4 TAC §§17.302 - 17.304, 17.306, 17.308
The Texas Department of Agriculture proposes amendments to §§17.302-17.304, §17.306
and 17.308, all concerning the administration of the department's GO TEXAN
Partner Program (GOTEPP), a matching grant program. The amendments are proposed
to clarify and update the sections, to establish a requirement that retailers
or distributors applying to GOTEPP document a direct benefit to GO TEXAN members,
to establish maximum grant award amounts and to establish a maximum number
of projects that may be funded per biennium.
Delane Caesar, assistant commissioner for marketing and promotion, has
determined that for the first five-year period the amendments are in effect,
there will be no fiscal implication for the state or local government as a
result of enforcing or administering the sections as amended.
Ms. Caesar also has determined that for each year of the first five years
the amendment are in effect, the public benefit anticipated as a result of
enforcing the amendment will be clearer and more efficient requirements and
procedures for the administration of the GOTEPP matching grant program. In
addition, by requiring documentation of a direct benefit to GO TEXAN program
members the amendments make it clearer that the program benefits those that
were intended to benefit from the program, Texas agricultural producers. There
is no anticipated impact on individuals, small businesses and micro-businesses
to comply with the amendments as proposed.
Comments on the proposal may be submitted to Delane Caesar, Assistant Commissioner
for Marketing and Promotion, 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 proposed amendment to §17.302 adds a representative of agricultural
producers to the GOTEPP advisory board, provides that the board shall meet
at least biannually and provides that a majority of the total board membership
shall constitute a quorum. The proposed amendment to §17.303 provides
additional eligibility requirements for retailers and distributors applying
to the program, in order for the applicant to document a proposed project's
direct benefit to GO TEXAN members. The proposed amendment to §17.304
adds a requirement to disclose names of owners having 10% or more ownership
interest in an applicant business entity. The proposed amendment to §17.306
updates the address of the department's Marketing and Promotion Division,
clarifies that at least a majority of a quorum of the board must approve or
deny each project request, and adds new subsection (h) establishing maximum
grant awards and a maximum number of projects that may be funded per biennium.
The proposed amendment to §17.308 establishes a minimum amount of $10
that will be returned to a successful applicant as a refund.
The amendments are proposed under the Texas Agriculture Code, §46.012,
which authorizes the department to adopt rules to administer the GO TEXAN
Partner Program.
The code affected by the proposal is the Texas Agriculture Code, Chapter
46.
§17.302.Administration.
(a)
(No change.)
(b)
The board's responsibilities under this subchapter are
as follows.
(1)
The board shall be composed of the following members appointed
by the commissioner:
(A) - (H)
(No change.)
(I)
one representative from the Internet website or electronic
commerce industry; [
and
]
(J)
one representative with demonstrated expertise in economic
analysis
;and
[
.
]
(K)
one representative of agricultural
producers.
(2)
The board shall meet no less often than
bi-annually
[
quarterly
];
(3)
A majority
[
Two-thirds
] of the total
board membership shall constitute a quorum;
(4) - (6)
(No change.)
§17.303.Eligibility.
(a)
An eligible applicant must be:
(1) - (5)
(No change.)
(6)
any other entity or business, other than a business meeting
the
definition of small business, that promotes the marketing and sale
of Texas agricultural products.
If a retailer or distributor, the applicant
must demonstrate a direct benefit to GO TEXAN members in the manner provided
in subsection (b) of this section.
For purposes of this section, the
department shall have the sole discretion to determine whether an entity meets
program eligibility requirements.
(b)
A retailer or distributor who
applies under the program, must meet the requirements of paragraph (b)(1)
or paragraph (b)(2) of this section, in order to document a direct benefit
to GO TEXAN members:
(1)
Applying with GO TEXAN members.
(A)
The retailer/distributor must apply jointly
with GO TEXAN members, other than associate or other retail members, in order
to submit a GOTEPP project proposal.
(B)
All participating applicants must be GO TEXAN
members.
(i)
GOTEPP project proposals with a total project
amount from $0.00 to $5,000.00 require a minimum of one applicant in addition
to the applicant retailer or distributor .
(ii)
GOTEPP project proposals with a total project
amount from $5,001.00 to $30,000.00 require a minimum of three applicants
in addition to the applicant retailer or distributor.
(iii)
GOTEPP project proposals with a total project
amount from $30,001.00 to $99,999.00 require a minimum of seven applicants
in addition to the applicant retailer or distributor.
(iv)
GOTEPP project proposals with a total project
amount over $100,000.00 require a minimum of 10 or more applicants, in addition
to the applicant retailer or distributor.
(C)
All participating applicants and applicant retailers/distributors
must submit all required GOTEPP documentation.
(D)
A retailer/distributor is permitted to utilize
the same additional applicants no more than twice in a biennium; or
(2)
Demonstration of GO TEXAN members/vendors. Retailer/distributors
can apply without applying with other GO TEXAN members if 70% of their members
and/or vendors are GO TEXAN members, other than associate or retail members.
(c)
All applicants will be required
to provide documentation verifying the stated information, in addition, they
will be required to report sales information.
§17.304.Requirements for Participation.
To be eligible for participation in the program through the use of
matching funds under this subchapter, an applicant must:
(1) - (3)
(No change.)
(4)
submit a notarized affidavit on a form provided by the
department certifying and disclosing the following:
(A) - (C)
(No change.)
(D)
disclosing names of owners
having 10% or more ownership interest in a business entity;
(E)
[
(D)
] that applicant meets all program
requirements to apply for matching funds; and
(5)
(No change.)
§17.306.Filing Requirements and Consideration of Project Requests.
(a)
Project request. An applicant must submit a project request,
completed in accordance with this subchapter, to the department's Marketing
and Promotion Division, 1700 N. Congress Ave.,
11th
[
10th
] Floor, Austin, Texas 78711.
(b) - (d)
(No change.)
(e)
Board review of eligible applicants. The board shall approve
or deny each project request by
at least
a majority of the quorum
of the board.
(f ) - (g)
(No change.)
(h)
Maximum grant awards; number
of projects.
(1)
A maximum grant award of $75,000 per project
may be approved by the board, for a maximum total project amount of $150,000.
(2)
A maximum grant award of $75,000 (total project
amount of $150,000) per applicant, per biennium, may be approved by the board.
(3)
No more than two projects per biennium may be
approved for any one applicant.
§17.308.Use of Funds.
(a) - (f)
(No change.)
(g)
Upon the completion or cancellation of a project, the department
will refund to the successful applicant the applicant's share of any unexpended
funds approved and contracted for the project, minus the 20% portion of funds
allocated to the department's GO TEXAN program. A refund will be made after
quantification information required by the project contract has been submitted
to the department.
The minimum amount of a refund that will be returned
to the applicant by the department is $10.
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 May 5, 2003.
TRD-200302771
Dolores Alvarado Hibbs
Deputy General Counsel
Texas Department of Agriculture
Earliest possible date of adoption: June 15, 2003
For further information, please call: (512) 463-4075