The Office of the Attorney General (OAG) adopts §§63.1, 63.3, 63.11, 63.13, 63.15, 63.17, 63.19, 63.31, 63.33, 63.35, 63.37, 63.39, 63.51, 63.53, 63.55, 63.57, 63.71, 63.73, 63.81, 63.83, 63.85, 63.87, 63.89, 63.91, 63.101, 63.103, 63.105, 63.107, 63.109, 63.111, 63.113, 63.115, 63.117, 63.119, 63.121, 63.123, 63.125, 63.127, 63.129, 63.131, 63.141, 63.143, 63.145, 63.147, 63.149, 63.151, 63.153, 63.155, 63.157, 63.159, 63.161, 63.163, 63.165, 63.167, 63.169, 63.171, 63.173, 63.175, 63.177, 63.179, 63.181, 63.183, 63.185, 63.191, 63.193 and 63.195 without changes to the proposed text as published in the February 25, 2000, issue of the Texas Register (25 Tex Reg 1459) relating to rules for administration of crime victims' assistance grants (VAG) and will not be republished.

This chapter adopts implementation of new rules necessary to carry out the provisions of Tex. Code Crim. Proc. Ann. art. 56.541(West 1999), which provides funds for grants or contracts that support crime victim-related services or assistance. Article 56.541 reflects the legislature's finding that it is appropriate and necessary for the state to authorize a method for the appropriation of excess money in the compensation to victims of crime fund for grants or contracts supporting victim-related services or assistance. This adopted chapter establishes a procedure by which attorneys who represent the state in criminal cases and local law enforcement authorities may apply for and administer victim assistance coordinator grants. It also establishes a procedure by which nonprofit corporations may apply for and administer VAGs for statewide training programs that benefit victims of sexual assault and grants to purchase forensic exam equipment. Article 56.541 establishes joint authority of the OAG and the comptroller to determine the proper allocation of the revenue in the compensation to victims of crime fund for purposes of the article. Article 56.541(f) authorizes the OAG to adopt rules necessary for the implementation of article 56.541. The purpose of the regulatory scheme is to establish procedures for application and administration of VAGs or contracts which support crime victim-related services or assistance and therefore carry out the purpose of the statute. The OAG may also adopt rules to carry out its own independent functions under the statute. The adopted rules accomplish the objectives as set out below:

Subchapter A (General Provisions, §§63.1, 63.3) contains the general provisions of Chapter 63, including definitions of terms, a description of the statutory authority for the grant funds, the source of the grant funds, the Constitutionally dedicated purpose of the funds, and prohibitions related to the use of grant funds. These sections also contain a description of the OAG's statutory authority to adopt rules reasonable and necessary to implement article 56.541 of the Code Crim. Proc. Ann. art. 56.541(West 1999). Adopted §63.1 establishes the definitions of terms. Adopted §63.3 states the statutory authority for the creation of the fund, recognizes the authority of the Attorney General to administer the funds, and the purpose of the funds.

Subchapter B (Grants for Victim Assistance Coordinator or Crime Victim Liaison, §§63.11, 63.13, 63.15, 63.17, and 63.19) describes permissible uses for grant funds, the class of persons or entities eligible to apply for such grant funds, the funding levels for grants awarded, the limitations of use of grant funds awarded, and the duties of individuals who are employed as a result of grant awards. Adopted §63.11 defines that grants awarded may be used to defray all or part of the salary for establishing the positions of victim assistance coordinator or crime victim liaison and the duties associated with such positions. Adopted §63.13 defines the class of persons and entities eligible to obtain crime victim assistance grants to fund positions of victim assistance coordinator and crime victim liaison. Adopted §63.15 sets forth minimum and maximum amounts of funding that may be applied for and permissible uses of VAG funds. Adopted §63.17 limits the use of grant funds to payment of salaries only and stipulates that the grant funds may not be used to pay fringe benefits, such as retirement, health insurance, etc., nor office expenses or equipment expenses. Adopted §63.19 states the requirement that individuals employed in positions funded by VAG funds provide direct services to victims of crime.

Subchapter C (Grants for Statewide Training for Programs That Benefit Victims of Sexual Assault and to Purchase Forensic Exam Equipment, §§63.31, 63.33, 63.35, 63.37, and 63.39) describes permissible uses, eligible applicants, and minimum and maximum amounts of funding for grant funds applied for and awarded for statewide training for programs that benefit victims of sexual assault and to purchase forensic exam equipment for communities with certified Sexual Assault Nurse Examiner programs. Adopted §63.31 describes the purposes for which grant funds may be used. Adopted §63.33 defines entities that may be eligible to apply for grant funding. Adopted §63.35 establishes the minimum and maximum amounts for grant funding. Adopted §63.37 specifies various conditions and requirements associated with grantee tasks and activities such as the requirement that a grantee must provide volunteer services in connection with a VAG-funded project. Adopted §63.39 sets forth the adopted rule relating to the use of grant funds for travel expenses.

