(a)

1. (1) Pursuant to Arkansas Code § 2-16-617(e), cotton growers may apply for exemption from payment of any assessment or penalty imposed by these rules, on the basis that such payment will impose undue financial hardship on the cotton grower.

2. (2) Criteria for hardship may include, but are not limited to:

   1. (A) Late or unavailable financing through no fault of the cotton grower;
   2. (B) Regional economic conditions; and
   3. (C) Regional climate/environmental conditions.

(b)

1. (1) Any cotton grower who wishes to request an exemption from payment of the assessment or the penalty or both shall apply for the exemption on forms prescribed by the State Plant Board.
2. (2) Except for instances beyond the control of the cotton grower, the application for this exemption must be received by the board at least thirty (30) days before the due date of the assessment for which exemption is requested.
3. (3) A separate application must be filed for each calendar year for which the cotton grower seeks an exemption.

4. (4)

   1. (A) Each such application shall contain information on which the cotton grower relies to justify an exemption on the basis of undue financial hardship.
   2. (B) In the event the application for exemption is not filed within the time prescribed herein, the application shall include information that describes the circumstances that prevented a timely filing.
5. (5) The application form shall include an oath or affirmation of the applicant as to the truth of all information contained in or accompanying the application.

(c)

1. (1)

   1. (A) The board shall forward each completed exemption application form and any information accompanying the form to the Arkansas Cotton Grower’s Organization, Inc.
   2. (B) The Arkansas Cotton Grower’s Organization, Inc., shall determine whether each applicant qualifies for a hardship exemption based on the information contained in or accompanying the application form.
   3. (C) If the Arkansas Cotton Grower’s Organization, Inc., determines that the payment of the assessment or the penalty or both would impose undue financial hardship on a cotton grower who has applied for an exemption, the Arkansas Cotton Grower’s Organization, Inc., may:

(i) Exempt the cotton grower from payment of the assessment or the penalty or both; or

1. (ii) Permit the cotton grower to pay the assessment or penalty or both on an installment payment plan and prescribe the payment schedule.

2. (2)

   1. (A) Upon making a determination on any application for exemption, the Arkansas Cotton Grower’s Organization, Inc., shall notify the board of its determination, which shall be binding on the applicant.

   2. (B)

      1. (i) The board shall then promptly notify the affected cotton grower in writing of the determination.
      2. (ii) If an exemption is denied, the assessment and penalties for the year in which the application is made will be due at the time they would otherwise have been due if the application had not been filed, or within thirty (30) days after the date of the notice of the determination, whichever is later.