TITLE 4.AGRICULTURE

Part 1. TEXAS DEPARTMENT OF AGRICULTURE

Chapter 1. WEIGHTS AND MEASURES

The Texas Department of Agriculture (the department) adopts amendments to §§12.1, 12.11, 12.12, 12.40, 12.42, 12.50 concerning Weights and Measures without changes to the proposed text as published in the January 21, 2000, issue of the Texas Register (25 TexReg 337). The sections are adopted without changes and will not be republished. The amendments are adopted generally to clarify definitions, registration requirements, provisions regarding expiration and issuance of licenses. The increase in fees at §12.12 is adopted to allow the department to recover its full costs of testing, in accordance with the Texas Agriculture Code, §12.0144.

The amendment to §12.1 clarifies the definition of Anniversary Date, adds the definition for Operator of a Device, clarifies the definition of County, Deputy and State Public Weigher, and adds to the definition of Service Report. The amendment to §12.11 clarifies the language concerning annual registration, initial and renewal registration procedures, and display of certificate of registration; to state the department's responsibility if renewal notices are not received by the operator; and prohibits the transfer of a device registration. Also, the numbering within the section has changed due to the additions. The amendments to §12.12 clarify the distinction between a liquid measuring device and a bulk meter, provide a means to classify multi-product dispensers and specify the increase in device registration fees. The amendments to §12.40 clarify the language concerning the expiration of a Licensed Service Company's license and modify the classes of licenses. The amendments to §12.42 change the address of the destination for the service report, clarify the conditions for which a service report is required, and add time requirements for submission and the destination for out-of-order tags. Also, the numbering within the section has changed due to the additions. The amendment to §12.50 modifies the classes of licenses.

A comment was received from the Texas Petroleum Marketers and Convenience Store Association (TPCA) regarding the amendments to §12.12, specifically concerning the device registration fees. The TPCA expressed concerns regarding the cost component of the fuel pump calibration program which necessitated a fee increase. The department is under statutory mandate to recover costs associated with the administration of the weights and measures program and although fees had not been raised since 1991, program responsibilities have increased while FTEs and appropriations have diminished year after year. In past years, the department has been charging the same rate for all fuel pumps, regardless of the additional testing required for multiple blend devices, resulting in cost recovery of only 73% of actual direct and indirect costs. The department believes that a revision of the fee schedule to provide an equitable fee structure to all fuel retailers while accommodating the influx of multi-product dispensers in the market place is necessary, and has adopted the proposed fees in §12.12 without changes. The department has determined that the new fees should not be collected immediately, and, in order to allow registrants time to adjust to the new fees, the fees will not be imposed until the next renewal period, for registrations expiring on July 31, 2000, and thereafter.

Subchapter A. GENERAL PROVISIONS

4 TAC §12.1

The amendment to §12.1 is adopted under the Texas Agriculture Code (the Code), §13.002, which provides the Texas Department of Agriculture with the authority to enforce the provisions of the Texas Agriculture Code, Chapter 13, concerning weights and measures; and the Code §12.016, which provides the department with the authority to adopt rules necessary for administration 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 March 22, 2000.

TRD-200002096

Dolores Alvarado Hibbs

Deputy General Counsel

Texas Department of Agriculture

Effective date: April 11, 2000

Proposal publication date: January 21, 2000

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


Subchapter B. DEVICES

4 TAC §12.11, §12.12

The amendments to §12.11 and §12.12 are adopted under the Texas Agriculture Code (the Code), §13.002, which provides the Texas Department of Agriculture (the department) with the authority to enforce the provisions of the Code, Chapter 13, concerning weights and measures; the Code, §13.1011, which provides the department with the authority to adopt rules registration under Chapter 13; §13.1151, which provides the department with the authority to set and charge a registration fee for registration of a pump, scale or bulk or liquefied petroleum gas metering device registered under the Code, §13.1011; and the Code, §12.016, which provides the department with the authority to adopt rules necessary for administration 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 March 22, 2000.

TRD-200002097

Dolores Alvarado Hibbs

Deputy General Counsel

Texas Department of Agriculture

Effective date: April 11, 2000

Proposal publication date: January 21, 2000

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


Subchapter E. LICENSED SERVICE COMPANIES

4 TAC §12.40, §12.42

The amendments to §12.40 and §12.42 are adopted under the Texas Agriculture Code (the Code), §13.002, which provides the Texas Department of Agriculture (the department) with the authority to enforce the provisions of the Texas Agriculture Code, Chapter 13, concerning weights and measures; the Code, §13.1012, which provides the department with the authority to register persons to conduct installation or service activities and to adopt rules setting out requirements for registrants; and the Code §12.016, which provides the department with the authority to adopt rules necessary for administration 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 March 22, 2000.

TRD-200002098

Dolores Alvarado Hibbs

Deputy General Counsel

Texas Department of Agriculture

Effective date: April 11, 2000

Proposal publication date: January 21, 2000

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


Subchapter F. LICENSED INSPECTION COMPANIES

4 TAC §12.50

The amendment to §12.50 is adopted under the Texas Agriculture Code (the Code), §13.002, which provides the Texas Department of Agriculture (the department) with the authority to enforce the provisions of the Texas Agriculture Code, Chapter 13, concerning weights and measures; the Code §13.302 , which provides the department with the authority to license persons to inspect or test liquefied petroleum gas meters and adopt rules for inspecting, testing and keeping records of liquefied petroleum gas meters; and the Code §12.016, which provides the department with the authority to adopt rules necessary for administration 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 March 22, 2000.

TRD-200002099

Dolores Alvarado Hibbs

Deputy General Counsel

Texas Department of Agriculture

Effective date: April 11, 2000

Proposal publication date: January 21, 2000

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


Chapter 3. BOLL WEEVIL ERADICATION PROGRAM

Subchapter J. ORGANIC COTTON RULES

4 TAC §§3.600 - 3.606

The Texas Department of Agriculture (the department) adopts new Chapter 3, Subchapter J, §§3.600 - 3.606 concerning organic cotton regulations, with changes to the proposal published in the February 11, 2000, issue of the Texas Register (25 TexReg 993). New §§3.600 - 3.606 are adopted with changes. The department has withdrawn proposed new §§3.607 - 3.609, published in the February 11, 2000, issue of the Texas Register , and has simultaneously filed new §§3.607 - 3.609 in a separate submission in the "Proposed section" of this issue of the Texas Register .

Because of the complexity of issues involved and the large number of comments received from the variety of persons affected by the new sections, the department feels that some background information on the boll weevil eradication program is warranted in order to fully explain the evolution of the program to this point and why the adoption of organic cotton rules is necessary at this time. Texas is the largest cotton producing state in the nation. In 1999, Texas produced 30% of all US bales of cotton, over 5 million bales, with over 6 million acres in cotton production. Texas is also the largest producer of organic cotton in the nation, with 70% of the United States' organic cotton acreage grown in Texas on about 10,089 acres. Texas organic cotton is recognized worldwide as a quality product primarily due to Texas' strict organic certification program requirements. The organic cotton market has experienced much growth in recent years with Texas in the forefront as a major provider of cotton to a growing organic product industry.

