TITLE 4.AGRICULTURE

Part 1. TEXAS DEPARTMENT OF AGRICULTURE

Chapter 12. WEIGHTS AND MEASURES

Subchapter D. METROLOGY

4 TAC §12.30

The Texas Department of Agriculture (the department) adopts amendments to Chapter 12 Weights and Measures, Subchapter D, §12.30, concerning fees charged for metrology services, without changes to the proposal published in the June 29, 2001, issue of the Texas Register (26 TexReg 4816). The amendments are adopted to increase fees charged for metrology services to recover costs of upgrading the department's metrology lab facility, replacing outdated equipment and providing more detailed documentation on certificates of calibration. The fees increased by this adoption have not been increased by the department since 1991. The National Voluntary Laboratory Accreditation Program (NVLAP) standards require metrology laboratories to meet stringent documentation, temperature, humidity, and vibration controls in order to become accredited. The current facility will not meet the required environmental standards. Increasing demand from companies requesting the department to provide ISO9000 compliance certification require an upgrade of the department's laboratory. Associated costs for the facility upgrade, replacing equipment, and providing this information will affect cost recovery as required by the Texas Agriculture Code, §12.0144. The increase in fees will allow the department to recover some of its cost associated with testing, in accordance with §12.0144. Further, the funds provided by the amendments will allow the department to provide Texas businesses and individuals with substantial marketing and audit benefits with a more detailed certificate containing information such as: state primary standards information, before and after calibration data, environmental conditions, procedure used, allowable tolerance, and measurement uncertainties. In addition, replacing outdated mechanical laboratory balances and upgrading lab facilities will improve measurement accuracy and efficiency. Another benefit for Texas businesses will be that the department will be able to provide services that will meet internationally recognized quality standards. In addition to increasing tolerance testing fees, the amendments also provide, at new subsection (c), that applies the increased fees to any testing performed after August 31, 2001.

No comments were received on the proposal

The amendments 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 § 13.115, which provides 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 6, 2001.

TRD-200104479

Dolores Alvarado Hibbs

Deputy General Counsel

Texas Department of Agriculture

Effective date: August 26, 2001

Proposal publication date: June 29, 2001

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


Chapter 24. TEXAS AGRICULTURAL FINANCE AUTHORITY: FARM AND RANCH FINANCE PROGRAM

4 TAC §§24.3, 24.9, 24.10, 24.12, 24.15

The Board of Directors of the Texas Agricultural Finance Authority (TAFA) of the Texas Department of Agriculture (the department) adopts amendments to §§24.3, 24.9, 24.10, 24.12 and 24.15, concerning the Farm and Ranch Finance Program, with changes to the proposal published in the June 22, 2001, issue of the Texas Register (26 TexReg 4578). Gramatical errors have been corrected in §24.3(10), concerning the definition of Guarantee amount, and in §24.10(a)(3), concerning the requirement for an applicant to provide the applicant's agricultural experience. Sections 24.9, 24.12 and 24.15 are adopted without changes and will not be republished.

The amendments are adopted in order to make the sections consistent with changes made to the Texas Agriculture Code, Chapters 58 and 59 by the enactment of Senate Bill 716 (SB 716), 77th Legislature (2001). Senate Bill 716 provides authority for TAFA to provide loan guarantees to lenders for the purchase of farm and ranch real estate. In addition, the amendments will generate a greater number of approved commitments for agricultural entities under the Farm and Ranch Finance Program. The amendments to §24.3, concerning Definitions, add the definitions of "Commissioner" and "Guarantee Amount". The amendment to §24.9, concerning Filing Requirements and Consideration of Application, amends subsection (d) to provide for review and approval of applications by the commissioner if the lender had been approved through TAFA's Preferred Lender Program. The amendment to §24.10, concerning Contents of the Application, amends paragraph (a)(3) to eliminate the resume requirement and provide that the applicant must provide information regarding agricultural experience and deletes subsection (f), regarding the requirement for an earnest money contract. The amendment to §24.12, concerning General Terms and Conditions of Authority's Financial Commitment, amends subsection (c) to change the ratio of pledged collateral required and provides for TAFA to provide a lender a guarantee on the lender commitment in an amount not to exceed 15% of the lender's total commitment. The amendment to §24.15, concerning Default Proceedings amends subsections (g) to change the ratio for sharing of net proceeds by the lender and TAFA after a default occurs.

No comments were received on the proposal.

The amendments are adopted under the Texas Agriculture Code, §58.022 and §59.022, which provide the TAFA board with the authority to adopt rules and procedures for administration of the programs of TAFA, including the Farm and Ranch Finance Program.

§24.3.Definitions.

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

(1) Act--Texas Agriculture Code, Chapter 59, Farm and Ranch Finance Program.

