Texas 2009 - 81st Regular

Texas House Bill HB4578 Compare Versions

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1	1	81R25712 BEF-F
2	2	By: Martinez H.B. No. 4578
3	3	Substitute the following for H.B. No. 4578:
4	4	By: Anderson C.S.H.B. No. 4578
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the establishment of the official citrus producers'
10	10	pest and disease management corporation; providing penalties.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Subtitle B, Title 5, Agriculture Code, is
13	13	amended by adding Chapter 80 to read as follows:
14	14	CHAPTER 80. OFFICIAL CITRUS PRODUCERS' PEST AND DISEASE
15	15	MANAGEMENT CORPORATION
16	16	Sec. 80.001. FINDINGS AND DECLARATION OF POLICY. (a) The
17	17	legislature finds that:
18	18	(1) the insect known as the Asian citrus psyllid and
19	19	the disease known as citrus greening are public nuisances and
20	20	menaces to the citrus industry, and their control and suppression
21	21	is a public necessity;
22	22	(2) because of the natural migration patterns of the
23	23	Asian citrus psyllid, the control and suppression of the nuisance
24	24	can best be accomplished by dividing the commercial citrus-growing
25	25	areas into separate zones so that integrated pest management
26	26	programs may be developed for each zone;
27	27	(3) there is a need for a quasi-governmental entity
28	28	acting under the supervision and control of the commissioner whose
29	29	members are actual citrus producers who would be represented on the
30	30	board of the entity by directors elected by them to manage control
31	31	and suppression programs and to furnish expertise in the field of
32	32	insect control and suppression, because such an entity would
33	33	enhance the interest and participation of citrus producers in the
34	34	program;
35	35	(4) citrus producers, in partnership with the state
36	36	and federal governments, have made significant investments toward
37	37	the suppression of these pests and disease in this state; and
38	38	(5) it is essential to the well-being of the citrus
39	39	industry and the agricultural economy of this state that the
40	40	investments of the citrus producers and the state and federal
41	41	governments be protected.
42	42	(b) It is the intent of the legislature that the program of
43	43	control and suppression of the Asian citrus psyllid be carried out
44	44	with the best available integrated pest management techniques.
45	45	(c) The department may recover costs for administration of
46	46	this chapter.
47	47	Sec. 80.002. DESIGNATION OF ENTITY TO CARRY OUT ASIAN
48	48	CITRUS PSYLLID AND CITRUS GREENING CONTROL AND SUPPRESSION. (a)
49	49	The Texas Citrus Pest and Disease Management Corporation, Inc., a
50	50	Texas nonprofit corporation, shall be recognized by the department
51	51	as the entity to plan, carry out, and operate suppression programs
52	52	to manage and control the Asian citrus psyllid and citrus greening
53	53	in citrus plants in the state under the supervision of the
54	54	department as provided by this chapter.
55	55	(b) The commissioner may terminate the corporation's
56	56	designation as the entity recognized to carry out Asian citrus
57	57	psyllid control and management by giving 45 days' written notice to
58	58	the corporation and by designating a successor entity. If the
59	59	commissioner designates a successor to the corporation, the
60	60	successor has all the powers and duties of the corporation under
61	61	this chapter. Any successor to the corporation shall assume and
62	62	shall be responsible for all obligations and liabilities relating
63	63	to any notes, security agreements, assignments, loan agreements,
64	64	and any other contracts or other documents entered into by the
65	65	corporation with or for the benefit of any financial institution or
66	66	its predecessor, successor, or assignee.
67	67	Sec. 80.003. DEFINITIONS. In this chapter:
68	68	(1) "Board" means the board of directors of the Texas
69	69	Citrus Pest and Disease Management Corporation, Inc.
70	70	(2) "Asian citrus psyllid" means Diaphorina citri
71	71	Kuwayama.
72	72	(3) "Commissioner" means the commissioner of
73	73	agriculture.
74	74	(4) "Citrus" means:
75	75	(A) a citrus plant;
76	76	(B) a part of a citrus plant, including trees,
77	77	limbs, flowers, roots, and leaves; or
78	78	(C) citrus products.
79	79	(5) "Citrus greening" means the disease caused by the
80	80	Asian citrus psyllid.
81	81	(6) "Citrus producer" means a person who grows citrus
82	82	and receives income from the sale of citrus. The term includes an
83	83	individual who as owner, landlord, tenant, or sharecropper is
84	84	entitled to share in the citrus grown and available for marketing
85	85	from a farm or to share in the proceeds from the sale of the citrus
86	86	from the farm.
87	87	(7) "Suppression" means control of the numbers and
88	88	migration of the Asian citrus psyllid to the extent that the
89	89	commissioner does not consider further management of the Asian
90	90	citrus psyllid necessary to prevent economic loss to citrus
91	91	producers.
92	92	(8) "Pest management zone" means a geographic area
93	93	designated by the commissioner in accordance with Section 80.005 in
94	94	which citrus producers by referendum approve their participation in
95	95	a citrus pest control program.
96	96	(9) "Corporation" means the Texas Citrus Pest and
97	97	Disease Management Corporation, Inc., a Texas nonprofit
98	98	corporation.
99	99	(10) "Host" means a plant or plant product in which the
100	100	Asian citrus psyllid is capable of completing any portion of its
101	101	life cycle.
102	102	(11) "Infested" means the presence of the Asian citrus
103	103	psyllid in any life stage or the existence of generally accepted
104	104	entomological evidence from which it may be concluded with
105	105	reasonable certainty that the Asian citrus psyllid is present.
