Part 1. TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS

Chapter 1. ADMINISTRATION

Subchapter A. GENERAL POLICIES AND PROCEDURES

10 TAC §1.7

The Texas Department of Housing and Community Affairs (the Department) proposes to amend §1.7, concerning the Staff Appeals Process. This amendment makes technical changes; clarifies that tax exempt bond and tax credit applications not subject to the State housing credit ceiling may use this appeal process; changes the appeal period to seven days to be consistent with §2306.6715(c), Texas Government Code; clarifies that the Board’s appeal is "de novo;" adds a public comment provision; and provides a "good cause" exception to hear appeals not submitted in accordance with the section.

Ms. Edwina P. Carrington, Executive Director, has determined that for the first five-year period the amendment is in effect there will be no fiscal implications on state or local government as a result of enforcing or administering this section.

Ms. Carrington has also determined that for the first five-year period the section is in effect the public benefit anticipated as a result of enforcing this proposed section will be to provide a more efficient appeals process. There will be no effect on persons, small businesses or micro-businesses. There is no anticipated economic cost to persons, small businesses or micro-businesses who are required to comply with this section as proposed.

Comments on the proposal may be submitted to Mr. Chris Wittmayer, General Counsel, Texas Department of Housing and Community Affairs, P. O. Box 13941, Austin, Texas 78711-3941, cwittmay@tdhca.state.tx.us, or by fax at 512/475-3978, within thirty days of this notice.

This section is proposed pursuant to the authority of the Texas Government Code, Chapter 2306.

No other code, article or statutes are affected by this section.

§1.7.Staff Appeals Process.

(a) Definitions. The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.

(1) Appeal file--The written record of an appeal that contains the applicant's appeal; the responses , if any, of Department staff, and the executive director, [ and the board, as applicable; ] and the final decision.

(2) Applicant--A person who has submitted [ submits, or is preparing to submit, ] to the Department an application for Department funds or other assistance.

(3) Application--The written request for Department funds or other assistance in the format required by the Department including any exhibits or other supporting material.

(4) Board--The Governing Board [ board of directors ] of the Texas Department of Housing and Community Affairs.

(5) Department--The Texas Department of Housing and Community Affairs.

[ (6) Low-income housing tax credit--The credit against federal income tax as provided for in §42 of the Internal Revenue Code (42 U.S.C. §42.) ]

(6) [ (7) ] Person--Any individual, partnership, corporation, association, unit of government, community action agency, or public or private organization of any character.

(b) Grounds. This appeal process is available to any Applicant, including for tax exempt bonds and low income housing tax credits under 26 U.S.C. §42, except for low income housing tax credits which are subject to the State housing credit ceiling and which have a separate appeals process. An Applicant [ applicant ] for funding or other assistance from the Department[ , other than low-income housing tax credits, ] may only appeal the disposition of the Application [ its application ] by Department staff based on one or more of the following grounds.

(1) Misplacement of an Application [ application ]. All or a portion of the Application [ application ] is lost, misfiled, or otherwise misplaced by Department staff resulting in unequal consideration of the Applicant’s [ applicant’s ] proposal.

(2) Mathematical error. In rating an Application [ application ], the score on any selection criteria is incorrectly computed by the Department due to human or computer error.

(3) Procedural error. The Application [ application ] is not processed by Department staff in accordance with the Application [ application ] and selection rules in effect for the current application cycle.

(c) Appeal to the executive director. An Applicant [ applicant ] must file a written Appeal [ appeal ] with the Department not later than the seventh [ fourteenth ]day after the date the Department publishes notice on its website of the results of the Application [ application ] evaluation process or, in the case of private activity mortgage revenue bond programs, after written notice has been provided to the Applicant [ applicant ], whichever is earlier. The notice must include specific information relating to the disposition of each Application [ application ], including the reasons for disqualification or summaries detailing the points awarded. The Applicant [ applicant ] must specifically identify the Applicant’s [ applicant’s ] grounds for the Appeal [ appeal ] based on the disposition of it’s Application [ application ]. Upon receipt of an Appeal [ appeal ], staff shall prepare an Appeal [ appeal ] file for the executive director's review. The executive director shall respond in writing to the Appeal [ appeal ] not later than the fourteenth day after the date of receipt of the Appeal [ appeal ]. The executive director may take one of the following actions.

