Part 1. TEXAS DEPARTMENT OF AGRICULTURE

Chapter 20. COTTON PEST CONTROL

The Texas Department of Agriculture (the department) proposes amendments to §§20.1 and 20.22, new §20.23, all concerning cotton pest control, and the repeal §20.4, concerning an expiration provision for Chapter 20. The proposed amendments to §20.1 and new §20.23 are proposed to assist no-till cotton farmers in complying with the stalk destruction requirements under the Texas Agriculture Code (the Code) Chapter 74; subchapter A. The current regulations do not allow for the use of a no-till farming approach toward meeting the cotton stalk destruction requirements. Section 20.1 defines terms used in Chapter 20 and is amended to include definitions of the terms "no- till fields" and "non-hostable cotton."

New §20.23 provides exceptions for no-till cotton in meeting cotton stalk destruction requirements. Growers will be required to provide advance notification of no-till cotton fields to the department prior to destruction deadlines and comply with the department requirements by rendering cotton plants non-hostable to boll weevils.

Amended §20.22 will provide greater flexibility for the Cotton Producers Advisory Committee in a zone to request a blanket extension of the cotton stalk destruction deadlines.

The department also proposes the repeal of §20.4, concerning an expiration date for Chapter 20. The repeal of §20.4 is proposed because the establishment of an expiration date for Chapter 20 is no longer necessary due to the enactment of legislation establishing a timeframe for review of agency rules. The repeal of §20.4 eliminates the expiration date of Chapter 20.

Ed Gage, coordinator for pest management, has determined that for the first five-year period the proposed amendments, new section and proposed repeal are in effect there is no anticipated fiscal impact on state or local government as a result of administration and enforcement of the section.

Mr. Gage has also determined that for each year of the first five years the proposed amendments, new section and proposed repeal are in effect the public benefit anticipated as a result of administrating the amended and new section will be an opportunity for cotton producers to practice no-till farming on a voluntary basis while complying with the department's stalk destruction requirements. The advantages of no-till farming include improved soil and water conservation. Allowing the chairman of a Cotton Producers Advisory Committee to request an extension to a cotton stalk destruction deadline will facilitate and improve the process of granting extensions. The public benefit of the repeal of §20.4 will be the elimination of unnecessary rules. There is no anticipated additional economic cost to micro-businesses, small businesses or growers required to comply with the amended and new sections.

Comments on the proposal may be submitted to Ed Gage, coordinator for pest management, Texas Department of Agriculture, P.O. Box 12847, Austin, Texas 78711. Comments must be received no later than 30 days from the date of the publication of the proposal in the Texas Register.

Subchapter A. GENERAL PROVISIONS

4 TAC §20.1

The amendments to §20.1 are proposed in accordance with the Texas Agriculture Code (the Code), §74.006, which provides the department with the authority to adopt rules as necessary for the effective enforcement and administration of Chapter 74, Subchapter A; and §74.004 which provides the department with the authority to establish regulated areas, dates and appropriate methods of destruction of stalks, other parts, and products of host plants for cotton pests.

The code that is affected by the proposal is the Texas Agriculture Code, Chapter 74, Subchapter A.

§20.1.Definitions.

In addition to the definitions set out in the Texas Agriculture Code and in the Texas Administrative Code the following words and terms, when used in this chapter, shall have the following meanings unless the context clearly indicates otherwise.

(1)-(16)

(No change.)

(17)

Non-hostable cotton - Cotton that is free of fruiting structures such as buds, squares, flowers or bolls.

(18)

No-till cotton field - A field in which the soil is left undisturbed from the time the cotton crop is harvested until the new crop is planted in narrow slots and weed control is accomplished using herbicides.

(19)

[ (17) ] Oil mill waste--Waste products, including linters, derived from the milling of cotton seed.

(20)

[ (18) ] Plow--To dislodge or sever the roots of plants in a manner which prevents further growth. Equipment used to accomplish this could include a stalk puller, any type of plow, or similar implement.

(21)

[ (19) ] Quarantined area--Any portion of the State of Texas which has been placed under quarantine by the department due to cotton pest(s) infestation.

(22)

[ (20) ] Quarantined articles--The following articles are quarantined: boll weevil; pink bollworm; cotton; cotton products; any means of transportation which have been used in conveying cotton products and any other item contaminated with cotton or cotton pests, including any equipment used in harvesting cotton. Baled cotton and manufactured cotton products are not quarantined articles.