The boll weevil and pink bollworm have long been considered a menace to the cotton industry, leading to the declaration of both as public nuisances by the Texas legislature. After years of discussion of growers and others in the cotton industry of establishing in law and implementing a state-wide, comprehensive boll weevil eradication program and after the veto of such legislation in 1991, the boll weevil eradication program was established in law in 1993. The law was amended in 1993 and 1995, and again in 1997 as a result of a successful challenge to the constitutionally of the eradication program. Both the original and the current law include language specifically directed at production of organic cotton. The 1993 law required that the board adopt rules that protected the eligibility of organic growers to be certified by the Commissioner; that such rules ensure that certification continue to meet national standards in order for organic cotton to maintain international marketability; and that such rules maintain the effectiveness of the boll weevil eradication program. That section of the law was amended in 1995 to include a provision allowing indemnification of organic growers for reasonable losses that result from a prohibition of production of organic cotton, or from any requirement of destruction of organic cotton. The new language also provided that the board could require mitigation of losses with the production of an alternative crop, that the board cannot treat or require treatment of organic cotton fields with chemicals not approved for use on certified organic cotton, and that plow-up could be required as an alternative to chemical treatment. Another significant change made in 1995 was that rules and procedures developed relating to organic cotton growers were to, in all events, maintain the effectiveness of the eradication program. The last change to this section, made in 1997, gave rulemaking authority to the department, rather than the foundation board.

The purpose of the boll weevil and pink bollworm eradication program, as stated by the legislature, is to eradicate the boll weevil and the pink bollworm. The law provides a mechanism by which cotton growers can establish boll weevil eradication programs on a zone basis to meet the needs of their respective areas and work through a single entity to manage a state-wide eradication and suppression program. The Texas Boll Weevil Eradication Foundation, Inc., is a nonprofit entity authorized by law to carry out boll weevil eradication programs in Texas. Texas is one of 17 cotton-growing states in which eradication programs are being or have been conducted. Texas, however, is the only state conducting an eradication program where organic cotton production is significant. The Texas boll weevil eradication program law is unique in that it provides for protection of certified organic production and for the use of integrated pest management techniques in implementing the eradication program. The foundation is headed by an 18-member Board of Directors, made up of elected representatives from established zones and others appointed by the Commissioner of Agriculture. The Commissioner, through department staff has oversight authority over the operations of the foundation, including approval of program budgets and expenditures. The Commissioner also has authority to establish nonstatutory zones by rule and to conduct referenda to establish a program and assessment within a zone. The department is also the regulatory agency responsible for enforcement of the law and rules relating to the eradication program, and has rulemaking authority to administer the boll weevil law.

The eradication program is a grower-driven program. In order for a program to be established in a zone, the growers in the zone must, by referendum, approve the establishment of a program and a maximum assessment to fund the program. As part of the process to establish a zone and zone program, grower representatives, with the assistance of the foundation technical staff, develop comprehensive zone budgets. These budgets serve as a basis for determining the amount of assessment to be paid by growers to fund an eradication program in their zone. It has been the department's experience that the assessment rate is generally the most controversial part of the process of establishing a zone program. Generally, growers can agree that a program is needed, but may have concerns on the ability to pay an assessment. Growers play an important part in making decisions about the program in their zone and grower steering committees work closely with the department and the foundation towards eradication.

Prior to 1998, there were three established eradication zones with active eradication programs. In calendar year 1999 more zones held referenda, voting in programs and assessments to fund their programs, bringing the total to 8 active zones. Eradication activities have begun in all zones in which the program and assessments have been approved. The addition of more zones has also increased the amount of acreage now included in the statewide eradication effort from 1.5 million to over 3.5 million acres. With the increase in areas covered and cotton acreage in active zones, also comes an increase in the amount of organic cotton acreage being produced in eradication zones. In the three active zones, prior to 1999, organic production approximated 450 acres. With the activation of new zones, organic acreage within active eradication zones has increased to over 7,500 acres.

The program utilized by the foundation for boll weevil eradication is a precise pest management program based on years of thorough research and, under the direction of the Commissioner and the department, is carried out in an economically and environmentally sound manner. The program generally involves four years of labor intensive activities followed by a minimal maintenance program to prevent re- infestation. Eradication activities include mapping and trapping of all cotton fields in a zone, accompanied by cultural, mechanical and chemical controls. Each zone program varies by region, depending on climate and agronomic practices. The ultimate goal of each zone program is for the zone to become weevil-free, allowing cotton growers to become more competitive in the market by lowering production costs, particularly chemical costs, and increasing yields. For example, in the Southern Rolling Plains zone, currently in its 5th year of the program and nearing the point of declaring eradication, boll weevil trap counts have decreased by 99%, and pesticide use has been reduced by 96.1%, benefiting the environment.

The cornerstone of the eradication program is to have a comprehensive zone-wide control effort, which is monitored closely by trapping and using appropriate control methods. As noted, in the early years of the eradication program, activities are intense, including the chemical treatments for control of weevils. Although mechanical and cultural controls are utilized as much as possible during this phase of the program, the primary method of control is through the application of malathion during early and late season. Where no effective control treatments occur, cotton acreage harbors boll weevil populations capable of infesting or reinfesting neighboring cotton fields.

Alternative methods of control, including the boll weevil bait stick, the Catalaccus grandis parasite (wasp), and the use of diatamateous earth have been tried in the past on a small-scale with limited success. Both Texas state law and the department's organic certification program rules prohibit the spraying of certified organic or transitional organic cotton with malathion. The distribution of organic cotton production within active eradication zones makes the foundation's task in controlling boll weevils a more difficult challenge because most of the organic cotton acreage in production is surrounded by conventional cotton fields.

In the past, most organic growers in the (then only three) active eradication zones have chosen to be indemnified not to grow organic cotton and have entered into individual agreements with the foundation in that regard. In areas that were not in active eradication zones, all cotton growers were responsible for treating their own fields as they saw fit to control pests. There was no unified monitoring of boll weevil activity or no requirement to act once weevils reached a certain level of infestation. By voting in an eradication program, growers in a zone have acknowledged the need to have a unified effort for control of boll weevils, and have also made a financial investment in the program by virtue of their paying assessments to fund the program. Organic cotton growers in a zone are also required to pay an assessment if cotton is planted. In the conducting of public hearings on the proposal, the department heard many comments regarding the financial investment made by conventional growers and how they feel that investment is jeopardized when organic cotton is allowed to grow untreated. In the same vein, however, most of those growers agree that a cotton grower should not be prevented from growing cotton if he or she chooses to do so.

