PART 1. OFFICE OF THE GOVERNOR

CHAPTER 3. CRIMINAL JUSTICE DIVISION

The Office of the Governor, Criminal Justice Division (CJD), proposes the amendment of Title 1, Part 1, Chapter 3, Subchapter A, §§3.1, 3.3, 3.5, 3.7, 3.9, 3.11, 3.21, and 3.25; Subchapter B, §§3.51, 3.73, 3.75, 3.77, 3.79, 3.81, 3.83, and 3.87; Subchapter D, §§3.2001, 3.2009, 3.2013, 3.2021, 3.2023, and 3.2025; Subchapter E, §§3.2501, 3.2505, 3.2507, 3.2509, 3.2513, 3.2517, 3.2519, 3.2521, 3.2523, 3.2525, 3.2527, and 3.2529; Subchapter F, §3.2601 and §3.2603; Subchapter G, §3.8110; and Subchapter J, §3.9400 and §3.9405.

The Office of the Governor, Criminal Justice Division (CJD), proposes the repeal of Title 1, Part 1, Chapter 3, Subchapter A, §3.17 and §3.19; Subchapter B, §§3.53, 3.55 and 3.71; and Subchapter G, Division 3, "Governor's S.T.O.P. Violence Against Women Planning Council" for §§3.8300, 3.8305, 3.8310, 3.8315, and 3.8320.

The proposed amendment to §3.1 removes the redundant language to clarify the intended purpose of this section.

The proposed amendment to §3.3 organizes the definitions and updates the outdated definitions relevant to CJD activities.

The proposed amendment to §3.5 removes the outdated and redundant language, as information is already listed in the Texas Register and CJD publications.

The proposed amendment to §3.7 and §3.9 removes the outdated and excessive wording no longer relevant to these sections intended audiences.

The proposed amendment to §3.11 updates the section with the Supplemental Award Acceptance information, and removes excessive language to clarify this section.

The proposed amendment to §3.21 updates the section since grant application and administration require dedicated internet capability.

The proposed amendment to §3.25 removes the excessive wording to clarify the meaning of this section.

The repeal of §3.17 is being proposed because the information is already provided per fund source on the Request for Application (RFA) and stated in the CJD Guide to Grants.

The repeal of §3.19 is being proposed because it is already referenced in §3.1 of this chapter, the RFA, and the CJD Guide to Grants.

The proposed amendment to §3.51 removes the redundant language, as information is already stated as a condition of Council of Government (COG) contracts with CJD.

The repeal of §3.53 is being proposed because the Governor's Juvenile Justice Advisory Council coordinates regularly with the Governor's Office, and as such, the priorities are frequently amended. The priorities are listed in the Office of Juvenile Justice and Delinquency Prevention (OJJDP) Title II, Formula Grant Program's "Three-Year Plan", and in CJD's RFA each grant cycle.

The repeal of §3.55 is being proposed because the prohibitions do not apply to and varies across all fund sources. Specific prohibitions are listed per fund source on the RFA and are stated in CJD's Guide to Grants.

The repeal of §3.71 is being proposed because the information is redundant and outdated.

The proposed amendment to §3.73 updates the language to provide a succinct explanation of match policy. The information being removed from this section attempts to address every possible question as to match policies. Specific match policies are listed per fund source on the RFA and stated in the CJD Guide to Grants.

The proposed amendment to §3.75 removes excessive wording which obscures this section's intended purpose. The information being removed is already stated in a specific RFA for funding opportunities.

The proposed amendment to §3.77 removes excessive wording which obscures this section's intended purpose. Contracts addressed in this section fall under Texas contract laws.

The proposed amendment to §3.79 removes excessive language and clarifies records maintenance for training courses.

The proposed amendment to §3.81 removes excessive wording, and clarifies the requirement to provide CJD with an itemized list of equipment purchases upon application submission and grant adjustment.

The proposed amendment to §3.83 removes redundant language, as information is provided in §3.3 of this chapter.

The proposed amendment to §3.87 removes outdated information as to the guidelines for program income, and simplifies the requirements in this section.

The proposed amendment to §3.2001 updates outdated information to clarify this section.

The proposed amendment to §3.2009 removes outdated information, as grantees are no longer required to submit a Cooperative Working Agreement (CWA) to CJD.

The proposed amendment to §3.2013 removes excessive and redundant language to align with CJD policies regarding equipment and contractual and professional services.

The proposed amendment to §3.2021 updates outdated information, as new CJD guidelines relating to resolutions apply to only certain entities.

The proposed amendment to §3.2023 and §3.2025 corrects minor language in these sections.

The proposed amendment to §3.2501 removes excessive wording and outdated information, as this information is already provided in the CJD Guide to Grants and CJD policies.

The proposed amendment to §3.2505 removes excessive language and updates outdated information related to the audit report requirement.

The proposed amendment to §3.2507 updates outdated information regarding financial status reports, and clarifies when a grantee's funds lapse or liquidate.

The proposed amendment to §3.2509 clarifies the language related to equipment inventory reports.

The proposed amendment to §3.2513 removes excessive wording which obscures this section's intended purpose, as this information is already provided in the CJD Guide to Grants and CJD publications.

The proposed amendment to §3.2517 removes excessive wording, and clarifies when CJD will withhold grant payments.

The proposed amendment to §3.2519 removes outdated wording which obscures this section's intended purpose.

The proposed amendment to §3.2521 removes outdated wording to align with CJD's policies and procedures.

The proposed amendment to §3.2523 removes excessive language related to violations of laws.

The proposed amendment to §3.2525 removes excessive wording to clarify this section.

The proposed amendment to §3.2527 removes excessive and outdated language, as this information is already provided in the CJD Guide to Grants and CJD publications.

The proposed amendment to §3.2529 removes redundant language to clarify this section's intended purpose.

The proposed amendment to §3.2601 and §3.2603 removes outdated and excessive wording to align with CJD's monitoring policies.

The proposed amendment to §3.8110 updates the board member's term of office from two to four years.

The repeal of §§3.8300, 3.8305, 3.8310, 3.8315, and 3.8320 are being proposed because the council no longer exists. The council has fulfilled its stated mission per Governor Perry's Executive Order, RP7; therefore, the rules in this section are being repealed.

The proposed amendment to §3.9400 removes excessive wording related to definitions in this subchapter.

The proposed amendment to §3.9405 updates language to clarify this section.

Christopher Burnett, Executive Director of the Governor's Criminal Justice Division, has determined that for the first five-year period the amendments and repeals are in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the sections.

Mr. Burnett has also determined that for the first five-year period that the amendments and repeals are in effect the public benefit anticipated as a result of enforcing the sections will be more efficient processes and procedures and the current rules will be more easily understood. There will be no anticipated economic cost to persons or small businesses for complying with the proposed rules.

Comments on the proposed amendments may be submitted to Heather Morgan, Office of the Governor, Criminal Justice Division, P.O. Box 12428, Austin, Texas 78711, (512) 475-2594, hmorgan@governor.state.tx.us. Comments must be received no later than 14 days from the date of publication of the proposal in the Texas Register.

SUBCHAPTER A. GENERAL GRANT PROGRAM PROVISIONS

1 TAC §§3.1, 3.3, 3.5, 3.7, 3.9, 3.11, 3.21, 3.25

The amendment of these rules is proposed under §772.006(a)(10), Texas Government Code, which authorizes CJD to adopt rules and procedures as necessary.

The amended rules implement §772.006(a), Texas Government Code, which requires CJD to administer state and federal grant programs, and to assist the Governor in developing policies, programs, and proposed legislation for improving the coordination, administration, and effectiveness of the criminal justice system.

No other statutes, articles, or codes are affected by the amendment of these rules.

§3.1.Applicability.