(23)

[ (21) ] Regrowth cotton--Cotton that has not been completely destroyed in such a way as to absolutely prevent further growth.

(24)

[ (22) ] Seed cotton--All forms of unginned cotton from which the seed has not been separated.

(25)

[ (23) ] Stalk puller--An implement which dislodges the roots of cotton plants by pulling up the stalks.

(26)

[ (24) ] Standing stalks--Original, undestroyed cotton plants growing in a field before or after harvesting.

(27)

[ (25) ] Suppressed area--An area declared by the commissioner of agriculture in which the movement of quarantined articles presents a threat to the success of eradication of either pink bollworm or boll weevil. The commissioner may grant such a designation after a written recommendation is submitted to the department from the Texas Boll Weevil Eradication Foundation, the Director of the Texas Agricultural Extension Service, the Director of the Texas Agricultural Experiment Station, or the United States Department of Agriculture (USDA) which includes competent scientific documentation indicating that movement of quarantined articles into the area presents a threat to the success of eradication in an eradication area.

(28)

[ (26) ] Treatment--The act of eliminating possible cotton pest infestation(s) by means of cleaning, or fumigation in instances in which normal cleaning will not eliminate the infestation.

(29)

[ (27) ] Volunteer cotton--Cotton developing after the growing season from incidental seeds.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on June 9, 2000.

TRD-200004067

Dolores Alvarado Hibbs

Deputy General Counsel

Texas Department of Agriculture

Earliest possible date of adoption: July 23, 2000

For further information, please call: (512) 463-4075

4 TAC §20.4

(Editor's note: The text of the following section proposed for repeal will not be published. The section may be examined in the offices of the Texas Department of Agriculture or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The repeal of §20.4 is proposed in accordance with the Texas Agriculture Code (the Code), §12.016, which provides the department with the authority to adopt rules as necessary for administration of the Code.

The code that is affected by the proposal is the Texas Agriculture Code, Chapter 12 and Chapter 74, Subchapter A.

§20.4.Expiration Provision.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on June 9, 2000.

TRD-200004065

Dolores Alvarado Hibbs

Deputy General Counsel

Texas Department of Agriculture

Earliest possible date of adoption: July 23, 2000

For further information, please call: (512) 463-4075

4 TAC §20.22, §20.23

The amendments to §20.22 and new §20.23 are proposed in accordance with the Texas Agriculture Code (the Code), §74.006, which provides the department with the authority to adopt rules as necessary for the effective enforcement and administration of Chapter 74, Subchapter A; and §74.004 which provides the department with the authority to establish regulated areas, dates and appropriate methods of destruction of stalks, other parts, and products of host plants for cotton pests.

The code that is affected by the proposal is the Texas Agriculture Code, Chapter 74, Subchapter A.

§20.22.Stalk Destruction Requirements.

(a)-(b)

(No change.)

(c)

Deadline extension requests.

(1)

(No change.)

(2)

The department may grant a blanket extension of the destruction deadline covering an entire cotton stalk destruction zone or a portion of an entire zone in any one of the following circumstances: [ . A written request for an extension of the destruction deadline must be submitted on a form prescribed by the department. ]

(A)

in response to a written request by the cotton producer advisory committee, in a given zone authorized and signed by a majority of the committee members;

(B)

in response to a written request by the chairman of the cotton producer advisory committee, or his designee, on behalf of the committee; or

(C)

in response to a significant number of individual written requests for individual extensions from cotton producers in a given zone as the result of an extreme weather event such as prolonged periods of heavy rain, prolonged periods of drought, a tropical storm, a hurricane, or other such extreme weather event.

(3)-(5)

(No Change.)

§20.23.Exceptions For No-Till Cotton.

(a)

Exceptions for no-till cotton are not allowed in Zones 9 and 10.

(b)

The location and acreage of no-till cotton fields in any pest management Zone, except Zones 9 and 10, shall be reported to the department at least 14 days before the applicable cotton stalk destruction deadline on a notification form prescribed by the department.

(c)

Cotton shall be rendered non-hostable by the stalk destruction date indicated for the zone by shredding standing stalks and/or plowing depending on the zone.

