TITLE 4.AGRICULTURE

Part 1. TEXAS DEPARTMENT OF AGRICULTURE

Chapter 5. FUEL QUALITY

4 TAC §5.6

The Texas Department of Agriculture (the department) adopts amendments to Chapter 5, Fuel Quality, §5.6, without changes to the proposed text, as published in the June 27, 2003, issue of the Texas Register (28 TexReg 4767). The amendments to §5.6 are adopted to increase the fees collected for the purpose of enforcing and administering the department's motor fuel testing program. The increase in fees will ensure that costs to state government associated with the motor fuel testing program are recovered as directed by the 78th Legislature, Regular Session, 2003. The amendments increase the fee per liquid measuring device used to deliver one gasoline product per nozzle from $2.10 to $2.50 and increases the fee per device used to deliver multiple gasoline products per nozzle from $6.25 to $7.50.

Comments on the proposal were received from the Texas Farm Bureau (TFB) in opposition to the proposed fee increases. The TFB, through its president, Kenneth Dierschke, commented that it supports and appreciates the department's functions and services, but that it feels the increased fees are not appropriate and do not reflect the instructions of the state leadership not to raise taxes. The TFB further stated its belief that fees collected by the department should be used to fund the services provided to the segment of the population paying the fees and not to fund services to the general public, and that agency services should be funded by general revenue.

The department appreciates the TFB's support of the department's functions and services, and is understanding of the TFB's concern over the affect of fee increases on its members. However, the department was directed by the Legislature to increase its fees in order to recover direct and indirect costs to state government to implement state programs. Due to the large budget shortfall, during the course of the appropriations process all agencies were asked to do their part to contribute toward eliminating the budget shortfall, including cutting agency costs and raising agency fees. Moreover, in reviewing revenue generated by agency fees, the department discovered that some agency fees have not been increased for a number of years, while costs to the state as a whole to implement programs has continued to increase.

The department does agree with the TFB that services should be funded by the General Revenue Fund. What may not be clear is that the department's regulatory programs are not funded directly by fees, but by general revenue. All but a small percentage of fee revenue collected by the department and other state agencies goes into the General Revenue Fund and from that fund is then appropriated to agencies to cover their costs. Also, while the TFB is correct that the state leadership, including the Governor and the Legislature, were clear in their instruction not to raise taxes, the TFB is not correct in viewing license and permit fees as taxes. Such fees, by definition, are not taxes and have often been used as vehicles for the generation of state revenue, as was the case in the 78th legislative session.

The amendments to §5.6 are adopted under Article 8614, Vernon's Texas Civil Statutes, §9, which provides the department with authority to adopt rules necessary for the regulation of the sale of motor fuels and to impose a fee for testing, inspection or performance of other services necessary for administration of Article 8614.

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 August 11, 2003.

TRD-200304964

Dolores Alvarado Hibbs

Deputy General Counsel

Texas Department of Agriculture

Effective date: September 1, 2003

Proposal publication date: June 27, 2003

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


Chapter 12. WEIGHTS AND MEASURES

Subchapter B. DEVICES

4 TAC §12.12

The Texas Department of Agriculture (the department) adopts amendments to Chapter 12, Weights and Measures, Subchapter B, Devices, §12.12, without changes to the proposed text, as published in the June 27, 2003, issue of the Texas Register (28 TexReg 4767). The amendments to §12.12 are adopted to increase the fees charged to register weights and measures devices with the department. The increase in fees will allow the department to recover its costs associated with the administration of the department's weights and measures regulatory activities as required by the Texas Agriculture Code, §12.0144 and directed by the 78th Legislature, Regular Session, 2003. The amendments increase by 20% the registration fees for each weights and measures device registered with the department.

Comments on the proposal were received from the Texas Farm Bureau (TFB) in opposition to the proposed fee increases. The TFB, through its president, Kenneth Dierschke, commented that it supports and appreciates the department's functions and services, but that it feels the increased fees are not appropriate and do not reflect the instructions of the state leadership not to raise taxes. The TFB further stated its belief that fees collected by the department should be used to fund the services provided to the segment of the population paying the fees and not to fund services to the general public, and that agency services should be funded by general revenue.

The department appreciates the TFB's support of the department's functions and services, and is understanding of the TFB's concern over the affect of fee increases on its members. However, the department was directed by the Legislature to increase its fees in order to recover direct and indirect costs to state government to implement state programs. Due to the large budget shortfall, during the course of the appropriations process all agencies were asked to do their part to contribute toward eliminating the budget shortfall, including cutting agency costs and raising agency fees. Moreover, in reviewing revenue generated by agency fees, the department discovered that some agency fees had not been increased for a number of years, while costs to the state as a whole to implement programs have continued to increase.