(1) Concur with the Appeal [ appeal ] and make the appropriate adjustments to the staff's decision; or

(2) Disagree with the Appeal [ appeal ] and provide the basis for rejecting the Appeal [ appeal ] to the Applicant [ applicant ].

(d) Appeal to the Board. If the Applicant [ applicant ] is not satisfied with the executive director's response to the Appeal [ appeal ], the Applicant [ applicant ] may appeal in writing directly to the Board [ board ] within seven [ sixty ]days after the date of the executive director's response. The executive director shall prepare an Appeal [ appeal ] file for the board's review. The Board may not consider any information submitted by the Applicant after the written appeal. The Board will review the Appeal de novo and may consider any information properly considered by the Department in making its prior decision(s). [ The board may not review any information not submitted by the applicant at least seven days before the board meeting. ]

(e) Public Comment. The Board will hear public comment on the Appeal under its usual procedures. While public comment will be heard, persons making public comment are not parties to the Appeal and no rights accrue to them under this section or Appeal process.

(f) [ (e) ] Possible actions. In instances in which the Appeal [ appeal ] if sustained by the Board [ board ] could have resulted in an award to the Applicant [ applicant ], the Application [ application ] shall be approved by the Board [ board ] contingent on the availability of funds. If no funds are available in the current year's funding cycle, then the Applicant [ applicant ] shall be awarded funds from the next year's available funding or from the pool of deobligated funds. In the case of private activity mortgage revenue bond programs, the Applicant [ applicant ] shall be encouraged to reapply in the next year's program funding cycle. If the Appeal [ appeal ] is denied, [ rejected, ]the Department shall notify the Applicant [ applicant ] of the [ its ] decision, including the basis for [ final ] denial.

(g) [ (f) ] Final Decision. Appeals not submitted in accordance with this section will not be considered, unless the Department or Board, in the exercise of its discretion, determines there is good cause to consider the appeal. [ are dismissed and shall not be granted an extension to refile if the time period for filing an appeal has expired. ] The decision of the Board [ board ] is final.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on April 18, 2003.

TRD-200302542

Edwina P. Carrington

Executive Director

Texas Department of Housing and Community Affairs

Earliest possible date of adoption: June 1, 2003

For further information, please call: (512) 475-3726

10 TAC §1.8

The Texas Department of Housing and Community Affairs (the Department) proposes to amend §1.8, concerning the Board Appeals Process. This amendment makes technical changes; eliminates the advisory Board Appeals Committee; clarifies that tax exempt bond and tax credit applications not subject to the State housing credit ceiling may use this appeal process; changes the appeal period to seven days to be consistent with §2306.6715(c), Texas Government Code; clarifies that the Board’s appeal is "de novo;" adds a public comment provision; and provides a "good cause" exception to hear appeals not submitted in accordance with the section.

Ms. Edwina P. Carrington, Executive Director, has determined that for the first five-year period the amendment is in effect there will be no fiscal implications on state or local government as a result of enforcing or administering this section.

Ms. Carrington has also determined that for the first five-year period the section is in effect the public benefit anticipated as a result of enforcing this proposed section will be to provide a more efficient appeals process. There will be no effect on persons, small businesses or micro-businesses. There is no anticipated economic cost to persons, small businesses or micro-businesses who are required to comply with this section, as proposed.

Comments on the proposal may be submitted to Mr. Chris Wittmayer, General Counsel, Texas Department of Housing and Community Affairs, P. O. Box 13941, Austin, Texas 78711-3941, cwittmay@tdhca.state.tx.us, or by fax at 512/475-3978, within thirty days of this notice.

This section is proposed pursuant to the authority of the Texas Government Code, Chapter 2306.

No other code, article or statutes are affected by this section.

§1.8.Board Appeals Process.