It is anticipated that a significant amount of organic production could occur in the newer active zones. Where production of other organic crops has occurred in an active eradication zone, the foundation has treated the area around the organic field using an established protocol for treatment around sensitive areas. This protocol includes having an environmental division within the eradication program that monitors pesticide applications near sensitive sites, works with complaints received in regard to those areas and performs quality control on field operations. The foundation also takes steps to minimize drift onto sensitive areas by more closely monitoring weather conditions when applications are made, keeping spray pressure at a minimum to produce a larger droplet, using ground equipment and maintaining buffer zones. With the growing of additional organic cotton, and recognizing the potential need for the foundation to enter into agreements with growers regarding their production and the potential need for the department to require destruction of an organic cotton field as a last resort, the department has proposed a rule package that it believes establishes fair and equitable procedures for dealing with the production of organic cotton in active eradication zones. While entering into agreements with growers on an individual basis by the foundation has worked on a small scale and has minimized the problems that may arise related to untreated cotton, with the existence of a significant amount of acreage in newly active zones, the department believes that it is necessary to have uniform procedures in place for all zones, and in particular it is necessary to have a standard indemnification formula in place for compensation of organic growers whose cotton is required to be destroyed. The department has attempted to balance, in these rules, the various roles that it plays as the agency responsible for overseeing implementation of the boll weevil eradication program and regulating that program, as well as the agency whose charge is to open markets for Texas agricultural products including organic agricultural products, and the agency that has developed and enforces the states organic certification program. The overall goals of this rule package are to allow organic cotton producers to grow their cotton without fear of reprimand or discriminatory treatment in regards to how the eradication program is conducted, while at the same time assuring the success of the boll weevil eradication program is not compromised, and to provide organic cotton growers reasonable ompensation should they be required to destroy their organic cotton field due to a boll weevil infestation. he department believes that ultimately, the success of the program will benefit all growers and the public in general by reducing the use of pesticides used to control the boll weevil and by allowing Texas cotton growers to be more competitive in the marketplace.

The new rules explicitly provide that the decision to plant certified organic or transitional cotton in any field located in an active eradication zone will be made solely by the grower. The department recognizes the need for the organic cotton market to be sustained and the effect that a loss of the market share even for one year would have on Texas organic cotton growers and the organic product industry that has been established. In order to assure that the foundation and the department are aware of where organic production is occurring, the rules include provisions for the department to inform organic growers that they should notify the foundation of their planting intentions. The foundation is then required to communicate with organic growers in active zones to discuss eradication activities in and around organic crops, including planning to minimize problems such as drift. The foundation is further required to take reasonable steps to protect the certification of organic crops. In the event that an organic field is inadvertently treated directly or through drift, the grower will be indemnified.

To address concerns voiced by organic growers that they might be treated unfairly in comparison to conventional growers in regards to the establishment of the trigger level and placing of traps, the rules provide that those standards will be based on scientific and entomological considerations and be implemented in a fair and equitable manner. The rules also specifically provide that, once trapping of fields begins and trigger levels are monitored, that organic cotton fields will be subject to the same trap count trigger levels as conventional cotton fields. Organic growers will be informed of trigger levels at the beginning of each season, and if the trigger level changes, the foundation will inform them at least 48 hours before implementing a new trap trigger level. Traps will be checked at the same intervals as those in conventional cotton fields. If an organic cotton field surpasses the established trap count trigger level, the field in question will be inspected by a technical review committee made up of individuals who are experts in the area of pest management using objective standards developed by the foundation's technical advisory committee, which advises the board on pest management matters. No action will be taken until such a review has occurred and all reasonable options are explored for addressing the control of boll weevils in the field. The committee will make a recommendation to the commissioner for action and the commissioner will make a final determination on what action is appropriate. In the event that destruction of organic cotton is deemed by the commissioner as absolutely necessary in order to maintain the effectiveness of the eradication program, growers are notified that the crop must be destroyed and provided with time to destroy the crop. The rule also provides for extensions of the time for a grower to destroy a crop under certain situations. The rule also provides that growers will be fairly compensated for their losses, and provides eligibility standards for indemnification on a base-acreage system. Flexibility to enter into good faith negotiations with the foundation prior to planting organic cotton to discuss indemnification is also provided. As noted previously, and discussed in more detail in this preamble, the sections addressing the eligibility requirements for indemnification (§3.607) and the calculation of indemnity (§3.608) have been simultaneously withdrawn and refiled as new sections in response to comments received on the proposal. Although the department has proceeded to adopt new §§3.600 - 3.606 of Subchapter J, the adopted sections will have an effective date of May 15, 2000, to allow the department to promulgate new §§3.607-3.609 relating to eligibility for indemnification, calculation of indemnification and payment of assessment. Further, because the department believes that there may be a need to revisit these rules after undergoing one season of experience in their application, the department intends to review the rules again in January of 2001 and to set public hearings on Subchapter J to take public comment on whether or not changes should be made for the next growing season.

New § 3.601 is adopted with changes. The definition of "certified organic crop" has been changed by adding the word "private" before the words "certifying agent" for purposes of clarification and consistency with the department's organic certification program, the same change has been made to the definition of "transitional crop". The definition of "plow-up" has been changed to require shredding or plowing of cotton in a manner which destroys all hostable plants. This change is made based on a comment received from cotton growers and the Texas Boll Weevil Eradication Foundation to assure that hostable plants are not left in a field subjecting it to reinfestation by boll weevils. The definition of "trap count" has been changed to provide that traps are inspected on routine, rather than a weekly basis. This change is made to allow for flexibility in inspections, and was also made in response to a comment received on the proposal. New §3.602 is adopted with changes. A phrase has been added to provide that this section will not impair rights of parties to negotiate terms of indemnification, as allowed by this subchapter. This phrase is added to provide more flexibility to the foundation and growers to come to mutually acceptable terms where indemnification is appropriate or required. New §3.603(a) is amended to make reference to a "registered private certifying agent", to make this section consistent with §3.601. In §3.603(b), the date for the department to notify organic producers to report planting intentions to the foundation has been changed from January 1 to January 15 of each year based on a comment received. Section 3.604 has been changed at subsection (b) by replacing the words "products not allowed by the producer's certifying entity with the terms "prohibited materials". This change makes the reference consistent with the department's organic certification program rules. Subsection (d) of §3.604 has been changed by deleting reference to the foundation's board of directors. The reference is deleted, based on a comment received, to accurately reflect on whose behalf applications are being made.