Subchapter D (Grant Application, Scope of Grant, Approval, §§63.51, 63.53, 63.55, and 63.57) describes the application process, including the requirement of a timely-filed application, the OAG review criteria, and discretionary determination of funding by the OAG. Adopted §63.51 establishes applicants to complete and submit an Application Kit to the OAG Grant Coordinator and requires one original and one duplicate to be filed by the first working day in May of each year for consideration for the coming fiscal year. Adopted §63.53 requires the OAG to review and evaluate timely filed applications, establishes full discretion in the OAG for all funding decisions, and establishes other criteria for the OAG to consider in funding decisions. Adopted §63.55 establishes the grant funding period and criteria for awarding second-year funding on first year performance. Adopted §63.57 addresses the ineligibility of indirect costs as an expenditure of VAG funds.

Subchapter E (Funding of Grants, §§63.71, 63.73) provides for project approval and funding outside of the annual grant cycle. This subchapter also declares that the actual funding of approved new and existing grant projects is contingent on the availability of funds. Adopted §63.71 provides for approval of nonstandard grant funding outside of the annual grant cycle. Adopted §63.73 declares that actual funding of approved new and existing grant projects is contingent on availability of funds.

Subchapter F (Grant Budget Requirements, §§63.81, 63.83, 63.85, 63.87, 63.89, and 63.91) sets forth rules governing the use of VAG funds and documentation of such use relating to personnel. The subchapter also sets forth requirements related to expenditures for professional and contractual services, rules concerning transportation, travel, and training, and use of VAG funds for equipment. The subchapter also addresses limitations on the use of grant funds.

Adopted §63.81 governs salary for VAG-funded positions, requirements concerning verification of personnel licenses and certifications, verification of personnel time and project records, and related rules concerning grant funds for personnel. Adopted §63.83 sets out prohibitions on dual compensation and documentary requirements that a grantee must meet with regard to contracts, travel allowances, reimbursements, related party transactions, and consistency with OAG professional rate schedules.

Adopted §63.85 details rules applicable to grantees concerning transportation, travel, and training expenditures and the documentation of same. Adopted §63.87 details rules applicable to grantees concerning the acquisition of equipment. Adopted §63.89 sets forth necessary OAG approvals and rules governing the use of and prohibitions regarding the use of VAG funds for supplies and direct operating expenses. Adopted §63.91 prohibits the use of grant funds for construction costs and land acquisition costs.

Subchapter G. (Special Conditions and Required Documents, §§63.101, 63.103, 63.105, 63.107, 63.109, 63.111, 63.113, 63.115, 63.117, 63.119, 63.121, 63.123, and 63.125) addresses documents which VAG applicants are required to submit to the OAG for approval. All of these documents are necessary for the OAG to determine that grant funds are being awarded to entities which follow operating procedures consistent with state and federal law. Adopted §63.101 requires a current statistical report of anticipated productivity to be filed with the application for grant. Adopted §63.103 requires that the application for grant include a signed Equal Employment Opportunity Program Certification under certain circumstances. Adopted §63.105 requires that the application include an executed copy of a Certification Regarding Lobbying that no Victims Assistance Grant Funds have been paid or will be paid to any person for purposes of lobbying in connection with the grant. Adopted §63.107 requires that the application include a signed copy of the Nonprocurement Debarment Certification. Adopted §63.109 requires the application to include a signed copy of a Drug-Free Workplace Certification. Adopted §63.111 requires the application to include a signed copy of a Uniform Grants Management Standards Certification. Adopted §63.113 requires the application to include a signed copy of a Certified Assurances Certification. Adopted §63.115 requires the application to include a signed copy of a Cooperative Working Agreement which shall include statements that the project will be carried out in a significant part due to the cooperation of outside organizations and stipulates parties who have authority to execute such agreements. Adopted §63.117 requires pre-approval of the OAG for grantees to use grant funds to purchase equipment with a cost exceeding $25,000. In addition, adopted §63.117 establishes the process and documentation necessary for submission for review and approval of equipment purchases by the OAG. Adopted §63.119 requires that prior to execution of any contract in excess of $25,000, the grantee must submit said contract and documentation stipulated for review and approval by the OAG. In addition, adopted §63.119 establishes criteria and processes for the consideration of entering into contracts by grantees using grant funds. Adopted §63.121 requires that governmental entities and nonprofit organizations who submit applications obtain a resolution from the governing body that Designates and authorizes officials the power to accept, reject, or amend a grant. The resolution must state that in the event of misuse of grant funds, a security bond will be obtained and the funds will be returned in full. In addition, the resolution must contain non-supplanting language. Adopted §63.123 requires an applicant to submit a current organizational chart reflecting grant and non-grant funded positions. Adopted §63.125 permits the OAG to award a grant conditioned upon a post-award survey and establishes procedures for conducting the post-award survey.

