Texas 2009 - 81st Regular

Texas House Bill HB4578 Latest Draft

Bill / House Committee Report Version Filed 02/01/2025

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                            81R25712 BEF-F
 By: Martinez H.B. No. 4578
 Substitute the following for H.B. No. 4578:
 By: Anderson C.S.H.B. No. 4578


 A BILL TO BE ENTITLED
 AN ACT
 relating to the establishment of the official citrus producers'
 pest and disease management corporation; providing penalties.
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 SECTION 1. Subtitle B, Title 5, Agriculture Code, is
 amended by adding Chapter 80 to read as follows:
 CHAPTER 80.  OFFICIAL CITRUS PRODUCERS' PEST AND DISEASE
 MANAGEMENT CORPORATION
 Sec. 80.001.  FINDINGS AND DECLARATION OF POLICY.  (a)  The
 legislature finds that:
 (1)  the insect known as the Asian citrus psyllid and
 the disease known as citrus greening are public nuisances and
 menaces to the citrus industry, and their control and suppression
 is a public necessity;
 (2)  because of the natural migration patterns of the
 Asian citrus psyllid, the control and suppression of the nuisance
 can best be accomplished by dividing the commercial citrus-growing
 areas into separate zones so that integrated pest management
 programs may be developed for each zone;
 (3)  there is a need for a quasi-governmental entity
 acting under the supervision and control of the commissioner whose
 members are actual citrus producers who would be represented on the
 board of the entity by directors elected by them to manage control
 and suppression programs and to furnish expertise in the field of
 insect control and suppression, because such an entity would
 enhance the interest and participation of citrus producers in the
 program;
 (4)  citrus producers, in partnership with the state
 and federal governments, have made significant investments toward
 the suppression of these pests and disease in this state; and
 (5)  it is essential to the well-being of the citrus
 industry and the agricultural economy of this state that the
 investments of the citrus producers and the state and federal
 governments be protected.
 (b)  It is the intent of the legislature that the program of
 control and suppression of the Asian citrus psyllid be carried out
 with the best available integrated pest management techniques.
 (c)  The department may recover costs for administration of
 this chapter.
 Sec. 80.002.  DESIGNATION OF ENTITY TO CARRY OUT ASIAN
 CITRUS PSYLLID AND CITRUS GREENING CONTROL AND SUPPRESSION.  (a)
 The Texas Citrus Pest and Disease Management Corporation, Inc., a
 Texas nonprofit corporation, shall be recognized by the department
 as the entity to plan, carry out, and operate suppression programs
 to manage and control the Asian citrus psyllid and citrus greening
 in citrus plants in the state under the supervision of the
 department as provided by this chapter.
 (b)  The commissioner may terminate the corporation's
 designation as the entity recognized to carry out Asian citrus
 psyllid control and management by giving 45 days' written notice to
 the corporation and by designating a successor entity. If the
 commissioner designates a successor to the corporation, the
 successor has all the powers and duties of the corporation under
 this chapter. Any successor to the corporation shall assume and
 shall be responsible for all obligations and liabilities relating
 to any notes, security agreements, assignments, loan agreements,
 and any other contracts or other documents entered into by the
 corporation with or for the benefit of any financial institution or
 its predecessor, successor, or assignee.
 Sec. 80.003. DEFINITIONS. In this chapter:
 (1)  "Board" means the board of directors of the Texas
 Citrus Pest and Disease Management Corporation, Inc.
 (2)  "Asian citrus psyllid" means Diaphorina citri
 Kuwayama.
 (3)  "Commissioner" means the commissioner of
 agriculture.
 (4) "Citrus" means:
 (A) a citrus plant;
 (B)  a part of a citrus plant, including trees,
 limbs, flowers, roots, and leaves; or
 (C) citrus products.
 (5)  "Citrus greening" means the disease caused by the
 Asian citrus psyllid.
 (6)  "Citrus producer" means a person who grows citrus
 and receives income from the sale of citrus.  The term includes an
 individual who as owner, landlord, tenant, or sharecropper is
 entitled to share in the citrus grown and available for marketing
 from a farm or to share in the proceeds from the sale of the citrus
 from the farm.
 (7)  "Suppression" means control of the numbers and
 migration of the Asian citrus psyllid to the extent that the
 commissioner does not consider further management of the Asian
 citrus psyllid necessary to prevent economic loss to citrus
 producers.
 (8)  "Pest management zone" means a geographic area
 designated by the commissioner in accordance with Section 80.005 in
 which citrus producers by referendum approve their participation in
 a citrus pest control program.
 (9)  "Corporation" means the Texas Citrus Pest and
 Disease Management Corporation, Inc., a Texas nonprofit
 corporation.
 (10)  "Host" means a plant or plant product in which the
 Asian citrus psyllid is capable of completing any portion of its
 life cycle.
