TITLE 34.PUBLIC FINANCE

Part 1. COMPTROLLER OF PUBLIC ACCOUNTS

Chapter 3. TAX ADMINISTRATION

Subchapter L. MOTOR FUEL TAX

34 TAC §3.199

The Comptroller of Public Accounts adopts the repeal of §3.199, concerning unregulated mixtures, without changes to the proposed text as published in the April 19, 2002, issue of the Texas Register (27 TexReg 3311).

This rule is being repealed because the authority for the administration and collection of the motor fuel testing fee was transferred from the comptroller to the Texas Department of Agriculture, effective May 22, 2001. The rule was previously necessary to describe the types of fuel that were excepted from motor fuel testing because the fuel types did not contain sufficient quantities of alcohol to warrant regulation.

No comments were received regarding adoption of the repeal.

This adoption is adopted under Tax Code, §111.002 and §111.0022, which provides the comptroller with the authority to prescribe, adopt, and enforce rules relating to the administration and enforcement of the provisions of the Tax Code, Title 2, and taxes, fees, or other charges which the comptroller administers under other law.

The adoption implements Texas Civil Statutes, Title 132, Art. 8614, §9(b).

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 28, 2002.

TRD-200203263

Martin Cherry

Deputy General Counsel for Taxation

Comptroller of Public Accounts

Effective date: June 17, 2002

Proposal publication date: April 19, 2002

For further information, please call: (512) 475-0387


Part 12. STATE EMPLOYEE CHARITABLE CAMPAIGN

Chapter 325. GENERAL STATE POLICY COMMITTEE PROVISIONS

34 TAC §§325.3, 325.5, 325.7

The State Employee Charitable Campaign Policy Committee (SPC) adopts new §§325.3, 325.5, and 325.7, concerning general state policy committee provisions, without changes to the proposed text of §325.3 and §325.5, and with changes to the proposed text of §325.7, as published in the February 8, 2002, issue of the Texas Register (27 TexReg 872).

These new sections are adopted to clarify and codify existing SPC policy regarding the conduct and activities of the SPC members. Section 325.3 identifies the SPC officers; §325.5 provides requirements for SPC meetings; and §325.7 sets out the SPC policy regarding travel expenses, based on the limitations provided in the State Employee Charitable Campaign (SECC) statute.

No comments were received regarding adoption of §325.3 and §325.5; however, comments were received regarding adoption of §325.7. The Office of the Local Campaign Manager in Midland, Texas, commented that references to the "SECC manager" should be clarified to state the "SECC state campaign manager." The SPC agrees, and subsections (a) and (d) of proposed §325.7 have been changed to include the clarification. In addition, the name of the chapter under which the new rules will reside has been revised to add the words "State Policy" after the word "General."

Changes to the proposed text of §325.7 as published are clarification changes and affect no new persons, entities, or subjects other than those given notice, and compliance with the adopted section will not be affected.

These new sections are adopted under Government Code, §659.139, which provides that the State Employee Charitable Campaign (SECC) must be managed fairly and equitably in accordance with the SECC law and the policies and procedures established by the state policy committee. The SPC interprets this statute to authorize the adoption of rules to the extent that the policies and procedures adopted are of general applicability and affect the rights of third parties, namely charitable organizations, local campaign managers, local employee committees, the state advisory committee, the state campaign manager, and state employees.

The other statute, article, or section affected by the adopted rules is Government Code, §659.145, regarding terms and compensation of committee members.

§325.7.Travel Expenses.

(a) State Employee Charitable Campaign Policy Committee (SPC) and State Employee Charitable Campaign Advisory Committee (SAC) members make their own travel arrangements and seek reimbursement from the State Employee Charitable Campaign (SECC) state campaign manager.

(b) Reimbursements are made at the State of Texas rates for per diem, airfare, car allowances, hotel and lodging expenses, cab fare, and parking with the following special provisions.

(1) Airfare. Airfare is reimbursed at the average coach airfare at two week advance rate unless approved by the SPC chair.

(2) Mileage. Mileage is reimbursed as provided in the Texas Mileage Guide .

(c) Original receipts are required for all reimbursements, with the exception of per diem and parking using a parking meter.

(d) Expenses will be reimbursed within 21 days of receipt of the expense reimbursement form. The reimbursement form must be received in the SECC state campaign manager's office by 30 days following the SPC or SAC meeting to which the expenses pertain.

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 3, 2002.

TRD-200203423

Steve Robinson

Chair, Policy Committee

State Employee Charitable Campaign

Effective date: June 23, 2002

Proposal publication date: February 8, 2002

For further information, please call: (512) 463-3699


Chapter 326. STATE CAMPAIGN MANAGEMENT

34 TAC §326.1

The State Employee Charitable Campaign Policy Committee (SPC) adopts new §326.1, concerning 10% cap, with changes to the proposed text as published in the February 8, 2002, issue of the Texas Register (27 TexReg 872).

The new section is adopted to codify existing SPC policy regarding campaign expenses that may be charged by a state campaign manager. §326.1 sets forth the nature of and the maximum amount of expenses that may be charged to the campaign by a state campaign manager.

