TITLE economic-regulation

Part I. Railroad Commission of Texas

Chapter 20. Administration

Subchapter C. Gifts to the Commission

16 TAC §20.201

The Railroad Commission adopts new §20.201, concerning gifts to the commission, with changes to the proposed version published in the April 9, 1999, issue of the Texas Register (24 TexReg 2817). Under Texas Civil Statutes, Article 6447i, the commission may apply for, request, solicit, contract for, receive, accept, and administer gifts, grants, and donations of money or other assistance from any source to carry out any commission purpose or power authorized by law. Texas Natural Resources Code, §113.243(e), permits the commission to apply for, request, solicit, contract for, receive, and accept gifts, grants, and other assistance from any source for the purposes of Subchapter I of Chapter 113. Texas Government Code, §2255.001, requires a state agency that is authorized by statute to accept money from a private donor to adopt rules governing the relationship between the donor and the agency and its employees. Texas Government Code, §572.051, provides guidance to state officials and employees who may be accepting gifts on behalf of their agencies. Finally, Texas Government Code, Chapter 575, requires an agency to accept a gift by majority vote in an open meeting.

New §20.201 incorporates these statutory requirements, limitations, and guidelines in a general manner by establishing the process for the commission's evaluation and acceptance of a gift within the purview of the executive director, who would be responsible for ensuring that the donor of a potential gift meets all the statutory requirements and that the potential gift would assist the commission in carrying out an authorized purpose. Under new §20.201, an entity may make a gift to the commission by first filing with the executive director a written notice of intent to make a gift. The notice must include the type of gift (e.g., equipment, money, expert assistance, etc.), the date the gift would be made, a statement as to how the gift would assist the commission in carrying out its duties, an estimate of the value of the gift, and a statement of the donor's party status in contested cases pending before the commission. The commission has developed a form (Notice of Gift to Railroad Commission of Texas Pursuant to 16 TAC 20.201) which donors may use, but which is not required.

Upon receiving a notice of intent to make a gift, the executive director will notify the appropriate division director, who will respond with a written recommendation whether the commission should accept the potential donation, and the Office of General Counsel, which will furnish a report regarding the donor's party status in any contested cases pending before the commission. Donors are required to notify the executive director immediately if there is a change in the donor's party status after filing a notice of intent to make a gift but prior to acceptance of the gift.

After receiving the staff recommendation and party status report, the executive director will process the notice of intent to make a gift depending on whether the estimated value is either less than $500 or $500 or more. For proposed gifts with an estimated value of less than $500, the executive director will make a determination whether to accept the gift or not, and will notify the donor and the appropriate division director in writing. If the estimated value of a proposed gift is $500 or more, the executive director will give notice that the commission will consider the matter at an open meeting and will forward copies of the notice of intent to make a gift and the staff's information and recommendation to the commissioners. The consideration of the potential gift will be in open meeting, and any vote regarding the gift will be commemorated in a signed order of the commission. The commission staff is directed to take all appropriate steps to receive gifts and to account for them properly in the records of the commission.

The commission received one comment, from the General Land Office, supporting the new rule.

The commission has made one correction in §20.201(f) to insert a missing word, "by," between "required" and "this." In addition, the commission has made a change to the RRC Gift Form, use of which is optional. Under the section headed "Contested Case Status" on the form, item number 2 states, "If the donor has been a party in a contested case which has been completed within the last 30 days, list the docket number, style, and final order date of the case." In §20.201(c)(6)(B), however, the donor is required to state the most recent case in which the donor was a party, or to state that the donor has not ever been a party to a contested case. The wording on the form has been amended to make it consistent with the wording in the rule itself.

The commission adopts new §20.201 under Texas Civil Statutes, Article 6447i, which authorizes the commission to apply for, request, solicit, contract for, receive, accept, and administer gifts, grants, and donations of money or other assistance from any source to carry out any commission purpose or power authorized by law; Texas Natural Resources Code, §113.243(e), which permits the commission to apply for, request, solicit, contract for, receive, and accept gifts, grants, and other assistance from any source for the purposes of Subchapter I of Chapter 113; Texas Government Code, §572.051, which sets forth guidelines for acceptance of gifts by state agency officials and employees; Texas Government Code, §2255.001, which requires a state agency that is authorized by statute to accept money from a private donor to adopt rules governing the relationship between the donor and the agency and its employees; and Texas Government Code, Chapter 575, which requires an agency to accept a gift by majority vote in an open meeting.

New §20.201 affects Texas Civil Statutes, Article 6447i; Texas Natural Resources Code, §113.243(e); Texas Government Code, §2255.001; and Texas Government Code, §572.051 and Chapter 575.

§20.201.Gifts to the Commission.

(a)

Definitions. The following words and terms when used in this section shall have the following meanings, unless the context clearly indicates otherwise.

(1)

Commission--The Railroad Commission of Texas.

(2)

Commissioner--A member of the commission.

(3)

Contested case--A proceeding, including a ratemaking or licensing proceeding, in which the legal rights, duties or privileges of a party are to be determined by the commission after an opportunity for adjudicative hearing. For purposes of this section, the term does not include matters that are handled administratively without a hearing.

(4)

Decision in a contested case--That final order of the commission that disposes of all issues in a contested case.

(5)

Employee--A full-time or part-time employee of the commission.

(6)

Gift--A donation of money, property, or other assistance conveyed to the commission and over which the commission has complete title, control, or discretion. The term does not include items that are temporarily in the commission's possession for testing or research purposes; a person's participation as a speaker or presenter in a commission-sponsored conference or seminar; or payments made pursuant to Texas Natural Resources Code, §89.084.

