By:  Duncan                                           S.B. No. 1814

                                A BILL TO BE ENTITLED

                                       AN ACT

 1-1     relating to modifications of the official cotton growers' boll

 1-2     weevil eradication program.

 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-4                                  ARTICLE 1

 1-5           SECTION 1.01.  Section 74.101, Agriculture Code, is amended

 1-6     to read as follows:

 1-7           Sec. 74.101.  FINDINGS AND DECLARATION OF POLICY.  (a)  It is

 1-8     hereby found and declared that:

 1-9                 (1)  the insects Anthonomus grandis Boheman, known as

1-10     the boll weevil, and Pectinophora gossypiella, known as the pink

1-11     bollworm, are public nuisances and a menace to the cotton industry,

1-12     and their eradication is a public necessity [boll weevil entered

1-13     Texas from Mexico in 1892 and presents a major economic threat to

1-14     Texas' cotton crop];

1-15                 (2)  because of the differences in soil conditions,

1-16     growing seasons, farming techniques, and climate conditions among

1-17     several areas in the state where cotton is grown, the eradication

1-18     and suppression of the nuisance can best be accomplished by

1-19     dividing the cotton-growing areas into separate zones so that

1-20     integrated pest management programs may be developed for each zone

1-21     [there exists a need to develop, carry out, and participate in

1-22     programs of research such as disease and insect control;  marketing

1-23     to show low risk of pests in interstate and intrastate movement of

 2-1     cotton commodities;  promotion of pest-free cotton commodities

 2-2     which increase market demand; and education of cotton raisers,

 2-3     cotton users, regulators, policymakers, and the general public on

 2-4     the effect of pests on cotton, its utility, its marketing, its

 2-5     yield, and its promotion]; [and]

 2-6                 (3)  there is a need for a quasi-governmental entity

 2-7     acting under the supervision and control of the commissioner whose

 2-8     members are actual cotton growers who would be represented on the

 2-9     board of the entity by directors elected by them to act as the

2-10     agent of the department to manage eradication and suppression

2-11     programs and to furnish expertise in the field of insect control

2-12     and eradication, because such an entity would enhance the interest

2-13     and participation of cotton growers in the program; and

2-14                 (4)  because of the progress made in eradication,

2-15     investments made by cotton growers in certain areas, the potential

2-16     injustice to certain cotton growers who have made such investments,

2-17     and the stage of development of the cotton crops in the statutory

2-18     eradication zones, an urgent public necessity exists to validate

2-19     and ratify the assessments, agreements, and obligations of the

2-20     Texas Boll Weevil Eradication Foundation, Inc., made or incurred by

2-21     the foundation and related to certain statutory zones [it is the

2-22     intent of the legislature that the program be carried out with the

2-23     best available integrated pest management techniques].

2-24           (b)  It is the intent of the legislature that the program of

2-25     eradication and suppression be carried out with the best available

 3-1     integrated pest management techniques.

 3-2           (c)  The department may recover costs for administration of

 3-3     this subchapter.

 3-4           [(c) The creation and use of a boll weevil eradication

 3-5     foundation as a vehicle to provide for assessments and governing

 3-6     boards and to establish eradication zones in order to suppress and

 3-7     eradicate boll weevils and other cotton pests are consistent with

 3-8     the goals and uses of revenue established under Article XVI,

 3-9     Section 68, of the Texas Constitution.]

3-10           SECTION 1.02.  Subchapter D, Chapter 74, Agriculture Code, is

3-11     amended by adding Section 74.1011 to read as follows:

3-12           Sec. 74.1011.  DESIGNATION OF ENTITY TO CARRY OUT BOLL WEEVIL

3-13     ERADICATION.  (a)  The Texas Boll Weevil Eradication Foundation,

3-14     Inc., a Texas nonprofit corporation chartered by the secretary of

3-15     state on September 14, 1993, shall be recognized by the department

3-16     as the entity to plan, carry out, and operate eradication and

3-17     diapause programs to eliminate the boll weevil and the pink

3-18     bollworm from cotton in the state under the supervision of the

3-19     department as provided by this subchapter.

3-20           (b)  The commissioner may terminate the foundation's

3-21     designation as the entity recognized to carry out boll weevil

3-22     eradication by giving 45 days' written notice to the foundation and

3-23     by designating a successor entity.  If the commissioner designates

3-24     a successor to the foundation, the successor has all the powers and

3-25     duties of the foundation under this subchapter.  Any successor to

 4-1     the foundation shall assume and shall be responsible for all

 4-2     obligations and liabilities relating to any notes, security

 4-3     agreements, assignments, loan agreements, and any other contracts

 4-4     or other documents entered into by the foundation with or for the

 4-5     benefit of any financial institution or its predecessor, successor,

 4-6     or assignee.

 4-7           SECTION 1.03.  Section 74.102, Agriculture Code, is amended

 4-8     to read as follows:

 4-9           Sec. 74.102.  DEFINITIONS.  In this subchapter:

4-10                 (1)  "Board" means the board of directors of the Texas

4-11     Boll Weevil Eradication Foundation, Inc [official cotton growers'

4-12     boll weevil eradication foundation].

4-13                 (2)  "Boll weevil" has the meaning assigned by Section

4-14     74.002 [of this code].

4-15                 (3)  "Commissioner" means commissioner of agriculture.

4-16                 (4)  "Cotton" means:

4-17                       (A)  a cotton plant;

4-18                       (B)  a part of a cotton plant, including bolls,

4-19     stalks, flowers, roots, and leaves; or

4-20                       (C)  cotton products, including seed cotton,

4-21     cottonseed, and hulls.

4-22                 (5)  "Cotton grower" means a person [an individual] who

4-23     grows cotton and receives income [on or after June 1, 1992,] from

4-24     the sale of cotton.  The term includes an individual who as owner,

4-25     landlord, tenant, or sharecropper is entitled to share in the

 5-1     cotton grown and available for marketing from a farm or to share in

 5-2     the proceeds from the sale of the cotton from the farm[, under 7

 5-3     C.F.R. Part 1413].

 5-4                 (6)  "Eradication" means elimination of boll weevils or

 5-5     pink bollworms to the extent that the commissioner does not

 5-6     consider further elimination of boll weevils or pink bollworms

 5-7     necessary to prevent economic loss to cotton growers.  Eradication

 5-8     includes diapause activities.

 5-9                 (7)  "Eradication zone" means a geographic area:

5-10                       (A)  established under Section 74.1021; or

5-11                       (B)  designated by the commissioner in accordance

5-12     with Section 74.105 in which cotton growers by referendum approve

5-13     their participation in a boll weevil or pink bollworm eradication

5-14     program.

5-15                 (8)  "Foundation" means the Texas Boll Weevil

5-16     Eradication Foundation, Inc., a Texas nonprofit corporation

5-17     [official cotton growers' boll weevil eradication foundation].

5-18                 (9)  ["High Plains Boll Weevil Suppression Program

5-19     Area" includes Bailey, Borden, Briscoe, Castro, Cochran, Crosby,

5-20     Dawson, Deaf Smith, Dickens, Floyd, Gaines, Garza, Hale, Hockley,

5-21     Howard, Lamb, Lubbock, Lynn, Martin, Midland, Motley, Parmer,

5-22     Swisher, Terry, and Yoakum counties.  The High Plains Boll Weevil

5-23     Suppression Program Area may also include other counties or parts

5-24     of counties if areas are added to the High Plains Boll Weevil

5-25     Suppression Program Area as provided under this subchapter.]

 6-1                 [(10)]  "Host" means a plant or plant product in which

 6-2     the boll weevil or pink bollworm is capable of completing any

 6-3     portion of its life cycle.

 6-4                 (10) [(11)]  "Infested" means the presence of the boll

 6-5     weevil or pink bollworm in any life stage or the existence of

 6-6     generally accepted entomological evidence from which it may be

 6-7     concluded with reasonable certainty that the boll weevil or pink

 6-8     bollworm is present.

 6-9                 (11) [(12)]  "Integrated pest management" is the

6-10     coordinated use of pest and environmental information with

6-11     available pest control methods to prevent unacceptable levels of

6-12     pest damage by the most economical means and with the least

6-13     possible hazard to people, property, and the environment.

6-14                 (12)  "Pink bollworm" has the meaning assigned by

6-15     Section 74.002.

