A.R.S. tit. 3 ch. 10 — Arizona Revised Statutes Title 3 Chapter 10 — Cotton Research And Protection

3-1081. Definition In this article, unless the context otherwise requires, "council" means the cotton research and protection council. 3-1082. Cotton research and protection council; membership; terms; vacancy; compensation A. The cotton research and protection council is established and is composed of nine active cotton producers to be appointed by the governor. The members shall be appointed as follows: 1. Two each who are residents of: (a) Maricopa county. (b) Pinal county. (c) The Yuma, La Paz and Mohave counties area. 2. One each who is a resident of: (a) Pima county. (b) Cochise county. (c) The Graham and Greenlee counties area. B. The governor may consult with any recognized cotton producer organizations in this state in determining appointments to the council. C. The term of office of council members is three years and expires on December 31 of the appropriate year, but a member may continue to serve until a successor is appointed and assumes office. A member is eligible for a second consecutive three-year term. A member who completes a second consecutive three-year term is ineligible for reappointment for at least one year. On the expiration of a term of a member or in the event of a vacancy, a successor shall be appointed by the governor. D. If the office of any council member becomes vacant, the council shall notify the governor and the governor shall appoint a person to fill the remainder of the term. The office of any member shall be deemed vacant under any of the following circumstances: 1. The member is no longer an active cotton producer. 2. The member is unable to perform the duties of office. 3. The member has been absent from three consecutive council meetings if the absences have not been excused by the council. 4. The member has ceased to reside in the county or county area that the member was appointed to represent. E. Members of the council are not eligible to receive compensation but are eligible for reimbursement of expenses pursuant to title 38, chapter 4, article 2. 3-1083. Council powers and duties A. The council shall: 1. Receive and disburse monies to be used in administering this article. 2. Meet at least once each calendar quarter and more frequently on the call of the chairman or by five members of the council. 3. Annually elect a chairman from among its members. 4. Elect a secretary and treasurer from among its members. 5. Establish an executive committee consisting of the chairman, secretary and treasurer. An executive committee member may not serve in the same executive office for more than three years. The executive committee shall act in accordance with the direction received from the council or, if necessary, the executive committee shall act and bring the matter before the full council at the next regular meeting of the council for review and ratification. 6. Provide for a triennial audit of its accounts by a qualified public accounting firm and additional audits as the council may require and make an annual financial statement available to any producer and the auditor general on request. 7. Keep and maintain a permanent record of its proceedings and make these records available for public inspection for any lawful purpose. 8. Prepare an annual report of its activities, receipts and expenditures. The report shall be submitted to the governor, other state officers as the council determines and other persons in the cotton industry in this state as may be appropriate. Copies of the annual report shall be available to any interested cotton producer and the general public on request. 9. Organize and administer any referendum called for under subsection C, paragraph 9 of this section. B. The council may authorize or contract for any of the following programs: 1. Those research programs that are related to cotton production or its protection, including cotton seed breeding or other research programs to develop germplasm. 2. Programs of aflatoxin control and cotton pest eradication. 3. A program to rebate a portion of collected fees to cotton producers to provide an incentive to plow up cotton fields in a timely manner. 4. Any other programs that the council deems to be appropriate for furthering the purposes of this article. C. The council may: 1. Adopt rules necessary to promptly and effectively administer this article. 2. Award grants of monies, property, services or other assistance to public or private recipients for the express purpose of furthering the objectives of this article, including research programs related to cotton protection and production authorized by the council. 3. Accept grants and donations of monies, property, services or other assistance from public or private sources for the express purpose of furthering the objectives of this article. 4. Investigate and prosecute in the name of this state any action or suit to enforce the collection or ensure payment of the fees authorized and to sue and be sued in the name of the council. 5. Buy and sell seed and other products used in the council's aflatoxin control program, extend credit in connection with the sale and distribution of treated seed and other products, collect and enforce debts or obligations with respect to extended credit and take a security interest in collateral of all kinds, including real and personal property to secure the credit. 6. Cooperate with any local, state and national organizations or agencies engaged in activities similar to or related to those of the council and enter into contracts with these organizations or agencies for carrying on joint programs. 7. Acquire and protect patents, licenses or certificates of protection for plant varieties resulting from seed breeding or other programs authorized by the council and grant licenses to use intellectual property rights held by the council. 8. Act jointly and in cooperation with this state or any other state or the federal government in the administration of any program deemed by the council as beneficial to the cotton industry of this state. 9. Refer to the cotton producers in this state for an advisory vote the question of establishing, continuing or discontinuing any program authorized by this article. 10. Expend monies for public relations programs that are organized to promote the cotton industry or agriculture in this state. 11. Purchase and sell motor vehicles for the administration of its own motor vehicle fleet and provide for its operation and maintenance. 