(a) The categories of fees that may be incurred by an operation applying for initial certification or annual update of certification are as follows: new application fee, certification fees, administrative fees, and additional service fees:

(1) New Application Fee: $400. An application fee is incurred at the time of submission for each new application for organic certification, and is in addition to any certification fees.

(2) Certification Fees: These fees are incurred at the time of initial application and annual update of certification and shall be paid in conjunction with submission of a new application or an annual update of an existing certification. Certification fees are cumulative. (A) Producer Scopes. Fees for an operation or a portion of an operation that produces organic crops and livestock as defined in 7 Code of Federal Regulations (CFR), Part 205. (i) Fees for crop producer scope: (I) Crop production operations that have 50 acres or less under organic management have an established baseline of up to 25 production inputs and a fee of $1,000. Any additional inputs above this baseline will incur an additional fee as established in this subsection. (II) Crop production operations that have more than 50 acres under organic management have an established baseline of up to 5 production inputs and a fee of $1,500. Any additional inputs above this baseline will incur an additional fee as established in this subsection. (ii) Fee for the review of each additional production input above the baseline that is established in this subsection: $100 per production input. (iii) The total certification fee for a crop production operation that is less than 5,000 acres shall not exceed $4,200. (iv) An operation with more than 5,000 acres of land under organic management incurs an additional fee of $600. (v) Fee to add the livestock producer scope to organic producer certification: $1,000. Operations that incur this fee shall increase their baseline by 25 production inputs. Any additional inputs above this baseline will incur an additional fee as established in this subsection. (B) Handler Scope. Fee for each location of an operation or portion of an operation that handles organic product and is required to obtain certification per 7 CFR Part 205 or desires to obtain organic certification for the purpose of brokering and/or trading of certified organic product. (i) Fee for handler scope: $1,500. Fee includes certification for handling of bulk raw agricultural commodities; single ingredient finished products (e.g. cotton, coffee, rice); livestock feed that is consumed onsite of the operation; and review of organic labeling claims made in compliance with 7 CFR Part 205, §§205.307 - 205.309. (ii) Fee for certification of multi-ingredient processed products for operations that have 25 or less multi-ingredient processed products: $250 per product. (iii) Fee for certification of multi-ingredient processed product for operations that have 26 or more multi-ingredient processed products: $6,250 for the certification of the first 25 products and $100 for the certification of each additional product. (iv) Fee for reviewing each new organic product label or label template or change to a previously approved product label or label template for compliance with 7 CFR Part 205, §§205.303 - 205.306. (To be classified as a label template, organic claims made on main label and any information content, use of the department's organic logo, use of the United States Department of Agriculture organic seal, and certified by statement must remain the same (i.e. size, color(s), and location on the label)): $200. (C) A change fee is incurred when an operation submits documentation to make one or more changes to an organic system plan after the initial review of the organic system plan documentation has been conducted: $300. (i) If an operation submits documentation to make one or more changes to an organic system plan after the initial review has been conducted and includes changes to add one or more producer inputs or changes to previously submitted multi-ingredient processed products or product labels, such changes are cumulative and charged at the applicable fee rate provided in paragraph (1) of this subsection. (ii) A change fee is not incurred when the only change to the organic system plan is the addition of one or more producer inputs, addition of new or changes to previously submitted multi-ingredient processed products or product labels. Such changes are charged at the applicable fee rate provided in paragraph (1) of this subsection.

(3) Administrative fees. The following fees are incurred by an operation that is not compliant with 7 CFR Part 205 and are cumulative. (A) Corrective action fee: incurred for each area of noncompliance identified in a notice of noncompliance that is issued to an operation due to adverse findings from an inspection, review, or investigation of an operation that is seeking certification from or is currently certified by the department: $200 per area of noncompliance. (B) Re-inspection fee: incurred when a re-inspection must be conducted to verify that an operation has come into compliance with one or more previously identified areas of noncompliance: $400 per re-inspection. (C) Late Fees: incurred when an operation fails to submit an annual update fee payment on or before the due date of the certification annual update shall pay, in addition to the annual update fee, a late fee of: (i) 50 percent of the certification fee if received by the department from at least one but less than 91 days after the due date; (ii) 100 percent of the certification fee if received by the department 91 days after the due date.

(4) Additional Service fees. The following fees are incurred at the time the service is requested and are cumulative. The purpose of the following service fees is to facilitate trade and satisfy document requirements by another certifying agent, organic operation, transitional operation, or a foreign government. (A) Organic pesticide residue tissue sample collection requested by client during scheduled inspection: $250 per sample. (B) Organic pesticide residue tissue sample collection requested by client when inspection is not scheduled: $200 fee for the facility visit, plus $250 per sample. (C) Review of an operation's organic system plan for compliance with a trade agreement between the United States Department of Agriculture National Organic Program and a foreign trade partner: $75. (D) Trade documents: $50 per document requested. (E) Transaction certificate: $100 per certificate.

(b) The department may require additional fees or refund fees submitted by producers and handlers for underpayment or overpayment of prescribed annual fees or for a portion of a certification period.

(c) Prorated fees may be charged for extension of an annual certification period that is prescribed by the department.

(d) Scheduled date of annual update.

(1) The due date for annual certification update shall be the anniversary of initial certification or the anniversary date of the previous date for annual certification update.

(2) A certified operation may submit a written request to revise its due date for annual certification; provided that: (A) The operation has not already submitted a written request to revise its existing due date for annual certification during the current certification year; (B) The requested due date must not be more than five calendar months past the existing due date of certification; (C) The requested due date is on the last date of the month; and (D) Normal organic operations are available for inspection for a period of six calendar months following the requested due date.

(3) The written request must be received by the department prior to 30 days before the requested due date if the requested due date for annual certification will occur prior to the existing due date. The operation's annual update documents and fee payment will be due on the revised due date for annual certification update.

(4) The written request must be received by the department prior to 30 days before the existing due date if the requested due date for annual certification will occur after the existing due date and be accompanied by payment of all applicable fees.

(5) If the department finds that the due date for annual update of certification occurs during or immediately preceding a period of 3 months or more where no harvestable crop will be in production or when no organic product will be handled, the department may assign, at its discretion, a due date for annual certification renewal from one of the following dates: (A) January 31 of each year. (B) March 31 of each year. (C) May 31 of each year. (D) June 31 of each year. (E) July 31 of each year. (F) October 31 of each year.

(e) Refunds. A portion of the certification fee may be refunded if the application is withdrawn or certification is surrendered prior to a certification decision. Refunds will be prorated based on the steps of the certification process that have been completed. Requests for refund of fees must be submitted in writing and submitted in conjunction with the request to withdraw an application or surrender an operation's certification.

(1) If withdrawn or surrendered prior to initial review, all of the certification fee may be refunded.

(2) If withdrawn or surrendered after initial review but prior to inspection, 40 percent of the certification fee may be refunded.

(3) Once an inspection has been conducted, the certification fee shall not be refunded.

(4) Administrative fees are nonrefundable.

(5) New application fees are nonrefundable.

(6) Change fees are only refundable prior to the review of the documentation being performed by the department.

(7) Additional service fees are only refundable prior to the service being performed by the department.

Source Note: The provisions of this §18.702 adopted to be effective January 1, 2015, 39 TexReg 9517; amended to be effective December 7, 2017, 42 TexReg 6789