TITLE 34.PUBLIC FINANCE

Part 3. TEACHER RETIREMENT SYSTEM OF TEXAS

Chapter 31. EMPLOYMENT AFTER RETIREMENT

Subchapter A. GENERAL PROVISIONS

34 TAC §31.2

The Board of Trustees (Board) of the Teacher Retirement System of Texas (TRS) adopts amended §31.2, concerning changes to employers' reporting of employed retirees. The amended section is adopted without changes to the text of the proposal as published in the November 4, 2005, issue of the Texas Register (30 TexReg 7195).

TRS currently requires employers to report the employment of retirees for purposes of administering laws governing employment after retirement. The amendments to §31.2 will allow TRS to implement new §824.6022, Government Code, which requires employers to file a monthly certified statement of employment of retirees and makes the failure of an administrator to do so an offense. The amendments broaden the scope of the required report to include information about the payment of the employer pension surcharge and health benefit surcharge. The amended section requires TRS-covered employers to report the number retirees working in TRS-covered positions, the total amount of salary paid to employed retirees who are not exempt from the pension surcharge, and the total amount of any pension or health benefit surcharge paid.

The amended rule also adds a reference to the new exception for employment-after-retirement purposes for faculty members of professional nursing programs to other such exceptions listed in the rule. This addition is needed to ensure employers provide TRS sufficient information to determine if the exception for professional nursing program faculty applies to a given individual.

TRS received no public comments regarding the proposed amendments.

Statutory Authority: Government Code, §824.601, which authorizes the Board to adopt rules necessary for administering laws in Government Code, Chapter 824, Subchapter G, concerning loss of benefits on resumption of service, including §824.601 and §824.6022; and Government Code, §825.102, which authorizes the Board to adopt rules for the administration of the funds of the retirement system.

Cross-reference to Statute: Government Code, §824.601, which provides for loss of annuity by any service or disability retiree who works for a TRS-covered employer unless such employment is exempted by law from forfeiture of annuity; and Government Code, §824.6022, which requires employers to file a monthly certified statement of employment of retirees and makes it an offense for an administrator who is responsible for filing such a statement to knowingly fail to do so.

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 February 23, 2006.

TRD-200600966

Ronnie G. Jung

Executive Director

Teacher Retirement System of Texas

Effective date: March 15, 2006

Proposal publication date: November 4, 2005

For further information, please call: (512) 542-6438


Subchapter B. EMPLOYMENT AFTER SERVICE RETIREMENT

34 TAC §31.18, §31.19

The Board of Trustees (Board) of the Teacher Retirement System of Texas (TRS) adopts two rules related to employment after retirement: amended §31.18, concerning changes to the bus driver exception and new §31.19, concerning the creation of an exception for professional nursing program faculty. Amended §31.18 and new §31.19 are adopted without changes to the text of the proposed rules as published in the November 4, 2005, issue of the Texas Register (30 TexReg 7196).

The Legislature recently added new language to the statute concerning the bus driver exception to restrictions on employment after retirement, §824.602 of the Government Code. The new language requires that bus driving must be the retiree's primary employment in order to qualify for the exception. Before the enactment of the statutory amendments, there was no minimum requirement set by law for the amount of bus driving required for this exception. By current Board rule, the bus driver exception was available to a normal age retiree who daily drove at least one bus route approved by the Texas Education Agency. The amended statute does not define "primary employment" but by implication requires that other employment must be of a lesser nature. The adopted amendments to §31.18 provide that employment as a bus driver is "primary" if the total amount of other employment is less than one-half time. Amended §31.18 also requires that the retiree must actually drive the bus. Language describing the type of bus routes as "TEA approved" is amended to reflect the current practice of TEA's issuing guidelines for bus routes rather than approving bus routes. Other changes reflect reformatting the rule into subsections. The change in the law applies to members who retire after September 1, 2005.

The Legislature also amended §824.602 of the Government Code to add a new exception for faculty members of a professional nursing program under the employment after retirement laws. The new language prohibits TRS from withholding a monthly benefit from a retiree employed as a faculty member in an undergraduate or graduate professional nursing program, provided the retiree has been separated from service with all TRS-covered employers for a period of 12 months. Under the amended statute, the exception became effective beginning September 1, 2005 and will terminate at the end of the spring semester 2015. Adopted new §31.19 clarifies who is a faculty member for purposes of this rule and that the 12-month separation period must be 12 consecutive months. The new section also establishes procedures for making the election and filing the appropriate form with TRS. The adopted rule is patterned after the rules regarding the acute shortage area and the principal or assistant principal exceptions.

