On page 1, line 13 of CSHB 7 (Senate committee report) add the
following Article.
ARTICLE ____. PROMOTION PARTNERSHIP BETWEEN THE
TEXAS DEPARTMENT OF AGRICULTURE AND
CERTAIN COMMODITY PRODUCERS BOARDS
SECTION ____.1. Sec. 12.0176, Agriculture Code, is amended
to read as follows:
Sec. 12.0176 Cooperation with Certain Commodity Producers
Boards. Upon activation of a commodity producers board under Ch. 41
of this Code, the department may as resources allow enter into
cooperative agreements with one or more of the boards in order to
increase the effectiveness and efficiency of the promotion of Texas
agricultural products. Such cooperative agreements may include
provisions relating to the programs instituted by the department
under Chs. 12 and 46 of this Code, provisions relating to board
contributions for promotional costs, and any other provisions the
department and the board deem appropriate. Funds contributed by a
board pursuant to an agreement under this section are not state
funds.
SECTION ____.2. Sec. 41.002(1), Agriculture Code, is
amended to read as follows:
(1) "Agricultural commodity" means an agricultural,
horticultural, viticulture, or vegetable product, bees and honey,
planting seed, rice, livestock or livestock product, or poultry or
poultry product, produced in this state, either in its natural
state or as processed by the producer. The term does not include
flax. [or cattle.]
SECTION ____.3. Subchapter H, Agriculture Code, is added to
read as follows:
SUBCHAPTER H. TEXAS BEEF MARKETING, EDUCATION,
RESEARCH AND PROMOTION
SECTION ____.4. Sec. 41.30, Agriculture Code, is added to
read as follows:
Sec. 41.30, Findings and Declaration of Policy
(a) It is hereby found and declared that:
(1) beef and beef products are basic foods that are a
valuable part of the human diet;
(2) the production of beef and beef products plays a
significant role in the state economy, beef and beef products are
produced by thousands of Texas cattle producers and processed by
numerous processing entities in the state, and beef and beef
products are consumed by millions of people throughout the United
States and foreign countries;
(3) beef and beef products should be readily available
and marketed efficiently to ensure that the people of the state
receive adequate nourishment;
(4) the maintenance and expansion of existing markets
for cattle and beef products are vital to the welfare of cattle
producers and those concerned with marketing, using, and producing
beef products, as well as to the general economy of the state;
(5) there exists an established state organization
conducting beef promotion, research, and consumer education
programs that are invaluable to the efforts of promoting the
consumption of beef and beef products.
(6) the department currently oversees the
administration of boards established under the Texas Commodity
Referendum Law, Agriculture Code, Ch. 41, and is the appropriate
entity to provide oversight to a board established under this
subchapter
(b) It is the intent of the Legislature that the promotion,
marketing, research and educational efforts concerning beef and
beef products carried out under this Subchapter utilize existing
cattle industry infrastructure to the extent possible.
(c) The Department may recover costs for administration of
this subchapter.
SECTION ____.5. Sec. 41.31, Agriculture Code, is added to
read as follows:
Sec. 41.31, Conflict with General Commodity Law Provisions.
To the extent that the provisions of this subchapter conflict with
other provisions of this chapter, the provisions of this subchapter
shall prevail.
SECTION ____.6. Sec. 41.32, Agriculture Code, is added to
read as follows:
Sec. 41.32, Designation of Entity to Carry Out Beef
Marketing, Education, Research and Promotion:
(a) The Texas Beef Council, Inc, a Texas non-profit
corporation chartered by the Secretary of State on March 7, 1986,
shall be recognized as the entity to plan, carry out and operate
programs of research, education, promotion and marketing programs,
including providing consumer information and industry information
relating to beef and beef products in this state under the
supervision of the Department as provided by this subchapter.
(b) Members of the board serve without compensation but are
entitled to reimbursement for reasonable and necessary expenses
incurred in the discharge of their duties.
SECTION ____.7. Sec. 41.33, Agriculture Code, is added to
read as follows:
Sec. 41.33 Definitions
In this subchapter:
(1) "beef" means flesh of cattle.