The department does agree with the TFB that services should be funded by the General Revenue Fund. What may not be clear is that the department's regulatory programs are not funded directly by fees, but by general revenue. All but a small percentage of fee revenue collected by the department and other state agencies goes into the General Revenue Fund and from that fund is then appropriated to agencies to cover their costs. Also, while the TFB is correct that the state leadership, including the Governor and the Legislature, were clear in their instruction not to raise taxes, the TFB is not correct in viewing license and permit fees as taxes. Such fees, by definition, are not taxes and have often been used as vehicles for the generation of state revenue, as was the case in the 78th legislative session.

The amendments to §12.12 are adopted under the Texas Agriculture Code (the code), §13.002, which provides the department with authority to adopt rules necessary for the enforcement and administration of the department's Weights and Measures Program; and §13.1151, which provides the department with the authority to set by rule and charge a fee for the registration of a pump, scale, bulk or liquefied petroleum gas metering device required under §13.1011 of the code.

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 August 11, 2003.

TRD-200304965

Dolores Alvarado Hibbs

Deputy General Counsel

Texas Department of Agriculture

Effective date: September 1, 2003

Proposal publication date: June 27, 2003

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


Subchapter D. METROLOGY

4 TAC §12.30

The Texas Department of Agriculture (the department) adopts amendments to Chapter 12, Weights and Measures, Subchapter D. Metrology, §12.30, concerning fees charged for metrology services, without changes to the proposal published in the June 27, 2003, issue of the Texas Register (28 TexReg 4767). The amendments are adopted to increase fees charged for metrology services in order to recover costs of administration of the departments metrology program, in accordance with Texas Agriculture Code, 12.0144, and the directive of the 78th Legislature, Session, 2003.

The amendments increase precision testing fees as follows: from $25 per weight to $40 per weight for weights up to and including 3 kilograms, from $50 per weight to $80 per weight for weights more than 3 kilograms, up to and including 30 kilograms, from $70 per weight to $100 per weight for weights more than 30 kilograms; and tolerance testing fees as follows: from $5 per weight to $10 per weight for weights less than 10 pounds, from $10 per weight to $20 per weight for weights 10 pounds or more but less than 500 pounds, from $20 per weight to $40 per weight for weights 500 pounds or more but less than 2,500 pounds, from $40 per weight to $80 per weight for weights 2,500 pounds or more; and volume measure testing fees as follows: from $20 per measure to $40 per measure for liquid measures 5 gallons or less, from $20 plus $.50 for each gallon over 5 gallons to $40 plus $.50 for each gallon over 5 gallons for liquid measures more than 5 gallons, from $25 to $100 for liquefied petroleum gas (LPG) provers 25 gallons or less, from $100 to $250 for liquefied petroleum gas (LPG) provers over 25 gallons. The amendments also increase fees for testing increments from $25 per increment to $50 per increment.

The department received comments from the Texas Farm Bureau (TFB) opposing the proposed fee increases. The TFB, through its president, Kenneth Dierschke, commented that it supports and appreciates the department's functions and services, but that it feels the increased fees are not appropriate and do not reflect the instructions of the state leadership not to raise taxes. The TFB further stated its belief that fees collected by the department should be used to fund the services provided to the segment of the population paying the fees and not to fund services to the general public, and that agency services should be funded by general revenue.

The department appreciates the TFB's support of the department's functions and services, and is understanding of the TFB's concern over the affect of fee increases on its members. However, the department was directed by the Legislature to increase its fees in order to recover direct and indirect costs to state government to implement state programs. Due to the large budget shortfall, during the course of the appropriations process all agencies were asked to do their part to contribute toward eliminating the budget shortfall, including cutting agency costs and raising agency fees. Moreover, in reviewing revenue generated by agency fees, the department discovered that some agency fees had not been increased for a number of years, while costs to the state as a whole to implement programs have continued to increase.

The department does agree with the TFB that services should be funded by the General Revenue Fund. What may not be clear is that the department's regulatory programs are not funded directly by fees, but by general revenue. All but a small percentage of fee revenue collected by the department and other state agencies goes into the General Revenue Fund and from that fund is then appropriated to agencies to cover their costs. Also, while the TFB is correct that the state leadership, including the Governor and the Legislature, were clear in their instruction not to raise taxes, the TFB is not correct in viewing license and permit fees as taxes. Such fees, by definition, are not taxes and have often been used as vehicles for the generation of state revenue, as was the case in the 78th legislative session.

The amendments to §12.30 are adopted under the Texas Agriculture Code (the Code), §13.002 which provides the department with the authority to adopt rules necessary for the enforcement and administration of the department's Weights and Measures program; and the Code, §13.115(c) and 13.115(d), which provide the department with the authority to set and charge a fee for the testing of a weight or measure by the department's metrology laboratory.