TRS received no public comments regarding the proposed amendments to §31.18 or proposed new §31.19.

Statutory Authority for amended §31.18 and new §31.19: Government Code, §824.601, which authorizes the Board to adopt rules necessary for administering laws in Government Code, Chapter 824, Subchapter G, concerning loss of benefits on resumption of service, including §824.602; and Government Code, §825.102, which authorizes the Board to adopt rules for the administration of the funds of the retirement system. Cross-reference to Statute for amended §31.18 and new §31.19: Act of May 27, 2005, 79th Leg., R.S., S.B. 1691, §16, ch. 1359 (to be codified as amendments to Tex. Gov't Code Ann. §824.602), which, for purposes of employment after retirement, makes changes to the bus driver exception; Act of May 27, 2005, 79th Leg., R.S., S.B. 132, §8, ch. 674 (to be codified as amendments to Tex. Gov't Code Ann. §824.602), which, for purposes of employment after retirement, creates an exception for faculty of professional nursing programs; and Government Code, §824.602, which provides exceptions to the loss of annuity by any service or disability retiree who works for a TRS-covered employer.

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 February 23, 2006.

TRD-200600967

Ronnie G. Jung

Executive Director

Teacher Retirement System of Texas

Effective date: March 15, 2006

Proposal publication date: November 4, 2005

For further information, please call: (512) 542-6438


Part 12. STATE EMPLOYEE CHARITABLE CAMPAIGN

Chapter 325. GENERAL STATE POLICY COMMITTEE PROVISIONS

34 TAC §325.7

The State Policy Committee (SPC) of the Texas State Employee Charitable Campaign (SECC) adopts an amendment to §325.7, concerning travel expenses, without changes to the proposed text as published in the December 23, 2005, issue of the Texas Register (30 TexReg 8647).

The amendment corrects the punctuation at the end of subsection (b), before the numerical listing under that subsection, by changing the period to a colon.

No comments were received regarding adoption of the amendment.

This amendment 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 eligibility criteria for charitable organizations to participate in the state employee 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 February 24, 2006.

TRD-200600984

Kevin Van Oort

Certifying Officer, State Policy Committee

State Employee Charitable Campaign

Effective date: March 16, 2006

Proposal publication date: December 23, 2005

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


Chapter 326. CAMPAIGN MANAGEMENT

34 TAC §326.3

The State Policy Committee (SPC) of the Texas State Employee Charitable Campaign (SECC) adopts new §326.3, concerning additional requirements, without changes to the proposed text as published in the December 23, 2005, issue of the Texas Register (30 TexReg 8648).

This new rule provides additional requirements with which local campaigns must comply, including the statutory requirement that each Local Employee Committee (LEC) appoint a local campaign manager and the SPC requirement that the LEC assign a representative to attend annual training provided by the State Campaign Manager.

Three letters were received supporting the proposed requirement for §326.3 that a local campaign representative attend a yearly training session provided by the State Campaign Manager. Independent Charities of America, on behalf of itself, America's Best Charities, Children's Charitable Alliance of Texas, and Local Independent Charities of Texas, emphasized that the effect of the rule will be to provide an increase in communication, clear and effective training for local campaign management. Earth Share of Texas emphasized the importance of consistent local campaign practices throughout the state, indicating that the rules help toward that effort. Neighbor to Nation commented that the rule would allow for consistent understanding of the laws and regulations, and opportunities for local campaign managers and representatives to share ideas for successful campaigns. The SPC agrees, and it is because of those reasons that the rule is adopted.

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 rule are: Texas Government Code, §659.143, regarding duties of each Local Employee Committee (LEC).

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 February 24, 2006.

TRD-200600985

Kevin Van Oort

Certifying Officer, State Policy Committee

State Employee Charitable Campaign

Effective date: March 16, 2006

Proposal publication date: December 23, 2005

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


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

34 TAC §§329.3, 329.5, 329.7

The State Policy Committee (SPC) of the Texas State Employee Charitable Campaign (SECC) adopts amendments to §329.3, concerning 25% administrative cost cap, adopts new §329.7, concerning compliance certification, without changes to the proposed text, and adopts new §329.5, concerning re-certification requirements, with changes to the proposed text as published in the December 23, 2005, issue of the Texas Register (30 TexReg 8648). The SPC withdraws §329.1, concerning audit and review requirements. Formal notice of withdrawal will appear in the Withdrawn Rules section of the Texas Register .

