TITLE 4. AGRICULTURE

PART 1. TEXAS DEPARTMENT OF AGRICULTURE

CHAPTER 28. TEXAS AGRICULTURAL FINANCE AUTHORITY

The Texas Agricultural Finance Authority (TAFA or the Authority), a public authority within the Texas Department of Agriculture (Department), proposes rule amendments to Texas Administrative Code, Title 4, Chapter 28, Subchapter A, §§28.2, 28.3, 28.5, and 28.7; Subchapter B, §§28.10, 28.12 - 28.19; Subchapter C, §§28.20, 28.23 - 28.30, 28.32, 28.35 - 28.37; Subchapter D, §§28.40 - 28.48; Subchapter E, §§28.50 - 28.55; Subchapter F, §§28.60 - 28.63; and Subchapter G, §§28.70 - 28.72, 28.74 - 28.78, 28.80, 28.83, 28.86 and 28.87. In addition, TAFA proposed new rules within Subchapter E, §§28.56 - 28.58. TAFA also proposes repeal of Subchapter G, §28.73. TAFA further proposes new Subchapter H within Chapter 28, comprised of §§28.90 - 28.96, providing rules for the establishment, implementation, and administration of the Pest and Disease Control and Depredation Program, which is designed to implement agriculture-related pest, disease, or depredating animal control efforts and mitigate agriculture losses.

During its Regular Session, the 89th Texas Legislature enacted House Bill (HB) 43, which amended Chapter 58 of the Texas Agriculture Code relating to the Authority. With the passage of HB 43, several TAFA financial assistance programs were modified and a new pest and disease control and depredation program was established.

In conjunction with this proposed rulemaking, TAFA conducted the statutorily-required review of its rules. Notice of this rule review was published in the October 10, 2025 issue of the Texas Register (50 TexReg 6689); no comments were received from the public. TAFA has adopted its rule review with proposed amendments, proposed new rules, and a proposed repeal, primarily to implement HB 43 and improve and update the rules in areas identified during the statutorily-required rule review to clarify and improve readability for the public.

SECTION-BY-SECTION SUMMARY

The proposed amendments to §28.2 remove several redundant definitions for terms already defined in TAFA's enabling statutes in the Texas Agriculture Code ("Agricultural business," "Agricultural product," and "Lender"), add definitions for the terms, "Administrator" and "Department" to account for the use of these terms in the chapter, modify some definitions to improve readability, and make conforming formatting changes.

The proposed amendment to §28.3 makes a change to identify a defined term.

The proposed amendments to §28.5 make changes to identify defined terms. In addition, new language is incorporated into §28.5 to recognize that a resolution of the TAFA board pertaining to administration of the Texas Agricultural Fund shall control over the rules in this chapter if a conflict arises.

The proposed amendments to §28.7 make changes to identify defined terms and improve readability. Similarly, the proposed amendments to §28.10 and §28.12 identify defined terms.

The proposed amendments to §28.13 correct a statutory reference to the Texas Agriculture Code; remove a redundant definition ("Linked deposit"), adds a definition for "Lender"; and modify a definition to clarify and improve readability.

The proposed amendments to §28.14 make changes to identify defined terms and improve readability.

The proposed amendments to §28.15 make changes to identify defined terms, to track statutory language for the maximum loan rate a borrower would pay, to allow for additional methods of communication including email, and to update the threshold amount that requires a lender to notify the Authority.

The proposed amendments to §28.16 make changes to identify defined terms.

The proposed amendments to §28.17 make changes to identify defined terms and correct a reference within the chapter.

The proposed amendments to §§28.18 and 28.19 make changes to identify defined terms.

The proposed amendments to §§28.20, 28.23, 28.24, 28.25, 28.26, 28.27, and 28.28 make changes to identify defined terms and improve readability.

The proposed amendments to §28.29 update the maximum loan guarantee amounts under the Agricultural Loan Guarantee Program and adds language to allow the TAFA board to consider loan guarantees in excess of $1 million and approved by resolution of the TAFA board. Additional changes are also incorporated to improve the rule's readability.

The proposed amendments to §§28.30, 28.32, and 28.35 make changes to identify defined terms and improve readability.

The proposed amendments to §28.36 is modified to align with statutory language in the Texas Agriculture Code and incorporate changes to improve readability.

The proposed amendments to §28.37 make changes to identify defined terms and improve readability.

Proposed amendment to the heading for Subchapter D is updated from "Young Farmer Interest Rate Reduction Program Rules" to read "Farmer Interest Rate Reduction Program Rules" to remove the word, "Young" and reflect changes made by HB 43 to Texas Agriculture Code, Chapter 58.

The proposed amendments to §§28.40 and 28.41 remove the word "young" when necessary to conform with HB 43 and make changes to improve the rules' readability.

The proposed amendments to §28.42 removes an unnecessary definition, modifies the definition of "Lender" and reflects changes made to improve the section's readability.

The proposed amendments to §28.43 make changes to identify defined terms and correct a reference within the chapter.

The proposed amendments to §28.44 update language to reference statute for the maximum loan rate a borrower would pay, to allow for additional methods of communication including email, and update the threshold amount that requires a lender to notify the Authority.

The proposed amendments to §§28.45, 28.46, and 28.47 make changes to identify defined terms and correct a typographical error.

The proposed amendments to §28.48 increase the maximum loan amount to conform with changes made by HB 43 and to identify defined terms and improve readability.

Proposed amendment to the heading for Subchapter E is updated to reflect the change in program name from "Young Farmer Grant Program Rules" to "Agriculture Grant Program Rules" to reflect changes made by HB 43 to Texas Agriculture Code, Chapter 58.

The proposed amendments to §28.50 update the purpose of the program to conform with changes made by HB 43 to Texas Agriculture Code, Chapter 58 and make changes to improve readability.

The proposed amendments to §28.51 identify defined terms and replace the phrase, "young farmer," with "agriculture" when necessary to conform with changes made by HB 43 to Texas Agriculture Code, Chapter 58.

The proposed amendments to §28.52 remove an unnecessary definition, modify another definitions, and improve readability.

The proposed amendments to §28.53 update the program name, remove the age requirements and modify the eligible project types to conform with changes made by HB 43 to Texas Agriculture Code, Chapter 58.

The proposed amendments to §28.54 clarify permissible uses of certain grant funds and improve readability.

The proposed amendments to §28.55 provides the TAFA board with greater flexibility in its administration of the grant program by creating multiple grant opportunities, clarifying application details and allowing the TAFA board to determine grant cycles each year and not limit it to two periods.

Proposed new rule, §28.56 (Use of Grant), describes basic information required to be published for each grant opportunity and states the manner in which grant funds will be disbursed.

Proposed new rule, §28.57 (Filing Requirements; Consideration of Project Requests; Grant Awards), requires an applicant to submit an application in the format prescribed by TAFA, requires TAFA to publish the maximum award amount and allows TAFA to decline all applications in its sole discretion.

Proposed new rule, §28.58 (Reporting Requirements) requires grant recipients to comply with reporting requirements that will be included in the grant agreement.

The proposed amendment to §28.60 identifies a defined term.

The proposed amendments to §28.61 identify defined terms and correct a statutory reference.

The proposed amendments to §28.62 identify defined terms and correct an internal reference within the chapter.

The proposed amendments to §28.63 identify a defined term.

Proposed amendment to the heading for Subchapter G is updated to reflect the change in program name from "Rural Economic Development Finance Program" to "Rural Agriculture Economic Development Finance Program" to reflect changes made by HB 43 to Texas Agriculture Code, Chapter 58.

The proposed amendments to §§28.70 and 28.71 add the term, "Agriculture," to references to the grant program and the phrase, "agriculture-related" to references to the types of grant projects allowed under the program ("rural agriculture-related economic development"), as modified by HB 43, and make non-substantive edits to identify defined terms and improve readability.

The proposed amendments to §28.72 remove definitions no longer necessary based on HB 43 ("Economic Development Corporations" and "Special Purpose District"), add a definition for "Rural agriculture-related economic development" to account for the use of this phrase in the subchapter, and modifies definitions, such as "Applicant" and "Political Subdivision" to provide additional clarification and improve readability.

The proposed amendments to §§28.74, 28.75, 28.76, 28.77, and 28.78 add the phrase, "agriculture-related," to the phrase, "rural economic development," and make changes to provide additional clarification and improve readability.

The proposed amendments to §28.80 remove references to "sales tax" and "tax" from list of options to secure commitments.

The proposed amendments to §28.83 identify defined terms and provide additional clarification and improve readability.

The proposed amendments to §§28.86 and 28.87 add the term, "Agriculture," to references to the grant program reflect changes made by HB 43 to Texas Agriculture Code, Chapter 58.

New Subchapter H is proposed to reflect the establishment of a new pest and disease control and depredation program in Texas Agriculture Code, Chapter 58 by enactment of HB 43.

New proposed rule, §28.90 (Statement of Purpose), identifies the purposes of the new grant program as control efforts and to mitigate agriculture losses.

New proposed rule, §28.91 (Definitions) adds the definition of "Program" for purposes of this subchapter.

New proposed rule, §28.92 (Administration) outlines staffing, ability of the TAFA board to create multiple programs, and requirement for board to adopt selection criteria.

New proposed rule, §28.93 (Eligibility), limits participation in the program to those entities identified in statute including Texas Animal Health Commission, Texas A&M AgriLife Extension Service, and Texas A&M AgriLife Research.

New proposed rule, §28.94 (Use of Grant), describe basic information required to be published for each grant opportunity and states the manner in which funds will be disbursed.

New proposed rule, §28.95 (Filing Requirements; Consideration of Project Requests; Grant Awards), requires an applicant to submit an application in the format prescribed by the Authority, requires the Authority to publish the maximum award amount, and allows the Authority to decline all applications in its sole discretion.