 (11)  "Infested" means the presence of the Asian citrus
 psyllid in any life stage or the existence of generally accepted
 entomological evidence from which it may be concluded with
 reasonable certainty that the Asian citrus psyllid is present.
 (12)  "Integrated pest management" means the
 coordinated use of pest and environmental information with
 available pest control methods, including pesticides, natural
 predator controls, cultural farming practices, and climatic
 conditions, to prevent unacceptable levels of pest damage by the
 most economical means and with the least possible hazard to people,
 property, and the environment.
 (13)  "Regulated article" means an article carrying or
 capable of carrying the Asian citrus psyllid, including citrus
 plants, nursery plants, citrus rootstock, or other hosts.
 Sec. 80.004.  ADVISORY COMMITTEES.  (a)  The commissioner
 may appoint an advisory committee for an existing pest management
 zone or an area of the state that is to be considered by the
 commissioner for designation as or inclusion in a pest management
 zone. The committee shall gather advice, input, and guidance from
 citrus producers from the area represented by the committee
 concerning the interest in and concerns about the implementation of
 this chapter.
 (b)  Each advisory committee may consider and make
 recommendations to the commissioner and the corporation
 concerning:
 (1)  the geographic boundaries for a proposed pest
 management zone;
 (2)  the amount of local interest in operating a
 suppression program;
 (3)  the basis and amount of an assessment necessary to
 support a suppression program;
 (4)  ongoing implementation of a suppression program
 approved by growers in a pest management zone; and
 (5)  any other matter requested by the commissioner or
 the corporation.
 (c)  Each advisory committee appointed under this section
 must include a sufficient number of citrus producers to ensure
 adequate representation across the pest management zone and other
 persons as determined by the commissioner.
 (d)  An advisory committee established under this section is
 subject to Chapters 551 and 552, Government Code.
 Sec. 80.005.  CREATION OF PEST MANAGEMENT ZONES.  (a)  The
 commissioner by rule may designate an area of this state as a
 proposed pest management zone.
 (b)  The commissioner may hold a public hearing in the
 proposed pest management zone to discuss the proposed geographic
 boundaries of the zone. The public hearing may include any other
 topic allowed under this chapter.
 (c)  After the adoption of a rule under Subsection (a), the
 commissioner shall conduct a referendum under Section 80.006.
 Sec. 80.006.  PEST MANAGEMENT ZONE REFERENDA.  (a)  The
 commissioner shall conduct a referendum in each proposed pest
 management zone to determine whether citrus producers want to
 establish a pest management zone.
 (b)  Pest management zone referenda shall be conducted under
 the procedures provided by Section 80.016.
 (c)  A proposed pest management zone referendum ballot must
 include or be accompanied by information about the proposed pest
 management zone, including:
 (1)  a statement of the purpose of the Asian citrus
 psyllid suppression program;
 (2)  the geographic area included in the proposed pest
 management zone;
 (3)  a general summary of rules adopted by the
 commissioner under Sections 80.016, 80.020, and 80.022, including a
 description of:
 (A) citrus producer responsibilities; and
 (B)  penalties for noncompliance with rules
 adopted under this chapter; and
 (4)  an address and toll-free telephone number that a
 citrus producer may use to request more information about the
 referendum or the Asian citrus psyllid suppression program.
 (d)  If a referendum to establish a pest management zone is
 not approved, the concurrent election of a board member from the
 proposed pest management zone under Section 80.007 has no effect,
 and the commissioner shall appoint a representative to the board
 from the area.
 (e)  The corporation may request the commissioner to call
 additional referenda in a proposed pest management zone in which a
 referendum has not been approved.  An additional pest management
 zone referendum and concurrent board election may not be held
 before the first anniversary of the date of the preceding
 referendum.
 (f)  After the approval of any referendum, the eligible
 voters shall be allowed, by subsequent referenda, to vote on
 whether to continue their assessments.  The requirements for an
 initial referendum must be complied with in a subsequent
 referendum.
 Sec. 80.007.  BOARD ELECTIONS.  (a)  The initial election for
 board members from a proposed pest management zone shall be held
 concurrently with a pest management zone referendum held under
 Section 80.006.  Each pest management zone must be represented on
 the board and remain represented on the board until suppression
 operations are concluded and all debt of the pest management zone is
 paid.
 (b)  A board election shall be conducted under the procedures
 provided by this section and Section 80.016.
 (c)  A citrus producer who is eligible to vote in a
 referendum or election under this chapter is eligible to be a
 candidate for and member of the board if the person has at least
 seven years of experience as a citrus producer and otherwise meets
 the qualifications for the office.
 (d)  A citrus producer who wants to be a candidate for the
 board must meet the qualifications for board membership and file an
 application with the commissioner. The application must be:
 (1)  filed not later than the 30th day before the date
 set for the board election;
 (2) on a form approved by the commissioner; and
 (3)  signed by at least 10 citrus producers who are
 eligible to vote in the board election.
 (e)  On receipt of an application and verification that the
 application meets the requirements of Subsection (d), an
 applicant's name shall be placed on the ballot for the board
 election.