The amendment to §329.3 codifies into rule the legislative exception, available only to certain charitable organizations, to the 25% cost cap that applies to all organizations that apply to participate in the SECC for the first time in 2004 or later. New §329.5 codifies and standardizes the process by which federations and affiliated charitable organizations that have been approved in a previous year can re-apply to participate in campaign by submitting a shortened application packet. This allows for more efficient application preparation and review to take place at the federation level and at the SPC level, resulting in less burden on labor and material resources. New §329.7 mirrors the requirements of the federal charitable campaign and is intended to help prevent SECC funds being used for engaging in transactions with entities that are subject to economic sanctions. Some Local Campaign Managers and Federations have raised concerns about potential liability in funding such groups. Similar language is used in the combined federal campaign.

The following entities furnished written comments on the proposals: Independent Charities of America, Earth Share of Texas, America's Charities, and Neighbor to Nation.

The four entities in their comments, have asked the SPC to reconsider the proposed rule amendments for §329.1, which would allow organizations with budgets of more than $100,000 to submit either a Form 990 or similar documentation that uses the formula for determining administrative costs as set out in SPC rule §329.3. The comments expressed concern that the administrative costs of organizations that submit documentation other than an IRS Form 990 would be difficult to determine in any meaningful way or in a manner that is consistent with the process for determining administrative costs of organizations that do submit IRS Form 990.

The SPC believes if organizations use the formula set out in §329.3, as the proposed rule requires, the administrative fees could be accurately determined and would be determined in a manner that is consistent with the formula used to arrive at administrative costs using the IRS Form 990 that other organizations are required to use. Nevertheless, the SPC will not adopt the proposed amendment to §329.1 at this time. The SPC has withdrawn the proposed amendment to §329.1 and will propose a different amendment to that rule in the Proposed Rule section of the Texas Register .

All four entities commented regarding proposed new §329.5. Entities asked the SPC to consider allowing re-certifying organizations to submit only the first six pages of the IRS Form 990 instead of the entire form (America's Charities); or to either submit only the first page or the first six pages of the IRS Form 990 (Earth Share of Texas). Independent Charities of Texas on behalf of itself and America's Best Charities, Children's Charitable Alliance of Texas, and Local Independent Charities of Texas, stated it does not support including the IRS Form 990 at all for re-certification, stating it is superfluous because the organizations are required to keep current application information on hand with the federation. Neighbor to Nation and Independent Charities of Texas on behalf of itself and America's Best Charities, Children's Charitable Alliance of Texas, and Local Independent Charities of Texas, suggested that, instead of requiring a complete Form 990, the SPC should conduct spot audits of a sampling of re-certifying organizations every year to determine whether those expenditures comply with the last 990 on file and that such expenses are within the statutory requirements. The comments expressed concern at the expenditure of resources needed to compile a document that may be lengthy for each re-certifying organization. Some of the comments indicated that many of the pages of the Form 990 would not provide meaningful information for purposes of re-certification. Some of the comments also stated that all re-certifying organizations are already required by other than SPC rules to maintain a copy of the IRS Form 990 with the federation to which the organization belongs, if any.

The SPC agrees in part and does not agree in part with the comments to §329.5. Form 990 is required to ensure organizations are spending funds in accordance with statutory requirements. However, only page one is required to calculate the percentage of revenue that is taken by administrative costs. Requiring the first six pages, up to and including the signature page, constitutes an effort to ensure the veracity of the information provided to the SPC; and it provides a measure of accountability in so far as the signature and attestation of the individual preparing the Form 990 will be included in the form submitted to the SPC.

Therefore, to clarify the proposed requirement for the Form 990 as published, §329.5(c)(3) will be amended prior to adoption to add the following language after "(3) Internal Revenue Service (IRS) Form 990,": "specifically, the first six pages of the Form 990, up to and including the signature page, which shall contain the signature and attestation of the individual preparing the form."

