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Texas Boll Weevil Eradication Law

 

 

                                       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 which
 2-2     increase market demand; and education of cotton raisers, cotton
 2-3     users, regulators, policymakers, and the general public on the
 2-4     effect of pests on cotton, its utility, its marketing, its yield,
 2-5     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 manage
2-10     eradication and suppression programs and to furnish expertise in
2-11     the field of insect control and eradication, because such an entity
2-12     would enhance the interest and participation of cotton growers in
2-13     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, including pesticides, natural
6-12     predator controls, cultural farming practices, and climatic
6-13     conditions, to prevent unacceptable levels of pest damage by the
6-14     most economical means and with the least possible hazard to people,
6-15     property, and the environment.
6-16                 (12)  "Pink bollworm" has the meaning assigned by
6-17     Section 74.002.
6-18                 (13)  "Regulated article" means an article carrying or
6-19     capable of carrying the boll weevil or pink bollworm, including
6-20     cotton plants, seed cotton, gin trash, other hosts, or mechanical
6-21     cotton harvesters.
6-22                 [(14)  "St. Lawrence Cotton Growers Boll Weevil Control
6-23     Zone" may include, subject to change as provided under this
6-24     subchapter, all or part of Glasscock, Reagan, Upton, south Midland,
6-25     or other counties.]
 7-1                 [(15)  The pink bollworm eradication zone includes
 7-2     Reeves and Pecos counties.]
 7-3           SECTION 1.04.  Subchapter D, Chapter 74, Agriculture Code, is
 7-4     amended by adding Section 74.1021 to read as follows:
 7-5           Sec. 74.1021.  STATUTORY ZONES.  (a)  The Northern High
 7-6     Plains Eradication Zone consists of Armstrong, Bailey, Briscoe,
 7-7     Castro, Deaf Smith, Floyd, Hale, Lamb, Parmer, Randall, and Swisher
 7-8     counties, and other areas as proposed by the commissioner by rule
 7-9     for inclusion in the zone and approved by referendum in the area to
7-10     be added.
7-11           (b)  The Rolling Plains Central Eradication Zone consists of
7-12     Baylor, Callahan, Comanche, Eastland, Erath, Fisher, Haskell,
7-13     Jones, Knox, Mitchell, Nolan, Palo Pinto, Scurry, Shackelford,
7-14     Stephens, Stonewall, Throckmorton, and Young counties; all land in
7-15     Archer County south of a line following Farm-to-Market Road 422
7-16     commencing at the Baylor County line running east to the
7-17     intersection of Farm-to-Market Road 210, continuing east to the
7-18     intersection of State Highway 25, and continuing east to the Clay
7-19     County line; all land in Borden County east of a line seven miles
7-20     west of the Scurry County line running south from the Garza County
7-21     line to the Howard County line; and all land in Taylor County east
7-22     of U.S. Highway 83 from a point commencing at the intersection of
7-23     U.S. Highway 83 and the south Taylor County line, north to the town
7-24     of Bradshaw; thence north of Farm-to-Market Road 1086, as the
7-25     farm-to-market road proceeds west and north to the intersection of
 8-1     the Farm-to-Market Road 1086 and U.S. Highway 277, being all land
 8-2     lying north of the farm-to-market road and west of U.S. Highway 277
 8-3     from the intersection of Farm-to-Market Road 1086 and U.S. Highway
 8-4     277 to the point where U.S. Highway 277 intersects the south
 8-5     boundary line of Taylor County; all land in Brown County east of a
 8-6     line following State Highway 279 to Brownwood and continuing along
 8-7     U.S. Highway 377 south to the McCulloch County line; and other
 8-8     areas as proposed by the commissioner by rule for inclusion in the
 8-9     zone and approved by referendum in the area to be added.
8-10           (c)  The St. Lawrence Eradication Zone consists of that area
8-11     of Midland County south of a line 15 miles south of Interstate 20
8-12     running from the Ector County line east to the Glasscock County
8-13     line; Glasscock, Reagan, and Upton counties; and other areas as
8-14     proposed by the commissioner by rule for inclusion in the zone and
8-15     approved by referendum in the area to be added.
8-16           (d)  The South Texas Winter Garden Eradication Zone consists
8-17     of Aransas, Atascosa, Austin, Bee, Bexar, Brazoria, Calhoun,
8-18     Colorado, DeWitt, Dimmit, Duval, Fort Bend, Frio, Goliad, Jackson,
8-19     Jim Wells, Karnes, Kinney, Kleberg, La Salle, Lavaca, Live Oak,
8-20     Matagorda, McMullen, Medina, Nueces, Refugio, San Patricio, Uvalde,
8-21     Victoria, Wharton, Wilson, and Zavala counties, and other areas as
8-22     proposed by the commissioner by rule for inclusion in the zone and
8-23     approved by referendum in the area to be added.  Austin, Brazoria,
8-24     Colorado, Fort Bend, Jackson, Matagorda, and Wharton counties are
8-25     included in the South Texas Winter Garden Eradication Zone only for
 9-1     purposes of the repayment of debt existing on April 30, 1997, and
 9-2     those counties may not be included in the zone for any other
 9-3     purpose unless the commissioner by rule proposes that an area be
 9-4     included in the zone and the proposal is approved by referendum in
 9-5     the area to be added.  The commissioner may apportion any debt
 9-6     existing on April 30, 1997, and designate the appropriate
 9-7     assessment.
 9-8           (e)  The Southern High Plains-Caprock Eradication Zone
 9-9     consists of Andrews, Cochran, Crosby, Dawson, Dickens, Ector,
9-10     Gaines, Garza, Hockley, Howard, Kent, Lubbock, Lynn, Martin,
9-11     Motley, Terry, and Yoakum counties; all land in Borden County lying
9-12     west of a line seven miles west of the Scurry County line running
9-13     south from the Garza County line to the Howard County line; that
9-14     area of Midland County north of a line 15 miles south of Interstate
9-15     20 running from the Ector County line east to the Glasscock County
9-16     line; and other areas as proposed by the commissioner by rule for
9-17     inclusion in the zone and approved by referendum in the area to be
9-18     added.
9-19           (f)  The Southern Rolling Plains Eradication Zone consists of
9-20     Coke, Coleman, Concho, Irion, McCulloch, Runnels, Schleicher, and
9-21     Tom Green counties, all land in Taylor County lying west of U.S.
9-22     Highway 83 from a point commencing at the intersection of U.S.
9-23     Highway 83 and the south Taylor County line, north of the town of
9-24     Bradshaw; thence all the land lying south of Farm-to-Market Road
9-25     1086, as the farm-to-market road proceeds west and north to its
 10-1    intersection with U.S. Highway 277, being all land lying south of
 10-2    the farm-to-market road and east of U.S. Highway 277 from the
 10-3    intersection of Farm-to-Market Road 1086 and U.S. Highway 277 to
 10-4    the point where U.S. Highway 277 intersects the south boundary line
 10-5    of Taylor County, and other areas as proposed by the commissioner
 10-6    by rule for inclusion in the zone and approved by referendum in the
 10-7    area to be added.
 10-8          SECTION 1.05.  Subchapter D, Chapter 74, is amended by adding
 10-9    Sections 74.1041 and 74.1042 to read as follows:
10-10          Sec. 74.1041.  INTERIM ADVISORY GROUPS.  (a)  The
10-11    commissioner may designate an interim advisory group for each
10-12    geographic statutory zone or region of the state that is to be
10-13    considered by the commissioner for inclusion in an eradication
10-14    zone.  The groups shall gather advice, input, and guidance from
10-15    cotton growers from each area of the state concerning the interest
10-16    in and concerns about the implementation of this subchapter.
10-17          (b)  Each interim advisory group shall consider and make
10-18    recommendations to the commissioner concerning:
10-19                (1)  the geographic boundaries for the proposed
10-20    eradication zone;
10-21                (2)  the amount of local interest in operating an
10-22    eradication program;
10-23                (3)  the basis and amount of an assessment necessary to
10-24    support an eradication program;
10-25                (4)  the need to restructure any pre-existing debt from
 11-1    prior eradication activities;
 11-2                (5)  crediting a cotton grower's 1996 assessment
 11-3    payments to any future assessment; and
 11-4                (6)  any other matter requested by the commissioner.