12. Provide monies to the department as necessary for the abatement of a cotton nuisance under section 3-204, subsection G or section 3-205, subsection G or for the plow up of cotton fields pursuant to section 3-204.01 to be loaned by and repaid to the council pursuant to section 3-1085, subsection B. 3-1084. Council staff; administrative services A. The council may employ staff, including a staff director, at a rate of compensation determined by the council, to serve at the pleasure of the council and shall prescribe the terms and conditions of employment of employees as necessary to perform the functions prescribed by this article. B. All employees of the council are exempt from title 38, chapter 4, article 1 and title 41, chapter 4, articles 5 and 6 and are not under the jurisdiction of the department of administration. C. The council may enter into interagency agreements with the department to provide necessary administrative services to the council, including secretarial and other services necessary for the council to carry out its activities. 3-1085. Cotton research and protection council fund; use by director A. The cotton research and protection council fund is established for the purpose of administering this article. The council shall administer the fund. The fund consists of penalties, fees and other income collected pursuant to this article. B. The director may request the use of fund monies for the nuisance abatement of upland cotton fields as provided for under the abatement provisions of sections 3-204, subsection G and 3-205, subsection G and the plow up of cotton fields under section 3-204.01. Monies distributed pursuant to this subsection shall be repaid to the fund within one calendar year after their disbursement, but the council may extend the repayment period at its discretion and set the terms and conditions for repayment. The council may waive repayment of fund monies by the department. C. The council may deposit monies from fees assessed pursuant to section 3-1086 in the fund. D. The monies in the fund may be invested pursuant to section 35-313. Interest earned on these monies shall be credited to the fund. 3-1086. Fees; collection; plow-up enforcement; budget; civil penalty A. The council, on or before July 1 of each calendar year, shall assess a fee of not to exceed one dollar per bale of cotton produced in this state on land above twenty-seven hundred feet in elevation and not to exceed five dollars per bale of cotton produced in this state on land twenty-seven hundred feet in elevation or below. If the council finds that a program to control cotton pests or diseases is necessary on land above twenty-seven hundred feet in elevation, the council may raise the fee not to exceed three dollars per bale of cotton subject to the council adopting an annual budget for the program. B. Cotton gins shall collect and remit the fee to the council according to procedures and on forms the council prescribes. A gin shall remit at least one-half of the annual fee as established by the council and not designated as a rebate for the plow up of cotton fields as provided in section 3-1087, subsection B on or before February 15 of each year with a report of actual bales ginned through January 31 of each year and an estimate of bales to be ginned by March 15. The remainder of the fee is due on or before March 15 of each year. The portion of the fee that is designated as a rebate for the plow up of cotton fields may be held by the gin, subject to certification by the council that a producer has complied with the plow-up program. On notification of certification to the gin, the fee designated for the plow-up program as a rebate shall be credited to the producer's account of the gin responsible for the remittance of the fee. C. The council may grant extensions for the plow up of cotton fields for weather-related reasons only. The council shall establish, by rule, criteria and a process for granting extensions. D. If a producer fails to comply with the requirement to plow up cotton fields on established dates as required by section 3-1087, subsection B and rules adopted under chapter 2, article 1 of this title, the producer forfeits the fee designated as a rebate under subsection B of this section and section 3-1087, subsection B and is also assessed a civil penalty of one hundred dollars for each acre not in compliance as certified by the council. The rebate must be remitted in full to the council by the gin responsible for the remittance of the rebate. The council shall notify the owner or person in charge of the amount of the civil penalty and the requirement that it must be paid to the council within three months. At the council's request, the attorney general shall file an action in superior court to recover civil penalties assessed pursuant to this subsection. All monies collected under this subsection shall be deposited, pursuant to sections 35-146 and 35-147, in the cotton research and protection council fund established by section 3-1085. The council may adopt rules to implement this subsection. A producer may appeal to the council the forfeited rebate or the assessed penalty applicable to the noncompliant acres pursuant to title 41, chapter 6, article 10. The council may request, under section 3-204.01, that the department plow up cotton fields not in compliance with section 3-1087, subsection B and the rules adopted under chapter 2, article 1 of this title. E. A cotton producer is responsible for payment of the fee unless the fee is withheld for payment to the council by a gin. F. Before establishing the annual fee the council shall establish a budget. The budget is effective on approval of the council. G. Title 41, chapter 6 does not apply to setting the fee under this section, but the council shall provide sixty days' advance notice of the meeting at which the fee will be adopted and the amount of the proposed fee. The council shall receive public testimony at the meeting regarding the fee. 3-1086.01. Colored cotton fee A. On or before July 1 of each year: 1. The department shall submit a proposed budget to the council for enforcing rules regarding colored cotton production. 2. The council may assess a fee of not more than three dollars per bale of colored cotton produced in this state to provide sufficient monies to enforce the rules for colored cotton production. Before establishing the annual fee, the council shall adopt a budget for colored cotton enforcement activities. B. Cotton gins shall collect the fee and remit the monies to the council on or before April 1 of each year according to the procedures and on forms that the council prescribes. C. A cotton producer is responsible for payment of the fee required by this section unless the fee is withheld for payment to the council by a gin. D. Title 41, chapter 6 does not apply to setting the fee under this section, but the council shall provide sixty days' advance notice of the meeting at which the fee will be adopted and the amount of the proposed fee. The council shall receive public testimony at the meeting regarding the fee. E. The council may enter into an intergovernmental agreement pursuant to title 11, chapter 7, article 3 with the department to provide necessary enforcement services for colored cotton. 