Texas 2009 - 81st Regular

Texas Senate Bill SB1779 Compare Versions

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1	1	By: Hinojosa S.B. No. 1779
2	2	Substitute the following for S.B. No. 1779:
3	3	By: Heflin C.S.S.B. No. 1779
4	4
5	5
6	6	A BILL TO BE ENTITLED
7	7	AN ACT
8	8	relating to the establishment of the official citrus producers'
9	9	pest and disease management corporation; providing penalties.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Subtitle B, Title 5, Agriculture Code, is
12	12	amended by adding Chapter 80 to read as follows:
13	13	CHAPTER 80. OFFICIAL CITRUS PRODUCERS' PEST AND DISEASE
14	14	MANAGEMENT CORPORATION
15	15	Sec. 80.001. FINDINGS AND DECLARATION OF POLICY. (a) The
16	16	legislature finds that:
17	17	(1) the insect known as the Asian citrus psyllid and
18	18	the disease known as citrus greening are public nuisances and
19	19	menaces to the citrus industry, and their control and suppression
20	20	is a public necessity;
21	21	(2) because of the natural migration patterns of the
22	22	Asian citrus psyllid, the control and suppression of the nuisance
23	23	can best be accomplished by dividing the commercial citrus-growing
24	24	areas into separate zones so that integrated pest management
25	25	programs may be developed for each zone;
26	26	(3) there is a need for a quasi-governmental entity
27	27	acting under the supervision and control of the commissioner whose
28	28	members are actual citrus producers who would be represented on the
29	29	board of the entity by directors elected by them to manage control
30	30	and suppression programs and to furnish expertise in the field of
31	31	insect control and suppression, because such an entity would
32	32	enhance the interest and participation of citrus producers in the
33	33	program;
34	34	(4) citrus producers, in partnership with the state
35	35	and federal governments, have made significant investments toward
36	36	the suppression of these pests and disease in this state; and
37	37	(5) it is essential to the well-being of the citrus
38	38	industry and the agricultural economy of this state that the
39	39	investments of the citrus producers and the state and federal
40	40	governments be protected.
41	41	(b) It is the intent of the legislature that the program of
42	42	control and suppression of the Asian citrus psyllid be carried out
43	43	with the best available integrated pest management techniques.
44	44	(c) The department may recover costs for administration of
45	45	this chapter.
46	46	Sec. 80.002. DESIGNATION OF ENTITY TO CARRY OUT ASIAN
47	47	CITRUS PSYLLID AND CITRUS GREENING CONTROL AND SUPPRESSION. (a)
48	48	The Texas Citrus Pest and Disease Management Corporation, Inc., a
49	49	Texas nonprofit corporation, shall be recognized by the department
50	50	as the entity to plan, carry out, and operate suppression programs
51	51	to manage and control the Asian citrus psyllid and citrus greening
52	52	in citrus plants in the state under the supervision of the
53	53	department as provided by this chapter.
54	54	(b) The commissioner may terminate the corporation's
55	55	designation as the entity recognized to carry out Asian citrus
56	56	psyllid control and management by giving 45 days' written notice to
57	57	the corporation and by designating a successor entity. If the
58	58	commissioner designates a successor to the corporation, the
59	59	successor has all the powers and duties of the corporation under
60	60	this chapter. Any successor to the corporation shall assume and
61	61	shall be responsible for all obligations and liabilities relating
62	62	to any notes, security agreements, assignments, loan agreements,
63	63	and any other contracts or other documents entered into by the
64	64	corporation with or for the benefit of any financial institution or
65	65	its predecessor, successor, or assignee.
66	66	Sec. 80.003. DEFINITIONS. In this chapter:
67	67	(1) "Board" means the board of directors of the Texas
68	68	Citrus Pest and Disease Management Corporation, Inc.
69	69	(2) "Asian citrus psyllid" means Diaphorina citri
70	70	Kuwayama.
71	71	(3) "Commissioner" means the commissioner of
72	72	agriculture.
73	73	(4) "Citrus" means:
74	74	(A) a citrus plant;
75	75	(B) a part of a citrus plant, including trees,
76	76	limbs, flowers, roots, and leaves; or
77	77	(C) citrus products.
78	78	(5) "Citrus greening" means the disease caused by the
79	79	Asian citrus psyllid.
80	80	(6) "Citrus producer" means a person who grows citrus
81	81	and receives income from the sale of citrus. The term includes an
82	82	individual who as owner, landlord, tenant, or sharecropper is
83	83	entitled to share in the citrus grown and available for marketing
84	84	from a farm or to share in the proceeds from the sale of the citrus
85	85	from the farm.
86	86	(7) "Suppression" means control of the numbers and
87	87	migration of the Asian citrus psyllid to the extent that the
88	88	commissioner does not consider further management of the Asian
89	89	citrus psyllid necessary to prevent economic loss to citrus
90	90	producers.
91	91	(8) "Pest management zone" means a geographic area
92	92	designated by the commissioner in accordance with Section 80.005 in
93	93	which citrus producers by referendum approve their participation in
94	94	a citrus pest control program.
95	95	(9) "Corporation" means the Texas Citrus Pest and
96	96	Disease Management Corporation, Inc., a Texas nonprofit
97	97	corporation.
98	98	(10) "Host" means a plant or plant product in which the
99	99	Asian citrus psyllid is capable of completing any portion of its
100	100	life cycle.
101	101	(11) "Infested" means the presence of the Asian citrus
102	102	psyllid in any life stage or the existence of generally accepted
103	103	entomological evidence from which it may be concluded with
104	104	reasonable certainty that the Asian citrus psyllid is present.