 11-5          (c)  Each interim advisory group shall include at least one
 11-6    cotton grower from each county in the zone and other persons as
 11-7    determined by the commissioner.
 11-8          Sec. 74.1042.  CREATION OF NONSTATUTORY ERADICATION ZONES.
 11-9    (a)  The commissioner may by rule designate an area of the state as
11-10    a proposed eradication zone as long as the area is not within a
11-11    statutory zone under Section 74.1021 that has approved an
11-12    eradication program by referendum.
11-13          (b)  The commissioner may hold a public hearing within the
11-14    proposed eradication zone to discuss the proposed geographic
11-15    boundaries of the zone.  The public hearing may include any other
11-16    topics allowed under this subchapter.
11-17          (c)  After the adoption of a rule under Subsection (a), the
11-18    commissioner shall conduct a referendum under Section 74.105.
11-19          SECTION 1.06.  Subsections (a), (d), (e), and (f), Section
11-20    74.105, Agriculture Code, are amended to read as follows:
11-21          (a)  The commissioner [organization certified under Section
11-22    74.104 of this code or the foundation] shall conduct a referendum
11-23    in each proposed eradication zone to determine whether cotton
11-24    growers desire to establish an [official boll weevil or pink
11-25    bollworm] eradication zone.
 12-1          (d)  If a referendum to establish an eradication zone fails,
 12-2    the concurrent election of a board member [members] from the
 12-3    proposed eradication zone under Section 74.106 [of this code] has
 12-4    no effect, and the commissioner shall appoint a representative to
 12-5    the board from the area.
 12-6          (e)  The [organization certified under Section 74.104 of this
 12-7    code or the] foundation[, as appropriate,] may request the
 12-8    commissioner to call additional referenda in a proposed eradication
 12-9    zone in which a referendum has failed.  An additional eradication
12-10    zone referendum and concurrent board election may be held no
12-11    earlier than one year [the 121st day] after the date of the last
12-12    referendum.
12-13          (f)  After the passage of any referendum, the eligible voters
12-14    shall be allowed, by subsequent referenda [periodically as
12-15    specified in the initial referendum], to vote on whether to
12-16    continue their assessments.  All of the requirements for an initial
12-17    referendum must be met in subsequent referenda.
12-18          SECTION 1.07.  Section 74.106, Agriculture Code, is amended
12-19    by amending Subsections (a), (c), and (d) and adding Subsection (h)
12-20    to read as follows:
12-21          (a)  The initial election for board members from a proposed
12-22    eradication zone shall be held concurrently with an eradication
12-23    zone referendum held under Section 74.105 [of this code].  Each
12-24    eradication zone shall be represented on the board and shall remain
12-25    represented on the board until eradication operations are concluded
 13-1    and all debt of the eradication zone is paid.
 13-2          (c)  A cotton grower who is eligible to vote in a referendum
 13-3    or election under this subchapter is eligible to be a candidate for
 13-4    and member of the board if the person has at least seven years of
 13-5    experience as a cotton grower and otherwise meets the
 13-6    qualifications for the position.
 13-7          (d)  A cotton grower who wants to be a candidate for the
 13-8    board must meet the qualifications for board membership and file an
 13-9    application with the [secretary of the foundation or, before
13-10    certification of the organization under Section 74.104 of this
13-11    code, the] commissioner.  The application must be:
13-12                (1)  filed not later than the 30th day before the date
13-13    set for the board election;
13-14                (2)  on a form approved by the commissioner; and
13-15                (3)  signed by at least 10 cotton growers who are
13-16    eligible to vote in the board election.
13-17          (h)  Each board member shall be sworn into office by a
13-18    representative of the commissioner by taking the oath of office
13-19    required for elected officers of the state.
13-20          SECTION 1.08.  Section 74.107, Agriculture Code, is amended
13-21    to read as follows:
13-22          Sec. 74.107.  COMPOSITION OF BOARD.  (a)  The board shall be
13-23    composed of members elected from each statutory eradication zone
13-24    established and validated by referendum, members elected from each
13-25    nonstatutory eradication zone established by referendum, members
 14-1    appointed by the commissioner from other cotton-growing areas of
 14-2    the state, and members appointed by the commissioner under
 14-3    Subsection (b).  The commissioner shall appoint an initial board
 14-4    composed of 15 members.  Except as provided by Subsection (b), the
 14-5    term of each board position may not exceed four years [High Plains
 14-6    Boll Weevil Suppression Program Area and the St. Lawrence Cotton
 14-7    Growers Boll Weevil Control Zone are separate zones for the
 14-8    purposes of boll weevil eradication;  however, an area in the St.
 14-9    Lawrence Cotton Growers Boll Weevil Control Zone may be assigned to
14-10    another zone as provided by this subchapter].
14-11          (b)  In making appointments under this section, the
14-12    commissioner shall appoint the following board members, selected
14-13    from a variety of cotton-growing regions of the state, for
14-14    four-year terms:
14-15                (1)  an agricultural lender;
14-16                (2)  an independent entomologist who is an integrated
14-17    pest management specialist;
14-18                (3)  two representatives from industries allied with
14-19    cotton production; and
14-20                (4)  a representative from the pest control industry.
14-21          (c)  The commissioner [board, with the commissioner's
14-22    approval,] may change the number of board positions or the
14-23    eradication zone representation on the board to accommodate changes
14-24    in the number of eradication zones.  A change under this subsection
14-25    may not contravene another provision of this subchapter.
 15-1          (d)  A vacancy on the board shall be filled by appointment by
 15-2    the commissioner for the unexpired term.
 15-3          (e)  On 30 days' notice and opportunity for hearing, the
 15-4    commissioner may replace any unelected board member of the
 15-5    foundation.
 15-6          SECTION 1.09.  Section 74.108, Agriculture Code, is amended
 15-7    to read as follows:
 15-8          Sec. 74.108.  [BOARD] POWERS OF BOARD AND COMMISSIONER.
 15-9    (a)  The board may:
15-10                (1)  [conduct board elections;]
15-11                [(2)  conduct eradication zone referenda;]
15-12                [(3)  conduct assessment referenda under Section 74.113
15-13    of this code;]
15-14                [(4)]  conduct programs consistent with the declaration
15-15    of policy stated in Section 74.101 [of this code];
15-16                (2) [(5)]  accept, as necessary to implement this
15-17    chapter, gifts and grants;
15-18                (3) [(6)]  borrow money, with the approval of the
15-19    commissioner, as necessary to execute this chapter;
15-20                (4) [(7)]  take other action and exercise other
15-21    authority as necessary to execute any act authorized by this
15-22    subchapter or the Texas Non-Profit Corporation Act (Article
15-23    1396-1.01 et seq., Vernon's Texas Civil Statutes); and
15-24                (5) [(8)]  form an advisory committee composed of
15-25    individuals from this state, other states, or other countries and
 16-1    change membership on the committee, as necessary.  Any advisory
 16-2    committee created under this subdivision for the purpose of
 16-3    establishing treatment methods shall include among its members
 16-4    persons with knowledge of the effects of different treatments on
 16-5    the health of agricultural workers, the local population, and the
 16-6    ecosystem, including but not limited to the effects of a particular
 16-7    method of treatment on beneficial organisms and wildlife, the
 16-8    potential for secondary infestations from nontarget pests, and the
 16-9    potential for pest resistance to particular methods of treatment.
16-10          (b)  On petition of 30 percent of the cotton growers eligible
16-11    to vote within the proposed area, the commissioner may, or at the
16-12    commissioner's discretion, the commissioner [The board] may, by
16-13    rule add an area to an eradication zone or transfer an area or
16-14    county from one statutory zone to another zone if:
16-15                (1)  cotton production has begun or could begin
16-16    [begins] in the area;
16-17                (2)  the area is adjacent to an eradication zone or is
16-18    in an area with biological characteristics similar to the
16-19    eradication zone; and
16-20                (3)  the addition is approved in a referendum held in
16-21    the area.
