Part 9. TEXAS ON-SITE WASTEWATER TREATMENT RESEARCH COUNCIL

Chapter 286. ON-SITE WASTEWATER TREATMENT RESEARCH COUNCIL

The Texas On-Site Wastewater Treatment Research Council (Council) proposes new Chapter 286 containing §§286.1, 286.2, 286.9, 286.14, 286.31, 286.32, 286.34, 286.51 - 286.53, 286.74, 286.91 - 268.98 and 286.131 concerning the On-Site Wastewater Treatment Research Council under TAC Title 31 (relating to Natural Resources and Conservation). This proposed new chapter will replace existing Chapter 286 concerning the On-Site Wastewater Treatment Research Council under TAC Title 30 (relating to Environmental Quality).

EXPLANATION OF PROPOSED RULE

The Council is proposing new Chapter 286 to move its rules to Title 31, Part 9, relating to the Texas On-Site Wastewater Treatment Research Council, to provide for clearer administration of its programs as a separate state agency from the Texas Natural Resource Conservation Commission (the Commission). Currently the Council rules are imbedded within Title 30, Part I, which is reserved for rules of the Commission. As per the Texas Health and Safety Code, Chapter 367, relating to the On-Site Wastewater Treatment Research Council, the Council is a separate state agency for which the Commission provides staff and other administrative support.

While the entire proposed chapter will be new, there are only a few changes from the existing rules that are being proposed by the Council. These are amendments to §286.2 (relating to Definitions), §286.34 (relating to Indemnification), §286.51 (relating to Applied Research Grants), §286.52 (relating to Demonstration and Monitoring Grants), §286.53 (relating to Technology Transfer Grants), §286.74 (relating to Mailing Address), §286.91 (relating to Receipt of Proposals), §286.92 (relating to Council Review), §286.93 (relating to Discussions of Proposals), §286.96 (relating to Awards), and §286.131 (relating to Grants and Donations). Throughout the rules, cross references and citations to other statutes have been updated.

The Council will not be proposing the following existing sections be carried over to new Chapter 286: §286.3 (relating to Meetings), §286.4 (relating to Transaction of Official Business), §286.5 (relating to Attendance), §286.6 (relating to Agendas), §286.7 (relating to Minutes), §286.8 (relating to Elections), §286.10 (relating to Committees), §286.11 (relating to Executive Secretary), §286.12 (relating to Reimbursement for Expenses), §286.13 (relating to Official Record), §286.14 (relating to Impartiality and Non-discrimination), and §286.33 (relating Funding). The Council finds that these sections are redundant with the statute and their absence will provide the Council with more flexibility in addressing its internal management and organization.

New proposed Subchapter A (relating to Council Procedures) consists of the existing §§286.1 (relating to Purpose and Scope), 286.2 (relating to Definitions), 286.9 (relating to Officers), and 286.14 (relating to Impartiality and Non-discrimination) under Title 30. The proposal contains changes from existing §286.2(a)(9) under Title 30, to correct the name of the Uniform Grant Management Standards from Uniform Grant and Contract Management Standards as cited in the Texas Government Code, Chapter 783, and the rules promulgated under 1 TAC §§5.141-5.167.

New proposed Subchapter B (relating to Grants) consists of the existing §§286.31 (relating to Purpose), 286.32 (relating to Council Objectives), 286.34 (relating to Indemnification), 286.51 (relating to Applied Research Grants), 286.52 (relating to Demonstration and Monitoring Grants), 286.53 (relating to Technology Transfer Grants), 286.74 (relating to Mailing Address), 286.91 (relating to Receipt of Proposals), 286.92 (relating to Council Review), 286.93 (relating to Discussion of Proposals), 286.94 (relating to Status of Proposals), 286.95 (relating to Decision Making), 286.96 (relating to Awards), 286.97 (relating to Denials), and 286.98 (relating to Tabling Decision) under Title 30.