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 August 11, 2003.

TRD-200304966

Dolores Alvarado Hibbs

Deputy General Counsel

Texas Department of Agriculture

Effective date: September 1, 2003

Proposal publication date: June 27, 2003

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


Subchapter E. LICENSED SERVICE COMPANIES

4 TAC §12.43

The Texas Department of Agriculture (the department) adopts amendments to Chapter 12, Weights and Measures, Subchapter E, Licensed Service Companies, §12.43, without changes to the proposed text, as published in the June 27, 2003 issue of the Texas Register (28 TexReg 4765). The amendments to §12.43 are adopted to increase the fees charged to license a weights and measures service company with the department. The increase in fees will allow the department to recover its costs associated with the administration of the department's weights and measures regulatory activities as required by the Texas Agriculture Code, §12.0144 and directed by the 78th Legislature, Regular Session, 2003. The amendment increases the fee for licensed service companies from $75 to $90.

Comments on the proposal were received from the Texas Farm Bureau (TFB) in opposition to the proposed fee increases. The TFB, through its president, Kenneth Dierschke, commented that it supports and appreciates the department's functions and services, but that it feels the increased fees are not appropriate and do not reflect the instructions of the state leadership not to raise taxes. The TFB further stated its belief that fees collected by the department should be used to fund the services provided to the segment of the population paying the fees and not to fund services to the general public, and that agency services should be funded by general revenue.

The department appreciates the TFB's support of the department's functions and services, and is understanding of the TFB's concern over the affect of fee increases on its members. However, the department was directed by the Legislature to increase its fees in order to recover direct and indirect costs to state government to implement state programs. Due to the large budget shortfall, during the course of the appropriations process all agencies were asked to do their part to contribute toward eliminating the budget shortfall, including cutting agency costs and raising agency fees. Moreover, in reviewing revenue generated by agency fees, the department discovered that some agency fees had not been increased for a number of years, while costs to the state as a whole to implement programs have continued to increase.

The department does agree with the TFB that services should be funded by the General Revenue Fund. What may not be clear is that the department's regulatory programs are not funded directly by fees, but by general revenue. All but a small percentage of fee revenue collected by the department and other state agencies goes into the General Revenue Fund and from that fund is then appropriated to agencies to cover their costs. Also, while the TFB is correct that the state leadership, including the Governor and the Legislature, were clear in their instruction not to raise taxes, the TFB is not correct in viewing license and permit fees as taxes. Such fees, by definition, are not taxes and have often been used as vehicles for the generation of state revenue, as was the case in the 78th legislative session.

The amendments to §12.43 are adopted under the Texas Agriculture Code (the code), §13.002, which provides the department with the authority to adopt rules as necessary for the enforcement and administration of the department's Weights and Measures Program; and the code, §13.1012, which authorizes the department to set by rule and collect a registration fee for persons servicing weighing and measuring devices.

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 August 11, 2003.

TRD-200304967

Dolores Alvarado Hibbs

Deputy General Counsel

Texas Department of Agriculture

Effective date: September 1, 2003

Proposal publication date: June 27, 2003

For further information, please call: (512) 463-8170


Subchapter F. LICENSED INSPECTION COMPANIES

4 TAC §12.53

The Texas Department of Agriculture (the department) adopts amendments to Chapter 12, Weights and Measures, Subchapter F, Licensed Inspection Companies, §12.53, without changes to the proposed text, as published in the June 27, 2003 issue to the Texas Register (28 TexReg 4765). The amendments to §12.53 are adopted to increase the fees charged to register a weights and measures inspection company with the department and to increase the maximum amount that licensed inspection companies can charge for LPG meter and ranch scale inspections, as required by the Texas Agriculture Code, §12.0144 and directed by the 78th Legislature, Regular Session, 2003. The amendments increase the fee licensed inspection companies may charge for inspections from $150 to $250, and the registration fee for such companies from $75 to $90.

Comments were received from the Texas Farm Bureau (TFB) in opposition to the proposed fee increases. The TFB, through its president, Kenneth Dierschke, commented that it supports and appreciates the department's functions and services, but that it feels the increased fees are not appropriate and do not reflect the instructions of the state leadership not to raise taxes. The TFB further stated its belief that fees collected by the department should be used to fund the services provided to the segment of the population paying the fees and not to fund services to the general public, and that agency services should be funded by general revenue.