16-22          (c)  The board must adopt a procurement policy, subject to
16-23    approval by the commissioner, outlining the procedures to be used
16-24    in purchasing [may initiate the boll weevil eradication program in
16-25    an area added to an eradication zone and may assess cotton growers
 17-1    in the area added to the eradication zone to ensure the integrity
 17-2    and success of the eradication program.  The board shall provide
 17-3    notice of intent to initiate eradication and collect assessments
 17-4    through informational meetings in the affected area not later than
 17-5    60 days before the date recognized by the board as the average
 17-6    planting date for the area].
 17-7          [(d)  The board may not reduce the area of the High Plains
 17-8    Boll Weevil Suppression Program Area.]
 17-9          SECTION 1.10.  Section 74.109, Agriculture Code, is amended
17-10    by amending Subsections (a), (d), (e), (g), and (h) and adding
17-11    Subsections (i) and (j) to read as follows:
17-12          (a)  The board shall have [make available for inspection at]
17-13    an annual independent audit of the [all] books, records of account,
17-14    and minutes of proceedings maintained by the foundation prepared by
17-15    an independent certified public accountant or a firm of independent
17-16    certified public accountants.  The audit shall include information
17-17    for each zone in which an eradication program has been conducted
17-18    under this subchapter.  The audit shall be filed with the board,
17-19    the commissioner, and the state auditor and shall be made available
17-20    to the public by the foundation or the commissioner.  The state
17-21    auditor may examine any work papers from the independent audit or
17-22    may audit the transactions of the foundation if the state auditor
17-23    determines that an audit is necessary.
17-24          (d)  The foundation and the board are state agencies for the
17-25    following purposes only:
 18-1                (1)  exemption from taxation including exemption from
 18-2    sales and use taxes, vehicle registration fees, and taxes under
 18-3    Chapter 152, Tax Code; and
 18-4                (2)  indemnification under Chapter 104, Civil Practice
 18-5    and Remedies Code.
 18-6          (e)  Funds collected by the foundation are not state funds
 18-7    and are not required to be deposited in the state treasury.  The
 18-8    foundation shall deposit all money collected under this subchapter
 18-9    in a bank or other depository approved by the commissioner [board].
18-10          (g)  The board shall collect data on the type and quantity of
18-11    pesticides used in accordance with this subchapter.  The data shall
18-12    be filed with the commissioner.
18-13          (h)  All revenue collected under this subchapter shall be
18-14    used solely to finance programs approved by the commissioner as
18-15    consistent with this subchapter [and applicable provisions of the
18-16    constitution].
18-17          (i)  The foundation is subject to the requirements of:
18-18                (1)  the open meetings law, Chapter 551, Government
18-19    Code; and
18-20                (2)  the open records law, Chapter 552, Government
18-21    Code.
18-22          (j)  A board member may not vote on any matter in which the
18-23    member has a direct pecuniary interest.  A board member is subject
18-24    to the same restrictions as a local public official under Chapter
18-25    171, Local Government Code.
 19-1          SECTION 1.11.  Subchapter D, Chapter 74, Agriculture Code, is
 19-2    amended by adding Section 74.1095 to read as follows:
 19-3          Sec. 74.1095.  ADMINISTRATIVE REVIEW.  (a)  The commissioner
 19-4    by rule shall establish procedures for the informal review and
 19-5    resolution of a claim arising out of certain acts taken by the
 19-6    foundation under this subchapter.  Rules established under this
 19-7    section shall include a designation of the acts that are subject to
 19-8    review under this subsection and the appropriate remedial action,
 19-9    as authorized by this subchapter.
19-10          (b)  A person dissatisfied with the department's informal
19-11    resolution of a claim under procedures adopted under Subsection (a)
19-12    may appeal the department's decision to the commissioner.
19-13          (c)  A decision issued by the commissioner on a claim
19-14    appealed under Subsection (b) is the final administrative action of
19-15    the department and is subject to judicial review under Chapter
19-16    2001, Government Code.
19-17          (d)  This section does not constitute a waiver of the state's
19-18    immunity from liability.
19-19          SECTION 1.12.  Section 74.110, Agriculture Code, is amended
19-20    to read as follows:
19-21          Sec. 74.110.  LIABILITY OF FOUNDATION MEMBERS, OFFICERS, AND
19-22    EMPLOYEES.  (a)  Except for instances of gross negligence,
19-23    individual criminal actions, or acts of dishonesty, [the
19-24    foundation,] the foundation's members, directors, officers, and
19-25    employees are not individually liable to a cotton grower or other
 20-1    person for:
 20-2                (1)  errors in judgment;
 20-3                (2)  mistakes; or
 20-4                (3)  other acts or omissions.
 20-5          (b)  A foundation member, officer, or employee is not
 20-6    individually liable for an act or omission of another foundation
 20-7    member, officer, or employee.
 20-8          SECTION 1.13.  Subchapter D, Chapter 74, Agriculture Code, is
 20-9    amended by adding Section 74.1101 to read as follows:
20-10          Sec. 74.1101.  LIABILITY OF APPLICATORS.  (a)  In this
20-11    section, "applicator" means an individual or other person that is
20-12    not a member, director, officer, or employee of the foundation and
20-13    that contracts with the foundation to apply pesticides or other
20-14    chemicals using aircraft or other equipment to further or support
20-15    the eradication or diapause efforts undertaken under this
20-16    subchapter.
20-17          (b)  An applicator is not jointly and severally liable for
20-18    any act or omission of the foundation under this subchapter
20-19    provided that the foundation maintains the liability coverage
20-20    required under Subsection (c).
20-21          (c)  The foundation shall have liability coverage in effect
20-22    for any eradication or diapause efforts for which it uses
20-23    applicators. The coverage shall apply to acts and omissions of the
20-24    foundation and volunteers and be in the amount of at least $500,000
20-25    for each single occurrence of death, bodily injury, or property
 21-1    damage.
 21-2          (d)  The commissioner may provide that the foundation include
 21-3    an applicator as an additional named insured in any policy of
 21-4    insurance required under Subsection (c).
 21-5          (e)  This section expires September 1, 1999.
 21-6          SECTION 1.14.  Subsections (f), (g), (h), and (i), Section
 21-7    74.112, Agriculture Code, are amended to read as follows:
 21-8          (f)  If 30 [40] percent or more of the cotton growers
 21-9    eligible to vote [producers] within a zone participating in the
21-10    program present to the commissioner [foundation] a petition calling
21-11    for a referendum of the qualified voters on the proposition of
21-12    discontinuing the program, the commissioner [board] shall conduct a
21-13    referendum for that purpose.
21-14          (g)  The commissioner [board] shall give notice of the
21-15    referendum, the referendum shall be conducted, and the results
21-16    shall be declared in the manner provided by law for the original
21-17    referendum and election, with any necessary exceptions provided by
21-18    rule of the commissioner.
21-19          (h)  The commissioner [board] shall conduct the referendum
21-20    within 90 days of the date of filing of the petition, except that
21-21    no such referendum may be held within two years of any other
21-22    referendum in the eradication zone pertaining to establishing or
21-23    discontinuing the eradication zone.
21-24          (i)  Approval of the proposition is by the same vote as
21-25    required in a referendum under Section 74.114(g) [majority vote of
 22-1    those voting].  If the proposition is approved, the eradication
 22-2    program is abolished and the eradication zone ceases to exist on
 22-3    payment of all debts of the eradication zone.
 22-4          SECTION 1.15.  Section 74.113, Agriculture Code, is amended
 22-5    to read as follows:
 22-6          Sec. 74.113.  ASSESSMENT REFERENDA.  (a)  The commissioner
 22-7    [foundation] shall propose [determine] the assessment needed in
 22-8    each eradication zone to ensure the stability of the cotton
 22-9    industry by eradicating the public nuisance caused by the boll
22-10    weevil and the pink bollworm [accomplish the following goal:  to
22-11    finance programs of marketing, promotion, research, and education
22-12    calculated to increase the production and use of cotton].
22-13          (b)  The commissioner [foundation] shall propose in a
22-14    referendum the:
22-15                (1)  maximum assessment to be paid by cotton growers
22-16    having production in the eradication zone; and
22-17                (2)  time for which the assessment will be made.