Subchapters A through F of this chapter apply to all applications for funding and grants submitted to the Criminal Justice Division (CJD), Office of the Governor. A grantee must comply with the provisions of Subchapters A through F in effect on the date the grant is awarded by CJD, unless a subsequent effective date is specified by CJD in an original grant award or a grant adjustment. Grantees must comply with all applicable state and federal statutes, rules, regulations, and guidelines. In instances where both federal and state requirements apply to a grantee, the more restrictive requirement applies. [ Subchapter A covers the general provisions for grant funding. Subchapter B addresses general eligibility and budget rules for grant funding. Subchapter D provides rules detailing the conditions CJD may place on grants. Subchapter E sets out the rules related to administering grants. Subchapter F specifies rules regarding program monitoring and audits. Subchapter G details the rules regarding CJD advisory boards. Subchapter H addresses Crime Stoppers program certification. Subchapter I adopts the Memorandum of Understanding between CJD and the Texas Department of Public Safety.]

§3.3.Definitions.

[The following words and terms, when used in this chapter, shall have the following meanings, unless otherwise indicated:]

(a) applicant: an agency or organization that has submitted a grant application or grant renewal documentation;

(b) approved budget categories: budget categories (including personnel, contractual and professional services, travel, equipment, construction, supplies and other direct operating expenses, and indirect costs) that contain a line item with a dollar amount greater than zero that is approved by CJD through a grant award or a budget adjustment;

(c) CJAC: Criminal Justice Advisory Committee, a component of a COG. A CJAC must have a multi-disciplinary representation of members from the region. This representation must contain members from the following groups: concerned citizens or parents, drug abuse prevention, education, juvenile justice, law enforcement, mental health, nonprofit organizations, prosecution/courts, and victim services. No single group may constitute more than one third of the CJAC;

(d) CJD: The Criminal Justice Division of the Office of the Governor or its designee;

(e) COG: a regional planning commission, council of governments, or similar regional planning agency created under Chapter 391, Texas Local Government Code;

(f) condition of funding: a prerequisite placed on a grant because of a need for information, clarification, or submission of an outstanding requirement of the grant that may result in a hold being placed on the CJD-funded portion of a grant project;

(g) equipment:

(1) an article of non-expendable, tangible personal property having a useful life of more than one year and an acquisition cost which equals the lesser of the capitalization level established by the grantee for financial statement purposes or $1,000; or

(2) any of the following items with costs between $500 and $1,000: stereo systems, still and video cameras, facsimile machines, DVD players, VCRs and VCR/TV combinations, cellular and portable telephones, and computer systems.

(h) executive director: the executive director of CJD;

(i) grant funds: CJD-funded and matching funds portions of a grant project;

(j) grantee: an agency or organization that receives a grant award;

(k) liquidation date: the date specified in an original grant award of subsequent grant adjustment upon which a grantee must expend all outstanding liabilities;

(l) matching funds: the grantee's share of the project costs. Matching funds may either be cash or in-kind. Cash match includes actual cash spent by the grantee and must have a cost relationship to the award that is being matched. In-kind match includes the value of donated services. An applicant's use of matching funds must comply with the same statutes, rules, regulations, and guidelines applicable to the use of the CJD-funded portion of a grant project.

(m) OMB: The Office of Management and Budget;

(n) program income: gross income earned by the grantee during the funding period as a direct result of the award. "Direct result" is defined as a specific act or set of activities that are directly attributable to grant funds and that are directly related to the objectives of the project. Program income includes, but is not limited to, forfeitures, fees, cash contributions, donations, restitution, interest income, and royalties.

(o) RFA: Request for Applications, published in the Texas Register by CJD: and

(p) UGMS: the Uniform Grant Management Standards, promulgated by the Office of the Governor.

[(1) CJAC: Criminal Justice Advisory Committee, a component of a COG. A CJAC must have a multi-disciplinary representation of members from the region. This representation must contain members from the following groups: concerned citizens or parents, drug abuse prevention, education, juvenile justice, law enforcement, mental health, nonprofit organizations, prosecution/courts, and victim services. No single group may constitute more than one third of the CJAC;]

[(2) CJD: The Criminal Justice Division of the Office of the Governor or its designee;]

[(3) COG: a regional planning commission, council of governments, or similar regional planning agency created under Chapter 391, Texas Local Government Code;]

[(4) executive director: the executive director of CJD;]

[(5) grantee: an agency or organization that receives a grant award;]

[(6) grant funds: CJD-funded and matching funds portions of a grant project;]

[(7) OJP Financial Guide: the financial guide issued by the federal Office of Justice Programs, United States Department of Justice, applicable to the use of federal Department of Justice money in state grant projects;]

[(8) special condition: a condition placed on a grant because of a need for information, clarification, or submission of an outstanding requirement of the grant that may result in a hold being placed on the CJD-funded portion of a grant project;]

[(9) UGMS: the Uniform Grant Management Standards promulgated by the Governor's Office of Budget and Planning at 1 Texas Administrative Code (TAC) §§5.141 - 5.167;]

[(10) approved budget categories: budget categories (including personnel, contractual and professional services, travel, equipment, construction, supplies and other direct operating expenses, and indirect costs) that contain a line item with a dollar amount greater than zero that is approved by CJD through a grant award or a budget adjustment;]

[(11) applicant: an agency or organization that has submitted a grant application or grant renewal documentation;]

[(12) program income: gross income earned by the grantee during the funding period as a direct result of the award. "Direct result" is defined as a specific act or set of activities that are directly attributable to grant funds and that are directly related to the objectives of the project. Program income includes, but is not limited to, forfeitures, fees, cash contributions, donations, restitution, interest income, and royalties. Drug court fees collected pursuant to §469.004, Texas Health and Safety Code, are not considered program income;]

[(13) equipment:]

[(A) an article of non-expendable, tangible personal property having a useful life of more than one year and an acquisition cost which equals the lesser of the capitalization level established by the grantee for financial statement purposes or $1,000; or]

[(B) any of the following items with costs between $500 and $1,000: stereo systems, still and video cameras, facsimile machines, DVD players, VCRs and VCR/TV combinations, cellular and portable telephones, and computer systems.]

[(14) matching funds: the grantee's share of the project costs. Matching funds may either be cash or in-kind. Cash match includes actual cash spent by the grantee and must have a cost relationship to the award that is being matched. In-kind match includes the value of donated services. In-kind match is allowed only in the following funding sources: Title V Delinquency Prevention Fund, Victims of Crime Act Fund, and S.T.O.P. Violence Against Women Act Fund.]

§3.5.[Grant] Submission Process.

(a) When applying for a grant pursuant to a an RFA published in the Texas Register by CJD, applicants must submit and certify their applications according to the requirements provided in the RFA.

[(a) When applying for a grant pursuant to a Request for Applications (RFA) published in the Texas Register by CJD, applicants must submit their applications according to the requirements provided in the RFA. The RFA will provide the following:]

[(1) the applicable funding source or sources;]

[(2) the types of grants available;]

[(3) information regarding deadlines for grant application submission;]

[(4) the maximum and minimum amounts of funding available for a grant, if applicable;]

[(5) the start dates for grants, and the length of grant periods;]

[(6) how applicants may access application kits;]

[(7) where applicants must submit applications;]

[(8) eligibility requirements;]

[(9) the selection process;]

[(10) any prohibitions on the use of grant funds; and]

[(11) contact information.]

(b) - (c) (No change.)

§3.7.Selection Process.

(a) All applications must be submitted to CJD and certified by the applicant's authorized official. [Applications submitted to CJD are reviewed for eligibility, reasonableness, availability of funding, and cost-effectiveness.] For applications submitted and certified pursuant to an RFA, the executive director may [will ] select a review group, COG, or other designee to prioritize the applications and submit a priority listing to the executive director, who will render the final funding decision. [A review group may include staff members, experts in a relevant field, and members of an advisory board or council.]

(b) For applications certified by the applicant's authorized official [submitted to CJD pursuant to §3.5(b) of this chapter], the executive director will decide whether to fund the application based upon the following factors:

(1) - (3) (No change.)

(c) For applications prioritized by a COG, the CJAC must prioritize the applications and prepare the priority listing. The COG's governing body must approve the priority listing. [The COG then must submit the priority listing to CJD within the time periods established by CJD.] CJD will make [render] final [funding] decisions on these applications based upon the availability of funding, COG priorities, and eligibility[ , and reasonableness]. Preference will be given to applicants who demonstrate an [cost] effective [programs focused on a comprehensive and effective] approach to services that compliment the Governor's strategies.