106	106	(12) "Integrated pest management" means the
107	107	coordinated use of pest and environmental information with
108	108	available pest control methods, including pesticides, natural
109	109	predator controls, cultural farming practices, and climatic
110	110	conditions, to prevent unacceptable levels of pest damage by the
111	111	most economical means and with the least possible hazard to people,
112	112	property, and the environment.
113	113	(13) "Regulated article" means an article carrying or
114	114	capable of carrying the Asian citrus psyllid, including citrus
115	115	plants, nursery plants, citrus rootstock, or other hosts.
116	116	Sec. 80.004. ADVISORY COMMITTEES. (a) The commissioner
117	117	may appoint an advisory committee for an existing pest management
118	118	zone or an area of the state that is to be considered by the
119	119	commissioner for designation as or inclusion in a pest management
120	120	zone. The committee shall gather advice, input, and guidance from
121	121	citrus producers from the area represented by the committee
122	122	concerning the interest in and concerns about the implementation of
123	123	this chapter.
124	124	(b) Each advisory committee may consider and make
125	125	recommendations to the commissioner and the corporation
126	126	concerning:
127	127	(1) the geographic boundaries for a proposed pest
128	128	management zone;
129	129	(2) the amount of local interest in operating a
130	130	suppression program;
131	131	(3) the basis and amount of an assessment necessary to
132	132	support a suppression program;
133	133	(4) ongoing implementation of a suppression program
134	134	approved by growers in a pest management zone; and
135	135	(5) any other matter requested by the commissioner or
136	136	the corporation.
137	137	(c) Each advisory committee appointed under this section
138	138	must include a sufficient number of citrus producers to ensure
139	139	adequate representation across the pest management zone and other
140	140	persons as determined by the commissioner.
141	141	(d) An advisory committee established under this section is
142	142	subject to Chapters 551 and 552, Government Code.
143	143	Sec. 80.005. CREATION OF PEST MANAGEMENT ZONES. (a) The
144	144	commissioner by rule may designate an area of this state as a
145	145	proposed pest management zone.
146	146	(b) The commissioner may hold a public hearing in the
147	147	proposed pest management zone to discuss the proposed geographic
148	148	boundaries of the zone. The public hearing may include any other
149	149	topic allowed under this chapter.
150	150	(c) After the adoption of a rule under Subsection (a), the
151	151	commissioner shall conduct a referendum under Section 80.006.
152	152	Sec. 80.006. PEST MANAGEMENT ZONE REFERENDA. (a) The
153	153	commissioner shall conduct a referendum in each proposed pest
154	154	management zone to determine whether citrus producers want to
155	155	establish a pest management zone.
156	156	(b) Pest management zone referenda shall be conducted under
157	157	the procedures provided by Section 80.016.
158	158	(c) A proposed pest management zone referendum ballot must
159	159	include or be accompanied by information about the proposed pest
160	160	management zone, including:
161	161	(1) a statement of the purpose of the Asian citrus
162	162	psyllid suppression program;
163	163	(2) the geographic area included in the proposed pest
164	164	management zone;
165	165	(3) a general summary of rules adopted by the
166	166	commissioner under Sections 80.016, 80.020, and 80.022, including a
167	167	description of:
168	168	(A) citrus producer responsibilities; and
169	169	(B) penalties for noncompliance with rules
170	170	adopted under this chapter; and
171	171	(4) an address and toll-free telephone number that a
172	172	citrus producer may use to request more information about the
173	173	referendum or the Asian citrus psyllid suppression program.
174	174	(d) If a referendum to establish a pest management zone is
175	175	not approved, the concurrent election of a board member from the
176	176	proposed pest management zone under Section 80.007 has no effect,
177	177	and the commissioner shall appoint a representative to the board
178	178	from the area.
179	179	(e) The corporation may request the commissioner to call
180	180	additional referenda in a proposed pest management zone in which a
181	181	referendum has not been approved. An additional pest management
182	182	zone referendum and concurrent board election may not be held
183	183	before the first anniversary of the date of the preceding
184	184	referendum.
185	185	(f) After the approval of any referendum, the eligible
186	186	voters shall be allowed, by subsequent referenda, to vote on
187	187	whether to continue their assessments. The requirements for an
188	188	initial referendum must be complied with in a subsequent
189	189	referendum.
190	190	Sec. 80.007. BOARD ELECTIONS. (a) The initial election for
191	191	board members from a proposed pest management zone shall be held
192	192	concurrently with a pest management zone referendum held under
193	193	Section 80.006. Each pest management zone must be represented on
194	194	the board and remain represented on the board until suppression
195	195	operations are concluded and all debt of the pest management zone is
196	196	paid.
197	197	(b) A board election shall be conducted under the procedures
198	198	provided by this section and Section 80.016.
199	199	(c) A citrus producer who is eligible to vote in a
200	200	referendum or election under this chapter is eligible to be a
201	201	candidate for and member of the board if the person has at least
202	202	seven years of experience as a citrus producer and otherwise meets
203	203	the qualifications for the office.
204	204	(d) A citrus producer who wants to be a candidate for the
205	205	board must meet the qualifications for board membership and file an
206	206	application with the commissioner. The application must be:
207	207	(1) filed not later than the 30th day before the date
208	208	set for the board election;
209	209	(2) on a form approved by the commissioner; and
210	210	(3) signed by at least 10 citrus producers who are
211	211	eligible to vote in the board election.
212	212	(e) On receipt of an application and verification that the
213	213	application meets the requirements of Subsection (d), an
214	214	applicant's name shall be placed on the ballot for the board
215	215	election.