No comments were received regarding adoption of the new rule.

The following changes were made to the text of the proposed rule for clarification and to correct punctuation: a comma has been inserted after the words "each local campaign manager"; and the words "the total combined fee" have been inserted before the words "may not exceed 10%." These changes affect no new persons, entities, or subjects other than those given notice, and compliance with the adopted section will not be affected.

The new section is adopted under Government Code, §659.139, which provides that the State Employee Charitable Campaign (SECC) must be managed fairly and equitably in accordance with the SECC law and the policies and procedures established by the state policy committee. The SPC interprets this statute to authorize the adoption of rules to the extent that the policies and procedures adopted are of general applicability and affect the rights of third parties, namely charitable organizations, local campaign managers, local employee committees, the state advisory committee, the state campaign manager, and state employees.

The other statute, article, or section affected by the adopted rule is Government Code, §659.148, regarding fees.

§326.1.10% Cap.

The only fee a campaign manager may charge is for actual campaign expenses that are reasonable and necessary. The fee must be based on the combined expenses of the state campaign manager and each local campaign manager, and the total combined fee may not exceed 10% of the total amount collected in the state employee charitable campaign unless the State Policy Committee approves a higher amount to accommodate reasonable documented costs.

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 3, 2002.

TRD-200203424

Steve Robinson

Chair, Policy Committee

State Employee Charitable Campaign

Effective date: June 23, 2002

Proposal publication date: February 8, 2002

For further information, please call: (512) 463-3699


Chapter 327. LOCAL CAMPAIGN MANAGEMENT

34 TAC §327.1

The State Employee Charitable Campaign Policy Committee (SPC) adopts new §327.1, concerning local campaign management, with changes to the proposed text as published in the February 8, 2002, issue of the Texas Register (27 TexReg 873).

The new section is adopted to codify existing SPC policy regarding campaign expenses that may be charged by local campaign managers. §327.1 sets forth the nature of and the maximum amount of expenses that may be charged to the campaign by a local campaign manager.

No comments were received regarding adoption of the new rule.

The following changes were made to the text of the proposed rule for clarification and to correct punctuation: a comma has been inserted after the words "each local campaign manager"; and the words "the total combined fee" have been inserted before the words "may not exceed 10%." These changes affect no new persons, entities, or subjects other than those given notice, and compliance with the adopted section will not be affected.

The new rule is adopted under Government Code, §659.139, which provides that the state employee charitable campaign must be managed fairly and equitably in accordance with the SECC law and the policies and procedures established by the state policy committee. The SPC interprets this statute to authorize the adoption of rules to the extent that the policies and procedures adopted are of general applicability and affect the rights of third parties, namely charitable organizations, local campaign managers, local employee committees, the state advisory committee, the state campaign manager, and state employees.

The other statute, article, or section affected by the adopted rule is Government Code, §659.148, regarding fees.

§327.1.10% Cap.

The only fee a campaign manager may charge is for actual campaign expenses that are reasonable and necessary. The fee must be based on the combined expenses of the state campaign manager and each local campaign manager, and the total combined fee may not exceed 10% of the total amount collected in the state employee charitable campaign unless the State Policy Committee approves a higher amount to accommodate reasonable documented costs.

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 3, 2002.

TRD-200203425

Steve Robinson

Chair, Policy Committee

State Employee Charitable Campaign

Effective date: June 23, 2002

Proposal publication date: February 8, 2002

For further information, please call: (512) 463-3699


Chapter 329. ELIGIBILITY CRITERIA FOR STATEWIDE FEDERATIONS/FUNDS AND AFFILIATED ORGANIZATIONS

34 TAC §329.3

The State Employee Charitable Campaign Policy Committee (SPC) adopts new §329.3, concerning the 25% administrative cost cap, without changes to the proposed text as published in the February 8, 2002, issue of the Texas Register (27 TexReg 874).

The new rule is adopted to codify SPC policy regarding the standards and criteria that the SPC uses to determine the eligibility of organizations to participate in the state employee charitable campaign and to be listed amongst other charitable organizations as being eligible to receive charitable contributions from state employees. §329.3 restates the statutory maximum cap on the portion of an organization's revenue that may be spent on administrative expenses. In various campaign years there has been uncertainty among charitable organizations regarding the methodology that should be used to determine expenses. The new rule provides a method for calculating administrative expenses and rounding off expenses to arrive at a percentage figure. The method for calculating expenses and the "rounding off" policy are required to ensure that all organizations are judged on the same type of data, and that the determination of that data is based on a method that is used consistently among all organizations. The adoption of one methodology promotes a fair campaign. For the same reasons, the rule also provides the criteria and standards that the SPC uses when it considers applications for exemption from the 25% cap.

No comments were received regarding adoption of the new rule.

The new section is adopted under Government Code, §659.139, which provides that the State Employee Charitable Campaign (SECC) must be managed fairly and equitably in accordance with the SECC law and the policies and procedures established by the state policy committee. The SPC interprets this statute to authorize the adoption of rules to the extent that the policies and procedures adopted are of general applicability and affect the rights of third parties, namely charitable organizations, local campaign managers, local employee committees, the state advisory committee, the state campaign manager, and state employees.