The department appreciates the TFB's support of the department's functions and services, and is understanding of the TFB's concern over the affect of fee increases on its members. However, the department was directed by the Legislature to increase its fees in order to recover direct and indirect costs to state government to implement state programs. Due to the large budget shortfall, during the course of the appropriations process all agencies were asked to do their part to contribute toward eliminating the budget shortfall, including cutting agency costs and raising agency fees. Moreover, in reviewing revenue generated by agency fees, the department discovered that some agency fees had not been increased for a number of years, while costs to the state as a whole to implement programs have continued to increase.

The department does agree with the TFB that services should be funded by the General Revenue Fund. What may not be clear is that the department's regulatory programs are not funded directly by fees, but by general revenue. All but a small percentage of fee revenue collected by the department and other state agencies goes into the General Revenue Fund and from that fund is then appropriated to agencies to cover their costs. Also, while the TFB is correct that the state leadership, including the Governor and the Legislature, were clear in their instruction not to raise taxes, the TFB is not correct in viewing license and permit fees as taxes. Such fees, by definition, are not taxes and have often been used as vehicles for the generation of state revenue, as was the case in the 78th legislative session.

The amendments to §12.53 are adopted under the Texas Agriculture Code (the code), §13.002, which provides the department with the authority to adopt rules as necessary for the enforcement and administration of the department's Weights and Measures Program; and the code §13.403, which authorizes the department to establish by rule an annual license fee for licensed inspectors of weighing and measuring devices.

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 August 11, 2003.

TRD-200304968

Dolores Alvarado Hibbs

Deputy General Counsel

Texas Department of Agriculture

Effective date: September 1, 2003

Proposal publication date: June 27, 2003

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


Subchapter G. REGISTERED TECHNICIANS

12 TAC §12.60

The Texas Department of Agriculture (the department) adopts amendments to Chapter 12, Weights and Measures, Subchapter G, Registered Technicians, §12.60, without changes to the proposed text, as published in the June 27, 2003 issue of the Texas Register (28 TexReg 4767). The amendments to §12.60 are adopted to increase the examination fee charged for each exam administered. The increase in fees will allow the department to recover its costs associated with the administration of the department's weights and measures regulatory activities as required by the Texas Agriculture Code, §12.0144 and directed by the 78th Legislature, Regular Session, 2003. The amendment increases the examination fee for registered technicians from $50 to $60.

Comments were received from the Texas Farm Bureau (TFB) in opposition to the proposed fee increases. The TFB, through its president, Kenneth Dierschke, commented that it supports and appreciates the department's functions and services, but that it feels the increased fees are not appropriate and do not reflect the instructions of the state leadership not to raise taxes. The TFB further stated its belief that fees collected by the department should be used to fund the services provided to the segment of the population paying the fees and not to fund services to the general public, and that agency services should be funded by general revenue.

The department appreciates the TFB's support of the department's functions and services, and is understanding of the TFB's concern over the affect of fee increases on its members. However, the department was directed by the Legislature to increase its fees in order to recover direct and indirect costs to state government to implement state programs. Due to the large budget shortfall, during the course of the appropriations process all agencies were asked to do their part to contribute toward eliminating the budget shortfall, including cutting agency costs and raising agency fees. Moreover, in reviewing revenue generated by agency fees, the department discovered that some agency fees had not been increased for a number of years, while costs to the state as a whole to implement programs have continued to increase.

The department does agree with the TFB that services should be funded by the General Revenue Fund. What may not be clear is that the department's regulatory programs are not funded directly by fees, but by general revenue. All but a small percentage of fee revenue collected by the department and other state agencies goes into the General Revenue Fund and from that fund is then appropriated to agencies to cover their costs. Also, while the TFB is correct that the state leadership, including the Governor and the Legislature, were clear in their instruction not to raise taxes, the TFB is not correct in viewing license and permit fees as taxes. Such fees, by definition, are not taxes and have often been used as vehicles for the generation of state revenue, as was the case in the 78th legislative session.

The amendments to §12.60 are adopted under the Texas Agriculture Code (the code), §13.002, which provides the department with the authority to adopt rules as necessary for the for enforcement and administration of the department's Weights and Measures Program; and the code, §13.1012, which authorizes the department to set by rule and collect a registration fee for persons servicing weights and measures devices.

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 August 11, 2003.

TRD-200304969

Dolores Alvarado Hibbs

Deputy General Counsel

Texas Department of Agriculture

Effective date: September 1, 2003

Proposal publication date: June 27, 2003

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


Subchapter H. PUBLIC WEIGHERS

4 TAC §12.73

The Texas Department of Agriculture (the department) adopts amendments to Chapter 12, Weights and Measures, Subchapter H, Public Weighers, §12.73, without changes to the proposed text, as published in the June 27, 2003 issue of the Texas Register (28 TexReg 4766). The amendments to §12.73 are adopted to increase the fees charged to license a public weigher with the department. The increase in fees will allow the department to recover its costs associated with the administration of the department's weights and measures regulatory activities as required by the Texas Agriculture Code, §12.0144 and directed by the 78th Legislature, Regular Session, 2003. The amendments increases the fee for a county or deputy public weigher from $100 to $120 and increase the fee for a state public weigher from $400 to $480.