Section 3.605 has been changed at subsection (b) to clarify that trigger levels are set by the foundation pursuant to §3.605(c). In addition, subsection (b) has been changed to change the terms "first full season" to "first season-long phase" of the eradication program. This change is made to more accurately reflect the time at which trap count trigger levels are set. Subsection (d) at paragraph (1) has been changed to provide that the representative on the technical review committee from the Texas Agricultural Extension Service office serving the respective area may be a designee of the integrated pest management (IPM) specialist, rather than a county extension agent. This change is made to clearly make the IPM specialist the designated person on the committee, or in the event he or she cannot serve, give the IPM specialist flexibility in designating someone else to represent the extension service. Paragraph (d)(4) has been changed to provide that the technical review committee shall make a recommendation within 48 hours after the field surpasses the trap count trigger level. Paragraph (d)(5) has been changed to provide that the commissioner shall make a final determination on action required within one business day of receiving the committee's recommendation. The changes to paragraphs (4) and (5) are made to assure that a decision on action required will be made in a timely manner by the technical review committee and the commissioner.

New §3.606 is adopted with changes. The time for a crop to be destroyed before compensation will be denied as provided at subsection (c)(2), has been changed from within 20 to within 14 days from the date of notification that the crop must be destroyed or expiration of an approved extension. The time after which the department may assess an administrative penalty for failure to destroy a crop required to be destroyed has been changed from within 21 to within 15 calendar days after the date of notification or expiration of any approved extension. The date after which a crop will be destroyed by the department or its designee has been changed from the 21st day to the 15th day after the date of notification or expiration of any approved extension. The dates in subsection (c), paragraphs (1)-(4) have been changed to make the timelines more accurately reflect the urgent need to get an infestation under control once a destruction determination has been made, especially given the time that has already lapsed since the infestation was discovered. In summary, once a potential infestation problem is discovered, the field must be inspected by a technical committee, options for action reviewed and destruction recommended, the recommendation must then be reviewed by the commissioner and destruction ordered, and then the grower will be notified to destroy. The changes also make the timelines consistent with timelines already established in the department's cotton stalk destruction program.

Comments were received from the following organizations: the International Federation of Organic Agriculture Movements, Theley, Germany; the Pestizid Aktions-Netwerk e.V. (PAN Germany); the Pesticides Trust, London; Florida Certified Organic Growers and Consumers, Inc., Gainesville, Florida; the Texas Organic Cotton Marketing Cooperative, O'Donnell, Texas; the Pesticide Action Network, San Francisco, California; the Southern Mutual Help Association, New Iberia, Louisiana; the Southern Sustainable Agriculture Working Group, Elkins, Arkansas; the Texas Organic Growers' Association, Austin, Texas; the Organic Consumers' Association, Duluth, Minnesota; the South Dakota Organic Crop Improvement Association Chapter #1, Selby, South Dakota; the Organic Trade Association, Greenfield, Massachusetts; the Northern Plains Sustainable Agriculture Society. Comments from these organizations were generally in opposition to the proposed rules. The comments generally centered on the compensation for organic growers and the preservation of the organic cotton market. Additionally, the comments generally addressed broad areas outside the scope of the proposal, including the boll weevil eradication program as a whole and the general use of pesticides.

Comments were also received from Plains Cotton Growers, Inc., Lubbock, Texas; Lamesa Cotton Growers, Inc., Lamesa, Texas; the Permian Basin Boll Weevil Eradication Zone Steering Committee, Ackerly, Texas; the Western High Plains Boll Weevil Eradication Zone Steering Committee, Plains, Texas; the Northwest Plains Boll Weevil Eradication Zone Steering Committee, Muleshoe, Texas; and the Southern Rolling Plains Cotton Growers Association, Inc., San Angelo, Texas. Comments from these organizations were generally in opposition to the proposed rules. These comments also generally centered on the compensation for organic growers. The Texas Boll Weevil Eradication Foundation Inc., (the foundation) also commented generally in favor of the proposal and provided some comments which were adopted by the department in the new rule, as previously noted.

In addition to the receipt of many written comments from both traditional and organic cotton growers, grower organizations, organizations otherwise involved in the production of cotton in Texas and representatives of the affected zone steering committees, the department also received many comments from businesses both in Texas and out-of-state that buy and/or sell organic cotton products or other organic products and individuals who use organic products. The department also conducted three public hearings in Lubbock, Lamesa and Muleshoe, Texas, which were attended by approximately 176 persons, primarily traditional cotton growers.

In addition to the comments noted above and those which have been incorporated into the new sections, the department received other comments on the proposal. Specifically on the new sections, the following comments were submitted which were not adopted by the department. In regards to §3.602(b), the foundation suggested that since it is the burden of the organic producer to notify the foundation of organic production in an active zone, consequences should be imposed for failure to perform that duty, including ineligibility for any type of indemnification or financial protection. The department disagrees with this comment and believes that the consequences for failure to report organic production are already clear.

In regards to §3.604(b), relating to Protection of Organic Certification, a comment by Osama El-Lissy, former program director for the foundation, pointed our that all aerial applications are done through contractors who are responsible for the performance of all aerial applications and assume "the liability for any property damage resulting from negligence, gross negligence, or strict liability arising from the acts, wrongs, and omissions of the contractor". In reference to that, Mr. El-Lissy suggests changing the language to read "In the event the foundation or an employee of the foundation inadvertently treats . . .". The department disagrees with the proposed language because to only include employees of the foundation would not cover any contracted labor, such as aerial applicators who make applications on behalf of the foundation. Also, it is the department's understanding that the foundation would actually be involved in coming to an agreement with a grower whose cotton has been inadvertently sprayed, then the foundation may seek reimbursement from the applicator's insurance company. To take the foundation out of the picture on that part would require that growers deal directly with applicators' insurance companies, which was not intended.