Subchapter H. (Award and Grant Acceptance, §§63.127, 63.129, and 63.131) sets forth the process for the award and acceptance of grants. Adopted§63.127 requires to applicant to accept or reject in writing a grant award within 45 days of the grant award date and provides for deobligation of funds in the event a timely response is not received. This section includes the requirement that a grantee implement the VAG within 60 days of the designated start date or face relinquishment of the grant award. The section also sets forth the OAG's full discretion in approving project funding and determining grantee compliance with OAG policies. Adopted d §63.129 outlines procedures for (i) an applicant's accepting or rejecting a grant award and (ii) an applicant's response to deficiencies in a filed application. Adopted §63.131 describes the process that an applicant may pursue in the event that the OAG denies an application or part of an application and sets forth the final decision-making authority of the OAG.

Subchapter I (Administering Grants, §§63.141, 63.143, 63.145, 63.147, 63.149, 63.151, 63.153, 63.155, 63.157, 63.159, 63.161, 63.163, 63.165, 63.167, 63.169, 63.171, 63.173, 63.175, 63.177, 63.179, 63.181, 63.183, and 63.185) proposes rules for the administration of VAGs. The rules establish duties and responsibilities for grant officials, requirements regarding records, requests for funds procedures, grant adjustments, copyrights, procurement procedures, and rules relating to property management, bonding, and insurance. The subchapter addresses OAG authority to withhold funds or terminate a grant under certain conditions and a grantee's ability to request a reconsideration of a decision to withhold funds or terminate a grant project. Adopted Subchapter G also contains procedures for grantee self- evaluation of a project, submission of regular progress reports to the OAG, evaluation of third party contracts, if any, and winding up a VAG administration.

Adopted §63.141 requires that each grantee designate three grant officials whose duties are described in the section. Adopted §63.143 requires OAG approval if grant funds are obligated prior to the start date or later than the ending date of the grant period. Adopted §63.145 sets forth grant records retention requirements for a period of five years and availability of the records in an electronic format for purposes of audit. Adopted §63.147 requires the grantee to file financial expenditure reports each calendar quarter on forms promulgated by the OAG and the consequences for filing to file a timely report. Adopted §63.149 requires the grantee to maintain an inventory report on file in the principal office of the grantee. Adopted §63.151 establishes time limits for the filing of the grantee's final request for funds and the consequences of a grantee's failure to submit accurate reports in a timely manner. Adopted §63.153 describes the procedure for a grantee to follow in submitting a request for a grant adjustment. Adopted §63.155 establishes the OAG's claim to a license to use copyrighted material where the purchase of such copyright was funded in any part by OAG funds. Adopted §63.157 governs procurement procedures, including OAG review and approval, to be used by a grantee who purchases equipment or professional or consultant services in excess of $25,000. §63.159 establishes the Uniform Grant Management Standards published by the Governor's Office of Budget and Planning as the governing property management standards for a grantee. Adopted §63.161 provides guidance regarding equipment disposition methods where a grantee that has purchased equipment in whole or in part with OAG funds is no longer funded by the OAG. Adopted §63.163 provides guidance regarding the transfer of title to equipment and nonexpendable personal property acquired with grant funds. Adopted §63.165 sets forth a grantee's bonding and insurance requirements.

Adopted §63.167 addresses the OAG's authority and discretion to withhold funds from a specific project or from all projects operated by a grantee if any of the enumerated conditions or situations occur and a grantee's ability to request a reconsideration of a decision by the OAG to withhold funds. Adopted §63.169 outlines the procedures regarding cancellation or termination of a grant, the consequences of such action, and a grantee's ability to request a reconsideration of a decision by the OAG to terminate a grant project.

Adopted §63.171 sets for the requirements for de-obligation of grant funds at the end of the funding period and provides for final expenditure reports to be submitted within a certain time limit. Adopted §63.173 requires the grantee to obligate and expend all outstanding liabilities within certain specified time frames. Adopted §63.175 requires the grantee and its personnel to report immediately upon discovery to the OAG and the prosecuting attorney's office any violation of the law appertaining to the use and expenditure of grant funds. Adopted §63.177 contains a prohibition against behavior constituting a conflict of interest on the part of any person affiliated with the VAG project. Adopted §63.179 imposes contract monitoring and self-evaluation requirements on a grantee. In this section, the OAG seeks to ensure that a grantee takes a sustained, active role in assessing actual delivery of service to victims of crime through the VAG project. Adopted §63.181 imposes the requirement for the filing of timely and complete progress reports. Adopted §63.183 requires a grantee who uses grant funds to contract with a third party to maintain proper records to ensure that the requirements of the contract are met. Adopted §63.185 establishes the requirement for accuracy of grant records and the recourse for providing false information.

Subchapter J (Program Monitoring and Audits, §§63.191, 63.193, and 63.195) contains provisions concerning OAG monitoring activities, compliance reviews, and auditing authority and standards as well as procedures for grantee appeals of OAG decisions relating to audit findings.

Adopted §63.191 explains that OAG monitoring will attempt to ensure that a grantee is achieving VAG performance goals and that grant awards are used in accord with applicable laws, rules, and grant agreements. Adopted §63.193 requires a grantee to be required to file independent annual audits in accordance with UGMS and GAAS. Adopted §63.195 contains guidance as to the substance of OAG reviews and the substance of required annual audits.