 (f)  An eligible voter may vote for a citrus producer whose
 name does not appear on the official ballot by writing that person's
 name on the ballot.
 (g)  A board election must be preceded by at least 45 days'
 notice published in one or more newspapers published and
 distributed in the proposed or established pest management zone.
 The notice shall be published not less than once a week for three
 consecutive weeks. Not later than the 45th day before the date of
 the election, direct written notice of the election shall be given
 to each AgriLife Extension agent in the pest management zone.
 (h)  Each board member shall be sworn into office by a
 representative of the commissioner by taking the oath of office
 required for elected officers of the state.
 Sec. 80.008.  COMPOSITION OF BOARD.  (a)  The board is
 composed of members elected from each pest management zone
 established by referendum, members appointed by the commissioner
 from other citrus-growing areas of the state, and members appointed
 by the commissioner under Subsection (b).  The commissioner shall
 appoint an initial board composed of 15 members. Except as provided
 by Subsection (b), the term of each board position may not exceed
 four years.
 (b)  In making appointments under this section, the
 commissioner shall appoint the following board members, selected
 from a variety of citrus-growing regions of the state, for
 four-year terms:
 (1) an agricultural lender;
 (2)  an independent entomologist who is an integrated
 pest management specialist;
 (3)  two representatives from industries allied with
 citrus production; and
 (4) a representative from the pest control industry.
 (c)  The commissioner may change the number of board
 positions or the pest management zone representation on the board
 to accommodate changes in the number of pest management zones.  A
 change under this subsection may not contravene another provision
 of this chapter.
 (d)  A vacancy on the board shall be filled by appointment by
 the commissioner for the unexpired term.
 (e)  On 30 days' notice and opportunity for hearing, the
 commissioner may replace any unelected board member of the
 corporation.
 Sec. 80.009.  POWERS OF BOARD AND COMMISSIONER.  (a)  The
 board may:
 (1)  conduct programs consistent with the declaration
 of policy stated in Section 80.001;
 (2)  accept, as necessary to implement this chapter,
 gifts and grants;
 (3)  borrow money, with the approval of the
 commissioner, as necessary to execute this chapter;
 (4)  take other action and exercise other authority as
 necessary to execute any act authorized by this chapter or the Texas
 Non-Profit Corporation Act (Article 1396-1.01 et seq., Vernon's
 Texas Civil Statutes); and
 (5)  form an advisory committee composed of individuals
 from this state, other states, or other countries and change
 membership on the committee, as necessary. Any advisory committee
 created under this subdivision for the purpose of establishing
 treatment methods shall include among its members persons with
 knowledge of the effects of different treatments on the health of
 agricultural workers, the local population, and the ecosystem,
 including but not limited to the effects of a particular method of
 treatment on beneficial organisms and wildlife, the potential for
 secondary infestations from nontarget pests, and the potential for
 pest resistance to particular methods of treatment.
 (b)  On petition of at least 30 percent of the citrus
 producers eligible to vote in the proposed area, the commissioner
 may, or at the commissioner's discretion, the commissioner by rule
 may add an area to a pest management zone or transfer an area or
 county from one zone to another zone if:
 (1)  citrus production has begun or could begin in the
 area;
 (2)  the area is adjacent to a pest management zone or
 is in an area with biological characteristics similar to the pest
 management zone; and
 (3)  the addition is approved in a referendum held in
 the area.
 (c)  The board must adopt a procurement policy, subject to
 approval by the commissioner, outlining the procedures to be used
 in purchasing.
 (d)  The commissioner at any time may inspect the books and
 other financial records of the corporation.
 Sec. 80.010.  BOARD DUTIES.  (a)  The board shall have an
 annual independent audit of the books, records of account, and
 minutes of proceedings maintained by the corporation prepared by an
 independent certified public accountant or a firm of independent
 certified public accountants.  The audit must include information
 for each zone in which a suppression program has been conducted
 under this chapter.  The audit shall be filed with the board, the
 commissioner, and the state auditor and be made available to the
 public by the corporation or the commissioner.  The transactions of
 the corporation are subject to audit by the state auditor in
 accordance with Chapter 321, Government Code.
 (b)  Not later than the 45th day after the last day of the
 fiscal year, the board shall submit to the commissioner a report
 itemizing all income and expenditures and describing all activities
 of the corporation during the fiscal year.
 (c)  The corporation shall provide fidelity bonds in amounts
 determined by the board for employees or agents who handle money for
 the corporation.
 (d)  The corporation and the board are state agencies for the
 following purposes only:
 (1)  exemption from taxation, including exemption from
 sales and use taxes and taxes under Chapter 152, Tax Code; and
 (2) exemption from vehicle registration fees.
 (e)  Funds collected by the corporation are not state funds
 and are not required to be deposited in the state treasury.  The
 corporation shall deposit all money collected under this chapter in
 a bank or other depository approved by the commissioner.
