Okla. Stat. tit. 2, § 2-3-50.7

Powers and duties - Definition of bonds - Bylaws - Additional

powers, duties and responsibilities - Liability - Compensation.

A. 1. Except as provided by this section, the board of

directors of the Oklahoma Boll Weevil Eradication Organization shall

be composed of five cotton growers from this state who are elected

from the five separate districts established by the board.

2. The terms of office of the elected board of directors shall

be three (3) years.

3. A director may be removed from office by a majority vote of

the board of directors for cause. Causes for removal include the

following:

a. neglect of duty,

b. willful misconduct,

c. malpractice in office,

d. self-dealing,

e. incompetence,

f. gross inefficiency, or

g. any other unbecoming conduct that can or may affect

the ability of the Oklahoma Boll Weevil Eradication

Organization to satisfactorily perform its duties or

carry out its mission as a public body.

All new directors shall take an oath of office before assuming

the role as a director on the board.

4. Directors shall hold office until their respective

successors are elected and take the oath of office.

5. At each election, the cotton grower with the highest number

of votes from each district shall serve on the board of directors.

B. The board of directors shall have the power and duty to:

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1. Appoint a new director from the appropriate election

district to serve the remaining term in the event of a vacancy on

the board of directors;

2. Collect assessments pursuant to the Boll Weevil Eradication

Act;

3. Conduct programs consistent with the Boll Weevil Eradication

Act;

4. Determine and establish the assessment annually for the

following crop year pursuant to the Boll Weevil Eradication Act and

the program enabling referendum. The assessment shall be determined

upon a fair and equitable system that is based on cotton production

and infestation factors. The assessment shall be a flexible rate

not to exceed Seven Dollars and fifty cents ($7.50) per acre and one

cent ($.01) per pound of lint produced. Upon any change in the

assessment rate, the board shall immediately notify growers and

cotton gins of the new rate;

5. Develop bylaws for the due and orderly administration of the

affairs of the board of directors and for its responsibilities

specified pursuant to the provisions of the Boll Weevil Eradication

Act;

6. Develop, implement and pay for a plan for boll weevil

eradication and posteradication maintenance and control in this

state;

7. Advise, consult, and cooperate with agencies of this state,

political subdivisions, other states, the federal government, and

affected groups;

8. Collect and disseminate information relating to boll weevil

eradication and posteradication maintenance and control;

9. Recommend the designation of “eradicated areas” to the State

Board of Agriculture upon completion of active eradication and the

beginning of posteradication maintenance and control;

10. Sue and be sued, implead and be impleaded, complain and

defend in all courts;

11. Adopt, use, and alter at will a corporate seal;

12. Adopt bylaws for the management and regulation of its

affairs and to promulgate and issue rules governing its operations;

13. Appoint officers, agents, and employees and prescribe their

duties and fix their compensation, within any limitations prescribed

by law;

14. Make contracts of every name and nature and execute all

instruments necessary or convenient for the carrying on of the

business of the Oklahoma Boll Weevil Eradication Organization;

15. Accept grants from and enter into contracts or other

transactions with any federal agency;

16. Issue and sell bonds, or borrow money, in amounts as shall

be needed from time to time for the purposes set forth in the Boll

Weevil Eradication Act.

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a. The bonds may:
ng on of the

business of the Oklahoma Boll Weevil Eradication Organization;

15. Accept grants from and enter into contracts or other

transactions with any federal agency;

16. Issue and sell bonds, or borrow money, in amounts as shall

be needed from time to time for the purposes set forth in the Boll

Weevil Eradication Act.

Oklahoma Statutes - Title 2. Agriculture Page 102

a. The bonds may:

(1) be issued in one or more series,

(2) bear the date or dates,

(3) mature at time or times not exceeding twenty (20)

years from their date,

(4) be in denomination or denominations,

(5) be in form, either coupon or registered,

(6) carry registration and conversion privileges,

(7) be executed in a proper manner,

(8) be payable in medium of payment at a place or

places,

(9) be subject to terms of redemption with or without

premium, and

(10) bear rate or rates of interest, as may be

provided by resolution or resolutions to be

adopted by the Board within limits provided by

law, and be sold in a manner and at a price or

prices as may be considered by the Board to be

advisable.

b. Bonds shall have all the qualities and incidents of

negotiable paper, and the interest thereon shall not

be subject to taxation by the State of Oklahoma.

c. The board of directors may issue bonds pursuant to the

Boll Weevil Eradication Act for the purpose of

renewing funding of any obligations of the board of

directors, or may authorize and deliver a single issue

of bonds hereunder for the purpose in part of renewing

funding for obligations of the board.

d. The bonds issued pursuant to the Boll Weevil

Eradication Act shall not be an indebtedness of the

State of Oklahoma but shall be special obligations

payable solely from the assessments. The board of

directors is authorized and directed to pledge all or

any part of the assessments to the payment of and

interest on the bonds.

e. The board of directors may enter into any agreement or

contracts with the United States of America or the

State of Oklahoma or any agency or instrumentality

thereof which it may consider advisable or necessary

in order to obtain a grant of funds or other aid to be

used in connection with the proceeds of the bonds.

f. All bonds issued pursuant to the Boll Weevil

Eradication Act shall have on the backs thereof the

certificate required by Section 29 of Article 10 of

the Constitution of Oklahoma. The bonds shall be

submitted to the Attorney General of Oklahoma for

examination. The bonds, having been examined and

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certified as legal obligations by the Attorney General

in accordance with the requirements as the Attorney

General may make, shall be incontestable in any court

in the State of Oklahoma unless suit thereon shall be

brought in a court having jurisdiction thereof within

thirty (30) days from the date of approval. Bonds so

approved by the Attorney General shall be prima facie

valid and binding obligations according to their

terms. The only defense that may be offered in any

suit instituted after a thirty-day period shall have

expired shall be a violation of the Constitution.

