Sec. 41.034.  ELECTIONS TO ADD NEW TERRITORY.  (a)  Producers of an agricultural commodity in an area not within the jurisdiction of a board for that commodity may petition the commissioner to authorize a referendum within an area specified in the petition on the issue of whether or not the area is to be included within the jurisdiction of that board.  The petition must be submitted to the commissioner at least 105 days before the date of the election at which the referendum is to be conducted.
(b)  If the commissioner determines that in the area described there exists among the producers of the commodity an interest in becoming subject to the jurisdiction of the board that is substantial enough to justify a referendum, the commissioner may transmit the petition to the board with an order authorizing the board in its discretion to conduct the election at its own expense.  The petition and order must be transmitted to the board at least 75 days before the date of the election.
(c)  The referendum shall be held on the date of the biennial election of board members.  The board shall give public notice of:
(1)  the date of the election;
(2)  the amount and basis of the assessment collected by the board;
(3)  a description of the manner in which the assessment is collected and the proceeds administered and used;  and
(4)  any other proposition the board proposes to include on the ballot as authorized or required by this chapter.
(d)  The notice under Subsection (c) of this section shall be published in one or more newspapers published and distributed, or generally circulated, within the boundaries described in the petition.  The notice shall be published at least once a week for three consecutive weeks, beginning at least 60 days before the date of the election.  In addition, at least 60 days before the date of the election the board shall give direct written notice to each county agent in any county within the described boundaries.
(e)  A person is qualified to vote in the referendum if he or she is or, for at least one production period during the three years preceding the date of the referendum, has been a producer of the commodity whose production occurs within the area described in the petition.
(f)  A producer who is qualified to vote in the referendum is eligible to be a member of or a candidate for membership on the board.  If the board is elected from districts, a producer within the described boundaries may be a candidate only for at-large positions on the board, if any.  In order to qualify as a candidate, the producer must comply with Section 41.025 of this code, except that the application shall be filed with the board and may not be filed before the first publication of notice under Subsection (d) of this section.
(g)  In the area described in the petition, the ballot shall be prepared and distributed and the election shall be conducted in accordance with the rules of the commissioner under Section 41.022 of this code.
(h)  Except as otherwise provided in this subsection, voters qualified to vote in the referendum are entitled to vote for candidates for membership on the board and for any other proposition printed on the ballot for the regular election.  If board members are elected from districts, voters in the area described in the petition may vote only for at-large positions, if any.
(i)  The ballots cast in the area described in the petition shall be canvassed, and the returns reported, separately from the ballots cast in other areas.  On those returns, the board shall perform the functions of the commissioner described in Section 41.030 of this code, except that the board shall certify whether the referendum proposition carried or was defeated in the area described in the petition.  If the referendum proposition is defeated, the ballots cast in the area described in the petition may not be counted for any other purpose.  If the proposition carries, the returns shall be included in determining the election of board members and the outcome of other propositions.  The area described in the petition becomes subject to the jurisdiction of the board on the day following the date that the result is certified.
Acts 1981, 67th Leg., p. 1085, ch. 388, Sec. 1, eff. Sept. 1, 1981.