By:  Sims, Lucio                                      S.B. No. 1196
                                 A BILL TO BE ENTITLED
                                        AN ACT
    1-1  relating to the boll weevil eradication program.
    1-2        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-3        SECTION 1.  Subdivisions (5), (9), and (14), Section 74.102,
    1-4  Agriculture Code, are amended to read as follows:
    1-5              (5)  "Cotton grower" means an individual who<:>
    1-6                    <(A)>  grows cotton<;> and
    1-7                    <(B)>  receives <direct> income on or after June
    1-8  1, 1992, from the sale of cotton.  The term includes an individual
    1-9  who as owner, landlord, tenant, or sharecropper is entitled to
   1-10  share in the cotton grown and available for marketing from a farm
   1-11  or to share in the proceeds from the sale of the cotton from the
   1-12  farm, under 7 C.F.R. Part 1413.
   1-13              (9)  "High Plains Boll Weevil Suppression Program Area"
   1-14  includes Bailey, Borden, Briscoe, Castro, Cochran, Crosby, Dawson,
   1-15  Deaf Smith, Dickens, Floyd, Gaines, Garza, Hale, Hockley, Howard,
   1-16  Lamb, Lubbock, Lynn, Martin, Midland, Motley, Parmer, Swisher,
   1-17  Terry, and Yoakum counties.  The High Plains Boll Weevil
   1-18  Suppression Program Area may also include other counties or parts
   1-19  of counties if areas are added to the High Plains Boll Weevil
   1-20  Suppression Area as provided under this subchapter.
   1-21              (14)  "St. Lawrence Cotton Growers Boll Weevil Control
   1-22  Zone" may include, subject to change as provided under this
   1-23  subchapter, all or part of <includes> Glasscock, Reagan, Upton,
    2-1  <and> south Midland, or other counties.
    2-2        SECTION 2.  Subsection (a), Section 74.107, Agriculture Code,
    2-3  is amended to read as follows:
    2-4        (a)  The High Plains Boll Weevil Suppression Program Area and
    2-5  the St. Lawrence Cotton Growers Boll Weevil Control Zone are
    2-6  separate zones for the purposes of boll weevil eradication;
    2-7  however, an area in the St. Lawrence Cotton Growers Boll Weevil
    2-8  Control Zone may be assigned to another zone as provided by <and
    2-9  may not be combined with another area in an eradication zone under>
   2-10  this subchapter.
   2-11        SECTION 3.  Section 74.108, Agriculture Code, is amended to
   2-12  read as follows:
   2-13        Sec. 74.108.  Board Powers.  (a)  The board may:
   2-14              (1)  conduct board elections;
   2-15              (2)  conduct eradication zone referenda;
   2-16              (3)  conduct assessment referenda under Section 74.113
   2-17  of this code;
   2-18              (4)  conduct programs consistent with the declaration
   2-19  of policy stated in Section 74.101 of this code;
   2-20              (5)  accept, as necessary to implement this chapter,
   2-21  gifts and grants;
   2-22              (6)  borrow money as necessary to execute this chapter;
   2-23              (7)  take other action and exercise other authority as
   2-24  necessary to execute any act authorized by this subchapter or the
   2-25  Texas Non-Profit Corporation Act (Article 1396-1.01 et seq.,
    3-1  Vernon's Texas Civil Statutes); and
    3-2              (8) <(5)>  form an advisory committee composed of
    3-3  individuals from this state, other states, or other countries and
    3-4  change membership on the committee, as necessary.  Any advisory
    3-5  committee created under this subdivision for the purpose of
    3-6  establishing treatment methods shall include among its members
    3-7  persons with knowledge of the effects of different treatments on
    3-8  the health of agricultural workers, the local population, and the
    3-9  ecosystem, including but not limited to the effects of a particular
   3-10  method of treatment on beneficial organisms and wildlife, the
   3-11  potential for secondary infestations from nontarget pests, and the
   3-12  potential for pest resistance to particular methods of treatment.
   3-13        (b)  The board may add an area to an eradication zone if:
   3-14              (1)  cotton production begins in the area;
   3-15              (2)  the area is adjacent to an eradication zone or is
   3-16  in an area with biological characteristics similar to the
   3-17  eradication zone; and
   3-18              (3)  the addition is approved in a referendum held in
   3-19  the area.
   3-20        (c)  The board may initiate the boll weevil eradication
   3-21  program in an area added to an eradication zone and may assess
   3-22  cotton growers in the area added to the eradication zone to ensure
   3-23  the integrity and success of the eradication program.  The board
   3-24  shall provide notice of intent to initiate eradication and collect
   3-25  assessments through informational meetings in the affected area not
    4-1  later than 60 days before the date recognized by the board as the
    4-2  average planting date for the area.
    4-3        (d)  The board may not reduce the area of the High Plains
    4-4  Boll Weevil Suppression Program Area.