The other statute, article, or section affected by the adopted rule is Government Code, §659.146, regarding general eligibility requirements and eligibility requirements for statewide participation.

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 3, 2002.

TRD-200203426

Steve Robinson

Chair, Policy Committee

State Employee Charitable Campaign

Effective date: June 23, 2002

Proposal publication date: February 8, 2002

For further information, please call: (512) 463-3699


Chapter 330. ELIGIBILITY CRITERIA FOR LOCAL FEDERATIONS/FUNDS, AFFILIATED ORGANIZATIONS, AND LOCAL CHARITABLE ORGANIZATIONS

34 TAC §330.3, §330.5

The State Employee Charitable Campaign Policy Committee (SPC) adopts new §330.3 and §330.5, concerning eligibility criteria for local federations/funds, affiliated organizations, and local charitable organizations, without changes to the proposed text as published in the February 8, 2002, issue of the Texas Register (27 TexReg 875).

These new rules are adopted to codify existing SPC policy regarding the standards and criteria that local employee committees (LECs) use to determine the eligibility of organizations to participate in the state employee charitable campaign and to be listed amongst other charitable organizations as being eligible to receive charitable contributions from state employees.

Section 330.3 restates the statutory maximum cap on the portion of an organization's revenue that may be spent on administrative expenses. In various campaign years there has been uncertainty among charitable organizations regarding the methodology that should be used to determine expenses. The new rule provides a method for calculating administrative expenses and rounding off expenses to arrive at a percentage figure. The method for calculating expenses and the "rounding off" policy are required to ensure that all organizations are judged on the same type of data, and that the determination of that data is based on a method that is used consistently among all organizations. The adoption of one methodology promotes a fair campaign. For the same reasons, the rule also provides the criteria and standards that the SPC uses when it considers applications for exemption from the 25% cap.

Section 330.5 sets forth the criteria a charitable organization must meet in order to meet the eligibility requirements for participation in a local campaign. The rule clarifies the statutory definition of "local charitable organization" by interpreting when an organization's office is deemed to be open, provides requirements to ensure that state employees have access to the organization, and provides that the LEC has discretion to independently verify that an organization meets the requirements of this rule. Questions have arisen in past campaign years regarding the situations that would constitute an office being open, such as whether a person was required to be in the office during office hours and whether accessibility to state employees required a sign outside the office identifying the organization. This rule answers many of those questions by clearly stating the actions that need to be taken and the conditions that must exist in the office of the organization to constitute an open office.

No comments were received regarding adoption of the new rules.

These new sections are adopted under Government Code, §659.139, which provides that the State Employee Charitable Campaign (SECC) must be managed fairly and equitably in accordance with the SECC law and the policies and procedures established by the state policy committee. The SPC interprets this statute to authorize the adoption of rules to the extent that the policies and procedures adopted are of general applicability and affect the rights of third parties, namely charitable organizations, local campaign managers, local employee committees, the state advisory committee, the state campaign manager, and state employees.

The other statute, article, or section affected by the adopted rules is Government Code, §659.131, which defines the term "local charitable organization" and provides certain eligibility criteria for the participation of such local charitable organizations in the charitable campaign.

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 3, 2002.

TRD-200203427

Steve Robinson

Chair, Policy Committee

State Employee Charitable Campaign

Effective date: June 23, 2002

Proposal publication date: February 8, 2002

For further information, please call: (512) 463-3699


Chapter 331. REVIEW AND APPEAL PROCEDURES FOR STATEWIDE FEDERATIONS/FUNDS AND AFFILIATED ORGANIZATIONS

34 TAC §331.5

The State Employee Charitable Campaign Policy Committee (SPC) adopts new §331.5, concerning the appeal process for statewide federations/funds and affiliated organizations, without changes to the proposed text as published in the February 8, 2002, issue of the Texas Register (27 TexReg 876).

This new section is adopted to codify existing SPC policy regarding the process by which appeals from denials of applications for State Employee Charitable Campaign (SECC) participation are heard by the SPC. The new rule provides standards by which an appeal from denial of an application will be reviewed by the SPC. Only complete applications will be reviewed because the SPC cannot make an informed decision without all of the relevant information. A deadline of 10 days is provided in order to ensure quick resolution to adverse rulings and to allow an organization that is denied statewide participation the time to apply for participation in a local SECC campaign. Faxed appeals are not accepted because of administrative inconvenience, delay, and uncertainty that results from the receipt of illegible copies, incomplete transmissions, mechanical problems, and other vagaries of facsimile transmission.

No comments were received regarding adoption of the new rule.

This new section is adopted under Government Code, §659.139, which provides that the State Employee Charitable Campaign (SECC) must be managed fairly and equitably in accordance with the SECC law and the policies and procedures established by the state policy committee. The SPC interprets this statute to authorize the adoption of rules to the extent that the policies and procedures adopted are of general applicability and affect the rights of third parties, namely charitable organizations, local campaign managers, local employee committees, the state advisory committee, the state campaign manager, and state employees.