The proposal contains changes from existing §286.34 under Title 30, relating to Indemnification, to clarify language regarding indemnification of the Council due to the action resulting from grantee's performance under the grant award. The Council does not believe that the receipt of a grant award by the grantee will result in liability, but the Council wishes to ensure that the state will not be subject to liability based on grantee's conduct in performance of the grant contract.

The proposals also contains changes from existing §286.51, relating to Applied Research Grants under Title 30, to add language consistent with the requirements of Texas Health and Safety Code, §367.008(b)(1), and to clarify language regarding unsolicited proposals.

The proposal contains changes from existing §286.52, relating to Demonstration and Monitoring Grants under Title 30, to add language to describe a demonstration and monitoring project, make a distinction between solicited and unsolicited projects, and delete the restriction of awarding only one grant per designated period.

The proposal contains changes from existing §286.53, relating to Technology Transfer Grants under Title 30, to clarify language regarding unsolicited proposals.

The proposal contains changes from existing §286.91, relating to Receipt of Proposals under Title 30, to clarify that the Council is not required to review the proposals at the next meeting and changes from existing §286.92, relating to Council Review under Title 30, to clarify the amount of time required for the Council members to review proposals.

The proposal contains changes from existing §286.93, relating to Discussion of Proposals under Title 30, to clarify when the proposals will be discussed and that the proposal will be included on the agenda to be posted with the open meeting notice.

The proposal contains changes from existing §286.96, relating to Awards under Title 30, to clarify that a written contract is required to be executed before receiving any funds and to add language to clarify the intent of the Council to fund indirect costs only if required by law to better utilize the funds for research, demonstration, and technology transfer projects.

New proposed Subchapter C (relating to Grants and Donations to the Council) consists of the existing §286.131 (relating to Grants and Donations) under Title 30.

FISCAL NOTE

Warren Samuelson, Executive Secretary for the Council, has determined that for the first five-year period the provisions as proposed are in effect, there will be no fiscal implications for state or local governments as a result of administration or enforcement of the proposed amendments. Enforcement of the rules will not result in an increase in workload for the Council staff.

PUBLIC BENEFIT

Mr. Samuelson has also determined that for each year of the first five years the proposed revisions are in effect, the public benefit anticipated from enforcement and compliance with the proposed rules will be clearer procedures for developing grant proposals for research, demonstration, and technology transfer projects, which could result in a cost savings to the homeowners with on-site sewage facility systems.

SMALL AND MICRO-BUSINESS IMPACT ANALYSES

The proposed rules are not anticipated to impose costs on individuals, small businesses, or micro- businesses.

DRAFT REGULATORY IMPACT ANALYSIS

The Council has reviewed the proposed rulemaking in light of the regulatory analysis requirements of Texas Government Code, §2001.0225, and has determined that the rulemaking is not subject to §2001.0225 because it does not meet the definition of a "major environmental rule" as defined in the Texas Government Code.

TAKINGS IMPACT ASSESSMENT

The Council has prepared a takings assessment for these rules pursuant to Texas Government Code, 2007.043. The purpose of this rulemaking is to eliminate redundancy in the rules and to clarify, correct, and add procedures for awarding grants and distributing grant money. Therefore, these revisions will not constitute a takings under Texas Government Code, Chapter 2007.

COASTAL MANAGEMENT PROGRAM CONSISTENCY REVIEW

The Council has determined that the proposed rulemaking does not relate to an action subject to the Texas Coastal Management Program (CMP) in accordance with the Coastal Coordination Act of 1991, as amended (Texas Natural Resources Code, §§33.201 et seq.).

SUBMITTAL OF COMMENTS

Written comments may be submitted to the Executive Secretary of the Council, Warren Samuelson, P.E., Texas Natural Resource Conservation Commission, Installer Certification Section, MC-178, P.O. Box 13087, Austin, Texas 78711-3087 or faxed to (512) 239-6390. All comments should reference Chapter 286, On-Site Wastewater Treatment Research Council. Comments must be submitted no later than 5:00 p.m. on February 27, 2000. For further information, please contact Warren Samuelson at (512) 239- 4799.