 (f)  The board shall collect data on the type and quantity of
 pesticides used in accordance with this chapter.  The data shall be
 filed with the commissioner.
 (g)  All money collected under this chapter shall be used
 solely to finance programs approved by the commissioner as
 consistent with this chapter.
 (h) The corporation is subject to the requirements of:
 (1)  the open meetings law, Chapter 551, Government
 Code; and
 (2)  the public information law, Chapter 552,
 Government Code.
 (i)  A board member may not vote on any matter in which the
 member has a direct pecuniary interest. A board member is subject to
 the same restrictions as a local public official under Chapter 171,
 Local Government Code.
 Sec. 80.011.  ADMINISTRATIVE REVIEW.  (a)  The commissioner
 by rule shall establish procedures for the informal review and
 resolution of a claim arising out of certain acts taken by the
 corporation under this chapter.  Rules established under this
 section shall include a designation of the acts that are subject to
 review under this subsection and the appropriate remedial action,
 as authorized by this chapter.
 (b)  A person dissatisfied with the department's informal
 resolution of a claim under procedures adopted under Subsection (a)
 may appeal the department's decision to the commissioner.
 (c)  A decision issued by the commissioner on a claim
 appealed under Subsection (b) is the final administrative action of
 the department and is subject to judicial review under Chapter
 2001, Government Code.
 (d)  This section does not constitute a waiver of the state's
 immunity from liability.
 Sec. 80.012.  CONTRACTING.  (a)  For a purchase of goods and
 services under this chapter, the corporation may purchase goods and
 services that provide the best value for the corporation.
 (b)  In determining the best value for the corporation, the
 purchase price and whether the goods or services meet
 specifications are the most important considerations. However, the
 corporation may consider other relevant factors, including:
 (1)  the quality and reliability of the goods and
 services;
 (2) the delivery terms;
 (3)  indicators of probable vendor performance under
 the contract, including:
 (A) past vendor performance;
 (B)  the vendor's financial resources and ability
 to perform;
 (C)  the vendor's experience or demonstrated
 capability and responsibility; and
 (D)  the vendor's ability to provide reliable
 maintenance agreements and support;
 (4)  the cost of any employee training associated with
 a purchase; and
 (5)  other factors relevant to determining the best
 value for the corporation in the context of a particular purchase.
 Sec. 80.013.  BOARD MEMBER COMPENSATION.  Board members
 serve without compensation but are entitled to reimbursement for
 reasonable and necessary expenses incurred in the discharge of
 their duties.
 Sec. 80.014.  DISCONTINUATION OF PROGRAM AND CORPORATION AND
 DISPOSITION OF FUNDS ON DISCONTINUANCE.  (a)  On the determination
 by the corporation that the Asian citrus psyllid suppression
 program has been completed in all pest management zones established
 under this chapter, the corporation shall provide notice of the
 completion to the commissioner along with a request for
 discontinuance of the control and suppression program and
 collection of the assessment.  Any request under this subsection
 must include documentation supporting the fact that the Asian
 citrus psyllid is no longer a threat to the state's citrus industry
 and a plan for discontinuance of the program and assessment.
 (b)  The commissioner shall determine whether or not the
 further suppression of the Asian citrus psyllid is necessary in the
 pest management zones and approve or disapprove discontinuance of
 the corporation and the plan for dissolution.
 (c)  On completion of the dissolution, the corporation shall
 file a final report with the commissioner, including a financial
 report, and submit all remaining funds into the trust of the
 commissioner. Final books of the corporation shall be filed with
 the commissioner and are subject to audit by the department.
 (d)  The commissioner shall pay from the corporation's
 remaining funds all of the corporation's outstanding obligations.
 (e)  Funds remaining after payment under Subsection (d)
 shall be returned to contributing citrus producers on a pro rata
 basis.
 (f)  If 30 percent or more of the citrus producers eligible
 to vote within a zone participating in the program present to the
 commissioner a petition calling for a referendum of the qualified
 voters on the proposition of discontinuing the program, the
 commissioner shall conduct a referendum for that purpose.
 (g)  The commissioner shall give notice of the referendum,
 the referendum shall be conducted, and the results shall be
 declared in the manner provided by law for the original referendum
 and election, with any necessary exceptions provided by rule of the
 commissioner.
 (h)  The commissioner shall conduct the referendum before
 the 90th day after the date the petition was filed, except that a
 referendum may not be held before the second anniversary of any
 other referendum in the pest management zone pertaining to
 establishing or discontinuing the pest management zone.
 (i)  Approval of the proposition requires the same vote as
 required in a referendum under Section 80.016(g).  If the
 proposition is approved, the suppression program is abolished and
 the pest management zone ceases to exist on payment of all debts of
 the pest management zone.
 Sec. 80.015.  ASSESSMENT REFERENDA.  (a)  The commissioner
 shall propose the assessment needed in each pest management zone to
 ensure the stability of the citrus industry by suppressing the
 public nuisance caused by the Asian citrus psyllid.