(2) "beef products" means products produced in whole
or in part from beef, exclusive of milk and products made there
from.
(3) "board" means the Board of Directors of the Texas
Beef Council, Inc.
(4) "cattle" means live domesticated bovine animals
regardless of age.
(5) "consumer information" means nutritional data and
other information that will assist consumers and other persons in
making evaluations and decisions regarding the purchasing,
preparing and use of beef and beef products.
(6) "council" means the Texas Beef Council, Inc.
(7) "department" means the Texas Department of
Agriculture.
(8) "commissioner" means the Commissioner of
Agriculture.
(9) "industry information" means information and
programs that will lead to the development of new markets,
marketing strategies, increased efficiency, and activities to
enhance the image of the cattle industry, beef and beef products.
(10) "person" means any individual, group of
individuals, partnership, corporation, association, cooperative or
any other entity.
(11) "producer" means any person who owns or acquires
ownership of cattle except that a person shall not be considered to
be a producer if the person's only share in the proceeds of a sale of
cattle or beef is a sales commission, handling fee, or other service
fee.
(12) "promotion" means any action including paid
advertising to advance the image and desirability of beef and beef
products with the express intent of improving the competitive
position and stimulating sales of beef and beef products in the
market place.
(13) "research" means studies testing the
effectiveness of market development and promotion efforts, studies
relating to the nutritional value of beef and beef products, other
related food science research, and new product development.
SECTION ____.8. Sec. 41.34, Agriculture Code, is added to
read as follows:
Sec. 41.34 Powers of Council and Commissioner
(a) The council may:
(1) conduct programs consistent with the declaration
of policy stated in Section 41.30;
(2) the council may accept gifts, donations, and
grants of money, including appropriated funds, from state
government, federal government, local governments, private
corporations, or other persons, to be used for the purposes of this
subchapter;
(3) borrow money with the approval of the commissioner
as necessary to execute this chapter;
(4) take other action and exercise other authority as
necessary to execute any act authorized by this subchapter or the
Texas Nonprofit Corporation Act (Article 1396-101 et. seq. Vernon's
Texas Civil Statutes; and
(5) form advisory committees composed of individuals
from this state, other states or other countries and change
membership on the committees as necessary.
(b) The commissioner and the State Auditor at any time may
inspect the books and other financial records of the council.
SECTION ____.9. Sec. 41.35, Agriculture Code, is added to
read as follows:
Sec. 41.35 Council Duties
(a) The council shall have an annual independent audit of
the books, records of account and minutes of proceedings maintained
by the council prepared by an independent certified public
accountant or firm of independent certified public accountants.
The audit shall be filed with the council, the commissioner and the
state auditor and shall be made available to the public by the
council or the commissioner. The state auditor may examine any work
papers from the independent audit or may audit the transactions of
the council if the state auditor determines that an additional
audit is necessary.
(b) Not later than the sixtieth day after the last day of the
fiscal year the council shall submit to the commissioner a report
itemizing all income and expenditures and describing all activities
of the council during the preceding fiscal year.
(c) The council shall provide fidelity bonds in amounts
determined by the council for employees or agents who handle funds
for the council.
(d) The council and the board are state agencies for the
following purposes only:
(1) exemption from taxation including exemption from
sales and use taxes, vehicle registration fees, and taxes under
Chapter 152 Tax Code; and
(2) indemnification under Chapter 104 Civil Practice &
Remedies Code.
(e) Funds collected by the council are not state funds and
are not required to be deposited in the state treasury. The council
shall deposit all money collected under this subchapter in a bank or
other depository approved by the commissioner.
(f) The council is a governmental unit under Section
101.001, Civil Practice & Remedies Code and is entitled to
governmental immunity. A tort claim against the council must be
made under Chapter 101 Civil Practice & Remedies Code.
(g) All revenue collected under this subchapter shall be
used solely to finance programs approved by the council and
commissioner as consistent with this subchapter.