Comments were received from the Texas Farm Bureau (TFB) in opposition to the proposed fee increases. The department received comments from the Texas Farm Bureau (TFB) opposing the proposed fee increases. The TFB, through its president, Kenneth Dierschke, commented that it supports and appreciates the department's functions and services, but that it feels the increased fees are not appropriate and do not reflect the instructions of the state leadership not to raise taxes. The TFB further stated its belief that fees collected by the department should be used to fund the services provided to the segment of the population paying the fees and not to fund services to the general public, and that agency services should be funded by general revenue.

The department appreciates the TFB's support of the department's functions and services, and is understanding of the TFB's concern over the affect of fee increases on its members. However, the department was directed by the Legislature to increase its fees in order to recover direct and indirect costs to state government to implement state programs. Due to the large budget shortfall, during the course of the appropriations process all agencies were asked to do their part to contribute toward eliminating the budget shortfall, including cutting agency costs and raising agency fees. Moreover, in reviewing revenue generated by agency fees, the department discovered that some agency fees had not been increased for a number of years, while costs to the state as a whole to implement programs have continued to increase.

The department does agree with the TFB that services should be funded by the General Revenue Fund. What may not be clear is that the department's regulatory programs are not funded directly by fees, but by general revenue. All but a small percentage of fee revenue collected by the department and other state agencies goes into the General Revenue Fund and from that fund is then appropriated to agencies to cover their costs. Also, while the TFB is correct that the state leadership, including the Governor and the Legislature, were clear in their instruction not to raise taxes, the TFB is not correct in viewing license and permit fees as taxes. Such fees, by definition, are not taxes and have often been used as vehicles for the generation of state revenue, as was the case in the 78th legislative session.

The amendments to §12.73 are adopted under the Texas Agriculture Code (the code), §13.002, which provides the department with the authority to adopt rules as necessary for the enforcement and administration of the department's Weights and Measures Program; and the code, §13.255, which authorizes the department to set by rule and collect a nonrefundable fee for issuing a certificate of authority for a County or Deputy public weigher.

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 August 11, 2003.

TRD-200304970

Dolores Alvarado Hibbs

Deputy General Counsel

Texas Department of Agriculture

Effective date: September 1, 2003

Proposal publication date: June 27, 2003

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


Chapter 14. PERISHABLE COMMODITIES HANDLING AND MARKETING PROGRAM

Subchapter A. GENERAL PROVISIONS

4 TAC §14.3

The Texas Department of Agriculture (the department) adopts amendments to Chapter 14, §14.3, concerning fees charged to licensed businesses who handle Texas grown perishable commodities for resale, without changes to the proposed text as published in the July 4, 2003, issue of the Texas Register (28 TexReg 5014). The amendments to §14.3 are adopted to increase the fees charged to licensed companies handling Texas grown perishable commodities. The increase in fees will allow the department to recover costs associated with the administration of the department's handling and marketing of perishable commodities regulatory activities as required by the Texas Agriculture Code, §12.0144, and directed by the 78th Legislature, Regular Session, 2003. The amendments increase the fee for each buying agent or transporting agent identification card from $1.00 to $10, increase the fee for each cash dealer from $25 to $30, and increase the fee for each general license registered with the department from $75 to $90.

No public comments were received regarding the proposal.

The amendments to §14.3 are adopted under the Texas Agriculture Code, §101.006, which provides the Texas Department of Agriculture with the authority to set by rule and charge a fee for a cash dealer registration, a general license and a buying and/or transporting agent identification card.

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 August 8, 2003.

TRD-200304924

Dolores Alvarado Hibbs

Deputy General Counsel

Texas Department of Agriculture

Effective date: September 1, 2003

Proposal publication date: July 4, 2003

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


Chapter 15. EGG LAW

4 TAC §15.4

The Texas Department of Agriculture (the department) adopts amendments to Chapter 15, Egg Law, §15.4, without changes to the proposed text, as published in the June 27, 2003, issue of the Texas Register (28 TexReg 4767). The amendments to §15.4 are adopted to increase the license fees for an egg dealer/wholesaler, processor, or broker. The increase in fees will allow the department to recover its costs associated with the administration of the department's egg law regulatory activities as required by the Texas Agriculture Code, §12.0144 and directed by the 78th Legislature, Regular Session, 2003. The amendments increase fees for dealer/wholesaler class 1, 2, 3, 4 and processor class 1 and 2 licenses by 33% and increase dealer/wholesaler classes 5-12, processor class 3 and 4 and broker.