 (b) The commissioner shall propose in a referendum the:
 (1)  maximum assessment to be paid by citrus producers
 having production in the pest management zone; and
 (2) time for which the assessment will be made.
 (c)  With the commissioner's approval, the corporation may
 make an assessment in a pest management zone at a level less than
 the assessment approved by the referendum.
 (d)  The commissioner shall conduct an assessment referendum
 under the procedures provided by Section 80.016.
 (e)  If an assessment referendum is approved, the
 corporation may collect the assessment.
 (f)  An assessment levied on citrus producers in a pest
 management zone may be applied only to:
 (1) pest control in that zone;
 (2)  the corporation's operating costs, including
 payments on debt incurred for a corporation activity, except that
 the funds of one zone may not be used to pay another zone's bank
 loans or debts; and
 (3)  the conducting of other programs consistent with
 the declaration of policy stated in Section 80.001.
 (g)  The assessment shall be adequate and necessary to
 achieve the goals of this chapter.  The amount of the assessment
 shall be determined by criteria established by the commissioner,
 including:
 (1) the extent of infestation;
 (2) the amount of acreage planted;
 (3) historical efforts to suppress;
 (4) the growing season;
 (5) epidemiology;
 (6) historical weather conditions; and
 (7) the costs and financing of the program.
 (h)  The commissioner shall give notice of and hold a public
 hearing in the pest management zone regarding the proposed
 assessment referendum.  Before the referendum, the commissioner
 shall review and approve:
 (1) the amount of the assessment;
 (2) the basis for the assessment;
 (3) the time for payment of the assessment;
 (4)  the method of allocation of the assessment among
 citrus producers;
 (5)  the restructuring and repayment schedule for any
 preexisting debt; and
 (6)  the amount of debt to be incurred in the pest
 management zone.
 (i)  The commissioner shall on a zone-by-zone basis set the
 date on which assessments are due and payable.
 (j)  Each year, the commissioner shall review and approve the
 corporation's operating budget.
 (k)  The corporation shall prepare and mail billing
 statements to each citrus producer subject to the assessment that
 state the amount due and the due date.  The assessments shall be
 sent to the corporation.
 Sec. 80.016.  CONDUCT OF BOARD ELECTIONS AND REFERENDA;
 BALLOTING.  (a)  The commissioner shall conduct a referendum or
 board election authorized under this chapter.
 (b)  The corporation shall bear all expenses incurred in
 conducting a referendum or board election.
 (c)  The commissioner shall adopt rules for voting in board
 elections and referenda to establish pest management zones. Rules
 adopted under this subsection must include provisions for
 determining:
 (1)  who is a citrus producer eligible to vote in an
 election or referendum;
 (2)  whether a board member is elected by a plurality or
 a majority of the votes cast; and
 (3) the area from which each board member is elected.
 (d)  A citrus producer having citrus production in a proposed
 or established pest management zone is entitled to:
 (1)  vote in a referendum concerning the pest
 management zone; and
 (2)  elect board members to represent the pest
 management zone.
 (e)  An eligible citrus producer may vote only once in a
 referendum or board election.
 (f)  Ballots in a referendum or board election shall be
 mailed directly to a central location, as determined by the
 commissioner. A citrus producer eligible to vote in a referendum or
 board election who has not received a ballot from the commissioner,
 corporation, or another source shall be offered the option of
 requesting a ballot by mail or obtaining a ballot at the office of
 Texas AgriLife Extension or a government office distributing
 ballots in a county in the proposed or established zone in which the
 referendum or board election is conducted.
 (g) A referendum is approved if:
 (1)  at least two-thirds of those voting vote in favor
 of the referendum; or
 (2)  those voting in favor of the referendum cultivate
 more than 50 percent, as determined by the commissioner, of the
 citrus acreage in the relevant pest management zone.
 (h)  If a referendum under this chapter is not approved, the
 commissioner may conduct another referendum. A referendum under
 this subsection may not be held before the first anniversary of the
 date on which the previous referendum on the same issue was held.
 (i)  A public hearing regarding the proposed suppression
 program, including information regarding regulations to be
 promulgated by the commissioner, may be held by the commissioner in
 each of several locations in each Asian citrus psyllid pest
 management zone.
 (j)  Individual voter information, including an individual's
 vote in a referendum or board election conducted under this
 section, is confidential and is not subject to disclosure under
 Chapter 552, Government Code.
 Sec. 80.017.  PAYMENT OF ASSESSMENTS; ASSESSMENT LIENS.  (a)
 A citrus producer who fails to pay an assessment levied under this
 chapter when due may be subject, after reasonable notice and
 opportunity for hearing, to a penalty set by the commissioner. In
 determining the amount of the penalty to be assessed, the
 commissioner shall consider:
 (1)  the seriousness of the violation, including the
 nature, circumstances, and extent of the violation;
 (2) the history of previous violations;
 (3) the amount necessary to deter future violations;
 (4) the economic situation of the citrus producer; and
 (5) any other matter that justice may require.