(d)

If fruiting structures are present after the destruction deadline, the cotton shall be immediately shredded and plowed in Zones 1-4 and shredded and/or plowed in Zones 5-8. Once a field has been destroyed mechanically due to the presence of fruiting structures after the destruction deadlines, the field is not eligible for the no-till exceptions until the following growing season.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on June 9, 2000.

TRD-200004066

Dolores Alvarado Hibbs

Deputy General Counsel

Texas Department of Agriculture

Earliest possible date of adoption: July 23, 2000

For further information, please call: (512) 463-4075

4 TAC §§25.1 - 25.12

The Board of Directors of the Texas Agricultural Finance Authority (TAFA), a public authority within the Texas Department of Agriculture, proposes new §§25.1-25.12, concerning the Rural Development Finance Program. The new sections are proposed for the implementation and administration of the Rural Development Finance Program pursuant to Texas Agriculture Code, Chapter 58. New §§25.1-25.5 state the authority and purpose of the program, provide definitions, describe the procedure for public information requests, and provide an address for communications with TAFA. New §§25.6-25.7 describes the Texas Agricultural Fund and identifies the project eligibility requirements and the eligible and ineligible uses of loan proceeds. New §25.8 describes the requirements for filing an application and the application review process by TAFA. New §25.9 describes the contents of an application to the program. New §25.10 describes the general terms and conditions of TAFA's commitment, including minimum and maximum commitments, terms, interest rate, and maturity. New §25.11 describes the criteria for approval of a commitment by TAFA. New §25.12 provides authority for TAFA staff to act as necessary for the collection, settlement and enforcement of financing approved under the program.

Robert Kennedy, deputy assistant commissioner for finance, has determined that for the first five-year period the sections are in effect there will be no fiscal implications for state government as a result of enforcing or administering the sections, because any cost of administering the program will be offset by the program revenues.

Mr. Kennedy also has determined that for each year of the first five years the new sections are in effect the public benefit anticipated as a result of enforcing the sections, will be the provision of financial assistance to borrowers for the enhancement of rural economic development in the state. The anticipated economic cost to applicants will be an application fee to be determined by TAFA. There may be additional costs to applicants who are required to comply with the rules, to the extent that expenses are incurred in preparing an application to the program. However, these costs are expected to be minimal.

Comments on the proposed new sections may be submitted to Robert Kennedy, Deputy Assistant Commissioner for Finance, Texas Department of Agriculture, P. O. Box 12847, Austin, Texas, 78711. Comments must be received no later than 30 days from the date of publication of the proposed rules in the Texas Register .

The new sections are proposed under the authority of the Texas Agriculture Code (the Code), §58.023, which provides that TAFA has the power to adopt rules and procedures as necessary to carry out Chapter 58; and Texas Government Code, §2001.004, which requires that state agencies adopt rules of practice stating the nature and requirement of all available formal and informal procedures.

Texas Agriculture Code, Chapter 58, is effected by the proposal.

§25.1.Authority.

Through action of the Texas Legislature and the approval of the Texas voters, the Texas Agricultural Finance Authority (the Authority) is authorized by §58.021(d) of the Texas Agriculture Code and by Article III, §49-f of the Texas Constitution to design and implement programs to further rural economic development and to issue general obligation bonds in the maximum principal amount of $200 million outstanding at any one time for such programs. The proceeds of such bonds are required to be deposited in the Texas agricultural fund, to be administered in the same manner that proceeds of bonds issued under Article III, § 49-i of the Texas Constitution are administered.

§25.2.Purpose.

The purpose of the Authority is to provide financial assistance to eligible agricultural businesses and to other rural economic development projects that the board of the Authority considers to present a reasonable risk and have a sufficient likelihood of repayment. The Authority is mandated to support the expansion, development, and diversification of production, processing, marketing, and exporting of Texas agricultural products and to support rural economic development projects. These rules establish standards of eligibility and the application procedures for the Authority's rural development finance program.

§25.3.Definitions.

The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise.

(1)

Act - The Texas Agricultural Finance Act, Texas Agriculture Code, Chapter 58, as amended.

(2)

Applicant - Any rural person, corporation, partnership, cooperative, joint venture, sole proprietorship, city, county, state agency, institution of higher education, economic development corporation, or other unit of public government filing an application with the Authority for a financial commitment.