(h) A board member may not vote on any matter in which the
member has a direct pecuniary interest.
SECTION ____.10. Sec. 41.36, Agriculture Code, is added to
read as follows:
Sec. 41.36 Council Composition
(a) The board shall be composed of members appointed by the
commissioner under Subsection (b) of this section. The
commissioner shall appoint an initial board composed of 21 members.
(b) In making appointments under this section, the
commissioner shall appoint the following board members, selected
from a variety of cattle-raising regions of the state, for a one
year term:
(1) three (3) representatives of the Texas and
Southwestern Cattle Raisers Association;
(2) three (3) representatives of the Texas Cattle
Feeders Association;
(3) three (3) representatives of the Texas Farm
Bureau;
(4) two (2) representatives of the Independent
Cattleman's Association;
(5) two (2) representatives of Texas purebred cattle
associations, as a group;
(6) two (2) representatives of Texas dairy
associations, as a group;
(7) two (2) representatives of Livestock Marketing
Association of Texas;
(8) one (1) representative of meat packer/exporter
associations, as a group;
(9) one (1) representative of Texas Cattle Women; and
(10) two (2) at-large directors.
(c) A vacancy on the board shall be filled by appointment by
the commissioner for the unexpired term.
SECTION ____.11. Sec. 41.37, Agriculture Code, is added to
read as follows:
Sec. 41.37 Beef Promotion Referendum
(a) The commissioner shall conduct a statewide referendum
to determine whether cattle producers desire to establish a state
beef marketing, education, research, and promotion program. The
initial referendum to establish a state beef promotion program
shall be held concurrently with a referendum to establish a maximum
assessment to be levied on cattle producers to fund the state
program.
(b) Such referendum shall be conducted under the procedures
provided by Section 41.39 of this Code.
(c) A referendum ballot must include or be accompanied by
information about the proposed state program and proposed
assessment including:
(1) a statement of the purpose of the program;
(2) the maximum assessment to be collected under the
program and a description of the manner in which the assessment is
to be collected and the proceeds administered and used;
(3) a general summary of rules adopted by the
commissioner under this subchapter, including a description of:
(A) cattle producer responsibility;
(B) penalties for noncompliance with the rules
adopted under this subchapter and penalties for noncompliance with
the statutory provisions of this subchapter; and
(C) an address and toll free telephone number
that a cattle producer may use to request more information about the
referendum or the program.
(d) The commissioner shall establish, by rule, requirements
for providing notice of the referendum to cattle producers.
SECTION ____.12. Sec. 41.38, Agriculture Code, is added to
read as follows:
Sec. 41.38 Establishment and Collection of Assessment.
(a) The commissioner, on the recommendation of the council,
shall propose the maximum assessment needed to ensure the stability
of the cattle industry by providing adequate funds for marketing,
education, research and promotion of beef and beef products and
shall propose the maximum assessment in a referendum as provided in
Sec. 41.37 of this subchapter.
(b) On the recommendation of the council and with the
commissioner's approval, the council may set the assessment at a
level less than the maximum assessment approved by the referendum.
(c) If an assessment referendum is approved, the council may
collect the assessment.
(d) An assessment levied on cattle producers may be applied
to efforts relating to the marketing, education, research and
promotion of beef and beef products in Texas, the United States and
international markets.
(e) Prior to operations each year the commissioner shall
review and approve the council's operating budget.
SECTION ____.13. Sec. 41.39, Agriculture Code, is added to
read as follows:
Sec. 41.39 Conduct of Referendum; Balloting
(a) On the recommendation of the Council, the commissioner
shall conduct a referendum authorized under this subchapter.
Persons qualified to vote in a referendum are those producers who
have owned cattle within 12 months preceding the referendum.
(b) The council shall bear all expenses incurred in
conducting a referendum.
(c) The commissioner shall adopt rules for voting in a
referendum.
(d) An eligible cattle producer may vote only once in a
referendum.
(e) Each vote is entitled to equal weight regardless of the
volume of production.