 (b)  The corporation may develop a compliance certificate
 program to manage the payment and collection of an assessment
 levied under this chapter.  Under the program the corporation,
 subject to department rules, may issue a compliance certificate for
 citrus for which an assessment has been paid.
 (c)  In addition to any other remedies for the collection of
 assessments and penalties, the commissioner may adopt rules
 relating to the compliance certificate program for suppression
 assessments.  The rules may include:
 (1)  provisions establishing and relating to the
 obligations of growers, packers, and buyers in due course of citrus
 produced in active pest management zones to ensure that assessments
 are paid within a prescribed time period;
 (2)  provisions allowing incentives in the form of
 discounted assessments for growers who pay assessments within a
 prescribed time period;
 (3)  provisions establishing penalties and interest
 against growers who pay assessments after a prescribed time period;
 and
 (4)  other provisions the commissioner determines are
 proper.
 (d)  In addition to any other remedies for the collection of
 assessments and penalties, an assessment lien in favor of the
 corporation attaches and is perfected 60 days after the date the
 corporation mails notice of the assessment on citrus produced and
 harvested that year from the acreage that is subject to the
 assessment that is due and unpaid.  An assessment lien is not an
 agricultural lien for the purposes of Chapter 9, Business &
 Commerce Code, and is not subject to the provisions of that chapter.
 An assessment lien is subject to and preempted by the Food Security
 Act of 1985 (7 U.S.C. Section 1631 et seq.) and shall be treated
 under that Act in the same manner as a security interest created by
 the seller. A buyer of citrus takes free of the assessment lien if
 the buyer:
 (1)  receives a compliance certificate issued by the
 corporation when the buyer purchases the citrus that certifies that
 the assessment has been paid to the corporation;
 (2)  pays for the citrus by a check on which the
 department is named as a joint payee;
 (3)  does not receive notice of the assessment lien as
 required by the Food Security Act of 1985 (7 U.S.C. Section 1631 et
 seq.); or
 (4)  buys the citrus from a person other than the
 producer of the citrus.
 (e)  The corporation may assign, with the approval of the
 commissioner, assessments or liens in favor of the corporation as
 collateral for a loan to the corporation only if the proceeds of the
 loan are designated for use in the pest management zone from which
 the assessments or liens originated.
 (f)  If the department believes that a violation of this
 section or a rule adopted under this section has occurred, the
 department may investigate and, during normal business hours, audit
 and inspect the records of the person who is the subject of the
 investigation.
 Sec. 80.018.  EXEMPTION FROM ASSESSMENT PENALTIES.  (a)  The
 commissioner by rule shall adopt criteria to exempt from payment of
 an assessment penalty under Section 80.017 a citrus producer for
 whom payment would impose an undue financial burden.
 (b)  A citrus producer is not eligible for an exemption under
 this section for a year in which the amount computed by subtracting
 the assessments and penalties due under this chapter from the
 citrus producer's net income subject to federal income taxation in
 the previous year is greater than $15,000.
 (c)  A citrus producer who applies for an exemption under
 this section must use a form prescribed by the commissioner.  A
 citrus producer must file a separate application form for each year
 for which the citrus producer claims an exemption.
 (d)  The commissioner may establish a payment plan for a
 citrus producer applying for an exemption under this section.
 (e)  The commissioner shall promptly notify an applicant of
 the determination regarding the applicant's request for an
 exemption.
 (f)  If an exemption under this section is denied,
 assessments and penalties for the year for which the application is
 made are due on the later of:
 (1)  the date on which they would be due in the absence
 of an application for exemption; or
 (2)  30 days after the date the applicant receives
 notice of the denial.
 (g)  In addition to the authority provided under Subsections
 (a)-(f), the commissioner may reduce or waive an assessment penalty
 as appropriate and necessary.
 Sec. 80.019.  ENTRY OF PREMISES; SUPPRESSION ACTIVITIES;
 INSPECTIONS.  The department, the corporation, or a designated
 representative of either entity may enter citrus groves or other
 premises to carry out the purposes of this chapter, which include
 the treatment and monitoring of growing citrus or other host
 plants. The department, the corporation, or a designated
 representative of either entity may inspect groves or premises in
 this state for the purpose of determining whether the property is
 infested with the Asian citrus psyllid or citrus greening.  An
 inspection must be conducted during reasonable daylight hours.  The
 department shall give notice by publication of the planned schedule
 of dates for entry by the department, the corporation, or a
 designated representative of either entity, to the owner or
 occupant of the groves or premises to carry out the purposes of this
 chapter, including treatment, monitoring, or inspection functions.
 The department shall publish notice of the planned schedule to
 enter the groves or premises in a newspaper of general circulation
 in the pest management zone not less than once a week for two weeks
 immediately before the scheduled dates of entry. In addition to the
 notice published by the department, the corporation shall post
 notice of the planned schedule to enter groves or premises to carry
 out the purposes of this chapter at the county courthouse of each
 county in the pest management zone not later than the 15th day
 before the planned dates of entry.
