The Office of the Attorney General (OAG) adopts new Chapter 60, subchapters A - F, relating to rules governing the Texas Crime Victim Services Grant Programs. The OAG adopts new Subchapter A, §§60.1 - 60.13; Subchapter B, §§60.100 - 60.103; Subchapter C, §§60.200 - 60.208; Subchapter D, §60.300 and §60.301; Subchapter E, §§60.400 - 60.409; and Subchapter F, §§60.500 - 60.503. Section 60.1 - 60.3, 60.5 - 60.7, 60.10, 60.13, 60.100, 60.101 and 60.405 are adopted with changes to the proposed text as published in the April 25, 2003, issue of the Texas Register (28 TexReg 3412) and are published herein. Sections 60.4, 60.8, 60.9, 60.11, 60.12, 60.102, 60.103, 60.200 - 60.208, 60.300, 60.301, 60.400 - 60.404, 60.406 - 60.409 and 60.500 - 60.503 are adopted without changes to the proposed text as published in the April 25, 2003, issue of the Texas Register (28 TexReg 3412) and will not be republished.

According to Article I, Section 31 of the Texas Constitution, the Compensation to Victims of Crime (CVC) fund may be expended as provided by law only for delivering or funding victim-related compensation, services, or assistance. Article 56.541(e) of the Texas Code of Criminal Procedure provides that the OAG may use CVC funds for grants or contracts supporting crime victim-related services or assistance. Subsection (f) of the Article requires the OAG to adopt rules necessary to carrying out the Article's provisions.

The OAG conducted a review of Title 1, Chapters 60 and 63 of the Administrative Code and determined that the rules warranted a substantial reorganization. Specifically, the rules included in Chapters 60 and 63 contained confusing terminology, were difficult to apply and were not consistent with law or the business operations of the OAG. To streamline the victims' assistance grant application and administrative process, Chapters 60 and 63 were merged into one chapter, and the consolidated rules are being published simultaneously with the repeal of the rules contained in Chapters 60 and 63. The expected effects of the new rules, in conjunction with the repeal, are an improved grant application process and streamlined grant administration, consistent with applicable law and the business operations of the OAG.

Following proposal of the new rules, the Texas Legislature adopted the Appropriations Act for the 2004 - 2005 Fiscal Biennium. Based on the relevant line item appropriations in that act, the OAG determined that the name of the "Victims Assistance Discretionary Grants" program should be changed to "Other Victim Assistance Grants" in order to ensure that the rules conform with the grant program's appropriation. Moreover, the OAG determined that minor changes were necessary to carry out the legislative mandate that the OAG "adopt rules for the competitive allocation of funds under . . . Other Victim Assistance Grants."

The new rules are organized into six Subchapters: A, B, C, D, E, and F.

Subchapter A (General Provisions and Eligibility, §§60.1 - 60.13). Section 60.1 provides definitions for terms and abbreviations used in the chapter. Section 60.2 states that the rules will apply to the Other Victim Assistance Grants (OVAG) and Victim Coordinator and Liaison Grants (VCLG) programs. Section 60.3 describes the source and competitive allocation of the funds for the OVAG and VCLG programs. Section 60.4 provides that, if a grant application is approved, funding is contingent upon appropriation of funds by the Texas Legislature. Section 60.5 enumerates the purposes of the OVAG and VCLG funds. Section 60.6 lists eligible purpose areas of OVAG funds. Section 60.7 lists the entities eligible to apply under the OVAG Program. Section 60.8 lists the applicants eligible to apply under the VCLG Program. Section 60.9 enumerates eligible budget categories for both the OVAG and VCLG programs. Section 60.10 provides funding maximums for local and statewide programs under both the OVAG and VCLG programs. Section 60.11 sets out the applicable grant period. Section 60.12 makes clear that continued funding of a grant depends upon a grantee's past performance. Section 60.13 describes the OAG's authority to fund grant projects outside the standard application cycle.

Subchapter B (Application, Review and Award Process, §§60.100 - 60.103). Section 60.100 describes how a potential applicant may obtain an application kit and provides deadlines for the application's submission. Section 60.101 describes the scoring and review process and specifies that allocation of OVAG funds shall be competitive. Section 60.102 describes how an applicant will be notified of an award and requires an applicant to accept or reject the award within a certain time period. Section 60.103 sets out the steps an applicant must take to obtain a review of the denial of its application.

Subchapter C (Grant Budget Requirements, §§60.200 - 60.208). Section 60.200 provides general provisions applicable to an applicant's budget. Section 60.201 lists the requirements for the salary budget category. Section 60.202 defines "fringe benefits" and authorizes grant funds to be used for fringe benefits in limited circumstances. Section 60.203 describes the limited circumstances under which a grantee may be reimbursed for professional and consultant services. Section 60.204 provides limitations for reimbursement of travel expenses. Section 60.205 defines "equipment" and sets guidelines for the inclusion of equipment costs in an applicant's budget. Section 60.206 describes the types of supplies that may be included in an applicant's budget. Section 60.207 defines "other direct operating expenses" for inclusion in an applicant's budget. Section 60.208 places conditions on the inclusion of "indirect costs" in an applicant's budget.