Comments were received from the Texas Farm Bureau (TFB) in opposition to the proposed fee increases. The department received comments from the Texas Farm Bureau (TFB) opposing the proposed fee increases. The TFB, through its president, Kenneth Dierschke, commented that it supports and appreciates the department's functions and services, but that it feels the increased fees are not appropriate and do not reflect the instructions of the state leadership not to raise taxes. The TFB further stated its belief that fees collected by the department should be used to fund the services provided to the segment of the population paying the fees and not to fund services to the general public, and that agency services should be funded by general revenue.

The department appreciates the TFB's support of the department's functions and services, and is understanding of the TFB's concern over the affect of fee increases on its members. However, the department was directed by the Legislature to increase its fees in order to recover direct and indirect costs to state government to implement state programs. Due to the large budget shortfall, during the course of the appropriations process all agencies were asked to do their part to contribute toward eliminating the budget shortfall, including cutting agency costs and raising agency fees. Moreover, in reviewing revenue generated by agency fees, the department discovered that some agency fees had not been increased for a number of years, including the fees for egg licenses, while costs to the state as a whole to implement programs have continued to increase.

The department does agree with the TFB that services should be funded by the General Revenue Fund. What may not be clear is that the department's regulatory programs are not funded directly by fees, but by general revenue. All but a small percentage of fee revenue collected by the department and other state agencies goes into the General Revenue Fund and from that fund is then appropriated to agencies to cover their costs. Also, while the TFB is correct that the state leadership, including the Governor and the Legislature, were clear in their instruction not to raise taxes, the TFB is not correct in viewing license and permit fees as taxes. Such fees, by definition, are not taxes and have often been used as vehicles for the generation of state revenue, as was the case in the 78th legislative session.

The amendments to §15.4 are adopted under the Texas Agriculture Code (the code), §132.003, which provides the department with the authority to adopt rules as necessary for the for administration of the code, chapter 132; and the code §132.026 which authorizes the department to set by rule a fee for an egg dealer-wholesaler license, and the code, §132.028, which authorizes the department to set by rule and charge a fee for an egg brokers license.

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 August 8, 2003.

TRD-200304917

Dolores Alvarado Hibbs

Deputy General Counsel

Texas Department of Agriculture

Effective date: September 1, 2003

Proposal publication date: June 27, 2003

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


Chapter 16. AQUACULTURE

4 TAC §16.3

The Texas Department of Agriculture (the department) adopts amendments to Chapter 16, Aquaculture, §16.3 without changes to the proposed text, as published in the June 27, 2003, issue of the Texas Register (28 TexReg 4767). The amendments to §16.3 are adopted to increase the fees charged to license an aquaculture facility or a fish farm vehicle. The increase in fees will allow the department to recover its costs associated with the administration of the department's aquaculture regulatory activities as required by the Texas Agriculture Code, §12.0144 and directed by the 78th Legislature, Regular Session, 2003. The amendment increases the aquaculture license fee from $100 to $120.

Comments were received from the Texas Farm Bureau (TFB) in opposition to the proposed fee increases. The TFB, through its president, Kenneth Dierschke, commented that it supports and appreciates the department's functions and services, but that it feels the increased fees are not appropriate and do not reflect the instructions of the state leadership not to raise taxes. The TFB further stated its belief that fees collected by the department should be used to fund the services provided to the segment of the population paying the fees and not to fund services to the general public, and that agency services should be funded by general revenue.

The department appreciates the TFB's support of the department's functions and services, and is understanding of the TFB's concern over the affect of fee increases on its members. However, the department was directed by the Legislature to increase its fees in order to recover direct and indirect costs to state government to implement state programs. Due to the large budget shortfall, during the course of the appropriations process all agencies were asked to do their part to contribute toward eliminating the budget shortfall, including cutting agency costs and raising agency fees. Moreover, in reviewing revenue generated by agency fees, the department discovered that some agency fees have not been increased for a number of years, while costs to the state as a whole to implement programs has continued to increase.

The department does agree with the TFB that services should be funded by the General Revenue Fund. What may not be clear is that the department's regulatory programs are not funded directly by fees, but by general revenue. All but a small percentage of fee revenue collected by the department and other state agencies goes into the General Revenue Fund and from that fund is then appropriated to agencies to cover their costs. Also, while the TFB is correct that the state leadership, including the Governor and the Legislature, were clear in their instruction not to raise taxes, the TFB is not correct in viewing license and permit fees as taxes. Such fees, by definition, are not taxes and have often been used as vehicles for the generation of state revenue, as was the case in the 78th legislative session.

