BILL ANALYSIS



C.S.H.B. 2892
By: Patterson
April 13, 1995
Committee Report (Substituted)


BACKGROUND

In 1993, legislation was passed that established the boll weevil
eradication program.  This program is administered by the Texas
Boll Weevil Eradication Foundation Board which is elected by
cotton growers.  The goal of the program is to eradicate the boll
weevil through the use of integrated pest management (IPM).  IPM
calls for "...the coordinated use of pest and environmental
information with available pest control methods to prevent
unacceptable levels of pest damage by the most economical means
and with the least possible hazard to people, property, and the
environment" per the established law.  

During the establishment of the program over the past two years
some issues unaddressed in the original legislation have arisen. 
Because federal funds have been slow in payment, the Foundation
has sought commercial loans, but found that the original
legislation does not have provisions for this.  Some counties
that were not originally included in a zone because no cotton was
grown there, now have cotton.  The Foundation felt that the
success of the program should be the first priority of the
program above the priority to protect the certification of
organic producers.  These are equal priorities in current law. 


PURPOSE

The purpose of this legislation is to allow the Texas Boll Weevil
Eradication Foundation Board to borrow funds, annex counties into
eradication zones, and set program priorities.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly
grant any additional rulemaking authority to a state officer,
department, agency, or institution.

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 74.102, Agriculture Code, by expanding
the definitions of "cotton grower", "High Plains Boll Weevil
Suppression Program Area", and "St. Lawrence Cotton Growers Boll
Weevil Control Zone". 

SECTION 2.  Amends Section 74.107(a), Agriculture Code.  Permits
a county in the St. Lawrence Cotton Growers Boll Weevil Control
Zone to transfer to another zone.

SECTION 3.  Amends Section 74.108, Agriculture Code.  Provides
the board with the authority to:

     (5)  accept gifts and grants.

     (6)  borrow money.

     (7) exercise authority necessary to carry out the purposes
of this chapter.

     (8) annex cotton producing counties adjacent to an
eradication zone if the addition is     approved in a referendum. 
Requires the board to hold informational meetings      detailing
the program and assessments by the 60th day prior to the average
planting   date for the area.  Prohibits an area from being
removed from the High Plains Boll  Weevil Suppression Program
Area.

SECTION 4.  Amends Section 74.109, Agriculture Code.

     (c) Requires the foundation to provide fidelity bonds, in
amounts determined by the     board, for persons who manage
foundation funds.

     (d) Sets forth that the foundation and board are state
agencies for the purposes of tax   exemption and indemnification. 


     (f)  Establishes that the foundation is a "governmental
unit" entitled to governmental     immunity and subjects tort
claims against the foundation to Chapter 101 of the Texas   Civil
Practices and Remedies Code.

SECTION 5.  Amends Section 74.110(a), Agriculture Code.  Extends
liability protection to the foundation and its directors.

SECTION 6.  Amends Section 74.113(f), Agriculture Code.  Sets
forth that the foundation's operating costs include payments on
foundation debt.  Prohibits the funds of one zone being used to
pay another zone's bank loans.

SECTION 7.  Amends Section 74.114, Agriculture Code, by amending
Subsections (f) and (i) and adding (j).  

     (f) Requires ballots to be mailed to a central location to
be determined by the     commissioner until a board is elected. 
Sets forth that eligible voters who have not      received a
ballot may request a ballot by mail or obtain a ballot from their
county     agricultural extension agent or a government office
distributing ballots.  Deletes     language that allowed a county
agent to hold completed ballots.
 
     (i) Requires the foundation to hold a public hearing
offering information on the   eradication program and its
regulations.  Limits the coverage area for each hearing to  six
contiguous counties that are producing cotton at the time of the
hearing.
     
     (j) Sets forth that all voter information is confidential
and is not subject to the Texas         Open Records Act.

SECTION 8.  Amends Section 74.115, Agriculture Code, Subsections
(b) and (c).  

     (b) Reduces the amount of time that a cotton grower has to
pay overdue assessments  and penalties to 10 days.  Sets forth
that the grower will be held responsible for the  costs of
destroying his host plants.