(3)

Application - An application, including supporting documentation and schedules as required by the Authority, for participation in the program.

(4)

Authority - The Texas Agricultural Finance Authority.

(5)

Board - The board of directors of the Authority.

(6)

Bond - Any type of obligation issued under the Act, including without limitation, any bond, note, draft, bill, warrant, debenture, interim certificate, revenue of bond anticipation note, grant, or any other evidence of indebtedness.

(7)

Business day - A day on which the department is open for business. The term shall not include Saturday, Sunday, or a traditional holiday officially observed by the state. The department's normal business hours are 8 a.m. to 5 p.m. each business day.

(8)

Commitment - Any form of financial assistance provided to an applicant as approved by the board, including a guaranty, a direct loan, a participation commitment, or a conduit issuance for a political subdivision or any other entity providing economic development to a rural area of the state.

(9)

Department - The Texas Department of Agriculture.

(10)

Direct loan - A loan made by the Authority to an eligible applicant as identified in the application and the loan documents.

(11)

Fund - The Texas Agricultural Fund.

(12)

Guarantied loan amount - With respect to loans made by a lender and guarantied by the Authority, a sum measured in terms of U.S. dollars that the Authority pays to a lender to acquire an undivided interest in any loan, or in the case of default by borrower, the Authority agrees to pay a lender, not to exceed up to 90 percent of the loan amount or $5 million, whichever is less. The guaranty percentage approved by the board will be that stated in the guaranty agreement negotiated between the Authority and the lender. The lender is required to negotiate an agreement to sell the Authority a participation in the guarantied loan in an amount of no more than 80 percent of the guarantied amount. The Authority will pay the lender a servicing fee as approved by the board.

(13)

Interest rate - The interest rate charged on a commitment approved by the Authority board for an eligible applicant.

(14)

Lender - A lending institution, including a bank, trust company, banking association, savings bank, mortgage company, investment banker, credit union, underwriter, life insurance company, or any affiliate of those entities, and also including any other financial institution or governmental agency that customarily provides financing for rural economic development loans or mortgages, or any affiliate of such institution or agency.

(15)

Project - An enterprise or project, which would further economic development of a rural area.

(16)

Qualified application - A completed application, including all documents and information required by the Authority and submitted by the lender or applicant for a project, that is consistent with the purpose of rural economic development.

(17)

Rural area - A rural area means an area which is predominately rural in character, and the board defines and considers to be a rural area.

(18)

Staff - The staff of the Authority or staff of the department performing work for the Authority.

(19)

State - The State of Texas.

§25.4.Examination of Records.

Any party requesting the examination of records pursuant to the Texas Public Information Act, Texas Government Code, Chapter 552, shall indicate in writing the specific nature of the document to be viewed, and if copies are desired.

§25.5.Written Communication with the Authority.

Applications and other written communications to the Authority should be addressed to the attention of the Texas Agricultural Finance Authority, in care of the Texas Department of Agriculture, P. O. Box 12847, Austin, Texas 78711.

§25.6.Texas Agricultural Fund.

The fund, established in the office of the state comptroller, shall include a rural economic development program account consisting of general obligation bond proceeds, appropriations or transfers made to the account, guaranty fees, monies received from the operation of the rural economic development program, interest paid on money in the account from the operation of the program, interest paid on money in the account and any other monies received from other sources for the account. The board may provide for the establishment and maintenance of separate subaccounts within the account, including, but not limited to, loan guaranty subaccounts, direct loan subaccounts, participation purchase subaccounts, project accounts, reserve accounts and interest and sinking subaccounts as prescribed by the board.

§25.7.Project Eligibility Requirements.

(a)

Projects. An applicant is eligible for a commitment from the Authority if the proposed project meets the following criteria:

(1)

the project provides significant benefits for the maintenance, expansion or development of rural economic development activity;

(2)

the project will create or retain employment, directly or indirectly;

(3)

the applicant provides a reasonable level of equity for the project as defined in the credit policy and procedures;

(4)

the applicant is a legal entity under the laws of the United States of America and the State of Texas;

(5)

the applicant has a principal place of business in the state; and

(6)

if the applicant is a corporation, partnership, cooperative or joint venture, the applicant's principal owner or owners provide personal guarantees satisfactory to the Authority.