    4-5        SECTION 4.  Section 74.109, Agriculture Code, is amended to
    4-6  read as follows:
    4-7        Sec. 74.109.  Board Duties.  (a)  The board shall make
    4-8  available for inspection at an annual independent audit all books,
    4-9  records of account, and minutes of proceedings maintained by the
   4-10  foundation.
   4-11        (b)  Not later than the 45th day after the last day of the
   4-12  fiscal year, the board shall submit to the commissioner a report
   4-13  itemizing all income and expenditures and describing all activities
   4-14  of the foundation during the fiscal year.
   4-15        (c)  The foundation shall provide fidelity <surety> bonds in
   4-16  amounts determined by the board <commissioner> for employees or
   4-17  agents who handle funds for the foundation.
   4-18        (d)  <The foundation shall collect, receive, hold in trust,
   4-19  and disburse all assessments and other funds collected under this
   4-20  subchapter as trust funds of the foundation.>  The foundation and
   4-21  the board are <is a> state agencies <agency> for the following
   4-22  purposes only:
   4-23              (1)  exemption from taxation including exemption from
   4-24  sales and use taxes, vehicle registration fees, and taxes under
   4-25  Chapter 152, Tax Code; and
    5-1              (2)  indemnification <only and for no other purpose>.
    5-2        (e)  Funds collected by the foundation are not state funds
    5-3  and are not required to be deposited in the state treasury.  The
    5-4  foundation shall deposit all money collected under this subchapter
    5-5  in a bank or other depository approved by the board.
    5-6        (f)  The foundation is a governmental unit under Section
    5-7  101.001, Civil Practice and Remedies Code, and is entitled to
    5-8  governmental immunity.  A tort claim against the foundation must be
    5-9  made under Chapter 101, Civil Practice and Remedies Code.
   5-10        (g) <(e)>  The board shall collect data on the type and
   5-11  quantity of pesticides used in accordance with this subchapter.
   5-12        (h) <(f)>  All revenue collected under this subchapter shall
   5-13  be used solely to finance programs approved by the commissioner as
   5-14  consistent with this subchapter and applicable provisions of the
   5-15  constitution.
   5-16        SECTION 5.  Subsection (a), Section 74.110, Agriculture Code,
   5-17  is amended to read as follows:
   5-18        (a)  Except for instances of gross negligence, individual
   5-19  criminal actions, or acts of dishonesty, the foundation, the
   5-20  foundation's members, directors, officers, and employees are not
   5-21  individually liable to a cotton grower or other person for:
   5-22              (1)  errors in judgment;
   5-23              (2)  mistakes; or
   5-24              (3)  other acts or omissions.
   5-25        SECTION 6.  Subsection (f), Section 74.113, Agriculture Code,
    6-1  is amended to read as follows:
    6-2        (f)  An assessment levied on cotton growers in an eradication
    6-3  zone may be applied only to:
    6-4              (1)  eradication in that zone;
    6-5              (2)  the foundation's operating costs, including
    6-6  payments on debt incurred for a foundation activity, except that
    6-7  the funds of one zone may not be used to pay another zone's bank
    6-8  loans; and
    6-9              (3)  the conducting of other programs consistent with
   6-10  the declaration of policy stated in Section 74.101 of this code.
   6-11        SECTION 7.  Section 74.114, Agriculture Code, is amended by
   6-12  amending Subsections (f) and (i) and by adding Subsection (j) to
   6-13  read as follows:
   6-14        (f)  Ballots in a referendum or board election shall <may> be
   6-15  mailed directly to a central location, to be initially determined
   6-16  by the commissioner and later determined by the board.  A cotton
   6-17  grower eligible to vote in a referendum or board election who has
   6-18  not received a ballot from the foundation or another source shall
   6-19  be offered the option of requesting a ballot by mail or obtaining a
   6-20  ballot <voting in person> at the office of the county agent of the
   6-21  Texas Agricultural Extension Service or a government office
   6-22  distributing ballots in a <the> county in the proposed or
   6-23  established zone in which the referendum or board election is
   6-24  conducted <which the cotton grower resides.  A county agent shall
   6-25  hold ballots received under this section in trust and shall count
    7-1  the ballots and report the results to the commissioner and the
    7-2  foundation>.
    7-3        (i)  A public hearing regarding the proposed eradication
    7-4  program <plan>, including information regarding regulations to be
    7-5  promulgated by the foundation and the commissioner, shall be held
    7-6  by the foundation in each of several locations within each boll
    7-7  weevil eradication zone.  The area posted for each hearing shall
    7-8  include no more than six contiguous counties that have cotton
    7-9  production at the time of the hearing.
   7-10        (j)  Individual voter information, including an individual's
   7-11  vote in a referendum or board election conducted under this
   7-12  section, is confidential and is not subject to disclosure under the
   7-13  open records law, Chapter 552, Government Code.