105	105	(12) "Integrated pest management" means the
106	106	coordinated use of pest and environmental information with
107	107	available pest control methods, including pesticides, natural
108	108	predator controls, cultural farming practices, and climatic
109	109	conditions, to prevent unacceptable levels of pest damage by the
110	110	most economical means and with the least possible hazard to people,
111	111	property, and the environment.
112	112	(13) "Regulated article" means an article carrying or
113	113	capable of carrying the Asian citrus psyllid, including citrus
114	114	plants, nursery plants, citrus rootstock, or other hosts.
115	115	Sec. 80.004. ADVISORY COMMITTEES. (a) The commissioner
116	116	may appoint an advisory committee for an existing pest management
117	117	zone or an area of the state that is to be considered by the
118	118	commissioner for designation as or inclusion in a pest management
119	119	zone. The committee shall gather advice, input, and guidance from
120	120	citrus producers from the area represented by the committee
121	121	concerning the interest in and concerns about the implementation of
122	122	this chapter.
123	123	(b) Each advisory committee may consider and make
124	124	recommendations to the commissioner and the corporation
125	125	concerning:
126	126	(1) the geographic boundaries for a proposed pest
127	127	management zone;
128	128	(2) the amount of local interest in operating a
129	129	suppression program;
130	130	(3) the basis and amount of an assessment necessary to
131	131	support a suppression program;
132	132	(4) ongoing implementation of a suppression program
133	133	approved by growers in a pest management zone; and
134	134	(5) any other matter requested by the commissioner or
135	135	the corporation.
136	136	(c) Each advisory committee appointed under this section
137	137	must include a sufficient number of citrus producers to ensure
138	138	adequate representation across the pest management zone and other
139	139	persons as determined by the commissioner.
140	140	(d) An advisory committee established under this section is
141	141	subject to Chapters 551 and 552, Government Code.
142	142	Sec. 80.005. CREATION OF PEST MANAGEMENT ZONES. (a) The
143	143	commissioner by rule may designate an area of this state as a
144	144	proposed pest management zone.
145	145	(b) The commissioner may hold a public hearing in the
146	146	proposed pest management zone to discuss the proposed geographic
147	147	boundaries of the zone. The public hearing may include any other
148	148	topic allowed under this chapter.
149	149	(c) After the adoption of a rule under Subsection (a), the
150	150	commissioner shall conduct a referendum under Section 80.006.
151	151	Sec. 80.006. PEST MANAGEMENT ZONE REFERENDA. (a) The
152	152	commissioner shall conduct a referendum in each proposed pest
153	153	management zone to determine whether citrus producers want to
154	154	establish a pest management zone.
155	155	(b) Pest management zone referenda shall be conducted under
156	156	the procedures provided by Section 80.016.
157	157	(c) A proposed pest management zone referendum ballot must
158	158	include or be accompanied by information about the proposed pest
159	159	management zone, including:
160	160	(1) a statement of the purpose of the Asian citrus
161	161	psyllid suppression program;
162	162	(2) the geographic area included in the proposed pest
163	163	management zone;
164	164	(3) a general summary of rules adopted by the
165	165	commissioner under Sections 80.016, 80.020, and 80.022, including a
166	166	description of:
167	167	(A) citrus producer responsibilities; and
168	168	(B) penalties for noncompliance with rules
169	169	adopted under this chapter; and
170	170	(4) an address and toll-free telephone number that a
171	171	citrus producer may use to request more information about the
172	172	referendum or the Asian citrus psyllid suppression program.
173	173	(d) If a referendum to establish a pest management zone is
174	174	not approved, the concurrent election of a board member from the
175	175	proposed pest management zone under Section 80.007 has no effect,
176	176	and the commissioner shall appoint a representative to the board
177	177	from the area.
178	178	(e) The corporation may request the commissioner to call
179	179	additional referenda in a proposed pest management zone in which a
180	180	referendum has not been approved. An additional pest management
181	181	zone referendum and concurrent board election may not be held
182	182	before the first anniversary of the date of the preceding
183	183	referendum.
184	184	(f) After the approval of any referendum, the eligible
185	185	voters shall be allowed, by subsequent referenda, to vote on
186	186	whether to continue their assessments. The requirements for an
187	187	initial referendum must be complied with in a subsequent
188	188	referendum.
189	189	Sec. 80.007. BOARD ELECTIONS. (a) The initial election for
190	190	board members from a proposed pest management zone shall be held
191	191	concurrently with a pest management zone referendum held under
192	192	Section 80.006. Each pest management zone must be represented on
193	193	the board and remain represented on the board until suppression
194	194	operations are concluded and all debt of the pest management zone is
195	195	paid.
196	196	(b) A board election shall be conducted under the procedures
197	197	provided by this section and Section 80.016.
198	198	(c) A citrus producer who is eligible to vote in a
199	199	referendum or election under this chapter is eligible to be a
200	200	candidate for and member of the board if the person has at least
201	201	seven years of experience as a citrus producer and otherwise meets
202	202	the qualifications for the office.
203	203	(d) A citrus producer who wants to be a candidate for the
204	204	board must meet the qualifications for board membership and file an
205	205	application with the commissioner. The application must be:
206	206	(1) filed not later than the 30th day before the date
207	207	set for the board election;
208	208	(2) on a form approved by the commissioner; and
209	209	(3) signed by at least 10 citrus producers who are
210	210	eligible to vote in the board election.
211	211	(e) On receipt of an application and verification that the
212	212	application meets the requirements of Subsection (d), an
213	213	applicant's name shall be placed on the ballot for the board
214	214	election.