(d) During the review of an application, CJD [or its designee ] may request that the applicant submit any additional information necessary to complete the grant review. [CJD or its designee may request the applicant to provide any outstanding forms and documents to clarify or justify any part of the application or to disclose other funding sources related to the project.] Such requests for information[, including the issuance of a preliminary review report,] do not serve as notice that CJD intends to fund an application. [If CJD is not able to adequately resolve problems within an applicant's budget through the review process,] CJD may make the necessary corrections to an application [ the budget] to bring it into compliance with [applicable ] state or federal requirements. Any corrections to an applicant's budget will be reflected in the award documentation.

(e) CJD will inform applicants of [funding] decisions on their grant applications through either a Statement of Grant Award or a notification of denial. For applications prioritized by a COG that do not receive funding recommendations, the COG notification of the decision not to recommend funding serves as the applicant's notification of denial.

§3.9.[Grant] Funding Decisions.

(a) All [grant] funding decisions made by the executive director are final and are not subject to appeal [ rest completely within the discretionary authority of CJD]. The receipt of an application [for grant funding] by CJD does not obligate CJD to fund the grant or to fund it at the amount requested.

(b) Neither the approval of a project nor any grant award shall [commit or] obligate CJD in any way to make any additional, supplemental, continuation, or other award [with respect to any approved project or portion thereof].

[(c) CJD makes no commitment that a grant, once funded, will receive priority consideration for subsequent funding.]

[(d) All funding decisions made by the executive director are final and are not subject to appeal.]

§3.11.Grant and Supplemental Award Acceptance.

The award documentation constitutes obligation of [ the operative documents obligating and reserving] funds for use by the grantee in execution of the program or project covered by the award. Such obligation may be terminated without [ further] cause if the grantee's authorized official fails to [ properly] accept the grant award within 45 calendar days of the date when [upon which ] CJD issues the Statement of Grant Award. CJD may extend this deadline on [upon] written request from the applicant. Funds [No funds] will not be disbursed [to the grantee] until acceptance of grant by the grantee [ has properly accepted the grant].

§3.21.Use of the Internet.

[(a)] CJD requires an applicant or grantee to submit grant applications, progress reports, financial reports, and [CJD may transmit notices, forms, or] other information to CJD [an applicant or grantee] via the Internet or other electronic means.

[(b) CJD may require an applicant or grantee to submit grant applications, progress reports, financial reports, and other information to CJD via the Internet or other electronic means. Completion and submission of information via electronic means meets the relevant requirements contained within this chapter for submitting information in writing.]

§3.25.Suspension of Rules.

Except where prohibited by state or federal statute or rule[ , regulation, or guideline,] the executive director may suspend any requirement in this chapter on [upon] a showing of good cause.

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 March 30, 2009.

TRD-200901225

Kevin Green

Assistant General Counsel

Office of the Governor

Earliest possible date of adoption: May 10, 2009

For further information, please call: (512) 463-1919

1 TAC §3.17, §3.19

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

The repeal of these rules is proposed under §772.006(a)(10), Texas Government Code, which authorizes CJD to adopt rules and procedures as necessary.

The repealed rules implement §772.006(a), Texas Government Code, which requires CJD to administer state and federal grant programs, and to assist the Governor in developing policies, programs, and proposed legislation for improving the coordination, administration, and effectiveness of the criminal justice system.

No other statutes, articles, or codes are affected by the repeal of these rules.

§3.17.Grant Funding.

§3.19.Adoptions by Reference.

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 March 30, 2009.

TRD-200901226

Kevin Green

Assistant General Counsel

Office of the Governor

Earliest possible date of adoption: May 10, 2009

For further information, please call: (512) 463-1919

DIVISION 1. ELIGIBILITY REQUIREMENTS

1 TAC §3.51

The amendment of this rule is proposed under §772.006(a)(10), Texas Government Code, which authorizes CJD to adopt rules and procedures as necessary.

The amended rule implements §772.006(a), Texas Government Code, which requires CJD to administer state and federal grant programs, and to assist the Governor in developing policies, programs, and proposed legislation for improving the coordination, administration, and effectiveness of the criminal justice system.

No other statutes, articles, or codes are affected by the amendment of this rule.

§3.51.Community Plans.

[(a)] Each community, consisting of a single county or a group of counties, must file with a COG a community plan that addresses [the community's] criminal justice priorities. COG's will develop standards for community planning. [A community plan should assess local trends and data; identify problems, resources, and priorities; develop effective strategies; and set goals and objectives.]

[(b) A community planning committee must be formed to develop the plan. A committee must include a wide range of members from entities such as public agencies, nonprofit corporations, faith-based organizations, and concerned citizens.]

[(c) Applicants for grant funds must submit to a COG documentation that demonstrates participation in a local community planning process or describes how the application addresses a criminal justice priority as identified in the plan.]

[(d) COGs will develop regional standards by which they will accept community plans.]

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 March 30, 2009.

TRD-200901227

Kevin Green

Assistant General Counsel

Office of the Governor

Earliest possible date of adoption: May 10, 2009

For further information, please call: (512) 463-1919

1 TAC §3.53, §3.55

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

The repeal of these rules is proposed under §772.006(a)(10), Texas Government Code, which authorizes CJD to adopt rules and procedures as necessary.

The repealed rules implement §772.006(a), Texas Government Code, which requires CJD to administer state and federal grant programs, and to assist the Governor in developing policies, programs, and proposed legislation for improving the coordination, administration, and effectiveness of the criminal justice system.

No other statutes, articles, or codes are affected by the repeal of these rules.

§3.53.Juvenile Justice and Youth Projects.

§3.55.Prohibitions.

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 March 30, 2009.

TRD-200901228

Kevin Green

Assistant General Counsel

Office of the Governor

Earliest possible date of adoption: May 10, 2009

For further information, please call: (512) 463-1919

1 TAC §3.71

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

The repeal of this rule is proposed under §772.006(a)(10), Texas Government Code, which authorizes CJD to adopt rules and procedures as necessary.

The repealed rule implements §772.006(a), Texas Government Code, which requires CJD to administer state and federal grant programs, and to assist the Governor in developing policies, programs, and proposed legislation for improving the coordination, administration, and effectiveness of the criminal justice system.

No other statutes, articles, or codes are affected by the repeal of this rule.

§3.71.Grant Budgets.

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 March 30, 2009.

TRD-200901229

Kevin Green

Assistant General Counsel

Office of the Governor

Earliest possible date of adoption: May 10, 2009

For further information, please call: (512) 463-1919

1 TAC §§3.73, 3.75, 3.77, 3.79, 3.81, 3.83, 3.87

The amendment of these rules is proposed under §772.006(a)(10), Texas Government Code, which authorizes CJD to adopt rules and procedures as necessary.

The amended rules implement §772.006(a), Texas Government Code, which requires CJD to administer state and federal grant programs, and to assist the Governor in developing policies, programs, and proposed legislation for improving the coordination, administration, and effectiveness of the criminal justice system.

No other statutes, articles, or codes are affected by the amendment of these rules.

§3.73.Matching Funds Policy.

If matching funds are required on a grant, an applicant must ensure that it possesses or can acquire the required matching funds. A contractor or participating entity may contribute toward the matching funds requirement, but the applicant bears the responsibility for satisfying the matching funds requirement.

[(a) An applicant must ensure that it possesses or can acquire the required matching funds to satisfy the matching funds requirement. An applicant's use of matching funds must comply with the same statutes, rules, regulations, and guidelines applicable to the use of the CJD-funded portion of a grant project.]

[(b) If matching funds are required on a grant, then the grantee must provide matching funds equal to or greater than the required minimum matching funds percentage of the total grant funds. Grantees will be held to and must report expenses for any matching funds included in the CJD-approved budget.]

[(c) A contractor or participating entity may contribute toward the matching funds requirement, but the applicant bears the ultimate responsibility for satisfying the matching funds requirement.]

[(d) Applicants may use funds received through program income to fulfill a matching funds requirement.]

[(e) Subject to CJD review and approval, on-call services may be used to meet match requirements. Grantees must justify a demonstrated need for on-call services and have an on-call policy that is approved by their governing board. The maximum value for time for a volunteer who is on-call shall not exceed 50% of the value of a volunteer's time while providing direct services. If the governing board has established a lower rate, then the lower rate must be used. The on-call policy must be submitted to CJD for approval.]