22-18          (c)  With the commissioner's approval, the [The] foundation
22-19    may make an assessment in an eradication zone at a level less than
22-20    the assessment approved by the referendum.
22-21          (d)  The commissioner [foundation] shall conduct an
22-22    assessment referendum under the procedures provided by Section
22-23    74.114 [of this code].
22-24          (e)  If an assessment referendum is approved, the foundation
22-25    may collect the assessment.
 23-1          (f)  An assessment levied on cotton growers in an eradication
 23-2    zone may be applied only to:
 23-3                (1)  eradication in that zone;
 23-4                (2)  the foundation's operating costs, including
 23-5    payments on debt incurred for a foundation activity, except that
 23-6    the funds of one zone may not be used to pay another zone's bank
 23-7    loans or debts; and
 23-8                (3)  the conducting of other programs consistent with
 23-9    the declaration of policy stated in Section 74.101 [of this code].
23-10          (g)  The assessment shall be adequate and necessary to
23-11    achieve the goals of this subchapter.  The amount of the assessment
23-12    shall be determined by criteria established by the commissioner,
23-13    including:
23-14                (1)  the extent of infestation;
23-15                (2)  the amount of acreage planted;
23-16                (3)  historical efforts to eradicate;
23-17                (4)  the growing season;
23-18                (5)  epidemiology;
23-19                (6)  historical weather conditions; and
23-20                (7)  the costs and financing of the program.
23-21          (h)  The commissioner shall give notice of and hold a public
23-22    hearing within the eradication zone regarding the proposed
23-23    assessment referendum.  Before the referendum, the commissioner
23-24    shall review and approve:
23-25                (1)  the amount of the assessment;
 24-1                (2)  the basis for the assessment;
 24-2                (3)  the time for payment of the assessment;
 24-3                (4)  the method of allocation of the assessment among
 24-4    cotton growers;
 24-5                (5)  the restructuring and repayment schedule for any
 24-6    pre-existing debt; and
 24-7                (6)  the amount of debt to be incurred in the
 24-8    eradication zone.
 24-9          (i)  The commissioner shall on a zone-by-zone basis set the
24-10    date on which assessments are due and payable.
24-11          (j)  Each year, the commissioner shall review and approve the
24-12    foundation's operating budget.
24-13          (k)  The foundation shall prepare and mail billing statements
24-14    to each cotton grower subject to the assessment that state the
24-15    amount due and the due date.  The assessments shall be remitted to
24-16    the foundation.
24-17          SECTION 1.16.  Subsections (a), (c), (d), (f), (h), and (i),
24-18    Section 74.114, Agriculture Code, are amended to read as follows:
24-19          (a)  The commissioner [foundation] shall conduct a referendum
24-20    or board election authorized under this subchapter [its
24-21    jurisdiction].  At the end of each four-year period in which an
24-22    eradication program has been operational in a zone, the
24-23    commissioner shall hold a referendum in the zone on the
24-24    continuation of the eradication program.  The referendum shall be
24-25    held at the same time as the election of a board member from the
 25-1    zone.  Approval of the referendum on continuation is by a majority
 25-2    of those voting in the referendum.
 25-3          (c)  The commissioner shall adopt rules for voting in [the
 25-4    initial] board elections [election] and [initial] referenda to
 25-5    establish or continue eradication zones.  [The board shall adopt
 25-6    rules for voting in other referenda and board elections.]  Rules
 25-7    adopted under this subsection must include provisions for
 25-8    determining:
 25-9                (1)  who is a cotton grower eligible to vote in an
25-10    election or referendum;
25-11                (2)  whether a board member is elected by a plurality
25-12    or a majority of the votes cast; and
25-13                (3)  the area from which each board member is elected.
25-14          (d)  A cotton grower having cotton production in a proposed
25-15    or established eradication zone is entitled to:
25-16                (1)  vote in a referendum concerning the eradication
25-17    zone; and
25-18                (2)  elect board members to represent the eradication
25-19    zone.
25-20          (f)  Ballots in a referendum or board election shall be
25-21    mailed directly to a central location, to be [initially] determined
25-22    by the commissioner [and later determined by the board].  A cotton
25-23    grower eligible to vote in a referendum or board election who has
25-24    not received a ballot from the commissioner, foundation, or another
25-25    source shall be offered the option of requesting a ballot by mail
 26-1    or obtaining a ballot at the office of the county agent of the
 26-2    Texas Agricultural Extension Service or a government office
 26-3    distributing ballots in a county in the proposed or established
 26-4    zone in which the referendum or board election is conducted.
 26-5          (h)  If a referendum under this subchapter is not approved,
 26-6    the [foundation may with the approval of the] commissioner may
 26-7    conduct another referendum.  A referendum under this subsection may
 26-8    not be held before one year [the 121st day] after the date on which
 26-9    the last referendum on the same issue was held.
26-10          (i)  A public hearing regarding the proposed eradication
26-11    program, including information regarding regulations to be
26-12    promulgated by the [foundation and the] commissioner, may [shall]
26-13    be held by the commissioner [foundation] in each of several
26-14    locations within each boll weevil or pink bollworm eradication
26-15    zone.  The area posted for each hearing shall include no more than
26-16    six contiguous counties that have cotton production at the time of
26-17    the hearing.
26-18          SECTION 1.17.  Section 74.115, Agriculture Code, is amended
26-19    to read as follows:
26-20          Sec. 74.115.  FAILURE TO PAY ASSESSMENTS.  (a)  A cotton
26-21    grower who fails to pay an assessment levied under this subchapter
26-22    when due may be subject, after reasonable notice and opportunity
26-23    for hearing, to a penalty set by the commissioner [board].  In
26-24    determining the amount of the penalty to be assessed, the
26-25    commissioner shall consider:
 27-1                (1)  the seriousness of the violation, including the
 27-2    nature, circumstances, and extent of the violation;
 27-3                (2)  the history of previous violations;
 27-4                (3)  the amount necessary to deter future violations;
 27-5                (4)  the economic situation of the cotton grower; and
 27-6                (5)  any other matter that justice may require.
 27-7          (b)  [A cotton grower who fails to pay all assessments and
 27-8    penalties before the 10th day after receiving notice of the
 27-9    delinquency shall destroy any cotton growing on the grower's
27-10    acreage that is subject to the assessment.  Cotton plants that are
27-11    not destroyed are a public nuisance, and, on recommendation of the
27-12    foundation, the department shall follow the procedures for
27-13    destruction of host plants provided by Subchapters A and B of this
27-14    chapter, including procedures for reimbursement by the grower of
27-15    costs required for destruction.  The department may apply to a
27-16    district court with jurisdiction in the county in which the public
27-17    nuisance is located to have the nuisance condemned and destroyed.
27-18    Injunctive relief available to the department under this subchapter
27-19    is in addition to any other legal remedy available to the
27-20    department.  The department is not required to file a bond in a
27-21    proceeding under this subsection.]
27-22          [(c)]  In addition to any other remedies for the collection
27-23    of assessments and penalties, the department may place and perfect
27-24    an assessment [a] lien on cotton produced and harvested that year
27-25    from the acreage that is subject to the assessment that is due and
 28-1    unpaid.  A buyer of cotton takes free of the assessment lien if the
 28-2    buyer has not received written or actual notice of the assessment
 28-3    lien [from the department] or if the buyer has paid for the cotton
 28-4    by a check on which the department is named as a joint payee.  In
 28-5    an action to enforce the assessment lien, the burden is on the
 28-6    department to prove that the buyer of cotton received written or
 28-7    actual notice of the assessment lien.  A buyer of cotton other than
 28-8    a person buying cotton from the cotton grower takes free of the
 28-9    assessment lien.
28-10          SECTION 1.18.  Section 74.116, Agriculture Code, is amended
28-11    to read as follows:
28-12          Sec. 74.116.  EXEMPTION FROM ASSESSMENT PENALTIES.  (a)  The
28-13    commissioner by rule shall adopt criteria for exemption from
28-14    payment of assessment penalties under Section 74.115 of this code a
28-15    cotton grower for whom payment would impose an undue financial
28-16    burden.