215	215	(f) An eligible voter may vote for a citrus producer whose
216	216	name does not appear on the official ballot by writing that person's
217	217	name on the ballot.
218	218	(g) A board election must be preceded by at least 45 days'
219	219	notice published in one or more newspapers published and
220	220	distributed in the proposed or established pest management zone.
221	221	The notice shall be published not less than once a week for three
222	222	consecutive weeks. Not later than the 45th day before the date of
223	223	the election, direct written notice of the election shall be given
224	224	to each AgriLife Extension agent in the pest management zone.
225	225	(h) Each board member shall be sworn into office by a
226	226	representative of the commissioner by taking the oath of office
227	227	required for elected officers of the state.
228	228	Sec. 80.008. COMPOSITION OF BOARD. (a) The board is
229	229	composed of members elected from each pest management zone
230	230	established by referendum, members appointed by the commissioner
231	231	from other citrus-growing areas of the state, and members appointed
232	232	by the commissioner under Subsection (b). The commissioner shall
233	233	appoint an initial board composed of 15 members. Except as provided
234	234	by Subsection (b), the term of each board position may not exceed
235	235	four years.
236	236	(b) In making appointments under this section, the
237	237	commissioner shall appoint the following board members, selected
238	238	from a variety of citrus-growing regions of the state, for
239	239	four-year terms:
240	240	(1) an agricultural lender;
241	241	(2) an independent entomologist who is an integrated
242	242	pest management specialist;
243	243	(3) two representatives from industries allied with
244	244	citrus production; and
245	245	(4) a representative from the pest control industry.
246	246	(c) The commissioner may change the number of board
247	247	positions or the pest management zone representation on the board
248	248	to accommodate changes in the number of pest management zones. A
249	249	change under this subsection may not contravene another provision
250	250	of this chapter.
251	251	(d) A vacancy on the board shall be filled by appointment by
252	252	the commissioner for the unexpired term.
253	253	(e) On 30 days' notice and opportunity for hearing, the
254	254	commissioner may replace any unelected board member of the
255	255	corporation.
256	256	Sec. 80.009. POWERS OF BOARD AND COMMISSIONER. (a) The
257	257	board may:
258	258	(1) conduct programs consistent with the declaration
259	259	of policy stated in Section 80.001;
260	260	(2) accept, as necessary to implement this chapter,
261	261	gifts and grants;
262	262	(3) borrow money, with the approval of the
263	263	commissioner, as necessary to execute this chapter;
264	264	(4) take other action and exercise other authority as
265	265	necessary to execute any act authorized by this chapter or the Texas
266	266	Non-Profit Corporation Act (Article 1396-1.01 et seq., Vernon's
267	267	Texas Civil Statutes); and
268	268	(5) form an advisory committee composed of individuals
269	269	from this state, other states, or other countries and change
270	270	membership on the committee, as necessary. Any advisory committee
271	271	created under this subdivision for the purpose of establishing
272	272	treatment methods shall include among its members persons with
273	273	knowledge of the effects of different treatments on the health of
274	274	agricultural workers, the local population, and the ecosystem,
275	275	including but not limited to the effects of a particular method of
276	276	treatment on beneficial organisms and wildlife, the potential for
277	277	secondary infestations from nontarget pests, and the potential for
278	278	pest resistance to particular methods of treatment.
279	279	(b) On petition of at least 30 percent of the citrus
280	280	producers eligible to vote in the proposed area, the commissioner
281	281	may, or at the commissioner's discretion, the commissioner by rule
282	282	may add an area to a pest management zone or transfer an area or
283	283	county from one zone to another zone if:
284	284	(1) citrus production has begun or could begin in the
285	285	area;
286	286	(2) the area is adjacent to a pest management zone or
287	287	is in an area with biological characteristics similar to the pest
288	288	management zone; and
289	289	(3) the addition is approved in a referendum held in
290	290	the area.
291	291	(c) The board must adopt a procurement policy, subject to
292	292	approval by the commissioner, outlining the procedures to be used
293	293	in purchasing.
294	294	(d) The commissioner at any time may inspect the books and
295	295	other financial records of the corporation.
296	296	Sec. 80.010. BOARD DUTIES. (a) The board shall have an
297	297	annual independent audit of the books, records of account, and
298	298	minutes of proceedings maintained by the corporation prepared by an
299	299	independent certified public accountant or a firm of independent
300	300	certified public accountants. The audit must include information
301	301	for each zone in which a suppression program has been conducted
302	302	under this chapter. The audit shall be filed with the board, the
303	303	commissioner, and the state auditor and be made available to the
304	304	public by the corporation or the commissioner. The transactions of
305	305	the corporation are subject to audit by the state auditor in
306	306	accordance with Chapter 321, Government Code.
307	307	(b) Not later than the 45th day after the last day of the
308	308	fiscal year, the board shall submit to the commissioner a report
309	309	itemizing all income and expenditures and describing all activities
310	310	of the corporation during the fiscal year.
311	311	(c) The corporation shall provide fidelity bonds in amounts
312	312	determined by the board for employees or agents who handle money for
313	313	the corporation.
314	314	(d) The corporation and the board are state agencies for the
315	315	following purposes only:
316	316	(1) exemption from taxation, including exemption from
317	317	sales and use taxes and taxes under Chapter 152, Tax Code; and
318	318	(2) exemption from vehicle registration fees.
319	319	(e) Funds collected by the corporation are not state funds
320	320	and are not required to be deposited in the state treasury. The
321	321	corporation shall deposit all money collected under this chapter in
322	322	a bank or other depository approved by the commissioner.