6-16                 (13)  "Regulated article" means an article carrying or

6-17     capable of carrying the boll weevil or pink bollworm, including

6-18     cotton plants, seed cotton, gin trash, other hosts, or mechanical

6-19     cotton harvesters.

6-20                 [(14)  "St. Lawrence Cotton Growers Boll Weevil Control

6-21     Zone" may include, subject to change as provided under this

6-22     subchapter, all or part of Glasscock, Reagan, Upton, south Midland,

6-23     or other counties.]

6-24                 [(15)  The pink bollworm eradication zone includes

6-25     Reeves and Pecos counties.]

 7-1           SECTION 1.04.  Subchapter D, Chapter 74, Agriculture Code, is

 7-2     amended by adding Section 74.1021 to read as follows:

 7-3           Sec. 74.1021.  STATUTORY ZONES.  (a)  The Northern High

 7-4     Plains Eradication Zone consists of Armstrong, Bailey, Briscoe,

 7-5     Castro, Floyd, Hale, Lamb, Parmer, Randall, and Swisher counties,

 7-6     and other areas as proposed by the commissioner by rule for

 7-7     inclusion in the zone and approved by referendum in the area to be

 7-8     added.

 7-9           (b)  The Rolling Plains Central Eradication Zone consists of

7-10     Baylor, Callahan, Comanche, Eastland, Erath, Fisher, Haskell,

7-11     Jones, King, Knox, Mitchell, Nolan, Palo Pinto, Scurry,

7-12     Shackelford, Stephens, Stonewall, Throckmorton, and Young counties;

7-13     all land in Archer County south of a line following Farm-to-Market

7-14     Road 422 commencing at the Baylor County line running east to the

7-15     intersection of Farm-to-Market Road 210, continuing east to the

7-16     intersection of State Highway 25, and continuing east to the Clay

7-17     County line; all land in Borden County east of a line seven miles

7-18     west of the Scurry County line running south from the Garza County

7-19     line to the Howard County line; and all land in Taylor County east

7-20     of U.S. Highway 83 from a point commencing at the intersection of

7-21     U.S. Highway 83 and the south Taylor County line, north to the town

7-22     of Bradshaw; thence north of Farm-to-Market Road 1086, as the

7-23     farm-to-market road proceeds west and north to the intersection of

7-24     the Farm-to-Market Road 1086 and U.S. Highway 277, being all land

7-25     lying north of the farm-to-market road and west of U.S. Highway 277

 8-1     from the intersection of Farm-to-Market Road 1086 and U.S. Highway

 8-2     277 to the point where U.S. Highway 277 intersects the south

 8-3     boundary line of Taylor County; all land in Brown County east of a

 8-4     line following State Highway 279 to Brownwood and continuing along

 8-5     U.S. Highway 377 south to the McCulloch County line; and other

 8-6     areas as proposed by the commissioner by rule for inclusion in the

 8-7     zone and approved by referendum in the area to be added.

 8-8           (c)  The St. Lawrence Eradication Zone consists of that area

 8-9     of Midland County south of a line 15 miles south of Interstate 20

8-10     running from the Ector County line east to the Glasscock County

8-11     line; Glasscock, Reagan, and Upton counties; and other areas as

8-12     proposed by the commissioner by rule for inclusion in the zone and

8-13     approved by referendum in the area to be added.

8-14           (d)  The South Texas Winter Garden Eradication Zone consists

8-15     of Aransas, Atascosa, Austin, Bee, Bexar, Calhoun, Colorado,

8-16     DeWitt, Dimmit, Duval, Frio, Goliad, Jackson, Jim Wells, Karnes,

8-17     Kinney, Kleberg, La Salle, Lavaca, Live Oak, Matagorda, McMullen,

8-18     Medina, Nueces, Refugio, San Patricio, Uvalde, Victoria, Wharton,

8-19     Wilson, and Zavala counties, and other areas as proposed by the

8-20     commissioner by rule for inclusion in the zone and approved by

8-21     referendum in the area to be added.  Brazoria, Colorado, Fort Bend,

8-22     Jackson, Matagorda, and Wharton counties are included in the South

8-23     Texas Winter Garden Eradication Zone only for purposes of the

8-24     repayment of debt existing on April 30, 1997, and those counties

8-25     may not be included in the zone for any other purpose unless the

 9-1     commissioner by rule proposes that an area be included in the zone

 9-2     and the proposal is approved by referendum in the area to be added.

 9-3           (e)  The Southern High Plains-Caprock Eradication Zone

 9-4     consists of Andrews, Cochran, Crosby, Dawson, Dickens, Gaines,

 9-5     Garza, Hockley, Howard, Kent, Lubbock, Lynn, Martin, Motley, Terry,

 9-6     and Yoakum counties; all land in Borden County lying west of a line

 9-7     seven miles west of the Scurry County line running south from the

 9-8     Garza County line to the Howard County line; that area of Midland

 9-9     County north of a line 15 miles south of Interstate 20 running from

9-10     the Ector County line east to the Glasscock County line; and other

9-11     areas as proposed by the commissioner by rule for inclusion in the

9-12     zone and approved by referendum in the area to be added.

9-13           (f)  The Southern Rolling Plains Eradication Zone consists of

9-14     Coke, Coleman, Concho, Irion, McCulloch, Runnels, Schleicher, and

9-15     Tom Green counties, all land in Taylor County lying west of U.S.

9-16     Highway 83 from a point commencing at the intersection of U.S.

9-17     Highway 83 and the south Taylor County line, north of the town of

9-18     Bradshaw; thence all the land lying south of Farm-to-Market Road

9-19     1086, as the farm-to-market road proceeds west and north to its

9-20     intersection with U.S. Highway 277, being all land lying south of

9-21     the farm-to-market road and east of U.S. Highway 277 from the

9-22     intersection of Farm-to-Market Road 1086 and U.S. Highway 277 to

9-23     the point where U.S. Highway 277 intersects the south boundary line

9-24     of Taylor County, and other areas as proposed by the commissioner

9-25     by rule for inclusion in the zone and approved by referendum in the

 10-1    area to be added.

 10-2          SECTION 1.05.  Subchapter D, Chapter 74, is amended by adding

 10-3    Sections 74.1041 and 74.1042 to read as follows:

 10-4          Sec. 74.1041.  INTERIM ADVISORY GROUPS.  (a)  The

 10-5    commissioner may designate an interim advisory group for each

 10-6    geographic statutory zone or region of the state that is to be

 10-7    considered by the commissioner for inclusion in an eradication

 10-8    zone.  The groups shall gather advice, input, and guidance from

 10-9    cotton growers from each area of the state concerning the interest

10-10    in and concerns about the implementation of this subchapter.

10-11          (b)  Each interim advisory group shall consider and make

10-12    recommendations to the commissioner concerning:

10-13                (1)  the geographic boundaries for the proposed

10-14    eradication zone;

10-15                (2)  the amount of local interest in operating an

10-16    eradication program;

10-17                (3)  the basis and amount of an assessment necessary to

10-18    support an eradication program;

10-19                (4)  the need to restructure any pre-existing debt from

10-20    prior eradication activities;

10-21                (5)  crediting a cotton grower's 1996 assessment

10-22    payments to any future assessment; and

10-23                (6)  any other matter requested by the commissioner.

10-24          (c)  Each interim advisory group shall include at least one

10-25    cotton grower from each county in the zone and other persons as

 11-1    determined by the commissioner.

 11-2          Sec. 74.1042.  CREATION OF NONSTATUTORY ERADICATION ZONES.

 11-3    (a)  The commissioner may by rule designate an area of the state as

 11-4    a proposed eradication zone as long as the area is not within a

 11-5    statutory zone under Section 74.1021 that has approved an

 11-6    eradication program by referendum.

 11-7          (b)  The commissioner may hold a public hearing within the

 11-8    proposed eradication zone to discuss the proposed geographic

 11-9    boundaries of the zone.  The public hearing may include any other

11-10    topics allowed under this subchapter.

11-11          (c)  After the adoption of a rule under Subsection (a), the

11-12    commissioner shall conduct a referendum under Section 74.105.

11-13          SECTION 1.06.  Subsections (a), (d), (e), and (f), Section

11-14    74.105, Agriculture Code, are amended to read as follows:

11-15          (a)  The commissioner [organization certified under Section

11-16    74.104 of this code or the foundation] shall conduct a referendum

11-17    in each proposed eradication zone to determine whether cotton

11-18    growers desire to establish an [official boll weevil or pink

11-19    bollworm] eradication zone.