Subchapter A. COUNCIL PROCEDURES

31 TAC §§286.1, 286.2, 286.9, 286.14

STATUTORY AUTHORITY

These new sections are proposed under the authority and effect the provisions of Texas Health and Safety Code, §367.008, which authorizes the Council to establish procedures for awarding competitive grants and disbursing grant money. The new proposed chapter has been reviewed by legal counsel from the Office of the Attorney General and has been found to be within the Council's authority to adopt.

No other codes, statutes, or rules will be affected by this proposal.

§286.1.Purpose and Scope.

(a)

The purpose of this subchapter is to implement the provisions of Texas Health and Safety Code, Chapter 367, concerning the On-site Wastewater Treatment Research Council.

(b)

The scope of this subchapter covers the organization, administration, and other general procedures and policies concerning the council's operation.

§286.2.Definitions.

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

(1)

Commission - The Texas Natural Resource Conservation Commission.

(2)

Council - The On-site Wastewater Treatment Research Council.

(3)

Demonstrate - To make a display of, to show outwardly, hence, to show or prove publicly as by the actual operation, the special value or merits of an article or product with a view to its introduction or sale, also to teach by demonstration, to explain, or illustrate.

(4)

Donor - One or more individuals or organizations that offer to give financial assistance to the council.

(5)

Executive Secretary - An employee of the commission who acts as a liaison between the council and the commission.

(6)

Officer or member - Any one of the eleven members of the council that has duly been appointed by the governor.

(7)

Other council representative - An employee of the council, an employee of the commission acting on behalf of the council, and any other person(s) acting on behalf of the council.

(8)

Research - Studious inquiry or examination and usually critical and exhaustive investigation or experimentation having for its aim the discovery of new facts and their correct interpretation, the revision of accepted conclusions, theories or laws in the light of newly discovered facts or the practiced application of such new or revised conclusions.

(9)

UGMS - The Uniform Grant Management Standards issued by the Governor's Office of Budget and Planning pursuant to the Uniform Grant Management Act, Texas Government Code, Chapter 783, and the rules promulgated thereunder in 1 TAC §§5.141-5.167.

§286.9.Officers.

(a)

Chairperson.

(1)

The chairperson shall preside at all council meetings at which he or she is in attendance and perform all duties prescribed by law or this chapter.

(2)

The chairperson is authorized by the council to make day-to-day operational decisions regarding council activities in order to facilitate the responsiveness and effectiveness of the council.

(3)

The chairperson is authorized to make expenditures on a monthly basis as approved by the Council in its annual operating budget. In the event of any non-budgeted items, the chairperson is authorized to make expenditures of no more than $1500 per quarter.

(b)

Vice-chairperson.

(1)

The vice-chairperson shall perform the duties of the chairperson in case of the absence or disability of the chairperson.

(2)

In case the office of the chairperson becomes vacant, the vice-chairperson shall serve until a successor is elected.

§286.14.Impartiality and Non-discrimination.

(a)

The council shall make no decision in the discharge of its statutory authority with regard to any person's race, religion, color, sex, or national origin.

(b)

Any council member who is unable to be impartial in the determination of an applicant's eligibility for a grant shall declare this to the council in an open meeting and shall not participate in any council proceedings involving that applicant. This disclosure shall be entered in the minutes of the meeting.

(c)

Any council member who has or has had any interest, including any pecuniary interest, in any grant proposal or grant applicant shall so inform the council in an open meeting and shall not participate in any council proceedings involving that grant proposal. This disclosure shall be entered in the minutes of the meeting.

(d)

A council member is not eligible to submit a grant proposal, or be engaged as subcontractor or paid consultant for any applicant or any awarded project.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on January 12, 2000.