323	323	(f) The board shall collect data on the type and quantity of
324	324	pesticides used in accordance with this chapter. The data shall be
325	325	filed with the commissioner.
326	326	(g) All money collected under this chapter shall be used
327	327	solely to finance programs approved by the commissioner as
328	328	consistent with this chapter.
329	329	(h) The corporation is subject to the requirements of:
330	330	(1) the open meetings law, Chapter 551, Government
331	331	Code; and
332	332	(2) the public information law, Chapter 552,
333	333	Government Code.
334	334	(i) A board member may not vote on any matter in which the
335	335	member has a direct pecuniary interest. A board member is subject to
336	336	the same restrictions as a local public official under Chapter 171,
337	337	Local Government Code.
338	338	Sec. 80.011. ADMINISTRATIVE REVIEW. (a) The commissioner
339	339	by rule shall establish procedures for the informal review and
340	340	resolution of a claim arising out of certain acts taken by the
341	341	corporation under this chapter. Rules established under this
342	342	section shall include a designation of the acts that are subject to
343	343	review under this subsection and the appropriate remedial action,
344	344	as authorized by this chapter.
345	345	(b) A person dissatisfied with the department's informal
346	346	resolution of a claim under procedures adopted under Subsection (a)
347	347	may appeal the department's decision to the commissioner.
348	348	(c) A decision issued by the commissioner on a claim
349	349	appealed under Subsection (b) is the final administrative action of
350	350	the department and is subject to judicial review under Chapter
351	351	2001, Government Code.
352	352	(d) This section does not constitute a waiver of the state's
353	353	immunity from liability.
354	354	Sec. 80.012. CONTRACTING. (a) For a purchase of goods and
355	355	services under this chapter, the corporation may purchase goods and
356	356	services that provide the best value for the corporation.
357	357	(b) In determining the best value for the corporation, the
358	358	purchase price and whether the goods or services meet
359	359	specifications are the most important considerations. However, the
360	360	corporation may consider other relevant factors, including:
361	361	(1) the quality and reliability of the goods and
362	362	services;
363	363	(2) the delivery terms;
364	364	(3) indicators of probable vendor performance under
365	365	the contract, including:
366	366	(A) past vendor performance;
367	367	(B) the vendor's financial resources and ability
368	368	to perform;
369	369	(C) the vendor's experience or demonstrated
370	370	capability and responsibility; and
371	371	(D) the vendor's ability to provide reliable
372	372	maintenance agreements and support;
373	373	(4) the cost of any employee training associated with
374	374	a purchase; and
375	375	(5) other factors relevant to determining the best
376	376	value for the corporation in the context of a particular purchase.
377	377	Sec. 80.013. BOARD MEMBER COMPENSATION. Board members
378	378	serve without compensation but are entitled to reimbursement for
379	379	reasonable and necessary expenses incurred in the discharge of
380	380	their duties.
381	381	Sec. 80.014. DISCONTINUATION OF PROGRAM AND CORPORATION AND
382	382	DISPOSITION OF FUNDS ON DISCONTINUANCE. (a) On the determination
383	383	by the corporation that the Asian citrus psyllid suppression
384	384	program has been completed in all pest management zones established
385	385	under this chapter, the corporation shall provide notice of the
386	386	completion to the commissioner along with a request for
387	387	discontinuance of the control and suppression program and
388	388	collection of the assessment. Any request under this subsection
389	389	must include documentation supporting the fact that the Asian
390	390	citrus psyllid is no longer a threat to the state's citrus industry
391	391	and a plan for discontinuance of the program and assessment.
392	392	(b) The commissioner shall determine whether or not the
393	393	further suppression of the Asian citrus psyllid is necessary in the
394	394	pest management zones and approve or disapprove discontinuance of
395	395	the corporation and the plan for dissolution.
396	396	(c) On completion of the dissolution, the corporation shall
397	397	file a final report with the commissioner, including a financial
398	398	report, and submit all remaining funds into the trust of the
399	399	commissioner. Final books of the corporation shall be filed with
400	400	the commissioner and are subject to audit by the department.
401	401	(d) The commissioner shall pay from the corporation's
402	402	remaining funds all of the corporation's outstanding obligations.
403	403	(e) Funds remaining after payment under Subsection (d)
404	404	shall be returned to contributing citrus producers on a pro rata
405	405	basis.
406	406	(f) If 30 percent or more of the citrus producers eligible
407	407	to vote within a zone participating in the program present to the
408	408	commissioner a petition calling for a referendum of the qualified
409	409	voters on the proposition of discontinuing the program, the
410	410	commissioner shall conduct a referendum for that purpose.
411	411	(g) The commissioner shall give notice of the referendum,
412	412	the referendum shall be conducted, and the results shall be
413	413	declared in the manner provided by law for the original referendum
414	414	and election, with any necessary exceptions provided by rule of the
415	415	commissioner.
416	416	(h) The commissioner shall conduct the referendum before
417	417	the 90th day after the date the petition was filed, except that a
418	418	referendum may not be held before the second anniversary of any
419	419	other referendum in the pest management zone pertaining to
420	420	establishing or discontinuing the pest management zone.
421	421	(i) Approval of the proposition requires the same vote as
422	422	required in a referendum under Section 80.016(g). If the
423	423	proposition is approved, the suppression program is abolished and
424	424	the pest management zone ceases to exist on payment of all debts of
425	425	the pest management zone.
426	426	Sec. 80.015. ASSESSMENT REFERENDA. (a) The commissioner
427	427	shall propose the assessment needed in each pest management zone to
428	428	ensure the stability of the citrus industry by suppressing the
429	429	public nuisance caused by the Asian citrus psyllid.
