TITLE 1.ADMINISTRATION

Part 3. OFFICE OF THE ATTORNEY GENERAL

Chapter 66. FAMILY TRUST FUND DISBURSEMENT PROCEDURES

The Office of the Attorney General (OAG) adopts Chapter 66, Family Trust Fund Disbursement Procedures, Subchapter A, §§66.1, 66.3, 66.5, 66.7, and 66.9; Subchapter B, §§66.15, 66.17, 66.19, 66.21, and 66.23; Subchapter C, §§66.31, 66.33, 66.35, 66.37, 66.39, 66.41, 66.43, 66.45, and 66.47; Subchapter D, §§66.55, 66.57, and 66.59; Subchapter E, §§66.67, 66.69, 66.71, 66.73, 66.75, 66.77, 66.79, 66.81, 66.83, 66.85, 66.87, 66.89, 66.91, 66.93, 66.95, 66.97, 66.99, 66.101, 66.103, 66.105, 66.107, 66.109, and 66.111; and Subchapter F, §§66.119, 66.121, and 66.123 without changes to the proposed text as published in the April 27, 2001, issue of the Texas Register (26 TexReg 3079) relating to rules for disbursement of funds and administration of grants and contracts under the Family Trust Fund. This chapter provides for the implementation of new rules necessary to carry out the provisions of the Texas Family Code, Chapter 2, The Marriage Relationship, §2.014, Family Trust Fund (West 1999), which provides funds for programs that assist families. Texas Family Code, §2.014 reflects the 76th Legislature's intent to provide public funds for the following purposes: (1) the development and distribution of a premarital education handbook; (2) grants to institutions of higher learning that conduct research on marriage and divorce to strengthen families and assist children whose parents are divorcing; (3) support for counties to create or administer free or low-cost premarital education courses; (4) programs that intend to reduce the amount of delinquent child support; and (5) other programs the OAG determines will assist families.

Pursuant to Texas Local Government Code §118.013(c) each county clerk shall remit $3 of the fee for a marriage license to the comptroller for deposit in the Family Trust Fund. Pursuant to Texas Family Code §2.014 the OAG shall administer the funds for the statutory beneficiaries; therefore, it is necessary for the OAG to adopt rules outlining the procedure for disbursement of the funds in a fair and accurate manner. The rules will also cover the application process; the manner of awarding funding; the administration of the fund; individual program monitoring; and audits. This adopted chapter establishes procedures by which entities may apply for and receive grants, or contracts as appropriate, and implement programs which meet the statutory requirements of Texas Family Code §2.014. The rules are also intended to advise the public of the independent functions the OAG has regarding administration of the Family Trust Fund.

Adopted Chapter 66 is organized into six subchapters. Adopted Subchapter A (General Provisions and Eligibility, §§66.1, 66.3, 66.5, 66.7, and 66.9) contains general provisions of Chapter 66, including definitions, statutory authority for the trust fund, source of the trust fund, prohibitions related to the use of the trust fund, and eligibility requirements. Adopted §66.1 provides the definitions of terms. Adopted §66.3 states the statutory authority for the creation of the trust fund and recognizes the authority of the OAG to administer the trust fund. Adopted §66.5 relates the purpose of the trust fund. Adopted §66.7 describes eligible projects for which the trust fund may be used. Adopted §66.9 defines the class of persons and entities eligible to apply for the trust fund.

Adopted Subchapter B (Grant Application, Scope of Grant, Approval, and Funding, §§66.15, 66.17, 66.19, 66.21, and 66.23) describes the application process, including the requirement of a timely-filed application, OAG review criteria, discretionary determination of funding by the OAG, and nonstandard funding. This subchapter also declares that the actual funding of approved new and existing grant projects is contingent upon the availability of funds. Adopted §66.15 provides that applicants must complete and submit an application package to the OAG Grant Coordinator. Adopted §66.17 discusses the OAG's approval process in determining how to disburse the trust fund. Adopted §66.19 defines the grant or contract funding period and criteria for awarding second-year funding. Adopted §66.21 provides for approval of nonstandard grant funding outside the annual grant cycle based on the availability of funds. Adopted §66.23 declares that actual funding of approved new and existing grant projects is contingent upon availability of funds.

