the lien from the department or if the buyer has paid for the 12-13 cotton by a check on which the department is named as a joint 12-14 payee. In an action to enforce the lien, the burden is on the 12-15 department to prove that the buyer of cotton received written or 12-16 actual notice of the lien. A buyer of cotton other than a person 12-17 buying cotton from the cotton grower takes free of the lien. 12-18 Sec. 74.115. EXEMPTION FROM ASSESSMENT PENALTIES. (a) The 12-19 commissioner by rule shall adopt criteria for exempting from 12-20 payment of assessment penalties under Section 74.114 of this code a 12-21 cotton grower for whom payment would impose an undue financial 12-22 burden. 12-23 (b) A cotton grower may not qualify for an exemption under 12-24 this section for a year in which the amount computed by subtracting 12-25 the assessments and penalties due under this subchapter from the 12-26 cotton grower's net income subject to federal income taxation is 12-27 greater than $15,000. 13-1 (c) A cotton grower who applies for an exemption under this 13-2 section must use a form prescribed by the commissioner. A cotton 13-3 grower must file a separate application form for each year for 13-4 which the cotton grower claims an exemption. 13-5 (d) The commissioner shall forward to the foundation a 13-6 completed exemption application form. The foundation shall 13-7 determine whether the applicant qualifies for an exemption and 13-8 shall notify the commissioner of its determination. 13-9 (e) On notification by the foundation that a cotton grower 13-10 qualifies for an exemption, the commissioner shall exempt the 13-11 cotton grower from payment of an assessment penalty under Section 13-12 74.114 of this code. 13-13 (f) On the foundation's recommendation, the commissioner may 13-14 establish a payment plan for a cotton grower applying for an 13-15 exemption under this section. 13-16 (g) The commissioner shall promptly notify an applicant of 13-17 the foundation's determination regarding the applicant's request 13-18 for an exemption. 13-19 (h) If an exemption under this section is denied, 13-20 assessments and penalties for the year for which the application is 13-21 made are due on the later of: 13-22 (1) the date on which they would be due in the absence 13-23 of an application for exemption; or 13-24 (2) 30 days after the date the applicant receives 13-25 notice of the denial. 13-26 Sec. 74.116. ENTRY OF PREMISES; ERADICATION ACTIVITIES; 13-27 INSPECTIONS. The department, the foundation, or a designated 14-1 representative of either entity may enter cotton fields or other 14-2 premises to carry out the purposes of this subchapter and 14-3 Subchapter A of this chapter, which include the treatment, 14-4 monitoring, and destruction of growing cotton or other host plants. 14-5 The department, the foundation, or a designated representative of 14-6 either entity may inspect fields or premises in this state for the 14-7 purpose of determining whether the property is infested with the 14-8 boll weevil. An inspection must be conducted during reasonable 14-9 daylight hours. 14-10 Sec. 74.117. AUTHORITY TO PROHIBIT PLANTING OF COTTON AND 14-11 REQUIRE PARTICIPATION IN ERADICATION PROGRAM. (a) The 14-12 commissioner may adopt reasonable rules regarding areas where 14-13 cotton may not be planted in an eradication zone if there is reason 14-14 to believe planting will jeopardize the success of the program or 14-15 present a hazard to public health or safety. 14-16 (b) The commissioner may adopt rules prohibiting the 14-17 planting of noncommercial cotton in eradication zones and requiring 14-18 that all growers of commercial cotton in an eradication zone 14-19 participate in a boll weevil eradication program that includes cost 14-20 sharing as required by the rules. 14-21 (c) Notice of prohibitions and requirements shall be given 14-22 by publication for one day each week for three successive weeks in 14-23 a newspaper having general circulation in the affected area. 14-24 (d) The commissioner may adopt a reasonable schedule of 14-25 penalty fees to be assessed on growers in a designated eradication 14-26 zone who do not meet the requirements of the rules issued by the 14-27 commissioner relating to reporting of acreage and participation in 15-1 cost sharing. The penalty fees adopted may not exceed $50 per 15-2 acre. 15-3 (e) If a grower fails to meet the requirements of rules 15-4 adopted by the commissioner, the commissioner may order the 15-5 destruction of cotton not in compliance with the rules. Costs 15-6 incurred by the commissioner in the destruction of cotton may be 15-7 assessed against the grower. 