The other statute, article, or section affected by the adopted rule is Government Code, §659.146, which requires the SPC to provide an appeals process.

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 3, 2002.

TRD-200203428

Steve Robinson

Chair, Policy Committee

State Employee Charitable Campaign

Effective date: June 23, 2002

Proposal publication date: February 8, 2002

For further information, please call: (512) 463-3699


Chapter 332. REVIEW AND APPEAL PROCEDURES FOR LOCAL FEDERATIONS/FUNDS, AFFILIATED ORGANIZATIONS, AND LOCAL CHARITABLE ORGANIZATIONS

34 TAC §332.1, §332.5

The State Employee Charitable Campaign Policy Committee (SPC) adopts new §332.1 and §332.5, concerning review and appeal procedures for local federations/funds, affiliated organizations, and local charitable organizations, without changes to the proposed text as published in the February 8, 2002, issue of the Texas Register (27 TexReg 877).

These new sections are adopted to codify existing SPC policy regarding the process by which applications for participation in the local state employee charitable campaign (SECC) are received and reviewed. The new sections also codify current SPC policy regarding appeals to the SPC from Local Employee Committee (LEC) denials. Only complete applications will be submitted to the LEC for eligibility review because the LEC cannot make an informed and responsible decision without all of the requested information. Local applicants that submit incomplete applications will be notified of the problem and will have time within which to complete an application. Deadlines must be rigidly enforced to ensure that the rest of a local campaign is not put behind as a result of delays caused by incomplete applications. An appellant who was denied participation as a result of an incomplete application will not be permitted to present an appeal to the SPC. This limitation is necessary because until all the participating organizations are known, the local materials and other plans for the local campaign cannot be completed. Delays in the local campaign can jeopardize success of the overall campaign. It is not fair to other applicants who submit their complete applications on time, and it is administratively inconvenient and inefficient for the LEC or the SPC to encourage or permit an organization to use the appeal process as a tool to buy the organization time to complete an application. A deadline of 10 days to file an appeal is provided in order to ensure quick resolution to appeals so that the local campaign is not delayed while awaiting an SPC appeal decision. Faxed appeals are not accepted because of the administrative inconvenience, delay, and uncertainty that results from the receipt of illegible copies, incomplete transmissions, mechanical problems, and other vagaries of facsimile transmission.

No comments were received regarding adoption of the new rules.

These new rules are adopted under Government Code, §659.139, which provides that the State Employee Charitable Campaign (SECC) must be managed fairly and equitably in accordance with the SECC law and the policies and procedures established by the state policy committee. The SPC interprets this statute to authorize the adoption of rules to the extent that the policies and procedures adopted are of general applicability and affect the rights of third parties, namely charitable organizations, local campaign managers, local employee committees, the state advisory committee, the state campaign manager, and state employees.

The other statute, article, or section affected by the adopted rules is Government Code, §659.147, which provides application requirements for a charitable organization that seeks local participation in the SECC and which requires the SPC to provide an appeals process.

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 3, 2002.

TRD-200203429

Steve Robinson

Chair, Policy Committee

State Employee Charitable Campaign

Effective date: June 23, 2002

Proposal publication date: February 8, 2002

For further information, please call: (512) 463-3699


Chapter 333. CAMPAIGN MATERIALS

34 TAC §§333.1, 333.3, 333.5, 333.7

The State Employee Charitable Campaign Policy Committee (SPC), adopts new §§333.1, 333.3, 333.5, and 333.7, concerning campaign materials, without changes to the proposed text of §333.1, and with changes to the proposed text of §§333.3, 333.5, and 333.7, as published in the February 8, 2002, issue of the Texas Register (27 TexReg 877).

These rules are adopted to provide guidance to all participants in the State Employee Charitable Campaign (SECC) regarding the campaign materials used during a campaign year. The rules provide for uniform solicitation throughout the state yet allow flexibility for each campaign area regarding the theme and the types of materials each area uses. In §333.1, one logo has been approved for use on all campaign materials. The logo provides an appropriate and uniform message for the SECC that reflects the purpose of the SECC program. Sections 333.3(a) and (b), 333.5(c), and 333.7(b)(1) limit the number of themes that may be submitted and approved by the SPC to three. The SPC has determined that more than one theme may be desirable in any given campaign year if the themes submitted are appropriate, and if the SPC determines there is a need to have more than one theme used throughout the state. No more than three themes will be approved to ensure a cohesive and uniform approach to each year's campaign. No themes are considered for approval other than those submitted in January of every even-numbered year. The limitation is necessary for administrative efficiency and convenience and to help ensure that the campaign preparations are not delayed.

Subsections (c) and (d) of §333.7 provide guidelines regarding required and prohibited elements in directories and mini-directories used in the SECC. The theme and the logo must appear on the materials to distinguish the SECC campaign from any other fund-raising effort that may occur at the work site. This allows state employees to be aware of the program under which they are making donations and builds a level of accountability into the campaign.