11-20          (d)  If a referendum to establish an eradication zone fails,

11-21    the concurrent election of a board member [members] from the

11-22    proposed eradication zone under Section 74.106 [of this code] has

11-23    no effect, and the commissioner shall appoint a representative to

11-24    the board from the area.

11-25          (e)  The [organization certified under Section 74.104 of this

 12-1    code or the] foundation[, as appropriate,] may request the

 12-2    commissioner to call additional referenda in a proposed eradication

 12-3    zone in which a referendum has failed.  An additional eradication

 12-4    zone referendum and concurrent board election may be held no

 12-5    earlier than the 121st day after the date of the last referendum.

 12-6          (f)  After the passage of any referendum, the eligible voters

 12-7    shall be allowed, by subsequent referenda [periodically as

 12-8    specified in the initial referendum], to vote on whether to

 12-9    continue their assessments.  All of the requirements for an initial

12-10    referendum must be met in subsequent referenda.

12-11          SECTION 1.07.  Section 74.106, Agriculture Code, is amended

12-12    by amending Subsections (a), (c), and (d) and adding Subsection (h)

12-13    to read as follows:

12-14          (a)  The initial election for board members from a proposed

12-15    eradication zone shall be held concurrently with an eradication

12-16    zone referendum held under Section 74.105 [of this code].  Each

12-17    eradication zone shall be represented on the board and shall remain

12-18    represented on the board until eradication operations are concluded

12-19    and all debt of the eradication zone is paid.

12-20          (c)  A cotton grower who is eligible to vote in a referendum

12-21    or election under this subchapter is eligible to be a candidate for

12-22    and member of the board if the person has at least seven years of

12-23    experience as a cotton grower and otherwise meets the

12-24    qualifications for the position.

12-25          (d)  A cotton grower who wants to be a candidate for the

 13-1    board must meet the qualifications for board membership and file an

 13-2    application with the [secretary of the foundation or, before

 13-3    certification of the organization under Section 74.104 of this

 13-4    code, the] commissioner.  The application must be:

 13-5                (1)  filed not later than the 30th day before the date

 13-6    set for the board election;

 13-7                (2)  on a form approved by the commissioner; and

 13-8                (3)  signed by at least 10 cotton growers who are

 13-9    eligible to vote in the board election.

13-10          (h)  Each board member shall be sworn into office by a

13-11    representative of the commissioner by taking the oath of office

13-12    required for elected officers of the state.

13-13          SECTION 1.08.  Section 74.107, Agriculture Code, is amended

13-14    to read as follows:

13-15          Sec. 74.107.  COMPOSITION OF BOARD.  (a)  The board shall be

13-16    composed of members elected from each statutory eradication zone

13-17    established and validated by referendum, members appointed by the

13-18    commissioner from other cotton growing areas of the state, and

13-19    members appointed by the commissioner under Subsection (b).  The

13-20    commissioner shall appoint an initial board composed of 15 members.

13-21    Except as provided by Subsection (b), the term of each board

13-22    position may not exceed four years [High Plains Boll Weevil

13-23    Suppression Program Area and the St. Lawrence Cotton Growers Boll

13-24    Weevil Control Zone are separate zones for the purposes of boll

13-25    weevil eradication;  however, an area in the St. Lawrence Cotton

 14-1    Growers Boll Weevil Control Zone may be assigned to another zone as

 14-2    provided by this subchapter].

 14-3          (b)  In making appointments under this section, the

 14-4    commissioner shall appoint the following for four-year terms:

 14-5                (1)  an agricultural lender;

 14-6                (2)  an independent entomologist or an integrated pest

 14-7    management specialist;

 14-8                (3)  two representatives from industries allied with

 14-9    cotton production; and

14-10                (4)  a representative from the pest control industry.

14-11          (c)  The commissioner [board, with the commissioner's

14-12    approval,] may change the number of board positions or the

14-13    eradication zone representation on the board to accommodate changes

14-14    in the number of eradication zones.  A change under this subsection

14-15    may not contravene another provision of this subchapter.

14-16          (d)  A vacancy on the board shall be filled by appointment by

14-17    the commissioner for the unexpired term.

14-18          (e)  On 30 days' notice and opportunity for hearing, the

14-19    commissioner may replace any unelected board member of the

14-20    foundation.

14-21          SECTION 1.09.  Section 74.108, Agriculture Code, is amended

14-22    to read as follows:

14-23          Sec. 74.108.  [BOARD] POWERS OF BOARD AND COMMISSIONER.

14-24    (a)  The board may:

14-25                (1)  [conduct board elections;]

 15-1                [(2)  conduct eradication zone referenda;]

 15-2                [(3)  conduct assessment referenda under Section 74.113

 15-3    of this code;]

 15-4                [(4)]  conduct programs consistent with the declaration

 15-5    of policy stated in Section 74.101 [of this code];

 15-6                (2) [(5)]  accept, as necessary to implement this

 15-7    chapter, gifts and grants;

 15-8                (3) [(6)]  borrow money, with the approval of the

 15-9    commissioner, as necessary to execute this chapter;

15-10                (4) [(7)]  take other action and exercise other

15-11    authority as necessary to execute any act authorized by this

15-12    subchapter or the Texas Non-Profit Corporation Act (Article

15-13    1396-1.01 et seq., Vernon's Texas Civil Statutes); and

15-14                (5) [(8)]  form an advisory committee composed of

15-15    individuals from this state, other states, or other countries and

15-16    change membership on the committee, as necessary.  Any advisory

15-17    committee created under this subdivision for the purpose of

15-18    establishing treatment methods shall include among its members

15-19    persons with knowledge of the effects of different treatments on

15-20    the health of agricultural workers, the local population, and the

15-21    ecosystem, including but not limited to the effects of a particular

15-22    method of treatment on beneficial organisms and wildlife, the

15-23    potential for secondary infestations from nontarget pests, and the

15-24    potential for pest resistance to particular methods of treatment.

15-25          (b)  The commissioner [board] may by rule add an area to an

 16-1    eradication zone or transfer an area or county from one statutory

 16-2    zone to another zone if:

 16-3                (1)  cotton production has begun or could begin

 16-4    [begins] in the area;

 16-5                (2)  the area is adjacent to an eradication zone or is

 16-6    in an area with biological characteristics similar to the

 16-7    eradication zone; and

 16-8                (3)  the addition is approved in a referendum held in

 16-9    the area.

16-10          (c)  The board must adopt a procurement policy, subject to

16-11    approval by the commissioner, outlining the procedures to be used

16-12    in purchasing [may initiate the boll weevil eradication program in

16-13    an area added to an eradication zone and may assess cotton growers

16-14    in the area added to the eradication zone to ensure the integrity

16-15    and success of the eradication program.  The board shall provide

16-16    notice of intent to initiate eradication and collect assessments

16-17    through informational meetings in the affected area not later than

16-18    60 days before the date recognized by the board as the average

16-19    planting date for the area].

16-20          [(d)  The board may not reduce the area of the High Plains

16-21    Boll Weevil Suppression Program Area.]

16-22          SECTION 1.10.  Section 74.109, Agriculture Code, is amended

16-23    by amending Subsections (a), (d), (e), (g), and (h) and adding

16-24    Subsections (i) and (j) to read as follows:

16-25          (a)  The board shall make available to the state auditor for

 17-1    inspection at an annual independent audit all books, records of

 17-2    account, and minutes of proceedings maintained by the foundation.

 17-3    The financial transactions of the foundation are subject to audit

 17-4    by the state auditor in accordance with Chapter 321, Government

 17-5    Code.

 17-6          (d)  The foundation and the board are state agencies for the

 17-7    following purposes only:

 17-8                (1)  exemption from taxation including exemption from

 17-9    sales and use taxes, vehicle registration fees, and taxes under

17-10    Chapter 152, Tax Code; and

17-11                (2)  indemnification under Chapter 104, Civil Practice

17-12    and Remedies Code.

17-13          (e)  Funds collected by the foundation are not state funds

17-14    and are not required to be deposited in the state treasury.  The

17-15    foundation shall deposit all money collected under this subchapter

17-16    in a bank or other depository approved by the commissioner [board].

17-17          (g)  The board shall collect data on the type and quantity of

17-18    pesticides used in accordance with this subchapter.  The data shall

17-19    be filed with the commissioner.