216	216	(f) An eligible voter may vote for a citrus producer whose
217	217	name does not appear on the official ballot by writing that person's
218	218	name on the ballot.
219	219	(g) A board election must be preceded by at least 45 days'
220	220	notice published in one or more newspapers published and
221	221	distributed in the proposed or established pest management zone.
222	222	The notice shall be published not less than once a week for three
223	223	consecutive weeks. Not later than the 45th day before the date of
224	224	the election, direct written notice of the election shall be given
225	225	to each AgriLife Extension agent in the pest management zone.
226	226	(h) Each board member shall be sworn into office by a
227	227	representative of the commissioner by taking the oath of office
228	228	required for elected officers of the state.
229	229	Sec. 80.008. COMPOSITION OF BOARD. (a) The board is
230	230	composed of members elected from each pest management zone
231	231	established by referendum, members appointed by the commissioner
232	232	from other citrus-growing areas of the state, and members appointed
233	233	by the commissioner under Subsection (b). The commissioner shall
234	234	appoint an initial board composed of 15 members. Except as provided
235	235	by Subsection (b), the term of each board position may not exceed
236	236	four years.
237	237	(b) In making appointments under this section, the
238	238	commissioner shall appoint the following board members, selected
239	239	from a variety of citrus-growing regions of the state, for
240	240	four-year terms:
241	241	(1) an agricultural lender;
242	242	(2) an independent entomologist who is an integrated
243	243	pest management specialist;
244	244	(3) two representatives from industries allied with
245	245	citrus production; and
246	246	(4) a representative from the pest control industry.
247	247	(c) The commissioner may change the number of board
248	248	positions or the pest management zone representation on the board
249	249	to accommodate changes in the number of pest management zones. A
250	250	change under this subsection may not contravene another provision
251	251	of this chapter.
252	252	(d) A vacancy on the board shall be filled by appointment by
253	253	the commissioner for the unexpired term.
254	254	(e) On 30 days' notice and opportunity for hearing, the
255	255	commissioner may replace any unelected board member of the
256	256	corporation.
257	257	Sec. 80.009. POWERS OF BOARD AND COMMISSIONER. (a) The
258	258	board may:
259	259	(1) conduct programs consistent with the declaration
260	260	of policy stated in Section 80.001;
261	261	(2) accept, as necessary to implement this chapter,
262	262	gifts and grants;
263	263	(3) borrow money, with the approval of the
264	264	commissioner, as necessary to execute this chapter;
265	265	(4) take other action and exercise other authority as
266	266	necessary to execute any act authorized by this chapter or the Texas
267	267	Non-Profit Corporation Act (Article 1396-1.01 et seq., Vernon's
268	268	Texas Civil Statutes); and
269	269	(5) form an advisory committee composed of individuals
270	270	from this state, other states, or other countries and change
271	271	membership on the committee, as necessary. Any advisory committee
272	272	created under this subdivision for the purpose of establishing
273	273	treatment methods shall include among its members persons with
274	274	knowledge of the effects of different treatments on the health of
275	275	agricultural workers, the local population, and the ecosystem,
276	276	including but not limited to the effects of a particular method of
277	277	treatment on beneficial organisms and wildlife, the potential for
278	278	secondary infestations from nontarget pests, and the potential for
279	279	pest resistance to particular methods of treatment.
280	280	(b) On petition of at least 30 percent of the citrus
281	281	producers eligible to vote in the proposed area, the commissioner
282	282	may, or at the commissioner's discretion, the commissioner by rule
283	283	may add an area to a pest management zone or transfer an area or
284	284	county from one zone to another zone if:
285	285	(1) citrus production has begun or could begin in the
286	286	area;
287	287	(2) the area is adjacent to a pest management zone or
288	288	is in an area with biological characteristics similar to the pest
289	289	management zone; and
290	290	(3) the addition is approved in a referendum held in
291	291	the area.
292	292	(c) The board must adopt a procurement policy, subject to
293	293	approval by the commissioner, outlining the procedures to be used
294	294	in purchasing.
295	295	(d) The commissioner at any time may inspect the books and
296	296	other financial records of the corporation.
297	297	Sec. 80.010. BOARD DUTIES. (a) The board shall have an
298	298	annual independent audit of the books, records of account, and
299	299	minutes of proceedings maintained by the corporation prepared by an
300	300	independent certified public accountant or a firm of independent
301	301	certified public accountants. The audit must include information
302	302	for each zone in which a suppression program has been conducted
303	303	under this chapter. The audit shall be filed with the board, the
304	304	commissioner, and the state auditor and be made available to the
305	305	public by the corporation or the commissioner. The transactions of
306	306	the corporation are subject to audit by the state auditor in
307	307	accordance with Chapter 321, Government Code.
308	308	(b) Not later than the 45th day after the last day of the
309	309	fiscal year, the board shall submit to the commissioner a report
310	310	itemizing all income and expenditures and describing all activities
311	311	of the corporation during the fiscal year.
312	312	(c) The corporation shall provide fidelity bonds in amounts
313	313	determined by the board for employees or agents who handle money for
314	314	the corporation.
315	315	(d) The corporation and the board are state agencies for the
316	316	following purposes only:
317	317	(1) exemption from taxation, including exemption from
318	318	sales and use taxes and taxes under Chapter 152, Tax Code; and
319	319	(2) exemption from vehicle registration fees.
320	320	(e) Funds collected by the corporation are not state funds
321	321	and are not required to be deposited in the state treasury. The
322	322	corporation shall deposit all money collected under this chapter in
323	323	a bank or other depository approved by the commissioner.