New proposed rule, §28.96 (Reporting Requirements), requires grant recipients to comply with reporting requirements that will be included in the grant agreement.

Proposed repeal of §28.73 relating to the Texas Rural Community Loan is appropriate to reflect changes made by HB 43 to Texas Agriculture Code, Chapter 58.

FISCAL IMPACT ON STATE AND LOCAL GOVERNMENT

Ms. Mindy Fryer, Director of Rural Programs and Financial Assistance, has determined that for each year of the first five years the proposed rulemaking is in effect, enforcing or administering the sections will have no fiscal impact on state or local governments.

PUBLIC BENEFIT AND COSTS

Ms. Fryer determined that, for each of the first five years, the proposed rulemaking is in effect, the public benefit will be increased opportunities for agricultural producers and businesses to apply for grants and other financial assistance programs to maintain, create, or expand their operations. Additional benefits of the proposed rule amendments include enhanced readability, clarity and transparency.

Ms. Fryer has determined that there are no anticipated economic costs. Persons are not required to participate in TAFA's programs and the proposed rulemaking does not impact the cost of participation.

FISCAL IMPACT ON SMALL BUSINESSES, MICRO-BUSINESSES, AND RURAL COMMUNITIES PROPOSED RULES

There will be no adverse economic effect on small businesses, micro-businesses, or rural communities as a result of the proposed rules. Because Mrs. Fryer has determined that the proposed rulemaking will have no adverse economic effect on small businesses, micro-businesses, or rural communities, preparation of an Economic Impact Statement and a Regulatory Flexibility Analysis, as detailed under Texas Government Code, §2006.002, is not required.

COST INCREASE TO REGULATED PERSONS

The proposal does not impose a cost on regulated persons, another state agency, a special district, or a local government and, therefore, is not subject to Texas Government Code, §2001.0045.

TAKINGS IMPACT ASSESSMENT

The proposal does not impose a burden on private real property and, therefore, does not constitute a taking under Texas Government Code, §2007.043.

GOVERNMENT GROWTH IMPACT STATEMENT

Pursuant to Texas Government Code, §2001.0221, Mrs. Fryer provides the following government growth impact statement for the proposed rulemaking. For each year of the first five years that the proposed rulemaking will be in effect, Mrs. Fryer has determined the following:

(1) the proposed rulemaking is necessary and required to implement programs created through the enactment of HB 43, 89th Texas Legislature, Regular Session;

(2) implementation of the proposed rulemaking may require the creation of new employee positions;

(3) implementation of the proposed rulemaking will not require an increase or decrease in future legislative appropriations to the agency;

(4) the proposed rulemaking will not require an increase or decrease in fees paid to the agency;

(5) the proposed rulemaking contains new rules and therefore create new regulations;

(6) the proposed rulemaking contains rule amendments that will expand, limit, or repeal an existing regulation;

(7) the proposed rulemaking will not increase or decrease the number of individuals subject to the rules' applicability; and

(8) the proposed rulemaking will positively affect the state's agriculture economy by creating additional financial assistance programs available to producers and agribusinesses.

The proposed rulemaking will not affect a local economy within the meaning of Texas Government Code, §2001.022 and will not have an adverse economic effect on small businesses, micro-businesses, or rural communities.

PUBLIC COMMENTS

Public comments on the proposed rule amendments, proposed new rules, and proposed repeal may be submitted in writing to Mindy Fryer, Director for Rural Programs and Financial Assistance, Texas Department of Agriculture, P.O. Box 12847, Austin, Texas 78711; or by email to Grants@TexasAgriculture.gov no later than 30 days from the date of publication in the Texas Register.

SUBCHAPTER A. FINANCIAL ASSISTANCE RULES

The rule amendments, repeal, and new rules are proposed pursuant to Section 12.016 of the Texas Agriculture Code (Code), which authorizes the Department to adopt rules as necessary for the administration of its powers and duties under the Code, and Sections 58.022(1) and 58.023 of the Code, which further authorizes the Authority to adopt and enforce bylaws, rules, and procedures in order to carry out its functions under Chapter 58.

The statutory provisions affected by this proposal are those within Texas Agriculture Code, Chapter 58.

§ 28.2. Definitions.

In addition to the definitions set forth in Texas Agriculture Code, §58.002, the following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise. Definitions applicable to specific programs may be included within the applicable subchapter.

(1) Act--The Texas Agricultural Finance Act, Texas Agriculture Code, Chapter 58[ , as amended ].

(2) Administrator--The individual employed by the Commissioner, with approval of the Board, to perform duties related to administration of the Authority, as further described in Texas Agriculture Code, Section 58.015(c). [ Agricultural business--A business that is or proposes to be engaged in producing, processing, marketing, or exporting of an agricultural product, that is the entity designated to carry out the boll weevil eradication program in accordance with the Texas Agriculture Code, §74.1011, that is or proposes to be engaged in an agricultural-related business in rural areas of Texas, including a business that provides recreational activities associated with the enjoyment of nature or the outdoors on agricultural land, or a state agency or an institution of higher education that is engaged in producing an agricultural product. ]

(3) [ (4) ] Applicant--Any eligible agricultural business [ person, corporation, partnership, cooperative, joint venture, sole proprietorship, the entity designated to carry out the boll weevil eradication in accordance with Texas Agriculture Code, §74.1011, or a state agency or institution of higher education ] filing an application with the Authority for financial assistance under any program under this chapter. A lender may submit an application on behalf of any of the above-mentioned parties.

(4) [ (5) ] Application--An application promulgated and approved by the [ Texas Agricultural Finance Authority ] Board [ of Directors ], including supporting documentation and schedules as required by the Authority, for participation in a program [ the programs ] under this chapter.

(5) [ (6) ] Authority--The Texas Agricultural Finance Authority.

(6) [ (7) ] Board--The board of directors of the Authority.

(7) [ (8) ] Business day--A day on which the Department [ department ] is open for business. The term shall not include Saturday, Sunday, or a traditional holiday officially observed by the State [ state ]. The Department's [ department's ] normal business hours are 8:00 a.m. to 5:00 p.m. each business day.

(8) [ (9) ] Compliance report--A copy of the final loan documents.

(9) [ (10) ] Comptroller--The Texas Comptroller of Public Accounts.

(10) [ (11) ] Current market rate--The rate of interest on a United States treasury bill or note, the maturity date of which most closely matches the maturity date of the loan, or the end of the current biennium of the State, whichever is sooner, as determined by reference to the United States treasury bill or note section of the Wall Street Journal or equivalent publication including an electronic publication, published on the day the loan is priced.

(11) [ (12) ] Default--The failure to perform an obligation established by the loan agreement, these rules or the Act.

(13) Deputy Commissioner--The Deputy Commissioner of the Department [ of Agriculture ].

(14) (No change.)

(15) Fund--The Texas Agricultural Fund [ agricultural fund ].

(16) [ (17) ] Loan guarantee amount--With respect to loans made by a lender and guaranteed by the Authority, a sum measured in terms of United States dollars that the Authority pays to the lender to acquire an undivided interest in any loan or, in the case of default by the borrower, the Authority agrees to pay to the lender, not to exceed the percentage as stated in the guaranty agreement.

(17) [ (18) ] Program [ Programs ]--Any financial assistance program approved by the Authority board and defined by the rules under this chapter.

(18) [ (19) ] Project--An enterprise which would further the expansion or development of production, processing, marketing or exporting of Texas agricultural products or other agricultural-related rural economic development projects.

(19) [ (20) ] Qualified application--A completed application, including all documents and information required by the Authority and submitted by the lender or applicant[ , ] for participation in a program under this chapter.

(21) [ (22) ] Staff--The staff of the Authority or staff of the Department performing work for the Authority.

(22) [ (23) ] State--The State of Texas.

§ 28.3. Examination of Records.

Any party requesting records of the Authority must submit a written request to the Department [ department ] pursuant to the Texas Public Information Act, Texas Government Code, Chapter 552.

§ 28.5. Texas Agricultural Fund.

The Fund [ fund ], established in the Office of the Texas Comptroller [ office of the comptroller ], may consist of general obligation bond or commercial paper note proceeds, revenues generated from fees on farm vehicle registrations, appropriations or transfers made to the fund, guaranty fees, monies received from the operation of the program, interest paid on money in the fund from the operation of the program, interest paid on money in the Fund and any other monies received from other sources for the fund. The Board [ board ] may , by resolution, provide for the establishment and maintenance of separate accounts within the Fund [ fund ], including loan guaranty program accounts as prescribed by the Board [ board ]. In the event of any conflict between these rules and the provisions of a resolution of the Board pertaining to the administration of the Fund, the provisions of the Board's resolution shall control.

§ 28.7. Servicing and Collateral Administration.

(a) Except as otherwise provided by state law, these rules, or a resolution of the Board [ board ], the staff, with the approval of the Commissioner [ commissioner ] or Deputy Commissioner [ deputy commissioner ], or an [ the department ] official of the Department designated by Commissioner [ commissioner as being responsible for the Authority's programs ], shall have the power to act on behalf of the Authority, without specific board approval, in regard to the administration, collection, enforcement, settlement and servicing of each and every commitment previously approved by the Board [ board ] under the Authority's programs, including, without limitation, those commitments and programs in effect prior to September 1, 2009. Such authority shall include, without limitation, any action required to be taken under any commitment, financial instrument, grant agreement, interest rebate or reduction agreement, loan guarantee, obligation, participation agreement, and any other agreement approved by the Board [ board ] and entered into by the Authority with respect to financial assistance or commitment made by the Authority.