TRD-200000161

Warren Samuelson

Executive Secretary

Texas On-Site Wastewater Treatment Research Council

Earliest possible date of adoption: February 27, 2000

For further information, please call: (512) 239-4799

31 TAC §§286.31, 286.32, 286.34, 286.51 - 286.53, 286.74, 286.91 - 286.98

STATUTORY AUTHORITY

These new sections are proposed under the authority and effect the provisions of Texas Health and Safety Code, §367.008, which authorizes the Council to establish procedures for awarding competitive grants and disbursing grant money. The new proposed chapter has been reviewed by legal counsel from the Office of the Attorney General and has been found to be within the Council's authority to adopt.

No other codes, statutes, or rules will be affected by this proposal.

§286.31.Purpose.

(a)

The purpose of the On-site Wastewater Treatment Research Council competitive grants is to enhance the development of on-site treatment systems which will improve the quality of and/or reduce the cost of on-site wastewater treatment.

(b)

On-site wastewater treatment is a system of treatment devices or disposal facilities that is used for the disposal of domestic sewage, excluding liquid waste resulting from the processes used in industrial and commercial establishments, and is located on the site where the sewage is produced, and produces not more than 5,000 gallons of waste a day.

(c)

Grant applications received in response to council solicitation will have highest priority.

§286.32.Council Objectives.

The objectives of the council in considering projects are:

(1)

To determine the regional suitability and effectiveness of on-site wastewater treatment alternatives; and

(2)

To demonstrate and evaluate appropriate on-site wastewater treatment technology in the various geographic and climatic areas of Texas.

§286.34.Indemnification.

A grantee shall be required to execute an indemnification and hold harmless agreement in favor of the council and the state. Neither the council nor the state shall in any way be liable for any damage, infringement, cause of action, or any other action resulting from grantee's performance under the grant award.

§286.51.Applied Research Grants.

(a)

Eligibility for applied research grants. The following are the criteria which identify an applicant's eligibility for an applied research grant.

(1)

The applicant must show that the specific application of the proposed research is for the improvement of the quality of wastewater treatment and/or reducing the cost of providing wastewater treatment to consumers.

(2)

The research project must be conducted in Texas, and must concern technology or systems applicable in Texas.

(3)

Corporations organized under the Texas Business Corporations Act must not be delinquent in taxes owed the state under the Texas Tax Code, Chapter 171.

(b)

Information required for applied research grants. The following information must be submitted in writing for each applied research grant proposal:

(1)

if the proposal is in response to the council's solicitation or request, the applicant shall include the proposal title and the method of improving the quality of wastewater treatment and/or reducing the cost of providing wastewater treatment to consumers; or

(2)

if the proposal is submitted on an unsolicited basis and does not address a specific project identified by the council, the applicant shall include the method of improving the quality of wastewater treatment and/or reducing the cost of providing wastewater treatment to consumers;

(3)

for applicants who are affiliated with an accredited college or university in Texas, a verified statement from the college or university's president, or dean of the appropriate program, describing the affiliation in detail;

(4)

a discussion of how the applicant intends to fulfill the requirements of the proposal, including an identification of the potentials for, or plans to incorporate and use, proprietary information;

(5)

resumes of principals, potential subcontractors, and principal investigators (including names, addresses, and phone numbers), and a summary of pertinent experience of each entity;

(6)

site(s) of proposed project;

(7)

a list of tasks and a time schedule for tasks to be completed by principals and subcontractors;

(8)

recommendations for implementing research results, including identification, and involvement of potential users;

(9)

the total project cost, the amount(s) and source(s) of the local matching funds and services, and the total amount requested from the council;

(10)

a detailed project budget and timetable, and a detailed task budget for all aspects of the project;

(11)

all information required to satisfy the criteria for eligibility as set out in this section;

(12)

all information necessary to evaluate the application under the selection criteria as set out in this section;

(13)

a list of reports, plans, products and other deliverables the applicant will provide to the council;

(14)

information of other sources of funding, matching funds and like-kind funding or matching grants, if applicable;

(15)

suggested progress monitoring procedures;

(16)

any other pertinent data as deemed necessary by the council; and

(17)

evidence that the applicant is insured or can become insured for the tasks undertaken as a result of receiving a grant.