Subsections (c)(10) and (d)(10) of §333.7 require that the order in which the listings appear in the directories be rotated every year. The regular rotation ensures unified and fair solicitation to the extent that the order in which charities appear in the directory can affect those aspects of the campaign. The SPC wants to ensure that the order in which organizations are listed does not give state charities an unfair advantage over local charities, does not give affiliated charities an unfair advantage over unaffiliated charities, and does not give federations an unfair advantage over unaffiliated or affiliated charities of other federations. The listings are required to appear alphabetically within each group because that order is the order most people use to find information on a list. The SPC believes this rule will ensure that state employees are presented with choices that are easy to find in the materials.

Section 333.7(e) requires that the SPC and the comptroller approve pledge forms because state law gives both of those entities the duty to approve generic materials and to provide the form for making deductions, respectively.

Section 333.7(f) provides that materials not ordered through the campaign manager must be submitted for approval and approved by the SPC prior to use to ensure uniformity among campaign areas, fairness among the various campaign areas, and consistency with the SECC theme and objectives. As a deterrent to using unapproved materials, the rules provide that materials not approved by the SPC are not eligible for reimbursement from the campaign funds.

No comments were received regarding adoption of §333.1; however, comments were received regarding adoption of §§333.3, 333.5, and 333.7.

Comments were received from the Office of the Local Campaign Manager from Midland, Texas, requesting that the third sentence in §333.3(b) be reworded in the active voice and that the last sentence in §333.3(b) be clarified to show that the final phrase, "if provided" refers to the "central purchasing process." The SPC agreed with the request and has reworded the rule in the active voice and for clarity. Changes were also made to the last phrase in the second sentence of §333.3(b) to correct a typographical error. In that sentence, the word "or" has been changed to "of" so that the phrase now reads "...some or all of the themes submitted."

The commenter also pointed out a typographical error in §333.5(c) that caused the words, "whichever is earlier" to appear at the end of the sentence. The SPC agrees, and the language has been deleted accordingly.

A comment was received from the office of the Comptroller of Public Accounts regarding §333.7(e)(1), stating that "state approved forms" as used in the rule should be interpreted as referring to forms approved by the office of the Comptroller of Public Accounts. The commenter also states that it is not clear from the language in §333.7(e)(2) whether the forms referred to in subsection (e)(2) must be approved by the comptroller before the forms may be used in an SECC campaign. The comment requests that the rule be clarified to reflect the current policy that the authorization forms must be approved by the comptroller in addition to the SPC prior to being used.

The SPC agrees. The comptroller and the SPC must approve the authorization form or pledge cards used in the SECC. Current statute directs the SPC to approve generic campaign materials. The statute also states that deduction authorizations shall be in the form prescribed by the comptroller; therefore, the proposed text of §333.7 has been changed to clarify that the use of the term "state" in §333.7(e)(1) refers to the comptroller and to the SPC. The proposed text of §333.7(e)(2) has also been changed to provide that the SPC will not approve forms under subsection (e)(2) that are not in compliance with the forms approved by the comptroller and the SPC.

The following additional changes are made to the text of the proposed rules as published.

In §333.3(b), the third sentence is reworded in the active voice, and the word "years" in the third sentence is changed to "year."

To clarify §333.5(a), the words "themes approved by the" are inserted before "State Employee Charitable Campaign" and the last two words of subsection (a), "approved themes" are deleted.

In §333.5(b), for grammatical correctness and for clarification, the word "its" is changed to "their," the words "based on" are replaced with "incorporating," and in the last phrase, the word "others" is changed to "other themes."

Throughout §333.7, all references to "brochure" or "mini-brochure" are changed to "directory" or "mini-directory" to clarify that only those materials that contain the official list of the approved organizations and that the LCMs and SCM print and distribute for the SECC are subject to this rule. The terms "brochure" and "mini-brochure" have been used interchangeably in the past with "directory" and "mini-directory," respectively. However, that approach has caused confusion in certain aspects of the campaign, including the administration of the SECC at the office of the Comptroller of Public Accounts and at the level of the charitable organization, where it sometimes has been unclear that it was the printed and official list of approved organizations that was being referenced when the term "brochure" was used. Federations and affiliates and local charitable organizations distribute informational or marketing materials, commonly referred to in layman's terms as brochures, that may be specific to particular approved organizations and that do not contain the listing of approved organizations that this rule addresses and that are not necessarily intended for use only in the SECC. This rule does not apply to those materials that are commonly referred to in layman's terms as "brochures."

In §333.7(b)(3), the phrase "materials will be ordered" is clarified and rephrased in the active voice to read, "the SCM will order materials."

In §333.7(b)(4), the structure of the sentence is changed to clarify what "if submitted, recommended by the SAC and approved by the SPC" means. The rule now reads, "Local areas may use centrally purchased materials or local areas may order their own materials incorporating any of the approved themes, if the local area submits samples, pictures, or adequate descriptions of those materials to the SAC, and if the materials are approved by the SPC."

In §333.7(c), for ease of reading, the words "directories for the" are inserted after "production of", and the last word in the proposed rule, "brochure" is deleted.