(2) Applicant--Any person who is applying for assistance under the Act and this chapter.

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

(4) Authority--The Texas Agricultural Finance Authority acting through its Board of Directors.

(5) Borrower--An applicant approved for a loan by the Authority Board of Directors.

(6) Commissioner--The Commissioner of the Texas Department of Agriculture.

(7) Department--The Texas Department of Agriculture.

(8) Financial statements--Financial statements submitted by the applicant, which shall include a balance sheet, income statement, cash flow statement and owners equity reconciliation, if applicable.

(9) Fund--The Farm and Ranch Finance Program Fund.

(10) Guarantee Amount--With respect to a loan made by a lender, a sum measured in terms of United States dollars that the Authority agrees to pay in the case of default by the borrower, not to exceed the percentage and amount as stated in the guaranty agreement.

(11) Interest rate--The interest rate on a loan as determined and approved by the Authority and the lender on a case-by-case basis.

(12) Lender--A lender shall be a state or nationally chartered commercial lending institution, savings and loan association, credit union, any member of the Farm Credit System in the state, or any institution that the Authority determines is an experienced and sophisticated lender.

(13) Loan--A loan approved by the Authority in accordance with the requirements and criteria set forth in the Act and in this chapter.

(14) Program--The Farm and Ranch Finance Program.

(15) Staff--The staff of the Department performing work for the Authority.

(16) State--The State of Texas.

§24.10.Contents of the Application.

(a) Required information.

(1) the applicant's name and address;

(2) the applicant's social security number;

(3) the applicant's agricultural experience;

(4) a completed personal history questionnaire;

(5) a current credit bureau report and/or two credit references;

(6) information and/or letters of commitment regarding other funding sources, if applicable;

(7) disclosure of any and all business affiliations of the applicant with members of the Authority, employees of the department and the staff which could present a conflict of interest; and

(8) any other information which the applicant, the lender, or the Authority decides may be useful in the determination of the applicant's eligibility and/or creditworthiness.

(b) Financial statement. Financial statements, preferably based in accordance with generally accepted accounting principles, should be typed or written in ink, dated (no more than three months old), and signed by the applicant and spouse, if applicable. Printed forms of lending institutions will be accepted. A financial statement will be required from each person/entity who will become personally liable on the loan.

(c) Business plan. A business plan for the applicant's proposed operation, including the land acquisition must provide assurance to the Authority that the applicant intends to use the land purchased primarily for farming or ranching. The plan must provide a comprehensive overview of the proposed operation and evidence of sufficient cash flow of the applicant for the requested financing and all other indebtedness. The assumptions on which the plan is based must be provided, including the interest rate used.

(d) Tax returns. The applicant's complete tax returns including W- 2 forms, if applicable, for the preceding three years.

(e) Farm or ranch land appraisal. An appraisal of the farm or ranch land, as completed in compliance with Federal law, must be submitted which identifies the appraised market value of the farm or ranch land. The appraisal must be completed by an appraiser, selected by the lender, who is duly qualified to perform such task. A letter stating the appraiser's qualifications and experience must be submitted with the appraisal.

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 6, 2001.

TRD-200104477

Dolores Alvarado Hibbs

Deputy General Counsel

Texas Department of Agriculture

Effective date: August 26, 2001

Proposal publication date: June 22, 2001

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


Chapter 30. TEXAS AGRICULTURAL FINANCE AUTHORITY: YOUNG FARMER LOAN GUARANTEE PROGRAM

Subchapter A. GENERAL PROCEDURES

4 TAC §30.6

The Board of Directors of the Texas Agricultural Finance Authority (TAFA) of the Texas Department of Agriculture (the department) adopts an amendment to §30.6, concerning the Young Farmer Loan Guarantee Program, without changes to the proposal published in the June 22, 2001, issue of the Texas Register (26 TexReg 4579). The amendment is adopted in order to make the sections consistent with the adoption by TAFA of the Preferred Lender Program Rules and to provide a more efficient manner of processing applications by preferred lenders under the Young Farmer Loan Guarantee Program. The amendment to §30.6, concerning Board or Commissioner Review, is amended to provide for review and approval of applications by the commissioner if the lender has been approved through TAFA's Preferred Lender Program.

No comments were received on the proposal.

The amendment is adopted under the Texas Agriculture Code, §58.022 which provides the TAFA board with the authority to adopt rules and procedures for administration of the programs of TAFA, including the Young Farmer Loan Guarantee 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 August 6, 2001.

TRD-200104478

Dolores Alvarado Hibbs

Deputy General Counsel

Texas Department of Agriculture

Effective date: August 26, 2001

Proposal publication date: June 22, 2001

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