(a) Definitions. The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.

(1) Appeal file--The written record of an appeal that contains the applicant's appeal; the responses , if any, of Department staff, and the executive director, [ and the board, as applicable; ] and the final decision.

(2) Applicant--A person who has submitted [ submits, or is preparing to submit, ] to the Department an application for Department funds or other assistance.

(3) Application--The written request for Department funds or other assistance in the format required by the Department including any exhibits or other supporting material.

(4) Board--The Governing Board [ board of directors ] of the Texas Department of Housing and Community Affairs.

[ (5) Board Appeals Committee--A committee of three board members appointed by the presiding officer of the board to handle appeals of board actions.]

[ (6) Committee--The Board Appeals Process Committee.]

(5) [ (7) ] Department--The Texas Department of Housing and Community Affairs.

[ (8) Low-income housing tax credit--The credit against federal income tax as provided for in §42 of the Internal Revenue Code (42 U.S.C. §42.) ]

(6) [ (9) ] Person--Any individual, partnership, corporation, association, unit of government, community action agency, or public or private organization of any character.

(b) Grounds. An Applicant [ applicant ] for funding or other assistance from the Department[ , other than low-income housing tax credits, ] may only appeal the disposition of the Application [ its application ] by the Board [ board ] based on an action taken by the Board [ board ] which was allegedly not made in accordance with the applicable rules. This Appeal process is available to any Applicant, including for tax exempt bonds and low income housing tax credits under 26 U.S.C. §42, except for low income housing tax credits which are subject to the State housing credit ceiling and which have a separate appeals process.

(c) Appeal to the Board [ Appeals Process Committee ]. An Applicant [ applicant ] must file a written Appeal [ appeal ] with the Department not later than the seventh [ fourteenth ] day after the date of the Board [ board ] meeting at which the award decision appealed was made. The Applicant [ applicant ] must specify the alleged error and provide a detailed explanation of the alleged error, including any supporting documentation. The specific rule allegedly violated must be cited , as well as an explanation of the manner in which the alleged error adversely affects the Applicant’s [ applicant's ] ability to receive funds or other assistance . Upon receipt of the appeal, the executive director shall prepare a file for the Board [ Committee ] to consider at the next regularly scheduled meeting of the Board [ board ]. The Board [ Committee ] may not consider [ review ] any information [ not ] submitted by the Applicant [ applicant ] after the written Appeal. [ at least seven days before the Committee meeting. The Committee shall make a final recommendation for the entire board to consider based on the reviewed findings. ] The Board will review the Appeal de novo and may consider any information properly considered by the Board in making its prior decision on the Application.

(d) Public Comment. The Board will hear public comment on the Appeal under its usual procedures. While public comment will be heard, persons making public comment are not parties to the Appeal and no rights accrue to them under this section or Appeal process. If a representative of a neighborhood group completed a witness affirmation form including their telephone number and spoke in support of or opposition to an Application at the Board meeting at which the Board made the decision appealed from, Department staff will telephone the representative not later than the seventh day before the date of the Board meeting at which the Board will consider the Appeal and advise the representative of the date, time, and place of the Board meeting and that an Appeal will be considered by the Board. This notice requirement is satisfied if the Department makes three attempts to reach one group representative by telephone and is unsuccessful.

(e) [ (d) ] Possible Actions. In instances in which the Appeal [ appeal ] if sustained by the Board [ board ] would have resulted in an award to the Applicant [ applicant ], the Application [ application ] shall be approved by the Board [ board ] contingent on the availability of funds. If no funds are available in the current year's funding cycle, then the Applicant [ applicant ] shall be awarded funds from the next year's available funding or from the pool of deobligated funds. In the case of private activity mortgage revenue bond programs, the Applicant [ applicant ] shall be encouraged to reapply in the next year's funding cycle. If the Appeal [ appeal ] is denied [ rejected ], the Department shall notify the Applicant [ applicant ] of the [ its ] decision, including the basis for [ final ] denial.