g. Any bank, trust, or insurance company organized under

the laws of Oklahoma may invest its capital, surplus,

and reserves in bonds issued under the provisions of

the Boll Weevil Eradication Act;

17. File an application, at its discretion, with the Supreme

Court of Oklahoma for the validation of the Boll Weevil Eradication

Act or for the approval of any series of bonds to be issued

hereunder or any other actions to be taken by the board of

directors. Exclusive original jurisdiction is hereby conferred upon

the Supreme Court to hear and determine each application.

a. It shall be the duty of the Supreme Court to give

applications precedence over the other business of the

Supreme Court and to consider and pass upon the

applications and any protests that may be filed
sued

hereunder or any other actions to be taken by the board of

directors. Exclusive original jurisdiction is hereby conferred upon

the Supreme Court to hear and determine each application.

a. It shall be the duty of the Supreme Court to give

applications precedence over the other business of the

Supreme Court and to consider and pass upon the

applications and any protests that may be filed

thereto as speedily as possible.

b. Notice of the hearing on each application shall be

given by a notice published in a newspaper of general

circulation in the state that on a day named, the

board of directors will ask the court to hear its

application. The notice shall inform all persons

interested that they may file protests against the

validation or approval and be present at the hearing

and contest the same. The notice shall be published

one time, not less than ten (10) days prior to the

date named for the hearing, and the hearing may be

adjourned from time to time at the discretion of the

court.

c. In any action to approve bonds, if the Supreme Court

is satisfied that the bonds have been properly

authorized in accordance with the provisions of the

Boll Weevil Eradication Act and that when issued they

will constitute valid obligations in accordance with

their terms, the Supreme Court shall render its

written opinion approving the bonds and shall fix the

time within which a petition for rehearing may be

filed. The decision of the Supreme Court shall be a

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judicial determination of the validity of the bonds,

shall be conclusive as to the board of directors, its

officers and agents, and thereafter the bonds so

approved and the revenues pledged to their payment

shall be incontestable in any court in the State of

Oklahoma;

18. Conduct elections, at the discretion of the board of

directors, for any lawful purpose, including, but not limited to,

any assessment modification policy to deal with natural disasters.

Election procedures shall be established by the board of directors.

Fifty percent (50%) or more of the cotton growers voting shall

approve each ballot issue for its adoption;

19. Reexamine the number and composition of the existing

election districts in order to ensure fair and equitable geographic

areas based upon cotton production density. If the board of

directors determines that the number or composition of the election

districts should be reestablished, the board of directors shall:

a. fairly and equitably establish the election districts

necessary utilizing geographic areas based upon cotton

production density as the primary factor,

b. conduct the election of the next board of directors

consistent with this section,

c. hold public hearings regarding the establishment of

election districts,

d. facilitate the expeditious transfer of authority to

the newly elected board of directors, and

e. establish terms of office for the new board consistent

with this section.

Any elected or appointed board member shall have all the powers

and duties as granted pursuant to the Boll Weevil Eradication Act;

and

20. Take any other actions deemed necessary by the board of

directors to implement the provisions of the Boll Weevil Eradication

Act.

C. As used in this section, "bonds" means bonds, notes, loan

agreements, or other forms of indebtedness issued or delivered by

the Oklahoma Boll Weevil Eradication Organization.

D. The bylaws established by the board of directors relating to

boll weevil eradication and the assessment referenda shall be

submitted to the State Board of Agriculture for determination as to

whether the bylaws will be promulgated as rules of the State Board

of Agriculture. The bylaws may be promulgated in whole or in part

or may be returned for modification to the board of directors. The

State Board of Agriculture shall comply with the Administrative
boll weevil eradication and the assessment referenda shall be

submitted to the State Board of Agriculture for determination as to

whether the bylaws will be promulgated as rules of the State Board

of Agriculture. The bylaws may be promulgated in whole or in part

or may be returned for modification to the board of directors. The

State Board of Agriculture shall comply with the Administrative

Procedures Act in promulgating any rules adopted pursuant to the

provisions of this subsection.

E. The board of directors shall:

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1. Make available all books, records of account, and minutes of

proceedings maintained by the Organization for inspection by the

Office of the State Auditor and Inspector for an audit in accordance

with the provisions of subsection B of Section 212 of Title 74 of

the Oklahoma Statutes;

2. Not later than forty-five (45) days after the last day of

the fiscal year, submit to the Commissioner a report itemizing all

income and expenditures and describing all activities of the

Organization during the fiscal year;

3. Provide surety bonds in amounts determined by the

Commissioner for employees or agents who handle funds for the

Organization;

4. Receive, hold in trust, and disburse all assessments and

other funds collected pursuant to the Boll Weevil Eradication Act as

trust funds of the Organization; and

5. Make available all books, records of account, and minutes of

proceedings of the Organization for inspection or audit by the

Commissioner at any reasonable time.

F. 1. Pursuant to the authority granted by the Boll Weevil

Eradication Act, except for instances of gross negligence,

individual criminal actions or acts of dishonesty, the board of

directors and employees of the board of directors are not

individually liable to a cotton grower or other person for:

a. errors in judgment,

b. mistakes, or

c. omissions.

2. Under no circumstances shall the board of directors, the

individual board members, or employees of the board of directors be

personally liable for any bonds of the Organization.

3. A member of the board of directors or an employee of the

board of directors is not individually liable for an act or omission

of another member or employee of the board of directors.

G. The board of directors shall serve without compensation but

are entitled to reimbursement for reasonable and necessary expenses

incurred in the discharge of their duties.