25 TAC §§621.155, 621.157, 621.159, 621.161, 621.163
The Interagency Council on Early Childhood Intervention adopts
new §§621.155, 621.157, 621.159, 621.161, 621.163, concerning relationship
with private donors. Sections 621.155, 621.157, 621.161, and 621.163 are adopted
with changes to the proposed text as published in the December 21, 2001, issue
of the
Texas Register
(26 TexReg 10483). Section
621.159 is adopted without changes and will not be republished.
The purpose of these sections is to establish the criteria, procedures,
and standards of conduct governing the relationship between the Council and
its officers and employees, and private donors and private organizations which
exist to further the duties and purposes of the Council.
The law requires the rules to govern all aspects of conduct of the agency
and its employees in the relationship with the organization, including: administration
and investment of funds received by the organization for the benefit of the
agency; use of an employee or property of the agency by the donor or organization;
service by an officer or employee of the agency as an officer or director
of the donor or organization; and monetary enrichment of an officer or employee
of the agency by the donor or organization.
The board received comments from the Health and Human Services Commission
(HHSC). HHSC had several grammatical suggestions. These suggestions are non-substantive,
however, the board has incorporated these changes into the proposed sections
and they are being adopted with those changes.
The only other change being made to these proposed sections is to the Subchapter.
These sections were inadvertently proposed under Subchapter G, Developmental
Rehabilitation Services. The sections should have been placed under new Subchapter
H, Relationship with Private Donors. Therefore, they are being adopted under
new Subchapter H.
The new sections are adopted under the Texas Government Code, §2255.001
which requires state agencies who are authorized to accept money from private
donors to adopt rules governing the relationship between the donor organization
and the agency and its employees. The Texas Human Resources Code 73.0051(e)
authorizes the Interagency Council on Early Childhood Intervention (Council)
to accept gifts, grants and donations from public and private sources for
use in Council programs.
§621.155.Purpose.
The purpose of these sections is to establish the criteria, procedures,
and standards of conduct governing the relationship between the Interagency
Council on Early Childhood Intervention (Council), its officers and employees,
and private donors and private organizations that exist to further the duties
and purposes of the Council.
§621.157.Definitions.
The following words and terms, when used in these sections, shall have
the following meanings, unless the context clearly indicates otherwise.
(1)
Executive Director--The Executive Director of the Interagency
Council on Early Childhood Intervention.
(2)
Board--Board of the Interagency Council on Early Childhood
Intervention.
(3)
Council -- Interagency Council on Early Childhood Intervention.
(4)
Donation--A contribution of anything of value (financial
or in-kind gifts such as goods or services) given to the Council or to a private
organization or foundation that exists to further the duties or functions
of the Council.
(5)
Employee--A regular full-time or part-time employee of
the Council.
(6)
Officer -- A member of the Board of the Council.
(7)
Private donor-A person who gives a donation to the Council
on Early Childhood Intervention or to a private organization that exists to
further the duties and purposes of the Council.
(8)
Private organization--A private organization that exists
to further the purposes and duties of the Council.
§621.161.Relationship Between Private Organizations and the Interagency Council on Early Childhood Intervention.
(a)
A private organization that exists to further the duties
and purposes of the Council and the Council shall enter into a memorandum
of understanding (MOU) that contains specific provisions regarding:
(1)
the relationship between the private organization and the
Council;
(2)
fundraising and solicitation;
(3)
the use of all funds and other donations from fundraising
or solicitation, minus the legitimate expenses described in the MOU, for the
benefit of the Council;
(4)
the maintenance by the private organization of receipts
and documentation of all funds and other donations received, including furnishing
such records to the Council;
(5)
the furnishing to the Council of any audit of the private
organization by the Internal Revenue Service or a private firm; and
(6)
the conditions under which the Council will provide property
and/or staff support to the organization to further the duties and purposes
of the Council and the organization.