 Sec. 80.020.  AUTHORITY TO PROHIBIT PLANTING OF CITRUS AND
 REQUIRE PARTICIPATION IN SUPPRESSION PROGRAM.  (a)  The
 commissioner may adopt reasonable rules regarding areas where
 citrus may not be planted in a pest management zone if there is
 reason to believe planting will jeopardize the success of the
 program or present a hazard to public health or safety.
 (b)  The commissioner may adopt rules requiring all growers
 of citrus in a pest management zone to participate in an Asian
 citrus psyllid suppression program and growers of commercial citrus
 to participate in pest and disease management programs that include
 cost sharing as required by the rules.
 (c)  Notice of a prohibition or requirement shall be given by
 publication for one day each week for three successive weeks in a
 newspaper having general circulation in the affected area.
 (d)  The commissioner may adopt a reasonable schedule of
 penalty fees to be assessed against growers in a designated pest
 management zone who do not meet the requirements of the rules issued
 by the commissioner relating to reporting of acreage and
 participation in cost sharing.  A penalty fee may not exceed $50 per
 acre.
 Sec. 80.021.  AUTHORITY FOR DESTRUCTION OR TREATMENT OF
 CITRUS IN PEST MANAGEMENT ZONES; COMPENSATION PAYABLE.  The
 department may destroy or treat, and establish procedures for the
 purchase and destruction of, citrus plants or hosts in pest
 management zones if the department determines the action is
 necessary to carry out the purposes of this chapter.  The department
 is not liable to the owner or lessee for the destruction of or
 injury to any citrus that was planted in a pest management zone
 after the date notice is published as required by this chapter.  The
 corporation is liable for the destruction of citrus if the citrus
 was planted in a pest management zone before the date that notice is
 published.
 Sec. 80.022.  AUTHORITY TO ADOPT RULES.  (a)  The
 commissioner shall adopt rules to protect individuals, livestock,
 wildlife, and honeybee colonies on any premises in a pest
 management zone on which citrus plants are being grown that have
 been or are being treated to control or suppress the Asian citrus
 psyllid and citrus greening.
 (b)  Rules adopted under this section shall establish the
 criteria by which the corporation develops its procedures and
 methods of treatment, which shall:
 (1)  establish a methodology for determining when Asian
 citrus psyllid population levels have reached economic
 significance or when citrus greening is present;
 (2)  establish an effective treatment regimen that
 seeks to provide the least possible risk to workers, the public, and
 the environment;
 (3)  minimize the effects of the use of pesticides on
 long-term control methods, including but not limited to the effect
 a particular pesticide may have on biological controls;
 (4)  establish methods for monitoring Asian citrus
 psyllids, citrus greening, and secondary pests;
 (5)  establish methods for verifying pesticide use
 reduction; and
 (6)  consider the acute and chronic toxicity of
 particular pesticides and the quantity of particular pesticides
 needed.  Pest management zone treatment plans may take into account
 the potential for the use of smaller quantities of more toxic
 substances to result in fewer health and environmental risks than
 larger quantities of less toxic substances.
 (c)  The commissioner may adopt other reasonable rules
 necessary to carry out the purposes of this chapter.  All rules
 issued under this chapter must be adopted and published in
 accordance with the laws of this state.
 (d)  An advisory committee may be established to assist the
 commissioner in the development of rules under this section.  The
 advisory committee may be composed of:
 (1)  three citrus producers from the commercial citrus
 growing area of the state, appointed by the commissioner;
 (2)  three entomologists with knowledge of the
 principles of integrated pest management, at least one of whom has
 special knowledge of nonchemical or biological pest control,
 appointed by the commissioner;
 (3)  two individuals with experience representing the
 general interests of the environment, appointed by the chair of the
 Texas Commission on Environmental Quality;
 (4)  an environmental engineer with expert knowledge of
 ground and surface water protection from contamination, appointed
 by the chair of the Texas Commission on Environmental Quality;
 (5)  a toxicologist, appointed by the commissioner of
 state health services; and
 (6)  an individual with experience representing the
 general interests of consumers and an individual with experience
 representing the general interests of agricultural workers,
 appointed by the governor.
 Sec. 80.023.  REPORTS.  Each person in an active pest
 management zone growing citrus in this state shall furnish to the
 corporation on forms supplied by the corporation information that
 the corporation requires concerning the size and location of all
 commercial citrus orchards and of noncommercial citrus grown for
 ornamental or other purposes. The corporation may provide an
 incentive for early and timely reporting.
 Sec. 80.024.  DOCUMENTING REGULATED ARTICLES.  To implement
 this chapter, the department may issue or authorize issuance of:
 (1)  a certificate that indicates that a regulated
 article is not infested with the Asian citrus psyllid; and
 (2)  a permit that provides for the movement of a
 regulated article to a restricted destination for limited handling,
 use, or processing.