(b) Nothing in this section shall prevent the Commissioner [ commissioner ], the Deputy Commissioner [ deputy commissioner ], the [ department ] official of the Department designated by Commissioner [ commissioner as being responsible for the Authority programs ], or the staff from submitting any matter to the Board [ board ] for its consideration and approval.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on November 21, 2025.

TRD-202504296

Susan Maldonado

General Counsel

Texas Department of Agriculture

Earliest possible date of adoption: January 4, 2026

For further information, please call: (512) 463-6591

SUBCHAPTER B. INTEREST RATE REDUCTION PROGRAM

The rule amendments, repeal, and new rules are proposed pursuant to Section 12.016 of the Texas Agriculture Code (Code), which authorizes the Department to adopt rules as necessary for the administration of its powers and duties under the Code, and Sections 58.022(1) and 58.023 of the Code, which further authorizes the Authority to adopt and enforce bylaws, rules, and procedures in order to carry out its functions under Chapter 58.

The statutory provisions affected by this proposal are those within Texas Agriculture Code, Chapter 58.

§ 28.10. Authority.

The [ Texas Agricultural Finance ] Authority is authorized by Chapter 44 of the Code, §44.007 to establish the Interest Rate Reduction Program.

§ 28.12. Scope.

These sections will govern all applications filed under the Interest Rate Reduction Program. The Authority and the Comptroller [ comptroller ] may waive the applicability of any section to an application when such waiver would be in the public interest and would further the purposes of the Act.

§ 28.13. Definitions.

In addition to the definitions set forth [ out ] in Texas Agriculture Code , §44.001 [ Chapter 58, as amended ] and §28.2 [ in subchapter A ] of this chapter (relating to Definitions [ Financial Assistance Rules ]), the following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.

(1) (No change.)

(4) (No change.)

§ 28.14. Application Procedure for Applicant.

(a) An applicant must comply with the following procedures to obtain approval of the application for participation in the Program [ program ]. An applicant shall submit a complete and accurate [ loan ] application and any required credit documentation to the lender and an applicant shall supply all required documentation that the Authority requires to determine whether the applicant is qualified under the Act and the rules in this subchapter [ these sections ].

(b) The Borrower [ eligible borrower ] shall notify the Authority upon receipt of the loan proceeds indicating the amount received, date received, and the total amount of loan drawn to date in a manner provided by §28.4 of this chapter (relating to Communication with the Authority).

§ 28.15. Application Procedure for Lender.

A Lender [ lender ] must comply with the following procedures to obtain approval of an application for participation in the Program [ program ].

(1) A Lender [ lender ] must be an eligible lending institution, as defined by the Act, to participate in the Program [ program ].

(2) A Lender [ lender ] that is not an approved depository may obtain the appropriate designation by filing a state depository application with the Comptroller [ comptroller ].

(3) A Lender [ lender ] may obtain the application and information about the Program [ program ] from the Authority.

(4) A Lender [ lender ] shall determine the applicant's creditworthiness according to the Lender's [ lender's ] underwriting criteria.

(5) A loan, while under the Program [ program ], shall be set at a rate of interest established according to the prescribed linked deposit formula under the Act. The linked deposit rate will be recalculated at the end of the fiscal biennium. The Borrower's [ eligible borrower's ] loan rate shall not exceed the maximum rate permitted under the Act [ linked deposit rate plus 4.0% ].

(6) A Lender [ lender ] shall forward the original completed and approved application to the Authority pursuant to instructions in the solicitation document.

(7) A Lender [ lender ] shall estimate the proposed rate of interest to be charged the Borrower [ eligible borrower ]. The Lender [ lender ] must certify via telephone , email, or other approved communication with the Comptroller [ comptroller ] at the time the loan is priced the actual rate of interest before issuance of the linked deposit. A copy of the certification of the Borrower's [ eligible borrower's ] loan rate shall be sent to the Authority or the Administrator [ administrator ], as part of the compliance report. In no event shall the actual rate of interest exceed the maximum rate of interest allowable under the Act.

(8) In no instance will the linked deposit be wired to the Lender [ lender ] until the loan proceeds have been paid to the Borrower [ eligible borrower ]. In most cases, the entire approved linked deposit amount will be placed as a linked deposit with the applicable Lender [ lender ], except for linked deposits greater than $100,000 which are subject to incremental funding commensurate with principal drawdown.

(9) A Lender [ lender ] shall submit the compliance report to the Authority within seven days after the loan is funded.

(10) A Lender [ lender ] shall notify the Authority in writing immediately upon a default and/or in the case of a prepayment or a principal reduction greater than $10,000 [ $5,000 ] in any one calendar quarter of a loan under the Program [ program ].

(11) A Lender [ lender ] shall comply with all terms and agreements set forth in the state depository handbook, state depository application, the linked deposit application, and any other agreements and representations made to the Authority and the Comptroller [ comptroller ], and all other terms and conditions of the loan, these rules and the Act.

§ 28.16. Procedure for Review.

(a) Upon receipt of the application, staff shall review the application and determine:

(1) the current availability of funds under the Program [ program ];

(2) (No change.)

(3) the eligibility of the applicant and the Lender [ lender ];

(4) - (5) (No change.)

(b) The staff shall notify the Lender [ lender ] of any deficiencies in the application within ten business days after receipt of the application. The applicant and the Lender [ lender ] may amend the application to comply with the Authority's comments or withdraw the application.

(c) The Board [ board ] will approve or deny any and all applications under this subchapter [ chapter ], provided that the Board [ board ] may delegate such authority to the Commissioner [ commissioner ] and/or the Deputy Commissioner [ deputy commissioner ].

(d) The staff shall retain a copy of the application and forward a duplicate copy of the application with the Authority's recommendation to the Comptroller [ comptroller ].

§ 28.17. Acceptance and Rejection Procedures.

(a) The Comptroller [ comptroller ] shall review completed applications from the Authority and notify the Authority of their decision to accept or deny the application.

(b) The Authority will notify the Lender [ lender ] if the application has been accepted or denied.

(c) The Comptroller [ comptroller ] will inform the Lender [ lender ] of the amount of the required collateralization of the linked deposit. The Authority will forward written notice that the Lender [ lender ] has requested funding to the Comptroller [ comptroller ]. The Comptroller [ comptroller ] will wire the linked deposit to the Lender [ lender ] in immediately available funds the same day, provided written notice of funding of the loan is received by 9:00 a.m. The Comptroller [ comptroller ] will then provide the Authority confirmation of the linked deposit.

(d) The Comptroller [ comptroller ] shall determine the terms and conditions of the linked deposit once the maturity date is established (it cannot be set beyond the end of the biennium in which the linked deposit is placed), the applicable interest rate for the linked deposit can be determined by referring to the United States Treasury bill or note section of the current issue of the Wall Street Journal corresponding with the day the loan is priced. The maturity date is matched to the closest treasury bill maturity. If longer than a year, it is matched to the treasury note with the maturity closest to the linked deposit maturity. In the case of a multiple maturity listing, the maturity with the lowest yield to arrive at the linked deposit rate should be used.

(e) An applicant may reapply for participation in the Program [ program ] after rejection of an application if the application complies with the standards set forth in this subchapter [ chapter ] and under the Act.

(f) A Lender [ lender ] shall terminate the linked deposit if the loan is prepaid. Quarterly principal reductions of $1,000 or more will result in a corresponding reduction of the linked deposit in a like amount (rounded to the nearest thousand dollars ) at the end of each quarter ending in November, February, May, and August. Upon completion of the quarterly review by the Comptroller [ comptroller ] and the Authority, the linked deposit will be adjusted to the outstanding principal balance rounded to the nearest thousand dollars.

(g) If a Lender [ lender ] ceases to be a state depository, the Comptroller [ comptroller ] shall withdraw the linked deposits. If the Lender [ lender ], which has a linked deposit, is purchased by another lending institution, the linked deposit will be reissued to the purchasing institution. Should the linked deposit loan not be obtained by the purchasing institution, then the linked deposit will be returned to the Comptroller [ comptroller ]. The Authority and the Comptroller [ comptroller ] will allow the Borrower [ eligible borrower ] 90 days to place the loan with another Lender [ lender ].

(h) A late payment on a loan by a Borrower [ an eligible borrower ] does not affect the validity of the linked deposit through the period of the fiscal biennium. Should a Borrower [ an eligible borrower ] default on a loan and the Lender [ lender ] proceed with collection by foreclosure, the linked deposit must be returned to the Comptroller [ comptroller ].

§ 28.18. Use of Loan Proceeds.

(a) Loan proceeds under the Program [ program ] may be used for any agriculture-related operating expense, including the purchase or lease of land or fixed asset acquisition or improvement, or for any enterprise based on agriculture as identified in the application, but a loan under this Program [ program ] may be applied to existing debt only when required by the Lender [ lender ] to finance the expansion of an eligible project.

(b) An applicant or Lender [ lender ] may request the Authority to provide a preliminary determination if the anticipated use of the proceeds is a qualified use of proceeds.

(c) Any use of loan proceeds that do not comply with these rules or any misrepresentations made to the Authority shall be a basis for default. The Lender [ lender ] shall include a provision in the loan that declares a default and requires acceleration of the loan where the applicant uses the proceeds in any manner that would violate the provisions of the Act, these rules or the loan.

§ 28.19. Program Limitations.

In addition to the limitations already set forth in these rules, the following limitations apply : [ . ]

(1) (No change.)

(2) The maximum amount of a loan under this Program [ program ] is $500,000.

(3) All linked deposits placed under this Program [ program ] shall expire upon expiration of the biennium; however, subject to legislative authorization and approval by the Authority and the Comptroller [ comptroller ], linked deposits that expired as a result of the expiration of the biennium may be renewed.