(b)
The Council may assist a private organization in fund raising
and solicitation when:
(1)
the ultimate use of the funds, less administrative expenses,
will benefit early childhood intervention programs and is consistent with
and will further the goals and mission of the Council; and
(2)
such fund raising activity does not violate rules governing
standards of conduct between Council employees and private donors described
in section 621.163 of this subchapter (relating to Standards of Conduct for
Officers or Employees of the Council).
(c)
The Council may accept from a private organization financial
assistance designed to promote early childhood intervention services and programs
in the state of Texas. These funds must enhance state funds and not supplant
or replace state appropriations. Before the Council may accept such assistance,
the Executive Director must ascertain and document that the acceptance will
promote the goals of the Council, and that the acceptance does not violate
the personnel or administrative policies of the Council.
(d)
With regard to all funds received:
(1)
The private organization shall maintain receipts and documentation
of all funds and other donations received, and shall furnish such documentation
to the Council on request.
(2)
The private organization shall maintain all funds in insured
accounts at established financial institutions, unless the organization and
the Council Executive Director approve other investments.
(3)
State funds held by the organization shall be invested
according to the state's Public Funds Investment Act.
(4)
The organization shall obtain an independent audit on an
annual basis and submit the results to the Executive Director of the Council.
Records relating to activities supported by public funds will be subject to
public scrutiny.
(5)
Funds generated by the organization will be spent in accordance
with the organization's established priorities. Council employees cannot directly
spend organization funds - all organization expenditures will be controlled
by the organization and its employees.
(6)
Expenditures of funds by the organization shall meet requirements
of the source of the funds, if applicable.
(7)
The organization may solicit and accept corporate sponsorships
and will ensure the sponsorships serve and support the organization and ECI
Board mission. The organization shall establish selection criteria and guidelines
when seeking corporate sponsorships and ensure sponsorships serve the public
interest and are consistent with the Council's mission.
(8)
Fundraising for the organization shall be conducted by
organization employees and Board members and not by state employees with regulatory
authority over the potential donor or those for whom it could pose a conflict
of interest with a potential donor.
(9)
No funding generated by the organization shall be used
to provide a salary supplement or bonus to any state employee.
(10)
The organization shall perform an annual evaluation of
its achievement of established goals/objectives to determine the effectiveness
of the organization.
§621.163.Standards of Conduct for Officers or Employees of the Council.
(a)
An officer or employee shall not accept or solicit any
gift, favor, or service from a private donor or private organization that
might reasonably tend to influence his/her official conduct.
(b)
An officer or employee shall not accept employment or engage
in any business or professional activity with a private donor or private organization
that the officer or employee might reasonably expect would require or induce
him/her to disclose confidential information acquired by reason of his/her
official position.
(c)
An officer or employee shall not accept other employment
or compensation from a private donor or private organization that would reasonably
be expected to impair the officer's or employee's independence of judgment
in the performance of his/her official position.
(d)
An officer or employee shall not make personal investments
in association with a private donor or private organization that could reasonably
be expected to create a substantial conflict between the officer's or employee's
private interest and the interest of the Council.
(e)
An officer or employee shall not solicit, accept, or agree
to accept any benefits for having exercised his/her official powers on behalf
of a private donor or private organization or performed his/her official duties
in favor of a private donor or private organization.
(f)
The Executive Director of the Council or an officer of
the Council may be a non-voting member(s) of the board of directors of a private
organization that exists to further the duties and purposes of the Council.
(g)
An officer or employee shall not authorize a private donor
or private organization to use property of the Council, unless the property
is used in accordance with a contract or memorandum of understanding between
the Council and the private donor or private organization, or the Council
is otherwise compensated for the use of the property.
(h)
The relationship between a private donor and a private
organization and the Council, including fundraising and solicitation activities,
is subject to all applicable federal and state laws, rules and regulations,
and local ordinances governing each entity and its employees.
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 April 4, 2002.
TRD-200202131
Mary Elder
Executive Director
Interagency Council on Early Childhood Intervention
Effective date: April 24, 2002
Proposal publication date: December 21, 2001
For further information, please call: (512) 424-6750