[(f) If an applicant applies for a grant under a funding source that allows in-kind contributions to satisfy part of the matching funds requirement, then the following rules apply:]

[(1) In-kind contributions may consist of volunteer time, professional services, travel expenses, building space, non-expendable equipment, materials, and supplies contributed during the grant period to the applicant by a third party.]

[(2) In-kind contributions may include depreciation and use fees for buildings or equipment acquired by the applicant before the start of the grant period and used in the grant project. However, the applicant may only count depreciation that will occur during the grant period as an in-kind contribution. Use fees qualify as an in-kind contribution only if supported by cost and depreciation records maintained by the applicant.]

[(3) Applicants must maintain records of all in-kind contributions that include at least the following:]

[(A) a full description of the item or service claimed;]

[(B) the area, expressed in square feet, of any donated building space;]

[(C) the name of the contributor;]

[(D) the date of the contribution;]

[(E) the fair market value of the contribution and how its value was determined; and]

[(F) in the case of a discount given, the contributor's signature on an affidavit of worth stating that the donor gave the discount because of the project's purpose.]

§3.75.Personnel.

(a) CJD shall [will] determine the reasonableness of requested salaries and reserves the right to limit the CJD-financed portion of any salary. [In determining reasonableness, the following rules apply:]

[(1) Salaries for grant-funded positions must comply with the grantee's or applicant's salary classification schedule for employees of the applicant agency. Salaries for persons assigned to the grant project from agencies other than the applicant must be reimbursed in accordance with the assigning agency's salary classification schedule.]

[(2) If the applicant or assigning agency does not have a classification schedule, then the proposed salary must be commensurate with that paid for similar work in other activities of the applicant or assigning agency. In cases where such work is not found within the applicant or assigning agency, CJD will consider reasonableness based on that paid for similar work in the labor market in which the applicant or assigning agency competes for the kind of employees involved.]

[(3) CJD will not pay any portion of the salary of, or any other compensation for, an elected or appointed government official. Grants that fund juvenile courts or drug courts, regardless of the funding source, are exempt from this subsection.]

(b) CJD shall not pay any portion of the salary of, or any other compensation for, an elected or appointed government official. [Personnel compensated with grant funds must maintain on file personnel activity reports that reflect a distribution of actual time worked and activity performed, that are prepared at least monthly, and that are signed by the employee and a supervisory official having first hand knowledge of the work performed by the employee. Law enforcement and prosecution grant personnel whose primary function is investigating or enforcing laws or prosecuting alleged offenders are required to include the project's case or cause number (or other indicators of assignment) in the personnel activity report.]

(c) Compensation for grant funded employees must be comparable to that of non grant funded employees performing similar work duties. [Upon receipt of approval from CJD, a grantee may use grant funds to provide overtime pay in accordance with the grantee's policy, unless such use is otherwise prohibited by law.]

(d) (No change.)

§3.77.Professional and Contractual Services.

Grantees must establish a contract administration system to consistently ensure that contract deliverables are being provided as specified in the contracts.

[(a) Any contract or agreement entered into by a grantee that obligates grant funds must be in writing and consistent with Texas contract law.]

[(b) Grantees must maintain adequate documentation supporting budget items for a contractor's time, services, and rates of compensation.]

[(c) Grantees must establish a contract administration system to regularly and consistently ensure that contract deliverables are being provided as specified in the contracts. Grantees must regularly and consistently document the results of their contract monitoring reviews and must maintain the files and results of all contract monitoring reviews in accordance with the record retention requirements described in §3.2505 of this chapter.]

[(d) A grantee's failure to monitor its contracts may result in disallowed costs and/or disallowed match.]

[(e) In accordance with §3.2013 of this chapter, grantees must submit to CJD a CJD-prescribed Procurement Questionnaire when a procurement is expected to exceed $100,000 or upon CJD request.]

§3.79.[Transportation,] Travel[,] and Training.

(a) Grant funds used for travel expenses must be limited to the grantee agency's established mileage, per diem, and lodging policies. [Federal regulations applicable to the relevant funding source may limit mileage reimbursement rates.] If a grantee does not have established mileage, per diem, and lodging policies, then the grantee must use state travel guidelines.

(b) Grantees must maintain records that properly document the completion of all grant-funded training courses. [ Grantees using grant funds to develop and conduct training may not use grant funds to pay for transportation, lodging, per diem, or any related costs for participants. Crime Stoppers training projects and S.T.O.P. Violence Against Women Act Fund projects are exempt from this subsection.]

[(c) A person attending training courses paid for with grant funds must complete the course. Grantees must maintain records that properly document the completion of all grant-funded training courses.]

§3.81.Equipment.

(a) Applicants must submit with their grant applications an itemized list of all proposed equipment purchases to CJD for approval. Grantees must request any additional equipment purchases through grant adjustments. [Grantees are not authorized to purchase any equipment until they have received approval to do so from CJD through an original grant award or a grant adjustment. Decisions regarding equipment purchases are made based on whether or not the grantee has demonstrated that the requested equipment is necessary, essential to the successful operation of the grant project, and reasonable in cost.]

(b) (No change.)

[(c) In accordance with §3.2013 of this chapter, grantees must submit to CJD a CJD-prescribed Procurement Questionnaire when a procurement is expected to exceed $100,000 or upon CJD request.]

§3.83.Supplies and Direct Operating Expenses.

Supplies and direct operating expenses are costs directly related to the grantee's day-to-day operation of the grant project that are not included in any of the grantee's other approved budget categories[ , as defined in §3.3(10) of this chapter, and that have an acquisition cost of less than $1,000 per unit. Grantees must allocate costs on a prorated basis for shared usage].

§3.87.Program Income.

Earned program income must be reported to CJD. Program income may only be used, with prior approval from CJD, for allowable project costs as reflected in an approved budget. Grantees may not carry forward program income from one grant year to the next. Grantees must refund to CJD any program income remaining at the end of the grant period.

[(a) Rules governing the use of program income are included in the provisions adopted by reference in §3.19 of this chapter.]

[(b) Program income may only be used for allowable project costs as reflected in an approved budget.]

[(c) Grantees may not carry forward program income from one grant year to the next. Grantees must refund to CJD any program income remaining at the end of the grant period.]

[(d) As provided in §3.3(12) of this chapter, all funds, accrued interest, and property awarded to a grantee under a forfeiture action represent program income.]

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 March 30, 2009.

TRD-200901230

Kevin Green

Assistant General Counsel

Office of the Governor

Earliest possible date of adoption: May 10, 2009

For further information, please call: (512) 463-1919

1 TAC §§3.2001, 3.2009, 3.2013, 3.2021, 3.2023, 3.2025

The amendment of these rules is proposed under §772.006(a)(10), Texas Government Code, which authorizes CJD to adopt rules and procedures as necessary.

The amended rules implement §772.006(a), Texas Government Code, which requires CJD to administer state and federal grant programs, and to assist the Governor in developing policies, programs, and proposed legislation for improving the coordination, administration, and effectiveness of the criminal justice system.

No other statutes, articles, or codes are affected by the amendment of these rules.

§3.2001.[Special] Conditions of Funding.

When CJD determines that a grantee has failed to submit the necessary information or has failed to comply with any applicable statute, rule, regulation, guideline, or requirement, CJD may place a [special] condition of funding on the grant which may invoke a hold on funds. [The special condition allows CJD to place a grantee's funds on hold until the grantee has satisfied the requirements of the special condition.]

§3.2009.Cooperative Working Agreement.

(a) - (b) (No change.)

[(c) Each grantee must submit to CJD a list of each participating organization that has entered into a cooperative working agreement with the grantee and a written description of the purpose of each cooperative working agreement.]

§3.2013.Pre-Approval Requirements for Procurement.

(a) A grantee must submit a CJD-prescribed Procurement Questionnaire when any [When a ] procurement is expected to exceed $100,000 or upon CJD request[, a grantee must submit to CJD a CJD-prescribed Procurement Questionnaire]. CJD may also request all related procurement documentation, such as requests for proposals, invitations for bids, or independent cost estimates.