324	324	(f) The board shall collect data on the type and quantity of
325	325	pesticides used in accordance with this chapter. The data shall be
326	326	filed with the commissioner.
327	327	(g) All money collected under this chapter shall be used
328	328	solely to finance programs approved by the commissioner as
329	329	consistent with this chapter.
330	330	(h) The corporation is subject to the requirements of:
331	331	(1) the open meetings law, Chapter 551, Government
332	332	Code; and
333	333	(2) the public information law, Chapter 552,
334	334	Government Code.
335	335	(i) A board member may not vote on any matter in which the
336	336	member has a direct pecuniary interest. A board member is subject to
337	337	the same restrictions as a local public official under Chapter 171,
338	338	Local Government Code.
339	339	Sec. 80.011. ADMINISTRATIVE REVIEW. (a) The commissioner
340	340	by rule shall establish procedures for the informal review and
341	341	resolution of a claim arising out of certain acts taken by the
342	342	corporation under this chapter. Rules established under this
343	343	section shall include a designation of the acts that are subject to
344	344	review under this subsection and the appropriate remedial action,
345	345	as authorized by this chapter.
346	346	(b) A person dissatisfied with the department's informal
347	347	resolution of a claim under procedures adopted under Subsection (a)
348	348	may appeal the department's decision to the commissioner.
349	349	(c) A decision issued by the commissioner on a claim
350	350	appealed under Subsection (b) is the final administrative action of
351	351	the department and is subject to judicial review under Chapter
352	352	2001, Government Code.
353	353	(d) This section does not constitute a waiver of the state's
354	354	immunity from liability.
355	355	Sec. 80.012. CONTRACTING. (a) For a purchase of goods and
356	356	services under this chapter, the corporation may purchase goods and
357	357	services that provide the best value for the corporation.
358	358	(b) In determining the best value for the corporation, the
359	359	purchase price and whether the goods or services meet
360	360	specifications are the most important considerations. However, the
361	361	corporation may consider other relevant factors, including:
362	362	(1) the quality and reliability of the goods and
363	363	services;
364	364	(2) the delivery terms;
365	365	(3) indicators of probable vendor performance under
366	366	the contract, including:
367	367	(A) past vendor performance;
368	368	(B) the vendor's financial resources and ability
369	369	to perform;
370	370	(C) the vendor's experience or demonstrated
371	371	capability and responsibility; and
372	372	(D) the vendor's ability to provide reliable
373	373	maintenance agreements and support;
374	374	(4) the cost of any employee training associated with
375	375	a purchase; and
376	376	(5) other factors relevant to determining the best
377	377	value for the corporation in the context of a particular purchase.
378	378	Sec. 80.013. BOARD MEMBER COMPENSATION. Board members
379	379	serve without compensation but are entitled to reimbursement for
380	380	reasonable and necessary expenses incurred in the discharge of
381	381	their duties.
382	382	Sec. 80.014. DISCONTINUATION OF PROGRAM AND CORPORATION AND
383	383	DISPOSITION OF FUNDS ON DISCONTINUANCE. (a) On the determination
384	384	by the corporation that the Asian citrus psyllid suppression
385	385	program has been completed in all pest management zones established
386	386	under this chapter, the corporation shall provide notice of the
387	387	completion to the commissioner along with a request for
388	388	discontinuance of the control and suppression program and
389	389	collection of the assessment. Any request under this subsection
390	390	must include documentation supporting the fact that the Asian
391	391	citrus psyllid is no longer a threat to the state's citrus industry
392	392	and a plan for discontinuance of the program and assessment.
393	393	(b) The commissioner shall determine whether or not the
394	394	further suppression of the Asian citrus psyllid is necessary in the
395	395	pest management zones and approve or disapprove discontinuance of
396	396	the corporation and the plan for dissolution.
397	397	(c) On completion of the dissolution, the corporation shall
398	398	file a final report with the commissioner, including a financial
399	399	report, and submit all remaining funds into the trust of the
400	400	commissioner. Final books of the corporation shall be filed with
401	401	the commissioner and are subject to audit by the department.
402	402	(d) The commissioner shall pay from the corporation's
403	403	remaining funds all of the corporation's outstanding obligations.
404	404	(e) Funds remaining after payment under Subsection (d)
405	405	shall be returned to contributing citrus producers on a pro rata
406	406	basis.
407	407	(f) If 30 percent or more of the citrus producers eligible
408	408	to vote within a zone participating in the program present to the
409	409	commissioner a petition calling for a referendum of the qualified
410	410	voters on the proposition of discontinuing the program, the
411	411	commissioner shall conduct a referendum for that purpose.
412	412	(g) The commissioner shall give notice of the referendum,
413	413	the referendum shall be conducted, and the results shall be
414	414	declared in the manner provided by law for the original referendum
415	415	and election, with any necessary exceptions provided by rule of the
416	416	commissioner.
417	417	(h) The commissioner shall conduct the referendum before
418	418	the 90th day after the date the petition was filed, except that a
419	419	referendum may not be held before the second anniversary of any
420	420	other referendum in the pest management zone pertaining to
421	421	establishing or discontinuing the pest management zone.
422	422	(i) Approval of the proposition requires the same vote as
423	423	required in a referendum under Section 80.016(g). If the
424	424	proposition is approved, the suppression program is abolished and
425	425	the pest management zone ceases to exist on payment of all debts of
426	426	the pest management zone.
427	427	Sec. 80.015. ASSESSMENT REFERENDA. (a) The commissioner
428	428	shall propose the assessment needed in each pest management zone to
429	429	ensure the stability of the citrus industry by suppressing the
430	430	public nuisance caused by the Asian citrus psyllid.