(7)

Inception of the case--The date an application, complaint, petition, statement of intent, or other request for commission action, ruling, or relief is determined to require a hearing or the date a matter is referred to the Office of General Counsel, whichever is earlier.

(8)

Money--Cash or negotiable instruments.

(9)

Other assistance--The gift of personnel or expertise in a particular professional or technical area.

(10)

Party--A person or a state agency named or admitted as a party to a contested case pending before the commission.

(11)

Person--An individual; a partnership, limited partnership, joint venture, cooperative, corporation, association, or any other business organization or entity; a trust; an estate; a public or private institution of higher education; or a state agency, county, municipality, council of government, school district or other governmental subdivision.

(12)

Property--Real property or personal property, both tangible and intangible.

(b)

Terms and conditions. The commission may apply for, request, solicit, contract for, receive, accept, and administer gifts, grants, and donations of money or other assistance from any source to carry out any commission purpose or power authorized by law except as follows:

(1)

The commission shall not accept a gift from a party in a contested case during the period from the inception of the contested case until the 30th day after the date the decision in a contested case becomes final under Texas Government Code, §2001.144.

(2)

The commission shall not solicit or accept any gift:

(A)

that might reasonably tend to influence a commissioner or commission employee in the discharge of official duties, or that the commissioner or commission employee knows or should know is being offered with the intent to influence the commissioner's or commission employee's official conduct;

(B)

that could reasonably be expected to impair a commissioner's or commission employee's independence of judgment in the performance of the commissioner's or commission employee's official duties; or

(C)

for having exercised the commission's or a commission employee's official powers or performed the commission's or commission employee's official duties in favor of another.

(c)

Notice of intent to make a gift. A person wishing to make a gift to the commission shall file with the executive director a completed RRC Gift Form, Notice of Gift to Railroad Commission of Texas, or a letter including the following information:

Figure: 16 TAC 20.201(c)

(1)

the complete legal name, address, and telephone number of the donor;

(2)

a description of the intended gift;

(3)

the date on which the gift would be made;

(4)

a statement describing the manner in which the intended gift would assist the commission in carrying out its duties;

(5)

an estimate of the value of the gift; and

(6)

a statement regarding the donor's party status in any contested case pending before the commission:

(A)

If the donor is a party in a contested case pending before the commission, the notice shall include the docket number, style, and filing date of every contested case in which the donor is a party.

(B)

If the donor is not a party in any contested case pending before the commission, the notice shall include either the docket number, style, and date the order was signed in the most recent contested case in which the donor was a party or a statement that the donor has never been a party to a contested case before the commission.

(7)

The executive director shall forward the form or letter to the appropriate division director for review.

(d)

Division director review. The division director to whom the executive director has forwarded a copy of the form or letter shall review the form or letter within 10 business days. The director shall indicate on the form whether:

(1)

the intended gift would assist the commission in carrying out its duties and, if so, how;

(2)

the intended gift would provide a broad or general benefit to the commission in carrying out its purposes and powers that would exceed any particular benefit that the donor might realize as a result of making the gift;

(3)

the division director agrees with the estimated value of the gift and, if not, the division director's estimate of the value of the gift and the reason for the difference of opinion; and

(4)

the commission should accept the intended gift and, if not, the reasons the division director recommends against accepting the intended gift.

(5)

The division director shall forward the form or letter to the Office of General Counsel for review.

(e)

Office of General Counsel review. Upon receipt of a form or letter from a division director, the Office of General Counsel shall review the form or letter within 10 business days regarding the intended donor's status as a party in any proceeding pending before the commission.

(1)

The review shall indicate whether the date on which the donor intends to make the gift to the commission meets the requirements of subsection (b)(1) of this section and if not, shall state a date or dates which would meet the requirements of subsection (b)(1) of this section.

(2)

The Office of General Counsel shall forward the reviewed form or letter to the executive director for final review.

(f)

Executive director review. Upon receipt of a form or letter reviewed by a division director and the Office of General Counsel, the executive director shall review the form or letter within 10 business days to ensure that all information required by this section is included.

(1)

The executive director may request that the person filing the notice of intent to make a gift supply additional information regarding the donor, the intended gift, its estimated value, its usefulness to the commission, the donor's party status, or any other information that the executive director deems relevant to the intended gift.

(2)

If the executive director finds all information on the form or letter to be satisfactory and the value of the gift is less than $500, the executive director shall approve the gift by signing and dating the RRC Gift Form and shall forward copies of the form to the donor, the appropriate division director, the Finance and Administration Division, and the Office of General Counsel.

(3)

If the executive director finds all information on the form or letter to be satisfactory and the value of the gift is $500 or more, the executive director shall:

(A)

give notice that the commission will consider the matter at an open meeting; and

(B)

request that the Office of General Counsel draft an order consistent with the staff recommendation regarding acceptance of the intended gift.

(4)

In an open meeting, the commission shall consider the intended gift and shall vote on whether to accept the gift. The commission shall commemorate the vote by signing an order.

(g)

Upon a commission order or an executive director decision accepting a gift, the executive director shall ensure that the commission staff takes all appropriate steps to receive the gift and to account for it properly in the records of the commission.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on May 25, 1999.

TRD-9903081

Mary Ross McDonald

Deputy General Counsel, Office of General Counsel

Railroad Commission of Texas

Effective date: June 14, 1999

Proposal publication date: April 9, 1999

For further information, please call: (512) 463-7008