(b) Grantees may not divide purchases or contracts to avoid the requirements of this section. For purposes of determining compliance, CJD will consider groups of contracts with a single vendor or groups of purchases for the same or similar items as a single procurement. [When a procurement is expected to exceed $100,000 or upon CJD request, and one of the following conditions exist, a grantee must submit to CJD all related procurement documentation, such as requests for proposals, invitations for bids, or independent cost estimates, along with a CJD-prescribed Procurement Questionnaire:]

[(1) the procurement is to be awarded without competition or only one bid or offer is received in response to a solicitation;]

[(2) the procurement specifies a "brand name" product; or]

[(3) the proposed contract is to be awarded to an entity other than the apparent low bidder under a sealed bid procurement.]

[(c) The information required in subsections (a) and (b) of this section must be submitted to CJD before grant funds are obligated or expended.]

[(d) Grantees may not divide purchases or contracts for the purposes of avoiding the requirements of this section. For purposes of determining compliance, CJD will consider groups of contracts with a single vendor or groups of purchases for the same or similar items as a single procurement.]

§3.2021.Resolutions.

Applications from local units of governments and other political subdivisions [Except for applications from state agencies, each application] must include a resolution [from the applicable governing body (such as the city council, county commissioners' court, school board, or board of directors)] that contains the following:

(1) - (2) (No change.)

(3) a designation of the name or title of an authorized official who is given the power to apply for, accept, reject, alter, or terminate a grant (if this designation changes during the grant period, a new resolution must be submitted to CJD [by the governing body]); and

(4) (No change.)

§3.2023.Tax-Exempt and Nonprofit Information.

All nonprofit corporations [applying for grant funds] must submit with their application, information about the agency's fiscal capability, including information from the Internal Revenue Service granting the corporation tax-exempt status.

§3.2025.Civil Rights Liaison.

All applicants must certify that they have a designated civil rights liaison during the application process. The civil rights liaison will serve as the grantee's civil rights contact point and has [ will bear] the responsibility for ensuring that the grantee meets all applicable civil rights requirements. The designee will act as the grantee's liaison in civil rights matters with CJD and with the federal Office of Justice Programs.

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 March 30, 2009.

TRD-200901231

Kevin Green

Assistant General Counsel

Office of the Governor

Earliest possible date of adoption: May 10, 2009

For further information, please call: (512) 463-1919

1 TAC §§3.2501, 3.2505, 3.2507, 3.2509, 3.2513, 3.2517, 3.2519, 3.2521, 3.2523, 3.2525, 3.2527, 3.2529

The amendment of these rules is proposed under §772.006(a)(10), Texas Government Code, which authorizes CJD to adopt rules and procedures as necessary.

The amended rules implement §772.006(a), Texas Government Code, which requires CJD to administer state and federal grant programs, and to assist the Governor in developing policies, programs, and proposed legislation for improving the coordination, administration, and effectiveness of the criminal justice system.

No other statutes, articles, or codes are affected by the amendment of these rules.

§3.2501.Grant Officials.

(a) Each grant must have a Project Director, Financial Officer, and Authorized Official. No person shall serve in more than one capacity. [three different grant officials:]

[(1) Project Director. The project director must be an employee of the applicant agency or be from the contractor organization that will be responsible for project operation or monitoring and who will serve as the point-of-contact regarding the project's day-to-day operations. For Crime Stoppers Programs, the project director can be an employee of a law enforcement agency who will act as the coordinator. For Byrne Formula Grant Program projects, the project director shall not be the task force commander;]

[(2) Financial Officer. The financial officer must be the chief financial officer of the applicant agency. A county auditor, city treasurer, comptroller, or the treasurer of a nonprofit corporation's board may serve as the project's financial officer. The financial officer is responsible for establishing and maintaining financial records to accurately account for funds awarded to the grantee. These records shall include both federal funds and all matching funds of state, local, and private organizations, when applicable. The financial officer is also responsible for requesting funds and reporting grant activity to CJD on expenditure report forms provided to the financial officer; and]

[(3) Authorized Official. The authorized official must be authorized to apply for, accept, reject, alter, or terminate the grant for the applicant agency. The executive director of a state agency, county judge, mayor, city manager, chairman of a nonprofit board, director of a community supervision and corrections department, or other individual authorized by the governing body may serve as the authorized official. The authorized official must be designated by the governing body in its resolution pursuant to §3.2021 of this chapter.]

(b) Each grant official must have an e-mail address and access to the Internet. [No person shall serve in more than one capacity as a grant official.]

(c) The grantee shall notify CJD within 20 calendar days of any change in the designated project director, financial officer, or authorized official; any change in the mailing address, e-mail address, fax number, or telephone number of each grant official and any change in the grantee's physical address. [The grantee shall make every effort to ensure that each grant official has an e-mail address and access to the Internet.]

[(d) The grantee shall notify CJD within 20 calendar days of:]

[(1) any change in the designated project director, financial officer, or authorized official and shall include a sample signature of the new project director, financial officer, or authorized official;]

[(2) any change in the mailing address, e-mail address, fax number, or telephone number of each grant official; and]

[(3) any change in the grantee's physical address.]

§3.2505.Retention of Records.

(a) Grantees must maintain all financial records, supporting documents, statistical records, and all other records pertinent to the award for at least three years following the closure of the most recent audit report or submission of the final financial status report [expenditure] if the audit report requirement has been waived. [Records retention is required for the purposes of federal or state examination and audit.] Grantees may retain records in an electronic format. All records are subject to audit or monitoring during the entire retention period.

(b) - (c) (No change.)

§3.2507.Financial Status [Expenditure] Reports [and Reimbursement].

(a) Each grantee must submit financial status [ expenditure] reports to CJD. CJD will provide the appropriate forms and instructions for the reports along with deadlines for their submission. [Submission of an expenditure report may generate grant payment upon CJD approval. If the grantee fails to submit timely expenditure reports, grantees will not receive grant payments. The grantee must report program income in the expenditure report including program income earned by the grantee, a vendor or contractor.]

(b) A [After a grant has been accepted and if there are no outstanding special conditions or other deficiencies, a] grantee may submit financial status [ expenditure] reports to generate reimbursement no more than once a month. [A grantee may submit an expenditure report to generate payment on a cost reimbursement basis.] Grantees may only request an advance payment during the first month of the grant period to cover the first month's expenses. [All expenditure reports must be submitted to CJD in accordance with the instructions provided.]

(c) Grantees must ensure that CJD receives their final financial status [expenditure] report no later than the liquidation date [90th calendar day after the end of the grant period] or funds will lapse and revert to the grantor agency. [If this date falls on a weekend or a state or federal holiday, then CJD will honor receipt on the next business day. ] If grant funds are on hold for any reason, these funds will lapse on the liquidation date [at the end of the above-referenced period] and the grantee cannot recover them. CJD will not make payments to grantees that submit their final financial status [expenditure] report after the liquidation date [ above-referenced deadline described by this subsection].

[(d) Crime Stoppers Assistance Fund projects are exempt from subsection (a) of this section and instead may request funds through submission of an expenditure report once each quarter on a cost-reimbursement basis only.]

§3.2509.Equipment Inventory Reports.

[(a)] CJD requires each grantee to maintain on file a current [an] inventory report of all equipment purchased with grant funds during the grant period. This report must reconcile [agree] with the approved grant budget and the final financial status [expenditure ] report.

[(b) At least every two years, grantees must complete a physical inventory of all grantee property and the grantee must reconcile the results with the existing property records.]

§3.2513.Grant Adjustments.

(a) The project director, financial officer, or authorized official may submit requests for grant adjustments. [The authorized official must certify all grant adjustment requests.]

(b) [Budget Adjustments.] Adjustments consisting of increases or decreases in the amount of a grant or the reallocation of grant funds among or within approved budget categories[, as defined in §3.3(10) of this chapter, are considered budget adjustments, and] are allowable only with prior CJD approval. [ The following rules apply to budget adjustments:]

[(1) Changes in the indirect costs category require prior CJD approval through a grant adjustment notice.]

[(2) CJD will not approve budget adjustment requests submitted after the end of the grant period.]