431	431	(b) The commissioner shall propose in a referendum the:
432	432	(1) maximum assessment to be paid by citrus producers
433	433	having production in the pest management zone; and
434	434	(2) time for which the assessment will be made.
435	435	(c) With the commissioner's approval, the corporation may
436	436	make an assessment in a pest management zone at a level less than
437	437	the assessment approved by the referendum.
438	438	(d) The commissioner shall conduct an assessment referendum
439	439	under the procedures provided by Section 80.016.
440	440	(e) If an assessment referendum is approved, the
441	441	corporation may collect the assessment.
442	442	(f) An assessment levied on citrus producers in a pest
443	443	management zone may be applied only to:
444	444	(1) pest control in that zone;
445	445	(2) the corporation's operating costs, including
446	446	payments on debt incurred for a corporation activity, except that
447	447	the funds of one zone may not be used to pay another zone's bank
448	448	loans or debts; and
449	449	(3) the conducting of other programs consistent with
450	450	the declaration of policy stated in Section 80.001.
451	451	(g) The assessment shall be adequate and necessary to
452	452	achieve the goals of this chapter. The amount of the assessment
453	453	shall be determined by criteria established by the commissioner,
454	454	including:
455	455	(1) the extent of infestation;
456	456	(2) the amount of acreage planted;
457	457	(3) historical efforts to suppress;
458	458	(4) the growing season;
459	459	(5) epidemiology;
460	460	(6) historical weather conditions; and
461	461	(7) the costs and financing of the program.
462	462	(h) The commissioner shall give notice of and hold a public
463	463	hearing in the pest management zone regarding the proposed
464	464	assessment referendum. Before the referendum, the commissioner
465	465	shall review and approve:
466	466	(1) the amount of the assessment;
467	467	(2) the basis for the assessment;
468	468	(3) the time for payment of the assessment;
469	469	(4) the method of allocation of the assessment among
470	470	citrus producers;
471	471	(5) the restructuring and repayment schedule for any
472	472	preexisting debt; and
473	473	(6) the amount of debt to be incurred in the pest
474	474	management zone.
475	475	(i) The commissioner shall on a zone-by-zone basis set the
476	476	date on which assessments are due and payable.
477	477	(j) Each year, the commissioner shall review and approve the
478	478	corporation's operating budget.
479	479	(k) The corporation shall prepare and mail billing
480	480	statements to each citrus producer subject to the assessment that
481	481	state the amount due and the due date. The assessments shall be
482	482	sent to the corporation.
483	483	Sec. 80.016. CONDUCT OF BOARD ELECTIONS AND REFERENDA;
484	484	BALLOTING. (a) The commissioner shall conduct a referendum or
485	485	board election authorized under this chapter.
486	486	(b) The corporation shall bear all expenses incurred in
487	487	conducting a referendum or board election.
488	488	(c) The commissioner shall adopt rules for voting in board
489	489	elections and referenda to establish pest management zones. Rules
490	490	adopted under this subsection must include provisions for
491	491	determining:
492	492	(1) who is a citrus producer eligible to vote in an
493	493	election or referendum;
494	494	(2) whether a board member is elected by a plurality or
495	495	a majority of the votes cast; and
496	496	(3) the area from which each board member is elected.
497	497	(d) A citrus producer having citrus production in a proposed
498	498	or established pest management zone is entitled to:
499	499	(1) vote in a referendum concerning the pest
500	500	management zone; and
501	501	(2) elect board members to represent the pest
502	502	management zone.
503	503	(e) An eligible citrus producer may vote only once in a
504	504	referendum or board election.
505	505	(f) Ballots in a referendum or board election shall be
506	506	mailed directly to a central location, as determined by the
507	507	commissioner. A citrus producer eligible to vote in a referendum or
508	508	board election who has not received a ballot from the commissioner,
509	509	corporation, or another source shall be offered the option of
510	510	requesting a ballot by mail or obtaining a ballot at the office of
511	511	Texas AgriLife Extension or a government office distributing
512	512	ballots in a county in the proposed or established zone in which the
513	513	referendum or board election is conducted.
514	514	(g) A referendum is approved if:
515	515	(1) at least two-thirds of those voting vote in favor
516	516	of the referendum; or
517	517	(2) those voting in favor of the referendum cultivate
518	518	more than 50 percent, as determined by the commissioner, of the
519	519	citrus acreage in the relevant pest management zone.
520	520	(h) If a referendum under this chapter is not approved, the
521	521	commissioner may conduct another referendum. A referendum under
522	522	this subsection may not be held before the first anniversary of the
523	523	date on which the previous referendum on the same issue was held.
524	524	(i) A public hearing regarding the proposed suppression
525	525	program, including information regarding regulations to be
526	526	promulgated by the commissioner, may be held by the commissioner in
527	527	each of several locations in each Asian citrus psyllid pest
528	528	management zone.
529	529	(j) Individual voter information, including an individual's
530	530	vote in a referendum or board election conducted under this
531	531	section, is confidential and is not subject to disclosure under
532	532	Chapter 552, Government Code.
533	533	Sec. 80.017. PAYMENT OF ASSESSMENTS; ASSESSMENT LIENS. (a)
534	534	A citrus producer who fails to pay an assessment levied under this
535	535	chapter when due may be subject, after reasonable notice and
536	536	opportunity for hearing, to a penalty set by the commissioner. In
537	537	determining the amount of the penalty to be assessed, the
538	538	commissioner shall consider:
539	539	(1) the seriousness of the violation, including the
540	540	nature, circumstances, and extent of the violation;
541	541	(2) the history of previous violations;
542	542	(3) the amount necessary to deter future violations;
543	543	(4) the economic situation of the citrus producer; and
544	544	(5) any other matter that justice may require.