17-20          (h)  All revenue collected under this subchapter shall be

17-21    used solely to finance programs approved by the commissioner as

17-22    consistent with this subchapter [and applicable provisions of the

17-23    constitution].

17-24          (i)  The foundation is subject to the requirements of:

17-25                (1)  the open meetings law, Chapter 551, Government

 18-1    Code;

 18-2                (2)  the open records law, Chapter 552, Government

 18-3    Code; and

 18-4                (3)  the administrative procedure law, Chapter 2001,

 18-5    Government Code.

 18-6          (j)  A board member may not vote on any matter in which the

 18-7    member has a direct pecuniary interest.  A board member is subject

 18-8    to the same restrictions as a local public official under Chapter

 18-9    171, Local Government Code.

18-10          SECTION 1.11.  Section 74.110, Agriculture Code, is amended

18-11    to read as follows:

18-12          Sec. 74.110.  LIABILITY OF FOUNDATION MEMBERS, OFFICERS, AND

18-13    EMPLOYEES AND APPLICATORS.  (a)  Except for instances of gross

18-14    negligence, individual criminal actions, or acts of dishonesty, the

18-15    foundation, the foundation's members, directors, officers, and

18-16    employees, and applicators are not individually liable to a cotton

18-17    grower or other person for:

18-18                (1)  errors in judgment;

18-19                (2)  mistakes; or

18-20                (3)  other acts or omissions.

18-21          (b)  A foundation member, officer, or employee or an

18-22    applicator is not individually liable for an act or omission of

18-23    another foundation member, officer, or employee or of an

18-24    applicator.

18-25          (c)  Except as provided by Subsection (d), an applicator is

 19-1    liable to a person for death, damage, or injury to a person or the

 19-2    person's property proximately caused by the applicator while acting

 19-3    to further or support eradication or diapause efforts undertaken

 19-4    pursuant to this subchapter if the death, damage, or injury

 19-5    resulted from:

 19-6                (1)  any negligent act or omission in the application,

 19-7    loading, handling, storage, or use of pesticides or other

 19-8    chemicals;

 19-9                (2)  any act taken with specific intent to wrongfully

19-10    injure the person or the person's property; or

19-11                (3)  any act done with conscious indifference or

19-12    reckless disregard for the safety of others.

19-13          (d)  An applicator is immune from civil liability for any act

19-14    or omission resulting in death, damage, or injury if the

19-15    applicator:

19-16                (1)  was acting pursuant to reasonably precise

19-17    directions, instructions, or specifications provided by the

19-18    foundation;

19-19                (2)  complied with those directions, instructions, or

19-20    specifications; and

19-21                (3)  did not actually know of any risks of harm to the

19-22    person injured or property damaged before the time of the act or

19-23    omission in question that were not known to the foundation at that

19-24    time.

19-25          (e)  The foundation shall have liability coverage in effect

 20-1    for any eradication or diapause efforts for which it uses

 20-2    applicators.  The coverage shall apply to acts and omissions of the

 20-3    foundation and volunteers and be in the amount of at least $500,000

 20-4    for each single occurrence of death, bodily injury, or property

 20-5    damage.

 20-6          (f)  In this section, "applicator" means an individual or

 20-7    other person that is not a member, director, officer, or employee

 20-8    of the foundation and that contracts with the foundation to apply

 20-9    pesticides or other chemicals using aircraft or other equipment to

20-10    further or support the eradication or diapause efforts undertaken

20-11    pursuant to this subchapter.

20-12          (g)  Nothing in this section shall be construed to mean that

20-13    an applicator or other person cannot be held responsible for

20-14    violations of state and federal pesticide and herbicide laws and

20-15    regulations adopted thereunder.

20-16          SECTION 1.12.  Subsections (f), (g), (h), and (i), Section

20-17    74.112, Agriculture Code, are amended to read as follows:

20-18          (f)  If 40 percent or more of the producers eligible to vote

20-19    within a zone participating in the program present to the

20-20    commissioner [foundation] a petition calling for a referendum of

20-21    the qualified voters on the proposition of discontinuing the

20-22    program, the commissioner [board] shall conduct a referendum for

20-23    that purpose.

20-24          (g)  The commissioner [board] shall give notice of the

20-25    referendum, the referendum shall be conducted, and the results

 21-1    shall be declared in the manner provided by law for the original

 21-2    referendum and election, with any necessary exceptions provided by

 21-3    rule of the commissioner.

 21-4          (h)  The commissioner [board] shall conduct the referendum

 21-5    within 90 days of the date of filing of the petition, except that

 21-6    no such referendum may be held within two years of any other

 21-7    referendum in the eradication zone pertaining to establishing or

 21-8    discontinuing the eradication zone.

 21-9          (i)  Approval of the proposition is by the same vote as

21-10    required in a referendum under Section 74.114(g) [majority vote of

21-11    those voting].  If the proposition is approved, the eradication

21-12    program is abolished and the eradication zone ceases to exist on

21-13    payment of all debts of the eradication zone.

21-14          SECTION 1.13.  Section 74.113, Agriculture Code, is amended

21-15    to read as follows:

21-16          Sec. 74.113.  ASSESSMENT REFERENDA.  (a)  The commissioner

21-17    [foundation] shall propose [determine] the assessment needed in

21-18    each eradication zone to ensure the stability of the cotton

21-19    industry by eradicating the public nuisance caused by the boll

21-20    weevil and the pink bollworm [accomplish the following goal:  to

21-21    finance programs of marketing, promotion, research, and education

21-22    calculated to increase the production and use of cotton].

21-23          (b)  The commissioner [foundation] shall propose in a

21-24    referendum the:

21-25                (1)  maximum assessment to be paid by cotton growers

 22-1    having production in the eradication zone; and

 22-2                (2)  time for which the assessment will be made.

 22-3          (c)  With the commissioner's approval, the [The] foundation

 22-4    may make an assessment in an eradication zone at a level less than

 22-5    the assessment approved by the referendum.

 22-6          (d)  The commissioner [foundation] shall conduct an

 22-7    assessment referendum under the procedures provided by Section

 22-8    74.114 [of this code].

 22-9          (e)  If an assessment referendum is approved, the foundation

22-10    may collect the assessment.

22-11          (f)  An assessment levied on cotton growers in an eradication

22-12    zone may be applied only to:

22-13                (1)  eradication in that zone;

22-14                (2)  the foundation's operating costs, including

22-15    payments on debt incurred for a foundation activity, except that

22-16    the funds of one zone may not be used to pay another zone's bank

22-17    loans or debts; and

22-18                (3)  the conducting of other programs consistent with

22-19    the declaration of policy stated in Section 74.101 [of this code].

22-20          (g)  The assessment shall be adequate and necessary to

22-21    achieve the goals of this subchapter.  The amount of the assessment

22-22    shall be determined by criteria established by the commissioner,

22-23    including:

22-24                (1)  the extent of infestation;

22-25                (2)  the amount of acreage planted;

 23-1                (3)  historical efforts to eradicate;

 23-2                (4)  the growing season;

 23-3                (5)  epidemiology;

 23-4                (6)  historical weather conditions; and

 23-5                (7)  the costs and financing of the program.

 23-6          (h)  The commissioner shall give notice of and hold a public

 23-7    hearing within the eradication zone regarding the proposed

 23-8    assessment referendum.  Before the referendum, the commissioner

 23-9    shall review and approve:

23-10                (1)  the amount of the assessment;

23-11                (2)  the basis for the assessment;

23-12                (3)  the time for payment of the assessment;

23-13                (4)  the method of allocation of the assessment among

23-14    cotton growers;

23-15                (5)  the restructuring and repayment schedule for any

23-16    pre-existing debt; and

23-17                (6)  the amount of debt to be incurred in the

23-18    eradication zone.

23-19          (i)  The commissioner shall on a zone-by-zone basis set the

23-20    date on which assessments are due and payable.

23-21          (j)  Each year, the commissioner shall review and approve the

23-22    foundation's operating budget.

23-23          (k)  The foundation shall prepare and mail billing statements

23-24    to each cotton grower subject to the assessment that state the

23-25    amount due and the due date.  The assessments shall be paid in cash

 24-1    to the foundation.