In §333.7(c)(6), a second sentence is added to clarify which name of a charity the rule requires. The added sentence reads, "The name of the charity that shall appear on the directory is the legal name of the charity as it is filed with the Secretary of State. However, the d/b/a name may appear in the directory instead, if the charity has a d/b/a name and if that d/b/a name appears in the appropriate place on the application that was approved by the SPC or the LEC." The following clause is added after the words "name of the charity" in the first sentence to clarify that the rule applies to all charities, federations, and affiliates (federation and affiliates must be included).

In §333.7(c)(10), language is added to the rule to clarify its requirements. The rule is changed to read as follows: "The list of statewide organizations will alternate with the list of local organizations in appearing first on the directory. If in one year the list of statewide organizations appears on the directory before the list of local organizations, the following year the list of local organizations will appear before the statewide organizations. Similarly, the list of local federations will alternate with the list of unaffiliated local organizations each year. Federations will be listed in alphabetical order within their respective sections in the directory."

In §333.7(d)(6), language is added to clarify which name of a charity the rule requires. The added sentence reads, "The name of the charity that shall appear on the directory is the legal name of the charity as it is filed with the Secretary of State. However, the d/b/a name may appear on the directory instead, if the charity has a d/b/a name and if that d/b/a name appears in the appropriate place on the application that was approved by the SPC or the LEC."

In §333.7(d)(10), language is added to the rule to clarify its requirements. The rule is changed to read as follows: "The list of statewide organizations will alternate with the list of local organizations in appearing first on the directory. If in one year the list of statewide organizations appears on the directory before the list of local organizations, the following year the list of local organizations will appear before the statewide organizations. Similarly, the list of local federations will alternate with the list of unaffiliated local organizations each year. Federations will be listed in alphabetical order within their respective sections in the directory."

Section 333.7 is also changed, by adding references to the comptroller and to the SPC, to clarify that the use of the term "state" in §333.7(e)(1) refers to the comptroller and to the SPC. A new sentence is added at the end of §333.7(e)(2) to clarify that the SPC will not approve the forms under subsection (e)(2) that are not in compliance with the forms approved by the comptroller and the SPC, instead of merely using the words "state approved." The word "forms" after "on-line" is changed to "form." The words, "prior to its use" are added at the end of what becomes the penultimate sentence.

In §333.7(f)(3), for clarification, the words "if applicable" are changed to read "if such process is provided."

The changes to the proposed rules as published are grammatical changes, punctuation changes, and clarification changes. The changes affect no new persons, entities, or subjects other than those given notice, and compliance with the adopted sections will not be affected.

These new sections are adopted under Government Code, §659.139, which provides that the SECC must be managed fairly and equitably in accordance with the SECC law and the policies and procedures established by the SPC. The SPC interprets this statute to authorize the adoption of rules to the extent that the policies and procedures adopted are of general applicability and affect the rights of third parties, namely charitable organizations, local campaign managers, local employee committees, the state advisory committee, the state campaign manager, and state employees.

The other statute, article, or section affected by the adopted rules is Government Code, §659.140, which requires the SPC to approve the generic materials to be used by campaign managers, and Government Code, §659.143, which requires that the local employee committees (LECs) approve the recommended generic materials to be used by campaign managers. Comptroller rule 34 TAC §5.48 also requires the LECs to approve the local campaign materials to be used in their respective local campaign areas.

§333.3.Campaign Theme Submission.

(a) Campaign managers may submit theme nominations every even numbered year on or before 10 business days prior to the annual State Employee Charitable Campaign (SECC) Conference.

(b) SECC Conference attendees, by vote, may choose no more than three themes to be forwarded to the State Advisory Committee (SAC) and State Employee Charitable Campaign Policy Committee (SPC) for consideration and approval. The SPC, after considering any SAC recommendation, may approve or reject some or all of the themes submitted. The SPC may approve up to three themes for use in the same campaign year. After considering any SAC recommendation, the SPC shall vote and choose one theme to be used for a central purchasing process, if such a process is provided by the state campaign manager (SCM).

§333.5.Use of Campaign Materials.

(a) If a central purchasing process is used, the state campaign manager (SCM) will order materials depicting only one of the themes approved by the State Employee Charitable Campaign Policy Committee (SPC).

(b) Local campaign areas will have the option of using the campaign materials ordered through the central purchasing process or ordering their own campaign materials incorporating any one of the other approved themes, if any other themes are approved by the SPC.

(c) Neither the State Advisory Committee (SAC) nor the SPC shall consider themes that are submitted after the annual State Employee Charitable Campaign Conference attendees have voted on the themes to be considered by the SAC and SPC.

§333.7.Campaign Materials Guidelines.

(a) Local materials not ordered through the state campaign manager must be submitted each year to the state advisory committee for recommendation to the state policy committee for approval.

(b) The following are guidelines for the creation and production of any materials used for the State Employee Charitable Campaign (SECC).

(1) Campaign managers will submit possible themes every second year in January at the annual SECC Workshop/Conference.

(2) Attendees will chose up to three themes, which will be submitted to the State Advisory Committee (SAC) and State Employee Charitable Campaign Policy Committee (SPC) for approval.