(f) [ (e) ] Final Decision. Appeals not submitted in accordance with this section will not be considered by the Board, unless the Board, in the exercise of its discretion, determines there is good cause to consider the appeal [ are dismissed and shall not be granted an extension to refile if the time period for filing an appeal has expired ]. The decisions [ decision ] of the Board [ board ] are [ is ] final.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on April 18, 2003.

TRD-200302543

Edwina P. Carrington

Executive Director

Texas Department of Housing and Community Affairs

Earliest possible date of adoption: June 1, 2003

For further information, please call: (512) 475-3726

Chapter 195. MEMORANDA OF UNDERSTANDING

10 TAC §§195.1, 195.2, 195.9

(Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Texas Department of Economic Development or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The Texas Department of Economic Development (department) proposes the repeal of §§195.1, 195.2, and 195.9, concerning the Memoranda of Understanding with the Texas Department of Agriculture, the Texas Workforce Commission, and the General Services Commission, as authorized by Government Code §481.028.

The repeal is necessary to adopt new rules that reflect current Memorandums of Understanding with these agencies.

Robin Abbott, General Counsel, has determined that for each year of the first five year period the section is in effect there will be no fiscal implications to state or local governments as a result of the repeal of the rules. No cost to either government or the public will result from the repeal of the rules. There will be no impact on small businesses. No economic cost is anticipated to persons as a result of the repeal.

Ms. Abbott has also determined that for each year of the first five years the repeal is in effect the public benefit anticipated as a result of enforcing the rules will be the increased coordination and communication between the department and other agencies involved with economic development with regard to program planning and budgeting. Reduced costs may result from the increased cooperation and communication since duplication of programs and services can be avoided. No economic costs are anticipated to persons who are required to comply with the proposed repeal.

Written comments on the proposed repeal should be submitted, within thirty days of publication of the proposed repeal, to Debbie Lee, Assistant General Counsel, Texas Department of Economic Development, 1700 N. Congress, Suite 130, Austin, Texas 78701, for hand- deliveries, P.O. Box 12728, Austin, Texas 78711-2728, for US Mail, and (512) 936-0415 for Facsimiles.

The repeal is proposed under the authority of Texas Government Code, §481.0044(a) which gives the department the authority to adopt rules to carry out its responsibilities; Texas Government Code, §481.028(d) which directs that the Memoranda of Understanding be adopted as rules of the agencies; and Texas Government Code, Chapter 2001, Subchapter B which prescribes standards for rulemaking by state agencies.

Section 481.028 is affected by the proposed repeal.

§195.1.Memoranda of Understanding with the Texas Department of Agriculture.

§195.2.Memoranda of Understanding with the Texas Workforce Commission.

§195.9.Memoranda of Understanding with the General Services Commission.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on April 17, 2003.

TRD-200302514

Tracye McDaniel

Deputy Executive Director

Texas Department of Economic Development

Earliest possible date of adoption: June 1, 2003

For further information, please call: (512) 936-0268

10 TAC §§195.1 - 195.4, 195.8 - 195.11

The Texas Department of Economic Development (department) proposes new Chapter 195, §§195.1, 195.2, and 195.9 concerning Memoranda of Understanding (MOU) with the Department of Agriculture, the Texas Workforce Commission and General Services Commission and proposes amendments to §§195.3, 195.4, 195.8, 195.10, and 195.11, concerning Memoranda of Understanding with the Texas General Land Office, Texas Department of Housing and Community Affairs, Texas Historical Commission, Texas Alternative Fuels Council, and Texas Agricultural Finance Authority. The proposed amendments changes the language in the rules to reflect current MOU terms and agreements. Texas Government Code, §481.028, requires that the department enter into a Memoranda of Understanding with other state agencies involved in economic development to cooperate in planning and budgeting. Texas Government Code, §481.028, further directs that the MOU be adopted as rules of the agencies.

Robin Abbott, General Counsel for the department, has determined that for each year of the first five year period the rules are in effect there will be no fiscal implications for state government as a result of enforcing or administering the new proposed rules. There will be no impact on small businesses. No economic cost is anticipated to persons as a result of the proposed rules. She has also determined that there will be no significant economic impact on local economies or overall employment as a result of administering the proposed rules.

