| (a) Statement of Purpose and Authority. In accordance
with the Texas Agriculture Code (Code), Chapter 74, Subchapter E,
the department is authorized to contract with the Texas Boll Weevil
Eradication Foundation (foundation) to carry out boll weevil eradication
to obtain boll weevil eradication services for the state of Texas
as part of a cost-sharing program. This section sets forth requirements
and procedures for the implementation of the cost-sharing program.
(b) Eradication zone eligibility.
(1) The department may spend money under the cost-sharing
program only in a boll weevil eradication zone in which:
(A) a boll weevil eradication project authorized under
the Code, Chapter 74, Subchapter D is active; or
(B) boll weevil eradication has been declared complete
by the United States Department of Agriculture or its designee.
(2) An eradication zone meets the requirement set forth
in subparagraph (1)(A) of this section if a referendum of cotton growers
has been held in the zone in accordance with the Code, Chapter 74,
Subchapter D, and both the establishment of an eradication program
and a maximum assessment have been approved by growers for that zone.
(c) Request for funding.
(1) The foundation may request funding under this section
by submission to the department of a proposal to provide boll weevil
eradication services which meets the requirements specified by the
department.
(2) A proposal to provide boll weevil eradication services
shall include:
(A) a statement that the foundation meets eligibility
requirements;
(B) a statement verifying that the foundation will
comply with the Texas Grant Management Standards promulgated by the
Texas Comptroller of Public Accounts, under the Texas Government Code,
Chapter 783;
(C) verification that funds provided will be used for
boll weevil eradication services in eligible zones; and
(D) the specific amount of funding requested and how
the funds will be used, broken down by zone, period of time covered,
specific category of expenditure, and nature of activity.
(3) Additional information may be requested, if needed.
(d) Disbursement of funds.
(1) Disbursement of funds will be made after review
and acceptance of the foundation's proposal by the department and
execution of a written contract for services between the department
and the foundation.
(2) Disbursement shall be made only in accordance with
the contract.
(3) Disbursement of funds may be made in a lump sum
or installments, as set forth in the contract.
(e) Reporting/Accounting Requirements.
(1) After funds have been disbursed, the foundation
shall provide a written report of expenditures on a quarterly basis
according to the State of Texas fiscal year, or more often, as requested
by the department.
(2) Quarterly reports shall be submitted to the department
within 30 days after the end of each quarter.
(3) The foundation shall establish an accounting system
which identifies source of funds for cost-sharing programs, with separate
accounting, in a manner that will enable the department and others
to audit funds and verify source of funds and how they are used, for:
(A) grower assessments;
(B) state funds; and
(C) federal funds.
(4) The foundation shall comply with all applicable
state requirements regarding use of state funds.
(5) The department may suspend disbursement of funds
to the foundation, if:
(A) the department determines, or has reason to believe,
that appropriated funds are not being used for purposes stated in
the contract or the foundation is not complying with the terms of
the contract, including reporting requirements, or these rules;
(B) the department determines, or has reason to believe,
that the use of the appropriated funds by the foundation is not consistent
with state law; or
(C) the department determines or has reason to believe
that the foundation's use of the appropriated funds is not in the
best interest of the state, cotton growers, or the eradication program.
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