(4) The State [ state ] shall not be liable for any failure to comply with the terms and conditions of the loan, or any failure to make any payments or any other losses or expenses that occur directly or indirectly from the Program [ program ].

(5) An applicant may have more than one application and linked deposit loan with the Program [ program ] provided that the total applications and total linked deposits approved do not exceed $500,000.

(6) A person shall not receive approval of an application if a previous loan under the Program [ program ] is in default.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on November 21, 2025.

TRD-202504297

Susan Maldonado

General Counsel

Texas Department of Agriculture

Earliest possible date of adoption: January 4, 2026

For further information, please call: (512) 463-6591

SUBCHAPTER C. AGRICULTURAL LOAN GUARANTEE PROGRAM

The rule amendments are proposed pursuant to Section 12.016 of the Texas Agriculture Code (Code), which authorizes the Department to adopt rules as necessary for the administration of its powers and duties under the Code, and Sections 58.022(1) and 58.023 of the Code, which further authorizes the Authority to adopt and enforce bylaws, rules, and procedures in order to carry out its functions under Chapter 58.

The statutory provisions affected by this proposal are those within Texas Agriculture Code, Chapter 58.

§ 28.20. Authority.

The [ Texas Agricultural Finance ] Authority is authorized by Chapter 58 of the Code, Subchapter E, §§58.051 - 58.056 to establish the Agricultural Loan Guarantee Program.

§ 28.23. Definitions.

In addition to the definitions set forth [ out ] in [ the ] Texas Agriculture Code, §58.002 [ Chapter 58 ], as amended, and §28.2 [ in subchapter A ] of this chapter (relating to Definitions [ Financial Assistance Rules ]), the following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.

(1) - (5) (No change.)

§ 28.24. Applicant Requirements.

A lender may submit an application on behalf of an applicant if the applicant meets the following requirements:

(1) if an individual, the applicant is a United States citizen and a resident of the State [ of Texas ], or an entity in good standing and legally authorized to conduct business in the State [ of Texas ];

(2) provides evidence that the applicant's farm, ranch, or agriculture-related business is or will be located within the State [ state ]; and

(3) (No change.)

§ 28.25. Project Costs.

(a) Eligible costs. Financing received under this Program [ program ] may be used to provide working capital for operating a farm, ranch, or agriculture-related business, including: the lease of facilities, the purchase of machinery and equipment, or for any other agriculture-related business purpose, including the purchase of real estate, as defined in the plan.

(b) Ineligible costs. Use of financing received under this Program for any costs other than those identified in the plan shall be considered ineligible costs. A loan guarantee is voidable by the Board [ board ] or the Commissioner [ commissioner ] if the borrower uses loan proceeds for any costs not identified in the plan.

§ 28.26. Consideration of Applications.

(a) - (c) (No change.)

(d) Board or Commissioner [ commissioner ] review. The staff shall submit a credit memorandum to the Board [ board ] which shall include a recommendation for approval or denial for each qualified application received by the Program [ program ]. The Board [ board ] shall approve or deny each qualified application. The Board [ board ] may impose additional terms and conditions as part of its approval. The Board [ board ] may delegate to the Commissioner [ commissioner ] or Deputy Commissioner [ deputy commissioner ] the authority to take any and all action described in this subsection.

(e) (No change.)

(f) Denial of application. If the application is denied, staff will notify the lender in writing, identifying the reasons for denial. Applicants who have been denied may re-apply to the Program [ program ].

(g) Providing false information. An applicant who knowingly provides false information in an application shall be disqualified from obtaining a loan guarantee under the Program [ program ] and shall be liable to the Authority and the department for any expense incurred by the Authority or the department as a result of the falsity. If the falsity is discovered after approval of a loan guarantee, the falsity may constitute grounds for revocation of the guarantee, and the Authority shall be entitled to exercise all its rights under the loan documents.

(h) Reporting to the Board [ board ]. Staff shall report to the Board [ board ] at each Board [ board ] meeting the status of loans of the Authority and any applications approved by the Commissioner [ commissioner ] under the Program [ program ] since the last meeting of the Board [ board ].

§ 28.27. Contents of the Application.

The applicant must present to the lender the information necessary to determine if the applicant is eligible and qualified to receive a loan guarantee under the Program [ program ]. Such information will include the following:

(1) the application checklist form for the Program [ program ] provided by the Authority;

(2) - (4) (No change.)

§ 28.28. Application Process.

(a) A qualified application will be considered by the board at the first available meeting of the Authority or by the Commissioner [ commissioner ] when the staff has had sufficient time to complete its review of the qualified application.

(b) - (d) (No change.)

§ 28.29. General Terms and Conditions of the Authority's Financial Commitment.

(a) Maximum amount of loan guarantee. A guarantee shall not exceed:

(1) $1,000,000 [ $750,000 ] or 70% of the loan amount, whichever is less;

(2) $750,000 [ $500,000 ] or 80% of the loan amount, whichever is less;

(3) $500,000 [ $250,000 ] or 90% of the loan amount, whichever is less.

(c) [ (b) ] Program limit. The amount that may be used to guarantee loans under this subchapter may not exceed three times the amount contained in the Fund [ Texas agricultural fund ], calculated on an annual basis as of September 30 each year.

(d) [ (c) ] Security. Financial commitments approved under this Program [ program ] must be secured by a first lien on collateral of a type and value which, when considered with other criteria, in the judgment of the Board [ board ] or the Commissioner [ commissioner ] affords reasonable assurance of repayment of the loan.

(e) [ (d) ] Closing of the loan. The Commissioner [ commissioner ] or a designee may attend the verification and signing of closing documents at the time, date, and location determined by the commercial lender.

(f) [ (e) ] Closing costs. All closing costs associated with the closing of an approved loan, including the Authority's review of the closing documents by independent legal counsel, may be charged to the borrower.

(g) [ (f) ] Co-participation. An applicant or eligible borrower may seek co-participation in financial assistance from other private and governmental sources. In any event, the Authority's maximum guarantee for any loan may not exceed the loan guarantee limits, with the lender(s) remaining at risk for at least 10% of the loan.

(h) [ (g) ] Duration of Guarantee. The duration of the loan guarantee approved by the Authority must not exceed the lesser of the useful life of the assets being financed or 10 years.

(i) [ (h) ] Interest rate. The interest rate on the guaranteed loan (not including guarantee fees) shall be the rate charged by the lender and approved by the Authority. To be eligible for a guarantee under the Program [ program ], a loan with a term of more than one year must have a fixed interest rate.

§ 28.30. Reporting Requirements.

(a) - (b) (No change.)

(c) If necessary, the Authority may request other reports or documentation reasonably necessary for an assessment of the borrower's compliance with the Program [ program ].

§ 28.32. Criteria for Approval of Loan Guarantee.

(a) The Board [ board ] or the Commissioner [ commissioner ] shall consider the following factors in deciding whether to approve an application for a loan guarantee:

(1) - (5) (No change.)

(b) Eligibility of the lender. The lender originating a loan must have a continuing ability to evaluate, perform, and service the loan; to make the necessary reports as identified in the rules of the Program [ program ]; and to collect the loan, if requested by the Authority, upon default. The commercial lender must agree to exercise due diligence in the servicing, maintenance, review, and evaluation of performance without regard to the existence of the Authority's guarantee or any other limitation of risk. The Board [ board ] or the Commissioner [ commissioner ] reserves the right to decline a loan guarantee, or revoke a loan guarantee to a lender which does not present sufficient evidence that they have the capacity or interest to appropriately make and service the loan. The Board [ board ] may revoke or limit a loan guarantee if the lender fails to substantially comply with financial industry standards pertaining to reasonably prudent administration, origination, servicing, or underwriting of loans, or if the lender fails to comply with all obligations required under agreements with the Authority.

(c) The Authority has adopted a Credit Policy and Procedures document , which contains additional guidelines used by the Authority in the loan guarantee review and approval process. The Credit Policy and Procedure document may be obtained from the Texas Agricultural Finance Authority, Texas Department of Agriculture, P.O. Box 12847, Austin, Texas 78711.

§ 28.35. Loan Guarantee Administration.

(a) Except as otherwise provided by state law, by these rules, or by resolution of the Board [ board ], the staff, with the approval of the Commissioner [ commissioner ], the Deputy Commissioner [ deputy commissioner of agriculture ], or an [ the ] official of the Department designated by the Commissioner [ commissioner of agriculture as being responsible for the department's agricultural finance programs, ] shall have the authority to act on behalf of the Authority, without specific Board [ board ] approval, in regard to the ongoing servicing, collection, settlement, and enforcement of each and every loan guaranteed by the Authority under the Program [ program ]. Such authority shall include, without limitation, the actions required to be taken by the Authority under any loan agreement, and any other agreement entered into by the Authority concerning a loan guaranteed by the Authority under the Program [ program ].

(b) Nothing in this section shall prevent the staff or the Commissioner [ commissioner ], the Deputy Commissioner [ deputy commissioner ], or the official of the Department designated by the Commissioner [ commissioner of agriculture ] from submitting any matter to the Board [ board ] for its consideration and approval.

§ 28.36. Interest Rebate Requirements and Procedures.

(a) The Board [ board ] may independently establish a rate reduction (percent and amount) from time to time in its sole discretion to be eligible in the form of a rebate to qualifying eligible borrowers; however, in any one calendar year, the rate reduction per eligible borrower shall not exceed the amount described in Section 58.052(e) [ three percentage points or a maximum amount of $10,000 ].

(b) (No change.)

(c) The eligible borrower and lender must agree to all the criteria for the Program [ program ] found in this subchapter.

(d) - (h) (No change.)

§ 28.37. Certified Lender Program.

(a) (No change.)