(c)

Criteria for selection of applied research grants. The council will review the grant proposals. Grants may be awarded based upon the following criteria:

(1)

the availability of matching funds and other sources of funding for the proposal;

(2)

the urgency of need for the research;

(3)

the degree to which the proposal is responsive to the overall council objectives listed in these rules;

(4)

the qualifications of project staff and directly-related project and staff experience;

(5)

the reasonableness of the proposed budget and time schedules;

(6)

project organization and management, including project monitoring procedures;

(7)

statewide or regional application of research results;

(8)

technical, economic and environmental merit of the proposal;

(9)

relevance to and probability that the research will result in the improvement of the quality of wastewater treatment and reducing the cost of providing wastewater treatment to consumers; and

(10)

any other information as may be required for the specific project.

§286.52.Demonstration and Monitoring Grants.

(a)

The following are the criteria which identify an applicant's eligibility for a demonstration and monitoring grant.

(1)

The applicant must show that the proposed project provides a demonstration of the improvement of the treatment and disposal of wastewater and/or reduction of the cost of providing that treatment to consumers. The applicant must provide the protocol for monitoring (testing and calibration) this project to demonstrate the project's effectiveness.

(2)

An applicant must be able to provide the following services:

(A)

a proper area for outdoor research and demonstration;

(B)

a proper area for controlled research and demonstration;

(C)

basic laboratory facilities;

(D)

testing and calibration equipment;

(E)

untreated domestic sewage for demonstrations;

(F)

a permitted area for land disposal application or a license specifically for alternative/special applications;

(G)

adequate assistance personnel; and

(H)

other facilities for instruction and seminars.

(3)

An applicant must show that all calibration, testing, and demonstration will be conducted so that groundwater and surface water is protected and the health and welfare of the public will be protected.

(4)

The applicant must conduct the testing and calibration in Texas.

(5)

Corporations organized under the Texas Business Corporations Act must not be delinquent in taxes owed the state under the Texas Tax Code, Chapter 171.

(b)

Information required for demonstration and monitoring grants. The following information must be submitted in writing for each demonstration and monitoring grant:

(1)

If the proposal is in response to the council's solicitation or request, the applicant shall include the proposal title and the method of improving the quality of wastewater treatment and/or reducing the cost of providing wastewater treatment to consumers through the demonstration project.

(2)

If the proposal is submitted on an unsolicited basis and does not address a specific project identified by the council, the applicant shall include the method of improving the quality of wastewater treatment and/or reducing the cost of providing wastewater treatment to consumers through the demonstration project.

(3)

a discussion of how the applicant intends to fulfill the requirements of the proposal;

(4)

resumes of principals, potential subcontractors, and principal investigators (including names, addresses, and telephone numbers), and a summary of pertinent experience of each entity;

(5)

site(s) of proposed project;

(6)

a detailed description of the facilities to be provided including land area, laboratories, classroom space, auditoriums, and other applicable facilities proposed;

(7)

a description of how the applicant intends to provide the raw, untreated sewage to the units being tested, the amount of flow available to the units, and emergency plans for failed units;

(8)

a description of how the applicant intends to protect groundwater and surface water, as well as the protection of public health and welfare during demonstration;

(9)

a detailed description of the testing equipment to be provided, including any equipment to be purchased through the awarding of the grant;

(10)

an explanation of the proposed calibration and testing techniques;

(11)

the total project cost, the amount(s) and source(s) of the local matching funds and services, and the total amount requested from the council;

(12)

a detailed project budget;

(13)

a commitment date for work to begin and a progress time schedule;

(14)

the designation of a contact person for additional information;

(15)

all information required to satisfy the criteria for eligibility as specified in this section;

(16)

any other information as deemed necessary by the council; and

(17)

evidence that the applicant is insured or can become insured for the tasks undertaken as a result of receiving a grant.