 24-2          SECTION 1.14.  Subsections (a), (c), (d), (f), (h), and (i),

 24-3    Section 74.114, Agriculture Code, are amended to read as follows:

 24-4          (a)  The commissioner [foundation] shall conduct a referendum

 24-5    or board election authorized under this subchapter [its

 24-6    jurisdiction].  At the end of each four-year period in which an

 24-7    eradication program has been operational in a zone, the

 24-8    commissioner shall hold a referendum in the zone on the

 24-9    continuation of the eradication program.  The referendum shall be

24-10    held at the same time as the election of a board member from the

24-11    zone.  Approval of the referendum on continuation is by a majority

24-12    of those voting in the referendum.

24-13          (c)  The commissioner shall adopt rules for voting in [the

24-14    initial] board elections [election] and [initial] referenda to

24-15    establish or continue eradication zones.  [The board shall adopt

24-16    rules for voting in other referenda and board elections.]  Rules

24-17    adopted under this subsection must include provisions for

24-18    determining:

24-19                (1)  who is a cotton grower eligible to vote in an

24-20    election or referendum;

24-21                (2)  whether a board member is elected by a plurality

24-22    or a majority of the votes cast; and

24-23                (3)  the area from which each board member is elected.

24-24          (d)  A cotton grower having cotton production in a proposed

24-25    or established eradication zone is entitled to:

 25-1                (1)  vote in a referendum concerning the eradication

 25-2    zone; and

 25-3                (2)  elect board members to represent the eradication

 25-4    zone.

 25-5          (f)  Ballots in a referendum or board election shall be

 25-6    mailed directly to a central location, to be [initially] determined

 25-7    by the commissioner [and later determined by the board].  A cotton

 25-8    grower eligible to vote in a referendum or board election who has

 25-9    not received a ballot from the commissioner, foundation, or another

25-10    source shall be offered the option of requesting a ballot by mail

25-11    or obtaining a ballot at the office of the county agent of the

25-12    Texas Agricultural Extension Service or a government office

25-13    distributing ballots in a county in the proposed or established

25-14    zone in which the referendum or board election is conducted.

25-15          (h)  If a referendum under this subchapter is not approved,

25-16    the [foundation may with the approval of the] commissioner may

25-17    conduct another referendum.  A referendum under this subsection may

25-18    not be held before the 121st day after the date on which the last

25-19    referendum on the same issue was held.

25-20          (i)  A public hearing regarding the proposed eradication

25-21    program, including information regarding regulations to be

25-22    promulgated by the [foundation and the] commissioner, may [shall]

25-23    be held by the commissioner [foundation] in each of several

25-24    locations within each boll weevil or pink bollworm eradication

25-25    zone.  The area posted for each hearing shall include no more than

 26-1    six contiguous counties that have cotton production at the time of

 26-2    the hearing.

 26-3          SECTION 1.15.  Section 74.115, Agriculture Code, is amended

 26-4    to read as follows:

 26-5          Sec. 74.115.  FAILURE TO PAY ASSESSMENTS.  (a)  A cotton

 26-6    grower who fails to pay an assessment levied under this subchapter

 26-7    when due may be subject, after reasonable notice and opportunity

 26-8    for hearing, to a penalty set by the commissioner [board].  The

 26-9    amount of the penalty shall be based on:

26-10                (1)  the seriousness of the violation, including the

26-11    nature, circumstances, and extent of the violation;

26-12                (2)  the history of previous violations;

26-13                (3)  the amount necessary to deter future violations;

26-14                (4)  the economic situation of the cotton grower; and

26-15                (5)  any other matter that justice may require.

26-16          (b)  [A cotton grower who fails to pay all assessments and

26-17    penalties before the 10th day after receiving notice of the

26-18    delinquency shall destroy any cotton growing on the grower's

26-19    acreage that is subject to the assessment.  Cotton plants that are

26-20    not destroyed are a public nuisance, and, on recommendation of the

26-21    foundation, the department shall follow the procedures for

26-22    destruction of host plants provided by Subchapters A and B of this

26-23    chapter, including procedures for reimbursement by the grower of

26-24    costs required for destruction.  The department may apply to a

26-25    district court with jurisdiction in the county in which the public

 27-1    nuisance is located to have the nuisance condemned and destroyed.

 27-2    Injunctive relief available to the department under this subchapter

 27-3    is in addition to any other legal remedy available to the

 27-4    department.  The department is not required to file a bond in a

 27-5    proceeding under this subsection.]

 27-6          [(c)]  In addition to any other remedies for the collection

 27-7    of assessments and penalties, the department may place and perfect

 27-8    an assessment [a] lien on cotton produced and harvested that year

 27-9    from the acreage that is subject to the assessment that is due and

27-10    unpaid.  A buyer of cotton takes free of the assessment lien if the

27-11    buyer has not received written or actual notice of the assessment

27-12    lien [from the department] or if the buyer has paid for the cotton

27-13    by a check on which the department is named as a joint payee.  In

27-14    an action to enforce the assessment lien, the burden is on the

27-15    department to prove that the buyer of cotton received written or

27-16    actual notice of the assessment lien.  A buyer of cotton other than

27-17    a person buying cotton from the cotton grower takes free of the

27-18    assessment lien.

27-19          SECTION 1.16.  Section 74.116, Agriculture Code, is amended

27-20    to read as follows:

27-21          Sec. 74.116.  EXEMPTION FROM ASSESSMENT PENALTIES.  (a)  The

27-22    commissioner by rule shall adopt criteria for exemption from

27-23    payment of assessment penalties under Section 74.115 of this code a

27-24    cotton grower for whom payment would impose an undue financial

27-25    burden.

 28-1          (b)  A cotton grower may not qualify for an exemption under

 28-2    this section for a year in which the amount computed by subtracting

 28-3    the assessments and penalties due under this subchapter from the

 28-4    cotton grower's net income subject to federal income taxation in

 28-5    the previous year is greater than $15,000.

 28-6          (c)  A cotton grower who applies for an exemption under this

 28-7    section must use a form prescribed by the commissioner.  A cotton

 28-8    grower must file a separate application form for each year for

 28-9    which the cotton grower claims an exemption.

28-10          (d)  The [commissioner shall forward to the foundation a

28-11    completed exemption application form.  The foundation shall

28-12    determine whether the applicant qualifies for an exemption and

28-13    shall notify the commissioner of its determination.]

28-14          [(e)  On notification by the foundation that a cotton grower

28-15    qualifies for an exemption, the commissioner shall exempt the

28-16    cotton grower from payment of an assessment penalty under Section

28-17    74.115 of this code.]

28-18          [(f)  On the foundation's recommendation, the] commissioner

28-19    may establish a payment plan for a cotton grower applying for an

28-20    exemption under this section.

28-21          (e) [(g)]  The commissioner shall promptly notify an

28-22    applicant of the [foundation's] determination regarding the

28-23    applicant's request for an exemption.

28-24          (f) [(h)]  If an exemption under this section is denied,

28-25    assessments and penalties for the year for which the application is

 29-1    made are due on the later of:

 29-2                (1)  the date on which they would be due in the absence

 29-3    of an application for exemption; or

 29-4                (2)  30 days after the date the applicant receives

 29-5    notice of the denial.

 29-6          (g)  In addition to the authority provided under Subsections

 29-7    (a)-(f), the commissioner may, on recommendation of the foundation,

 29-8    reduce or waive assessment penalties as appropriate.

 29-9          SECTION 1.17.  Section 74.117, Agriculture Code, is amended

29-10    to read as follows:

29-11          Sec. 74.117.  ENTRY OF PREMISES; ERADICATION ACTIVITIES;

29-12    INSPECTIONS.  The department, the foundation, or a designated

29-13    representative of either entity may enter cotton fields or other

29-14    premises to carry out the purposes of this subchapter and

29-15    Subchapters A and B of this chapter, which include the treatment

29-16    and[,] monitoring[, and destruction] of growing cotton or other

29-17    host plants.  The department, the foundation, or a designated

29-18    representative of either entity may inspect fields or premises in

29-19    this state for the purpose of determining whether the property is

29-20    infested with the boll weevil or the pink bollworm.  An inspection

29-21    must be conducted during reasonable daylight hours.  The

29-22    commissioner shall require that notice be given to a cotton grower

29-23    of the intent to enter the cotton grower's fields or premises to

29-24    carry out the purposes of this subchapter.  The foundation shall

29-25    notify a cotton grower of the foundation's intent to treat cotton

 30-1    acres before the actual treatment.