(b) A lender is eligible to participate as a certified lender under the Authority's Agricultural Loan Guarantee program if it has maintained a Master Lender Agreement in place with Authority and has had no defaults under any loans guaranteed by the Authority under the Program [ its Agricultural Loan Guarantee program ].

(c) - (d) (No change.)

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on November 21, 2025.

TRD-202504298

Susan Maldonado

General Counsel

Texas Department of Agriculture

Earliest possible date of adoption: January 4, 2026

For further information, please call: 512-463-6591

SUBCHAPTER D. YOUNG FARMER INTEREST RATE REDUCTION PROGRAM RULES

The rule amendments are proposed pursuant to Section 12.016 of the Texas Agriculture Code (Code), which authorizes the Department to adopt rules as necessary for the administration of its powers and duties under the Code, and Sections 58.022(1) and 58.023 of the Code, which further authorizes the Authority to adopt and enforce bylaws, rules, and procedures in order to carry out its functions under Chapter 58.

The statutory provisions affected by this proposal are those within Texas Agriculture Code, Chapter 58.

§ 28.40. Authority.

The Authority is authorized by Chapter 58 of the Code, Subchapter F, §§58.071 - 58.075 to promulgate rules and procedures to establish the [ Young ] Farmer Interest Rate Reduction Program.

§ 28.41. Purpose.

The purpose of the [ Young ] Farmer Interest Rate Reduction Program is to encourage private commercial loans and provide an economic benefit to [ young ] farmers for the purpose of creating or expanding an agricultural business in this state. These sections are adopted to provide standards of eligibility and procedures for participating in the interest rate reduction provided under the Act.

§ 28.42. Definitions.

In addition to the definitions set forth [ out ] in Texas Agriculture Code, §58.002 [ Chapter 58 ], as amended, and §28.2 [ in subchapter A ] of this chapter (relating to Definitions [ Financial Assistance Rules ]), the following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.

(1) (No change.)

(2) [ Eligible borrower--A person that is 18 years of age or older but younger than 46 years of age at the time of submitting a loan application and who is approved for participation in the program. ]

[(3)] Lender--A lending institution, as defined in Texas Agriculture Code, §58.002(8), which also includes institution of the Farm Credit System.

(3) Linked deposit--A time deposit governed by a written deposit agreement between the State [ state ] and the lender that provides that:

(A) (No change.)

(B) the State [ state ] does not withdraw any part of the deposit before the expiration of a period set by a written advance notice of the intention to withdraw; and

(C) the lender agrees to lend the value of the deposit to an eligible borrower at a rate not to exceed the linked deposit rate plus 1% [ 4% ].

(4) Program--The [ Young ] Farmer Interest Rate Reduction Program.

§ 28.43. Application Procedure for Applicant.

(a) An applicant must comply with the following procedures to obtain approval of the application for participation in the Program [ program ]. An applicant shall submit a complete and accurate loan application and any required credit documentation to the lender and an applicant shall supply all required documentation that the Authority requires to determine whether the applicant is qualified under the Act and this subchapter [ these sections ].

(b) (No change.)

§ 28.44. Application Procedure for Lender,

A lender must comply with the following procedures to obtain approval of an application for participation in the Program [ program ].

(1) A lender must be an eligible lending institution, as defined by the Act, to participate in the Program [ program ].

(2) A lender that is not an approved depository may obtain the appropriate designation by filing a state depository application with the Comptroller [ comptroller ].

(3) - (4) (No change.)

(5) A loan, while under the Program [ program ], shall be set at a rate of interest established according to the prescribed linked deposit formula under the Act. The linked deposit rate will be recalculated at the end of the fiscal biennium. The eligible borrower's loan rate shall not exceed the maximum rate permitted under the Act [ the linked deposit rate plus 4.0% ].

(6) (No change.)

(7) A lender shall estimate the proposed rate of interest to be charged the eligible borrower. The lender must certify via telephone , email, or other approved communication with the Comptroller [ comptroller ] at the time the loan is priced the actual rate of interest before issuance of the linked deposit. A copy of the certification of the eligible borrower's loan rate shall be sent to the Authority or the Administrator, as part of the compliance report. In no event shall the actual rate of interest exceed the maximum rate of interest allowable under the Act.

(8) - (9) (No change.)

(10) A lender shall notify the Authority in writing immediately upon a default and/or in the case of a prepayment or a principal reduction greater than $10,000 [ $5,000 ] in any one calendar quarter of a loan under the Program [ program ].

(11) A lender shall comply with all terms and agreements set forth in the state depository handbook, state depository application, the linked deposit application, and any other agreements and representations made to the Authority and the Comptroller [ comptroller ], and all other terms and conditions of the loan, these rules, and the Act.

§ 28.45. Procedure for Review.

(a) Upon receipt of the application, staff shall review the application and determine:

(1) the current availability of funds under the Program [ program ];

(2) - (5) (No change.)

(b) (No change.)

(c) The Board [ board ] will approve or deny any and all applications under this chapter, provided that the Board [ board ] may delegate such authority to the Commissioner [ commissioner ] and/or the Deputy Commissioner [ deputy commissioner ].

(d) The staff shall retain a copy of the application and forward a duplicate copy of the application with the Authority's recommendation to the Comptroller [ comptroller ].

§ 28.46. Acceptance and Rejection Procedures.

(a) The Comptroller [ comptroller ] shall review completed applications from the Authority and notify the Authority of their decision to accept or deny the application.

(b) (No change.)

(c) The Comptroller [ comptroller ] will inform the lender of the amount of the required collateralization of the linked deposit. The Authority will forward written notice that the lender has requested funding to the Comptroller [ comptroller ]. The Comptroller [ comptroller ] will wire the linked deposit to the lender in immediately available funds the same day, provided written notice of funding of the loan is received by 9:00 a.m. The Comptroller [ comptroller ] will then provide the Authority confirmation of the linked deposit.

(d) The Comptroller [ comptroller ] shall determine the terms and conditions of the linked deposit once the maturity date is established (it cannot be set beyond the end of the biennium in which the linked deposit is placed), the applicable interest rate for the linked deposit can be determined by referring to the United States Treasury [ treasury ] bill or note section of the current issue of the Wall Street Journal corresponding with the day the loan is priced. The maturity date is matched to the closest treasury bill maturity. If longer than a year, it is matched to the treasury note with the maturity closest to the linked deposit maturity. In the case of a multiple maturity listing, the maturity with the lowest yield to arrive at the linked deposit rate should be used.

(e) An applicant may reapply for participation in the program after rejection of an application if the application complies with the standards set forth in this subchapter [ these sections ] and under the Act.

(f) (No change.)

(g) If a lender ceases to be a state depository, the Comptroller [ comptroller ] shall withdraw the linked deposits. If the lender, which has a linked deposit, is purchased by another lending institution, the linked deposit will be reissued to the purchasing institution. Should the linked deposit loan not be obtained by the purchasing institution, then the linked deposit will be returned to the Comptroller [ comptroller ]. The Authority and the Comptroller [ comptroller ] will allow the borrower 90 days to place the loan with another lender.

(h) A late payment on a loan by an eligible borrower does not affect the validity of the linked deposit through the period of the fiscal biennium. Should an eligible borrower default on a loan and the lender proceed with collection by foreclosure, the linked deposit must be returned to the Comptroller [ comptroller ].

§ 28.47. Use of Loan Proceeds.

(a) Loan proceeds under the Program [ program ] may be used for any agriculture-related operating expense, including the purchase or lease of land or fixed asset acquisition or improvement, or for any enterprise based on agriculture as identified in the application, but a loan under this program may be applied to existing debt only when required by the lender to finance the expansion of an eligible project.

(b) - (c) (No change.)

§ 28.48. Program Limitations.

In addition to the limitations already set forth in these rules, the following limitations apply.

(1) Not more than that amount from the fund as determined by the Board [ board ] may be placed concurrently in linked deposits under the Act.

(2) The maximum amount of a loan under this Program [ program ] is $1 million [ $500,000 ].

(3) All linked deposits placed under this Program shall expire upon expiration of the biennium; however, subject to legislative authorization and approval by the Authority and the Comptroller [ comptroller ], linked deposits that expired as a result of the expiration of the biennium may be renewed.

(4) The State [ state ] shall not be liable for any failure to comply with the terms and conditions of the loan, or any failure to make any payments or any other losses or expenses that occur directly or indirectly from the program.

(5) An applicant may have more than one application and linked deposit loan with the Program [ program ] provided that the total applications and total linked deposits approved do not exceed $1 million [ $500,000 ].

(6) A person shall not receive approval of an application if a previous loan under the Program [ program ] is in default.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on November 21, 2025.

TRD-202504299

Susan Maldonado

General Counsel

Texas Department of Agriculture

Earliest possible date of adoption: January 4, 2026

For further information, please call: (512) 463-6591

SUBCHAPTER E. YOUNG FARMER GRANT PROGRAM RULES

The rule amendments and new rules are proposed pursuant to Section 12.016 of the Texas Agriculture Code (Code), which authorizes the Department to adopt rules as necessary for the administration of its powers and duties under the Code, and Sections 58.022(1) and 58.023 of the Code, which further authorizes the Authority to adopt and enforce bylaws, rules, and procedures in order to carry out its functions under Chapter 58.

The statutory provisions affected by this proposal are those within Texas Agriculture Code, Chapter 58.

§ 28.50. Purpose.

The purpose of the program is to provide financial assistance in the form of [ matching ] grant funds to maintain agricultural businesses, maintain agricultural uses of land, or foster supply chain resiliency or create [ young farmers for the purpose of creating ] or expand [ expanding ] an agricultural business in this state. These sections are adopted to provide standards of eligibility and procedures for the grant program.

§ 28.51. Authority.