Adopted Subchapter C (Special Conditions and Required Documents, §§66.31, 66.33, 66.35, 66.37, 66.39, 66.41, 66.43, 66.45, and 66.47) addresses documents that applicants are required to submit to the OAG to demonstrate that they will follow operating procedures consistent with state and federal law. Adopted §66.31 relates to an Equal Employment Opportunity Program Certification. Adopted §66.33 relates to a Certification Regarding Lobbying. Adopted §66.35 relates to a Nonprocurement Debarment Certification. Adopted §66.37 relates to a Drug-Free Workplace Certification. Adopted §66.39 relates to a Uniform Grants Management Standards Certification. Adopted §66.41 relates to a Certified Assurances Certification. Adopted §66.43 discusses that pre-approval of the OAG is required for grantees to use grant funds to purchase equipment with a cost exceeding $25,000 and establishes the process and documentation necessary for such pre-approval. Adopted §66.45 advises that prior to execution of any contract in excess of $25,000, a grantee must submit said contract and required documentation along with the criteria and process the grantee is considering for entering into contracts. Adopted §66.47 requires that governmental entities and nonprofit organizations who designate someone other than the executive officer of the governmental entity in the grant application must obtain a resolution from its governing body that gives the authorized official the power to accept, reject, or amend a grant. The resolution must state that a security bond will be obtained and in the event grant funds are misused, the grant funds will be returned in full. In addition, the resolution must contain non-supplanting language.

Adopted Subchapter D (Award and Grant Acceptance, §§66.55, 66.57, and 66.59) sets forth the process for the award and acceptance of grants. Adopted §66.55 announces the process for notification of an award of grant funds. This section also sets forth the OAG's full discretion in approving project funding and determining grantee compliance with OAG policies. Adopted §66.57 outlines procedures for an applicant's response to deficiencies in a filed application. Adopted §66.59 describes the process an applicant may pursue in the event that the OAG denies all or part of an application and sets forth the final decision-making authority of the OAG.

Adopted Subchapter E (Administering Grants, §§66.67, 66.69, 66.71, 66.73, 66.75, 66.77, 66.79, 66.81, 66.83, 66.85, 66.87, 66.89, 66.91, 66.93, 66.95, 66.97, 66.99, 66.101, 66.103, 66.105, 66.107, 66.109, and 66.111) adopts rules for the administration of the grants. The rules establish duties and responsibilities for grant officials, requirements regarding records, procedures to requests funds, grant adjustments, copyrights, procurement procedures, and rules relating to property management, bonding, and insurance. This Adopted 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 determinate a grant project. This adopted subchapter 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 grant administration.

Adopted §66.67 requires that each grantee designate three grant officials whose duties are described in the section. Adopted §66.69 advises that OAG approval is required if grant funds are obligated prior to the start date or later than the end date of the grant period. Adopted §66.71 sets forth grant records retention requirements and provides for availability of the records in an electronic format for purposes of audit. Adopted §66.73 specifies that the grantee must file financial expenditure reports each calendar quarter on forms promulgated by the OAG and sets forth the consequences for failing to file a timely report. Adopted §66.75 mandates that the grantee maintain an inventory report on file in the principal office of the grantee. Adopted §66.77 establishes time limits for filing a final request for funds and the consequences for failure to submit accurate reports in a timely manner. Adopted §66.79 describes procedures for submitting a request for a grant adjustment. Adopted §66.81 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 §66.83 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.

Adopted §66.85 establishes the Uniform Grant Management Standards published by the Governor's Office of Budget and Planning as the governing property management standard for a grantee. Adopted §66.87 provides guidance regarding equipment disposition methods where a grantee who has purchased equipment in whole or in part with OAG funds is no longer funded by the OAG. Adopted §66.89 provides guidance regarding the transfer of title to equipment and nonexpendable personal property acquired with grant funds. Adopted §66.91 sets forth a grantee's bonding and insurance requirements.

Adopted §66.93 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 describes a grantee's ability to request a reconsideration of an OAG decision to withhold funds. Adopted §66.95 outlines the procedure regarding cancellation or termination of a grant, the consequences of such action, and a grantee's ability to request a reconsideration of an OAG decision to terminate a grant project.

Adopted §66.97 sets forth 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 §66.99 requires the grantee to obligate and expend all outstanding liabilities within certain specified time frames. Adopted §66.101 requires the grantee and its personnel to report immediately to the OAG and the local prosecuting attorney's office upon discovery of any violation of the law pertaining to the use and expenditure of grant funds. Adopted §66.103 contains a prohibition against behavior constituting a conflict of interest on the part of any person affiliated with the grant project. Adopted §66.105 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 grant project. Adopted §66.107 imposes the requirement for filing timely complete progress reports. Adopted §66.109 requires that a grantee who uses grant funds to contract with a third party must maintain proper records to ensure that requirements of the contract are met. Adopted §66.111 establishes the requirement for accuracy of grant records and sets forth the consequences for providing false information.

Adopted Subchapter F ( Program Monitoring and Audits, §§66.119, 66.121, and 66.123) contains provisions concerning OAG monitoring activities, compliance reviews, and auditing authority and standards, as well as procedures for appealing OAG decisions relating to audit findings.