 Sec. 80.025.  COOPERATIVE PROGRAMS AUTHORIZED.  (a)  The
 corporation may carry out programs to destroy and manage the Asian
 citrus psyllid and citrus greening in this state by cooperating
 through written agreements, as approved by the commissioner, with:
 (1) an agency of the federal government;
 (2) a state agency;
 (3)  an appropriate agency of a foreign country
 contiguous to the affected area to the extent allowed by federal
 law;
 (4)  a person who is engaged in growing, processing,
 marketing, or handling citrus;
 (5)  a group of persons in this state involved in
 similar programs to carry out the purposes of this chapter; or
 (6)  an appropriate state agency of another state
 contiguous to the affected area, to the extent allowed by federal
 law, the law of the contiguous state, and the law of this state.
 (b)  An agreement entered into under this section may provide
 for cost sharing and for division of duties and responsibilities
 under this chapter and may include other provisions to carry out the
 purposes of this chapter.
 Sec. 80.026.  ORGANIC CITRUS PRODUCERS.  (a)  The
 commissioner shall develop rules and procedures to:
 (1)  protect the eligibility of organic citrus
 producers to be certified by the commissioner;
 (2)  ensure that organic and transitional
 certifications by the commissioner continue to meet national
 certification standards in order for organic citrus to maintain
 international marketability; and
 (3)  in all events maintain the effectiveness of the
 Asian citrus psyllid suppression program and citrus greening
 management administered under this chapter.
 (b)  The board may not treat or require treatment of organic
 citrus groves with chemicals that are not approved for use on
 certified organic citrus. Rules adopted under Subsection (a) may
 provide indemnity for the organic citrus producers for reasonable
 losses that result from a prohibition of production of organic
 citrus or from any requirement of destruction of organic citrus.
 Sec. 80.027.  PENALTIES.  (a)  A person who violates this
 chapter or a rule adopted under this chapter or who alters, forges,
 counterfeits, or uses without authority a certificate, permit, or
 other document issued under this chapter or under a rule adopted
 under this chapter commits an offense.
 (b) An offense under this section is a Class C misdemeanor.
 (c)  If the commissioner determines that a violation of this
 chapter or a rule adopted under this chapter has occurred, the
 commissioner may request that the attorney general or the county or
 district attorney of the county in which the alleged violation
 occurred or is occurring file suit for civil, injunctive, or other
 appropriate relief.
 Sec. 80.028.  SUNSET PROVISION.  (a)  The board of directors
 of the official citrus producers' pest and disease management
 corporation is subject to Chapter 325, Government Code (Texas
 Sunset Act). Unless continued in existence as provided by that
 chapter, the board is abolished and this chapter expires September
 1, 2021.
 (b)  The commissioner may order the dissolution of the
 corporation at any time the commissioner determines that the
 purposes of this chapter have been fulfilled or that the
 corporation is inoperative and abandoned. Dissolution shall be
 conducted in accordance with Section 80.014.
 (c)  If the corporation is abolished or the suppression
 program discontinued for any reason, assessments approved, levied,
 or otherwise collectible on the date of abolishment remain valid as
 necessary to pay the financial obligations of the corporation.
 Sec. 80.029.  ANNUAL REPORT. The board shall issue to the
 commissioner and the appropriate oversight committee in the house
 of representatives an annual report detailing its efforts to carry
 out the purposes of this chapter.
 Sec. 80.030.  EXEMPTION TAXATION. All payments,
 contributions, funds, and assessments received or held by the
 corporation under this chapter are exempt from state or local
 taxation, levies, sales, and any other process and are
 unassignable.
 Sec. 80.031.  USE OF BIO-INTENSIVE CONTROLS. (a)  The
 commissioner shall develop and adopt rules to allow a citrus
 producer in a suppression program to use biological, botanical, or
 other nonsynthetic pest control methods. In developing rules, the
 commissioner shall consider:
 (1)  scientific studies and field trials of the
 effectiveness of a proposed alternative control method;
 (2)  the feasibility of using a proposed alternative
 control technique within a particular region;
 (3)  the degree of monitoring necessary to establish
 the success of the use of a proposed alternative control; and
 (4)  methods to prevent the use of substances that
 would impede the use of alternative controls and the promotion of
 beneficial insect populations.
 (b)  A citrus producer that chooses to use an alternative
 method of control as provided in Subsection (a) shall notify the
 board. The board and the citrus producer shall coordinate their
 actions to prevent the use of substances that would impede the use
 of alternative controls and the promotion of beneficial insect
 populations.
 (c)  The citrus producer shall pay any additional cost of
 bio-intensive control in addition to any assessment.
 Sec. 80.032.  VENUE. Venue for an action arising out of this
 chapter in which the corporation is a party is in Travis County.
 SECTION 2. This Act takes effect September 1, 2009.