28-17          (b)  A cotton grower may not qualify for an exemption under
28-18    this section for a year in which the amount computed by subtracting
28-19    the assessments and penalties due under this subchapter from the
28-20    cotton grower's net income subject to federal income taxation in
28-21    the previous year is greater than $15,000.
28-22          (c)  A cotton grower who applies for an exemption under this
28-23    section must use a form prescribed by the commissioner.  A cotton
28-24    grower must file a separate application form for each year for
28-25    which the cotton grower claims an exemption.
 29-1          (d)  The [commissioner shall forward to the foundation a
 29-2    completed exemption application form.  The foundation shall
 29-3    determine whether the applicant qualifies for an exemption and
 29-4    shall notify the commissioner of its determination.]
 29-5          [(e)  On notification by the foundation that a cotton grower
 29-6    qualifies for an exemption, the commissioner shall exempt the
 29-7    cotton grower from payment of an assessment penalty under Section
 29-8    74.115 of this code.]
 29-9          [(f)  On the foundation's recommendation, the] commissioner
29-10    may establish a payment plan for a cotton grower applying for an
29-11    exemption under this section.
29-12          (e) [(g)]  The commissioner shall promptly notify an
29-13    applicant of the [foundation's] determination regarding the
29-14    applicant's request for an exemption.
29-15          (f) [(h)]  If an exemption under this section is denied,
29-16    assessments and penalties for the year for which the application is
29-17    made are due on the later of:
29-18                (1)  the date on which they would be due in the absence
29-19    of an application for exemption; or
29-20                (2)  30 days after the date the applicant receives
29-21    notice of the denial.
29-22          (g)  In addition to the authority provided under Subsections
29-23    (a)-(f), the commissioner may reduce or waive assessment penalties
29-24    as appropriate and necessary.
29-25          SECTION 1.19.  Section 74.117, Agriculture Code, is amended
 30-1    to read as follows:
 30-2          Sec. 74.117.  ENTRY OF PREMISES; ERADICATION ACTIVITIES;
 30-3    INSPECTIONS.  The department, the foundation, or a designated
 30-4    representative of either entity may enter cotton fields or other
 30-5    premises to carry out the purposes of this subchapter and
 30-6    Subchapters A and B of this chapter, which include the treatment
 30-7    and[,] monitoring[, and destruction] of growing cotton or other
 30-8    host plants.  The department, the foundation, or a designated
 30-9    representative of either entity may inspect fields or premises in
30-10    this state for the purpose of determining whether the property is
30-11    infested with the boll weevil or the pink bollworm.  An inspection
30-12    must be conducted during reasonable daylight hours.  The department
30-13    shall give notice by publication of the planned schedule of dates
30-14    for entry by the department, the foundation, or a designated
30-15    representative of either entity, to the fields or premises to carry
30-16    out the purposes of this subchapter, including treatment,
30-17    monitoring, or inspection functions.  The department shall publish
30-18    notice of the planned schedule to enter the fields or premises in a
30-19    newspaper of general circulation in the eradication zone not less
30-20    than once a week for two weeks immediately before the scheduled
30-21    dates of entry.  In addition to the notice published by the
30-22    department, the foundation shall post notice of the planned
30-23    schedule to enter fields or premises to carry out the purposes of
30-24    this subchapter at the county courthouse of each county in the
30-25    eradication zone not less than 15 days before the planned dates of
 31-1    entry.
 31-2          SECTION 1.20.  Subsections (b), (c), and (d), Section 74.120,
 31-3    Agriculture Code, are amended to read as follows:
 31-4          (b)  Rules adopted under this section shall establish the
 31-5    criteria by which the foundation develops its [rules,]
 31-6    procedures[,] and methods of treatment, which shall [rules]:
 31-7                (1)  establish a methodology for determining when boll
 31-8    weevil or pink bollworm population levels have reached economic
 31-9    significance;
31-10                (2)  establish an effective treatment regimen that
31-11    seeks to provide the least possible risk to workers, the public,
31-12    and the environment;
31-13                (3)  minimize the effects of the use of pesticides on
31-14    long-term control methods, including but not limited to the effect
31-15    a particular pesticide may have on biological controls;
31-16                (4)  establish methods for monitoring boll weevils,
31-17    pink bollworms, and secondary pests;
31-18                (5)  establish methods for verifying pesticide use
31-19    reduction; and
31-20                (6)  consider the acute and chronic toxicity of
31-21    particular pesticides and the quantity of particular pesticides
31-22    needed.  Eradication zone treatment plans may take into account the
31-23    potential for the use of smaller quantities of more toxic
31-24    substances to result in fewer health and environmental risks than
31-25    larger quantities of less toxic substances.
 32-1          (c)  The commissioner [foundation and the department] may
 32-2    adopt other reasonable rules necessary to carry out the purposes of
 32-3    this subchapter and Subchapters A and B of this chapter.   All
 32-4    rules issued under this subchapter must be adopted and published in
 32-5    accordance with state requirements.  [Rules adopted by the
 32-6    foundation under this section shall be consistent with rules
 32-7    adopted by the commissioner under this subchapter.]
 32-8          (d)  An advisory committee may [shall] be established to
 32-9    assist the commissioner in the development of rules adopted under
32-10    this section.  The advisory committee may [shall] be composed of:
32-11                (1)  three cotton growers [producers] from different
32-12    regions of the state, appointed by the commissioner;
32-13                (2)  three entomologists with knowledge of the
32-14    principles of integrated pest management, at least one of whom has
32-15    special knowledge of nonchemical or biological pest control,
32-16    appointed by the commissioner;
32-17                (3)  two individuals with experience representing the
32-18    general interests of the environment, appointed by the chair of the
32-19    Texas Natural Resource Conservation Commission;
32-20                (4)  an environmental engineer with expert knowledge of
32-21    ground and surface water protection from contamination, appointed
32-22    by the chair of the Texas Natural Resource Conservation Commission;
32-23                (5)  a toxicologist, appointed by the Commissioner of
32-24    Health; and
32-25                (6)  an individual with experience representing the
 33-1    general interests of consumers and an individual with experience
 33-2    representing the general interests of agricultural workers,
 33-3    appointed by the governor.
 33-4          SECTION 1.21.  Section 74.121, Agriculture Code, is amended
 33-5    to read as follows:
 33-6          Sec. 74.121.  REPORTS.  Each person in an active eradication
 33-7    zone growing cotton in this state shall furnish to the foundation
 33-8    on forms supplied by the foundation information that the foundation
 33-9    requires concerning the size and location of all commercial cotton
33-10    fields and of noncommercial patches of cotton grown for ornamental
33-11    or other purposes.  The foundation may provide an incentive for
33-12    early and timely reporting.
33-13          SECTION 1.22.  Section 74.124, Agriculture Code, is amended
33-14    by amending Subsection (a) and adding Subsection (c) to read as
33-15    follows:
33-16          (a)  The foundation may carry out programs to destroy and
33-17    eliminate the boll weevil and the pink bollworm in this state by
33-18    cooperating through written agreements, as approved by the
33-19    commissioner, with:
33-20                (1)  an agency of the federal government;
33-21                (2)  a state agency;
33-22                (3)  an appropriate agency of a foreign country
33-23    contiguous to the affected area to the extent allowed by federal
33-24    law;
33-25                (4)  a person who is engaged in growing, processing,
 34-1    marketing, or handling cotton; or
 34-2                (5)  a group of persons in this state involved in
 34-3    similar programs to carry out the purposes of this subchapter.
 34-4          (c)  Agreements under Subsections (a)(4)-(5) must be approved
 34-5    in each referendum required under this subchapter other than a
 34-6    referendum to discontinue an eradication program.  The agreements
 34-7    must be approved by the same margin as required in the retention
 34-8    referendum.
 34-9          SECTION 1.23.  Section 74.125, Agriculture Code, is amended
34-10    to read as follows:
34-11          Sec. 74.125.  ORGANIC COTTON GROWERS [PRODUCERS].  (a)  The
34-12    [board, in cooperation with the] commissioner[,] shall develop
34-13    rules and procedures to:
34-14                (1)  protect the eligibility of organic cotton growers
34-15    [producers] to be certified by the commissioner;
34-16                (2)  ensure that organic and transitional certification
34-17    by the commissioner continue to meet national certification
34-18    standards in order for organic cotton to maintain international
34-19    marketability; and
34-20                (3)  in all events maintain the effectiveness of the
34-21    boll weevil or pink bollworm eradication program administered under
34-22    this subchapter.
