1-1  By:  Sims, Lucio                                      S.B. No. 1196
    1-2        (In the Senate - Filed March 10, 1995; March 16, 1995, read
    1-3  first time and referred to Committee on Natural Resources;
    1-4  April 18, 1995, reported adversely, with favorable Committee
    1-5  Substitute by the following vote:  Yeas 7, Nays 0; April 18, 1995,
    1-6  sent to printer.)
    1-7  COMMITTEE SUBSTITUTE FOR S.B. No. 1196                   By:  Lucio
    1-8                         A BILL TO BE ENTITLED
    1-9                                AN ACT
   1-10  relating to the boll weevil eradication program.
   1-11        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-12        SECTION 1.  Subdivisions (5), (9), and (14), Section 74.102,
   1-13  Agriculture Code, are amended to read as follows:
   1-14              (5)  "Cotton grower" means an individual who<:>
   1-15                    <(A)>  grows cotton<;> and
   1-16                    <(B)>  receives <direct> income on or after June
   1-17  1, 1992, from the sale of cotton.  The term includes an individual
   1-18  who as owner, landlord, tenant, or sharecropper is entitled to
   1-19  share in the cotton grown and available for marketing from a farm
   1-20  or to share in the proceeds from the sale of the cotton from the
   1-21  farm, under 7 C.F.R. Part 1413.
   1-22              (9)  "High Plains Boll Weevil Suppression Program Area"
   1-23  may include, subject to change as provided under this subchapter,
   1-24  all or part of <includes> Bailey, Borden, Briscoe, Castro, Cochran,
   1-25  Crosby, Dawson, Deaf Smith, Dickens, Floyd, Gaines, Garza, Hale,
   1-26  Hockley, Howard, Lamb, Lubbock, Lynn, Martin, Midland, Motley,
   1-27  Parmer, Swisher, Terry, <and> Yoakum, or other counties.
   1-28              (14)  "St. Lawrence Cotton Growers Boll Weevil Control
   1-29  Zone" may include, subject to change as provided under this
   1-30  subchapter, all or part of <includes> Glasscock, Reagan, Upton,
   1-31  <and> south Midland, or other counties.
   1-32        SECTION 2.  Subsection (a), Section 74.107, Agriculture Code,
   1-33  is amended to read as follows:
   1-34        (a)  The High Plains Boll Weevil Suppression Program Area and
   1-35  the St.  Lawrence Cotton Growers Boll Weevil Control Zone are
   1-36  separate zones for the purposes of boll weevil eradication;
   1-37  however, an area in either zone may be assigned to another zone as
   1-38  provided by <and may not be combined with another area in an
   1-39  eradication zone under> this subchapter.
   1-40        SECTION 3.  Section 74.108, Agriculture Code, is amended to
   1-41  read as follows:
   1-42        Sec. 74.108.  Board Powers.  (a)  The board may:
   1-43              (1)  conduct board elections;
   1-44              (2)  conduct eradication zone referenda;
   1-45              (3)  conduct assessment referenda under Section 74.113
   1-46  of this code;
   1-47              (4)  conduct programs consistent with the declaration
   1-48  of policy stated in Section 74.101 of this code;
   1-49              (5)  accept, as necessary to implement this chapter,
   1-50  gifts and grants;
   1-51              (6)  borrow money as necessary to execute this chapter;
   1-52              (7)  take other action and exercise other authority as
   1-53  necessary to execute any act authorized by this subchapter or the
   1-54  Texas Non-Profit Corporation Act (Article 1396-1.01 et seq.,
   1-55  Vernon's Texas Civil Statutes); and
   1-56              (8) <(5)>  form an advisory committee composed of
   1-57  individuals from this state, other states, or other countries and
   1-58  change membership on the committee, as necessary.  Any advisory
   1-59  committee created under this subdivision for the purpose of
   1-60  establishing treatment methods shall include among its members
   1-61  persons with knowledge of the effects of different treatments on
   1-62  the health of agricultural workers, the local population, and the
   1-63  ecosystem, including but not limited to the effects of a particular
   1-64  method of treatment on beneficial organisms and wildlife, the
   1-65  potential for secondary infestations from nontarget pests, and the
   1-66  potential for pest resistance to particular methods of treatment.
   1-67        (b)  The board may add an area to an eradication zone if:
   1-68              (1)  cotton production begins in the area;
    2-1              (2)  the area is adjacent to an eradication zone or is
    2-2  in an area with biological characteristics similar to the
    2-3  eradication zone; and
    2-4              (3)  the addition is approved in a referendum held in
    2-5  the area.
    2-6        (c)  The board may initiate the boll weevil eradication
    2-7  program in an area added to an eradication zone and may assess
    2-8  cotton growers in the area added to the eradication zone to ensure
    2-9  the integrity and success of the eradication program.  The board
   2-10  shall provide notice of intent to initiate eradication and collect
   2-11  assessments through informational meetings in the affected area not
   2-12  later than 60 days before the date recognized by the board as the
   2-13  average planting date for the area.