In regards to §3.605 (1), relating to the establishment of trap count trigger levels, the foundation has suggested adding the words "based on the foundation's experience" after "sound scientific and entomological considerations." The foundation has also asked that the words "and shall be implemented in a fair and equitable manner" be removed. It is the foundation's opinion that this sentence will serve as "fodder for lawsuits", and the foundation contends that no discretion is exercised in implementing trigger levels. Rather, if the number of weevils in an area surpasses the trigger level, the field is sprayed (if conventional) without discretion. The department disagrees with the proposed change because it believes that the language "based on sound scientific and entomological considerations" clearly and appropriately means that the trap count trigger level will be set in an objective manner. The department also believes that the language stating that the implementation of a trigger level and placing of traps shall be in a fair and equitable manner is also appropriate and is based on concerns of organic growers that the implementation of the program in relation to organic cotton, as to what triggers action and where traps are placed will not be implemented in a fair and equitable manner. The department does agree with the foundation that the implementation of trigger levels for either traditional or organic cotton should be based on objective, scientific methods. In regards to subsection (d) relating to the technical review committee, Mr. El-Lissy has suggested that the technical review committee be eliminated in favor of a system that relies strictly on trap captures, crop stage, and the progress of the eradication program. The department disagrees with this comment and believes that the use of the technical review committee process, with the level of expertise of its members and the direction provided by the foundation's technical advisory committee, will go far to assure that a thorough review of all factors relating to the need for action will be considered before any destruction of organic cotton is required. In regards to subsection (c), relating to the requirement that there be no destruction of cotton after the field reaches the cut-out stage, many conventional cotton growers have expressed the desire to remove this subsection completely. Mr. El- Lissy, who initially agreed to the inclusion of this provision, commented that he now believes this should not be applicable in the second and third season-long years of the program. The department believes that the proposed language should be adopted as proposed because several experienced entomologists, including Mr. El-Lissy, have indicated that once a crop reaches cut-out stage, plowing that crop does not significantly reduce its threat to the eradication effort. Also, because the department has no actual experience to indicate that the proposed language will create problems, it would be appropriate to leave this provision in at this point and revisit the issue for the next growing season, if necessary. In regards to §3.606 (b), relating to crop destruction extensions, the Western High Plains, Permian Basin, and Northwest Plains grower steering committees suggested that no extensions be allowed. The foundation has suggested that extensions only be granted for delays caused by weather, and that only one extension should be granted in each situation. The department disagrees with those comments, and believes that the proposed language is appropriate. This determination is made based on the department's experience with a similar existing program for the its stalk destruction in established pest management zones. In that program, the department has seen the need to allow extensions in certain situations that are generally beyond the control of the grower whose crop has been ordered to be destroyed. On subsection (c), relating to penalties for not destroying a crop by the deadline, conventional cotton growers in general, and the foundation, commented that the destruction timeline is too long. Specifically, the foundation has suggested that the second deadline of 20 days be changed to 10. Other comments from conventional cotton growers included decreasing the initial deadline for an organic grower to destroy a crop to three days and/or mandating that the grower lose the rights to any indemnification after 10 days. While the department agrees with growers and the foundation that the timeframes for destruction should be decreased, the department believes that the proposed timelines would be too short to allow a grower sufficient time to plowup a field on his or her own. The timeframes that have been adopted in this section are based on timeframes established by law and/or rule under the department's stalk destruction program. No comments were received on proposed §3.609, and the department has adopted that section without changes.

In addition to comments on specific sections, the department also received some general comments which were not incorporated into the adopted rule. Organic growers and their supporters requested that a guaranteed percentage of organic cotton be allowed to grow, without being subject to destruction under the rules. Comments state that this request was made in an effort to assure that all of the organic cotton production in Texas is not destroyed, resulting in a loss of markets for organic growers. The commenters point out that because of certification requirements, an organic grower whose crop has been destroyed or who is forced to treat in the same manner as conventional growers, could lose certification for up to three years, which would have a devastating effect on marketing efforts. The department believes that there is not a need for the designation of a percentage of organic production. The adopted rules do not prohibit the growth of organic cotton, nor do they require organic growers to enter into agreements not to grow organic cotton. The department further believes that the implementation of the technical review committee process to determine what action should be taken when a certain trigger level is reached will be fair and equitable and will result in destruction being required only when absolutely necessary in order for the eradication program not to be jeopardized.

Another general comment made by or on behalf of organic growers is that the foundation not be allowed to treat sensitive areas and that the foundation be required to use alternative treatment methods in organic cotton fields and incorporate integrated pest management (IPM) techniques into its eradication plan. The comments noted that the use of IPM is required by law. It is the department's belief that some of the comments received in this regard, in particular comments received from individuals and business supporters of the organic cotton industry, were generated by the mistaken impression that the foundation would be conducting a blanket spray program which would basically spray all areas within a zone, without regard to sensitive areas such as organic fields, schools and residential areas. The department believes that the foundation is already incorporating IPM techniques into its eradication plan and that the foundation has an established protocol for program activities around sensitive areas. The department does, however, strongly encourage the foundation to continue its efforts to incorporate more IPM techniques into its eradication plan as is possible, and to work closely with organic growers and other persons residing in active eradication zones and persons responsible for schools or other sensitive areas in or near treatment areas to assure that the threat of drift is minimized.

In regards to sensitive areas, the foundation has on staff an environmental department that is responsible for monitoring pesticide applications near sensitive sites, working with complaints, and performing quality control on field operations. A sensitive area is defined as any location adjacent to or near cotton fields where offsite drift of program chemical is unacceptable. This definition includes all organic fields. Once a site is deemed to be environmentally sensitive, an environmental monitoring specialist (EMS) must be on hand at the cotton field for any program-applied chemical application. Each zone has at least one. This EMS is responsible for ensuring that there is no offsite drift of program-applied chemical onto sensitive areas. The EMS accomplishes this by monitoring weather conditions and setting out dye cards that are coated with a white material that turns black when it comes into contact with oil-based materials (such as malathion). The foundation provides a detailed manual to all environmental monitoring specialists detailing the proper methods of weather observation and the proper use of dye cards. The foundation also takes further steps to minimize drift, including: instructing pilots to fly five feet above canopy; discontinuing applications when the wind speed exceeds 10 mph; instructing foundation ground observers to monitor wind speed and application height; instructing ground observers to ensure that people are not working in or near the field; keeping spray pressure at a minimum to produce a larger droplet that minimizes drift but is still efficacious in killing the boll weevil; and using ground equipment in areas where airplanes cannot safely be used.

In regards to use of IPM techniques, the definition of IPM provided in the Texas Agriculture Code, §74.102(11), defines IPM as "the coordinated use of pest and environmental information with available pest control methods, including pesticides, natural predator controls, cultural farming practices, and climatic conditions, to prevent unacceptable levels of pest damage by the most economical means and with the least possible hazard to people, property, and the environment." In addition to the use of chemical treatment for boll weevil control, the foundation also utilizes cultural and mechanical controls where possible. Cultural controls practiced by the foundation include having coordinated uniform cotton planting and harvesting dates, as organized by grower steering committees in each zone, assisting the department in enforcing stalk destruction deadlines in areas where such deadlines have been established, and providing an early plow-up rebate on a grower's assessment payment as an incentive to destroy cotton stalks as soon as possible after harvest. Mechanical controls include use of boll weevil traps to measure adult boll weevil population densities and identify their locations and to remove those trapped from the boll weevil population. In regards to the use of alternative methods of control, although research and testing is ongoing, there is no current proved alternative control method which can be used on a wide-scale to control boll weevil populations. Efforts in the past have been in the form of research projects conducted for or by the Texas A&M University System, Agricultural Extension Service and the Agricultural Research Service Division of the United States Department of Agriculture, centered around two primary methods, use of the boll weevil bait stick (BWACT) and the Catolaccus grandis, a boll weevil parasite, and success using those methods has been limited, in part due to availability and cost. As noted previously, research and testing of alternative methods of controlling boll weevil populations are ongoing. The department intends to become more active both at the state level, working with the Texas Agricultural Extension Service, and at the federal level, working with the United States Department of Agriculture, to seek funding of research on viable, cost-effective alternative methods to assist in organic production in Texas.