(b)

Project costs. The proceeds of the commitment provided by the Authority may be used only to finance expenditures incurred in connection with the development of the project as identified in the budget filed with the application and approved by the board.

(c)

Ineligible project costs. Any expenditure that is not identified in the approved budget filed with the application, or is otherwise prevented by regulation or statute, is not eligible for financing hereunder, unless the applicant provides evidence that such expenditure is necessary for completion of the project and will not increase the commitment approved.

§25.8.Filing Requirements and Consideration of Applications.

(a)

Application forms. An applicant or lender seeking a commitment from the Authority may use the application forms provided by the Authority.

(b)

Submission of a qualified application. Applicants are required to submit the application material to the Authority staff for presentation to the board of the Authority. Staff will be available prior to submission of the qualified application to discuss project eligibility.

(c)

Staff review. Staff will review the qualified application for completeness and will notify the applicant of any additional information required. When all required information has been received, staff will conduct a credit review, evaluate the technical and market feasibility of the project, and examine the benefits of the project for economic growth in the state.

(d)

Board review. Staff will submit a report on each qualified application to the board containing a recommendation by staff. The board may, in its discretion, recommend the imposition of additional conditions and requirements in the approval of a qualified application. Approval of a qualified application will be by a majority of a quorum of the board, except for commitments over $2 million which must be approved by a positive vote of two-thirds of the board.

(e)

Notification of approval. Upon conditional approval of the qualified application by the board, the Authority will notify the applicant in writing identifying the terms and conditions of the commitment provided. The applicant must accept the conditions of the board within 30 days to accept the commitment and 90 days to close the commitment, provided that the board may approve one additional extension of the commitment for a period of no more than 60 days. The Authority will prepare the closing documents in cooperation with the Authority's legal counsel and notify borrower of the closing date established.

(f)

Denial of qualified application. If the qualified application is denied by the board, the Authority will notify the applicant in writing identifying the reasons for denial. Applicants who have been denied may re-apply to the program.

(g)

Reporting to the board. Staff shall report to the board at each board meeting the status of loans and current commitments of the Authority.

(h)

Providing false information. An applicant who knowingly provides false information in an application is liable to the Authority for any expense incurred by the Authority that would not have been incurred if the applicant had not provided the false information. Any commitment provided by the Authority under false pretenses will be subject to termination with a full repayment of any and all proceeds disbursed to the applicant by the Authority. In addition, the Authority may pursue any other remedies provided by law.

(i)

Historically Underutilized Businesses. The Authority shall make a good faith effort to make available commitments to historically underutilized businesses. For purposes of this subsection, the term "Historically Underutilized Business" is defined as provided in the Texas Government Code, Chapter 2161, §2161.001(2).

§25.9.Contents of Qualified Application.

(a)

Required information. The qualified application must set forth the information necessary for the determination of eligibility and will include the following, if applicable:

(1)

applicant's name, address and telephone numbers;

(2)

names, addresses, resumes, and references of owners, principal investors, board members, and/or management, including percentage of ownership of the business, if applicable;

(3)

articles of incorporation and bylaws, a certificate of good standing with the secretary of state, or other instruments that establish or describe the legal operation or structure of the applicant and/or the business;

(4)

a business plan which includes the following:

(A)

information describing the products, services, or public works to be offered;

(B)

a statement of how such products or services will help to expand, develop, or diversify the rural economy of the state;

(C)

an estimate of the number of jobs created or retained by the project; and

(D)

a statement of what percentage of Texas products and suppliers will be used by the project.

(5)

three years of historical balance sheets, cash flow statements, income statements, and federal and/or state tax returns;

(6)

a pro forma balance sheet, which incorporates the new financing, to be provided by the applicant and/or the lender;

(7)

pro forma cash flows, income statements and balance sheets for at least three years, including the underlying assumptions used, to be provided by the applicant and/or the lender;

(8)

a statement of the interest rate used in the pro forma statements;

(9)

a statement of any licensing requirements;

(10)

a statement that addresses the effect of the business on the tax base of the area and any other positive and negative effects of the project on the area;

(11)

assurance of compliance with local zoning laws and building codes, and that the necessary public utilities are available or will be available when needed by the project;

(12)

for construction projects, the approximate date construction will commence, completion date, and date by which the project will be fully operational; including copies of cost estimates for construction;

(13)

documentation that the preliminary design stage has been completed;

(14)

disclosure of any and all business and familial affiliations of the applicant, or its owners, principal investors, board members, and management with members of the board, employees of the department, staff, and/or the lender which could present a conflict of interest; and

(15)

if applicable, a personal history questionnaire and acknowledgment form for all guarantors and/or owners with more than 20% ownership.