545	545	(b) The corporation may develop a compliance certificate
546	546	program to manage the payment and collection of an assessment
547	547	levied under this chapter. Under the program the corporation,
548	548	subject to department rules, may issue a compliance certificate for
549	549	citrus for which an assessment has been paid.
550	550	(c) In addition to any other remedies for the collection of
551	551	assessments and penalties, the commissioner may adopt rules
552	552	relating to the compliance certificate program for suppression
553	553	assessments. The rules may include:
554	554	(1) provisions establishing and relating to the
555	555	obligations of growers, packers, and buyers in due course of citrus
556	556	produced in active pest management zones to ensure that assessments
557	557	are paid within a prescribed time period;
558	558	(2) provisions allowing incentives in the form of
559	559	discounted assessments for growers who pay assessments within a
560	560	prescribed time period;
561	561	(3) provisions establishing penalties and interest
562	562	against growers who pay assessments after a prescribed time period;
563	563	and
564	564	(4) other provisions the commissioner determines are
565	565	proper.
566	566	(d) In addition to any other remedies for the collection of
567	567	assessments and penalties, an assessment lien in favor of the
568	568	corporation attaches and is perfected 60 days after the date the
569	569	corporation mails notice of the assessment on citrus produced and
570	570	harvested that year from the acreage that is subject to the
571	571	assessment that is due and unpaid. An assessment lien is not an
572	572	agricultural lien for the purposes of Chapter 9, Business &
573	573	Commerce Code, and is not subject to the provisions of that chapter.
574	574	An assessment lien is subject to and preempted by the Food Security
575	575	Act of 1985 (7 U.S.C. Section 1631 et seq.) and shall be treated
576	576	under that Act in the same manner as a security interest created by
577	577	the seller. A buyer of citrus takes free of the assessment lien if
578	578	the buyer:
579	579	(1) receives a compliance certificate issued by the
580	580	corporation when the buyer purchases the citrus that certifies that
581	581	the assessment has been paid to the corporation;
582	582	(2) pays for the citrus by a check on which the
583	583	department is named as a joint payee;
584	584	(3) does not receive notice of the assessment lien as
585	585	required by the Food Security Act of 1985 (7 U.S.C. Section 1631 et
586	586	seq.); or
587	587	(4) buys the citrus from a person other than the
588	588	producer of the citrus.
589	589	(e) The corporation may assign, with the approval of the
590	590	commissioner, assessments or liens in favor of the corporation as
591	591	collateral for a loan to the corporation only if the proceeds of the
592	592	loan are designated for use in the pest management zone from which
593	593	the assessments or liens originated.
594	594	(f) If the department believes that a violation of this
595	595	section or a rule adopted under this section has occurred, the
596	596	department may investigate and, during normal business hours, audit
597	597	and inspect the records of the person who is the subject of the
598	598	investigation.
599	599	Sec. 80.018. EXEMPTION FROM ASSESSMENT PENALTIES. (a) The
600	600	commissioner by rule shall adopt criteria to exempt from payment of
601	601	an assessment penalty under Section 80.017 a citrus producer for
602	602	whom payment would impose an undue financial burden.
603	603	(b) A citrus producer is not eligible for an exemption under
604	604	this section for a year in which the amount computed by subtracting
605	605	the assessments and penalties due under this chapter from the
606	606	citrus producer's net income subject to federal income taxation in
607	607	the previous year is greater than $15,000.
608	608	(c) A citrus producer who applies for an exemption under
609	609	this section must use a form prescribed by the commissioner. A
610	610	citrus producer must file a separate application form for each year
611	611	for which the citrus producer claims an exemption.
612	612	(d) The commissioner may establish a payment plan for a
613	613	citrus producer applying for an exemption under this section.
614	614	(e) The commissioner shall promptly notify an applicant of
615	615	the determination regarding the applicant's request for an
616	616	exemption.
617	617	(f) If an exemption under this section is denied,
618	618	assessments and penalties for the year for which the application is
619	619	made are due on the later of:
620	620	(1) the date on which they would be due in the absence
621	621	of an application for exemption; or
622	622	(2) 30 days after the date the applicant receives
623	623	notice of the denial.
624	624	(g) In addition to the authority provided under Subsections
625	625	(a)-(f), the commissioner may reduce or waive an assessment penalty
626	626	as appropriate and necessary.
627	627	Sec. 80.019. ENTRY OF PREMISES; SUPPRESSION ACTIVITIES;
628	628	INSPECTIONS. The department, the corporation, or a designated
629	629	representative of either entity may enter citrus groves or other
630	630	premises to carry out the purposes of this chapter, which include
631	631	the treatment and monitoring of growing citrus or other host
632	632	plants. The department, the corporation, or a designated
633	633	representative of either entity may inspect groves or premises in
634	634	this state for the purpose of determining whether the property is
635	635	infested with the Asian citrus psyllid or citrus greening. An
636	636	inspection must be conducted during reasonable daylight hours. The
637	637	department shall give notice by publication of the planned schedule
638	638	of dates for entry by the department, the corporation, or a
639	639	designated representative of either entity, to the owner or
640	640	occupant of the groves or premises to carry out the purposes of this
641	641	chapter, including treatment, monitoring, or inspection functions.