Another general proposal, which was proposed by Plains Cotton Growers to be incorporated throughout the new sections and the department's organic certification rules was a suggestion that the treatment of organic cotton fields with malathion be allowed as part of emergency spray program. This suggestion was modeled after language included in the recently proposed national organic production standards. The proposal was an effort to address the concern by organic growers that if their cotton is sprayed with malathion, that their certification would be lost and to allow for the treatment of organic cotton in the same manner as conventional cotton. The proposed national rule allows an organic grower to maintain a field's certified status if a field is sprayed as part of an emergency spray program, but the organic production from the sprayed field may not be sold as organic. More specifically, the proposal requested that the department's organic certification rules be changed to adopt the proposed language found in the national rule and that similar changes be made to proposed new §§3.600, 3.604(b) and (d), 3.605(d)(6), 3.606(a) and (d)(1), and §3.608(b) and (d)(3). Organic growers believe that adopting this proposal will cause them to lose their certification and if not that, would result in a loss of markets where cotton having undergone any application of pesticides will not be acceptable to buyers. The department disagrees that the proposal should be adopted. Texas state law clearly prohibits the application of pesticides to organic cotton, and the department has found no existing federal law or rule which would preempt Texas law in this regard. Moreover, Texas organic certification standards, known nationally and internationally as being the strictest in the nation, would not allow cotton which has been sprayed with malathion to maintain its organic certification. Finally, the department is required by law to protect the organic certification program and its markets, and, as pointed out by the organic growers, even if certification were somehow maintained, some markets would be lost, and certainly the integrity of the Texas organic certification program put at risk.

Upon review of the many comments received on §3.607, relating to eligibility for indemnity, and §3.608, relating to calculation of indemnity, and recognizing the apparent need to reconsider the eligibility and indemnification provisions of the organic cotton regulations, the department has determined that the proposal put forth on these sections should be withdrawn, and new sections proposed. Both the notice of withdrawal of proposed §3.608 and new proposed §3.608 have been filed for publication in this issue of the Texas Register . Comments from organic growers on §3.607 included that the rules for future zones should be retroactive as a grower would have to have 1999 production to be eligible for indemnification in a zone that passes this season, that a system be put in place that allows current organic growers to expand eligible cotton acreage in an active zone, and that base acreage be fully transferable. Conventional growers have commented that an organic grower's base acreage should be based strictly on a three year average, and 1999 plantings should not be an option. Comments from organic cotton growers on §3.608, in regards to the timing of payment of the indemnity included a request for an option to defer payment until after January 1 for tax purposes, a request that the foundation be required to establish an escrow account to secure the availability of payments, and a request that there be a penalty in some amount assessed to the foundation for late payment of an organic indemnity. In regards to the decision not to plant organic cotton (and receive indemnity), traditional cotton growers commented that an organic grower should be required to plant cotton in order to receive an indemnity. In regards to payment factors, some conventional growers, and the steering committees that commented, suggested that an organic APH be used for yield calculation. Organic growers commented that this would not be an accurate measurement on many farms and, overall organic cotton acreage would likely be greater than using the 10-year APH yield.

The majority of comments received on the proposal related to §3.608 and the payment calculation, and ranged from conventional cotton growers and their representatives who believe there should be no indemnification for organic growers, to conventional growers who believe that indemnification is warranted but the proposed payment is too high, to organic cotton growers and their supporters who believe that the proposed indemnification formula provides too little compensation, that they should be compensated for 100% of the value of their crop, rather than the proposed 70%. Conventional cotton growers believe that payment to organic growers will pose an unbearable strain on their already tight zone budgets and will garner support for not continuing the program in their zones. Organic growers believe that the proposed indemnification formula will not cover their production costs and will result in their suffering great financial loss. Some more specific suggestions included that the indemnification be Acres x organic APH x (FCIC cotton rate + 10 cents) x 50% or that indemnification be Acres x APH yield x 80 cents/pound x 50%. One other comment suggested that the market price for organic cotton should be used each year. Comments were also submitted regarding the statement of fiscal implications to organic growers and how, in the commenters' opinions, the compensation formula proposed would definitely have an adverse affect not only on growers, but on the persons employed in the organic cotton industry in Texas, and businesses that count on being supplied with organic cotton. In regards to indemnification after eradication has been declared in a zone, organic growers commented that post-eradication indemnity should be 100% of the value of the crop. Conventional grower representatives suggested that only growers who had base acreage in an active eradication program should be eligible for post-eradication indemnity. Comments were also received indicating that there is consensus among all groups (except those who wish to pay organic growers nothing) that a section should be added allowing the foundation (through grower steering committees) and organic growers to negotiate alternative arrangements.

Again, the department has withdrawn §§3.607 - 3.609 and filed newly proposed §§3.607 - 3.609 taking into consideration comments received and additional information regarding the operation of other federal agricultural programs and information provided by both organic and conventional growers in regard to average production and production costs. The department intends to adopt a final rule at the end of the 30-day comment period.

New §§3.600 and 3.601 provide a statement of authority and purpose for the subchapter and provide definitions to be used in the subchapter. New §3.602 provides that the decision to plant certified or transitional cotton in an active eradication zone is up to the grower producing the crop. New §3.603 provides requirements for communication between organic growers, the department and the Texas Boll Weevil Eradication Foundation. New §3.604 provides for protection of organic certification and indemnification to growers when an organic crop or field is inadvertently treated or exposed through drift to products not allowed for treatment on an organic crop. New §3.605 establishes requirements and procedures for setting and monitoring boll weevil trap count trigger levels. This section also provides for a review of fields that surpass the established trigger level by a technical review committee which will recommend to the Commissioner of Agriculture what eradication activity may be necessary, including destruction of the cotton crop, if warranted. New §3.606 provides procedures for notice and requests for extensions in the event a grower is notified that destruction of a cotton crop is necessary. This section also provides for the grower to choose conventional treatment of a crop in lieu of destruction

The new sections are adopted under the Texas Agriculture Code (the Code), §74.125, which provides the department with the authority to develop rules and procedures to protect the eligibility of organic cotton growers to be certified by the commissioner of agriculture, ensure that certification by the commissioner meets national certification standards, and in all events maintain the effectiveness of the boll weevil or pink bollworm eradication program administered under the Code, Chapter 74, Subchapter D, 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.

§3.600. Statement of Purpose and Authority.