(f) Ballots in a referendum shall be mailed directly to a
central location, to be determined by the commissioner. A cattle
producer eligible to vote in a referendum who has not received a
ballot from the commissioner, council or another source, shall be
offered the option of requesting a ballot by mail or obtaining a
ballot at the office of the county agent of the Texas Cooperative
Extension or a government office distributing ballots in a county
where the referendum is conducted.
(g) A referendum is approved if a simple majority of those
voting vote in favor of the referendum.
(h) If a referendum under this subchapter is not approved,
the commissioner may conduct another referendum. A referendum
under this subsection cannot be held before one year after the date
on which the last referendum on the same issue was held.
(i) A public hearing regarding the proposed program,
including information regarding regulations to be promulgated by
the commissioner may be held by the commissioner in each of several
locations within the state.
(j) Individual voter information, including an individual's
vote in a referendum conducted under this section, is confidential
and not subject to disclosure under the Open Records law, Chapter
552 Government Code.
SECTION ____.14. Sec. 41.40, Agriculture Code, is added to
read as follows:
Sec. 41.40 Authority to Adopt Rules
The commissioner may adopt rules as necessary to implement
the provisions of this subchapter.
SECTION ____.15. Sec. 41.41, Agriculture Code, is added to
read as follows:
Sec. 41.41 Penalties
(a) A person who violates this subchapter or a rule adopted
under this subchapter commits an offense.
(b) An offense under this section is a Class C misdemeanor.
(c) If the commissioner determines that a violation of this
subchapter or a rule adopted under this subchapter has occurred,
the commissioner may request that the Attorney General or the
county or district attorney of the county in which the alleged
violation occurred or is occurring file suit for civil injunctive
and/or appropriate relief.
(d) Failure to remit assessment.
(1) The council may investigate conditions that relate
to the prompt remittance of the assessment by any producer or
processor. If the council has probably cause to believe that a
person has failed to collect an assessment or failed to remit to the
council an assessment as required by this chapter, the council may:
(a) independently institute proceedings for
recovery of the amount due to the board or for injunctive or other
appropriate relief;
(b) request the attorney general, or the county
or district attorney having jurisdiction, or both, to institute
proceedings in the board's behalf; or
(c) forward to the department for action under
Section 41.1011 a complaint and any original evidence or other
information establishing probable cause.
(2) Suit under this section may be brought in Travis
County or a county in which the person who is alleged to have failed
to collect or remit an assessment conducts business related to the
commodity subject to the uncollected or unpaid assessment.
(3) The remedies provided by this section are
cumulative of other remedies provided by law.
SECTION ____.16. Sec. 41.42, Agriculture Code, is added to
read as follows:
Sec. 41.42 Annual Report
The council shall issue to the commissioner and the
appropriate oversight committee in the Senate and House of
Representatives an annual report detailing its efforts to carry out
the purposes of this subchapter.
SECTION ____.17. Sec. 41.43, Agriculture Code, is added to
read as follows:
Sec. 41.43 Exemption from Lawsuits, Liability, Taxation and
Legal Process
The Legislature recognizes that the council, acting under the
supervision and control of the commissioner, is carrying out an
important governmental function and that therefore, the council, as
a quasi-governmental entity, must be immune from lawsuits and
liability except to the extent provided in Chapter 101, Civil
Practices & Remedies Code and as provided by this section.
Therefore, no claims may be brought or continued against the
council except claims allowed by Chapter 101, Civil Practice &
Remedies Code. With the exception of finally adjudicating claims
arising from Chapter 101, Civil Practice & Remedies Code, all
payments, contributions, funds and assessments received or held by
the council under this subchapter are exempt from garnishment,
attachment, execution or other seizure and from state and local
taxation, levies, sales and other process and are unassignable.
SECTION ____.18. Sec. 41.44, Agriculture Code, is added to
read as follows:
Sec. 41.44 Producer Refunds
(a) Assessments collected by the council under this
subchapter are subject to Section 41.083 of this Code.
Renumber subsequent Articles appropriately.