   7-14        SECTION 8.  Subsections (b) and (c), Section 74.115,
   7-15  Agriculture Code, are amended to read as follows:
   7-16        (b)  A cotton grower who fails to pay all assessments and
   7-17  penalties before the 10th <31st> day after receiving notice of the
   7-18  delinquency shall destroy any cotton growing on the grower's
   7-19  acreage that is subject to the assessment.  Cotton plants that are
   7-20  not destroyed are a public nuisance, and, on recommendation of the
   7-21  foundation, the department shall follow the procedures for
   7-22  destruction of host plants provided by Subchapter A of this
   7-23  chapter, including procedures for reimbursement by the grower of
   7-24  costs required for destruction.  The department may apply to a
   7-25  district court with jurisdiction in the county in which the public
    8-1  nuisance is located to have the nuisance condemned and destroyed.
    8-2  Injunctive relief available to the department under this subchapter
    8-3  is in addition to any other legal remedy available to the
    8-4  department.  The department is not required to file a bond in a
    8-5  proceeding under this subsection.
    8-6        (c)  In addition to any other remedies for the collection of
    8-7  assessments and penalties, the department may place and perfect a
    8-8  lien on cotton produced and harvested that year <before the
    8-9  destruction of other cotton grown> from the acreage that is subject
   8-10  to the assessment that is due and unpaid.  A buyer of cotton takes
   8-11  free of the lien if the buyer has not received written or actual
   8-12  notice of the lien from the department or if the buyer has paid for
   8-13  the cotton by a check on which the department is named as a joint
   8-14  payee.  In an action to enforce the lien, the burden is on the
   8-15  department to prove that the buyer of cotton received written or
   8-16  actual notice of the lien.  A buyer of cotton other than a person
   8-17  buying cotton from the cotton grower takes free of the lien.
   8-18        SECTION 9.  Subsection (b), Section 74.116, Agriculture Code,
   8-19  is amended to read as follows:
   8-20        (b)  A cotton grower may not qualify for an exemption under
   8-21  this section for a year in which the amount computed by subtracting
   8-22  the assessments and penalties due under this subchapter from the
   8-23  cotton grower's net income subject to federal income taxation in
   8-24  the previous year is greater than $15,000.
   8-25        SECTION 10.  Subsection (c), Section 74.120, Agriculture
    9-1  Code, is amended to read as follows:
    9-2        (c)  The foundation and the department may adopt other
    9-3  reasonable rules <it considers> necessary to carry out the purposes
    9-4  of this subchapter and Subchapter A of this chapter.  All rules
    9-5  issued under this subchapter must be adopted and published in
    9-6  accordance with state requirements.  Rules adopted by the
    9-7  foundation under this section shall be consistent with rules
    9-8  adopted by the commissioner under this subchapter.
    9-9        SECTION 11.  Section 74.125, Agriculture Code, is amended to
   9-10  read as follows:
   9-11        Sec. 74.125.  Organic Producers.  (a)  The board, in
   9-12  cooperation with the commissioner, shall develop rules and
   9-13  procedures to:
   9-14              (1)  protect the eligibility of organic producers to be
   9-15  certified by the commissioner;
   9-16              (2)  ensure that organic and transitional certification
   9-17  by the commissioner continue to meet national certification
   9-18  standards in order for organic cotton to maintain international
   9-19  marketability; and
   9-20              (3)  in all events maintain the effectiveness of the
   9-21  boll weevil eradication program administered under this subchapter.
   9-22        (b)  The board may not treat or require treatment of organic
   9-23  cotton fields with chemicals that are not approved for use on
   9-24  certified organic cotton.  Plow-up may be required as an
   9-25  alternative to chemicals.  In the rules adopted under Subsection
   10-1  (a), the board may provide indemnity for the organic producers for
   10-2  reasonable losses that result from a prohibition of production of
   10-3  organic cotton or from any requirement of destruction of organic
   10-4  cotton.  If time is reasonably available for the production of an
   10-5  economically feasible alternative crop, the board may require
   10-6  mitigation of losses with the production of an alternative crop.
   10-7        SECTION 12.  Subsection (c), Section 74.126, Agriculture
   10-8  Code, is amended to read as follows:
   10-9        (c)  If the commissioner or the foundation determines that a
  10-10  violation of this subchapter or a rule adopted under this
  10-11  subchapter has occurred, the commissioner or the foundation may
  10-12  request that the attorney general or the county or district
  10-13  attorney of the county in which the alleged violation occurred or
  10-14  is occurring file suit for civil, injunctive, and/or other
  10-15  appropriate relief.
  10-16        SECTION 13.  Section 74.127, Agriculture Code, is amended by
  10-17  adding Subsection (c) to read as follows:
  10-18        (c)  If the foundation is abolished or the program
  10-19  discontinued for any reason, assessments approved, levied, or
  10-20  otherwise collectible on the date of abolishment remain valid as
  10-21  necessary to pay the financial obligations of the foundation.
  10-22        SECTION 14.  This Act takes effect September 1, 1995.
  10-23        SECTION 15.  The importance of this legislation and the
  10-24  crowded condition of the calendars in both houses create an
  10-25  emergency and an imperative public necessity that the
   11-1  constitutional rule requiring bills to be read on three several
   11-2  days in each house be suspended, and this rule is hereby suspended.