     (c) Allows the department of agriculture (the department) to
perfect a lien on cotton      produced that year from the acreage
subject to the overdue and unpaid assessment.

SECTION 9.  Amends Section 74.116(b), Agriculture Code. 
Specifies that exemption from assessments is based on the
grower's federal income taxation for the previous year.

SECTION 10.  Amends Section 74.120(c), Agriculture Code.  Extends
rulemaking authority to the department.

SECTION 11.  Amends Section 74.125, Agriculture Code.  Sets forth
that in all events the board shall maintain the effectiveness of
the program.  Prohibits the board from treating certified organic
cotton fields with chemicals.  Sets forth that plow-up is an
alternative to chemicals.  Allows the board to pay an indemnity
less the proceeds from an alternative crop to organic producers
who are prohibited from planting cotton or whose cotton is
destroyed.

SECTION 12.  Amends Section 74.126, Agriculture Code.  Extends
the authority to find a person in violation of this subchapter to
the foundation.  Also permits the foundation to request a suit be
filed for appropriate relief.

SECTION 13.  Amends Section 74.127(c), Agriculture Code.  Sets
forth that if the foundation is abolished, assessments will be
extended to meet the foundation's financial obligations.

SECTION 14.  Effective Date: September 1, 1995.

SECTION 15.  Emergency Clause.

COMPARISON OF ORIGINAL TO SUBSTITUTE

The substitute allows counties to be annexed into an existing
zone only if the addition is approved in a referendum; prohibits
an area being removed from the existing High Plains Boll Weevil
Suppression Program Area zone; prohibits the funds of one zone
being used to pay another zones's bank loans; and allows the
department to perfect a lien on cotton produced during the year
that an assessment was unpaid.  The original bill allowed a lien
on any cotton produced on the acreage for the next five years.

The original bill set forth that the board would endeavor to
develop rules to protect organic cotton production, but must give
highest priority to the eradication program.  The substitute sets
forth that in all events the board shall maintain the
effectiveness of the program, but must not endanger the
certification of an organic cotton grower by the spraying of
chemicals.  The substitute establishes an indemnity provision for
the organic growers.
  
SUMMARY OF COMMITTEE ACTION

H.B. 2892 was considered by the committee in a public hearing on
April 4, 1995.

The following persons testified in favor of the bill:

     Mr. Woody Anderson representing himself and the Texas Boll
Weevil Eradication  Foundation;

     Mr. Wayne Huffaker representing himself and the Plains
Cotton Growers;

     Mr. Craig D. Shook representing Texas Cotton Producers;

     Mr. Durwood Tucker representing the Texas Farm Bureau; and

     Mr. Ed Small representing the Texas Boll Weevil Eradication
Foundation.

The following persons testified against the bill:

     Mr. Laurance Kriegel representing himself and the Texas
Organic Cotton Marketing      Cooperative;

     Mr. James L. Wedel representing himself and the Texas
Organic Cotton Marketing      Cooperative;

     Mr. Terry Pepper representing himself;

     Mr. Cliff Bingham representing the Texas Organic Cotton
Marketing Cooperative;

     Mr. Tommy D. Fondren representing himself;

     Mr. Joe Rankin representing himself and the Texas Farmers
Union;

     Mr. Reggie James representing Consumers Union; and

     Mr. Scott Royder repenting the Sierra Club, Lone Star
Chapter.

The following person testified neutrally on the bill:

     Ms. Susan Pitman representing The Chemical Connection, A
Public Health Network of      Texans Sensitive to Chemicals.

The bill was left pending.

H.B. 2892 was considered by the committee in a public hearing on
April 11, 1995.

The committee considered a complete substitute for the bill.

The substitute was withdrawn without objection.

The bill was left pending.

H.B. 2892 was considered by the committee in a formal meeting on
April 11, 1995.

The committee considered a complete substitute for the bill.

The substitute was adopted without objection.

The bill was reported favorably as substituted, with the
recommendation that it do pass and be printed, by a record vote
of 7 ayes, 0 nays, 0 pnv, and 2 absent.