The Texas Boll Weevil Eradication Foundation (foundation) is required to obtain approval from the commissioner of agriculture as follows.
  (1) Approval must be obtained in writing from the commissioner for the borrowing of money to fund operations of the foundation.
    (A) An approval request for the borrowing of money must first be approved by the foundation's board in open meeting.
    (B) Once approved by the board, the request for approval to borrow money must be submitted to the commissioner in writing at least 30 days before the date of the actual borrowing transaction and include:
      (i) name and address of lender;
      (ii) amount to be borrowed;
      (iii) copy of terms of agreement for borrowing and supporting documentation;
      (iv) a statement of justification for choosing the lender including other options considered; and
      (v) any other information requested by the commissioner.
  (2) The commissioner must approve in writing the foundation's policy for the procurement of goods or services.
    (A) A general policy must be approved by the commissioner initially and reviewed annually thereafter.
    (B) The general procurement policy of the foundation shall include:
      (i) a requirement in regards to purchases of goods or services:
        (I) that agreements over the amount of $50,000 entered into for providing aerial application services, purchases of chemicals, pheromone traps, pheromone, stakes, bar code devices, and purchases or leases of vehicles or other heavy equipment be approved by the commissioner; and
        (II) that the requirement does not include agreements for routine or day-to-day operating expenditures such as office supplies, payroll or utilities.
      (ii) provisions for obtaining of competitive bids, including a requirement that bid announcements for purchases or leases, or financing of such purchases or leases, over the amount of $50,000 be approved by the commissioner prior to distribution of the announcement to prospective bidders; and
      (iii) a requirement that a statement of justification of the need for the goods or services being purchased or leases be provided for each purchase or lease.
  (3) The commissioner must review and approve the foundation's operating budget, which includes individual zone budgets as well as the foundation's operating budget for its main administrative offices, in writing, and no funds may be used to fund programs not approved by the commissioner. The budget must:
    (A) be approved on an annual basis to correspond with the foundation's fiscal year;
    (B) be submitted at least 30 days prior to be the end of the foundation's fiscal year;
    (C) be approved by the foundation board in an open meeting prior to submission to the commissioner;
    (D) include the following:
      (i) a breakdown of expenses to show the budget as projected by eradication zone;
      (ii) total projected budget including expenses for goods and services to be approved by the commissioner; and
      (iii) a description of programs to be implemented using budgeted funds; and
    (E) Budget revisions are permitted between the approved budget line items. Prior written approval from the commissioner is required on all cumulative transfers, for the fiscal year covered by the proposed budget, of funds among budget line items when the amount transferred exceeds 5% of the total annual budget.
  (4) The commissioner must approve in writing the use of a bank depository prior to the deposit of funds by the foundation.
  (5) The commissioner must approve in writing or by signing cooperative agreements entered into by the foundation for carrying out the purposes of approved eradication activities:
    (A) with other states;
    (B) with individuals, or a group of persons involved in similar programs to carry out the purposes of the Texas Agriculture Code, Chapter 74, Subchapter D; and
    (C) with other governmental entities.

Source Note: The provisions of this §3.201 adopted to be effective February 27, 2000, 25 TexReg 1308; amended to be effective June 26, 2023, 48 TexReg 3405