The [ Texas Agricultural Finance ] Authority is authorized by Chapter 58 of the Code, Subchapter G, §§58.091- 58.095 to promulgate rules and procedures to establish the Agriculture [ Young Farmer ] Grant Program.

§ 28.52. Definitions.

In addition to the definitions set forth in Texas Agriculture Code, §58.002, as amended, and §28.2 of this chapter (relating to Definitions), the [ The ] following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.

(1) (No change.)

(2) Grantee--A person or business awarded funds under this subchapter.

(3) [ (4) ] Program--The Agriculture [ Young Farmer ] Grant Program as authorized by Subchapter G of the Texas Agriculture Code.

§ 28.53. Eligibility.

A person is eligible to receive an Agriculture [ a Young Farmer ] Grant if:

(1) [ (2) ] the applicant is or will be involved in maintaining, creating or expanding an agricultural business , maintaining agriculture uses of land, or fostering supply chain resiliency in this state;

(2) [ (3) ] the applicant agrees to provide matching fund documentation; and

(3) [ (4) ] the applicant agrees to use funds for the purpose of maintaining, [ either ] creating or expanding an agricultural business , maintaining agriculture uses of land, or fostering supply chain resiliency in this state.

§ 28.54. Use of Grant Award.

Funds received under this subchapter may only be used for approved activities related to [ creating or expanding ] an agricultural business in Texas.

§ 28.55. Administration of Program.

(a) (No change.)

(c) [ (b) ] The Board shall adopt selection criteria for the Program. The Board shall approve a form for use as the Program's grant application which shall indicate required information. The request for grant applications shall also state the selection criteria, due date, and estimated award date.

(d) [ (c) ] The Board shall determine grant cycles [ set two periods ] during each fiscal year in which the Authority will receive and approve grant applications. Notice of these grant periods will be posted on the Department's [ department's ] website.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on November 21, 2025.

TRD-202504300

Susan Maldonado

General Counsel

Texas Department of Agriculture

Earliest possible date of adoption: January 4, 2026

For further information, please call: (512) 463-6591

SUBCHAPTER F. RULES FOR DEPOSITION AND REFUND OF ASSESSMENT FEES

The rule amendments are proposed pursuant to Section 12.016 of the Texas Agriculture Code (Code), which authorizes the Department to adopt rules as necessary for the administration of its powers and duties under the Code, and Sections 58.022(1) and 58.023 of the Code, which further authorizes the Authority to adopt and enforce bylaws, rules, and procedures in order to carry out its functions under Chapter 58.

The statutory provisions affected by this proposal are those within Texas Agriculture Code, Chapter 58.

§ 28.60. Purpose and Application of Rules.

The purpose of this subchapter is to provide for the administration of the collection of assessments by county tax assessor-collectors as provided for in §502.404 of the Texas Transportation Code; and to provide for the remittance of such assessments to the comptroller for deposit in the Fund [ Texas agricultural fund ].

§ 28.61. Definitions.

In addition to the definitions set forth in Texas Agriculture Code, §58.002, as amended, and §28.2 of this chapter (relating to Definitions), the [ The ] following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.

(1) Assessment--A voluntary fee paid on each commercial motor vehicle registered under the Texas Transportation Code, §502.404.

(2) (No change.)

§ 28.62. Collection of Funds by County Tax Assessor-Collector and Remittance to Comptroller.

(a) Each county tax assessor-collector shall collect the voluntary assessment required by the Texas Transportation Code, §502.404.

(b) Each county tax assessor-collector shall provide notice of the refund procedures defined in §28.63 of this subchapter [ chapter ] (relating to Refunding of Assessment) to persons paying an assessment at the time of payment.

(c) The assessments collected shall be remitted by each county tax assessor-collector to the Comptroller [ comptroller ], by way of the Authority, on a monthly basis due on or before the 15th of the following month.

(d) The assessments collected shall be remitted by check made payable to the "Texas Agricultural Finance Authority . " [ . ] The remittance shall be mailed to the Authority at the post office box designated on the Remittance Advice form, and shall be deemed paid when deposited by the Comptroller [ comptroller ] in the Fund [ Texas agricultural fund ].

(e) The assessments shall be sent with two completed forms provided by the Authority: the Remittance Advice form [ ; ] and the Detailed Report of Collections form.

§ 28.63. Refunding of Assessment.

(a) (No change.)

(b) The staff shall process the refund request. If all prerequisites have been met for payment of the refund, staff shall then forward to the Comptroller [ comptroller ] a voucher requesting payment of the refund. Upon receipt of the voucher, the Comptroller [ comptroller ] shall refund the assessment for which a request for refund is made.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on November 21, 2025.

TRD-202504303

Susan Maldonado

General Counsel

Texas Department of Agriculture

Earliest possible date of adoption: January 4, 2026

For further information, please call: (512) 463-6591

SUBCHAPTER G. RURAL ECONOMIC DEVELOPMENT FINANCE PROGRAM

The rule amendments are proposed pursuant to Section 12.016 of the Texas Agriculture Code (Code), which authorizes the Department to adopt rules as necessary for the administration of its powers and duties under the Code, and Sections 58.022(1) and 58.023 of the Code, which further authorizes the Authority to adopt and enforce bylaws, rules, and procedures in order to carry out its functions under Chapter 58.

The statutory provisions affected by this proposal are those within Texas Agriculture Code, Chapter 58.

§ 28.70. Authority.

The [ Texas Agricultural Finance ] Authority [ (the Authority) ] is authorized by §58.021 of the Texas Agriculture Code and by Article III, §49-f(g) of the Texas Constitution to design and implement programs to provide financial assistance to eligible agricultural businesses and other rural agriculture-related economic development projects and to issue general obligation bonds in the maximum principal amount of $200 million outstanding at any one time for such programs. The proceeds of such bonds are required to be deposited in the [ Texas Agricultural ] Fund and may be used for the purposes provided by Article III, §49-i of the Texas Constitution and for other rural agriculture-related economic development programs. Proceeds of the bonds are to be administered in the same manner that proceeds of bonds issued under Article III, §49-i of the Texas Constitution are administered. Section 58.041 of the Texas Agriculture Code grants Texas Public Finance Authority the exclusive authority to act on behalf of the Authority in issuing debt instruments authorized to be issued by the Authority.

§ 28.71. Purpose.

The purpose of the Rural Agriculture Economic Development Finance Program (Program) is to provide financial assistance to eligible entities including agricultural businesses and other rural agriculture-related economic development projects. It is the policy of the board [ Board of Directors of the Authority ] to provide programs for providing financial assistance to eligible entities that the board considers to present a reasonable risk and have a sufficient likelihood of repayment. This subchapter establishes standards of eligibility and the application procedures for the Program.

§ 28.72. Definitions.

In addition to the definitions set forth in Texas Agriculture Code, §58.002 , as amended, and §28.2 of this chapter (relating to Definitions), the following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.

(1) Applicant--Any entity meeting the eligibility requirements in §28.75(a) of this subchapter (relating to Applicant and Minimum Project Eligibility Requirements), [ recognized by state law to conduct business in the state of Texas including for-profit and non-profit entities, political subdivision, or economic development corporation ] submitting an application with the Authority for [ a ] financial assistance under this subchapter.

(2) Commitment--Any form of financial assistance provided to an applicant as approved by the Board [ board ], including, but not limited to, a guaranty, a direct loan, a participation commitment, an anticipation note, or a conduit issuance for an [ a political subdivision or any other ] eligible entity as defined by this subchapter.

(3) [ (4) ] Eligible application--A completed application, including all application fees, documents, and information required by the Authority and submitted by the lender or applicant for a project, that is consistent with the purpose of agricultural and rural agriculture-related economic development and meets the terms and benchmarks defined by the Authority's Credit Policy and Procedures. The Department, the Authority, or the Administrator [ Authority's representative ] will review the application and issue an approval or denial.

(4) [ (5) ] For-profit entity--An organization that is registered in the State [ state of Texas ] and has a principal place of business in the State [ Texas ], which operates with the intention of making a profit or whose efforts are made to obtain a profit.

(5) [ (6) ] Interest rate--The interest rate approved by the Authority for an approved commitment.

(6) [ (7) ] Lender--A lending institution, including a bank, trust company, banking association, savings bank, mortgage company, investment banker, credit union, Community Development Financial Institution, or any affiliate of those entities, and any other financial institution that customarily provides financing for agricultural businesses or rural economic development loans, or any affiliate of such institution that has sought and received approval to participate in the Program .

(7) [ (8) ] Non-profit entity--A local, community or regional organization that was formed and conducts its affairs to benefit the public or to assist other individuals, groups or causes, and can demonstrate its non-profit status by providing one of the following:

(A) - (B) (No change.)

(C) Documentation of its status as an educational institution recognized by the State [ of Texas ].

(8) [ (9) ] Political subdivision--A county, municipality, special district, school district, junior college district, housing authority, or other political subdivision of this state as defined by Chapter 172 of the Local Government Code , or a nonprofit corporation acting for or on behalf of any such entity .

(9) [ (10) ] Program--Rural Agriculture Economic Development Finance Program.

(10) [ (11) ] Project--An enterprise or project, which would further agricultural business or [ the ] rural agriculture-related economic development [ of a rural area ].

(11) [ (12) ] Recipient--an entity approved by the Authority or its designee to receive a commitment outlined in this subchapter.

§ 28.74. Agriculture-Related [ Agriculture and Community ] Economic Development Loan.

(a) Purpose. The purpose of the Agriculture-Related [ Agriculture and Community ] Economic Development Loan is to provide financial assistance to Texas-based , agricultural-related [ private entities ] with projects located in rural areas via an approved participating lender.