The amendments are adopted under the Texas Agriculture Code (the code), §134.005, which provides the department with the authority to adopt rules as necessary for carrying out the department's duties under the code, chapter 134; and the code §134.014, which authorizes the department to set and charge a fee for an aquaculture license or a fish farm vehicle license.

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 August 8, 2003.

TRD-200304919

Dolores Alvarado Hibbs

Deputy General Counsel

Texas Department of Agriculture

Effective date: September 1, 2003

Proposal publication date: June 27, 2003

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


Chapter 17. MARKETING AND PROMOTION DIVISION

Subchapter B. LIVESTOCK EXPORT FACILITIES

4 TAC §17.31

The Texas Department of Agriculture (the department) adopts amendments to §17.31, concerning operation of livestock export facilities, without changes to the proposal published in the July 4, 2003, issue of the Texas Register (28 TexReg 5014). The amendments are adopted to increase the current livestock export facility fees in order to allow the department to recover more of its costs of implementing its livestock export pen program, as directed by the 78th Legislature, 2003. The increase in fees will allow the department to maintain and make necessary repairs to these facilities. In addition, the increase in fees will allow cost recovery for fee expenses to state government from users. Except as noted, the amendments to §17.31 increase by 100% the fees paid for necessary water, pen space, and necessary labor for feeding of livestock and assisting in conducting of inspections requested at the livestock export pens operated by the department. The fees for slaughter sheep and goats has been increased from $.25 to $1.00 per head. The fees for horses at the Houston livestock facility have been increased from $10 to $30 per head, and the fee for exotics at the Houston facility is increased from $2.50 to $10 per head. The fees for poultry, other than baby chicks or fertile eggs, have not been increased.

In addition to the fee increases noted above, Subsection (k) of §17.31 is amended to formalize the department's current policy of not accepting cash payments for services. New subsection 17.31(l) is added to establish a fee for animals other than sheep, goats, horses, mules, cattle, hogs, poultry, or exotic livestock or fowl. In past fees for these animals were established on a case-by-case basis. The amendment establishes a consistent fee for these animals for pen facilities on the Texas-Mexico border.

No comments were received on the proposal.

The amendments to §17.31 are adopted under the Texas Agriculture Code (the Code), §146.021, which provides the department with the authority to establish and collect reasonable fees for yardage, maintenance, feed, medical care, and other necessary expenses incurred by the department in the course of processing those animals; and the Code, §12.016, which provides the department with the authority to adopt rules as necessary to administer its duties under the Code.

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 August 8, 2003.

TRD-200304918

Dolores Alvarado Hibbs

Deputy General Counsel

Texas Department of Agriculture

Effective date: September 1, 2003

Proposal publication date: July 4, 2003

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


Chapter 19. QUARANTINES

Subchapter A. GENERAL QUARANTINE PROVISIONS

4 TAC §19.3

The Texas Department of Agriculture (the department) adopts amendments to §19.3, concerning the inspection fee for the issuance of a phytosanitary certificate, without changes to the proposal published in the June 20, 2003, issue of Texas Register (28 TexReg 4619). The amendments to §19.3 are adopted to increase the fee for a phytosanitary growing season inspection and state phytosanitary inspection and certification, as directed by the 78th Legislature, Regular Session, 2003, and to establish an inspection fee for issuance of a federal phytosanitary certificate. A phytosanitary inspection certificate is issued if an article is inspected and is found free of pest infestation. The department issues three types of phytosanitary certificates; a phytosanitary growing season inspection certificate, a state phytosanitary certificate, and a federal phytosanitary certificate. A phytosanitary growing season inspection certificate is issued for the inspection of field crops for export. A state phytosanitary certificate is issued for the export of agricultural commodities to other states, while a federal phytosanitary certificate is issued for the export of agricultural commodities to other countries. A federal phytosanitary certificate is issued under the authority of the U.S. Plant Protection Act of 1999 through a cooperative agreement with United States Department of Agriculture. The fee for an inspection to issue a phytosanitary growing season inspection certificate or a state phytosanitary certificate has not increased since 1996. The amendments increase the fee for a phytosanitary growing season inspection and state phytosanitary inspection and certification from $25 to $30, and establish an inspection fee of $50 for issuance of a federal phytosanitary certificate.

The department received comments from the Texas Farm Bureau (TFB) opposing the proposed fee increases. The TFB, through its president, Kenneth Dierschke, commented that it supports and appreciates the department's functions and services, but that it feels the increased fees are not appropriate and do not reflect the instructions of the state leadership not to raise taxes. The TFB further stated its belief that fees collected by the department should be used to fund the services provided to the segment of the population paying the fees and not to fund services to the general public, and that agency services should be funded by general revenue.