34-23          (b)  The board may not treat or require treatment of organic
34-24    cotton fields with chemicals that are not approved for use on
34-25    certified organic cotton.  Plow-up may be required as an
 35-1    alternative to chemicals.  Rules [In the rules] adopted under
 35-2    Subsection (a)[, the board] may provide indemnity for the organic
 35-3    cotton growers [producers] for reasonable losses that result from a
 35-4    prohibition of production of organic cotton or from any requirement
 35-5    of destruction of organic cotton.  If time is reasonably available
 35-6    for the production of an economically feasible alternative crop,
 35-7    the board may require mitigation of losses with the production of
 35-8    an alternative crop.
 35-9          SECTION 1.24.  Subsection (c), Section 74.126, Agriculture
35-10    Code, is amended to read as follows:
35-11          (c)  If the commissioner [or the foundation] determines that
35-12    a violation of this subchapter or a rule adopted under this
35-13    subchapter has occurred, the commissioner [or the foundation] may
35-14    request that the attorney general or the county or district
35-15    attorney of the county in which the alleged violation occurred or
35-16    is occurring file suit for civil, injunctive, and/or other
35-17    appropriate relief.
35-18          SECTION 1.25.  Subchapter D, Chapter 74, Agriculture Code, is
35-19    amended by adding Sections 74.128, 74.129, and 74.130 to read as
35-20    follows:
35-21          Sec. 74.128.  ANNUAL REPORT.  The board shall issue to the
35-22    commissioner and the appropriate oversight committee in the house
35-23    of representatives an annual report detailing its efforts to carry
35-24    out the purposes of this subchapter.
35-25          Sec. 74.129.  EXEMPTION FROM LAWSUITS, LIABILITY, TAXATION,
 36-1    AND LEGAL PROCESS.  The legislature recognizes that the foundation,
 36-2    acting under the supervision and control of the commissioner, is
 36-3    carrying out an important governmental function and that therefore
 36-4    the foundation, as a quasi-governmental entity, must be immune from
 36-5    lawsuits and liability except to the extent provided in Chapter
 36-6    101, Civil Practice and Remedies Code, and as provided by this
 36-7    section.  Therefore, no claims may be brought or continued against
 36-8    the foundation except:  (1) claims allowed by Chapter 101, Civil
 36-9    Practice and Remedies Code; and (2) claims pending against the
36-10    foundation on April 30, 1997, plus attorney's fees and costs of
36-11    court.  With the exception of finally adjudicated claims arising
36-12    from Chapter 101, Civil Practice and Remedies Code, and claims for
36-13    assessments, attorney's fees, and costs of court paid by named
36-14    plaintiffs in lawsuits pending on or before April 30, 1997, all
36-15    payments, contributions, funds, and assessments received or held by
36-16    the foundation under this subchapter are exempt from garnishment,
36-17    attachment, execution, or other seizure and from state and local
36-18    taxation, levies, sales, and any other process and are
36-19    unassignable.  Nothing in this section shall affect or impair any
36-20    existing or future indebtedness or any existing or future security
36-21    interest created under a note, security agreement, assignment, or
36-22    other loan agreement between the foundation and a lender or any
36-23    judgment, to the extent such judgment allows recovery against the
36-24    foundation pursuant to a note, security agreement, loan agreement,
36-25    or other document.
 37-1          Sec. 74.130.  USE OF BIO-INTENSIVE CONTROLS.  (a)  The
 37-2    commissioner shall develop and adopt rules to allow a cotton grower
 37-3    in an eradication program to use biological, botanical, or other
 37-4    non-synthetic pest control methods.  In developing the rules, the
 37-5    commissioner shall consider:
 37-6                (1)  scientific studies and field trials of the
 37-7    effectiveness of a proposed alternative control method;
 37-8                (2)  the feasibility of using a proposed alternative
 37-9    control technique within a particular region;
37-10                (3)  the degree of monitoring necessary to establish
37-11    the success of the use of a proposed alternative control; and
37-12                (4)  methods to prevent the use of substances that
37-13    would impede the use of alternative controls and the promotion of
37-14    beneficial insect populations.
37-15          (b)  A cotton grower that chooses to use an alternative
37-16    method of control as provided in Subsection (a) shall notify the
37-17    board.  The board and the cotton grower shall coordinate their
37-18    actions to prevent the use of substances that would impede the use
37-19    of alternative controls and the promotion of beneficial insect
37-20    populations.
37-21          (c)  The cotton grower shall pay any additional cost of
37-22    bio-intensive control in addition to any assessment.
37-23          SECTION 1.26.  (a)  All agreements made and obligations
37-24    incurred by the Texas Boll Weevil Eradication Foundation, Inc.,
37-25    before the effective date of this Act are validated, ratified, and
 38-1    confirmed.  The foundation's members, directors, officers,
 38-2    employees, and agents are not individually liable for, or in
 38-3    connection with, any agreement or obligation validated under this
 38-4    section.
 38-5          (b)  Except for instances of gross negligence, individual
 38-6    criminal actions, or acts of dishonesty, the foundation's members,
 38-7    directors, officers, and employees are not individually liable to a
 38-8    cotton grower or other person for errors in judgment, mistakes, or
 38-9    other acts or omissions made or occurring before the effective date
38-10    of this Act under the authority of Subchapter D, Chapter 74,
38-11    Agriculture Code, as originally enacted or subsequently amended.
38-12          (c)  This section does not make any obligation validated,
38-13    ratified, or confirmed under this section a debt of this state.
38-14          SECTION 1.27.  (a)  To the extent assessments have not been
38-15    previously validated, ratified, and confirmed, assessments approved
38-16    on February 28, 1994, for the Southern Rolling Plains Boll Weevil
38-17    Eradication Zone, on December 1, 1994, and August 2, 1996, for the
38-18    Central Rolling Plains Boll Weevil Eradication Zone, and on
38-19    February 16, 1995, for the South Texas/Winter Garden Boll Weevil
38-20    Eradication Zone, and all agreements and obligations of the
38-21    foundation related to the statutory zones made or approved before
38-22    the effective date of this Act are validated, ratified, and
38-23    confirmed and shall continue under this subsection.  In any
38-24    eradication zone existing prior to the effective date of this Act,
38-25    other than zones named in this subsection, assessments are
 39-1    validated, ratified, and confirmed only as to amounts actually
 39-2    collected by the Texas Boll Weevil Eradication Foundation, Inc.,
 39-3    prior to the effective date of this Act.  For purposes of this
 39-4    subsection, any assessments in any such pre-existing zone which
 39-5    have been deposited in the registry of a court of this state on or
 39-6    before April 30, 1997, or paid by named plaintiffs in a pleading
 39-7    filed on or before April 30, 1997, in lawsuits against the
 39-8    foundation are not assessments actually collected by the
 39-9    foundation.
39-10          (b)  Not later than October 20, 1997, the commissioner of
39-11    agriculture shall hold a retention referendum and board election in
39-12    the South Texas Winter Garden Eradication Zone to determine the
39-13    continued necessity of an eradication program under Section 74.114,
39-14    Agriculture Code, as amended by this Act.  The retention referendum
39-15    will be determined by a vote of the majority of the cotton growers
39-16    voting in the retention referendum.  Only a diapause program may be
39-17    carried out until that time.
39-18          (c)  Not later than one year after the effective date of this
39-19    Act, the commissioner of agriculture shall hold a retention
39-20    referendum and board election in the Southern Rolling Plains
39-21    Eradication Zone and the Rolling Plains Central Eradication Zone to
39-22    determine the continued necessity of an eradication program under
39-23    Section 74.114, Agriculture Code, as amended by this Act.  The
39-24    retention referendum will be determined by a vote of the majority
39-25    of the cotton growers voting in the retention referendum.
