(a) If an administrative penalty is assessed by the department under the Code, §74.115, for failure to timely pay an assessment, the cotton grower may apply for an exemption from that administrative penalty in writing on a form prescribed by the commissioner within 20 days from receipt of the notice of violation, stating the conditions justifying such request. The conditions must be such that payment of the penalty would impose an undue financial burden upon the grower.
(b) A grower who applies for an exemption from the penalty under this section must use a form prescribed by the commissioner. Forms may be obtained by emailing the department or mailing the department at Texas Department of Agriculture, P.O. Box 12847, Austin, Texas 78711. Exemptions apply only to the particular crop year for which they are sought. A cotton grower must file a new application for an exemption with the department for each new crop and associated crop year for which an exemption is sought.
(c) A request for exemption from the penalty will be considered only upon submission of a completed application form and the following documentation:
  (1) an income tax statement showing taxable net income for the previous year; and
  (2) an assignment of deficiency payments for cotton or any other crop to cover the amount due for assessments and assessment penalties and a general crop lien for all crops and products of such crops if deficiency payments are insufficient; or
  (3) a financial statement from a bank or other lending institution financing the farming operation indicating inability to pay.
(d) Additional information may be submitted by the cotton grower for consideration by the department.
(e) The department shall promptly notify the applicant of its determination regarding the applicant's request for exemption by mail at the address provided by the applicant in the application for exemption.
(f) If the request for exemption from assessment penalties under this section is denied, assessments and penalties for the year for which the application is made are due on the later of:
  (1) the date on which they would be due in the absence of an application for exemption; or
  (2) 30 days after the date the applicant receives notice of the denial.
(g) If warranted, the department may grant a full or partial exemption.

Source Note: The provisions of this §3.76 adopted to be effective May 19, 1998, 23 TexReg 4902; amended to be effective June 26, 2023, 48 TexReg 3405