[(3) All budget adjustments must comply with all relevant rules in this chapter. The grantee must maintain accurate records that show all budget adjustments.]

(c) Programmatic changes, such as requests to revise the scope, target, or focus of the project, or alter project activities require prior approval from CJD. Requests to extend the grant period must be submitted to and received by CJD, no later than the last day of the grant period. [For supplemental grant awards, the authorized official must accept or reject any additional award within 45 calendar days of the date of the award and follow all rules in accordance with §3.11 of this chapter.]

[(d) Programmatic Changes. The following rules apply to programmatic changes:]

[(1) Requests to revise the scope, target, or focus of the project, or alter project activities require prior approval from CJD.]

[(2) A grantee may submit a request to extend the grant period. The request must be submitted to CJD and received no later than the last day of the grant period.]

§3.2517.Remedies for Noncompliance.

If a grantee fails to comply with any term or condition of a grant or any applicable statutes, rules, regulations, or guidelines, CJD may [take one or more of the following actions]:

(1) [temporarily] withhold all grant payments to a specific project or withhold all grant payments to all grant projects awarded to the grantee [the grant project] pending correction of the deficiency [by the grantee];

(2) disallow all or part of the cost of the activity or action that is not in compliance [temporarily withhold all grant payments to all grant projects awarded to the grantee pending correction of the deficiency by the grantee];

(3) withhold further grants from the program or grantee [disallow all or part of the cost of the activity or action that is not in compliance];

(4) terminate the grant in whole or in part; or [ impose administrative sanctions, other than fines, on the grantee;]

(5) exercise other legal remedies. [withhold further grants from the program or grantee;]

[(6) terminate the grant in whole or in part; or]

[(7) exercise other remedies that may be legally available.]

§3.2519.Grant Reduction or Termination.

(a) (No change.)

(b) CJD may reduce or terminate any grant when:

(1) - (2) (No change.)

(3) state or federal funds are no longer available to CJD [or are insufficient to fund a grant as grant awards are subject to the availability of state or federal funds];

(4) conditions exist that make it unlikely that grant [or project ] objectives will be accomplished; or

(5) the grantee has acted in bad faith.

(c) In the event that a grant is reduced or terminated by CJD, CJD will notify the grantee in writing [of its decision ].

§3.2521.Payment of Outstanding Liabilities.

Grantees must expend all outstanding liabilities no later than the liquidation date [90 calendar days after the end] of the grant period[, unless otherwise] specified in an original grant award or a subsequent grant adjustment. All payments made after the completion of the grant period must relate to obligations incurred during the grant period.

§3.2523.Violations of Laws.

(a) A grantee must immediately notify CJD in writing of any legal violations[, including the misappropriation of funds, fraud, theft, embezzlement, forgery, or any other serious irregularities indicating noncompliance with grant requirements. The grantee shall also notify the local prosecutor's office of any possible criminal violations].

(b) A grantee must immediately notify CJD in writing if a project or project personnel become involved in any civil or criminal litigation[, whether civil or criminal,] and the grantee must immediately forward a copy of any demand notices, subpoenas, lawsuits, or indictments to CJD.

(c) - (d) (No change.)

§3.2525.Evaluating Project Effectiveness.

(a) Grantees [CJD grantees] must regularly evaluate [the effectiveness of] their projects. [This includes a reassessment of project activities and services to determine whether they continue to be effective. Grantees must show that their activities and services effectively address and achieve the project's stated purpose.] CJD will monitor the grantee [success] through [required] progress reports, on-site visits, and desk reviews. Grantees must maintain information related to project evaluations in the project's files, and that information must be available for review [by CJD].

(b) Grantees are responsible for managing the day-to-day operations of grant and sub-grant [subgrant] supported activities, including those of their contractors and subcontractors. [Grantee monitoring must cover each program, function and activity. ] Grantees must develop[, implement, ] and maintain a standardized monitoring program incorporating best practices [to continuously assure grant and subgrant supported activities are monitored. The monitoring program will include, at a minimum, mechanisms by which grantees will ensure they are achieving performance goals and receiving contracted deliverables as specified in agreements and contracts].

§3.2527.Grantee Reports.

(a) Each grantee must submit reports regarding grant information, performance, and progress [towards goals and objectives in accordance with the instructions provided by CJD and as outlined for each specific project area]. To remain eligible for funding, the grantee must be able to show the scope of services provided and the impact and quality of those services.

(b) CJD may place projects on financial hold for failure to submit complete and accurate progress reports. A grantee's history of delinquent or inaccurate reports may affect future funding decisions. [The grantee must submit progress reports for those activities supported by grant funds.]

[(c) The grantee must use CJD-prescribed forms for progress reports. These forms will include instructions regarding the required frequency of reporting.]

[(d) The project director must submit all progress reports.]

[(e) CJD may place projects on financial hold for failure to submit complete and accurate progress reports by the specified deadline. CJD is under no obligation to send reminder notices or make reminder telephone calls prior to placing funds on hold. A grantee's history of delinquent or inaccurate reports may affect future funding decisions.]

§3.2529.Grant Management.

(a) CJD has oversight responsibility for the grants it awards. CJD may review the grantee's management and administration of grant funds and records at any time [and may also request records in accordance with the record retention requirements described in §3.2505 of this chapter]. Grantees must respond to all CJD inquiries or requests and must make all requested records available to CJD.

(b) The grantee is the entity legally and financially responsible for the grant. A grantee may not delegate its legal or financial responsibility[, and must ensure that the project operates efficiently, effectively and in accordance with all applicable statutes, rules, regulations, and guidelines that govern CJD grants].

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 March 30, 2009.

TRD-200901232

Kevin Green

Assistant General Counsel

Office of the Governor

Earliest possible date of adoption: May 10, 2009

For further information, please call: (512) 463-1919

1 TAC §3.2601, §3.2603

The amendment of these rules is proposed under §772.006(a)(10), Texas Government Code, which authorizes CJD to adopt rules and procedures as necessary.

The amended rules implement §772.006(a), Texas Government Code, which requires CJD to administer state and federal grant programs, and to assist the Governor in developing policies, programs, and proposed legislation for improving the coordination, administration, and effectiveness of the criminal justice system.

No other statutes, articles, or codes are affected by the amendment of these rules.

§3.2601.Monitoring.

(a) CJD will monitor the activities of grantees as necessary to ensure that grant funds are used for authorized purposes [in compliance with all applicable statutes, rules, regulations, guidelines, and the provisions of grant agreements,] and that grantees achieve grant purposes.

(b) The monitoring program may consist of formal audits, monitoring reviews, and technical assistance. CJD may implement monitoring through on-site review at the grantee or sub-grantee [ and/or subgrantee] location or through a desk review. [ In addition,] CJD may request grantees to submit [ relevant] information to CJD[, pursuant to §3.2529 of this chapter,] to support any monitoring review.

(c) Grantees must make available to CJD [or its agents ] all [requested] records relevant to a monitoring review. [CJD may make unannounced monitoring visits at any time. ] Failure to provide adequate documentation [ upon request] may result in disallowed costs or other remedies for noncompliance [as detailed under §3.2517 of this chapter].

(d) (No change.)

(e) The grantee shall respond to the preliminary report and the deficiencies or recommendations, and submit a corrective action plan to CJD within a time [time frame] specified by CJD.

(f) (No change.)

(g) If the grantee believes corrective action is not required for a [noted] deficiency or recommendation, the response shall include an explanation and specific reasons. CJD will determine whether the response is adequate to resolve the deficiency or recommendation.

(h) [CJD's approval of the corrective action plan is required before the grantee implements the corrective action plan.] The grantee's response and the approved corrective action plan shall become part of the final report.

(i) The grantee shall resolve all identified [ issues,] findings[, or actions identified by CJD] within the time [time frame] specified by CJD.

§3.2603.Audits Not Performed by CJD.

(a) - (b) (No change.)

(c) All other audits performed by auditors independent of CJD must be maintained at the grantee's administrative offices [pursuant to §3.2505 of this chapter] and be made available upon request by CJD. Grantees must notify CJD of any audit results that may adversely impact grant funds.

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 March 30, 2009.

