TITLE 4.AGRICULTURE

Part 1. TEXAS DEPARTMENT OF AGRICULTURE

Chapter 3. BOLL WEEVIL ERADICATION PROGRAM

Subchapter J. ORGANIC COTTON RULES

4 TAC §3.608

The Texas Department of Agriculture (the department) adopts amendments to §3.608 (b) concerning Calculation of Indemnity or Compensation under the department's organic cotton rules, without changes to the proposal published in the June 15, 2001 issue of the Texas Register (26 TexReg 4357). The amendment is adopted to create a timetable that will work under the current indemnity and compensation formulas thereby creating a more efficient manner of compensating organic growers who are eligible for payment under the department's organic cotton rules. The current October 31 due date for all payment was established under a process where a payment was only given when a crop was destroyed due to infestation, and the destruction would have occurred prior to the October 31 date. Under current, recently amended rules, an organic grower is allowed to grow out acreage that is treated by the foundation under emergency pest or disease treatment program provisions as provided under Chapter 18 of this title (relating to Organic Standards and Certification). With this scenario, the Texas Boll Weevil Eradication Foundation (the foundation) would not have the data necessary to provide compensation until the crop is harvested and gin receipts are provided to indicate the amount of cotton harvested from treated fields. The amendment is adopted at the request of foundation staff and organic growers, and provides for payment of compensation within 30 days of the foundation's receiving the gin receipts from treated acres. In addition, the indemnification for crop destruction is also changed to be consistent, by requiring payment to be made within 30 days from the date of verification of actual crop destruction.

No comments were received on the proposal.

The amendments to §3.608 are adopted under the Texas Agriculture Code §74.125, which provides the department with the authority to develop rules and procedures for growing of organic cotton in boll weevil eradication zones, including rules that provide indemnification for organic cotton growers for reasonable losses that result from a prohibition of production of organic cotton or from any requirement of destruction of cotton; and the Code, §74.120, which provides the department with the authority to adopt reasonable rules to carry out the purposes of the Code, Chapter 74, Subchapter D.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on July 17, 2001.

TRD-200104104

Dolores Alvarado Hibbs

Deputy General Counsel

Texas Department of Agriculture

Effective date: August 6, 2001

Proposal publication date: June 15, 2001

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