642	642	The department shall publish notice of the planned schedule to
643	643	enter the groves or premises in a newspaper of general circulation
644	644	in the pest management zone not less than once a week for two weeks
645	645	immediately before the scheduled dates of entry. In addition to the
646	646	notice published by the department, the corporation shall post
647	647	notice of the planned schedule to enter groves or premises to carry
648	648	out the purposes of this chapter at the county courthouse of each
649	649	county in the pest management zone not later than the 15th day
650	650	before the planned dates of entry.
651	651	Sec. 80.020. AUTHORITY TO PROHIBIT PLANTING OF CITRUS AND
652	652	REQUIRE PARTICIPATION IN SUPPRESSION PROGRAM. (a) The
653	653	commissioner may adopt reasonable rules regarding areas where
654	654	citrus may not be planted in a pest management zone if there is
655	655	reason to believe planting will jeopardize the success of the
656	656	program or present a hazard to public health or safety.
657	657	(b) The commissioner may adopt rules requiring all growers
658	658	of citrus in a pest management zone to participate in an Asian
659	659	citrus psyllid suppression program and growers of commercial citrus
660	660	to participate in pest and disease management programs that include
661	661	cost sharing as required by the rules.
662	662	(c) Notice of a prohibition or requirement shall be given by
663	663	publication for one day each week for three successive weeks in a
664	664	newspaper having general circulation in the affected area.
665	665	(d) The commissioner may adopt a reasonable schedule of
666	666	penalty fees to be assessed against growers in a designated pest
667	667	management zone who do not meet the requirements of the rules issued
668	668	by the commissioner relating to reporting of acreage and
669	669	participation in cost sharing. A penalty fee may not exceed $50 per
670	670	acre.
671	671	Sec. 80.021. AUTHORITY FOR DESTRUCTION OR TREATMENT OF
672	672	CITRUS IN PEST MANAGEMENT ZONES; COMPENSATION PAYABLE. The
673	673	department may destroy or treat, and establish procedures for the
674	674	purchase and destruction of, citrus plants or hosts in pest
675	675	management zones if the department determines the action is
676	676	necessary to carry out the purposes of this chapter. The department
677	677	is not liable to the owner or lessee for the destruction of or
678	678	injury to any citrus that was planted in a pest management zone
679	679	after the date notice is published as required by this chapter. The
680	680	corporation is liable for the destruction of citrus if the citrus
681	681	was planted in a pest management zone before the date that notice is
682	682	published.
683	683	Sec. 80.022. AUTHORITY TO ADOPT RULES. (a) The
684	684	commissioner shall adopt rules to protect individuals, livestock,
685	685	wildlife, and honeybee colonies on any premises in a pest
686	686	management zone on which citrus plants are being grown that have
687	687	been or are being treated to control or suppress the Asian citrus
688	688	psyllid and citrus greening.
689	689	(b) Rules adopted under this section shall establish the
690	690	criteria by which the corporation develops its procedures and
691	691	methods of treatment, which shall:
692	692	(1) establish a methodology for determining when Asian
693	693	citrus psyllid population levels have reached economic
694	694	significance or when citrus greening is present;
695	695	(2) establish an effective treatment regimen that
696	696	seeks to provide the least possible risk to workers, the public, and
697	697	the environment;
698	698	(3) minimize the effects of the use of pesticides on
699	699	long-term control methods, including but not limited to the effect
700	700	a particular pesticide may have on biological controls;
701	701	(4) establish methods for monitoring Asian citrus
702	702	psyllids, citrus greening, and secondary pests;
703	703	(5) establish methods for verifying pesticide use
704	704	reduction; and
705	705	(6) consider the acute and chronic toxicity of
706	706	particular pesticides and the quantity of particular pesticides
707	707	needed. Pest management zone treatment plans may take into account
708	708	the potential for the use of smaller quantities of more toxic
709	709	substances to result in fewer health and environmental risks than
710	710	larger quantities of less toxic substances.
711	711	(c) The commissioner may adopt other reasonable rules
712	712	necessary to carry out the purposes of this chapter. All rules
713	713	issued under this chapter must be adopted and published in
714	714	accordance with the laws of this state.
715	715	(d) An advisory committee may be established to assist the
716	716	commissioner in the development of rules under this section. The
717	717	advisory committee may be composed of:
718	718	(1) three citrus producers from the commercial citrus
719	719	growing area of the state, appointed by the commissioner;
720	720	(2) three entomologists with knowledge of the
721	721	principles of integrated pest management, at least one of whom has
722	722	special knowledge of nonchemical or biological pest control,
723	723	appointed by the commissioner;
724	724	(3) two individuals with experience representing the
725	725	general interests of the environment, appointed by the chair of the
726	726	Texas Commission on Environmental Quality;
727	727	(4) an environmental engineer with expert knowledge of
728	728	ground and surface water protection from contamination, appointed
729	729	by the chair of the Texas Commission on Environmental Quality;
730	730	(5) a toxicologist, appointed by the commissioner of
731	731	state health services; and
732	732	(6) an individual with experience representing the
733	733	general interests of consumers and an individual with experience
734	734	representing the general interests of agricultural workers,
735	735	appointed by the governor.
736	736	Sec. 80.023. REPORTS. Each person in an active pest
737	737	management zone growing citrus in this state shall furnish to the
738	738	corporation on forms supplied by the corporation information that
739	739	the corporation requires concerning the size and location of all
740	740	commercial citrus orchards and of noncommercial citrus grown for
741	741	ornamental or other purposes. The corporation may provide an
742	742	incentive for early and timely reporting.
743	743	Sec. 80.024. DOCUMENTING REGULATED ARTICLES. To implement
744	744	this chapter, the department may issue or authorize issuance of:
745	745	(1) a certificate that indicates that a regulated
746	746	article is not infested with the Asian citrus psyllid; and
747	747	(2) a permit that provides for the movement of a
748	748	regulated article to a restricted destination for limited handling,
749	749	use, or processing.
