TITLE 4.AGRICULTURE

Part 1. TEXAS DEPARTMENT OF AGRICULTURE

Chapter 3. BOLL WEEVIL ERADICATION PROGRAM

Subchapter E. CREATION OF ERADICATION ZONES

4 TAC §3.117

The Texas Department of Agriculture (the department) proposes new §3.117 concerning the creation of a nonstatutory boll weevil eradication zone The new section is proposed to establish a new nonstatutory boll weevil eradication zone consisting of counties not currently located in a statutory zone created under Chapter 74, Subchapter D, §74.1021. New §3.117 proposes, upon the request of a representation of cotton growers in Austin, Brazoria, Colorado, Fort Bend, Jackson, Matagorda, Wharton and Waller counties, the designation of the Upper Coastal Bend Boll Weevil Eradication Zone, in accordance with the Texas Agriculture Code, §74.1042.

Brian Murray, special assistant for producer relations, has determined that for the first five-year period the section is in effect there may be no fiscal implications for state as a result of enforcing or administering the new section. For the first two years of the program, the costs of administering the boll weevil eradication program in the new zone will be paid by grower assessments and federal funds. In the following three years, there may be state funds available to offset some costs of the program. It is not possible at this time to determine whether or not those funds will be available, or what the amount of such funding would be. The date of availability and amount of funding made available for use by this zone would be set by the Texas Legislature. There will be no fiscal implications for local government as a result of enforcing or administering the new section.

Mr. Murray also has determined that for each year of the first five years the section is in effect the public benefit anticipated as a result of enforcing the sections will be that cotton growers in the affected area will have a local, efficient, and responsive eradication program to facilitate boll weevil eradication in Texas. The anticipated economic cost to microbusinesses, small businesses and individuals who will be required to comply with the new sections, as proposed, is not determinable at this time. If the proposed zone is established and an eradication program and assessment approved by cotton growers in the zone, cotton growers in the zone will be assessed annually to cover costs of an eradication program in that zone. The costs to individual growers will depend on voter approval of an eradication program and assessment, and the amount of the assessment established for the zone.

Comments on the proposal may be submitted to Brian Murray, Special Assistant for Producer Relations, P. O. Box 12847, Austin, Texas 78711, and must be received no later than 30 days from the date of the publication of this proposal in the Texas Register .

The new section is proposed under the Texas Agriculture Code, §74.1042, which provides the commissioner of agriculture with the authority, by rule, to designate an area of the state as a proposed boll weevil eradication zone.

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

§3.117.Upper Coastal Bend Boll Weevil Eradication Zone.

The Upper Coastal Bend Boll Weevil Eradication Zone shall consist of the following area: all of Austin, Brazoria, Colorado, Fort Bend, Jackson, Matagorda, and Wharton counties, and that part of Waller County lying south of State Highway 159 from the Austin County line north and east to Hempstead, then east on State Highway 6/290 to the Harris County line.

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 July 2, 2001.

TRD-200103772

Dolores Alvarado Hibbs

Deputy General Counsel

Texas Department of Agriculture

Earliest possible date of adoption: August 12, 2001

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


Chapter 19. QUARANTINES

Subchapter K. EUROPEAN CORN BORER QUARANTINE

4 TAC §19.113

The Texas Department of Agriculture (the department) proposes amendments to §19.113, concerning the European Corn Borer Quarantine. The amendments are proposed to clarify restrictions upon movement of quarantined articles entering the European corn borer-free areas of Texas. The proposal also provides for exceptions to facilitate the movement of quarantined articles originating from an approved establishment in a quarantined state that has a current compliance agreement with the department.

Dr. Awinash Bhatkar, coordinator for plant quality programs, has determined that for the first five-year period the rule is in effect, there will be no fiscal implications for state government as a result of enforcing or administering the amended section. There will be no fiscal implication for local government as a result of enforcing or administering the amended section.

Dr. Bhatkar also has determined that for each year of the first five years the amended section is in effect the public benefit anticipated as a result of enforcing the amended section will be to mitigate the risk of introduction of European corn borer from the infested areas to the free areas Texas. There will be no anticipated costs to microbusinesses, small businesses or persons required to comply with the amended section.

Comments on the proposal may be submitted to Awinash Bhatkar, Coordinator for Plant Quality Programs, 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 proposal in the Texas Register .

The amendments are proposed under the Texas Agriculture Code, § 71.007 which authorizes the department to adopt rules as necessary to protect agricultural and horticultural interests, including rules preventing the entry into a pest- free zone of any plant, plant product, or substance found to be dangerous to the agricultural and horticultural interests of the zone.

The Texas Agriculture Code, Chapter 71 is affected by the proposal.

§19.113.Restrictions.

(a) (No change)

(b) Exemptions. The following quarantined articles are exempt from the restrictions of this subchapter.