   2-14        SECTION 4.  Section 74.109, Agriculture Code, is amended to
   2-15  read as follows:
   2-16        Sec. 74.109.  Board Duties.  (a)  The board shall make
   2-17  available for inspection at an annual independent audit all books,
   2-18  records of account, and minutes of proceedings maintained by the
   2-19  foundation.
   2-20        (b)  Not later than the 45th day after the last day of the
   2-21  fiscal year, the board shall submit to the commissioner a report
   2-22  itemizing all income and expenditures and describing all activities
   2-23  of the foundation during the fiscal year.
   2-24        (c)  The foundation shall provide fidelity <surety> bonds in
   2-25  amounts determined by the board <commissioner> for employees or
   2-26  agents who handle funds for the foundation.
   2-27        (d)  <The foundation shall collect, receive, hold in trust,
   2-28  and disburse all assessments and other funds collected under this
   2-29  subchapter as trust funds of the foundation.>  The foundation and
   2-30  the board are <is a> state agencies <agency> for the following
   2-31  purposes only:
   2-32              (1)  exemption from taxation including exemption from
   2-33  sales and use taxes, vehicle registration fees, and taxes under
   2-34  Chapter 152, Tax Code; and
   2-35              (2)  indemnification <only and for no other purpose>.
   2-36        (e)  Funds collected by the foundation are not state funds
   2-37  and are not required to be deposited in the state treasury.  The
   2-38  foundation shall deposit all money collected under this subchapter
   2-39  in a bank or other depository approved by the board.
   2-40        (f)  The foundation is a governmental unit under Section
   2-41  101.001, Civil Practice and Remedies Code, and is entitled to
   2-42  governmental immunity.  A tort claim against the foundation must be
   2-43  made under Chapter 101, Civil Practice and Remedies Code.
   2-44        (g) <(e)>  The board shall collect data on the type and
   2-45  quantity of pesticides used in accordance with this subchapter.
   2-46        (h) <(f)>  All revenue collected under this subchapter shall
   2-47  be used solely to finance programs approved by the commissioner as
   2-48  consistent with this subchapter and applicable provisions of the
   2-49  constitution.
   2-50        SECTION 5.  Subsection (a), Section 74.110, Agriculture Code,
   2-51  is amended to read as follows:
   2-52        (a)  Except for instances of gross negligence, individual
   2-53  criminal actions, or acts of dishonesty, the foundation, the
   2-54  foundation's members, directors, officers, and employees are not
   2-55  individually liable to a cotton grower or other person for:
   2-56              (1)  errors in judgment;
   2-57              (2)  mistakes; or
   2-58              (3)  other acts or omissions.
   2-59        SECTION 6.  Subsection (f), Section 74.113, Agriculture Code,
   2-60  is amended to read as follows:
   2-61        (f)  An assessment levied on cotton growers in an eradication
   2-62  zone may be applied only to:
   2-63              (1)  eradication in that zone;
   2-64              (2)  the foundation's operating costs, including
   2-65  payments on debt incurred for a foundation activity; and
   2-66              (3)  the conducting of other programs consistent with
   2-67  the declaration of policy stated in Section 74.101 of this code.
   2-68        SECTION 7.  Section 74.114, Agriculture Code, is amended by
   2-69  amending Subsections (f) and (i) and by adding Subsection (j) to
   2-70  read as follows:
    3-1        (f)  Ballots in a referendum or board election shall <may> be
    3-2  mailed directly to a central location, to be initially determined
    3-3  by the commissioner and later determined by the board.  A cotton
    3-4  grower eligible to vote in a referendum or board election who has
    3-5  not received a ballot from the foundation or another source shall
    3-6  be offered the option of requesting a ballot by mail or obtaining a
    3-7  ballot <voting in person> at the office of the county agent of the
    3-8  Texas Agricultural Extension Service or a government office
    3-9  distributing ballots in a <the> county in the proposed or
   3-10  established zone in which the referendum or board election is
   3-11  conducted <which the cotton grower resides.  A county agent shall
   3-12  hold ballots received under this section in trust and shall count
   3-13  the ballots and report the results to the commissioner and the
   3-14  foundation>.
   3-15        (i)  A public hearing regarding the proposed eradication
   3-16  program <plan>, including information regarding regulations to be
   3-17  promulgated by the foundation and the commissioner, shall be held
   3-18  by the foundation in each of several locations within each boll
   3-19  weevil eradication zone.  The area posted for each hearing shall
   3-20  include no more than six contiguous counties that have cotton
   3-21  production at the time of the hearing.
   3-22        (j)  Individual voter information, including an individual's
   3-23  vote in a referendum or board election conducted under this
   3-24  section, is confidential and is not subject to disclosure under the
   3-25  open records law, Chapter 552, Government Code.