430	430	(b) The commissioner shall propose in a referendum the:
431	431	(1) maximum assessment to be paid by citrus producers
432	432	having production in the pest management zone; and
433	433	(2) time for which the assessment will be made.
434	434	(c) With the commissioner's approval, the corporation may
435	435	make an assessment in a pest management zone at a level less than
436	436	the assessment approved by the referendum.
437	437	(d) The commissioner shall conduct an assessment referendum
438	438	under the procedures provided by Section 80.016.
439	439	(e) If an assessment referendum is approved, the
440	440	corporation may collect the assessment.
441	441	(f) An assessment levied on citrus producers in a pest
442	442	management zone may be applied only to:
443	443	(1) pest control in that zone;
444	444	(2) the corporation's operating costs, including
445	445	payments on debt incurred for a corporation activity, except that
446	446	the funds of one zone may not be used to pay another zone's bank
447	447	loans or debts; and
448	448	(3) the conducting of other programs consistent with
449	449	the declaration of policy stated in Section 80.001.
450	450	(g) The assessment shall be adequate and necessary to
451	451	achieve the goals of this chapter. The amount of the assessment
452	452	shall be determined by criteria established by the commissioner,
453	453	including:
454	454	(1) the extent of infestation;
455	455	(2) the amount of acreage planted;
456	456	(3) historical efforts to suppress;
457	457	(4) the growing season;
458	458	(5) epidemiology;
459	459	(6) historical weather conditions; and
460	460	(7) the costs and financing of the program.
461	461	(h) The commissioner shall give notice of and hold a public
462	462	hearing in the pest management zone regarding the proposed
463	463	assessment referendum. Before the referendum, the commissioner
464	464	shall review and approve:
465	465	(1) the amount of the assessment;
466	466	(2) the basis for the assessment;
467	467	(3) the time for payment of the assessment;
468	468	(4) the method of allocation of the assessment among
469	469	citrus producers;
470	470	(5) the restructuring and repayment schedule for any
471	471	preexisting debt; and
472	472	(6) the amount of debt to be incurred in the pest
473	473	management zone.
474	474	(i) The commissioner shall on a zone-by-zone basis set the
475	475	date on which assessments are due and payable.
476	476	(j) Each year, the commissioner shall review and approve the
477	477	corporation's operating budget.
478	478	(k) The corporation shall prepare and mail billing
479	479	statements to each citrus producer subject to the assessment that
480	480	state the amount due and the due date. The assessments shall be
481	481	sent to the corporation.
482	482	Sec. 80.016. CONDUCT OF BOARD ELECTIONS AND REFERENDA;
483	483	BALLOTING. (a) The commissioner shall conduct a referendum or
484	484	board election authorized under this chapter.
485	485	(b) The corporation shall bear all expenses incurred in
486	486	conducting a referendum or board election.
487	487	(c) The commissioner shall adopt rules for voting in board
488	488	elections and referenda to establish pest management zones. Rules
489	489	adopted under this subsection must include provisions for
490	490	determining:
491	491	(1) who is a citrus producer eligible to vote in an
492	492	election or referendum;
493	493	(2) whether a board member is elected by a plurality or
494	494	a majority of the votes cast; and
495	495	(3) the area from which each board member is elected.
496	496	(d) A citrus producer having citrus production in a proposed
497	497	or established pest management zone is entitled to:
498	498	(1) vote in a referendum concerning the pest
499	499	management zone; and
500	500	(2) elect board members to represent the pest
501	501	management zone.
502	502	(e) An eligible citrus producer may vote only once in a
503	503	referendum or board election.
504	504	(f) Ballots in a referendum or board election shall be
505	505	mailed directly to a central location, as determined by the
506	506	commissioner. A citrus producer eligible to vote in a referendum or
507	507	board election who has not received a ballot from the commissioner,
508	508	corporation, or another source shall be offered the option of
509	509	requesting a ballot by mail or obtaining a ballot at the office of
510	510	Texas AgriLife Extension or a government office distributing
511	511	ballots in a county in the proposed or established zone in which the
512	512	referendum or board election is conducted.
513	513	(g) A referendum is approved if:
514	514	(1) at least two-thirds of those voting vote in favor
515	515	of the referendum; or
516	516	(2) those voting in favor of the referendum cultivate
517	517	more than 50 percent, as determined by the commissioner, of the
518	518	citrus acreage in the relevant pest management zone.
519	519	(h) If a referendum under this chapter is not approved, the
520	520	commissioner may conduct another referendum. A referendum under
521	521	this subsection may not be held before the first anniversary of the
522	522	date on which the previous referendum on the same issue was held.
523	523	(i) A public hearing regarding the proposed suppression
524	524	program, including information regarding regulations to be
525	525	promulgated by the commissioner, may be held by the commissioner in
526	526	each of several locations in each Asian citrus psyllid pest
527	527	management zone.
528	528	(j) Individual voter information, including an individual's
529	529	vote in a referendum or board election conducted under this
530	530	section, is confidential and is not subject to disclosure under
531	531	Chapter 552, Government Code.
532	532	Sec. 80.017. PAYMENT OF ASSESSMENTS; ASSESSMENT LIENS. (a)
533	533	A citrus producer who fails to pay an assessment levied under this
534	534	chapter when due may be subject, after reasonable notice and
535	535	opportunity for hearing, to a penalty set by the commissioner. In
536	536	determining the amount of the penalty to be assessed, the
537	537	commissioner shall consider:
538	538	(1) the seriousness of the violation, including the
539	539	nature, circumstances, and extent of the violation;
540	540	(2) the history of previous violations;
541	541	(3) the amount necessary to deter future violations;
542	542	(4) the economic situation of the citrus producer; and
543	543	(5) any other matter that justice may require.