(c)

Criteria for selection for demonstration and monitoring grants. The council will review the grant proposals. Grants may be awarded based upon the following criteria:

(1)

the availability of matching funds and other sources of funding for the proposal;

(2)

the degree to which the proposal is responsive to the overall objectives listed in this section;

(3)

the qualifications of project staff and directly-related project and staff experience;

(4)

the reasonableness of the proposed budget and time schedules;

(5)

project organization and management, including project monitoring procedures;

(6)

technical and environmental merit of the proposal;

(7)

the method of assuring the protection of groundwater, surface water, as well as the protection of public health and welfare; and

(8)

any other information as may be required for the specific project.

§286.53.Technology Transfer Grants.

(a)

The following are the criteria which identify an applicant's eligibility for a technology transfer grant:

(1)

an applicant must be able to provide the technology transfer within the State of Texas.

(2)

corporations organized under the Texas Business Corporations Act must not be delinquent in taxes owed the state under the Texas Tax Code, Chapter 171.

(b)

Information required for technology transfer grants. The following information must be submitted in writing for each technology transfer grant proposal:

(1)

if the proposal is in response to the council's solicitation or request, the specific proposal title shall be included in the proposals; or

(2)

if the proposal is submitted on an unsolicited basis and does not address a specific project identified by the council, the applicant shall identify the category of technology transfer the applicant proposes, using one of the categories listed under subsection (b)(3) of this section;

(3)

a technology transfer must be from one or more of the following categories:

(A)

educational courses;

(B)

seminars;

(C)

symposia;

(D)

publications (by printed word or video tape); or

(E)

other forms of information dissemination.

(4)

a discussion of how the applicant intends to fulfill the requirements of the proposal, including distribution of materials at the end of the grant period;

(5)

resumes of principals, potential subcontractors and principal investigators (including names, addresses, and phone numbers), and a summary of pertinent experience of each entity;

(6)

a list of the types of information dissemination proposed with the estimated budget and timetable for each type;

(7)

information of other sources of funding, matching funds and like-kind funds or matching grants, if possible;

(8)

all information required to satisfy the criteria for eligibility as specified in this section;

(9)

any other pertinent data as deemed necessary by the council; and

(10)

evidence that the applicant is insured or can become insured for the tasks undertaken as a result of receiving a grant.

(c)

Criteria for selection for technology transfer grants. The council will review the grant proposals. Grants may be awarded based upon the following criteria:

(1)

the availability of matching funds and other sources of funding for the proposal;

(2)

the degree to which the proposal is responsive to the overall objectives listed in this section;

(3)

the qualifications of project staff and directly-related project and staff experience;

(4)

the quality of examples submitted to the council, if any;

(5)

the reasonableness of the proposed budget and time schedules;

(6)

project organization and management, including project monitoring procedures;

(7)

technical, economic, and environmental merit of the proposal; and

(8)

any other information as may be required for the specific project.

§286.74.Mailing Address.

All grant proposals must be filed in writing with 20 copies attached to the Executive Secretary, On-site Wastewater Treatment Research Council, in care of the Installer Certification Section, Texas Natural Resource Conservation Commission, P. O. Box 13087, Austin, Texas 78711.

§286.91.Receipt of Proposals.

(a)

Upon receipt of a proposal, the executive secretary shall send each council member a copy of the grant proposal and coordinate commission review of the application for eligibility requirements.

(b)

The executive secretary will acknowledge receipt of a proposal to the applicant, with notification of the date of the council meeting at which the proposal may be discussed by the council.

§286.92.Council Review.

(a)

The council shall affirm or deny eligibility as soon as practicable. The council will only consider those grant proposals that are eligible under these rules.