15-8 Sec. 74.118. AUTHORITY FOR DESTRUCTION OR TREATMENT OF 15-9 COTTON IN ERADICATION ZONES; COMPENSATION PAYABLE. The department 15-10 may destroy or treat volunteer or other noncommercial cotton and 15-11 establish procedures for the purchase and destruction of commercial 15-12 cotton in eradication zones if the department determines the action 15-13 is necessary to carry out the purposes of this subchapter. The 15-14 department is not liable to the owner or lessee for the destruction 15-15 or injury of any cotton that was planted in an eradication zone 15-16 after publication of notice as provided by this subchapter. The 15-17 foundation is liable for the destruction of cotton if the cotton 15-18 was planted in an eradication zone before publication of the 15-19 notice. 15-20 Sec. 74.119. AUTHORITY TO ADOPT RULES. (a) The 15-21 commissioner may adopt rules necessary to protect individuals, 15-22 livestock, or honeybee colonies on any premises in an eradication 15-23 zone on which cotton plants are being grown that have been or are 15-24 being treated to eradicate the boll weevil. 15-25 (b) The foundation may adopt other reasonable rules it 15-26 considers necessary to carry out the purposes of this subchapter 15-27 and Subchapter A of this chapter. All rules issued under this 16-1 subchapter must be adopted and published in accordance with state 16-2 requirements. 16-3 Sec. 74.120. REPORTS. Each person growing cotton in this 16-4 state shall furnish to the foundation on forms supplied by the 16-5 foundation information that the foundation requires concerning the 16-6 size and location of all commercial cotton fields and of 16-7 noncommercial patches of cotton grown as ornamental or for other 16-8 purposes. 16-9 Sec. 74.121. QUARANTINE. The department may adopt rules 16-10 relating to quarantining areas of this state that are infected with 16-11 the boll weevil. The rules must address the storage of regulated 16-12 articles and the movement of regulated articles into and out of a 16-13 quarantined area. The department may also adopt rules governing 16-14 the movement of regulated articles from other states into this 16-15 state if the articles are known to be infested with the boll 16-16 weevil. 16-17 Sec. 74.122. DOCUMENTING REGULATED ARTICLES. To implement 16-18 this subchapter, the department may issue or authorize issuance of: 16-19 (1) a certificate that indicates that a regulated 16-20 article is not infested with the boll weevil; and 16-21 (2) a permit that provides for the movement of a 16-22 regulated article to a restricted designation for limited handling, 16-23 use, or processing. 16-24 Sec. 74.123. COOPERATIVE PROGRAMS AUTHORIZED. (a) The 16-25 foundation may carry out programs to destroy and eliminate the boll 16-26 weevil in this state by cooperating through written agreements 16-27 with: 17-1 (1) an agency of the federal government; 17-2 (2) a state agency; 17-3 (3) an appropriate agency of a foreign country 17-4 contiguous to the affected area to the extent allowed by federal 17-5 law; 17-6 (4) a person who is engaged in growing, processing, 17-7 marketing, or handling cotton; or 17-8 (5) a group of persons in this state involved in 17-9 similar programs to carry out the purposes of this subchapter. 17-10 (b) An agreement entered into under this section may provide 17-11 for cost sharing and for division of duties and responsibilities 17-12 under this subchapter and may include other provisions to carry out 17-13 the purposes of this subchapter. 17-14 Sec. 74.124. ORGANIC PRODUCERS. The board, in cooperation 17-15 with the department, shall develop rules and procedures necessary 17-16 to protect both the eligibility of organic producers to be 17-17 certified by the department and the effectiveness of the boll 17-18 weevil eradication program administered under this subchapter. 17-19 Sec. 74.125. PENALTIES. (a) A person who violates this 17-20 subchapter or a rule adopted under this subchapter or who alters, 17-21 forges, counterfeits, or uses without authority a certificate, 17-22 permit, or other document issued under this subchapter or a rule 17-23 adopted under this subchapter commits an offense. 17-24 (b) An offense under this section is a Class C misdemeanor. 17-25 Sec. 74.126. SUNSET PROVISION. The board is subject to 17-26 Chapter 325, Government Code (Texas Sunset Act). Unless continued 17-27 in existence as provided by that chapter, the board is abolished 18-1 and this subchapter expires September 1, 2004. 18-2 SECTION 2. This Act takes effect June 1, 1993, except that 18-3 the Department of Agriculture may not destroy or treat cotton as 18-4 permitted by Section 74.118, Agriculture Code, as added by this 18-5 Act, before June 1, 1995. 18-6 SECTION 3. The importance of this legislation and the 18-7 crowded condition of the calendars in both houses create an 18-8 emergency and an imperative public necessity that the 18-9 constitutional rule requiring bills to be read on three several 18-10 days in each house be suspended, and this rule is hereby suspended, 18-11 and that this Act take effect and be in force according to its 18-12 terms, and it is so enacted.