 30-2          SECTION 1.18.  Subsections (b), (c), and (d), Section 74.120,

 30-3    Agriculture Code, are amended to read as follows:

 30-4          (b)  Rules adopted under this section shall establish the

 30-5    criteria by which the foundation develops its [rules,]

 30-6    procedures[,] and methods of treatment, which shall [rules]:

 30-7                (1)  establish a methodology for determining when boll

 30-8    weevil or pink bollworm population levels have reached economic

 30-9    significance;

30-10                (2)  establish an effective treatment regimen that

30-11    seeks to provide the least possible risk to workers, the public,

30-12    and the environment;

30-13                (3)  minimize the effects of the use of pesticides on

30-14    long-term control methods, including but not limited to the effect

30-15    a particular pesticide may have on biological controls;

30-16                (4)  establish methods for monitoring boll weevils,

30-17    pink bollworms, and secondary pests;

30-18                (5)  establish methods for verifying pesticide use

30-19    reduction; and

30-20                (6)  consider the acute and chronic toxicity of

30-21    particular pesticides and the quantity of particular pesticides

30-22    needed.  Eradication zone treatment plans may take into account the

30-23    potential for the use of smaller quantities of more toxic

30-24    substances to result in fewer health and environmental risks than

30-25    larger quantities of less toxic substances.

 31-1          (c)  The commissioner [foundation and the department] may

 31-2    adopt other reasonable rules necessary to carry out the purposes of

 31-3    this subchapter and Subchapters A and B of this chapter.   All

 31-4    rules issued under this subchapter must be adopted and published in

 31-5    accordance with state requirements.  [Rules adopted by the

 31-6    foundation under this section shall be consistent with rules

 31-7    adopted by the commissioner under this subchapter.]

 31-8          (d)  An advisory committee may [shall] be established to

 31-9    assist the commissioner in the development of rules adopted under

31-10    this section.  The advisory committee may [shall] be composed of:

31-11                (1)  three cotton producers from different regions of

31-12    the state, appointed by the commissioner;

31-13                (2)  three entomologists with knowledge of the

31-14    principles of integrated pest management, at least one of whom has

31-15    special knowledge of nonchemical or biological pest control,

31-16    appointed by the commissioner;

31-17                (3)  two individuals with experience representing the

31-18    general interests of the environment, appointed by the chair of the

31-19    Texas Natural Resource Conservation Commission;

31-20                (4)  an environmental engineer with expert knowledge of

31-21    ground and surface water protection from contamination, appointed

31-22    by the chair of the Texas Natural Resource Conservation Commission;

31-23                (5)  a toxicologist, appointed by the Commissioner of

31-24    Health; and

31-25                (6)  an individual with experience representing the

 32-1    general interests of consumers and an individual with experience

 32-2    representing the general interests of agricultural workers,

 32-3    appointed by the governor.

 32-4          SECTION 1.19.  Section 74.121, Agriculture Code, is amended

 32-5    to read as follows:

 32-6          Sec. 74.121.  REPORTS.  Each person in an active eradication

 32-7    zone growing cotton in this state shall furnish to the foundation

 32-8    on forms supplied by the foundation information that the foundation

 32-9    requires concerning the size and location of all commercial cotton

32-10    fields and of noncommercial patches of cotton grown for ornamental

32-11    or other purposes.  The foundation may provide an incentive for

32-12    early and timely reporting.

32-13          SECTION 1.20.  Section 74.124, Agriculture Code, is amended

32-14    by amending Subsection (a) and adding Subsection (c) to read as

32-15    follows:

32-16          (a)  The foundation may carry out programs to destroy and

32-17    eliminate the boll weevil and the pink bollworm in this state by

32-18    cooperating through written agreements, as approved by the

32-19    commissioner, with:

32-20                (1)  an agency of the federal government;

32-21                (2)  a state agency;

32-22                (3)  an appropriate agency of a foreign country

32-23    contiguous to the affected area to the extent allowed by federal

32-24    law;

32-25                (4)  a person who is engaged in growing, processing,

 33-1    marketing, or handling cotton; or

 33-2                (5)  a group of persons in this state involved in

 33-3    similar programs to carry out the purposes of this subchapter.

 33-4          (c)  Agreements under Subsections (a)(4)-(5) must be approved

 33-5    in each referendum required under this subchapter other than a

 33-6    referendum to discontinue an eradication program.  The agreements

 33-7    must be approved by the same margin as required in the retention

 33-8    referendum.

 33-9          SECTION 1.21.  Section 74.125, Agriculture Code, is amended

33-10    to read as follows:

33-11          Sec. 74.125.  ORGANIC PRODUCERS.  (a)  The [board, in

33-12    cooperation with the] commissioner[,] shall develop rules and

33-13    procedures to:

33-14                (1)  protect the eligibility of organic producers to be

33-15    certified by the commissioner;

33-16                (2)  ensure that organic and transitional certification

33-17    by the commissioner continue to meet national certification

33-18    standards in order for organic cotton to maintain international

33-19    marketability; and

33-20                (3)  in all events maintain the effectiveness of the

33-21    boll weevil or pink bollworm eradication program administered under

33-22    this subchapter.

33-23          (b)  The board may not treat or require treatment of organic

33-24    cotton fields with chemicals that are not approved for use on

33-25    certified organic cotton.  Plow-up may be required as an

 34-1    alternative to chemicals.  Rules [In the rules] adopted under

 34-2    Subsection (a)[, the board] may provide indemnity for the organic

 34-3    producers for reasonable losses that result from a prohibition of

 34-4    production of organic cotton or from any requirement of destruction

 34-5    of organic cotton.  If time is reasonably available for the

 34-6    production of an economically feasible alternative crop, the board

 34-7    may require mitigation of losses with the production of an

 34-8    alternative crop.

 34-9          SECTION 1.22.  Subsection (c), Section 74.126, Agriculture

34-10    Code, is amended to read as follows:

34-11          (c)  If the commissioner [or the foundation] determines that

34-12    a violation of this subchapter or a rule adopted under this

34-13    subchapter has occurred, the commissioner [or the foundation] may

34-14    request that the attorney general or the county or district

34-15    attorney of the county in which the alleged violation occurred or

34-16    is occurring file suit for civil, injunctive, and/or other

34-17    appropriate relief.

34-18          SECTION 1.23.  Subchapter D, Chapter 74, Agriculture Code, is

34-19    amended by adding Sections 74.128 and 74.129 to read as follows:

34-20          Sec. 74.128.  ANNUAL REPORT.  The board shall issue to the

34-21    commissioner and the appropriate oversight committee in the house

34-22    of representatives an annual report detailing its efforts to carry

34-23    out the purposes of this subchapter.

34-24          Sec. 74.129.  EXEMPTION FROM LAWSUITS, LIABILITY, TAXATION,

34-25    AND LEGAL PROCESS.  The legislature recognizes that the foundation,

 35-1    acting under the supervision and control of the commissioner, is

 35-2    carrying out an important governmental function and that therefore

 35-3    the foundation, as a quasi-governmental entity, must be immune from

 35-4    lawsuits and liability except to the extent provided in Chapter

 35-5    101, Civil Practice and Remedies Code, and as provided by this

 35-6    section.  Therefore, no claims may be brought or continued against

 35-7    the foundation except:  (1) claims allowed by Chapter 101, Civil

 35-8    Practice and Remedies Code; and (2) claims pending against the

 35-9    foundation on April 30, 1997, plus attorney's fees and costs of

35-10    court.  With the exception of finally adjudicated claims arising

35-11    from Chapter 101, Civil Practice and Remedies Code, and claims for

35-12    assessments, attorney's fees, and costs of court paid by named

35-13    plaintiffs in lawsuits pending on or before April 30, 1997, all

35-14    payments, contributions, funds, and assessments received or held by

35-15    the foundation under this subchapter are exempt from garnishment,

35-16    attachment, execution, or other seizure and from state and local

35-17    taxation, levies, sales, and any other process and are

35-18    unassignable.  Nothing in this section shall affect or impair any

35-19    existing or future indebtedness or any existing or future security

35-20    interest created under a note, security agreement, assignment, or

35-21    other loan agreement between the foundation and a lender or any

35-22    judgment, to the extent such judgment allows recovery against the

35-23    foundation pursuant to a note, security agreement, loan agreement,

35-24    or other document.