(b)

Once a grant proposal is determined to be eligible for consideration, it may be submitted to a technical review committee who will make recommendations based on applicable statutory requirements, council objectives, rules, guidelines, fiscal constraints, and administrative policies.

(c)

The council members shall have no less than 14 calendar days to review the proposal prior to the meeting at which a proposal is to be considered.

(d)

The council may decide to award the grant, award the grant with modifications, or to reject the grant proposal. All grant award decisions by the council are final.

§286.93.Discussion of Proposals.

(a)

Each eligible proposal which will be discussed at a council meeting shall be listed as an agenda item on the open meeting notice posted by the Secretary of State. Proposals submitted within 21 days of a council meeting may not be considered at that meeting.

(b)

The council may elect to refer the application to a committee for review of technical merits. The chairman may request commission assistance with the technical review.

(c)

For proposals deemed meritorious by the council, the applicant shall be given a designated time at the next meeting for an oral presentation of the proposal.

§286.94.Status of Proposals.

The executive secretary shall report to the council at each meeting the status of all grant proposals.

§286.95.Decision Making.

The council will evaluate and discuss each eligible proposal and will decide to award, deny, or table a grant based upon the funding available and the selection criteria. All council decisions are final.

§286.96.Awards.

(a)

All applicants awarded a grant will be notified of the award in writing by the executive secretary.

(b)

All grantees will be required to execute a written contract with the council prior to receiving grant funds.

(c)

Grantees/applicants shall comply with all applicable state and federal statutes, rules, regulations, and guidelines, including the Uniform Grant Management Standards (UGMS) adopted by the Governor's Office of Budget and Planning, and with the terms and conditions of the contract.

(d)

The council shall not be liable for any expenses incurred by an applicant prior to award of the grant.

(e)

All grant awards are subject to continuation of state appropriations.

(f)

The Council shall not reimburse indirect costs, except as required by law.

§286.97.Denials.

(a)

All applicants denied an award will be notified of the denial and the reason(s) therefor in writing by the executive secretary.

(b)

Any applicants denied funding will have the right to request one reconsideration of the project by the council. The request shall be made in writing and shall be reviewed at the next quarterly meeting.

(c)

The council shall not be liable for any expense incurred by an applicant if funding for the grant application is denied.

§286.98.Tabling Decision.

The council may table a decision on a proposal in order to gather more information or to await confirmation from the state comptroller of the availability of funds. Any project so tabled shall be given priority for discussion at the next scheduled meeting of the council.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on January 12, 2000.

TRD-200000162

Warren Samuelson

Executive Secretary

Texas On-Site Wastewater Treatment Research Council

Earliest possible date of adoption: February 27, 2000

For further information, please call: (512) 239-4799

31 TAC §286.131

STATUTORY AUTHORITY

The new section is proposed under the authority and effect the provisions of Texas Health and Safety Code, §367.008, which authorizes the Council to establish procedures for awarding competitive grants and disbursing grant money. The new proposed chapter has been reviewed by legal counsel from the Office of the Attorney General and has been found to be within the Council's authority to adopt.

No other codes, statutes, or rules will be affected by this proposal.

§286.131.Grants and Donations.

(a)

General provisions.

(1)

Purpose. The purpose of this section is to establish procedures for the acceptance of grants and donations made to the council and to create standards of conduct to govern the relationship between the council and the donor.

(2)

General authority to accept grants and donations. The Texas Health and Safety Code, Chapter 367, authorizes the On-Site Wastewater Treatment Research Council to accept grants and donations from other sources to supplement the on-site wastewater treatment permit fee account. The council may accept grants and donations from private and public sources.

(b)

Acceptance of donations.

(1)

It shall be the policy of the council to accept only those donations that advance the statutory purposes of the council as set forth in Texas Health and Safety Code, Chapter 367.

(2)

All donations will be accepted on behalf of the council. No officer or other council representative can accept donations in their individual capacity.

