TITLE 34.PUBLIC FINANCE

Part 12. STATE EMPLOYEE CHARITABLE CAMPAIGN

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

34 TAC §329.1

The State Policy Committee (SPC) of the Texas State Employee Charitable Campaign (SECC) adopts new rule §329.1, concerning audit and review requirements, without changes to the proposed text as published in the December 20, 2002, issue of the Texas Register (27 TexReg 11901).

This new rule is adopted to be codified at Title 34 Texas Administrative Code, Part 12, State Employee Charitable Campaign, State Policy Committee, Chapter 329, Eligibility Criteria For Statewide Federations/Funds And Affiliated Organizations.

This new rule will codify existing SPC policy regarding the standards and criteria that the SPC will 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.

§329.1 sets out the audit and other financial information that must be submitted to the SPC to determine eligibility or organizations to participate. The statute does not specify what year should be audited and reported in an application to participate and does not specify whether the audit or review and the Form 990 submitted should cover the same year. When the forms submitted do not cover the same year, the SPC is unable to cross-check the information being provided to ensure compliance with the statutory requirements. This rule tells organizations what financial documentation is required at the time of application.

When this rule first was published in February 2002, comments were received from the Local Campaign Manager in Midland, Texas requesting that language be included in §329.1, to require statewide organizations that have a budget of greater than $100,000 to submit an IRS Form 990 in addition to the audit already required. The SPC does not agree. The SECC statute expressly requires an IRS Form 990 from organizations with a budget of $100,000 or less. However, the same statute does not require the Form 990 from organizations with a budget of more than $100,000. Therefore, the SPC cannot add an eligibility requirement that the legislature intended not be required.

However, this rule does include language suggested by the same commenter that a copy of the report of required audits be provided to the SPC. The SPC requires a copy of the audit information that is required by statute to determine an applicant's eligibility to participate in the SECC campaign. This rule makes clear the intent of the statute that the audit be provided to the SPC so that the SPC can determine the eligibility of those organizations that are audited as well as those that merely provide an accountant's report and a Form 990.

The new rule is adopted under the authority of Texas 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.

No comments were received regarding adoption of the new rule.

Other statutes, articles, or sections affected by the adopted rules are: Texas 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 April 11, 2003.

TRD-200302363

Steve Robinson

Chair, Policy Committee

State Employee Charitable Campaign

Effective date: May 1, 2003

Proposal publication date: December 20, 2002

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


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

34 TAC §330.1

The State Policy Committee (SPC) of the Texas State Employee Charitable Campaign (SECC) adopts new §330.1, concerning audit and review requirements, without changes to the proposed text as published in the December 20, 2002, issue of the Texas Register (27 TexReg 11902).

This new rule is adopted to be codified at Title 34 Texas Administrative Code, Part 12, State Employee Charitable Campaign, State Policy Committee, Chapter, 330, Eligibility criteria for local federations/funds, affiliated organizations, and local charitable organizations.

This new rule will codify existing SPC policy regarding the standards and criteria that the LEC 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.

Section 330.1 sets out the audit and other financial information that must be submitted to the LEC to determine eligibility of organizations to participate. The statute does not specify what year should be audited and reported in an application to participate and does not specify whether the audit or review and the Form 990 submitted should cover the same year. When the forms submitted do not cover the same year, the LEC is unable to cross-check the information being provided to ensure compliance with the statutory requirements. This rule tells organizations what financial documentation is required at the time of application.

When this rule first was published in the February 8, 2002, issue of the Texas Register (27 TexReg 874), comments were received from the Local Campaign Manager in Midland, Texas requesting that language be included in §330.1, to require organizations that have a budget of greater than $100,000 to submit an IRS Form 990 in addition to the audit already required. The SPC does not agree. The SECC statute expressly requires an IRS Form 990 from organizations with a budget of $100,000 or less. However, the same statute does not require the Form 990 from organizations with a budget of more than $100,000. Therefore, the SPC cannot add an eligibility requirement that the legislature intended not be required.