Ms. Abbott has also determined that for each year of the first five years the rules are in effect the public benefit anticipated as a result of enforcing the rules will be the increased coordination and communication between the department and other agencies involved with economic development with regard to program planning and budgeting. Reduced costs may result from the increased cooperation and communication since duplication of programs and services can be avoided. No economic costs are anticipated to persons who are required to comply with the proposed rules.

Written comments on the proposed rules should be submitted, within thirty days of publication of the proposed rules, to Debbie Lee, Assistant General Counsel, Texas Department of Economic Development, 1700 N. Congress, Suite 130, Austin, Texas 78701, for hand- deliveries, P.O. Box 12728, Austin, Texas 78711-2728, for US Mail, and (512) 936-0415 for Facsimiles.

The new and amended rules are proposed under the authority of Texas Government Code, §481.0044(a) which gives the department the authority to adopt rules to carry out its responsibilities; Texas Government Code, §481.028(d) which directs Memoranda of Understanding to be adopted as rules of the agencies; and Texas Government Code, Chapter 2001, Subchapter B which prescribes the standards for rulemaking by state agencies.

Section 481.028 is affected by the proposed rules.

§195.1.Memorandum of Understanding with the Texas Department of Agriculture.

(a) Recitals.

(1) Whereas, SB746 of the 77th Legislature requires TDA and TxED to enter into a Memorandum of Agreement to work cooperatively to further economic development program objectives; and

(2) Whereas, HB1 of the 77th Legislature (General Appropriations Act), Article VII, Texas Department of Economic Development, Rider 13, requires TDA and TxED to enter into a Memorandum of Understanding for the purpose of maintaining a statewide economic development program for rural areas during the 2002-2003 biennium;

(3) Now therefore, be it resolved that TxED and TDA enter into this MOU to clarify and provide for the duties and responsibilities of each agency concerning economic development programs for rural areas, and agree to cooperate as follows:

(b) Undertakings by Each Party.

(1) The Commissioner of Agriculture will be the lead spokesperson for rural economic development programs.

(2) TDA and TxED will jointly report program-related performance measures, as set forth in the General Appropriations Act.

(3) TDA and TxED will modify their web pages to support each other's efforts and indicate their cooperative working relationship.

(4) TDA and TxED will designate one person within each agency to serve as the point of contact for each project.

(5) TDA and TxED will cross-train staffs of both agencies regarding each other's programs where appropriate and will cooperate in promoting the programs of both agencies that pertain to rural economic development.

(6) TDA and TxED may cooperate in coordinating meetings with the public and private entities to disseminate information beneficial to rural areas.

(7) As appropriate, TDA and TxED will report progress to the Commissioner of Agriculture, the TxED Governing Board and the Legislative Rural Caucus and conduct meetings to assess progress of rural development initiatives and projects.

(8) TDA will employ economic development specialists in field offices throughout the state to identify potential opportunities in rural areas and assist businesses and communities to maximize their economic development.

(9) Under the direction of the Commissioner, TDA will serve as the lead agency on rural development projects. Where appropriate, TxED and TDA will coordinate efforts on projects.

(10) Upon availability of funds, TxED will continue to serve as the lead state agency in the Agritech Corridor Partnership for application of EDA grant funding. TDA will cooperate with TxED in this effort by serving as lead agency for implementation of the Agritech Corridor, in accordance with the provisions of HB 1.

(c) Term. This MOU is effective on September 1, 2001, and shall terminate August 31, 2003, unless extended by mutual agreement of the parties.

(d) Amendments and Changes. This MOU may be extended, amended or repealed at any time by written agreement of both parties.

§195.2.Memorandum of Understanding with the Texas Workforce Commission.

(a) Purpose. Pursuant to §481.028 of the Government Code, the Texas Department of Economic Development and the Texas Workforce Commission enter into this Memorandum of Understanding, under which they agree to cooperate in program planning regarding possible Skills Development Fund grants; in the dissemination of employment related data, statistics, and analyses; and in the use of field offices to distribute information of interest to businesses and communities in the state.

