4 TAC §3.607
The Texas Department of Agriculture (the department) proposes
an amendment to Chapter 3, Subchapter J, §3.607 concerning organic cotton
regulations. Some adjustments are needed to the boll weevil eradication program
to address issues raised by organic cotton growers affected by the program.
Sections 3.600-3.609 of Subchapter J detail indemnification procedures in
the event an organic grower is forced to destroy his/her crop or elects to
have his or her crop treated under emergency treatment provisions. Both of
these actions may result in a potential economic loss that allows for compensation
by the foundation. However, the current rules do not specifically address
the transfer of acreage eligible for indemnification in the event of a death
of a farm operator, retirement, or transfer of property between existing business
and family relations. Current rules do not provide for a transfer of this
nature. Such a transfer would not impact the total acreage currently eligible
for indemnification, and therefore, there would be no significant change in
the way this acreage is currently treated by the department or the foundation.
The proposed amendment allows an eligible organic producer to transfer, with
the approval of the Commissioner of Agriculture, acreage eligible for indemnification
to another grower who has an existing business or familial relationship with
that eligible organic producer, providing the new grower meets all requirements
of the department's organic certification program.
Brian Murray, Special Assistant for Producer Relations, has determined
that for the first five-year period the amendment is in effect, there will
be no fiscal implication for the state or local government as a result of
enforcing or administering the section as amended.
Mr. Murray also has determined that for each year of the first five years
the amendment is in effect, the public benefit anticipated as a result of
enforcing the amendment will be to allow boll weevil eradication to continue,
while limiting the economic impact on the organic cotton industry. There will
be a cost to the new growers to whom acreage is being transferred, either
as individuals or as a cotton-growing business, who are required to comply
with the application requirements of Chapter 18, the department's organic
certification standards. The application fee would depend on the number of
acres and whether or not the grower would be adding acreage to an existing
certification or would be applying for a new certification. If added to existing
acreage, the fee will be $15 for up to 100 acres. If new certification application
is required, the fee for the first 100 acres will be $140, and $15 for each
additional 100 acres.
Comments on the proposal may be submitted to Brian Murray, Special Assistant
for Producer Relations, Texas Department of Agriculture, P.O. Box 12847, Austin,
Texas 78711. Comments must be received no later than 30 days from the date
of publication of the proposal in the
Texas Register
.
The amendment is proposed under the Texas Agriculture Code, §74.125,
which authorizes the department to adopt rules that provide indemnity for
organic cotton growers for reasonable losses that result from prohibition
of production of organic cotton or from any requirement of destruction of
organic cotton; and §74.120, which authorizes the department to adopt
reasonable rules to carry out the purposes of Chapter 74, Subchapter D.
The code affected by the proposal is the Texas Agriculture Code, Chapters
18 and 74.
§3.607.Eligibility for Indemnification.
(a)-(c)
(No change.)
(d)
Any grower eligible for indemnification
under subsections (b) or (c) of this section may, upon approval of the Commissioner,
transfer eligible base acreage to another grower and thereby transfer to the
new grower eligibility for indemnification for cotton grown on that acreage
for the purposes of this chapter, provided that organic certification requirements
found at Chapter 18 of this title (relating to Organic Standards and Certification)
are met by the new grower.
This agency hereby certifies that the proposal has been reviewed
by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of
the Secretary of State on April 28, 2003.
TRD-200302667
Dolores Alvarado Hibbs
Deputy General Counsel
Texas Department of Agriculture
Earliest possible date of adoption: June 8, 2003
For further information, please call: (512) 463-4075