544	544	(b) The corporation may develop a compliance certificate
545	545	program to manage the payment and collection of an assessment
546	546	levied under this chapter. Under the program the corporation,
547	547	subject to department rules, may issue a compliance certificate for
548	548	citrus for which an assessment has been paid.
549	549	(c) In addition to any other remedies for the collection of
550	550	assessments and penalties, the commissioner may adopt rules
551	551	relating to the compliance certificate program for suppression
552	552	assessments. The rules may include:
553	553	(1) provisions establishing and relating to the
554	554	obligations of growers, packers, and buyers in due course of citrus
555	555	produced in active pest management zones to ensure that assessments
556	556	are paid within a prescribed time period;
557	557	(2) provisions allowing incentives in the form of
558	558	discounted assessments for growers who pay assessments within a
559	559	prescribed time period;
560	560	(3) provisions establishing penalties and interest
561	561	against growers who pay assessments after a prescribed time period;
562	562	and
563	563	(4) other provisions the commissioner determines are
564	564	proper.
565	565	(d) In addition to any other remedies for the collection of
566	566	assessments and penalties, an assessment lien in favor of the
567	567	corporation attaches and is perfected 60 days after the date the
568	568	corporation mails notice of the assessment on citrus produced and
569	569	harvested that year from the acreage that is subject to the
570	570	assessment that is due and unpaid. An assessment lien is not an
571	571	agricultural lien for the purposes of Chapter 9, Business &
572	572	Commerce Code, and is not subject to the provisions of that chapter.
573	573	An assessment lien is subject to and preempted by the Food Security
574	574	Act of 1985 (7 U.S.C. Section 1631 et seq.) and shall be treated
575	575	under that Act in the same manner as a security interest created by
576	576	the seller. A buyer of citrus takes free of the assessment lien if
577	577	the buyer:
578	578	(1) receives a compliance certificate issued by the
579	579	corporation when the buyer purchases the citrus that certifies that
580	580	the assessment has been paid to the corporation;
581	581	(2) pays for the citrus by a check on which the
582	582	department is named as a joint payee;
583	583	(3) does not receive notice of the assessment lien as
584	584	required by the Food Security Act of 1985 (7 U.S.C. Section 1631 et
585	585	seq.); or
586	586	(4) buys the citrus from a person other than the
587	587	producer of the citrus.
588	588	(e) The corporation may assign, with the approval of the
589	589	commissioner, assessments or liens in favor of the corporation as
590	590	collateral for a loan to the corporation only if the proceeds of the
591	591	loan are designated for use in the pest management zone from which
592	592	the assessments or liens originated.
593	593	(f) If the department believes that a violation of this
594	594	section or a rule adopted under this section has occurred, the
595	595	department may investigate and, during normal business hours, audit
596	596	and inspect the records of the person who is the subject of the
597	597	investigation.
598	598	Sec. 80.018. EXEMPTION FROM ASSESSMENT PENALTIES. (a) The
599	599	commissioner by rule shall adopt criteria to exempt from payment of
600	600	an assessment penalty under Section 80.017 a citrus producer for
601	601	whom payment would impose an undue financial burden.
602	602	(b) A citrus producer is not eligible for an exemption under
603	603	this section for a year in which the amount computed by subtracting
604	604	the assessments and penalties due under this chapter from the
605	605	citrus producer's net income subject to federal income taxation in
606	606	the previous year is greater than $15,000.
607	607	(c) A citrus producer who applies for an exemption under
608	608	this section must use a form prescribed by the commissioner. A
609	609	citrus producer must file a separate application form for each year
610	610	for which the citrus producer claims an exemption.
611	611	(d) The commissioner may establish a payment plan for a
612	612	citrus producer applying for an exemption under this section.
613	613	(e) The commissioner shall promptly notify an applicant of
614	614	the determination regarding the applicant's request for an
615	615	exemption.
616	616	(f) If an exemption under this section is denied,
617	617	assessments and penalties for the year for which the application is
618	618	made are due on the later of:
619	619	(1) the date on which they would be due in the absence
620	620	of an application for exemption; or
621	621	(2) 30 days after the date the applicant receives
622	622	notice of the denial.
623	623	(g) In addition to the authority provided under Subsections
624	624	(a)-(f), the commissioner may reduce or waive an assessment penalty
625	625	as appropriate and necessary.
626	626	Sec. 80.019. ENTRY OF PREMISES; SUPPRESSION ACTIVITIES;
627	627	INSPECTIONS. The department, the corporation, or a designated
628	628	representative of either entity may enter citrus groves or other
629	629	premises to carry out the purposes of this chapter, which include
630	630	the treatment and monitoring of growing citrus or other host
631	631	plants. The department, the corporation, or a designated
632	632	representative of either entity may inspect groves or premises in
633	633	this state for the purpose of determining whether the property is
634	634	infested with the Asian citrus psyllid or citrus greening. An
635	635	inspection must be conducted during reasonable daylight hours. The
636	636	department shall give notice by publication of the planned schedule
637	637	of dates for entry by the department, the corporation, or a
638	638	designated representative of either entity, to the owner or
639	639	occupant of the groves or premises to carry out the purposes of this
640	640	chapter, including treatment, monitoring, or inspection functions.