(b) Mutual Responsibilities: To better serve Texas businesses and residents, the parties agree to the following:

(1) Cooperate on regional planning initiatives in accordance with applicable governing statutes and share information regarding skills development grants and other workforce training grants and marketing efforts;

(2) Cooperate in distributing information on available workforce training grants through Local Workforce Development Boards, area Chambers of Commerce, local Economic Development Foundations, and other organizations promoting economic development;

(3) Cooperate in establishing hyperlinks on each party's Internet website to provide immediate consumer access to available information on workforce training grants;

(4) Cooperate in encouraging workforce and economic development, and employment, in Texas by sharing information of mutual interests;

(5) Include in Texas Department of Economic Development marketing materials and efforts, and encourage local Chambers of Commerce and economic development organizations to utilize Texas Workforce Commission and Local Workforce Development Board information designed to attract business and industry to Texas;

(6) Include in Texas Workforce Commission marketing materials and efforts, and encourage Local Workforce Development Boards to utilize Texas Department of Economic Development local Chambers of Commerce and economic development organizations information designed to attract business and industry to Texas;

(7) Cooperate in developing opportunities for the Texas Department of Economic Development to include Texas Workforce Commission and Local Workforce Development Board resources in targeted and negotiated economic development efforts that address specific industry sectors or specific business entities;

(8) Use the Texas Department of Economic Development and the Texas Workforce Commission offices and contacts to distribute information relating to workforce development activities administered by each party;

(9) Develop agreements as necessary to accomplish the activities set forth in this Memorandum of Understanding;

(10) Cooperate in the planning and execution of an annual conference on economic and workforce development.

(c) Term. This Memorandum of Understanding will become effective upon signature by both parties and shall remain in effect until December 31, 2006. This Agreement may be amended at any time by mutual written agreement. Either party may terminate this Agreement upon 30 days written notice to the other party.

§195.3.Memorandum of Understanding with the Texas General Land Office.

(a) Purpose. Pursuant to Texas Government Code §481.028, the Texas Department of Economic Development and the Texas General Land Office enter this Memorandum of Understanding, under which they agree to cooperate in program planning and budgeting relating to rural economic development.

(b) Mutual Responsibilities. To serve the citizens of Texas in an efficient and fiscally responsible way, the parties agree that they will: cooperate on regional planing within Texas; coordinate the rural economic development programs provided by each agency; share information of mutual interest; develop the agreements necessary to accomplish the activities set forth in this Memorandum of Understanding; and cooperate to encourage economic development within rural areas of Texas.

(c) Term. This Memorandum of Understanding will become effective on the date specified and shall remain in effect until terminated by either party. [ , which is effective upon execution by representatives of each agency, shall terminate on August 31, 2001 unless extended by the mutual agreement of the parties. ] Either party may terminate this Memorandum of Understanding upon 30 days written notice to the other party.

§195.4.Memorandum of Understanding with the Texas Department of Housing and Community Affairs.

(a) Purpose. Pursuant to §481.028 of the Government Code, [ Texas Government Code §481.028, ] the Texas Department of Economic Development and the Texas Department of Housing and Community Affairs enter into this Memorandum of Understanding, under which they agree to cooperate in program planning and budgeting relating to their community development programs.

(b) Mutual Responsibilities. To serve the citizens of Texas in an efficient and fiscally responsible way, the parties agree that they will: cooperate on regional planning within Texas, cooperate in developing and implementing community development programs; cooperate to encourage economic and community development in Texas; share information of mutual interest; and develop the agreements necessary to accomplish the activities set forth in this Memorandum of Understanding.

(c) Term. This Memorandum of Understanding will become effective on the date specified and shall remain in effect until terminated by either party. [ ,which is effective upon execution by representatives of each agency, shall terminate on August 31, 2001 unless extended by mutual agreement of the parties. ] Either party may terminate this Memorandum of Understanding upon 30 days written notice to the other party.