However, this rule does include language suggested by the same commenter that a copy of the report of required audits be provided to the LEC. The LEC requires a copy of the audit information that is required by statute to determine an applicant's eligibility to participate in the SECC campaign. This rule makes clear the intent of the statute that the audit be provided to the LEC so that the LEC can determine the eligibility of those organizations that are audited as well as those that merely provide an accountant's report and a Form 990.

No comments were received regarding adoption of the new rule.

The new rule is adopted under the authority of Texas 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.

Other statutes, articles, or sections affected by the adopted rules are: Texas 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 April 11, 2003.

TRD-200302364

Steve Robinson

Chair, Policy Committee

State Employee Charitable Campaign

Effective date: May 1, 2003

Proposal publication date: December 20, 2002

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


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

34 TAC §331.1

The State Employee Charitable Campaign Policy Committee (SPC), adopts new §331.1, concerning administrative review, without changes to the proposed text as published in the December 20, 2002, issue of the Texas Register (27 TexReg 11903).

This new section is adopted to codify existing SPC policy regarding the process by which applications for State Employee Charitable Campaign (SECC) participation are reviewed by the SPC. Currently, SPC policy provides for an administrative review to be performed by the State Advisory Committee (SAC) prior to applications being sent to the SPC for substantive review. This rule provides for the State Campaign Manager (SCM) to conduct the administrative review, instead of the SAC.

The administrative review is not one of the SAC's statutory duties, and the SPC has determined that the review may be completed more efficiently and with less unnecessary burden on the SAC if it is conducted at the administrative level. The risk of losing applications and related information is minimized as a result of shifting this task to the SCM because the need to mail the voluminous materials to SAC members in various locations throughout the state is eliminated.

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, which provides application requirements for statewide organizations 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 April 11, 2003.

TRD-200302365

Steve Robinson

Chair, Policy Committee

State Employee Charitable Campaign

Effective date: May 1, 2003

Proposal publication date: December 20, 2002

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


Chapter 333. CAMPAIGN MATERIALS

34 TAC §§333.3, 333.5, 333.7

The State Policy Committee (SPC) of the Texas State Employee Charitable Campaign (SECC) adopts amendments to §§333.3, 333.5, and 333.7, concerning campaign theme submission, use of campaign materials, and campaign materials guidelines, without changes to the proposed text as published in the December 20, 2002, issue of the Texas Register (27 TexReg 11904).

These amendments are adopted to be codified at Title 34 Texas Administrative Code, Part 12, State Employee Charitable Campaign, State Policy Committee, Chapter 333, Campaign Materials.

These amended rules will provide consistency among the rules regarding the process and standards by which campaign logos, themes, and materials are submitted and approved, and clarify rules regarding the ratio for distribution of directories and mini-directories and clarify rules regarding materials created by institutions of higher education.

The amendments to §§333.3(a), 333.5(c), and 333.7(b)(1) clarify that neither the SAC nor the SPC will consider for approval any themes submitted after the deadline to submit themes 10 business days prior to the annual SECC Workshop/Conference provided for in §333.3(a).

Amendments to subsections (c) and (d) of §333.7 clarify that the suggested ratio referred to in the rule is a ratio for the distribution of directories and mini-directories.

The amendments to §333.7(e), which consist mainly of changes in sentence structure, clarify the existing rule that the materials created by institutions of higher education also are considered locally-printed forms and must be approved prior to their use.

The amendments are adopted under the authority of Texas 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.

Other statutes, articles, or sections affected by the adopted amendments are: Texas Government Code, §659.140, which requires the SPC to approve the generic materials to be used by campaign managers, and §659.143 which requires the LECs to 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.

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 11, 2003.

TRD-200302366

Steve Robinson

Chair, Policy Committee

State Employee Charitable Campaign

Effective date: May 1, 2003

Proposal publication date: December 20, 2002

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