(3) Based upon SAC recommendation and SPC approval, if central purchasing is available, the SCM will order materials depicting one of the approved themes, as decided upon by the SPC.

(4) Local areas may use centrally purchased materials, or local areas may order their own materials incorporating any of the approved themes, if the local area submits samples, pictures, or adequate descriptions of those materials to the SAC, and if those materials are approved by the SPC.

(5) All materials must include the SECC flag logo, as well as the approved theme.

(c) The following are guidelines to be used for the creation and production of directories for the State Employee Charitable Campaign.

(1) The cover of the directory must include one of the SPC approved themes.

(2) The cover or back cover of the directory must include the SECC flag logo.

(3) There are no restrictions on paper quality.

(4) The directory may be printed in color or in black and white.

(5) The general directory information and statewide federation listings that are available on-line must be used in the original format.

(6) The directory listings must include a six-digit code, the name of charity (federations and affiliates must be included), a phone number, a 25-word description, and administrative costs; a web address is optional. The name of the charity that shall appear on the directory is the legal name of the charity as it is filed with the Secretary of State. However, the d/b/a/ name may appear on the directory instead, if the charity has a d/b/a/ name and if that d/b/a/ name appears in the appropriate place on the application that was approved by the SPC or the LEC.

(7) The font size and type must be consistent throughout the directory with no differentiation made between statewide and local charities.

(8) The directory may be printed on paper that is 8-1/2 inches by 11 inches or 11 inches by 17 inches.

(9) A suggested ratio is one directory for each five state employees.

(10) The list of statewide organizations will alternate with the list of local organizations in appearing first on the directory. If in one year the list of statewide organizations appears before the list of local organizations, the following year the list of local organizations will appear before the statewide organizations. Similarly, the list of local federations will alternate with the list of unaffiliated local organizations each year. Federations will be listed in alphabetical order within their respective sections in the directory.

(d) If a mini-directory is used, the following guidelines will apply.

(1) The cover of the directory must include one of the SPC approved themes.

(2) The cover or back cover of the directory must include the SECC flag logo.

(3) There are no restrictions on paper quality.

(4) The directory may be printed in color or in black and white.

(5) General directory information is not required.

(6) Listings must include a six-digit code and the name of the charity (federation and affiliates must be included). The name of the charity that shall appear on the directory is the legal name of the charity as it is filed with the Secretary of State. However, the d/b/a/ name may appear on the directory instead, if the charity has a d/b/a/ name and if that d/b/a/ name appears in the appropriate place on the application that was approved by the SPC or the LEC.

(7) Font size and type must be consistent throughout directory with no differentiation made between statewide and local charities.

(8) There are no size restrictions.

(9) A suggested ratio is one mini-directory for each state employee.

(10) The list of statewide organizations will alternate with the list of local organizations in appearing first on the directory. If in one year the list of statewide organizations appears before the list of local organizations, the following year the list of local organizations will appear before the statewide organizations. Similarly, the list of local federations will alternate with the list of unaffiliated local organizations each year. Federations will be listed in alphabetical order within their respective sections in the directory.

(e) The following are guidelines to be used for the creation and production of authorization forms (pledge form).

(1) Only forms approved by the SPC and the comptroller may be used.

(2) Any locally printed form, including higher education, scannable, and on-line form, must be submitted annually for recommendation by the SAC and approval by the SPC prior to its use. The SPC will not approve any forms that are not in compliance with the forms approved by the comptroller and the SPC.

(f) The following are guidelines to be used for the creation of other campaign materials.

(1) All items must include one of the SPC approved themes.

(2) All items must include the SECC flag logo.

(3) Any campaign materials not ordered through the state campaign manager central purchasing process, if such process is provided, must be submitted to the SAC for recommendation and to the SPC for approval.

(4) any campaign materials not approved by the SPC are not eligible for campaign reimbursement.

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 3, 2002.

TRD-200203430

Steve Robinson

Chair, Policy Committee

State Employee Charitable Campaign

Effective date: June 23, 2002

Proposal publication date: February 8, 2002

For further information, please call: (512) 463-3699


Chapter 334. GRIEVANCE PROCEDURES

34 TAC §334.1, §334.3

The State Employee Charitable Campaign Policy Committee (SPC) adopts new §334.1 and §334.3, concerning grievance procedures, with changes to the proposed text as published in the February 8, 2002, issue of the Texas Register (27 TexReg 879).

These new rules codify existing SPC policy and establish new procedures for submitting grievances regarding the State Employee Charitable Campaign (SECC) campaign to Local Employee Committees (LECs) and to the SPC. Section 334.1 provides a procedure for filing grievances concerning local campaign issues. An aggrieved party must file the grievance with the LEC in accordance with the rule, prior to filing the grievance with the SPC. The LEC is better suited to handle issues that arise in the local area. If the complaint concerns the LEC, the LEC will have the opportunity to address the grievance and perhaps take steps to remedy the situation, if appropriate. Section 334.3 provides a procedure for filing grievances concerning statewide campaign issues. The grievances covered by this rule would address issues that the SPC may be best suited to handle, at least initially. If the SPC determined that certain issues were better addressed by an LEC, the SPC would refer those issues to the LEC. The bifurcated approach to handling grievances that these rules follow ensures that grievances are directed at the right parties that are in the best position to act to resolve any given issue.