TRD-200901234

Kevin Green

Assistant General Counsel

Office of the Governor

Earliest possible date of adoption: May 10, 2009

For further information, please call: (512) 463-1919

DIVISION 1. CRIME STOPPERS ADVISORY COUNCIL

1 TAC §3.8110

The amendment of this rule is proposed under §772.006(a)(10), Texas Government Code, which authorizes CJD to adopt rules and procedures as necessary.

The amended rule implements §772.006(a), Texas Government Code, which requires CJD to administer state and federal grant programs, and to assist the Governor in developing policies, programs, and proposed legislation for improving the coordination, administration, and effectiveness of the criminal justice system.

No other statutes, articles, or codes are affected by the amendment of this rule.

§3.8110.Composition.

The council must be composed of five members appointed by the governor with the advice and consent of the Texas Senate. At least three members must be persons who have participated in a local Crime Stoppers program. The term of office of each member is four [two ] years. At its first meeting after the beginning of each fiscal year the council shall elect from among its members a chairman and other officers that the council considers necessary.

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 March 30, 2009.

TRD-200901235

Kevin Green

Assistant General Counsel

Office of the Governor

Earliest possible date of adoption: May 10, 2009

For further information, please call: (512) 463-1919

1 TAC §§3.8300, 3.8305, 3.8310, 3.8315, 3.8320

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

The repeal of these rules is proposed under §772.006(a)(10), Texas Government Code, which authorizes CJD to adopt rules and procedures as necessary.

The repealed rules implement §772.006(a), Texas Government Code, which requires CJD to administer state and federal grant programs, and to assist the Governor in developing policies, programs, and proposed legislation for improving the coordination, administration, and effectiveness of the criminal justice system.

No other statutes, articles, or codes are affected by the repeal of these rules.

§3.8300.Establishment.

§3.8305.General Powers.

§3.8310.Composition.

§3.8315.Meetings.

§3.8320.Compensation.

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 March 30, 2009.

TRD-200901238

Kevin Green

Assistant General Counsel

Office of the Governor

Earliest possible date of adoption: May 10, 2009

For further information, please call: (512) 463-1919

1 TAC §3.9400, §3.9405

The amendment of these rules is proposed under §772.006(a)(10), Texas Government Code, which authorizes CJD to adopt rules and procedures as necessary.

The amended rules implement §772.006(a), Texas Government Code, which requires CJD to administer state and federal grant programs, and to assist the Governor in developing policies, programs, and proposed legislation for improving the coordination, administration, and effectiveness of the criminal justice system.

No other statutes, articles, or codes are affected by the amendment of these rules.

§3.9400.Definitions.

[In addition to the definitions listed in §3.3 of this chapter, the following words and terms shall have the following meanings, unless the context clearly indicates otherwise, when used in this subchapter.]

(a) [(1)] Automobile allowance: a monthly or other periodic stipend to defray the costs of operating a motor vehicle, which does not require mileage or other documentation.

(b) [(2)] Indirect costs: costs that are incurred for a common or joint purpose benefiting more than one cost objective, that are not readily assignable to the cost objectives specifically benefited without effort disproportionate to the results. CJD shall use the federal Office of Management and Budget Circulars A-87 and A-122, UGMS, and any rules relating to the determination of indirect costs adopted under Chapter 783, Government Code, in administering indirect cost recovery provisions of these rules.

(c) [(3)] Officially sanctioned conference or meeting: a conference or meeting conducted or attended as a part of a COG's official business.

§3.9405.General Regulations.

(a) The Office of the Governor will recognize one COG organized under Chapter 391, Local Government Code, in each state planning region or sub-region [subregion]. Only the COG recognized by the Office of the Governor will be eligible for a state planning assistance grant.

(b) - (i) (No change.)

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 March 30, 2009.

TRD-200901239

Kevin Green

Assistant General Counsel

Office of the Governor

Earliest possible date of adoption: May 10, 2009

For further information, please call: (512) 463-1919

DIVISION 1. CRIME STOPPERS PROGRAM CERTIFICATION

1 TAC §§3.9017, 3.9019, 3.9021

The Office of the Governor, Criminal Justice Division (CJD), proposes the addition of Title 1, Part 1, Chapter 3, Subchapter H, Division 1, §§3.9017, 3.9019, and 3.9021. Pursuant to Chapter 414, Texas Government Code, the proposed rules were approved by the Governor's Crime Stoppers Advisory Council (Council) on February 19, 2009.

The proposed amendment to Subchapter H, Division 1, allows the Council to establish procedures for certified local Crime Stoppers programs to follow when a certified program wishes to merge with another certified program or a Crime Stoppers program that is not certified but is a 501(c)(3) corporation, and when a certified program wishes to add a geographical jurisdiction that does not currently have a local Crime Stoppers program.

The proposed addition will enable the Council to more effectively oversee multi-county programs which receive court funds under the provisions of Articles 42.12, 37.073 and 42.152, Code of Criminal Procedure. The Council needs to assure that certified programs have followed all established procedures of the U.S. Internal Revenue Service and the Texas Secretary of State regarding non-profit 501(c)(3) corporations, that the programs are manageable, and that the programs are following the Standard Operating Procedures established by the Council for certified local programs. The amendment provides that any certified local Crime Stoppers program seeking to add counties or cities to its area of operation reapply for certification with the Council since the expanded program would no longer be the same program that the Council originally certified.

Christopher Burnett, Executive Director of the Governor's Criminal Justice Division (CJD), has determined that for the first five-year period the rules are in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the sections.

Mr. Burnett has also determined that for the first five-year period the rules are in effect the public benefit anticipated as a result of enforcing the sections will be more efficient processes and procedures and the current rules will be more easily understood. There will be no anticipated economic cost to persons or small businesses for complying with the proposed rules.

Comments on the proposed rules may be submitted to Heather Morgan, Office of the Governor, Criminal Justice Division, P.O. Box 12428, Austin, Texas 78711, (512) 475-2594, hmorgan@governor.state.tx.us. Comments must be received no later than 30 days from the date of publication of the proposal in the Texas Register.

The addition of these rules is proposed under §772.006(a)(10), Texas Government Code, which authorizes CJD to adopt rules and procedures as necessary.

The added rules implement §772.006(a), Texas Government Code, which requires CJD to administer state and federal grant programs, and to assist the Governor in developing policies, programs, and proposed legislation for improving the coordination, administration, and effectiveness of the criminal justice system.

No other statutes, articles, or codes are affected by the addition of these rules.

§3.9017.Mergers of Certified Programs.

If a certified Crime Stoppers program agrees with another certified Crime Stoppers program to merge and form a multi-county or multi-jurisdictional (i.e., county and city) program, the new program must apply for Continuing Certification since it is no longer the program that was originally certified by the Council, and the following procedures must be followed:

(1) The certified Crime Stoppers programs that want to merge must have contiguous borders.

(2) The participating programs must develop a cooperative agreement or memorandum of understanding (MOU) regarding the merger; each program's Board of Directors must vote to approve the cooperative agreement or MOU.

(3) The merging programs must choose a name for the new program unless both programs agree to operate under the name of one of the existing programs.

(4) The newly established program must file the following documents with the Director of the Texas Crime Stoppers Advisory Council requesting certification under a new name and with an expanded geographical territory:

(A) United States Internal Revenue Service (IRS) compliance documents for dissolution of a 501(c)(3) non-profit corporation and a 501(c)(3) letter authorizing the program to operate under the new name;

(B) Texas Secretary of State compliance documents for 501(c)(3) non-profit corporations;

(C) Application for Continuing Certification under the new name and with an expanded geographical territory;

(D) Copies of financial reviews of the restricted court fees accounts for all merging programs as required in §414.010(b), Texas Government Code; these financial reviews must be conducted by a Certified Public Accountant;

(E) Copy of Board of Directors membership list of the new program, to include contact information for Board members and the law enforcement coordinator;

(F) Copies of letters from Community Supervision and Corrections Departments (CSCD) detailing the amount of court fees paid to the merging programs during the previous two years, up to and including the date of the proposed merger, under the provisions of Articles 42.12, 37.073 and 42.152, Code of Criminal Procedure;

(G) Training certificates showing that at least one Board member, the law enforcement coordinator, and an executive director (if applicable) received training as authorized by the Crime Stoppers Advisory Council within the 12-month period preceding the merger;

(H) Copies of Probation Fee and Repayment Reports for the merging programs for the previous two calendar years as specified by §414.010(a), Texas Government Code;

(I) Copies of the Minutes of the Boards of Directors meetings of both certified Crime Stoppers programs in which the Boards voted to merge their programs; and

(J) A letter addressed to the Advisory Council stating that the new program will follow all rules applicable to the operations of Multi-County Programs as stated in the Standard Operating Procedures Manual of the Texas Crime Stoppers Advisory Council.