(1) (No change.)

(2) grain [ quarantined articles ] comprised of packages less than 10 pounds and free from portion of plants or fragments capable of harboring the European Corn Borer; and

(3) ornamentals [ quarantined articles ] with divisions without stems of the previous year's growth, rooted cuttings, seedling plants or cut flowers shipped during the period between November 30th to May 1st.

(c) Exceptions.

(1) A quarantined article may be shipped into a free area in Texas if it is accompanied by a certificate issued by an authorized representative of the origin state's department of agriculture certifying that the article has met one of the following conditions:

(A) (No change.)

(B) grain has [ the quarantined articles have ] been screened through a 1/2 inch or smaller mesh screen, or otherwise processed prior to loading and is [ are ] free from stalks, cobs, stems or such portions of plants or fragments; or

(C) (No change.)

(D) the quarantined article originated from an approved establishment :

(i) in Texas, which has a current compliance agreement with the department; or

(ii) which has a current compliance agreement with the originating state department of agriculture; or

(E) the greenhouse or the growing area where ornamentals [ quarantined articles ] with divisions without stems of the previous year's growth, rooted cuttings, seedling plants or cut flowers were produced, were inspected and no European Corn Borer was found.

(2) (No change.)

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 28, 2001.

TRD-200103713

Dolores Alvarado Hibbs

Deputy General Counsel

Texas Department of Agriculture

Earliest possible date of adoption: August 12, 2001

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


Subchapter O. WEST INDIAN FRUIT FLY QUARANTINE

The Texas Department of Agriculture (the department) proposes the repeal of §19.151, concerning the quarantined areas for the West Indian fruit fly, and an amendment to §19.154. The repeal of §19.151 is proposed because the West Indian fruit fly quarantine and treatment program successfully reduced infestation levels to the point of eradication of the fly from the designated quarantined area. This determination was made following the completion of three consecutive life cycle periods with no detection of additional flies present in any life stage. The quarantine of the area designated in §19.151 has been lifted by the United States Department of Agriculture. The proposed repeal deletes the quarantined area that was established by the infestation detected by traps during the 2000 growing season. The proposed amendment to §19.154 amends this section to provide that cost of treatment under this subchapter may be paid by growers, rather than making payment by growers mandatory. This amendment is proposed to allow for situations under which the department may be able to assist growers with costs of treatment.

Ed Gage, coordinator for pest management programs, has determined that for the first five year period that the repeal and amendment are in effect, there will be no fiscal impact on state or local government as a result of enforcing and administering the section.

Mr. Gage has also determined that for the first five years the repeal and amendment are in effect, the public benefit as a result of administering or enforcing the repeal and the amendment will be that the commercial citrus markets in Texas will be allowed to resume normal operations without handling and treatment restrictions and the department will be able, where appropriate, to provide some costs of treatment to growers. There are no anticipated costs to microbusinesses, small businesses or individuals required to comply with the repeal.

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 .

4 TAC §19.151

(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 §19.151 is proposed in accordance with the Texas Agriculture Code (the Code), §71.002, which authorizes the department to establish a quarantine if it determines that a dangerous insect pest not widely distributed in the state exists within an area of the state; and the Code, §71.007, which authorizes the department to adopt rules to provide for the destruction of trees or fruits, to provide for the cleaning or treatment of orchards,

The code that is affected by the proposal is the Texas Agriculture Code, Chapter 71.

§19.151.Quarantined Areas.

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 July 2, 2001.

TRD-200103780

Dolores Alvarado Hibbs

Deputy General Counsel

Texas Department of Agriculture

Earliest possible date of adoption: August 12, 2001

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


4 TAC §19.154

The amendment to §19.154 is proposed in accordance with the Texas Agriculture Code (the Code), §71.002, which authorizes the department to establish a quarantine if it determines that a dangerous insect pest not widely distributed in the state exists within an area of the state; and the Code, §71.007, which authorizes the department to adopt rules to provide for the destruction of trees or fruits, to provide for the cleaning or treatment of orchards,

The code that is affected by the proposal is the Texas Agriculture Code, Chapter 71.

§19.154.Establishment of Quarantined Area; Core Area; Treatment of Infestation; and Destruction of Quarantined Articles.

(a) (No Change.)

(b) The owner or orchard manager may [ shall ] bear all treatment expenses.

(c) - (g) (No Change.)

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 July 2, 2001.

TRD-200103781

Dolores Alvarado Hibbs

Deputy General Counsel

Texas Department of Agriculture

Earliest possible date of adoption: August 12, 2001

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


Chapter 26. TEXAS AGRICULTURAL FINANCE AUTHORITY: LINKED DEPOSIT PROGRAM

4 TAC §§26.1, 26.3, 26.9, 26.10

The Board of Directors of the Texas Agricultural Finance Authority (TAFA) of the Texas Department of Agriculture (the department) proposes amendments to §§26.1, 26.3, 26.9 and 26.10, concerning the TAFA Linked Deposit Program. The amendments are proposed in order to make the sections consistent with changes made to the Texas Agriculture Code, Chapters 44 and 58 by the enactment of Senate Bill 716 (SB 716), 77th Legislature (2001).