 40-1          (d)  The commissioner of agriculture may, in each statutory
 40-2    zone, solicit public comment through public hearings to determine
 40-3    whether to divide any of the statutory zones as defined in Section
 40-4    74.1021, Agriculture Code, as added by this Act.  After considering
 40-5    public opinion, the commissioner may by rule divide a statutory
 40-6    zone and fairly apportion any debt to each portion of the divided
 40-7    zone.
 40-8          (e)  The commissioner of agriculture shall conduct an
 40-9    eradication referendum under Section 74.114, Agriculture Code, as
40-10    amended by this Act in the Southern High Plains-Caprock Eradication
40-11    Zone not later than August 1, 1997.  The commissioner shall comply
40-12    with the notice requirements of Subchapter D, Chapter 74,
40-13    Agriculture Code, as amended by this Act, and other law, to the
40-14    extent reasonable to conduct the eradication referendum required
40-15    under this subsection.  In the event the initial referendum
40-16    required by this subsection is unsuccessful, the commissioner may
40-17    also hold one referendum under Section 74.114, Agriculture Code, as
40-18    amended by this Act, in the Southern High Plains-Caprock
40-19    Eradication Zone during the 1998 calendar year, notwithstanding the
40-20    provisions of Subsection (e), Section 74.105, or Subsection (h),
40-21    Section 74.114, Agriculture Code.
40-22          (f)  For purposes of Subsection (a), Section 74.114,
40-23    Agriculture Code, as amended by this Act, the four-year period in
40-24    which an eradication program has been operational begins on a date
40-25    after the effective date of this Act.
 41-1          (g)  Rules adopted before the effective date of this Act by
 41-2    the commissioner of agriculture in accordance with Sections 74.114,
 41-3    74.118, and 74.120, Agriculture Code, and published as Sections 3.1
 41-4    through 3.6, 3.20 through 3.24, and 3.50 through 3.57, Chapter 3,
 41-5    Title 4, Texas Administrative Code, are validated, ratified, and
 41-6    confirmed on the effective date of this Act and shall continue in
 41-7    effect to the extent the rules are consistent with this Act until
 41-8    amended or repealed by the commissioner.
 41-9          SECTION 1.28.  The Texas Boll Weevil Eradication Foundation,
41-10    Inc., shall, not later than 30 days after the effective date of
41-11    this Act, take whatever steps are necessary to adjust the
41-12    composition of its board of directors to permit the commissioner of
41-13    agriculture to appoint board members in compliance with Section
41-14    74.107, Agriculture Code, as amended by this Act.  If the
41-15    foundation does not comply with Section 74.107, Agriculture Code,
41-16    as amended by this Act,  the commissioner may cancel the
41-17    designations and designate another nonprofit entity that meets the
41-18    qualifications of Section 74.107, Agriculture Code, as amended by
41-19    this Act.  In the interim, the current directors and officers of
41-20    the foundation shall remain in office and carry out the
41-21    foundation's duties under Subchapter D, Chapter 74, Agriculture
41-22    Code, as amended by this Act.
41-23          SECTION 1.29.  The commissioner of agriculture shall develop
41-24    and adopt rules regarding the use of bio-intensive controls as
41-25    required under Section 74.130, Agriculture Code, as added by this
 42-1    Act, not later than September 1, 1998.  An eradication program
 42-2    continues as otherwise provided by Subchapter D, Chapter 74,
 42-3    Agriculture Code, as amended by this Act, during the period before
 42-4    initial rules are adopted under Section 74.130, Agriculture Code,
 42-5    as added by this Act.
 42-6          SECTION 1.30.  Sections 74.103 and 74.104, Agriculture Code,
 42-7    are repealed.
 42-8                                 ARTICLE 2
 42-9          SECTION 2.01.  Subsections (b) and (c), Section 74.105,
42-10    Agriculture Code, are reenacted to read as follows:
42-11          (b)  Eradication zone referenda shall be conducted under the
42-12    procedures provided by Section 74.114 of this code.
42-13          (c)  A proposed eradication zone referendum ballot must
42-14    include or be accompanied by information about the proposed
42-15    eradication zone, including:
42-16                (1)  a statement of the purpose of the boll weevil or
42-17    pink bollworm eradication program;
42-18                (2)  the geographic area included in the proposed
42-19    eradication zone;
42-20                (3)  a general summary of rules adopted by the
42-21    commissioner under Sections 74.114, 74.118, and 74.120 of this
42-22    code, including a description of:
42-23                      (A)  cotton grower responsibilities; and
42-24                      (B)  penalties for noncompliance with rules
42-25    adopted under this subchapter; and
 43-1                (4)  an address and toll-free telephone number that a
 43-2    cotton grower may use to request more information about the
 43-3    referendum or the boll weevil or pink bollworm eradication program.
 43-4          SECTION 2.02.  Subsections (b), (e), (f), and (g), Section
 43-5    74.106, Agriculture Code, are reenacted to read as follows:
 43-6          (b)  A board election shall be conducted under the procedures
 43-7    provided by this section and Section 74.114 of this code.
 43-8          (e)  On receipt of an application and verification that the
 43-9    application meets the requirements of Subsection (d) of this
43-10    section, an applicant's name shall be placed on the ballot for the
43-11    board election.
43-12          (f)  An eligible voter may vote for a cotton grower whose
43-13    name does not appear on the official ballot by writing that
43-14    person's name on the ballot.
43-15          (g)  A board election must be preceded by at least 45 days
43-16    notice published in one or more newspapers published and
43-17    distributed in the proposed or established eradication zone.  The
43-18    notice shall be published not less than once a week for three
43-19    consecutive weeks.  Not later than the 45th day before the date of
43-20    the election, direct written notice of the election shall be given
43-21    to each county agent in the eradication zone.
43-22          SECTION 2.03.  Subsections (b), (c), and (f), Section 74.109,
43-23    Agriculture Code, are reenacted to read as follows:
43-24          (b)  Not later than the 45th day after the last day of the
43-25    fiscal year, the board shall submit to the commissioner a report
 44-1    itemizing all income and expenditures and describing all activities
 44-2    of the foundation during the fiscal year.
 44-3          (c)  The foundation shall provide fidelity bonds in amounts
 44-4    determined by the board for employees or agents who handle funds
 44-5    for the foundation.
 44-6          (f)  The foundation is a governmental unit under Section
 44-7    101.001, Civil Practice and Remedies Code, and is entitled to
 44-8    governmental immunity.  A tort claim against the foundation must be
 44-9    made under Chapter 101, Civil Practice and Remedies Code.
44-10          SECTION 2.04.  Section 74.111, Agriculture Code, is reenacted
44-11    to read as follows:
44-12          Sec. 74.111.  BOARD MEMBER COMPENSATION.  Board members serve
44-13    without compensation but are entitled to reimbursement for
44-14    reasonable and necessary expenses incurred in the discharge of
44-15    their duties.
44-16          SECTION 2.05.  Subsections (a) through (e), Section 74.112,
44-17    Agriculture Code, are reenacted to read as follows:
44-18          (a)  On the determination by the foundation that the boll
44-19    weevil eradication program has been completed in all eradication
44-20    zones established under this subchapter for boll weevil control and
44-21    the pink bollworm eradication program has been completed in any
44-22    eradication zone established under this chapter for pink bollworm
44-23    control, the foundation shall provide notice of such completion to
44-24    the commissioner along with a request for discontinuance of the
44-25    eradication program and collection of the assessment.  Any such
 45-1    request shall include documentation supporting the eradication of
 45-2    the boll weevil in all eradication zones established for boll
 45-3    weevil eradication or pink bollworm in any eradication zone
 45-4    established for pink bollworm eradication and a plan for
 45-5    discontinuance of the program and assessment.
 45-6          (b)  The commissioner shall determine whether or not the
 45-7    further elimination of the boll weevil or pink bollworm is
 45-8    necessary in the eradication zones and approve or disapprove
 45-9    discontinuance of the foundation and the plan for dissolution.
45-10          (c)  On completion of dissolution, the foundation shall file
45-11    a final report with the commissioner, including a financial report,
45-12    and submit all remaining funds into the trust of the commissioner.