641	641	The department shall publish notice of the planned schedule to
642	642	enter the groves or premises in a newspaper of general circulation
643	643	in the pest management zone not less than once a week for two weeks
644	644	immediately before the scheduled dates of entry. In addition to the
645	645	notice published by the department, the corporation shall post
646	646	notice of the planned schedule to enter groves or premises to carry
647	647	out the purposes of this chapter at the county courthouse of each
648	648	county in the pest management zone not later than the 15th day
649	649	before the planned dates of entry.
650	650	Sec. 80.020. AUTHORITY TO PROHIBIT PLANTING OF CITRUS AND
651	651	REQUIRE PARTICIPATION IN SUPPRESSION PROGRAM. (a) The
652	652	commissioner may adopt reasonable rules regarding areas where
653	653	citrus may not be planted in a pest management zone if there is
654	654	reason to believe planting will jeopardize the success of the
655	655	program or present a hazard to public health or safety.
656	656	(b) The commissioner may adopt rules requiring all growers
657	657	of citrus in a pest management zone to participate in an Asian
658	658	citrus psyllid suppression program and growers of commercial citrus
659	659	to participate in pest and disease management programs that include
660	660	cost sharing as required by the rules.
661	661	(c) Notice of a prohibition or requirement shall be given by
662	662	publication for one day each week for three successive weeks in a
663	663	newspaper having general circulation in the affected area.
664	664	(d) The commissioner may adopt a reasonable schedule of
665	665	penalty fees to be assessed against growers in a designated pest
666	666	management zone who do not meet the requirements of the rules issued
667	667	by the commissioner relating to reporting of acreage and
668	668	participation in cost sharing. A penalty fee may not exceed $50 per
669	669	acre.
670	670	Sec. 80.021. AUTHORITY FOR DESTRUCTION OR TREATMENT OF
671	671	CITRUS IN PEST MANAGEMENT ZONES; COMPENSATION PAYABLE. The
672	672	department may destroy or treat, and establish procedures for the
673	673	purchase and destruction of, citrus plants or hosts in pest
674	674	management zones if the department determines the action is
675	675	necessary to carry out the purposes of this chapter. The department
676	676	is not liable to the owner or lessee for the destruction of or
677	677	injury to any citrus that was planted in a pest management zone
678	678	after the date notice is published as required by this chapter. The
679	679	corporation is liable for the destruction of citrus if the citrus
680	680	was planted in a pest management zone before the date that notice is
681	681	published.
682	682	Sec. 80.022. AUTHORITY TO ADOPT RULES. (a) The
683	683	commissioner shall adopt rules to protect individuals, livestock,
684	684	wildlife, and honeybee colonies on any premises in a pest
685	685	management zone on which citrus plants are being grown that have
686	686	been or are being treated to control or suppress the Asian citrus
687	687	psyllid and citrus greening.
688	688	(b) Rules adopted under this section shall establish the
689	689	criteria by which the corporation develops its procedures and
690	690	methods of treatment, which shall:
691	691	(1) establish a methodology for determining when Asian
692	692	citrus psyllid population levels have reached economic
693	693	significance or when citrus greening is present;
694	694	(2) establish an effective treatment regimen that
695	695	seeks to provide the least possible risk to workers, the public, and
696	696	the environment;
697	697	(3) minimize the effects of the use of pesticides on
698	698	long-term control methods, including but not limited to the effect
699	699	a particular pesticide may have on biological controls;
700	700	(4) establish methods for monitoring Asian citrus
701	701	psyllids, citrus greening, and secondary pests;
702	702	(5) establish methods for verifying pesticide use
703	703	reduction; and
704	704	(6) consider the acute and chronic toxicity of
705	705	particular pesticides and the quantity of particular pesticides
706	706	needed. Pest management zone treatment plans may take into account
707	707	the potential for the use of smaller quantities of more toxic
708	708	substances to result in fewer health and environmental risks than
709	709	larger quantities of less toxic substances.
710	710	(c) The commissioner may adopt other reasonable rules
711	711	necessary to carry out the purposes of this chapter. All rules
712	712	issued under this chapter must be adopted and published in
713	713	accordance with the laws of this state.
714	714	(d) An advisory committee may be established to assist the
715	715	commissioner in the development of rules under this section. The
716	716	advisory committee may be composed of:
717	717	(1) three citrus producers from the commercial citrus
718	718	growing area of the state, appointed by the commissioner;
719	719	(2) three entomologists with knowledge of the
720	720	principles of integrated pest management, at least one of whom has
721	721	special knowledge of nonchemical or biological pest control,
722	722	appointed by the commissioner;
723	723	(3) two individuals with experience representing the
724	724	general interests of the environment, appointed by the chair of the
725	725	Texas Commission on Environmental Quality;
726	726	(4) an environmental engineer with expert knowledge of
727	727	ground and surface water protection from contamination, appointed
728	728	by the chair of the Texas Commission on Environmental Quality;
729	729	(5) a toxicologist, appointed by the commissioner of
730	730	state health services; and
731	731	(6) an individual with experience representing the
732	732	general interests of consumers and an individual with experience
733	733	representing the general interests of agricultural workers,
734	734	appointed by the governor.
735	735	Sec. 80.023. REPORTS. Each person in an active pest
736	736	management zone growing citrus in this state shall furnish to the
737	737	corporation on forms supplied by the corporation information that
738	738	the corporation requires concerning the size and location of all
739	739	commercial citrus orchards and of noncommercial citrus grown for
740	740	ornamental or other purposes. The corporation may provide an
741	741	incentive for early and timely reporting.
742	742	Sec. 80.024. DOCUMENTING REGULATED ARTICLES. To implement
743	743	this chapter, the department may issue or authorize issuance of:
744	744	(1) a certificate that indicates that a regulated
745	745	article is not infested with the Asian citrus psyllid; and
746	746	(2) a permit that provides for the movement of a
747	747	regulated article to a restricted destination for limited handling,
748	748	use, or processing.