No comments were received regarding adoption of the new rules.

Changes have been made to §334.1(3) and §334.3(1) to omit reference to the United Way of Texas and to the street address of the United Way of Texas for purposes of administrative convenience in the event that information becomes outdated.

These new rules are adopted under Government Code, §659.139, which provides that the State Employee Charitable Campaign (SECC) must be managed fairly and equitably in accordance with the SECC law and the policies and procedures established by the state policy committee. The SPC interprets this statute to authorize the adoption of rules to the extent that the policies and procedures adopted are of general applicability and affect the rights of third parties, namely charitable organizations, local campaign managers, local employee committees, the state advisory committee, the state campaign manager, and state employees. These sections are also proposed under Government Code, §659.140(e)(6), which requires the SPC to perform other duties prescribed by comptroller rules. Comptroller rule 34 TAC §5.48(n)(2)(I) authorizes the SPC to establish policies and procedures regarding the hearing of any grievance concerning the operation and administration of the campaign.

The other statute, article, or section affected by the adopted rules is Government Code, §659.140(e)(5), which requires the SPC to oversee the state employee charitable campaign to ensure that all campaign activities are conducted fairly and equitably to promote unified solicitation on behalf of all participants.

§334.1.Procedures for Grievances Involving Local Campaign Issues.

The State Employee Charitable Campaign (SECC) is conducted in accordance with state law, the comptroller's rules and State Employee Charitable Campaign Policy Committee (SPC) rules. While the SPC is responsible for oversight of the SECC and insuring compliance by all parties, the day-to-day oversight of the SECC rests with the Local Employee Committees. The Local Employee Committee (LEC), composed of 5 to 10 local state employees and the local chair, is responsible for oversight of the local SECC to ensure that all campaign activities are conducted in accordance with state law and that they fairly and equitably promote unified solicitation on behalf of all participants. In order to expedite the handling of complaints and grievances pertaining to SECC and to ensure the input of all concerned parties, the following grievance policy shall be followed.

(1) A state employee or charitable organization, including a federation/affiliate charity representative, may lodge a grievance pertaining to the conduct of the SECC at the local level or regarding an LEC, local campaign manager (LCM), or local charitable organization or local federation or fund. The grievance shall be submitted in writing to the LEC chair in whose area the grievance originates.

(2) The chair of the LEC shall provide a written response to the grievance within 10 business days.

(3) If the aggrieved party has received no response within the specified time frame or is not satisfied with the response provided by the LEC, the aggrieved party may submit the grievance to the State Policy Committee by delivery to the address of the State Campaign Manager.

(4) The grievance shall contain a copy of the original grievance submitted to the LEC and the LEC response. If the LEC failed to respond to the original grievance within the specified time frame, the failure to respond should be stated in the submission to the SPC.

(5) Any grievance submitted to the SPC without first being submitted to the LEC will not be acted upon but will be returned to the appropriate LEC for action.

(6) A grievance properly received by the SPC will be reviewed and may be acted upon at the next scheduled SPC meeting, if possible.

§334.3.Procedures for Grievances Involving Statewide Campaign Issues.

State Employee Charitable Campaign (SECC) is conducted in accordance with state law, the comptroller's rules and SPC rules. While the State Employee Charitable Campaign Policy Committee (SPC) is responsible for oversight of the SECC and insuring compliance by all parties, the day-to-day oversight of the SECC rests with the Local Employee Committees. The Local Employee Committee (LEC), composed of 5 to 10 local state employees and the local chair, is responsible for oversight of the local SECC to ensure that all campaign activities are conducted in accordance with state law and that they fairly and equitably promote unified solicitation on behalf of all participants. In order to expedite the handling of complaints and grievances pertaining to SECC and to ensure in put of all concerned parties, the following grievance policy shall be followed.

(1) A state employee or charitable organization, including a federation/affiliate charity representative may lodge a grievance pertaining to the conduct of the State Employee Charitable Campaign at the statewide level, regarding any SECC matter occurring at the statewide level, or regarding the SPC, the state campaign manager (SCM), or a statewide charitable organization, including a statewide federation or fund. Grievances shall be sent to the State Policy Committee by delivery to the address of the State Campaign Manager.

(2) The aggrieved party shall cooperate with the SPC to investigate the grievance. The decision of the SPC shall be final.

(3) Any grievance submitted to the SPC may be referred to the appropriate LEC for review and action if the grievance concerns local issues.

(4) A grievance properly received by the SPC will be reviewed and may be acted upon at the next scheduled SPC meeting, if possible.

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 3, 2002.

TRD-200203431

Steve Robinson

Chair, Policy Committee

State Employee Charitable Campaign

Effective date: June 23, 2002

Proposal publication date: February 8, 2002

For further information, please call: (512) 463-3699