   3-26        SECTION 8.  Subsections (b) and (c), Section 74.115,
   3-27  Agriculture Code, are amended to read as follows:
   3-28        (b)  A cotton grower who fails to pay all assessments and
   3-29  penalties before the 10th <31st> day after receiving notice of the
   3-30  delinquency shall destroy any cotton growing on the grower's
   3-31  acreage that is subject to the assessment.  Cotton plants that are
   3-32  not destroyed are a public nuisance, and, on recommendation of the
   3-33  foundation, the department shall follow the procedures for
   3-34  destruction of host plants provided by Subchapter A of this
   3-35  chapter, including procedures for reimbursement by the grower of
   3-36  costs required for destruction.  The department may apply to a
   3-37  district court with jurisdiction in the county in which the public
   3-38  nuisance is located to have the nuisance condemned and destroyed.
   3-39  Injunctive relief available to the department under this subchapter
   3-40  is in addition to any other legal remedy available to the
   3-41  department.  The department is not required to file a bond in a
   3-42  proceeding under this subsection.
   3-43        (c)  In addition to any other remedies for the collection of
   3-44  assessments and penalties, the department may place and perfect a
   3-45  lien on cotton produced and harvested that year <before the
   3-46  destruction of other cotton grown> from the acreage that is subject
   3-47  to the assessment that is due and unpaid.  A buyer of cotton takes
   3-48  free of the lien if the buyer has not received written or actual
   3-49  notice of the lien from the department or if the buyer has paid for
   3-50  the cotton by a check on which the department is named as a joint
   3-51  payee.  In an action to enforce the lien, the burden is on the
   3-52  department to prove that the buyer of cotton received written or
   3-53  actual notice of the lien.  A buyer of cotton other than a person
   3-54  buying cotton from the cotton grower takes free of the lien.
   3-55        SECTION 9.  Subsection (b), Section 74.116, Agriculture Code,
   3-56  is amended to read as follows:
   3-57        (b)  A cotton grower may not qualify for an exemption under
   3-58  this section for a year in which the amount computed by subtracting
   3-59  the assessments and penalties due under this subchapter from the
   3-60  cotton grower's net income subject to federal income taxation in
   3-61  the previous year is greater than $15,000.
   3-62        SECTION 10.  Subsection (c), Section 74.120, Agriculture
   3-63  Code, is amended to read as follows:
   3-64        (c)  The foundation and the department may adopt other
   3-65  reasonable rules <it considers> necessary to carry out the purposes
   3-66  of this subchapter and Subchapter A of this chapter.  All rules
   3-67  issued under this subchapter must be adopted and published in
   3-68  accordance with state requirements.  Rules adopted by the
   3-69  foundation under this section shall be consistent with rules
   3-70  adopted by the commissioner under this subchapter.
    4-1        SECTION 11.  Section 74.125, Agriculture Code, is amended to
    4-2  read as follows:
    4-3        Sec. 74.125.  Organic Producers.  (a)  The board, in
    4-4  cooperation with the commissioner, shall develop rules and
    4-5  procedures to:
    4-6              (1)  protect the eligibility of organic producers to be
    4-7  certified by the commissioner;
    4-8              (2)  ensure that organic and transitional certification
    4-9  by the commissioner continue to meet national certification
   4-10  standards in order for organic cotton to maintain international
   4-11  marketability; and
   4-12              (3)  in all events maintain the effectiveness of the
   4-13  boll weevil eradication program administered under this subchapter.
   4-14        (b)  The board may not treat or require treatment of organic
   4-15  cotton fields with chemicals that are not approved for use on
   4-16  certified organic cotton.  Plow-up may be required as an
   4-17  alternative to chemicals.  In the rules adopted under Subsection
   4-18  (a), the board may provide indemnity for the organic producers for
   4-19  reasonable losses that result from a prohibition of production of
   4-20  organic cotton or from any requirement of destruction of organic
   4-21  cotton.  If time is reasonably available for the production of an
   4-22  economically feasible alternative crop, the board may require
   4-23  mitigation of losses with the production of an alternative crop.
   4-24        SECTION 12.  Subsection (c), Section 74.126, Agriculture
   4-25  Code, is amended to read as follows:
   4-26        (c)  If the commissioner or the foundation determines that a
   4-27  violation of this subchapter or a rule adopted under this
   4-28  subchapter has occurred, the commissioner or the foundation may
   4-29  request that the attorney general or the county or district
   4-30  attorney of the county in which the alleged violation occurred or
   4-31  is occurring file suit for civil, injunctive, and/or other
   4-32  appropriate relief.
   4-33        SECTION 13.  Section 74.127, Agriculture Code, is amended by
   4-34  adding Subsection (c) to read as follows:
   4-35        (c)  If the foundation is abolished or the program
   4-36  discontinued for any reason, assessments approved, levied, or
   4-37  otherwise collectible on the date of abolishment remain valid as
   4-38  necessary to pay the financial obligations of the foundation.
   4-39        SECTION 14.  This Act takes effect September 1, 1995.
   4-40        SECTION 15.  The importance of this legislation and the
   4-41  crowded condition of the calendars in both houses create an
   4-42  emergency and an imperative public necessity that the
   4-43  constitutional rule requiring bills to be read on three several
   4-44  days in each house be suspended, and this rule is hereby suspended.
   4-45                               * * * * *