§195.8.Memorandum of Understanding with the Texas Historical Commission.

(a) Purpose. Pursuant to §481.028 of the Government Code, the Texas Department of Economic Development (the department) and the Texas Historical Commission (THC) enter into this Memorandum of Understanding (MOU), under which they agree to cooperate in program planning and budgeting relating to community preservation, restoration and revitalization to encourage travel to the state's historical attractions.

(b) Mutual Responsibilities. To serve the citizens of Texas in an efficient and fiscally responsible way, the parties agree that they will:

(1) cooperate on regional planning within Texas;

(2) cooperate regarding community preservation, restoration and revitalization efforts;

(3) share information of mutual interest;

(4) assist with the development of a cooperative heritage tourism program;

(5) develop the agreements necessary to accomplish the activities set forth in this Memorandum of Understanding; and

(6) cooperate to encourage economic development and employment in Texas.

(c) Transfer of Funds. From the amounts appropriated to the Department to advertise and promote Texas as a travel destination in selected national and international markets, the Department, pursuant to Texas Government Code, Chapter 481.172, will transfer $300,000.00 during the biennium beginning September 1, 2001 [ September 1, 1999 ] to THC to be used towards marketing and tourism development activities to encourage travel to the state's historical attractions. Both parties agree that in Fiscal Year 2002, [ 2000, ] the Department will transfer $150,000 to THC within 30 days following execution of this Memorandum of Understanding and in Fiscal Year 2003 [ 2001 ] will transfer $150,000 to THC on or before October 31, 2002 [ 2000 ].

(d) Coordination of Statewide Travel-Related Efforts: The Department uses the advertising slogan "Texas. It's Like A Whole Other Country." in all of its travel promotion and tourism development efforts. To effectively coordinate and ensure a consistent message is used in all statewide travel-related efforts, THC agrees to use the Department's advertising slogan, the Texas Patch logo, the Department's toll-free telephone number (1-800-8888-TEX) and the Department's web site address (www.TravelTex.com) in all projects THC undertakes that are funded in whole or in part by funds transferred to THC from the Department under this MOU.

(e) Acknowledgment. THC agrees that in all projects THC undertakes using funds transferred from the Department to THC under this MOU, THC will provide acknowledgment that the project(s) are funded in whole, or in part, by funds provided by the Department. THC also agrees to cite the funding source.

(f) Close-Out Report. Both parties agree that prior to the end of each fiscal year during the biennium beginning September 1, 2001 [ 1999 ], THC will submit to the Department a fiscal year close-out report that details how THC used the Funds towards tourism development and tourism marketing activities to encourage travel to the state's historical attractions.

(g) Term. This Memorandum of Understanding will become effective on the date specified and shall remain in effect until terminated by either party. [ ,which is effective upon execution by representatives of each agency, shall terminate on August 31, 2001, unless extended by the mutual agreement of the parties. ] Either party may terminate this Memorandum of Understanding upon 30 says written notice to the other party.

§195.9.Memorandum of Understanding with the General Services Commission.

(a) Purpose. This Memorandum of Understanding is entered into by and between the General Services Commission (GSC) and the Texas Department of Economic Development (TDED) for the purpose of facilitating the transfer of the responsibility and authority to maintain the Electronic Business Daily (hereinafter EBD) from TDED to GCS, in accordance with Sections 7.02 and 7.08 of Senate Bill 311 of the 77th Legislature.

(b) Definitions.

(1) Electronic Business Daily (EBD)--the procurement posting and distribution aspects of the website mandated by Texas Government Code, Section 2155.083

(2) General Services Commission (GSC)--the GSC or its successor agency, the Texas Building and Procurement Commission

(c) Responsibilities of the Parties.

(1) TDED and GSC will coordinate the effective transfer of the Electronic Business Daily (EBD) including the associated database and source codes used for its operation no later than October 1st 2001. Both parties acknowledge by this agreement that the transfer had been successfully effected prior to the October 1st 2001 date.

