CHAPTER 80. OFFICIAL CITRUS PRODUCERS' PEST AND DISEASE MANAGEMENT CORPORATION

AGRICULTURE CODE

TITLE 5. PRODUCTION, PROCESSING, AND SALE OF HORTICULTURAL

PRODUCTS

SUBTITLE B. HORTICULTURAL DISEASES AND PESTS

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.

Added by Acts 2009, 81st Leg., R.S., Ch.

506, Sec. 10.01, eff. September 1, 2009.

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.

Added by Acts 2009, 81st Leg., R.S., Ch.

506, Sec. 10.01, eff. September 1, 2009.

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.

Added by Acts 2009, 81st Leg., R.S., Ch.

506, Sec. 10.01, eff. September 1, 2009.

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.

Added by Acts 2009, 81st Leg., R.S., Ch.

506, Sec. 10.01, eff. September 1, 2009.

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.

Added by Acts 2009, 81st Leg., R.S., Ch.

506, Sec. 10.01, eff. September 1, 2009.

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.

Added by Acts 2009, 81st Leg., R.S., Ch.

506, Sec. 10.01, eff. September 1, 2009.

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 Texas AgriLife Extension Service 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.

Added by Acts 2009, 81st Leg., R.S., Ch.

506, Sec. 10.01, eff. September 1, 2009.

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.

Added by Acts 2009, 81st Leg., R.S., Ch.

506, Sec. 10.01, eff. September 1, 2009.

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.

Added by Acts 2009, 81st Leg., R.S., Ch.

506, Sec. 10.01, eff. September 1, 2009.

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.

Added by Acts 2009, 81st Leg., R.S., Ch.

506, Sec. 10.01, eff. September 1, 2009.

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.

Added by Acts 2009, 81st Leg., R.S., Ch.

506, Sec. 10.01, eff. September 1, 2009.

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.

Added by Acts 2009, 81st Leg., R.S., Ch.

506, Sec. 10.01, eff. September 1, 2009.

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.

Added by Acts 2009, 81st Leg., R.S., Ch.

506, Sec. 10.01, eff. September 1, 2009.

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.

Added by Acts 2009, 81st Leg., R.S., Ch.

506, Sec. 10.01, eff. September 1, 2009.

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.

Added by Acts 2009, 81st Leg., R.S., Ch.

506, Sec. 10.01, eff. September 1, 2009.

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 the Texas AgriLife Extension Service 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.

Added by Acts 2009, 81st Leg., R.S., Ch.

506, Sec. 10.01, eff. September 1, 2009.

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.

Added by Acts 2009, 81st Leg., R.S., Ch.

506, Sec. 10.01, eff. September 1, 2009.

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.

Added by Acts 2009, 81st Leg., R.S., Ch.

506, Sec. 10.01, eff. September 1, 2009.

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.

Added by Acts 2009, 81st Leg., R.S., Ch.

506, Sec. 10.01, eff. September 1, 2009.

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.

Added by Acts 2009, 81st Leg., R.S., Ch.

506, Sec. 10.01, eff. September 1, 2009.

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.

Added by Acts 2009, 81st Leg., R.S., Ch.

506, Sec. 10.01, eff. September 1, 2009.

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; and

(5) a toxicologist, appointed by the commissioner of state

health services.

Added by Acts 2009, 81st Leg., R.S., Ch.

506, Sec. 10.01, eff. September 1, 2009.

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.

Added by Acts 2009, 81st Leg., R.S., Ch.

506, Sec. 10.01, eff. September 1, 2009.

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.

Added by Acts 2009, 81st Leg., R.S., Ch.

506, Sec. 10.01, eff. September 1, 2009.

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.

Added by Acts 2009, 81st Leg., R.S., Ch.

506, Sec. 10.01, eff. September 1, 2009.

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.

Added by Acts 2009, 81st Leg., R.S., Ch.

506, Sec. 10.01, eff. September 1, 2009.

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.

Added by Acts 2009, 81st Leg., R.S., Ch.

506, Sec. 10.01, eff. September 1, 2009.

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.

Added by Acts 2009, 81st Leg., R.S., Ch.

506, Sec. 10.01, eff. September 1, 2009.

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.

Added by Acts 2009, 81st Leg., R.S., Ch.

506, Sec. 10.01, eff. September 1, 2009.

Sec. 80.030. EXEMPTION FROM 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.

Added by Acts 2009, 81st Leg., R.S., Ch.

506, Sec. 10.01, eff. September 1, 2009.

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.

Added by Acts 2009, 81st Leg., R.S., Ch.

506, Sec. 10.01, eff. September 1, 2009.

Sec. 80.032. VENUE. Venue for an action arising out of this

chapter in which the corporation is a party is in Travis County.

Added by Acts 2009, 81st Leg., R.S., Ch.

506, Sec. 10.01, eff. September 1, 2009.