(5) If the Director of the Advisory Council determines that the new program meets all requirements paragraphs (1) - (4) of this section, the program will be presented to the Council for certification at the Council's next regularly scheduled meeting.

(6) Once the Advisory Council grants certification, the new program can merge the restricted bank accounts of both programs, as well as all other accounts held by the entities. The new program will also be eligible to apply to the relevant CSCDs to receive court fees under the provisions of Articles 42.12, 37.073, and 42.152, Code of Criminal Procedure.

(7) The new program is not eligible to establish an "Excess Funds Account" under the provisions of §414.010(d), Texas Government Code, until three years from the certification date.

(8) The certification is valid for a period of two years.

(9) All certified programs, regardless of the date on which any existing mergers occurred, must comply with these rules upon recertification.

§3.9019.Mergers of Non-certified Programs to Certified Programs.

(a) The certified Crime Stoppers program that wants to merge with a non-certified 501(c)(3) Crime Stoppers program must have contiguous borders.

(b) The participating programs must develop a cooperative agreement or memorandum of understanding (MOU) regarding the merger; each program's Board of Directors must vote to approve the cooperative agreement or MOU.

(c) The merging programs must choose a name for the new program unless both programs agree to operate under the name of one of the existing programs.

(d) The newly established program must file the following documents with the Director of the Texas Crime Stoppers Advisory Council requesting Certification under a new name and with an expanded geographical territory:

(1) United States Internal Revenue Service (IRS) compliance documents for dissolution of a 501(c)(3) non-profit corporation and a 501(c)(3) letter authorizing the program to operate under the new name;

(2) Texas Secretary of State compliance documents for 501(c)(3) non-profit corporations;

(3) Application for Continuing Certification under the new name and with an expanded geographical territory;

(4) Copies of financial reviews of the restricted court fees accounts for the certified Crime Stoppers program as required in §414.010(b), Texas Government Code; these financial reviews must be conducted by a Certified Public Accountant;

(5) Copies of financial reviews of all bank accounts held by the non-certified 501(c)(3) Crime Stoppers program; these financial reviews must be conducted by a Certified Public Accountant;

(6) If the financial review establishes that at any time the non-certified 501(c)(3) Crime Stoppers program was certified by the Crime Stoppers Advisory Council and received court fees under Articles 42.12, 37.073 and 42.152, Code of Criminal Procedure, and failed to return all court fees to the Office of the Comptroller, State of Texas, within 60 days following the loss of certification, as required by §414.010(c), Texas Government Code, a copy of the check for the outstanding court fees, made payable to the Office of the Comptroller, must be submitted with the application for certification;

(7) Copy of Board of Directors membership list of the new program, to include contact information for Board members and the law enforcement coordinator;

(8) Copies of letters from the Community Supervision and Corrections Departments (CSCD) detailing the amount of court fees paid to the certified Crime Stoppers program during the previous two years, up to and including the date of the proposed merger, under the provisions of Articles 42.12, 37.073 and 42.152, Code of Criminal Procedure;

(9) Training certificates showing that at least one Board member, the law enforcement coordinator, and an executive director (if applicable) received training as authorized by the Crime Stoppers Advisory Council within the 12-month period preceding the merger;

(10) Copies of Probation Fee and Repayment Reports for the certified Crime Stoppers program for the previous two calendar years as specified by §414.010(a), Texas Government Code;

(11) Copies of the Minutes of the Boards of Directors meetings of the certified Crime Stoppers program and the non-certified 501(c)(3) Crime Stoppers program in which the Boards voted to merge their programs; and

(12) A letter addressed to the Advisory Council stating that the new program will follow all rules applicable to the operations of Multi-County Programs as stated in the Standard Operating Procedures Manual of the Texas Crime Stoppers Advisory Council.

(e) If the Director of the Advisory Council determines that the new program meets all requirements in subsections (a) - (d) of this section, the program will be presented to the Council for certification at the Council's next regularly scheduled meeting.

(f) Once the Advisory Council grants certification, the new program can merge the bank accounts of both programs. The new program also will be eligible to apply to the relevant CSCDs to receive court fees under the provisions of Articles 42.12, 37.073, and 42.152, Code of Criminal Procedure.

(g) The new program is not eligible to establish an "Excess Funds Account" under the provisions of §414.010(d), Texas Government Code, until three years from the certification date.

(h) The certification is valid for a period of two years.

(i) All certified programs, regardless of the date on which any existing mergers occurred, must comply with these rules upon recertification.

§3.9021.Addition of Geographical Jurisdictions to Certified Programs.

If a county or city that is not presently served by a certified Crime Stoppers program wants to join an existing certified Crime Stoppers program, the following procedures must be followed:

(1) The county or city must share contiguous borders with the certified Crime Stoppers program;

(2) A citizens' delegation from the county or city must meet with the Board of Directors of the certified Crime Stoppers program to develop an operational agreement or Memorandum of Understanding (MOU); the Board of Directors of the certified program must vote to accept the geographical entity making the request;

(3) The certified Crime Stoppers program and the geographical entity that is requesting to join the Crime Stoppers program must choose a new name for the program unless both parties agree to operate under the name of the existing program;

(4) The certified Crime Stoppers program must file the following documents with the Director of the Texas Crime Stoppers Advisory Council requesting certification under a new name (if applicable) and with an expanded geographical territory:

(A) United States Internal Revenue Service (IRS) letter for a 501(c)(3) corporation authorizing the program to operate under a new name, if applicable;

(B) Texas Secretary of State letter for a 501(c)(3) corporation authorizing the program to operate under a new name, if applicable;

(C) Application for Continuing Certification under the new name (if applicable) and with an expanded geographical territory;

(D) Copies of a financial review of all bank accounts for the certified Crime Stoppers program as required in §3.9000(d)(6)(A) of this chapter;

(E) Copy of Board of Directors membership list for the program, to include contact information for Board members and the law enforcement coordinator;

(F) Copies of letters from the Community Supervision and Corrections Departments (CSCD) detailing the amount of court fees paid to the certified program during the previous two years, under the provisions of Articles 42.12, 37.073 and 42.152, Code of Criminal Procedure;

(G) Training certificates showing that at least one Board member, the law enforcement coordinator, and an executive director (if applicable) received training as authorized by the Crime Stoppers Advisory Council within the 12-month period preceding the new application for Continuing Certification;

(H) Copies of Probation Fee and Repayment Reports for the certified Crime Stoppers program for the previous two calendar years as specified by §414.010(a), Texas Government Code;

(I) Copy of the Minutes of the Board of Directors of the certified Crime Stoppers program in which the Board voted to add the new geographical entity to the territory served by the Crime Stoppers program; and

(J) A letter addressed to the Council stating that the program will follow all rules applicable to the operations of Multi-County Programs as stated in the Standard Operating Procedures Manual of the Texas Crime Stoppers Advisory Council.

(5) If the Director of the Council determines that the newly expanded program meets all requirements listed in paragraphs (1) - (4) of this section, the program will be presented to the Council for certification at the Council's next regularly scheduled meeting.

(6) Once the Council grants certification, the program will be eligible to apply to the CSCDs in the newly acquired geographical territory to receive court fees under the provisions of Articles 42.12, 37.073 and 42.152, Code of Criminal Procedure.

(7) The certification is valid for a period of two years.

(8) All certified programs, regardless of the date on which any existing mergers occurred, must comply with these rules upon recertification.

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 March 30, 2009.

TRD-200901246

Kevin Green

Assistant General Counsel

Office of the Governor

Earliest possible date of adoption: May 10, 2009

For further information, please call: (512) 463-1919