(3)

The donor and the council shall execute a donation agreement which includes the following information:

(A)

a description of the donation, including a statement of the value;

(B)

a statement by the donor attesting to its ownership rights in the donation and its authority to make the donation;

(C)

the signature of the donor or its official representative;

(D)

the signature of the council chairperson or other person which the council has authorized to execute the donation agreement;

(E)

any conditions restricting the use of the donations if the donor imposes restrictions agreed to by the council;

(F)

the mailing address of the donor and principal place of business if the donor is a business entity;

(G)

a statement identifying any official relationship between the donor and the authority; and

(H)

a statement advising the donor to seek legal and/or tax advise from its own legal counsel.

(4)

The chairperson shall report all donations received at the next regular meeting of the council.

(c)

Administration of funds.

(1)

Grants and donations shall be deposited to the credit of the on-site wastewater research account of the general revenue fund and may be disbursed as the council directs and consistent with Texas Health and Safety Code, Chapter 367. All gifts of money are automatically appropriated to the council in accordance with the General Appropriations Act.

(2)

Donations will be used for the purpose specified by the donor, as nearly as practicable, and in accordance with state, federal, and local law. In no event shall donations be used for purposes not within the council's statutory authority.

(d)

Donations from individuals and/or entities receiving grant funds. The council shall adhere to all state ethics laws, regulations and policies relating to the acceptance of gifts from persons appearing before and receiving funds from state agencies.

(e)

Standards of conduct between the council and private donors.

(1)

Standards of conduct of officers, members, and other council representatives are governed by the Texas Government Code, Title 5, Chapter 572;

(2)

A council member or other council representative shall not accept or solicit any gift, favor, or service from a donor that might reasonably tend to influence his official conduct or that the council member or other council representative knows is being offered with the intent to influence official conduct;

(3)

A council member or other council representative shall not accept employment or engage in any business or professional activity with a donor which the council member or other council representative might reasonably expect would require or induce him to disclose confidential information acquired by reason of his position, or which could reasonably be expected to impair the council member's independence of judgement in the performance of his/her official position;

(4)

A member or other representative of the council shall not authorize a donor to use property of the council, unless the property is used in accordance with a specific provision of a contract between the council and the donor;

(5)

A council member or representative shall not make personal investments in association with a donor which could reasonably be expected to create a substantial conflict between the representative's private interests and the interests of the council;

(6)

A council member or representative shall not solicit, accept, or agree to accept any benefit for having exercised his or her official powers on behalf of a private donor or performed his or her official duties in favor of a donor;

(7)

A council member or representative who serves as an officer, director or otherwise has policy direction over a donor shall not vote on or otherwise participate in any measure, proposal, or decision before the donor if the council might reasonably be expected to have an interest in such measure, proposal, or decision.

(8)

Any person or entity seeking to contract with the council on a competitive bid basis or otherwise shall disclose all previous donations occurring within the previous two years to the council or any other state agency. The disclosure shall include the name of the recipient, the nature and value of the donation, and the date the donation was made. If the donation is on-going or periodic in nature, the last date the donation was available to the agency shall be used to determine the date of the donation.

(f)

Public records. Documents and other information pertaining to the official business of the council is public information and may be subject to the Texas Public Information Act, Texas Government Code, Chapter 5520. The council may seek a determination from the attorney general regarding the confidentiality of information relating to a donation before releasing the requested information if the council determines an exception to the Texas Public Information Act is applicable.

(g)

Conflict of laws. These rules and guidelines shall not conflict with a requirement of a statute regulating the conduct of an officer or employee of a state agency or the procedures of the council and the commission. In the event that there appears to be a conflict between these rules and a state statute, the state statute controls.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on January 12, 2000.

TRD-200000163

Warren Samuelson

Executive Secretary

Texas On-Site Wastewater Treatment Research Council

Earliest possible date of adoption: February 27, 2000

For further information, please call: (512) 239-4799