Earth Share of Texas submitted a request that the SPC reconsider proposed new §329.5(g) which allows the SPC to deny an organization's re-certification under §329.5(g) "for any of the reasons a full application can be denied." Earth Share's concern is that by retaining this authority the SPC would contradict the purpose of the re-certification program. The letter also states that the SPC should not have the authority to deny participation for re-certifying organizations without adopting more guidelines. The SPC does not agree. All re-certifying organizations are held to the same level of scrutiny that any renewing organization is held, barring additional concerns that may arise from time to time with various select organizations. The only difference is in the amount of paper work the organization is required to submit. The re-certification program was instituted by the SPC to permit the conservation of paper resources and lessen the administrative burden on organizations, federations, local campaign managers, local employee committees, the state campaign manager, and the State Policy Committee when considering returning organizations for participation. However, the SPC will not limit its ability to review any aspects of an organization that are relevant to that entity's eligibility to participate in the SECC campaign, and to deny participation, when appropriate, even if it is a returning organization.

Other changes to §329.5 as published are as follows: subsections (b)(2) and (c)(2) are changed to insert a hyphen between the words "3" and "year;" subsection (f) is changed to delete the hyphen between "third" and "year" and to insert a comma after "Every third year." Wherever the term "recertification" or "recertifications" appears in the proposed rule, a hyphen is being added after the first "e" and before the first "c."

The changes to §329.5 affect no new persons, entities, or subjects other than those given notice. Compliance with the adopted sections will be less burdensome than under the proposed sections.

These amendments and 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, §659.146, regarding eligibility criteria for charitable organizations to participate in the state employee charitable campaign.

§329.5.Re-certification Requirements.

(a) To be eligible to participate in the State Employee Charitable Campaign and apply via the re-certification process:

(1) the statewide federation/fund and affiliates must have not spent more than 25% of their annual revenue for administrative and fund raising expenses in the prior year's campaign; and

(2) statewide federation/fund and affiliates must have participated in the prior year's State Employee Charitable Campaign.

(b) To participate in the State Employee Charitable Campaign via the re-certification process the statewide federation/fund must submit the following:

(1) letter from the State Policy Committee stating eligibility to apply to the State Employee Charitable Campaign via the re-certification process;

(2) organization information page including 3-year history of administrative expense percentages;

(3) all documentation in compliance with §329.1 of this title (relating to Audit and Review Requirements); and

(4) current operating budget.

(c) To participate in the State Employee Charitable Campaign via the re-certification process the affiliate charitable organization must submit the following:

(1) letter from the State Policy Committee stating eligibility to apply to the State Employee Charitable Campaign via the re-certification process;

(2) affiliate information page including 3-year history of administrative expense percentages; and

(3) Internal Revenue Service (IRS) Form 990, specifically, the first six pages of the Form 990, up to and including the signature page, which shall contain the signature and attestation of the individual preparing the form. The form must be less than 18 months old.

(d) To participate in the State Employee Charitable Campaign via the re-certification process the affiliate charitable organization must submit a complete application to the statewide federation/fund.

(e) A complete application with all documentation shall be maintained by the statewide federation/fund for 3 years from the date of application. The SPC may conduct a random audit of any and all documentation prior to approval of the federation/fund or affiliate for any year's State Employee Charitable campaign.

(f) Every third year, the statewide federation/fund must submit a complete application for the federation/fund and affiliates.

(g) Each re-certification application is subject to review by the current State Policy Committee, is subject to the current rules, and can be denied for any of the reasons that a full application can be denied.

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 February 24, 2006.

TRD-200600986

Kevin Van Oort

Certifying Officer, State Policy Committee

State Employee Charitable Campaign

Effective date: March 16, 2006

Proposal publication date: December 23, 2005

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


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

34 TAC §§330.3, 330.7, 330.9

The State Policy Committee (SPC) of the Texas State Employee Charitable Campaign (SECC) adopts §330.3, concerning 25% administrative cost cap, adopts new §330.9, concerning compliance certification without changes to the proposed text, and adopts new §330.7, concerning recertification requirements, with changes to the proposed text as published in the December 23, 2005, issue of the Texas Register (30 TexReg 8650). The SPC withdraws §330.1, concerning audit and review requirements. Formal notice of the withdrawal will appear in the Withdrawn Rules section of the Texas Register .