SB 716 provides authority for TAFA to establish a new category of linked deposit loans for nonagricultural businesses in rural areas of the state, if such a business is providing an economic benefit to a rural city or county. Other amendments are made to update the sections in regards to the definition and listing of customarily grown and alternative crops. The amendments to §26.1, concerning Definitions, at paragraph (12), change the date for the reference used to determine customarily grown crops found in the definition of "Customarily grown"; at paragraph (15), add a new subparagraph (F) to add to the definition of "Eligible borrower" that includes in the definition a person providing nonagricultural goods or services in a rural area; and, add a definition of "Rural area" as new paragraph (21). The amendment to §26.3, concerning Purpose, amends the section to add as a purpose to provide financing for nonagricultural businesses in a rural area. The amendment to §26.9, concerning Use of the Loan Proceeds, amends subsection (a) to add "any nonagricultural business expense" identified in the application to the purposes for which loan proceeds may be used. The amendments to §26.10, concerning Program Limitations, amend paragraph (1) to increase the maximum amount available under the program from $25 million to $30 million, and to provide that $5 million of that amount may be used only to finance the economic development of businesses in rural areas; add a new paragraph (5) which provides that the maximum amount of a loan to finance a loan in a rural area is $250,000; amend newly renumbered paragraph (9) to change the reference to paragraph (5) to paragraph (6); amend newly renumbered paragraph (12) to delete celery and wool from the list of customarily grown crops not eligible for participation in the production financing for alternative crops portion of the program, and add chicken to that list; amend newly renumbered paragraph (13) to add celery, mules and wool to the list of alternative crops not customarily grown that are eligible for participation in the production financing portion of the program; and add new paragraph (17) which provides that any nonagricultural business meeting the criteria for being located in a rural area that creates an economic benefit to the rural area is a project eligible for financing under the program.

Mr. Robert Kennedy, deputy assistant commissioner for agricultural finance, has determined that for the first-five year period the amended sections are in effect, there will be no fiscal implications for state or local government as a result of enforcing or administering the amended sections.

Mr. Kennedy also has determined that for each year of the first five years the amended sections are in effect, the public benefit anticipated as a result of enforcing the amended sections will be the potential to create an economic benefit to rural areas of the state and to generate greater number of approved applicants for the Linked Deposit Program. There will be no effect on microbusinesses or small businesses. There will be no anticipated economic cost to persons who are required to comply with the sections as amended.

Comments on the proposal may be submitted to Mr. 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 this proposal in the Texas Register .

The amendments are proposed under the Texas Agriculture Code (the Code), §44.007, which provides the TAFA board with the authority to adopt rules for the loan portion of the linked deposit program; and the Code, §58.022 which provides the TAFA board with the authority to adopt rules and procedures for administration of the programs of TAFA, including the Linked Deposit Program.

The code affected by the proposal is the Texas Agriculture Code, Chapters 58 and 44.

§26.1.Definitions.

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

(1) - (11) (No change.)

(12) Customarily grown--Crops produced in this state that utilize conventional management systems, and have cash receipts equal to or exceeding $5 million as listed in the 1999 [ 1997 ] Texas Agricultural Cash Receipts by Commodity, compiled by the Texas Agricultural Statistics Service for the period ending December 1999 [ 1997 ], except for experimental varieties of these crops.

(13) - (14) (No change.)

(15) Eligible borrower--A person who is in the business or entering the business of:

(A) processing and marketing agricultural crops in this state;

(B) producing alternative agricultural crops in this state;

(C) producing agricultural crops in this state, the production of which has declined because of natural disasters;

(D) producing agricultural crops in this state using water conservation equipment for agricultural production purposes; [ or ]

(E) financing of water conservation projects ; or [ . ]

(F) providing nonagricultural goods or services in a rural area.

(16) - (20) (No change)

(21) Rural area-An area which is predominately rural in character, meeting the criteria as identified in the policy approved by the Board for the program.

(22) [ (21) ] Staff--The staff of the department designated by the commissioner of agriculture as performing duties for the Authority.

§26.3.Purpose.

The purpose of the program is to encourage private commercial loans for the enhancement of production, processing, and marketing of certain agricultural crops, the creation and enhancement of value-added businesses, providing assistance for disaster relief projects, [ and ] for the financing of water conservation projects or equipment for agricultural production purposes , and for nonagricultural businesses in a rural area . These sections are adopted to provide standards of eligibility and procedures for obtaining financial assistance under the Act.

