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.