The Texas Agriculture Code (the Code), Chapter 74, Subchapter D, §74.1011 designates the Texas Boll Weevil Eradication Foundation, Inc. (the foundation) as the entity to carry out boll weevil and pink bollworm eradication in Texas. The Code, §74.120, provides the Commissioner of Agriculture with the authority to adopt reasonable rules to carry out the purposes of Chapter 74, Subchapter D. The Code, §74.125 provides that the Commissioner shall adopt rules and procedures to protect the eligibility of certified organic and transitional cotton production in active eradication zones while ensuring the ultimate success of the boll weevil eradication program in Texas. Section 74.125 further provides that rules adopted under that section may provide indemnity for the organic cotton growers for reasonable losses that result from a prohibition of production of organic cotton or destruction of organic cotton. Mitigation of losses with production of an alternative crop may be required by the foundation board of directors. The foundation board may not treat or require treatment of organic cotton with chemicals that are not allowed for use on certified organic cotton. Plow-up of an organic cotton field may be required as an alternative to treatment with chemicals.

§3.601. Definitions.

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

(1)

Active eradication zone -- A boll weevil eradication zone established in accordance with the Texas Agriculture Code, Chapter 74, Subchapter D, in which a referendum of cotton growers has been held and both the establishment of an eradication program and a maximum assessment have been approved by growers for that zone and eradication activities are in progress or the zone has been declared eradicated by the commissioner.

(2)

Certified organic crop -- A crop which has undergone independent third party verification by the department or a registered private certifying agent that the crop has been produced in compliance with the Texas Organic Standards, Chapter 18 of this title (relating to Organic Standards and Certification), and qualified for full organic status, including the requirement that the land on which the crop is grown has had no prohibited materials applied for at least 36 months prior to harvest.

(3)

Commissioner -- The Commissioner of Agriculture or her designee.

(4)

Department -- The Texas Department of Agriculture

(5)

Foundation -- The Texas Boll Weevil Eradication Foundation

(6)

Plow-up -- To shred or plow in a manner which destroys all hostable plants.

(7)

Transitional crop -- A crop which has undergone independent third party verification by the department or a registered private certifying agent that the crop has been produced in compliance with the Texas Organic Standards, Chapter 18 of this title, and fulfills all requirements except the 36 months required for full organic status. A certified transitional organic crop must be produced on land that has had no prohibited materials applied for at least 12 months prior to harvest.

(8)

Trap count -- The number of boll weevils recorded as captured in a pheromone trap as inspected on a routine basis by an employee of the foundation.

(9)

Trigger levels -- Standards established by the foundation for the number of weevils recorded in a trap or for the number of weevils trapped per acre that would initiate further action by the foundation.

§3.602. Planting of Certified Organic or Transitional Cotton in Active Eradication Zones.

The decision on whether to plant certified organic or transitional cotton in any field located in an active eradication zone will be made solely by the grower producing the crop, subject to any designations of prohibited growing areas under the Code, §74.118, and rules adopted thereunder. Neither the foundation nor the department will urge or persuade, in any way, a grower or growers to plant or not to plant certified organic or transitional cotton. This provision shall not affect the rights of the parties to negotiate in good faith pursuant to 3.607 of this title (relating to Eligibility for Indemnification).

§3.603. Communication with Organic Producers; Notification of Organic Production.

(a)

Growers applying for or holding certified organic or transitional organic certification with the department or a registered private certifying agent and who intend to devote acres to organic or transitional crops must submit all appropriate documentation to the department's Organic Certification Program, in accordance with Chapter 18 of this title (relating to Organic Standards and Certification), in order to be recognized by the foundation as a certified organic or transitional grower for purposes of this section.

(b)

The department will contact all producers with certified organic or transitional acreage in an active boll weevil eradication zone before January 15 of each year by sending notice to the address on file with the department's Organic Certification Program for the grower. These producers will be informed that they should notify the foundation of their planting intentions no later than the date of planting the crop. It is the responsibility of the grower to inform the foundation of the location of all certified organic or transitional production within an active boll weevil eradication zone.

(c)

The foundation will communicate with all growers of certified organic or transitional crops in active eradication zones to discuss eradication activities in and around the production of such crops and to plan measures to minimize problems such as drift.

§3.604. Protection of Organic Certification.

(a)

The foundation will take steps reasonably necessary to protect the certification of organic crops during the course of its normal eradication activities.

(b)

In the event the foundation or an individual working for the foundation inadvertently treats a certified organic or transitional field or portion of a crop, either directly or through drift, with prohibited materials, the foundation will indemnify the grower in accordance with subsection (d) of this section. This indemnification will continue on an annual basis until the earliest date that the exposed field or crop is eligible to return to the status it held prior to the inadvertent treatment by the foundation.

(c)

For purposes of this section, a determination of whether or not a direct treatment or drift occurred will be made by the department in accordance with established procedures.

(d)

In the event of a confirmed case of direct treatment or drift of chemical applied for or by the foundation, the grower will receive just and reasonable compensation in an amount recommended by the foundation board and approved by the commissioner.

§3.605. Trigger Levels.

(a)

During the first season of treatment in an active boll weevil eradication zone, the "diapause" phase of the program, all organic producers may plant certified organic or transitional cotton consistent with §3.602 of this title (relating to Planting of Certified Organic or Transitional Cotton in Active Eradication Zones), without regard to boll weevil trap captures. Producers will be required to communicate with the foundation as prescribed in §3.603 of this title (relating to Communication with Organic Producers; Notification of Organic Production).

(b)

Certified organic or transitional cotton fields in active boll weevil eradication zones will adhere to the same trap count trigger levels that are set by the foundation and pursuant to subsection (c) for conventional cotton fields in that zone beginning in the first season-long phase of the program and continuing each season thereafter.

(c)

Trap count triggers will be set under the following conditions.

(1)

The foundation will inform organic growers of the trigger levels at the beginning of each season.

(2)

The trap count trigger level may change during the season, and when these changes are made, the foundation will inform organic growers at least 48 hours prior to implementing a new trap count trigger level.

(3)

Traps around organic cotton fields will be checked at the same interval as traps around conventional fields in the same zone.

(4)

The establishment of the trap count trigger level and placing of traps will be based on sound scientific and entomological considerations and shall be implemented in a fair and equitable manner.

(d)

If an organic or transitional field surpasses the set trap count trigger level, a technical review committee will determine if destruction of that field or other alternative action should be required using the following procedures.

(1)

This committee will consist of the foundation program director or his designee, a member of the foundation's technical advisory committee appointed by the commissioner, and an Integrated Pest Management (IPM) specialist, or his designee, from the Texas Agricultural Extension Service serving the respective area.

(2)

No less than two committee members will meet at the field in question within 48 hours after the field surpasses the trap count trigger level.

(3)

The committee will consider factors established by the foundation's technical advisory committee and approved by the foundation's board and the commissioner including, but not limited to, crop damage, trap captures in nearby traps, and cost to the eradication program.

(4)

The technical review committee shall make a written recommendation to the commissioner on the organic cotton field in question specifying the recommended actions and justification for those actions. This recommendation shall be made within 48 hours after the field surpasses the trap count trigger level.