35-25          SECTION 1.24.  (a)  All agreements made and obligations

 36-1    incurred by the Texas Boll Weevil Eradication Foundation, Inc.,

 36-2    before the effective date of this Act are validated, ratified, and

 36-3    confirmed.  The foundation's members, directors, officers,

 36-4    employees, and agents are not individually liable for, or in

 36-5    connection with, any agreement or obligation validated under this

 36-6    section.

 36-7          (b)  Except for instances of gross negligence, individual

 36-8    criminal actions, or acts of dishonesty, the foundation's members,

 36-9    directors, officers, and employees are not individually liable to a

36-10    cotton grower or other person for errors in judgment, mistakes, or

36-11    other acts or omissions made or occurring before the effective date

36-12    of this Act under the authority of Subchapter D, Chapter 74,

36-13    Agriculture Code, as originally enacted or subsequently amended.

36-14          (c)  This section does not make any obligation validated,

36-15    ratified, or confirmed under this section a debt of this state.

36-16          SECTION 1.25.  (a)  To the extent assessments have not been

36-17    previously validated, ratified, and confirmed, assessments approved

36-18    on February 28, 1994, for the Southern Rolling Plains Boll Weevil

36-19    Eradication Zone, on December 1, 1994, and August 2, 1996, for the

36-20    Central Rolling Plains Boll Weevil Eradication Zone, and on

36-21    February 16, 1995, for the South Texas/Winter Garden Boll Weevil

36-22    Eradication Zone, and all agreements and obligations of the

36-23    foundation related to the statutory zones made or approved before

36-24    the effective date of this Act are validated, ratified, and

36-25    confirmed and shall continue under this subsection.  In any

 37-1    eradication zone existing prior to the effective date of this Act,

 37-2    other than zones named in this subsection, assessments are

 37-3    validated, ratified, and confirmed only as to amounts actually

 37-4    collected by the Texas Boll Weevil Eradication Foundation, Inc.,

 37-5    prior to the effective date of this Act.  For purposes of this

 37-6    subsection, any assessments in any such pre-existing zone which

 37-7    have been deposited in the registry of a court of this state on or

 37-8    before April 30, 1997, or paid by named plaintiffs in a pleading

 37-9    filed on or before April 30, 1997, in lawsuits against the

37-10    foundation are not assessments actually collected by the

37-11    foundation.

37-12          (b)  Not later than one year after the effective date of this

37-13    Act, the commissioner of agriculture shall hold a retention

37-14    referendum and board election in each statutory zone listed in

37-15    Subsection (a) of this section to determine the continued necessity

37-16    of an eradication program under Section 74.114, Agriculture Code,

37-17    as amended by this Act.  The retention referendum will be

37-18    determined by a vote of the majority of the cotton growers voting

37-19    in the retention referendum.

37-20          (c)  The commissioner of agriculture may, in each statutory

37-21    zone, solicit public comment through public hearings to determine

37-22    whether to divide any of the statutory zones as defined in Section

37-23    74.1021, Agriculture Code, as added by this Act.  After considering

37-24    public opinion, the commissioner may by rule divide a statutory

37-25    zone and fairly apportion any debt to each portion of the divided

 38-1    zone.

 38-2          (d)  The commissioner of agriculture shall conduct an

 38-3    eradication referendum under Section 74.114, Agriculture Code, as

 38-4    amended by this Act in the Southern High Plains-Caprock Eradication

 38-5    Zone not later than August 1, 1997.  The commissioner shall comply

 38-6    with the notice requirements of Subchapter D, Chapter 74,

 38-7    Agriculture Code, as amended by this Act, and other law, to the

 38-8    extent reasonable to conduct the eradication referendum required

 38-9    under this subsection.

38-10          SECTION 1.26.  The Texas Boll Weevil Eradication Foundation,

38-11    Inc., shall, not later than 30 days after the effective date of

38-12    this Act, take whatever steps are necessary to adjust the

38-13    composition of its board of directors to permit the commissioner of

38-14    agriculture to appoint board members in compliance with Section

38-15    74.107, Agriculture Code, as amended by this Act.  If the

38-16    foundation does not comply with Section 74.107, Agriculture Code,

38-17    as amended by this Act,  the commissioner may cancel the

38-18    designations and designate another nonprofit entity that meets the

38-19    qualifications of Section 74.107, Agriculture Code, as amended by

38-20    this Act.  In the interim, the current directors and officers of

38-21    the foundation shall remain in office and carry out the

38-22    foundation's duties under Subchapter D, Chapter 74, Agriculture

38-23    Code, as amended by this Act.

38-24          SECTION 1.27.  Sections 74.103 and 74.104, Agriculture Code,

38-25    are repealed.

 39-1                                 ARTICLE 2

 39-2          SECTION 2.01.  Subsections (b) and (c), Section 74.105,

 39-3    Agriculture Code, are reenacted to read as follows:

 39-4          (b)  Eradication zone referenda shall be conducted under the

 39-5    procedures provided by Section 74.114 of this code.

 39-6          (c)  A proposed eradication zone referendum ballot must

 39-7    include or be accompanied by information about the proposed

 39-8    eradication zone, including:

 39-9                (1)  a statement of the purpose of the boll weevil or

39-10    pink bollworm eradication program;

39-11                (2)  the geographic area included in the proposed

39-12    eradication zone;

39-13                (3)  a general summary of rules adopted by the

39-14    commissioner under Sections 74.114, 74.118, and 74.120 of this

39-15    code, including a description of:

39-16                      (A)  cotton grower responsibilities; and

39-17                      (B)  penalties for noncompliance with rules

39-18    adopted under this subchapter; and

39-19                (4)  an address and toll-free telephone number that a

39-20    cotton grower may use to request more information about the

39-21    referendum or the boll weevil or pink bollworm eradication program.

39-22          SECTION 2.02.  Subsections (b), (e), (f), and (g), Section

39-23    74.106, Agriculture Code, are reenacted to read as follows:

39-24          (b)  A board election shall be conducted under the procedures

39-25    provided by this section and Section 74.114 of this code.

 40-1          (e)  On receipt of an application and verification that the

 40-2    application meets the requirements of Subsection (d) of this

 40-3    section, an applicant's name shall be placed on the ballot for the

 40-4    board election.

 40-5          (f)  An eligible voter may vote for a cotton grower whose

 40-6    name does not appear on the official ballot by writing that

 40-7    person's name on the ballot.

 40-8          (g)  A board election must be preceded by at least 45 days

 40-9    notice published in one or more newspapers published and

40-10    distributed in the proposed or established eradication zone.  The

40-11    notice shall be published not less than once a week for three

40-12    consecutive weeks.  Not later than the 45th day before the date of

40-13    the election, direct written notice of the election shall be given

40-14    to each county agent in the eradication zone.

40-15          SECTION 2.03.  Subsections (b), (c), and (f), Section 74.109,

40-16    Agriculture Code, are reenacted to read as follows:

40-17          (b)  Not later than the 45th day after the last day of the

40-18    fiscal year, the board shall submit to the commissioner a report

40-19    itemizing all income and expenditures and describing all activities

40-20    of the foundation during the fiscal year.

40-21          (c)  The foundation shall provide fidelity bonds in amounts

40-22    determined by the board for employees or agents who handle funds

40-23    for the foundation.

40-24          (f)  The foundation is a governmental unit under Section

40-25    101.001, Civil Practice and Remedies Code, and is entitled to

 41-1    governmental immunity.  A tort claim against the foundation must be

 41-2    made under Chapter 101, Civil Practice and Remedies Code.

 41-3          SECTION 2.04.  Section 74.111, Agriculture Code, is reenacted

 41-4    to read as follows:

 41-5          Sec. 74.111.  BOARD MEMBER COMPENSATION.  Board members serve

 41-6    without compensation but are entitled to reimbursement for

 41-7    reasonable and necessary expenses incurred in the discharge of

 41-8    their duties.

 41-9          SECTION 2.05.  Subsections (a) through (e), Section 74.112,

41-10    Agriculture Code, are reenacted to read as follows:

41-11          (a)  On the determination by the foundation that the boll

41-12    weevil eradication program has been completed in all eradication

41-13    zones established under this subchapter for boll weevil control and

41-14    the pink bollworm eradication program has been completed in any

41-15    eradication zone established under this chapter for pink bollworm

41-16    control, the foundation shall provide notice of such completion to

41-17    the commissioner along with a request for discontinuance of the

41-18    eradication program and collection of the assessment.  Any such

41-19    request shall include documentation supporting the eradication of

41-20    the boll weevil in all eradication zones established for boll

41-21    weevil eradication or pink bollworm in any eradication zone

41-22    established for pink bollworm eradication and a plan for

41-23    discontinuance of the program and assessment.