3-1086.02. Pink bollworm eradication program; fee; registration; civil penalties A. The council may organize and implement a pink bollworm eradication program. The council shall conduct a referendum among eligible cotton producers, as determined by the council, with the assistance of the department and appropriate federal agencies, on the question of establishing a program and fee. The ballot for the referendum shall present the question, "Shall a pink bollworm eradication program and fee of not more than thirty-two dollars per planted acre of cotton be established in this state?" with spaces in which the voter can indicate a vote for or against the proposal. The program may not be established unless either: 1. At least sixty-six per cent of those voting approve of the program. 2. Those voting to approve the program represent more than fifty per cent of the cotton acreage in this state, as determined by the council. B. If approved, the council may choose to either implement a statewide eradication program or establish regional areas in this state for implementation of an eradication program. C. The authority to assess and collect the pink bollworm eradication program fee under this section terminates four years after the date establishing the pink bollworm eradication program statewide or four years after the date implementing a pink bollworm eradication program in a region. D. After a pink bollworm eradication program has been established under this section: 1. The council may assess a fee on or before July 1 each year of not more than thirty-two dollars per planted acre of cotton to control the pink bollworm. Title 41, chapter 6 does not apply to setting the fee under this section, but the council shall provide thirty days' advance notice of the meeting at which the fee will be adopted and the proposed amount of the fee. The fee shall be based on a detailed expenditure plan for that year to control the pink bollworm in non-Bt fields. The council shall approve the expenditure plan before establishing the fee. The council shall provide a copy of the proposed annual expenditure plan to all producers who request a copy within ten days before the meeting at which the fee will be adopted. The council shall receive public testimony at the meeting regarding the fee. 2. The council shall waive the fee for each planted acre of Bt cotton. 3. Thirty days after the date established by rules adopted pursuant to chapter 2, article 1 of this title for abatement of the nuisance of cotton or cotton stubble, each producer shall register each acre of non-Bt cotton with the council on forms prescribed by the council and shall pay the fee in full to the council within sixty days of registration, unless the producer's lender guarantees payment or other arrangements are made to the council's satisfaction or under terms established by the council. The council, at its discretion, may permit late registration. 4. A producer shall not plant non-Bt cotton after the dates established in rules adopted pursuant to chapter 2, article 1 of this title without written permission of the council. 5. The council may impose a civil penalty against a producer of not more than two hundred dollars per acre for each planted acre of non-Bt cotton for failure to register or failure to pay the fee when due under this section. 6. The council shall rebate, under terms established by the council, any collected fees that are not spent for protection from pink bollworm in non-Bt cotton fields statewide or in a region in which the fees were collected. 3-1087. Deposit of fees; rebates; use of monies on termination A. Monies collected pursuant to sections 3-1086, 3-1086.01 and 3-1086.02 shall be deposited and held in trust in the council's accounts and disbursed as approved by the council for the purposes prescribed in this article. B. The council may use monies collected under section 3-1086 as a rebate to cotton producers to facilitate a program to provide incentives for the timely plow up of cotton fields according to the dates established by rules adopted pursuant to chapter 2, article 1 of this title to maintain a host-free period. The council shall issue a rebate only on certification by the council that the cotton field has been plowed up. With the approval of the cotton producer, the rebate may be assigned to a lending institution. C. If the council is terminated, any monies in the council's accounts shall be expended to meet existing legal obligations of the council. The council shall expend any remaining monies on any program consistent with this article. D. The monies in the account may be invested pursuant to section 35-313. Interest earned on these monies shall be credited to the account. 3-1088. Failure to pay fee; penalty; hearing; violation; classification A. A producer required to pay fees pursuant to section 3-1086 who fails to pay the fee shall be assessed a penalty of ten per cent of the total fee. The producer may request a hearing before the council to dispute or determine the amount of a fee or penalty imposed. B. The council shall hold a hearing if requested and no fee or penalty may be paid until the council, following the hearing, enters its order determining the amount of any fee or penalty. The producer shall pay the fee and the penalty assessed within ten days of notice of the council's decision. C. A person who knowingly fails to pay or remit any monies due or collected as required in this article is guilty of a class 2 misdemeanor. 3-1090. Recommendation for termination of council; election A. The council shall put to a vote of the cotton producers in this state the question of whether the council should recommend to the legislature that the council be terminated if either of the following occurs: 1. The council, by a two-thirds vote of its membership, determines that it is no longer in the best interest of the cotton industry of this state to continue the council and its programs. 2. On receipt by the council of a petition calling for the election signed by ten per cent or more of the contributing cotton producers in this state in the previous year, which shall be signed not more than six months before its presentation to the council. B. The ballot for an election called pursuant to subsection A shall be in such form as to record a yes or no answer to the question: "Shall the cotton research and protection council recommend to the legislature that the council and its programs be discontinued and terminated?" If a majority of those producers voting votes yes, the council shall recommend to the legislature that the council be terminated. If less than a majority of the producers voting votes yes, another election shall not be conducted for at least two years. The council shall pay the expenses necessary to carry out the election.