The amendment to §330.3 codifies into rule the legislative exception, available only to certain charitable organizations, to the 25% cost cap that applies to all organizations that apply to participate in the SECC for the first time in 2004 or later. New §330.7 would codify and standardize the process by which federations and affiliated charitable organizations that have been approved in a previous year can re-apply to participate in campaign by submitting a shortened application packet. This allows for a more efficient application preparation and review to take place at the federation level and at the SPC level, resulting in less burden on labor and material resources. New §330.9 mirrors the requirements of the combined federal charitable campaign and is intended to help prevent SECC funds being used for engaging in transactions with entities that are subject to economic sanctions. Some Local Campaign Managers and Federations have raised concerns about potential liability in funding such groups. Similar language is used in the combined federal campaign.

No comments were received in response to any of the proposed rules. Although no comments were received in response to proposed rule amendments to §330.1, the rule provides a similar requirement for organizations participating in the local campaigns that §329.1 provides for the statewide campaign. The SPC seeks to adopt rules that allow for consistent campaign practices at the local level and the statewide level to the extent that is feasible.

Entities commenting to proposed amendments to rule §329.1, which are similar to the amendments of proposed §330.1, have asked the SPC to reconsider the proposed rule amendments that would allow organizations with budgets of more than $100,000 to submit either a Form 990 or similar documentation that uses the formula for determining administrative costs as set out in other SPC rules. The comments expressed concern that the administrative costs of organizations that submit documentation other than an IRS Form 990 would be difficult to determine in any meaningful way or in a manner that is consistent with the process for determining administrative costs of organizations that do submit IRS Forms 990.

The SPC believes if organizations use the formula set out in §330.3 as the proposed rule requires, the administrative fees could be accurately determined and would be determined in a manner that is consistent with the formula used to arrive at administrative costs using the IRS Form 990 that other organizations are required to use. Nevertheless, the SPC will not adopt the proposed amendment to §330.1 at this time. The SPC has withdrawn the proposed amendment to §330.1 and will propose a different amendment to that rule in the Proposed Rule section of the Texas Register .

Likewise, although no comments were received regarding proposed rules §330.7, the SPC will adopt that new rule to conform the review of local campaign matters to the method and practices used by the SPC for the statewide campaign under new §329.5.

Regarding §330.7, relating to the requirement that all re-certifying organizations submit an IRS Form 990 with the re-certification documents, Form 990 is required to ensure organizations are spending funds in accordance with statutory requirements. However, only page one is required to calculate the percentage of revenue that is taken by administrative costs. Requiring the first six pages, up to and including the signature page, constitutes an effort to ensure the veracity of the information provided to the SPC; and it provides a measure of accountability in so far as the signature and attestation of the individual preparing the Form 990 will be included in the form submitted to the SPC.

Therefore, to clarify the proposed requirement for the Form 990 as published, §330.7(c)(3) will be amended prior to adoption to add the following language after "(3) Internal Revenue Service (IRS) Form 990,": "specifically, the first six pages of the Form 990, up to and including the signature page, which shall contain the signature and attestation of the individual preparing the form."

Regarding proposed §330.7(g), all re-certifying organizations are held to the same level of scrutiny that any renewing organization is held, barring additional concerns that may arise from time to time with various select organizations. The only difference is in the amount of paper work the organization is required to submit. The re-certification program was instituted by the SPC to permit the conservation of paper resources and lessen the administrative burden on organizations, federations, local campaign managers, local employee committees, the state campaign manager, and the State Policy Committee when considering returning organizations for participation. However, the SPC will not limit its ability to review any aspects of an organization that are relevant to that entity's eligibility to participate in the SECC campaign, and to deny participation, when appropriate, even if it is a returning organization.

Other changes to §330.7 as published are as follows: subsection (a) is changed to correct the spelling of the word "State", subsections (b)(2) and (c)(2) are changed to insert a hyphen between the words "3" and "year;" subsection (c) is amended to capitalize the first letter in "charitable;" subsection (f) is changed to insert a comma after "Every third year." Wherever the term "recertification" or "recertifications" appears in the proposed rule, a hyphen is being added in the adopted rule after the first "e" and before the first "c."

The changes described affect no new persons, entities, or subjects other than those given notice. Compliance with the adopted sections will be less burdensome than under the proposed sections.

These amendments and 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, §659.146, regarding eligibility criteria for charitable organizations to participate in the state employee charitable campaign.