(5)

The commissioner shall review the technical review committee's recommendation and make a final determination on the action required within one business day of receiving the committee's recommendation.

(6)

Should the commissioner determine that some type of eradication activity should occur, the grower may be required to either destroy the crop as prescribed in §3.606 of this title (relating to Crop Destruction), or may choose to allow the crop to be treated .

(e)

Destruction of an organic cotton crop under this section will not be required, regardless of trap captures, once the crop in that field has reached cut-out stage for that season. This stage will be determined through the following process.

(1)

For purposes of this section, "cut-out stage" is defined as at least 50% of cotton plants in a field having four or fewer nodes above white flower.

(2)

The grower will contact the foundation when they believe their crop has reached cut-out stage;

(3)

A foundation representative will inspect the field within 48 hours after being contacted by the grower to confirm that it has reached cut-out stage.

(4)

If there is a dispute relating to the stage of the crop, the IPM agent/specialist or county extension agent serving the area, will inspect the crop and determine if cut-out stage has been reached.

(5)

The foundation will notify the department when it is determined that a field has reached cut-out stage.

§3.606. Crop Destruction; Extensions, Choice of Conventional Treatment.

(a)

Crop destruction. A grower who has been notified that destruction of their organic cotton crop is necessary will have no more than seven calendar days from the date of receipt of notification to destroy that crop by plow-up.

(b)

Extension requests. A request for a deadline extension will be handled as follows.

(1)

The department may, on written request by a grower, grant an extension of the destruction deadline. Request for extensions may be granted for the following reasons:

(A)

weather factors;

(B)

illness;

(C)

mechanical failure; or

(D)

other good cause, as determined by the department.

(2)

A written request for an extension of the destruction deadline must be submitted on a form prescribed by the department.

(3)

Request forms may be obtained from either the department or the foundation.

(4)

Failure to complete the form in its entirety may result in denial of the request.

(5)

All requests for extensions shall be postmarked on or prior to the destruction deadline

(c)

Penalties for not destroying a crop by the deadline.

(1)

If the crop is not destroyed within seven calendar days of the date of notification or expiration of an approved extension, the compensation the grower is entitled to under §3.608 of this title (relating to Calculation of Indemnity), for that acreage will be decreased by 50%.

(2)

If the crop is not destroyed within 14 calendar days of the date of notification or expiration of an approved extension, the grower will no longer be entitled to compensation under §3.608 of this title, for that acreage.

(3)

The department may assess an administrative penalty of not more than $5,000 per day if the crop is not destroyed within 15 calendar days after the date of notification or expiration of an approved extension.

(4)

If the crop is not destroyed by the 15th day after the date of notification or expiration of an approved extension, the department or its designee may destroy the crop.

(d)

Choosing conventional treatment.

(1)

In lieu of crop destruction, a grower may notify the foundation and the department that he or she chooses to cancel his or her organic or transitional certification on the acreage that has been ordered to be destroyed so that conventional treatment may be used.

(2)

Such notification must be provided in writing to both the foundation and the department and must be postmarked, if sent by mail, or faxed before the destruction deadline. The same penalties described in subsection (c) will apply if notification is not received by the destruction deadline.

(3)

After both the foundation and the department receive this notification, the Foundation will treat the field in the same manner as all conventional cotton fields in the same zone.

(4)

A grower choosing to cancel organic certification will not be entitled to compensation under §3.608 of this title, for that acreage.

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 March 27, 2000.

TRD-200002208

Dolores Alvarado Hibbs

Deputy General Counsel

Texas Department of Agriculture

Effective date: May 15, 2000

Proposal publication date: February 11, 2000

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


Chapter 17. MARKETING AND PROMOTION DIVISION

Subchapter G. GO TEXAN PARTNER PROGRAM RULES

4 TAC §§17.301, 17.303 - 17.306, 17.308

The Texas Department of Agriculture (the department) adopts amendments to Chapter 17, Subchapter G, §§17.301, 17.303 - 17.306 and 17.308 concerning the GO TEXAN Partner Program (GOTEPP), without changes to the proposal published in the February 11, 2000, edition of the Texas Register (25 TexReg 998).

The amendments are adopted to clarify existing sections and make the application process more efficient. Further, the Department believes that the broadening of eligibility to specifically include businesses in addition to those meeting the definition of "small business" will result in a potential increase in the diversity of Texas agricultural products marketed and economic benefits to the public. Section 17.301(9) is amended to expand the number of eligible small businesses by including entities with fifty or fewer full time employees or $1 million or less gross receipts. Section 17.303(6) is amended to specifically include businesses, other than those meeting the definition of small business, along with other entities. This change will clarify that businesses not meeting the definition of small business may meet eligibility criteria under this eligibility category. Section 17.304(4) is amended to require all franchise tax, child support, conflict of interest and program eligibility information in one form provided by the department. This change will make the application process more convenient for the public and more efficient for the department. Section 17.305, at paragraph (1), is amended to require the name of the entity, phone number and email address, if available, of the applicant on the cover page for the project request. This change will facilitate communication between the applicant and the department. Section 17.305(3) is amended to clarify that paragraph. Section 17.305, at paragraph (4), is amended to require the inclusion in the project narrative of projected sales increase information and a statement identifying which eligibility criteria in § 17.303 of the program rules is met by the applicant. This change will expedite the processing of project requests by the department. New paragraph (8) has been added to §17.305 to require applicants to submit, along with their original project request, ten copies of the request for distribution to the board. Section 17.306(f) is amended to require the deposit of funds within ten business days after receiving a request for funds from the department. This change will allow successful applicants to keep the matching funds until the department is prepared to implement the approved project. Also, subsection (f) is being amended to grant the GO TEXAN Partner Program Advisory Board authority to accept in-kind contributions with a documented, clear monetary value from program applicants, in an amount not to exceed 10% of the total grant amount. This change will serve to expand the pool of potential applicants. Section 17.308(f) is amended to clarify use of certain project request funds. This change will give notice to applicants that 15% of all funds for each approved project request will be spent on the department's GO TEXAN program.

No comments were received on the proposal.

The amendments to §§17.301, 17.303 - 17.306 and 17.308 are adopted under the Texas Agriculture Code (the Code) §12.016, which provides the department with the authority to adopt rules as necessary for the administration of its powers and duties under the Code; the Code, §12.0175 which authorizes the department to establish programs to promote products grown in Texas and products made from ingredients grown in Texas and to charge a membership fee for those programs not to exceed $50; and the Code, §46.012, which provides the department with the authority to adopt rules to administer the GO TEXAN Partner Program.

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 March 22, 2000.

TRD-200002095

Dolores Alvarado Hibbs

Deputy General Counsel

Texas Department of Agriculture

Effective date: April 11, 2000

Proposal publication date: February 11, 2000

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