(b) Eligible Entities. An eligible agricultural business, a political subdivision or other [ A private ] for-profit or non-profit entity authorized to do business in the State [ state of Texas ], significantly impacting the agricultural industry and/or furthering rural agriculture-related economic development in Texas may apply for loan funds under this section.

(c) Use of Funds. Loans may be used for real estate purchases, building construction, site improvements, equipment, and any other uses that can be identified to positively impact the agricultural industry and/or improve or assist in the agriculture-related economic development of the rural area.

(d) - (e) (No change.)

§ 28.75. Applicant and Minimum Project Eligibility Requirements.

(a) (No change.)

(1) The applicant is an eligible agricultural business, a political subdivision or a legal for-profit or non-profit entity under the laws of the United States of America and the State [ of Texas ];

(2) The applicant has a principal place of business in the State [ state ];

(3) The applicant is an eligible entity pursuant to §28.74 [ §§28.73 or 28.74 ] of this subchapter (relating to the Agriculture-Related [ Texas Rural Community Loan and Agriculture and Community ] Economic Development Loan);

(4) - (6) (No change.)

(7) The applicant has complied with State [ state ] law and Authority rules; and

(8) The applicant meets the criteria and guidelines in the Authority's Credit Policy [ credit policy ].

(b) Project. The project is an eligible project if it provides significant benefits to agricultural business [ development ] and/or rural agriculture-related economic development and is not considered an ineligible commitment as defined by §28.86 of this subchapter (relating to Prohibited Commitments).

(c) - (d) (No change.)

§ 28.76. Application Filing Requirements and Application Review Processes.

(a) (No change.)

(b) Submission of a qualified application. Applicants are required to submit the application material to [ Department ] staff for presentation to the board.

(c) - (f) (No change.)

(g) Reporting to the Board [ board ]. Staff shall report to the board at each board meeting the status of all outstanding loans.

§ 28.77. Evaluation Criteria.

In evaluating applications for financial assistance under this subchapter, the Board [ board ] and staff shall consider at minimum:

(1) The anticipated benefits arising from the financial assistance to the applicant, including both the potential impact on agricultural development and rural agriculture-related economic development;

(2)- (7) (No change.)

§ 28.78. Contents of Eligible Application.

Required information. The eligible application must set forth the information necessary for the determination to provide a commitment by the Authority or the Authority's designee and will include all that is outlined and required in the application and at minimum:

(1) - (4) (No change.)

(5) Detailed statement of project benefit and/or agriculture-related economic impact;

(6) Articles of incorporation and bylaws, or other founding documents, certificate of good standing with the secretary of state of the State , or other instruments that establish or describe the legal operation or structure of the applicant and/or the benefitting business, if applicable; and

(7) (No change.)

§ 28.80. General Terms and Conditions of the Authority's Commitment.

(a) - (d) (No change.)

(e) Maturity. The maturity of the commitment may not exceed thirty years, or the useful life of the collateral, whichever is less. The maturity shall be negotiated between the Authority, applicant, and participating lender, if applicable. For commitments secured by revenues, [ including sales tax, ] the amortization period is determined by the Debt Service Coverage Ratio and with consideration given to prior volatility in revenue [ tax/revenue ] collections. Financing terms are set forth in the Credit Policy and Procedures.

(f) - (h) (No change.)

§ 28.83. Collateral Administration.

(a) Except as otherwise provided by state law, by these rules or by resolution of the board, the staff, with approval of the commissioner, the deputy commissioner, or an official of the Department designated by the commissioner, shall have the authority to act on behalf of the Authority, without specific board approval, in regard to the collection, settlement and enforcement of each and every commitment under the program. Such authority shall include, without limitation, the actions required to be taken by the Authority under any loan agreement, any participation agreement and any other agreement entered into by the Authority concerning commitments provided by the Authority.

(b) (No change.)

(c) Nothing in this section shall prevent the staff or the commissioner [ of agriculture ], the deputy commissioner [ of agriculture ], or an [ the ] official of the Department [ department ] designated by the commissioner [ of agriculture ] from submitting any matter to the board for its consideration and approval.

§ 28.86. Prohibited Commitments.

Prohibited commitments under the Rural Agriculture Economic Development Finance Program include the following:

(1) - (6) (No change.)

§ 28.87. Ineligible Persons.

The following persons or entities are ineligible to receive financial assistance under the Rural Agriculture Economic Development Finance Program:

(1) - (17) (No change.)

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on November 21, 2025.

TRD-202504304

Susan Maldonado

General Counsel

Texas Department of Agriculture

Earliest possible date of adoption: January 4, 2026

For further information, please call: (512) 463-6591

The repeal is proposed pursuant to Section 12.016 of the Texas Agriculture Code (Code), which authorizes the Department to adopt rules as necessary for the administration of its powers and duties under the Code, and Sections 58.022(1) and 58.023 of the Code, which further authorizes the Authority to adopt and enforce bylaws, rules, and procedures in order to carry out its functions under Chapter 58.

The statutory provisions affected by this proposal are those within Texas Agriculture Code, Chapter 58.

§ 28.73. Texas Rural Community Loan.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on November 21, 2025.

TRD-202504305

Susan Maldonado

General Counsel

Texas Department of Agriculture

Earliest possible date of adoption: January 4, 2026

For further information, please call: (512) 463-6591

SUBCHAPTER H. PEST AND DISEASE CONTROL AND DEPREDATION PROGRAM

The new rules are proposed pursuant to Section 12.016 of the Texas Agriculture Code (Code), which authorizes the Department to adopt rules as necessary for the administration of its powers and duties under the Code, and Sections 58.022(1) and 58.023 of the Code, which further authorizes the Authority to adopt and enforce bylaws, rules, and procedures in order to carry out its functions under Chapter 58.

The statutory provisions affected by this proposal are those within Texas Agriculture Code, Chapter 58.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on November 21, 2025.

TRD-202504307

Susan Maldonado

General Counsel

Texas Department of Agriculture

Earliest possible date of adoption: January 4, 2026

For further information, please call: (512) 463-6591

PART 2. TEXAS ANIMAL HEALTH COMMISSION

CHAPTER 51. ENTRY REQUIREMENTS

The Texas Animal Health Commission (Commission) proposes amendments to Title 4, Texas Administrative Code, Chapter 51 titled "Entry Requirements." Specifically, the Commission proposes amendments to §51.1 regarding Definitions.

BACKGROUND AND PURPOSE

The Texas Animal Health Commission proposes amendments to §51.1, concerning Definitions. The purpose of the amendments is to clarify requirements for dairy cattle and dairy crosses entering the state.

Commission rules set forth testing requirements for cattle entering the state. Specific tuberculosis testing requirements apply for dairy cattle. Commission staff responsible for permitting movement has noticed confusion surrounding the definition of dairy cattle and whether certain dairy crosses must be tested prior to entry.

Currently, Commission rules do not define dairy cattle. Staff relies on the USDA's definition when applying and explaining Commission rules. The USDA's definition states that all cattle, regardless of age or sex or current use, that are of a breed(s) or offspring of a breed used to produce milk or other dairy products for human consumption, including, but not limited to, Ayrshire, Brown Swiss, Holstein, Jersey, Guernsey, Milking Shorthorn, and Red and Whites.

The proposed amendments would incorporate the USDA's definition into Commission rules to clarify the meaning of dairy cattle and ease confusion as to what testing requirements must be met prior to entry.

SECTION-BY-SECTION DISCUSSION

Section 51.1 includes definitions. The proposed amendments add a definition for "dairy cattle," adjust numbering, and make minor formatting changes.

FISCAL NOTE

Ms. Jeanine Coggeshall, General Counsel for the Texas Animal Health Commission, determined that for each year of the first five years that the rule is in effect, enforcing or administering the proposed rules does not have foreseeable implications relating to costs or revenues of state or local governments. Commission employees will administer and enforce these rules as part of their current job duties and resources. Ms. Coggeshall also determined for the same period that there is no estimated increase or loss in revenue to the state or local government as a result of enforcing or administering the proposed amendments.

PUBLIC BENEFIT NOTE

Ms. Coggeshall determined that for each year of the first five years the rule is in effect, the anticipated public benefits are more accurate rule language and reduced confusion regarding entry requirements.

TAKINGS IMPACT ASSESSMENT

The Commission determined that the proposal does not restrict, limit, or impose a burden on an owner's rights to his or her private real property that would otherwise exist in the absence of government action. Therefore, the proposed rules are compliant with the Private Real Property Preservation Act in Texas Government Code §2007.043 and do not constitute a taking.

LOCAL EMPLOYMENT IMPACT STATEMENT

The Commission determined that the proposed rules would not impact local economies and, therefore, did not file a request for a local employment impact statement with the Texas Workforce Commission pursuant to Texas Government Code §2001.022.

REGULATORY ANALYSIS OF MAJOR ENVIRONMENTAL RULES

The Commission determined that this proposal is not a "major environmental rule" as defined by Government Code §2001.0225. "Major environmental rule" is defined to mean a rule the specific intent of which is to protect the environment or reduce risk to human health from environmental exposure and that may adversely affect, in a material way, the economy, a sector of the economy, productivity, competition, jobs, the environment or the public health and safety of a state or a sector of the state. This proposal is not specifically intended to protect the environment or reduce risks to human health from environmental exposure.

GOVERNMENT GROWTH IMPACT STATEMENT

In compliance with the requirements of Texas Government Code §2001.0221, the Commission prepared the following Government Growth Impact Statement. The Commission determined for each year of the first five years the proposed rules would be in effect, the proposed rules:

Will not create or eliminate a government program;

Will not require the creation or elimination of employee positions;

Will result in no assumed change in future legislative appropriations;

Will not affect fees paid to the Commission;

Will not create new regulation;

Will not change existing regulations;

Will change the number of individuals subject to the rule; and

Will not affect the state's economy.