45-13    Final books of the foundation shall be filed with the commissioner
45-14    and are subject to audit by the department.
45-15          (d)  The commissioner shall pay from the foundation's
45-16    remaining funds all of the foundation's outstanding obligations.
45-17          (e)  Funds remaining after payment under Subsection (d) of
45-18    this section shall be returned to contributing cotton growers on a
45-19    pro rata basis.
45-20          SECTION 2.06.  Subsections (b), (e), (g), and (j), Section
45-21    74.114, Agriculture Code, are reenacted to read as follows:
45-22          (b)  The foundation shall bear all expenses incurred in
45-23    conducting a referendum or board election.
45-24          (e)  An eligible cotton grower may vote only once in a
45-25    referendum or board election.
 46-1          (g)  A referendum is approved if:
 46-2                (1)  at least two-thirds of those voting vote in favor
 46-3    of the referendum; or
 46-4                (2)  those voting in favor of the referendum farm more
 46-5    than 50 percent, as determined by the commissioner, of the cotton
 46-6    acreage in the relevant eradication zone.
 46-7          (j)  Individual voter information, including an individual's
 46-8    vote in a referendum or board election conducted under this
 46-9    section, is confidential and is not subject to disclosure under the
46-10    open records law, Chapter 552, Government Code.
46-11          SECTION 2.07.  Section 74.118, Agriculture Code, is reenacted
46-12    to read as follows:
46-13          Sec. 74.118.  AUTHORITY TO PROHIBIT PLANTING OF COTTON AND
46-14    REQUIRE PARTICIPATION IN ERADICATION PROGRAM.  (a)  The
46-15    commissioner may adopt reasonable rules regarding areas where
46-16    cotton may not be planted in an eradication zone if there is reason
46-17    to believe planting will jeopardize the success of the program or
46-18    present a hazard to public health or safety.
46-19          (b)  The commissioner may adopt rules prohibiting the
46-20    planting of noncommercial cotton in eradication zones and requiring
46-21    that all growers of commercial cotton in an eradication zone
46-22    participate in a boll weevil or pink bollworm eradication program
46-23    that includes cost sharing as required by the rules.
46-24          (c)  Notice of prohibitions and requirements shall be given
46-25    by publication for one day each week for three successive weeks in
 47-1    a newspaper having general circulation in the affected area.
 47-2          (d)  The commissioner may adopt a reasonable schedule of
 47-3    penalty fees to be assessed against growers in a designated
 47-4    eradication zone who do not meet the requirements of the rules
 47-5    issued by the commissioner relating to reporting of acreage and
 47-6    participation in cost sharing.  The penalty fees adopted may not
 47-7    exceed $50 per acre.
 47-8          (e)  If a grower fails to meet the requirements of rules
 47-9    adopted by the commissioner, the commissioner may order the
47-10    destruction of cotton not in compliance with the rules.  Costs
47-11    incurred by the commissioner in the destruction of cotton may be
47-12    assessed against the grower.
47-13          SECTION 2.08.  Section 74.119, Agriculture Code, is reenacted
47-14    to read as follows:
47-15          Sec. 74.119.  AUTHORITY FOR DESTRUCTION OR TREATMENT OF
47-16    COTTON IN ERADICATION ZONES; COMPENSATION PAYABLE.  The department
47-17    may destroy or treat volunteer or other noncommercial cotton and
47-18    establish procedures for the purchase and destruction of commercial
47-19    cotton in eradication zones if the department determines the action
47-20    is necessary to carry out the purposes of this subchapter.  The
47-21    department is not liable to the owner or lessee for the destruction
47-22    of or injury to any cotton that was planted in an eradication zone
47-23    after publication of notice as provided by this subchapter.  The
47-24    foundation is liable for the destruction of cotton if the cotton
47-25    was planted in an eradication zone before publication of the
 48-1    notice.
 48-2          SECTION 2.09.  Subsection (a), Section 74.120, Agriculture
 48-3    Code, is reenacted to read as follows:
 48-4          (a)  The commissioner shall adopt rules to protect
 48-5    individuals, livestock, wildlife, and honeybee colonies on any
 48-6    premises in an eradication zone on which cotton plants are being
 48-7    grown that have been or are being treated to eradicate the boll
 48-8    weevil or the pink bollworm.
 48-9          SECTION 2.10.  Section 74.122, Agriculture Code, is reenacted
48-10    to read as follows:
48-11          Sec. 74.122.  QUARANTINE.  The department may adopt rules
48-12    relating to quarantining areas of this state that are infested with
48-13    the boll weevil or the pink bollworm.  The rules must address the
48-14    storage of regulated articles and the movement of regulated
48-15    articles into and out of a quarantined area.  The department may
48-16    also adopt rules governing the movement of regulated articles from
48-17    other states into this state if the articles are known to be
48-18    infested with the boll weevil or the pink bollworm.
48-19          SECTION 2.11.  Section 74.123, Agriculture Code, is reenacted
48-20    to read as follows:
48-21          Sec. 74.123.  DOCUMENTING REGULATED ARTICLES.  To implement
48-22    this subchapter, the department may issue or authorize issuance of:
48-23                (1)  a certificate that indicates that a regulated
48-24    article is not infested with the boll weevil or the pink bollworm;
48-25    and
 49-1                (2)  a permit that provides for the movement of a
 49-2    regulated article to a restricted designation for limited handling,
 49-3    use, or processing.
 49-4          SECTION 2.12.  Subsection (b), Section 74.124, Agriculture
 49-5    Code, is reenacted to read as follows:
 49-6          (b)  An agreement entered into under this section may provide
 49-7    for cost sharing and for division of duties and responsibilities
 49-8    under this subchapter and may include other provisions to carry out
 49-9    the purposes of this subchapter.
49-10          SECTION 2.13.  Subsections (a) and (b), Section 74.126,
49-11    Agriculture Code, are reenacted to read as follows:
49-12          (a)  A person who violates this subchapter or a rule adopted
49-13    under this subchapter or who alters, forges, counterfeits, or uses
49-14    without authority a certificate, permit, or other document issued
49-15    under this subchapter or under a rule adopted under this subchapter
49-16    commits an offense.
49-17          (b)  An offense under this section is a Class C misdemeanor.
49-18          SECTION 2.14.  Section 74.127, Agriculture Code, is reenacted
49-19    to read as follows:
49-20          Sec. 74.127.  SUNSET PROVISION.  (a)  The board is subject to
49-21    Chapter 325, Government Code (Texas Sunset Act).  Unless continued
49-22    in existence as provided by that chapter, the board is abolished
49-23    and this subchapter expires September 1, 2004.
49-24          (b)  The commissioner may order the dissolution of the
49-25    foundation at any time the commissioner determines that the
 50-1    purposes of this subchapter have been fulfilled or that the
 50-2    foundation is inoperative and abandoned.  Dissolution shall be
 50-3    conducted in accordance with Section 74.112 of this code.
 50-4          (c)  If the foundation is abolished or the program
 50-5    discontinued for any reason, assessments approved, levied, or
 50-6    otherwise collectible on the date of abolishment remain valid as
 50-7    necessary to pay the financial obligations of the foundation.
 50-8                                 ARTICLE 3
 50-9          SECTION 3.01.  The importance of this legislation and the
50-10    crowded condition of the calendars in both houses create an
50-11    emergency and an imperative public necessity that the
50-12    constitutional rule requiring bills to be read on three several
50-13    days in each house be suspended, and this rule is hereby suspended,
50-14    and that this Act take effect and be in force from and after its
50-15    passage, and it is so enacted.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I hereby certify that S.B. No. 1814 passed the Senate on
         May 16, 1997, by the following vote:  Yeas 30, Nays 0; and that the
         Senate concurred in House amendments on May 29, 1997, by the
         following vote:  Yeas 30, Nays 0.
                                             _______________________________
                                                 Secretary of the Senate
               I hereby certify that S.B. No. 1814 passed the House, with
         amendments, on May 27, 1997, by the following vote:  Yeas 145,
         Nays 0, one present not voting.
                                             _______________________________
                                                 Chief Clerk of the House
         Approved:
         _______________________________
                     Date
         _______________________________
                   Governor