§26.9.Use of the Loan Proceeds.

(a) Loan proceeds under the program may be used for any agriculture-related operating expense, including the purchase or lease of land or fixed asset acquisition or improvement, or any nonagricultural business expense, as identified in the application. A loan under this program may be applied to existing debt for applicants eligible to participate under this program.

(b) - (c) (No change.)

§26.10.Program Limitations.

In addition to the limitations already set forth in these rules, the following limitations apply.

(1) Not more than $30 [ $25 ] million, of which $10 million may only be used to finance water conservation projects, and of which $5 million may be used only to finance the economic development of businesses in rural areas, may be placed concurrently in linked deposits under the Act.

(2) - (4) (No change.)

(5) The maximum amount of a loan to finance an eligible borrower in a rural area is $250,000.

(6) [ (5) ] The maximum amount of a loan to process and market agricultural crops is $500,000.

(7) [ (6) ] All linked deposits placed under this program shall expire upon expiration of the biennium; however, subject to legislative authorization and approval by the Authority and the comptroller, linked deposits that expired as a result of the expiration of the biennium may be renewed.

(8) [ (7) ] The state shall not be liable for any failure to comply with the terms and conditions of the loan, or any failure to make any payments or any other losses or expenses that occur directly or indirectly from the program.

(9) [ (8) ] An applicant may have more than one application and linked deposit loan with the program provided that the total applications and total linked deposits approved do not exceed the limitations of the program maximums as defined in paragraphs (2)-(6) [ (2)-(5) ] of this section, and that any previous outstanding linked deposit loans with a lender be of a satisfactory status. The total of all linked deposit loans to an applicant cannot exceed a maximum of $500,000.

(10) [ (9) ] A person shall not receive approval of an application if a previous loan under the program is in default.

(11) [ (10) ] An applicant who proposes operations to produce crops that are customarily grown in this state is not eligible for participation in the production financing for alternative crops portion of the program.

(12) [ (11) ] The following customarily grown crops are not eligible for participation in the production financing for alternative crops portion of the program: bell peppers, broilers, cabbage, cantaloupe, carrots, cattle, chicken [ celery ], corn, cotton, cottonseed, cucumbers, eggs, grapefruit, green peppers, certain greenhouse or nursery products, hay, hogs, honeydew melons, lambs, cow's milk, mohair, spring and summer onions, peaches, peanuts, pecans, potatoes, poultry, quarter horses, rice, sheep, soybeans, sorghum grain, spinach, sugarbeets, sugarcane, sunflowers, sweet potatoes, fresh tomatoes, turkeys, watermelons, and wheat [ , and wool ].

(13) [ (12) ] The following alternative crops that are not customarily grown in this state are eligible for participation in the production financing portion of the program: aloe vera, barley, beets other than sugar, blueberries, broccoli, buffalo, canola, cashmere goats, catfish, cauliflower, celery, crambe, crawfish, cut flowers, dairy goats, eggplant, emu, experimental varieties of customarily grown crops, exotic game species for venison, farm chickens, table and wine grapes, greens, herbs, honey, thoroughbred horses, jalapenos, jojoba, kenaf, llamas, lean and natural beef, lettuce, longhorn cattle, mesquite, mules, mushrooms, native plants, oats, oriental vegetables, oranges, ostrich, pinto beans, pistachios, pumpkins, quail, rabbits, redfish, rhea, rye, shrimp, snap beans, squash, strawberries, sweet corn, tilapia, turnips, Christmas trees, wildflowers, wool and any other crops not currently produced in the state. The Authority may, on a case by case basis, approve for program participation crops which are not listed in this paragraph.

(14) [ (13) ] A project eligible for natural disaster relief in this state is a project that resides in an area of the state that has declined because of a natural disaster, and has been declared in a state of disaster by the United States Department of Agriculture or the President of the United States. The term of eligibility for participation in the program is dependent the effect of the natural disaster and the asset being financed.

(15) [ (14) ] The following types of equipment considered as water conservation equipment for agricultural production purposes are eligible for financing in the production financing portion of the program: underground pipe; in-line valves; pipe increasers/reducers; gate valves; fittings and bushings; flow meters and accessories; complete circular watering systems; drip irrigation systems complete with installation; and any other equipment which can be identified and verified as water conservation equipment for use within the state.

(16) [ (15) ] The following types of water conservation projects would be eligible for financing under the program: brush control projects, stock tank renovation or construction; dam renovation or construction; or any other project that can be identified as a water conservation project.

(17) Any nonagricultural business meeting the criteria for being located in a rural area that creates an economic benefit to the rural area.

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 28, 2001.

TRD-200103714

Dolores Alvarado Hibbs

Deputy General Counsel

Texas Department of Agriculture

Earliest possible date of adoption: August 12, 2001

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