749	749	Sec. 80.025. COOPERATIVE PROGRAMS AUTHORIZED. (a) The
750	750	corporation may carry out programs to destroy and manage the Asian
751	751	citrus psyllid and citrus greening in this state by cooperating
752	752	through written agreements, as approved by the commissioner, with:
753	753	(1) an agency of the federal government;
754	754	(2) a state agency;
755	755	(3) an appropriate agency of a foreign country
756	756	contiguous to the affected area to the extent allowed by federal
757	757	law;
758	758	(4) a person who is engaged in growing, processing,
759	759	marketing, or handling citrus;
760	760	(5) a group of persons in this state involved in
761	761	similar programs to carry out the purposes of this chapter; or
762	762	(6) an appropriate state agency of another state
763	763	contiguous to the affected area, to the extent allowed by federal
764	764	law, the law of the contiguous state, and the law of this state.
765	765	(b) An agreement entered into under this section may provide
766	766	for cost sharing and for division of duties and responsibilities
767	767	under this chapter and may include other provisions to carry out the
768	768	purposes of this chapter.
769	769	Sec. 80.026. ORGANIC CITRUS PRODUCERS. (a) The
770	770	commissioner shall develop rules and procedures to:
771	771	(1) protect the eligibility of organic citrus
772	772	producers to be certified by the commissioner;
773	773	(2) ensure that organic and transitional
774	774	certifications by the commissioner continue to meet national
775	775	certification standards in order for organic citrus to maintain
776	776	international marketability; and
777	777	(3) in all events maintain the effectiveness of the
778	778	Asian citrus psyllid suppression program and citrus greening
779	779	management administered under this chapter.
780	780	(b) The board may not treat or require treatment of organic
781	781	citrus groves with chemicals that are not approved for use on
782	782	certified organic citrus. Rules adopted under Subsection (a) may
783	783	provide indemnity for the organic citrus producers for reasonable
784	784	losses that result from a prohibition of production of organic
785	785	citrus or from any requirement of destruction of organic citrus.
786	786	Sec. 80.027. PENALTIES. (a) A person who violates this
787	787	chapter or a rule adopted under this chapter or who alters, forges,
788	788	counterfeits, or uses without authority a certificate, permit, or
789	789	other document issued under this chapter or under a rule adopted
790	790	under this chapter commits an offense.
791	791	(b) An offense under this section is a Class C misdemeanor.
792	792	(c) If the commissioner determines that a violation of this
793	793	chapter or a rule adopted under this chapter has occurred, the
794	794	commissioner may request that the attorney general or the county or
795	795	district attorney of the county in which the alleged violation
796	796	occurred or is occurring file suit for civil, injunctive, or other
797	797	appropriate relief.
798	798	Sec. 80.028. SUNSET PROVISION. (a) The board of directors
799	799	of the official citrus producers' pest and disease management
800	800	corporation is subject to Chapter 325, Government Code (Texas
801	801	Sunset Act). Unless continued in existence as provided by that
802	802	chapter, the board is abolished and this chapter expires September
803	803	1, 2021.
804	804	(b) The commissioner may order the dissolution of the
805	805	corporation at any time the commissioner determines that the
806	806	purposes of this chapter have been fulfilled or that the
807	807	corporation is inoperative and abandoned. Dissolution shall be
808	808	conducted in accordance with Section 80.014.
809	809	(c) If the corporation is abolished or the suppression
810	810	program discontinued for any reason, assessments approved, levied,
811	811	or otherwise collectible on the date of abolishment remain valid as
812	812	necessary to pay the financial obligations of the corporation.
813	813	Sec. 80.029. ANNUAL REPORT. The board shall issue to the
814	814	commissioner and the appropriate oversight committee in the house
815	815	of representatives an annual report detailing its efforts to carry
816	816	out the purposes of this chapter.
817	817	Sec. 80.030. EXEMPTION TAXATION. All payments,
818	818	contributions, funds, and assessments received or held by the
819	819	corporation under this chapter are exempt from state or local
820	820	taxation, levies, sales, and any other process and are
821	821	unassignable.
822	822	Sec. 80.031. USE OF BIO-INTENSIVE CONTROLS. (a) The
823	823	commissioner shall develop and adopt rules to allow a citrus
824	824	producer in a suppression program to use biological, botanical, or
825	825	other nonsynthetic pest control methods. In developing rules, the
826	826	commissioner shall consider:
827	827	(1) scientific studies and field trials of the
828	828	effectiveness of a proposed alternative control method;
829	829	(2) the feasibility of using a proposed alternative
830	830	control technique within a particular region;
831	831	(3) the degree of monitoring necessary to establish
832	832	the success of the use of a proposed alternative control; and
833	833	(4) methods to prevent the use of substances that
834	834	would impede the use of alternative controls and the promotion of
835	835	beneficial insect populations.
836	836	(b) A citrus producer that chooses to use an alternative
837	837	method of control as provided in Subsection (a) shall notify the
838	838	board. The board and the citrus producer shall coordinate their
839	839	actions to prevent the use of substances that would impede the use
840	840	of alternative controls and the promotion of beneficial insect
841	841	populations.
842	842	(c) The citrus producer shall pay any additional cost of
843	843	bio-intensive control in addition to any assessment.
844	844	Sec. 80.032. VENUE. Venue for an action arising out of this
845	845	chapter in which the corporation is a party is in Travis County.
846	846	SECTION 2. This Act takes effect September 1, 2009.