Arkansas Code
Subchapter 6 - Arkansas Boll Weevil Suppression Eradication Act
§ 2-16-612. Certification of cotton growers' organization — Requirements

(a) The State Plant Board may certify a cotton growers' organization for the purpose of entering into agreements with the State of Arkansas, other states, the federal government, and such other parties as may be necessary to carry out the purposes of this subchapter.
(b)
(1) In order to be eligible for certification by the State Plant Board, the cotton growers' organization must demonstrate to the satisfaction of the State Plant Board that:
(A) It is a nonprofit organization and could qualify as a tax-exempt organization under § 501(a) of the Internal Revenue Code of 1986, as amended.
(B) Membership in the organization will consist of all cotton growers in an eradication zone.

(2) The organization shall have only one (1) class of members with each member entitled to only one (1) vote.

(c) The organization's board of directors shall be composed as follows:
(1) Two (2) Arkansas cotton growers recommended by the State Plant Board, to be appointed by the Governor;
(2) Three (3) Arkansas cotton growers recommended by the Arkansas Farm Bureau Federation, to be appointed by the Governor;
(3) Three (3) Arkansas cotton growers recommended by the Agricultural Council of Arkansas, to be appointed by the Governor;
(4) One (1) representative of state government from this state recommended by the State Plant Board, to be appointed by the Governor; and
(5) The cochairs of the University of Arkansas Boll Weevil Eradication Technical Advisory Committee will serve as ex officio members of the cotton growers' organization board to serve in an advisory capacity.

(d)
(1) All books and records of accounts and minutes of proceedings of the organization shall be available for inspection or audit by the board at any reasonable time.
(2) Employees or agents of the growers' organization who handle funds of the organization shall be adequately bonded in an amount to be determined by the State Plant Board.

(e)
(1) In addition to any authority granted the certified cotton growers' organization, the organization may borrow funds from any bona fide lender, including any state entity or authority, instruct the Arkansas Development Finance Authority to issue bonds under § 15-5-101 et seq., or to issue bonds in any other appropriate manner, any of which credit arrangements may be secured by a pledge of funds derived from assessments against cotton grower members of the organization.
(2)
(A) Any funds borrowed and any funds derived from the sale of bonds shall be used exclusively for funding a boll weevil suppression or eradication program.
(B) Funds derived from assessments against cotton grower members of the organization shall be used to pay the operating expenses of the boll weevil suppression or eradication program and to repay any loans or obligations incurred by the boll weevil suppression or eradication program.

(f)
(1) Upon being certified as the certified cotton growers' organization under this subchapter, the certified cotton growers' organization and its board of directors are granted all the immunities and protections allowed under § 16-120-701 et seq., notwithstanding the requirements of § 16-120-702(a).
(2) The certified cotton growers' organization may indemnify its directors against liability incurred in connection with their duties as board members.

(g)
(1) In order for a cotton growers' organization to maintain certification by the State Plant Board, it shall provide that its board of directors serve four-year terms of office except that on July 1, 2004, the terms shall be staggered so that, to the extent possible, an equal number of members' terms shall expire each year.
(2) Members of the board of directors may succeed themselves.
(3)
(A) Within the parameters of subdivision (g)(3)(B) of this section, the cotton growers' organization shall ensure that the five (5) eradication zones as they existed on January 1, 2003, are represented on the board of directors in proportion to the number of acres of cotton planted in each zone using the prior three (3) years' average acreage to determine the proportional representation.
(B) Beginning July 1, 2004, the cotton growers' organization shall cause its board of directors to be composed of:
(i) At least one (1) member but no more than (2) members who reside within the Southeast Boll Weevil Eradication Zone as it existed on January 1, 2003;
(ii) At least one (1) member but no more than (2) members who reside within the Southwest Boll Weevil Eradication Zone as it existed on January 1, 2003;
(iii) At least one (1) member but no more than (2) members who reside within the Central Boll Weevil Eradication Zone as it existed on January 1, 2003;
(iv) At least one (1) member but no more than (2) members who reside within the Northeast Ridge Boll Weevil Eradication Zone as it existed on January 1, 2003; and
(v) At least one (1) member but no more than (2) members who reside in the Northeast Boll Weevil Eradication Zone as it existed on January 1, 2003.

(4) As vacancies occur, they shall be filled in a manner that will, to the extent possible, ensure the proportional representation required in subdivision (g)(3)(A) of this section.