§330.7.Re-certification Requirements.

(a) To be eligible to participate in the State Employee Charitable Campaign and apply via the recertification process:

(1) the local federation/fund and affiliates must have participated in the previous year's campaign; and

(2) the local federation/fund and affiliates must have not spent more than 25% of its annual revenue for administrative and fund raising expenses in the prior year's campaign;

(b) To participate in the State Employee Charitable Campaign via the re-certification process the local federation/fund must submit the following:

(1) letter from the State Policy Committee stating eligibility to apply to the state employee charitable campaign via the re-certification process;

(2) organization information page including 3-year history of administrative expense percentages;

(3) all documentation in compliance with §330.1 of this title (relating to Audit and Review Requirements); and

(4) current operating budget.

(c) To participate in the State Employee Charitable Campaign via the re-certification process, the affiliate charitable organization must submit the following:

(1) letter from the State Policy Committee stating eligibility to apply to the state employee charitable campaign via the re-certification process;

(2) affiliate information page including 3-year history of administrative expense percentages; and

(3) Internal Revenue Service (IRS) Form 990, specifically, the first six pages of the Form 990, up to and including the signature pages, which shall contain the signature and attestation of the individual preparing the form. The form must be less than 18 months old.

(d) To participate in the State Employee Charitable Campaign via the re-certification process the affiliate charitable organization must submit a full application to the local federation/fund.

(e) A complete application with all documentation shall be maintained by the local federation/fund for 3 years after the date of application. The LEC or the SPC may conduct a random audit of any and all documentation prior to approval of the federation/fund or affiliate for any year's state employee charitable campaign.

(f) Every third-year, the local federation/fund will be required to submit a complete application for the federation/fund and affiliates.

(g) A local unaffiliated charitable organization is not eligible to apply to the State Employee Charitable Campaign via the re-certification process at any time. A full application with all required documentation must be submitted each year.

(h) Each re-certification application is subject to review by the current State Policy Committee or Local Employee Committee, is subject to the current rules, and can be denied for any of the reasons that a full application can be denied.

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 February 24, 2006.

TRD-200600987

Kevin Van Oort

Certifying Officer, State Policy Committee

State Employee Charitable Campaign

Effective date: March 16, 2006

Proposal publication date: December 23, 2005

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


Chapter 333. CAMPAIGN MATERIALS

34 TAC §333.7

The State Policy Committee (SPC) of the Texas State Employee Charitable Campaign (SECC) adopts amendments to §333.7, concerning campaign materials guidelines, without changes to the proposed text as published in the December 23, 2005, issue of the Texas Register (30 TexReg 8652).

These amendments modify the punctuation contained in subsection (a) of the current rule so as to identify the SPC and the State Advisory Committee (SAC) consistently throughout the rules.

No comments were received regarding adoption of the amendment.

The amendment 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 adoption is Government Code, §659.140, regarding the duties of the SPC, including the duty to approve campaign materials.

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 February 24, 2006.

TRD-200600988

Kevin Van Oort

Certifying Officer, State Policy Committee

State Employee Charitable Campaign

Effective date: March 16, 2006

Proposal publication date: December 23, 2005

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


Chapter 334. GRIEVANCE PROCEDURES

34 TAC §334.1, 334.3

The State Policy Committee (SPC) of the Texas State Employee Charitable Campaign (SECC) adopts amendments to §334.1, concerning procedures for grievances involving local campaign issues and §334.3, concerning procedures for grievances involving statewide campaign issues, without changes to the proposed text as published in the December 23, 2005, issue of the Texas Register (30 TexReg 8653).

These amendments will allow for the rules to be read more easily by avoiding the use of redundant words.

No comments were received regarding adoption of the amendment.

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. The adopted rules also are adopted under the authority of Texas Government Code, §659.140(e)(6) which requires the SPC to perform other duties prescribed by comptroller rules. Texas Administrative Code, Title 34, Part 1, Chapter 5, §5.48(n)(2)(I) authorizes the SPC to establish policies and procedures about the hearing of any grievance concerning the operation and administration of the campaign.

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

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 February 24, 2006.

TRD-200600989

Kevin Van Oort

Certifying Officer, State Policy Committee

State Employee Charitable Campaign

Effective date: March 16, 2006

Proposal publication date: December 23, 2005

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