750	750	Sec. 80.025. COOPERATIVE PROGRAMS AUTHORIZED. (a) The
751	751	corporation may carry out programs to destroy and manage the Asian
752	752	citrus psyllid and citrus greening in this state by cooperating
753	753	through written agreements, as approved by the commissioner, with:
754	754	(1) an agency of the federal government;
755	755	(2) a state agency;
756	756	(3) an appropriate agency of a foreign country
757	757	contiguous to the affected area to the extent allowed by federal
758	758	law;
759	759	(4) a person who is engaged in growing, processing,
760	760	marketing, or handling citrus;
761	761	(5) a group of persons in this state involved in
762	762	similar programs to carry out the purposes of this chapter; or
763	763	(6) an appropriate state agency of another state
764	764	contiguous to the affected area, to the extent allowed by federal
765	765	law, the law of the contiguous state, and the law of this state.
766	766	(b) An agreement entered into under this section may provide
767	767	for cost sharing and for division of duties and responsibilities
768	768	under this chapter and may include other provisions to carry out the
769	769	purposes of this chapter.
770	770	Sec. 80.026. ORGANIC CITRUS PRODUCERS. (a) The
771	771	commissioner shall develop rules and procedures to:
772	772	(1) protect the eligibility of organic citrus
773	773	producers to be certified by the commissioner;
774	774	(2) ensure that organic and transitional
775	775	certifications by the commissioner continue to meet national
776	776	certification standards in order for organic citrus to maintain
777	777	international marketability; and
778	778	(3) in all events maintain the effectiveness of the
779	779	Asian citrus psyllid suppression program and citrus greening
780	780	management administered under this chapter.
781	781	(b) The board may not treat or require treatment of organic
782	782	citrus groves with chemicals that are not approved for use on
783	783	certified organic citrus. Rules adopted under Subsection (a) may
784	784	provide indemnity for the organic citrus producers for reasonable
785	785	losses that result from a prohibition of production of organic
786	786	citrus or from any requirement of destruction of organic citrus.
787	787	Sec. 80.027. PENALTIES. (a) A person who violates this
788	788	chapter or a rule adopted under this chapter or who alters, forges,
789	789	counterfeits, or uses without authority a certificate, permit, or
790	790	other document issued under this chapter or under a rule adopted
791	791	under this chapter commits an offense.
792	792	(b) An offense under this section is a Class C misdemeanor.
793	793	(c) If the commissioner determines that a violation of this
794	794	chapter or a rule adopted under this chapter has occurred, the
795	795	commissioner may request that the attorney general or the county or
796	796	district attorney of the county in which the alleged violation
797	797	occurred or is occurring file suit for civil, injunctive, or other
798	798	appropriate relief.
799	799	Sec. 80.028. SUNSET PROVISION. (a) The board of directors
800	800	of the official citrus producers' pest and disease management
801	801	corporation is subject to Chapter 325, Government Code (Texas
802	802	Sunset Act). Unless continued in existence as provided by that
803	803	chapter, the board is abolished and this chapter expires September
804	804	1, 2021.
805	805	(b) The commissioner may order the dissolution of the
806	806	corporation at any time the commissioner determines that the
807	807	purposes of this chapter have been fulfilled or that the
808	808	corporation is inoperative and abandoned. Dissolution shall be
809	809	conducted in accordance with Section 80.014.
810	810	(c) If the corporation is abolished or the suppression
811	811	program discontinued for any reason, assessments approved, levied,
812	812	or otherwise collectible on the date of abolishment remain valid as
813	813	necessary to pay the financial obligations of the corporation.
814	814	Sec. 80.029. ANNUAL REPORT. The board shall issue to the
815	815	commissioner and the appropriate oversight committee in the house
816	816	of representatives an annual report detailing its efforts to carry
817	817	out the purposes of this chapter.
818	818	Sec. 80.030. EXEMPTION TAXATION. All payments,
819	819	contributions, funds, and assessments received or held by the
820	820	corporation under this chapter are exempt from state or local
821	821	taxation, levies, sales, and any other process and are
822	822	unassignable.
823	823	Sec. 80.031. USE OF BIO-INTENSIVE CONTROLS. (a) The
824	824	commissioner shall develop and adopt rules to allow a citrus
825	825	producer in a suppression program to use biological, botanical, or
826	826	other nonsynthetic pest control methods. In developing rules, the
827	827	commissioner shall consider:
828	828	(1) scientific studies and field trials of the
829	829	effectiveness of a proposed alternative control method;
830	830	(2) the feasibility of using a proposed alternative
831	831	control technique within a particular region;
832	832	(3) the degree of monitoring necessary to establish
833	833	the success of the use of a proposed alternative control; and
834	834	(4) methods to prevent the use of substances that
835	835	would impede the use of alternative controls and the promotion of
836	836	beneficial insect populations.
837	837	(b) A citrus producer that chooses to use an alternative
838	838	method of control as provided in Subsection (a) shall notify the
839	839	board. The board and the citrus producer shall coordinate their
840	840	actions to prevent the use of substances that would impede the use
841	841	of alternative controls and the promotion of beneficial insect
842	842	populations.
843	843	(c) The citrus producer shall pay any additional cost of
844	844	bio-intensive control in addition to any assessment.
845	845	Sec. 80.032. VENUE. Venue for an action arising out of this
846	846	chapter in which the corporation is a party is in Travis County.
847	847	SECTION 2. This Act takes effect September 1, 2009.