41-24          (b)  The commissioner shall determine whether or not the

41-25    further elimination of the boll weevil or pink bollworm is

 42-1    necessary in the eradication zones and approve or disapprove

 42-2    discontinuance of the foundation and the plan for dissolution.

 42-3          (c)  On completion of dissolution, the foundation shall file

 42-4    a final report with the commissioner, including a financial report,

 42-5    and submit all remaining funds into the trust of the commissioner.

 42-6    Final books of the foundation shall be filed with the commissioner

 42-7    and are subject to audit by the department.

 42-8          (d)  The commissioner shall pay from the foundation's

 42-9    remaining funds all of the foundation's outstanding obligations.

42-10          (e)  Funds remaining after payment under Subsection (d) of

42-11    this section shall be returned to contributing cotton growers on a

42-12    pro rata basis.

42-13          SECTION 2.06.  Subsections (b), (e), (g), and (j), Section

42-14    74.114, Agriculture Code,  are reenacted to read as follows:

42-15          (b)  The foundation shall bear all expenses incurred in

42-16    conducting a referendum or board election.

42-17          (e)  An eligible cotton grower may vote only once in a

42-18    referendum or board election.

42-19          (g)  A referendum is approved if:

42-20                (1)  at least two-thirds of those voting vote in favor

42-21    of the referendum; or

42-22                (2)  those voting in favor of the referendum farm more

42-23    than 50 percent, as determined by the commissioner, of the cotton

42-24    acreage in the relevant eradication zone.

42-25          (j)  Individual voter information, including an individual's

 43-1    vote in a referendum or board election conducted under this

 43-2    section, is confidential and is not subject to disclosure under the

 43-3    open records law, Chapter 552, Government Code.

 43-4          SECTION 2.07.  Section 74.118, Agriculture Code, is reenacted

 43-5    to read as follows:

 43-6          Sec. 74.118.  AUTHORITY TO PROHIBIT PLANTING OF COTTON AND

 43-7    REQUIRE PARTICIPATION IN ERADICATION PROGRAM.  (a)  The

 43-8    commissioner may adopt reasonable rules regarding areas where

 43-9    cotton may not be planted in an eradication zone if there is reason

43-10    to believe planting will jeopardize the success of the program or

43-11    present a hazard to public health or safety.

43-12          (b)  The commissioner may adopt rules prohibiting the

43-13    planting of noncommercial cotton in eradication zones and requiring

43-14    that all growers of commercial cotton in an eradication zone

43-15    participate in a boll weevil or pink bollworm eradication program

43-16    that includes cost sharing as required by the rules.

43-17          (c)  Notice of prohibitions and requirements shall be given

43-18    by publication for one day each week for three successive weeks in

43-19    a newspaper having general circulation in the affected area.

43-20          (d)  The commissioner may adopt a reasonable schedule of

43-21    penalty fees to be assessed against growers in a designated

43-22    eradication zone who do not meet the requirements of the rules

43-23    issued by the commissioner relating to reporting of acreage and

43-24    participation in cost sharing.  The penalty fees adopted may not

43-25    exceed $50 per acre.

 44-1          (e)  If a grower fails to meet the requirements of rules

 44-2    adopted by the commissioner, the commissioner may order the

 44-3    destruction of cotton not in compliance with the rules.  Costs

 44-4    incurred by the commissioner in the destruction of cotton may be

 44-5    assessed against the grower.

 44-6          SECTION 2.08.  Section 74.119, Agriculture Code, is reenacted

 44-7    to read as follows:

 44-8          Sec. 74.119.  AUTHORITY FOR DESTRUCTION OR TREATMENT OF

 44-9    COTTON IN ERADICATION ZONES; COMPENSATION PAYABLE.  The department

44-10    may destroy or treat volunteer or other noncommercial cotton and

44-11    establish procedures for the purchase and destruction of commercial

44-12    cotton in eradication zones if the department determines the action

44-13    is necessary to carry out the purposes of this subchapter.  The

44-14    department is not liable to the owner or lessee for the destruction

44-15    of or injury to any cotton that was planted in an eradication zone

44-16    after publication of notice as provided by this subchapter.  The

44-17    foundation is liable for the destruction of cotton if the cotton

44-18    was planted in an eradication zone before publication of the

44-19    notice.

44-20          SECTION 2.09.  Subsection (a), Section 74.120, Agriculture

44-21    Code, is reenacted to read as follows:

44-22          (a)  The commissioner shall adopt rules to protect

44-23    individuals, livestock, wildlife, and honeybee colonies on any

44-24    premises in an eradication zone on which cotton plants are being

44-25    grown that have been or are being treated to eradicate the boll

 45-1    weevil or the pink bollworm.

 45-2          SECTION 2.10.  Section 74.122, Agriculture Code, is reenacted

 45-3    to read as follows:

 45-4          Sec. 74.122.  QUARANTINE.  The department may adopt rules

 45-5    relating to quarantining areas of this state that are infested with

 45-6    the boll weevil or the pink bollworm.  The rules must address the

 45-7    storage of regulated articles and the movement of regulated

 45-8    articles into and out of a quarantined area.  The department may

 45-9    also adopt rules governing the movement of regulated articles from

45-10    other states into this state if the articles are known to be

45-11    infested with the boll weevil or the pink bollworm.

45-12          SECTION 2.11.  Section 74.123, Agriculture Code, is reenacted

45-13    to read as follows:

45-14          Sec. 74.123.  DOCUMENTING REGULATED ARTICLES.  To implement

45-15    this subchapter, the department may issue or authorize issuance of:

45-16                (1)  a certificate that indicates that a regulated

45-17    article is not infested with the boll weevil or the pink bollworm;

45-18    and

45-19                (2)  a permit that provides for the movement of a

45-20    regulated article to a restricted designation for limited handling,

45-21    use, or processing.

45-22          SECTION 2.12.  Subsection (b), Section 74.124, Agriculture

45-23    Code, is reenacted to read as follows:

45-24          (b)  An agreement entered into under this section may provide

45-25    for cost sharing and for division of duties and responsibilities

 46-1    under this subchapter and may include other provisions to carry out

 46-2    the purposes of this subchapter.

 46-3          SECTION 2.13.  Subsections (a) and (b), Section 74.126,

 46-4    Agriculture Code, are reenacted to read as follows:

 46-5          (a)  A person who violates this subchapter or a rule adopted

 46-6    under this subchapter or who alters, forges, counterfeits, or uses

 46-7    without authority a certificate, permit, or other document issued

 46-8    under this subchapter or under a rule adopted under this subchapter

 46-9    commits an offense.

46-10          (b)  An offense under this section is a Class C misdemeanor.

46-11          SECTION 2.14.  Section 74.127, Agriculture Code, is reenacted

46-12    to read as follows:

46-13          Sec. 74.127.  SUNSET PROVISION.  (a)  The board is subject to

46-14    Chapter 325, Government Code (Texas Sunset Act).  Unless continued

46-15    in existence as provided by that chapter, the board is abolished

46-16    and this subchapter expires September 1, 2004.

46-17          (b)  The commissioner may order the dissolution of the

46-18    foundation at any time the commissioner determines that the

46-19    purposes of this subchapter have been fulfilled or that the

46-20    foundation is inoperative and abandoned.  Dissolution shall be

46-21    conducted in accordance with Section 74.112 of this code.

46-22          (c)  If the foundation is abolished or the program

46-23    discontinued for any reason, assessments approved, levied, or

46-24    otherwise collectible on the date of abolishment remain valid as

46-25    necessary to pay the financial obligations of the foundation.

 47-1                                 ARTICLE 3

 47-2          SECTION 3.01.  The importance of this legislation and the

 47-3    crowded condition of the calendars in both houses create an

 47-4    emergency and an imperative public necessity that the

 47-5    constitutional rule requiring bills to be read on three several

 47-6    days in each house be suspended, and this rule is hereby suspended,

 47-7    and that this Act take effect and be in force from and after its

 47-8    passage, and it is so enacted.