HBA-GUM S.B. 631 76(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 631
By: Duncan
Agriculture & Livestock
4/16/1999
Engrossed



BACKGROUND AND PURPOSE 

In 1995, the 75th Texas Legislature made changes to the law with respect to
the Texas Boll Weevil Eradication Foundation (foundation).  Nevertheless,
questions remain concerning the foundation's operation.  S.B. 631 amends
Chapter 74 (Cotton Diseases and Pests) to address various issues concerning
the state's efforts to control the boll weevil. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated to the commissioner of agriculture in
SECTION 4 (Section  74.115, Agriculture Code) of  this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 74.108, Agriculture Code, by adding Subsection
(d), to authorize the commissioner of agriculture (commissioner) to inspect
the financial records of the Texas Boll Weevil Eradication Foundation
(foundation) at any time. 

SECTION 2.  Amends Section 74.1101, Agriculture Code, to delete existing
text which provides that for an applicator to not be jointly and severally
liable for an act or omission of the foundation, the foundation must
maintain the liability coverage required under Section 74.1101(c).  Deletes
existing Subsections (d), which authorizes the commissioner to provide that
the foundation include the applicator on an insurance policy, and (e),
which provides the expiration date for this section (Liability of
Applicators). 

SECTION 3.  Amends Subchapter D, Chapter 74, Agriculture Code, by adding
Section 74.1102, as follows: 

Sec. 74.1102.  CONTRACTING.  (a) Authorizes the foundation to purchase
goods and services that provide the best value for the foundation for a
purchase of goods and services under this chapter (Cotton Diseases And
Pests). 

(b)  Provides that in determining the best value for the foundation, the
purchase price and whether the goods or services meet specifications are
the most important considerations. Authorizes the foundation to consider
other certain specified relevant factors in determining the best value for
the foundation. 

SECTION 4.  Amends Section 74.115, Agriculture Code, as follows:

Sec. 74.115.  New title:  PAYMENT OF ASSESSMENTS; ASSESSMENT LIENS.  (a)
Makes no change. 

(b)  Authorizes the foundation to develop a compliance certificate program
to manage the payment and collection of an assessment levied under this
subchapter (Official Cotton Growers' Boll Weevil Eradication Foundation).
Authorizes the foundation, subject to department rules, to issue under the
program a compliance certificate for cotton for which an assessment has
been paid. 

 (c)  Authorizes the commissioner, in addition to other remedies for the
collection of assessments and penalties, to adopt rules relating to the
compliance certificate program for eradication assessments.  Provides that
the rules may include certain specified provisions relating to the
establishment of the  obligations of growers, ginners, and buyers, certain
specified incentives for growers, and establishment of penalties and
interest against growers. 

(d)  Redesignated from existing Subsection (b).  Adds text to provide that
an assessment lien under this subsection is in favor of the foundation, and
attaches and is perfected 60 days after the date the foundation mails
notice of the specified assessment.  Deletes existing text authorizing the
department to place and perfect an assessment lien.  Provides that receipt
of a compliance certificate issued by the foundation when the buyer
purchases the cotton that certifies that the assessment has been paid to
the foundation, rather than has not received written or actual notice of
the assessment lien, is a condition under which a buyer of cotton takes
free of the assessment lien.  Makes conforming and nonsubstantive changes. 

(e)  Authorizes the foundation to assign, with the approval of the
commissioner, assessments or liens in favor of the foundation as collateral
for a loan to the foundation only if the proceeds of the loan are
designated for use in the eradication zone from which the assessments or
liens originated. Deletes existing text placing the burden on the
department in an action to enforce the assessment lien, and providing that
a specified buyer takes free of the assessment lien. 

SECTION 5.  Amends Subchapter D, Chapter 74, Agriculture Code, by adding
Section 74.131, as follows: 

Sec. 74.131.  VENUE.  Provides that venue for an action arising out of this
subchapter (Official Cotton Growers' Boll Weevil Eradication Foundation) in
which the foundation is a party is in Travis County.  Provides that this
section does not expand the liability of the foundation beyond the
liability provided under Section 74.129 (Exemption From Lawsuits,
Liability, Taxation, and Legal Process). 

SECTION 6.  Emergency clause.
  Effective date: upon passage.