The department appreciates the TFB's support of the department's functions and services, and is understanding of the TFB's concern over the affect of fee increases on its members. However, the department was directed by the Legislature to increase its fees in order to recover direct and indirect costs to state government to implement state programs. Due to the large budget shortfall, during the course of the appropriations process all agencies were asked to do their part to contribute toward eliminating the budget shortfall, including cutting agency costs and raising agency fees. Moreover, in reviewing revenue generated by agency fees, the department discovered that some agency fees, such as fees assessed by the department for state phytosanitary inspection and certification, had not been increased for a number of years, while costs to the state as a whole to implement programs have continued to increase.

The department does agree with the TFB that services should be funded by the General Revenue Fund. What may not be clear is that the department's regulatory programs are not funded directly by fees, but by general revenue. All but a small percentage of fee revenue collected by the department and other state agencies goes into the General Revenue Fund and from that fund is then appropriated to agencies to cover their costs. Also, while the TFB is correct that the state leadership, including the Governor and the Legislature, were clear in their instruction not to raise taxes, the TFB is not correct in viewing license and permit fees as taxes. Such fees, by definition, are not taxes and have often been used as vehicles for the generation of state revenue, as was the case in the 78th legislative session.

The amendments to §19.3 are adopted under the Texas Agriculture Code, §12.021, which authorizes the department to collect an inspection fee for a phytosanitary inspection required by other states and foreign countries for agricultural products, processed products, or equipment exported from this state.

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 August 8, 2003.

TRD-200304922

Dolores Alvarado Hibbs

Deputy General Counsel

Texas Department of Agriculture

Effective date: September 1, 2003

Proposal publication date: June 20, 2003

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


Chapter 22. NURSERY PRODUCTS AND FLORAL ITEMS

4 TAC §22.3

The Texas Department of Agriculture (the department) adopts amendments to §22.3, concerning nursery/floral registration classification and renewal fees, without changes to the proposal published in the June 20, 2003, issue of Texas Register (28 TexReg 4620). The amendments to §22.3 are adopted to increase the registration and renewal fees charged for the Nursery/Floral Registration Classes 1, 2, 3, 4 and M, as required by the Texas Agriculture Code, §12.0145 and directed by the 78th Legislature, Regular Session, 2003. There have been no fee changes to registration classes 1-4 since 1976. Class M was added as a registration class in 1996, with a registration fee of $150, to facilitate the nursery and floral operations at mobile locations, and that fee has not changed since 1996. The amendments increase fees for nursery/floral registration and renewal to $75 for Class 1, $110 for Class 2, $145 for Class 3, $180 for Class 4 and $180 for Class M.

The department received comments from the Texas Farm Bureau (TFB) opposing the proposed fee increases. The TFB, through its president, Kenneth Dierschke, commented that it supports and appreciates the department's functions and services, but that it feels the increased fees are not appropriate and do not reflect the instructions of the state leadership not to raise taxes. The TFB further stated its belief that fees collected by the department should be used to fund the services provided to the segment of the population paying the fees and not to fund services to the general public, and that agency services should be funded by general revenue.

The department appreciates the TFB's support of the department's functions and services, and is understanding of the TFB's concern over the affect of fee increases on its members. However, the department was directed by the Legislature to increase its fees in order to recover direct and indirect costs to state government to implement state programs. Due to the large budget shortfall, during the course of the appropriations process all agencies were asked to do their part to contribute toward eliminating the budget shortfall, including cutting agency costs and raising agency fees. Moreover, in reviewing revenue generated by agency fees, the department discovered that some agency fees, such as fees assessed by the department for nursery and floral facility registration, had not been increased for a number of years, while costs to the state as a whole to implement programs have continued to increase.

The department does agree with the TFB that services should be funded by the General Revenue Fund. What may not be clear is that the department's regulatory programs are not funded directly by fees, but by general revenue. All but a small percentage of fee revenue collected by the department and other state agencies goes into the General Revenue Fund and from that fund is then appropriated to agencies to cover their costs. Also, while the TFB is correct that the state leadership, including the Governor and the Legislature, were clear in their instruction not to raise taxes, the TFB is not correct in viewing license and permit fees as taxes. Such fees, by definition, are not taxes and have often been used as vehicles for the generation of state revenue, as was the case in the 78th legislative session.

The amendments to §22.3 are adopted under the Texas Agriculture Code, §71.043, which provides the department with the authority to set and collect an annual registration fee for registration of nursery or floral business.

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 August 8, 2003.

TRD-200304923

Dolores Alvarado Hibbs

Deputy General Counsel

Texas Department of Agriculture

Effective date: September 1, 2003

Proposal publication date: June 20, 2003

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