(2) Both parties to this agreement acknowledge that the date files and links used to maintain the EBD have been effectively provided in a 4 mm Digital Audio Tape (DAT) format as of 9/30/01.

(3) GSC and TDED agree to coordinate and cooperate in the development and deployment of appropriated links between the current Internet location of the EBD and the GSC selected location for the EBD. TDED will establish a redirect link and notice on its website informing visitors of the new location of the EBD on the GSC website. GSC will provide the name, telephone number, and other available contact information for technical assistance at GSC for inclusion on the TDED website.

(4) After the transfer date, TDED will make programming staff available to answer questions for GSC staff members.

(5) To facilitate rulemaking process, GSC will notify TDED when it proposes new rules for the EBD.

(d) Term. This Memorandum of Understanding shall be effective immediately upon execution and shall continue in effect until terminated by either of the parties or by operation of law.

§195.10.Memorandum of Understanding with the Texas Alternative Fuels Council.

(a) Purpose. Pursuant to §481.028 of the Government Code, [ Texas Government Code §481.028, ] the Texas Department of Economic Development and the Texas Alternative Fuels Council enter into this Memorandum of Understanding, under which they agree to cooperate in program planning and budgeting relating to the promotion of the use of alternative fuels within Texas.

(b) Mutual Responsibilities: To serve the citizens of Texas in an efficient and fiscally responsible way, the parties agree that they will: cooperate on regional planning within Texas; cooperate in encouraging the use of alternative fuels within Texas; share information of mutual interest; develop the agreements necessary to accomplish the activities set forth in this Memorandum of Understanding; and cooperate to encourage economic development in Texas.

(c) Term. This Memorandum of Understanding will become effective on the date specified and shall remain in effect until terminated by either party. [ ,which is effective upon execution by representatives of each agency, shall terminate on August 31, 2001 unless extended by mutual agreement of the parties. ] Either party may terminate this Memorandum of Understanding upon 30 days written notice to the other party.

§195.11.Memorandum of Understanding with the Texas Agricultural Finance Authority.

(a) Purpose. The purpose of this memorandum of understanding is to meet legislative requirements specified in §481.028(b)(12) of the Government Code relating to the marketing and promotion of the programs administered by the Texas Agricultural Finance Authority (TAFA).

(b) Mutual Responsibilities. To efficiently serve the citizens of Texas and promote economic growth in agriculture and agriculture related [ relating ] industries, the agencies involved in the memorandum agree to cooperate in the following areas:

(1) TAFA will administer its finance programs involving agriculture, horticulture, and other agriculture [ agricultural- ] related business to best utilize the expertise of the staff of TAFA.

(2) TAFA will not duplicate the current fee-based services of the Texas Department of Economic Development (TxED,) [ TDED, ] which include but are not limited to loan packaging, feasibility studies, and credit analyses. TAFA staff will perform credit analysis in accordance with its credit policy and procedures as it relates to projects seeking participation in any of the programs administered by TAFA.

(3) TxED [ TDED ] will cooperate and assist in marketing and promoting the finance programs administered by TAFA. TxED [ TDED ] will forward all requests for financial assistance involving any agriculture or agricultural-related project to TAFA.

(4) TxED [ TDED ] and the Texas Department of Agriculture (TDA) will cooperate in development, marketing and finance activities as identified in the memorandum of understanding between TxED [ TDED ] and TDA dated effective September 1, 2001, [ 1999, ] so as to best utilize each agency's expertise and resources.

(5) TAFA and TxED [ TDED ] will cooperate to foster economic development throughout Texas.

(c) Term. This Memorandum of Understanding will become effective on the date specified and shall remain in effect until terminated by either party. [ ,which is effective upon the execution by the representatives of each agency, shall terminate August 31, 2002 unless extended by mutual agreement of the parties. ] Either party may terminate this Memorandum of Understanding upon 30 days written notice to the other party.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on April 17, 2003.

TRD-200302515

Tracye McDaniel

Deputy Executive Director

Texas Department of Economic Development

Earliest possible date of adoption: June 1, 2003

For further information, please call: (512) 936-0268