SMALL BUSINESS, MICRO-BUSINESS, AND RURAL COMMUNITY IMPACT ANALYSIS

Ms. Coggeshall also determined that there will be no adverse economic effect on small businesses, micro-businesses, or rural communities pursuant to Texas Government Code, Chapter 2006. The rules do not impose any additional costs on small businesses, micro-businesses, or rural communities that are required to comply with the rules.

COSTS TO REGULATED PERSONS

The proposed amendments to Chapter 51 do not impose additional costs on regulated persons and are designed to clarify entry requirements for dairy cattle. The proposed rules do not otherwise impose a direct cost on a regulated person, state agency, a special district, or a local government within the state.

PUBLIC COMMENT

Written comments regarding the proposed amendments may be submitted to Amanda Bernhard, Texas Animal Health Commission, 2105 Kramer Lane, Austin, Texas 78758, by fax at (512) 719-0719 or by e-mail to comments@tahc.texas.gov. To be considered, comments must be received no later than thirty (30) days from the date of publication of this proposal in the Texas Register . When faxing or emailing comments, please indicate "Comments on Proposed Rule-Chapter 51, Entry Requirements" in the subject line.

STATUTORY AUTHORITY

The amendments are proposed under the following statutory authority as found in Chapter 161 of the Texas Agriculture Code. The Commission is vested by statute, §161.041(a), with the requirement to protect all livestock, domestic animals, and domestic fowl from disease. The Commission is authorized, through §161.041(b), to act to eradicate or control any disease or agent of transmission for any disease that affects livestock.

Pursuant to §161.006, entitled "Documents to Accompany Shipment", if required that a certificate or permit accompany animals or commodities moved in this state, the document must be in the possession of the person in charge of the animals or commodities, if the movement is made by any other means.

Pursuant to §161.046, entitled "Rules", the Commission may adopt rules as necessary for the administration and enforcement of this chapter.

Pursuant to §161.048, entitled "Inspection of Shipment of Animals or Animal Products", the Commission may require testing, vaccination, or another epidemiologically sound procedure before or after animals are moved. An agent of the Commission is entitled to stop and inspect a shipment of animals or animal products being transported in this state in order to determine if the shipment originated from a quarantined area or herd; or determine if the shipment presents a danger to the public health or livestock industry through insect infestation or through a communicable or noncommunicable disease.

Pursuant to §161.054, titled "Regulation of Movement of Animals; Exception", the Commission, by rule, may regulate the movement of animals. The Commission may restrict the intrastate movement of animals even though the movement of the animals is unrestricted in interstate or international commerce. The Commission may require testing, vaccination, or another epidemiologically sound procedure before or after animals are moved. The Commission is authorized, through §161.054(b), to prohibit or regulate the movement of animals into a quarantined herd, premises, or area. The executive director of the Commission is authorized, through §161.054(d), to modify a restriction on animal movement, and may consider economic hardship.

Pursuant to §161.113, entitled "Testing or Treatment of Livestock", if the Commission requires testing or vaccination under this subchapter, the testing or vaccination must be performed by an accredited veterinarian or qualified person authorized by the commission. The state may not be required to pay the cost of fees charged for the testing or vaccination. The Commission may require the owner or operator of a livestock market to furnish adequate equipment or facilities or have access to essential equipment or facilities within the immediate vicinity of the livestock market.

Pursuant to §161.114, entitled "Inspection of Livestock", an authorized inspector may examine livestock consigned to and delivered on the premises of a livestock market before the livestock are offered for sale. If the inspector considers it necessary, the inspector may have an animal tested or vaccinated. Any testing or vaccination must occur before the animal is removed from the livestock market.

No other statutes, articles, or codes are affected by this proposal.

§ 51.1. Definitions.

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

(1) Accredited veterinarian--A licensed veterinarian who is approved to perform specified functions required by cooperative state-federal disease control and eradication programs pursuant to Title 9 of the Code of Federal Regulations, Parts 160 and 161.

(2) Animal--Includes livestock, exotic livestock, domestic fowl, and exotic fowl.

(3) Assembly--Boarding stables, boarding pastures, breeding farms, parades, rodeos, roping events, trail rides, and training stables.

(4) Certificate of veterinary inspection--A document signed by an accredited veterinarian that shows the livestock, poultry, exotic livestock, or exotic fowl listed were inspected and subjected to tests, immunizations, and treatment as required by the commission. Certificates are valid for 30 days for all species.

(5) Cervidae--Deer, elk, moose, caribou and related species in the cervidae family, raised under confinement or agricultural conditions for the production of meat or other agricultural products or for sport or exhibition, and free-ranging cervidae when they are captured for any purpose.

(6) Commission--The Texas Animal Health Commission.

(7) Commuter Flock--A National Poultry Improvement Plan (pullorum-typhoid clean or equivalent) flock in good standing with operations in participating states that are under single ownership or management control whose normal operations require interstate movement of hatching eggs and/or baby poultry without change of ownership for purposes of hatching, feeding, rearing or breeding. The owner or representative of the company owning the flock and chief animal health officials of participating states of origin and destination must have entered into a signed "Commuter Poultry Flock Agreement."

(8) Commuter Cattle Herd--A herd of cattle located in two or more states that is documented as a valid ranching operation by those states in which the herd is located and which requires movement of cattle interstate from a farm of origin or returned interstate to a farm of origin in the course of normal ranching operations, without change of ownership, directly to or from another premise owned, leased, or rented by the same individual. An application for "commuter herd" status must be signed by the owner and approved by the states in which the herd is located. This status will continue until canceled by the owner or one of the signatory states.

(9) Commuter Swine Herd--A swine herd located in two or more states that is documented as a valid ranching operation by those states in which the herd is located and which requires movement of swine interstate from a farm of origin or returned interstate to a farm of origin in the course of normal ranching operations, without change of ownership, directly to or from another premise owned, leased, or rented by the same individual. An application for "commuter herd" status must be signed by the owner and approved by the states in which the herd is located. This status will continue until canceled by the owner or one of the signatory states.

(11) [ (10) ] Directly--Moved in a means of conveyance, without stopping to unload while en route, except for stops of less than 24 hours to feed, water or rest the animals being moved, and with no commingling of animals at such stops.

(12) [ (11) ] Equine interstate passport--A document signed by an accredited veterinarian that shows the equine listed were inspected, subjected to tests, immunizations and treatment as required by the issuing state animal health agency, and contains a description of the equine listed. The passport is valid for six months when accompanied by proof of an official negative EIA test within the previous six months. Permanent individual animal identification in the form of a lip tattoo, brand or electronic implant is required for all equine approved for the equine interstate passport. This document is valid for equine entering from any state that has entered into a written agreement to reciprocate with Texas.

(13) [ (12) ] Equine identification card--A document signed by the owner and a brand inspector or authorized state animal regulatory agency representative that lists the animal's name and description and indicates the location of all identifying marks or brands. This document is valid for equine entering from any state which has entered into a written agreement to reciprocate with Texas.

(14) [ (13) ] Exotic livestock--Grass-eating or plant-eating, single-hooved or cloven-hooved mammals that are not indigenous to this state and are known as ungulates, including animals from the swine, horse, tapir, rhinoceros, elephant, deer, and antelope families.

(15) [ (14) ] Exotic fowl--Any avian species that is not indigenous to this state. The term includes ratites.

(16) [ (15) ] Federally Approved Livestock Market--A livestock market under State or Federal veterinary supervision where livestock are assembled and has been approved under Title 9 of the Code of Federal Regulation, Part 71, Section 71.20.

(17) [ (16) ] Livestock--Cattle, horses, mules, asses, sheep, goats, and hogs.

(18) [ (17) ] Official Identification--The identification of livestock and fowl by means of an official identification device, official eartag, registration tattoo, or registration brand, or any other method approved by the Commission and/or Administrator of the United States Department of Agriculture (USDA) Animal and Plant Health Inspection Service (APHIS) that provides unique identification for each animal.

(19) [ (18) ] Owner-shipper statement--A statement signed by the owner or shipper of the livestock being moved stating the location from which the animals are moved interstate; the destination of the animals; the number of the animals covered by the statement; the species of the animal covered; the name and address of the shipper; and the identification of each animal as required by the commission or the United States Department of Agriculture (USDA).

(20) [ (19) ] Permit--A document recognized by the commission with specified conditions relative to movement, testing and vaccinating of animals which is required to accompany the animals entering, leaving or moving within the State of Texas.

(A) "E" permit--Premovement authorization for entry of animals into the state by the commission. The "E" permit states the conditions under which movement may be made, and will provide any appropriate restrictions and test requirements after arrival. The permit is valid for 15 days.

(B) VS 1-27 (VS Form 1-27)--A premovement authorization for movement of animals to restricted designations.

(21) [ (20) ] Purebred registry association--A swine breed association formed and perpetuated for the maintenance of records of purebreeding of swine species for a specific breed whose characteristics are set forth in constitutions, by-laws, and other rules of the association.

(22) [ (21) ] Radio Frequency Identification Device (RFID)--Official individual animal identification with an identification device that utilizes radio frequency technology. The RFID devices include ear tags, boluses, implants (injected), and tag attachments (transponders that work in concert with ear tags).

(23) [ (22) ] Sponsor--An owner or person in charge of an exhibition, show or fair.

(24) [(23)] Trichomoniasis--A venereal disease of cattle caused by the organism Tritrichomonas foetus [Tritrichomonas foetus].

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on November 20, 2025.

TRD-202504266

Jeanine Coggeshall

General Counsel

Texas Animal Health Commission

Earliest possible date of adoption: January 4, 2026

For further information, please call: (512) 839-0511