(b)

Other matters. The applicant must submit any other information as requested by staff or the Authority.

§25.10.General Terms and Conditions of the Authority's Commitment.

(a)

Permissible use of commitment. The Authority's commitment is to be used to finance the project identified in the qualified application.

(b)

Minimum amount commitment. The Authority shall not provide a commitment to an applicant where the amount of the commitment is less than $100,000.00.

(c)

Maximum amount commitment. The Authority shall provide a commitment to an applicant in an amount approved by the board of the Authority.

(d)

Interest. The interest rate on the commitment shall be the rate approved by the Authority.

(e)

Maturity. The maturity of the commitment must not exceed the useful life of the collateral and may be negotiated between the Authority and the applicant.

(f)

Security. Loans must be secured by collateral of a type, amount, and value which, when considered with other criteria, affords reasonable assurance of repayment.

(g)

Fees. The Authority may approve fees, as it deems appropriate on a case-by-case basis. A nonrefundable application fee will be required with the qualified application. Any and all legal fees incurred by the board in issuing a commitment will be an obligation of the applicant.

(h)

Closing the commitment provided. The applicant and the commissioner of agriculture or commissioner's designee may attend the verification and signing of the closing documents as prepared by staff.

(i)

Reporting requirements for a commitment provided by the Authority. The applicant shall provide to the Authority or lender, whichever is applicable, annual financial statements including a balance sheet, income statement and a cash flow statement; payment receipts of personal property taxes; and a statement of the annual employment of the applicant's business to the Authority. Annual employment shall be expressed in terms of annual full-time equivalent positions. If necessary, the Authority may request other reports or documentation reasonably necessary for an assessment of the applicant's compliance with the program.

§25.11.Criteria for Approval of a Commitment.

(a)

Need for a commitment. The Authority shall consider whether the desired project financing appears to be available to the applicant on reasonable terms from other lenders. The Authority may direct the applicant to other sources for co- participation in the commitment.

(b)

Reasonable risks. There must be reasonable assurance, in the judgment of the Authority, that the commitment provided can and will be repaid according to its terms. In making this judgment the Authority may consider the following:

(1)

evidence of the manner, means, and security of payment by the applicant;

(2)

projected cash flow earnings of the applicant;

(3)

firm commitments from other independent and responsible financial sources for all other funds in excess of the commitment provided;

(4)

collateral and other sources of guaranties or insurance securing the commitment provided;

(5)

credit history and financial condition of the applicant; and

(6)

historical financial information of applicant.

(c)

The Authority has adopted a Credit Policy and Procedures document which contains additional criteria and guidelines used by the Authority in the review and application approval process. The Credit Policy and Procedure document is adopted by reference herein. Copies may be obtained from Finance and Agribusiness Development Division, Texas Department of Agriculture, P. O. Box 12847, Austin, Texas 78711, (512) 475-1619.

§25.12.Collateral Administration.

(a)

Except as otherwise provided by state law, by these rules or by resolution of the board, the staff, with the approval of the commissioner of agriculture, the deputy commissioner of agriculture or the official of the department designated by the commissioner of agriculture as being responsible for the department's program, shall have the authority to act on behalf of the Authority, without specific board approval, in regard to the collection, settlement and enforcement of each and every commitment under the program. Such authority shall include, without limitation, the actions required to be taken by the Authority under any loan agreement, any participation agreement and any other agreement entered into by the Authority concerning commitments provided by the Authority.

(b)

Nothing in this section shall prevent the staff or the commissioner of agriculture, the deputy commissioner, or official of the department designated by the commissioner of agriculture from submitting any matter to the board for its consideration and approval.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on June 12, 2000.

TRD-200004100

Dolores Alvarado Hibbs

Deputy General Counsel

Texas Department of Agriculture

Earliest possible date of adoption: July 23, 2000

For further information, please call: (512) 463-4075