Subchapter D (Required Attachments, §60.300 and §60.301). Section 60.300 lists required certifications and assurances. Section 60.301 requires that a resolution be included in the applicant's application.

Subchapter E (Administering Grants, §§60.400 - 60.409). Section 60.400 states that all required forms will be provided by the OAG and that untimely submission of these forms may result in sanctions. Section 60.401 requires an applicant to designate a grant contact and an authorized signator for grant administration purposes. Section 60.402 requires a grantee to submit to the OAG documentation of its financial status. Section 60.403 requires grantees to provide performance reports to the OAG and to submit to assessments of a project's effectiveness. Section 60.404 requires a grantee to maintain and submit inventory reports to the OAG. Section 60.405 limits the number of grant adjustments an applicant may undertake and places specific requirements on a grantee making such an adjustment. Section 60.406 reserves in the OAG a license to use a grantee's copyright obtained through grant funds. Section 60.407 requires a grantee to comply with Uniform Grant Management Standards throughout the grant administration process. Section 60.408 requires a grantee to retain records relating to the grant for a specific time period. Section 60.409 provides possible sanctions for a grantee's failure to comply with the rules and details the actions a grantee must undertake to obtain a review of any sanctions imposed.

Subchapter F (Program Monitoring and Auditing, §§60.500 - 60.503). Section 60.500 requires a grantee to notify the OAG, and the local prosecutor if applicable, of any violation, or possible violation, of law relating to the grant. Section 60.501 prevents persons affiliated with a grant from participating in any action that would directly or indirectly be a personal benefit to the person or the person's relatives. Section 60.502 details the quality assurance measures the OAG will conduct throughout the grant period. Section 60.503 requires a grantee to conduct or undergo annual grant audits and to provide the results of the audit to the OAG.

No comments were received regarding the rules adopted herein.

Subchapter A. GENERAL PROVISIONS AND ELIGIBILITY

The Office of the Attorney General (OAG) adopts the repeal of Title 1, Texas Administrative Code (TAC) Chapter 63, Subchapters A - J, relating to rules for victims' assistance grant approval and administration. The OAG adopts the repeal of Subchapter A, (General Provisions, §63.1 and §63.3); Subchapter B, (Grants for Victim Assistance Coordinator or Crime Victim Liaison, §§63.11, 63.13, 63.15, 63.17 and 63.19); Subchapter C, (Grants for Statewide Training for Programs That Benefit Victims of Sexual Assault and to Purchase Forensic Exam Equipment, §§63.31, 63.33, 63.35, 63.37 and 63.39); Subchapter D, (Grant Application, Scope of Grant, Approval, §§63.51, 63.53, 63.55 and 63.57); Subchapter E, (Funding of Grants, §63.71 and §63.73); Subchapter F, (Grant Budget Requirements, §§63.81, 63.83, 63.85, 63.87, 63.89 and 63.91); Subchapter G, (Special Conditions and Required Documents, §§63.101, 63.103, 63.105, 63.107, 63.109, 63.111, 63.113, 63.115, 63.117, 63.119, 63.121, 63.123 and 63.125); Subchapter H, (Award and Grant Acceptance, §§63.127, 63.129 and 63.131); Subchapter I, (Administering Grants, §§63.141, 63.143, 63.145, 63.147, 63.149, 63.151, 63.153, 63.155, 63.157, 63.159, 63.161, 63.163, 63.165, 63.167, 63.169, 63.171, 63.173, 63.175, 63.177, 63.179, 63.181, 63.183 and 63.185); and Subchapter J, (Program Monitoring and Audits, §§63.191, 63.193 and 63.195). The repeal is adopted without changes from the proposal as published in the April 25, 2003, issue of the Texas Register (28 TexReg 3418) and will not be republished.

Article 56.541 of the Texas Code of Criminal Procedure governs the appropriation of excess money for crime victim assistance other than the Crime Victims' Compensation Fund. Subsection (f) of the Article mandates that the OAG adopt rules necessary to carrying out the Article's provisions. The OAG conducted a review of the rules it had previously adopted pursuant to Article 56.541 and concluded that the rules warranted a substantial overhaul. Specifically, the rules contained confusing terminology and were merged with a related Chapter in Title 1 of the Administrative Code, Chapter 60, in order to streamline the victims' assistance grant application and administration process. The consolidated and updated rules are being adopted and published simultaneously with the repeal adopted herein. The expected effects of the repeal, in conjunction with the adoption of the new rules, are streamlined grant administration and an improved grant application process.

No comments regarding the repeal were received by the OAG.

Subchapter A. GENERAL PROVISIONS