(a) Statement of Purpose and Authority. In accordance with Chapter 80 of the Code, the Department is authorized to contract with the entity under §80.020 to carry out pest and disease suppression to obtain suppression services for the state of Texas as part of a cost-sharing program. The Corporation has been designated as that entity. This section sets forth requirements and procedures for the implementation of the cost-sharing program.
(b) Zone eligibility.
  (1) The Department may spend money under the cost-sharing program only in a pest management zone in which:
    (A) a suppression project authorized under the Code, Chapter 80 is active; or
    (B) suppression has been declared complete by the United States Department of Agriculture or its designee.
  (2) A zone meets the requirement set forth in paragraph (1)(A) of this subsection if a referendum of citrus producers has been held in the pest management zone in accordance with Chapter 80 of the Code, and both the establishment of a suppression program and a maximum assessment have been approved by producers for that pest management zone.
(c) Request for funding.
  (1) The Corporation may request funding under this section to provide suppression services by submitting a proposal which meets the requirements specified by the Department.
  (2) A proposal to provide suppression services shall include:
    (A) a statement that the Corporation meets eligibility requirements;
    (B) a statement verifying that the Corporation will comply with the Uniform Grant Management Standards promulgated by the Governor's Office of Budget and Planning, under the Texas Government Code, Chapter 783 (UGMS);
    (C) Verification that funds provided will be used for suppression services in eligible zones; and
    (D) the specific amount of funding requested and how the funds will be used, broken down by zone, period of time covered, specific category of expenditure, and nature of activity.
  (3) Additional information may be requested, if needed.
(d) Disbursement of funds.
  (1) Disbursement of funds will be made after review and acceptance of the Corporation's proposal by the Department and execution of a written contract for services between the Department and the Corporation.
  (2) Disbursement shall be made only in accordance with the contract.
  (3) Disbursement of funds may be made in a lump sum or installments, as set forth in the contract.
(e) Reporting/Accounting Requirements.
  (1) After funds have been disbursed, the Corporation shall provide a written report of expenditures on a quarterly basis according to the State of Texas fiscal year, or more often, as requested by the Department.
  (2) Quarterly reports shall be submitted to the Department within 30 days after the end of each quarter.
  (3) The Corporation shall establish an accounting system which identifies source of funds for programs, with separate accounting, in a manner that will enable the Department and others to audit funds and verify source of funds and how they are used, for:
    (A) producer assessments;
    (B) state funds; and
    (C) federal funds.
  (4) The Corporation shall comply with all applicable state requirements regarding use of state funds.
  (5) The Department may suspend disbursement of funds to the Corporation, if:
    (A) the Department determines, or has reason to believe, that appropriated funds are not being used for purposes stated in the contract or the Corporation is not complying with the terms of the contract, including reporting requirements, or these rules;
    (B) the Department determines, or has reason to believe, that the use of the appropriated funds by the Corporation is not consistent with state law; and/or
    (C) the Department determines or has reason to believe that the Corporation's use of the appropriated funds is not in the best interest of the state, citrus producers, or the suppression program.

Source Note: The provisions of this §27.105 adopted to be effective December 6, 2015, 40 TexReg 8637