Adopted §66.119 explains that OAG monitoring will attempt to ensure that a grantee is achieving grant performance goals and that grant awards are used in accordance with applicable laws, rules, and grant agreements. Adopted §66.121 requires a grantee to file independent annual audits in accordance with Uniform Grant Management Standards and Generally Accepted Auditing Standards. Adopted §66.123 contains guidance as to the substance of OAG reviews and the substance of required annual audits.

No comments were received regarding these rules.

Subchapter A. GENERAL PROVISIONS AND ELIGIBILTY

1 TAC §§66.1, 66.3, 66.5, 66.7, 66.9

Chapter 66 is Adopted under the Texas Family Code §2.014, which the OAG interprets as authorizing the OAG to adopt rules reasonable and necessary to implement §2.014, in order to provide funds for grants or contracts that support services that assist families.

The adopted new chapter affects Texas Family Code §2.014.

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 June 4, 2001.

TRD-200103074

Susan D. Gusky

Assistant Attorney General

Office of the Attorney General

Effective date: June 24, 2001

Proposal publication date: April 27, 2001

For further information, please call: (512) 463-2110


Subchapter B. GRANT APPLICATION, SCOPE OF GRANT, APPROVAL AND FUNDING

1 TAC §§66.15, 66.17, 66.19, 66.21, 66.23

This Subchapter is adopted under the Texas Family Code §2.014, which the OAG interprets as authorizing the OAG to adopt rules reasonable and necessary to implement §2.014, in order to provide funds for grants or contracts that support services that assist families.

The Adopted new chapter affects Texas Family Code §2.014.

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 June 4, 2001.

TRD-200103075

Susan D. Gusky

Assistant Attorney General

Office of the Attorney General

Effective date: June 24, 2001

Proposal publication date: April 27, 2001

For further information, please call: (512) 463-2110


Subchapter C. SPECIAL CONDITIONS AND REQUIRED DOCUMENTS

1 TAC §§66.31, 66.33, 66.35, 66.37, 66.39, 66.41, 66.43, 66.45, 66.47

This Subchapter is adopted under the Texas Family Code §2.014, which the OAG interprets as authorizing the OAG to adopt rules reasonable and necessary to implement §2.014, in order to provide funds for grants or contracts that support services that assist families.

The adopted new chapter affects Texas Family Code §2.014.

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 June 4, 2001.

TRD-200103076

Susan D. Gusky

Assistant Attorney General

Office of the Attorney General

Effective date: June 24, 2001

Proposal publication date: April 27, 2001

For further information, please call: (512) 463-2110


Subchapter D. AWARD AND GRANT ACCEPTANCE

1 TAC §§66.55, 66.57, 66.59

This Subchapter is adopted under the Texas Family Code §2.014, which the OAG interprets as authorizing the OAG to adopt rules reasonable and necessary to implement §2.014, in order to provide funds for grants or contracts that support services that assist families.

The adopted new chapter affects Texas Family Code §2.014.

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 June 4, 2001.

TRD-200103088

Susan D. Gusky

Assistant Attorney General

Office of the Attorney General

Effective date: June 24, 2001

Proposal publication date: April 27, 2001

For further information, please call: (512) 463-2110


Subchapter E. ADMINISTERING GRANTS

1 TAC §§66.67, 66.69, 66.71, 66.73, 66.75, 66.77, 66.79, 66.81, 66.83, 66.85, 66.87, 66.89, 66.91, 66.93, 66.95, 66.97, 66.99, 66.101, 66.103, 66.105, 66.107, 66.109, 66.111

This Subchapter is adopted under the Texas Family Code §2.014, which the OAG interprets as authorizing the OAG to adopt rules reasonable and necessary to implement §2.014, in order to provide funds for grants or contracts that support services that assist families.

The adopted new chapter affects Texas Family Code §2.014.

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 June 4, 2001.

TRD-200103089

Susan D. Gusky

Assistant Attorney General

Office of the Attorney General

Effective date: June 24, 2001

Proposal publication date: April 27, 2001

For further information, please call: (512) 463-2110


Subchapter F. PROGRAM MONITORING AND AUDITS

1 TAC §§66.119, 66.121, 66.123

This Subchapter is adopted under the Texas Family Code §2.014, which the OAG interprets as authorizing the OAG to adopt rules reasonable and necessary to implement §2.014, in order to provide funds for grants or contracts that support services that assist families.

The adopted new chapter affects Texas Family Code §2.014.

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 June 4, 2001.

TRD-200103077

Susan D. Gusky

Assistant Attorney General

Office of the Attorney General

Effective date: June 24, 2001

Proposal publication date: April 27, 2001

For further information, please call: (512) 463-2110